Public Act 0646 103RD GENERAL ASSEMBLY |
Public Act 103-0646 |
SB3679 Enrolled | LRB103 39381 AWJ 69554 b |
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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 |
Business Improvement District Law. |
Section 5. Purpose. The General Assembly finds that it is |
in the interest of the State of Illinois to promote the |
economic revitalization and physical maintenance of business |
districts in order to create jobs, attract new businesses, |
retain existing businesses, increase public safety, and spur |
new investments. The General Assembly finds that this purpose |
may best be accomplished by allowing business improvement |
districts to fund business-related activities and improvements |
through the levy of district charges upon the owners of real |
property that receive benefits from those activities and |
improvements. |
Section 7. Applicability. This Act applies only to |
municipalities having a population exceeding 500,000. |
Section 10. Definitions. As used in this Act: |
"Activities" means services provided for the purpose of |
conferring benefit upon assessed owners of property located |
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within a business improvement district, including, but not |
limited to: |
(1) promotion of events taking place within the |
business improvement district; |
(2) furnishing of music; |
(3) marketing and economic development, including |
retail retention and recruitment; |
(4) providing security, sanitation, graffiti removal, |
street and sidewalk cleaning, and other services |
supplemental to base services; and |
(5) other services provided for the purpose of |
conferring benefit upon assessed owners of property |
located within the business improvement district. |
"Activities" does not include lobbying, as that term is |
defined in Section 2 of the Lobbyist Registration Act and |
Chapter 2-156 of the Municipal Code of Chicago. |
"Base services" means services provided by any public |
entity, or paid for wholly or in part out of public funds, |
generally throughout a municipality to real property within |
the municipality. |
"Business improvement district" means a contiguous area |
within a municipality in which activities, improvements, or |
activities and improvements are provided in addition to base |
services. Territory shall be considered contiguous for |
purposes of this Act even though certain completely surrounded |
portions of the territory are excluded from the business |
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improvement district. For purposes of this Act, parcels are |
within the same contiguous area if they touch or join one |
another in a reasonably substantial physical sense or if they |
meet the criteria for annexation to a municipality under |
Section 7-1-1 of the Illinois Municipal Code. |
"Clerk" means the municipal clerk. |
"District charge" means a charge levied on behalf of a |
business improvement district for the purpose of acquiring, |
constructing, installing, or maintaining improvements or |
providing activities that will confer special benefits upon |
assessed property owners within the business improvement |
district. District charges levied for the purpose of |
conferring special benefits upon assessed property owners |
within a business improvement district are not taxes for the |
general benefit of a municipality, even if real property or |
persons not charged receive incidental or collateral |
beneficial effects. |
"District management association" means a private or |
not-for-profit entity that enters into a contract with a board |
of directors of a business improvement district to administer |
or implement activities and improvements specified in the |
district plan for a business improvement district. A district |
management association shall not be considered a public entity |
for any purpose. |
"District plan" means a proposal for a business |
improvement district that contains the information described |
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in Section 15. |
"Governing body" means the corporate authorities of a |
municipality. |
"Improvements" means the acquisition, construction, |
installation, or maintenance of any tangible property provided |
for the purpose of conferring benefit upon assessed property |
owners located within a business improvement district. |
"Property owner" or "owner" means the record owner of fee |
simple interest in a real property subject to assessment, |
which will be deemed to be the person or entity that pays |
property taxes on the real property according to county |
records, unless another person or entity establishes to the |
municipality by clear and convincing evidence that they are |
the record owner of the fee simple interest. |
"Public entity" means (i) the State or any agency, board, |
or commission of the State, (ii) any school district, or (iii) |
any unit of local government. |
Section 15. District plan. |
(a) A business improvement district established under this |
Act is subject to and governed by a district plan, as may be |
amended as set forth in Section 60, and filed with the clerk. A |
district plan shall be prepared by the property owner or |
owners who submit the written petition to the clerk under |
Section 30. |
(b) The district plan shall include, but need not be |
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limited to, the following: |
(1) The name of the business improvement district. |
(2) A map of the business improvement district in |
sufficient detail to allow a property owner to reasonably |
determine whether a parcel of real property is located |
within the boundaries of the business improvement |
district. |
(3) A description of the boundaries of the business |
improvement district in a manner sufficient to identify |
the real property included in the business improvement |
district. |
(4) The initial term of the business improvement |
district. |
(5) A statement identifying the activities and |
improvements within the business improvement district that |
may be provided from time to time for which property |
owners will be charged and that the activities and |
improvements that are provided may vary from year to year |
and may differ by class. |
(6) A statement identifying the maximum amount of the |
annual district charge to be levied and that the maximum |
amount of the annual district charge levied may vary from |
year to year. |
(7) A statement identifying the maximum amount of |
total district charges to be levied for the term of the |
business improvement district. |
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(8) A statement identifying the proposed source or |
sources of financing, including the proposed method and |
basis of levying an assessment, in sufficient detail to |
allow each property owner to calculate (i) the estimated |
amount of the district charge to be levied upon the |
property owner annually, (ii) the maximum amount of the |
district charge that could be levied upon the property |
owner annually, and (iii) the total amount of the district |
charges that could be levied upon the property owner for |
the term of the business improvement district. |
(9) Any interest or penalties that may be imposed for |
delinquent payment of a district charge. |
(10) A list of the real property subject to a district |
charge, and a statement of any proposed classifications. |
The list shall include the permanent tax index number of |
each parcel located within the business improvement |
district. |
(11) A statement of the real property classes exempt |
from charge, and a list of the real property to be |
exempted. |
(12) A statement identifying the proposed procedures |
for renewal, subject to the limitations under Section 55. |
(13) A statement identifying the district management |
association and the district management association's |
anticipated liability insurance coverage limits if the |
business improvement district will be contracting with a |
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district management association. |
(14) A statement identifying how unspent revenue |
collected from district charges may be allocated, carried |
over year to year, or returned to the assessed property |
owners at the end of each year by applying the same method |
and basis that was used to calculate the district charges |
levied throughout the term of the business improvement |
district. |
(15) The manner by which an assessed property owner |
may contest the calculation of a specific district charge. |
(16) A statement identifying the business improvement |
district's governance structure. The governance structure |
shall include a board of directors, and the statement |
shall identify the size of the board, the manner in which |
directors are elected or appointed to serve on the board, |
the term of the board members, and any other details |
required under Section 50 of this Act. |
(17) The anticipated annual percentage of total |
district charges that will be allocated for administrative |
expenses to operate and maintain the business improvement |
district. |
(18) A statement identifying if a class or classes of |
real property exempt from district charges may elect to |
have a district charge levied against the property for the |
purposes of receiving benefits from the business |
improvement district. If the district plan authorizes this |
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elective participation, the district plan must also |
identify the process by which the property owner |
affirmatively elects to participate, the maximum annual |
amount of district charges to be levied against the |
property owner, and the maximum amount of total district |
charges to be levied against the property owner for the |
term of the business improvement district. |
(19) Any proposed rules and regulations to be applied |
to the business improvement district. |
Section 20. Assessments and district charges. |
(a) Each district plan shall provide for an assessment |
levied upon property owners owning property within the |
business improvement district upon which district charges are |
based, except an assessment may not be levied against a public |
entity even if the public entity owns property within the |
business improvement district. Unless the district plan |
provides for elective participation and the property owner |
elects to have a district charge assessed and levied upon the |
property owner, assessments may not be levied upon property |
owners owning property within the business improvement |
district that is classified for purposes of taxation under |
established ordinance by the local county board as residential |
or exempt from taxation, except that for properties located in |
Cook County, this only applies to properties granted Class 0 |
and Class 2 classification under the classification system for |
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assessment in effect when the assessment is levied. District |
charges shall be levied at a rate or amount sufficient to |
produce revenues required to provide the activities and |
improvements specified in the district plan, except a district |
charge may not be levied against a single property owner that |
exceeds 20% of the total district charges assessed in the |
business improvement district. The revenue from the levy of |
district charges within a business improvement district may |
not be used to provide services outside the business |
improvement district or for any purpose other than the |
purposes set forth in the ordinance adopting the district |
plan. The business improvement district is not required to use |
revenue from the levy of district charges within a business |
improvement district to provide services to any property |
wherein a district charge is not levied against the property |
owner. |
(b) District charges shall be levied on the basis of the |
estimated benefit to the real property located within the |
business improvement district. In determining the assessment, |
the board of directors of a business improvement district may |
reasonably classify real property for purposes of determining |
benefit if so provided in the district plan. The |
classification may be based on various factors, including, as |
applicable, square footage, geography, or any other factor |
reasonably relating to the benefit received. Certain classes |
may be specified in the district plan as exempted from being |
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charged if they would not receive a special benefit from the |
activities and improvements. District charges need not be |
imposed on different classes on the same basis or the same |
rate. |
(c) District charges levied upon property owners owning |
property within the business improvement district may be |
billed and collected as follows: |
(1) the county collector of the county in which a |
business improvement district is located may bill and |
collect district charges with the regular property tax |
bills of the county if requested by a municipality within |
its jurisdiction that has established a business |
improvement district; however, no municipality is required |
to make this request of its county collector. If the |
county collector agrees to bill and collect district |
charges with the regular property tax bills of the county, |
then the applicable district plan shall be filed with the |
county collector and the annual amount due as set forth by |
the board of directors of a business improvement district |
shall become due in installments at the times property |
taxes shall become due in accordance with each regular |
property tax bill payable during the year in which the |
district charge comes due. The county collector shall |
promptly remit the district charges collected to the |
municipality; or |
(2) if the county collector does not agree to bill and |
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collect district charges with the regular property tax |
bills of the county or the municipality that has |
established the business improvement district declines to |
request the county collector to do so, then the |
municipality shall bill and collect the district charges, |
either directly or through a third party, and the annual |
amount due as set forth by the board of directors of the |
business improvement district in accordance with the |
district plan shall become due in installments on or about |
the times property taxes would otherwise become due in |
accordance with each regular property tax bill payable |
during the year in which the district charge comes due. |
The governmental unit shall not bill the business |
improvement district for the cost of billing and |
collecting the district charges, but may pass on the |
actual costs incurred if using a third party to bill and |
collect the district charges. |
(d) District charges shall be payable at the times and in |
the manner set forth in the applicable bill. Delinquent |
payments for district charges levied pursuant to this Act may |
be charged interest and penalties as may be set forth in the |
district plan. |
(e) District charges shall promptly, and in no case later |
than 90 days after collection, be remitted by the municipality |
to the board of directors of a business improvement district. |
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Section 25. Boundaries of business improvement district. |
(a) The boundaries of a proposed business improvement |
district may not overlap with the boundaries of another |
business improvement district or with the boundaries of a |
special service area established pursuant to the Special |
Service Area Tax Law. |
(b) The boundaries of any proposed business improvement |
district may overlap with the boundaries of a tax increment |
financing district. |
Section 30. Proposals to establish a business improvement |
district. |
(a) To propose a business improvement district, a written |
petition satisfying the requirements of Section 75 shall be |
filed with the clerk and shall include the name and legal |
status of the filing party, information specifying where the |
complete district plan can be obtained, and a summary of the |
district plan that includes: the boundaries of the proposed |
business improvement district; the proposed activities and |
improvements and estimated amount of annual funding required; |
the method of assessment; the business improvement district's |
governance structure; and the total amount of the proposed |
district charges. The information contained in the summary |
shall be sufficient if it enables a property owner to |
generally identify the location and extent of the proposed |
business improvement district, the nature and extent of the |
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activities and improvements, the estimated annual district |
charge that the property owner would pay, and the maximum |
annual district charge that the property owner would pay. |
(b) Upon receiving a written petition to establish a |
business improvement district and concluding that the petition |
meets the requirements of Section 75, the clerk shall submit |
the petition to the governing body. |
Section 35. Resolution of intent to consider establishment |
of a business improvement district. After receiving a verified |
petition from the clerk, the governing body shall, within 90 |
days, adopt a resolution of intention to consider the |
establishment of a business improvement district. The |
resolution shall state the time and place of a public hearing |
to be held by the governing body to consider establishment of a |
business improvement district and shall restate all the |
information contained in the petition regarding the boundaries |
of the proposed business improvement district, the proposed |
activities and improvements, and estimated amount of annual |
funding required, the method of assessment, the governance |
structure, and the total amount of the proposed district |
charges anticipated for the initial term of the business |
improvement district. |
Section 40. Establishment. |
(a) Within 30 days after the public hearing to consider |
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establishment of a business improvement district, the party |
who filed the district plan with the clerk may modify the |
district plan, including to satisfy any applicable legal |
requirements or remedy any deficiencies, prior to the adoption |
of an ordinance establishing a business improvement district. |
Any modification to the district plan that changes the source |
or sources of financing, including the method and basis of |
levying the district charge or an increase or reduction in the |
maximum annual amount or maximum total amount of the district |
charge against one or more properties within the business |
improvement district, the procedures for renewal, the |
boundaries of a business improvement district, the business |
improvement district's board of director's governance |
structure, the activities and improvements to be provided |
within the business improvement district, or a change to the |
filing party must be approved by a written petition that |
conforms to the petition signature requirements set forth in |
Section 75. If the district plan is so modified, the governing |
body shall call an additional public hearing to hear and |
consider objections to the modified district plan prior to the |
adoption of an ordinance establishing a business improvement |
district. |
(b) If, following all required public hearings, the |
governing body decides to establish a business improvement |
district, the governing body shall adopt an ordinance |
establishing the business improvement district that shall |
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include, but is not limited to, all the following information: |
(1) A detailed description of: the boundaries of the |
proposed business improvement district, which may be made |
by reference to a plan or map; the proposed activities and |
improvements, and an estimated amount of annual funding |
required; the method of assessment; the maximum amount of |
annual district charges; and the total amount of the |
proposed district charges for the initial term of the |
business improvement district. The descriptions shall be |
sufficient if the descriptions enable a property owner to |
generally identify the location and extent of the proposed |
business improvement district, the nature and extent of |
the activities and improvements, and the maximum annual |
district charge that the property owner would pay. |
(2) The time and place where any public hearing |
concerning the establishment of the business improvement |
district was held. |
(3) A statement that the activities and improvements |
to be conferred upon property owners will be funded by the |
levy of district charges. |
(4) A finding that each item in the district plan |
satisfies all applicable legal requirements and that |
establishing the business improvement district is in the |
public interest. |
(5) The adoption of the district plan, as may be |
modified pursuant to subsection (a), including each item |
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set forth in Section 15. |
(6) A statement identifying the entity that will be |
responsible for administering district charges, including |
the functions of billing, collecting, and enforcement, |
pursuant to Section 20. |
(7) Authorization for the municipality to remit |
district charges to the board of directors of a business |
improvement district for the provision of activities and |
improvement. |
(8) The deadline and manner for submitting the annual |
report required in Section 65. |
(c) The ordinance establishing the business improvement |
district may not create additional obligations, burdens, |
requirements, liabilities, or restrictions for the business |
improvement district, board of directors of a business |
improvement district, or, when applicable, district management |
association other than those that are expressly contemplated |
by the district plan. |
Section 45. Activities and improvements. |
(a) Upon establishment of a business improvement district, |
the municipality or county collector may levy and collect the |
district charge pursuant to Section 20 as allowed by the |
district plan and the ordinance adopting the district plan. |
(b) Activities and improvements provided pursuant to this |
Act shall be provided in addition to base services. The |
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appropriate municipality shall continue to provide the same |
level of base services in any business improvement district as |
is provided to other real property within the municipality. |
The business improvement district is not expected or required |
to supplement any base services, but the board of directors of |
a business improvement district or the district management |
association, whichever may be applicable, may cause activities |
and improvements that supplement any base services within the |
business improvement district in accordance with the district |
plan. |
Section 50. Governance. |
(a) The board of directors of a business improvement |
district shall be established as a not-for-profit corporation |
subject to all applicable State and federal laws or |
regulations. |
(b) The bylaws of a board of directors of a business |
improvement district shall provide for voting representation |
of owners whose real property is located within the business |
improvement district and may provide that the votes be |
weighted in proportion to the district charge levied or to be |
levied upon property owners within the business improvement |
district, except the total number of votes assigned to one |
owner may not exceed 20% of the total number of votes which may |
be cast. |
(c) In the initial year of the first term of a business |
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improvement district, unless a lower threshold is expressly |
provided for in the district plan, all serving on the board of |
directors shall be property owners, their property management |
agents, or their tenant designees whose real property is |
located within the business improvement district. After the |
initial year of the first term of a business improvement |
district, at least 25% of the members of the board of directors |
must consist of tenant designees of property owners whose real |
property is located within the business improvement district. |
In order to satisfy the 25% tenant designee requirement, the |
board may increase in size if permitted under the district |
plan and bylaws of the board of directors pursuant to |
subsection (b). As used in this subsection, "tenant designee" |
includes (i) an individual, partnership, corporation, |
association, joint venture, or other commercial entity that |
maintains a tenancy agreement with a property owner for real |
property located within the business improvement district or |
(ii) a private or not-for-profit entity that represents the |
interests of an individual partnership, corporation, |
association, joint venture, or other commercial entity that |
maintains a tenancy agreement with a property owner for real |
property located within the business improvement district, and |
who is required to pay some portion of the district charge |
assessed against the property owner pursuant to the tenancy |
agreement or some other written agreement maintained with the |
property owner. In order for a tenant designee to be eligible |
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to serve on the board of directors of a business improvement |
district, the tenant designee's tenancy agreement with the |
property owner must cover leased space that constitutes a |
substantial percentage of the total leasable area within the |
property owner's property located inside the business |
improvement district and whose presence substantially |
contributes to the property's overall economic viability. A |
tenant designee may be deemed to substantially contribute to |
the property's overall economic viability based on factors |
such as leased square footage, revenue contribution, industry |
prominence, or other considerations relevant to the property's |
commercial dynamics. The determination of a tenant designee as |
substantially contributing to the property's overall economic |
viability shall be at the sole discretion of the property |
owner. Failure to fill vacancies allocated to a tenant |
designee do not prevent the board of directors from continuing |
operations if the board of directors is operating consistent |
with the bylaws of the board of directors and any applicable |
State or federal law. |
(d) The composition of the board of directors shall be |
described in the statement identifying the governance |
structure of the business improvement district in the district |
plan. If allowed by the district plan, the bylaws of a board of |
directors of a business improvement district may establish a |
variable range for the size of the board by prescribing a |
minimum and maximum number of directors. If a variable range |
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is established, unless the district plan otherwise provides, |
the number of directors may be fixed or changed from time to |
time, within the minimum and maximum, by the directors without |
further amendment to the bylaws. |
(e) For each business improvement district, the board of |
directors of the business improvement district may contract |
with a district management association if so designated in the |
district plan to administer the operation of and provide for |
and maintain activities and improvements in and for a business |
improvement district. The contract may provide for the |
provision and maintenance of activities and improvements by |
one or more subcontractors of a district management |
association. |
(f) In addition to other powers as are conferred on it by |
law, the board of directors of a business improvement district |
may make recommendations to the governing body with respect to |
any matter involving or relating to the business improvement |
district. |
(g) For consideration as it may deem appropriate, the |
governing body may license or grant to the board of directors |
of a business improvement district the right to undertake or |
permit commercial activities or other private uses of the |
streets or other parts of the business improvement district in |
which the municipality has any real property interest. |
Section 55. Term; renewal. |
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(a) The initial term for a business improvement district |
shall be a maximum of 5 years. Any business improvement |
district may be renewed one or more times by following the |
procedures for renewal as provided in the district plan if |
each property owner that is subject to assessment is notified |
of a pending renewal. A renewal may not go into effect when, |
prior to the effective date of the renewal, a written petition |
seeking termination of the renewal that conforms to the |
petition signature requirements set forth in Section 75 is |
delivered to the clerk. |
(b) Upon each renewal, a business improvement district |
shall have an additional term not to exceed 10 years. Prior to |
renewal, the ordinance adopting the district plan may be |
amended pursuant to Section 60, with the amendments to take |
effect upon renewal. |
(c) Upon renewal, any remaining revenues derived from the |
levy of district charges, or any revenues derived from the |
sale of assets acquired with the revenues, shall be |
transferred to the board of directors of the renewed business |
improvement district. If the renewed business improvement |
district includes additional real property not included within |
the prior business improvement district, the remaining |
revenues shall be spent to benefit only the real property |
within the boundaries of the prior business improvement |
district. If the renewed business improvement district does |
not include real property included in the prior business |
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improvement district, the remaining revenues attributable to |
that real property shall be refunded to the property owners of |
that real property. |
Section 60. Amendments. |
(a) Only upon the written request of the board of |
directors of a business improvement district may the governing |
body amend the ordinance adopting the district plan upon which |
the establishment or renewal of the business improvement |
district was based as set forth in this Section. |
(b) Amendments that provide for any change to the source |
or sources of financing, including the method and basis of |
levying the district charge or an increase in the maximum |
annual district charge or the maximum total district charges |
for the term of the business improvement district, or that |
provide for any change to the procedures for renewal may be |
adopted by the governing body by ordinance if, after a public |
hearing, the governing body determines that it is in the |
public interest to authorize the change to the source or |
sources of financing or to authorize the change to the |
procedures for renewal. |
(c) Amendments that provide for a change to the boundaries |
of a business improvement district may be adopted by the |
governing body by ordinance if, after a public hearing, the |
governing body determines that it is in the public interest to |
authorize the change to the boundaries of the business |
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improvement district and, if applicable, that all newly |
included property will benefit from the activities and |
improvements provided. The governing body may change the |
boundaries of a business improvement district by either |
expanding or reducing the existing boundaries. If the change |
to the boundaries is an expansion to existing boundaries, the |
expansion area must be contiguous with an existing boundary |
and the district charges upon property owners in the expansion |
area shall comply with the requirements of Section 20. The |
governing body may consider an expansion to the boundaries of |
a business improvement district only upon receipt of a written |
petition of property owners within the proposed expansion area |
that conforms to the petition signature requirements set forth |
in Section 75. Any revenues that are unspent at the time of an |
amendment expanding the boundaries of a business improvement |
district shall be spent to benefit only the real property |
within the prior boundaries of the business improvement |
district. If the change to the boundaries is a reduction to |
existing boundaries, any revenues that are unspent at the time |
of the amendment and are associated with real property that is |
being removed from the business improvement district, then |
those remaining revenues shall be refunded to the assessed |
property owners of the real property. Any amendment that |
changes the boundaries of a business improvement district |
shall provide an updated map of the business improvement |
district that reflects the expansion or reduction of its |
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boundaries. |
(d) Notice shall be given and public hearings shall be |
held in accordance with Sections 80 and 85. |
(e) An amendment not provided for in subsection (b) or (c) |
may be adopted by the governing body by ordinance without |
notice and a public hearing if the governing body determines |
that the amendment is consistent with the objectives of the |
district plan and is in the public interest to approve the |
amendment, but the amendment may not create any additional |
obligations, burdens, requirements, liabilities, or |
restrictions for the business improvement district or the |
board of directors of a business improvement district other |
than those that are expressly allowed by the district plan. |
Section 65. Reports. |
(a) The board of directors of a business improvement |
district or the district management association, whichever may |
be applicable, shall prepare or have prepared a report for |
each fiscal year, except the first fiscal year, for which |
district charges are to be levied and collected to pay the |
costs of activities and improvements. The first report shall |
be submitted after the first year of operation of the business |
improvement district. |
(b) The report shall be submitted to the governing body, |
and to each property owner subject to a district charge upon |
request, and shall be made available for public inspection. |
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The report shall refer to the business improvement district by |
name, specify the fiscal year to which the report applies, |
and, with respect to that fiscal year, shall contain, but is |
not limited to, all the following information: |
(1) The activities and improvements provided in the |
previous fiscal year. |
(2) The cost of the activities and improvements |
provided in the previous fiscal year. |
(3) Administrative expenses incurred in connection |
with the activities and improvements provided in the |
previous fiscal year. |
(4) All other administrative expenses incurred in the |
previous fiscal year not contemplated by paragraph (3). |
(5) The amount of any surplus or deficit revenues to |
be carried over from the previous fiscal year. |
(6) A comparison of the projected budget to the actual |
expenditures of the business improvement district for the |
previous fiscal year. |
(7) Planned activities and improvements and projected |
costs and administrative expenses for the upcoming fiscal |
year. |
(8) When applicable, the annual performance evaluation |
of the district management association to be conducted by |
the board of directors for the business improvement |
district. |
(9) Applicable annual milestones and metrics for the |
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purposes of measuring the success of the business |
improvement district, including the impacts of the |
activities and improvements contemplated by the district |
plan on economic activity, labor market, public and |
community safety statistics, and property values within |
the business improvement district. |
(10) Clear instructions on how to access any other |
publicly available report or filing submitted by the |
business improvement district under applicable State or |
federal laws or regulations. |
(c) In addition to the annual reporting requirement, the |
board of directors of a business improvement district shall |
notify the governing body of any proposed infrastructure or |
capital project in excess of $50,000 within a reasonable time. |
Section 70. Dissolution. |
(a) After a public hearing on the subject of dissolution, |
the governing body may dissolve by ordinance any business |
improvement district in either of the following circumstances: |
(1) If the governing body finds there has been |
misappropriation of funds, malfeasance, or a violation of |
law in connection with the management of the business |
improvement district; or |
(2) Each year during the term of the business |
improvement district, there shall be a 60-day period in |
which property owners who paid more than 50% of the total |
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of district charges levied in the prior year may request |
dissolution of a business improvement district by a |
written petition that conforms to the petition signature |
requirements set forth in Section 75. The first period |
shall begin 60 days prior to one year after the date of |
establishment of the district and shall continue for 60 |
days. The next 60-day period shall begin 60 days prior to 2 |
years after the date of the establishment of the district. |
Each successive year during the term of the district shall |
have a 60-day period beginning 60 days after the |
anniversary of the date of the establishment of the |
district. |
(b) The governing body shall adopt a resolution of |
intention to dissolve the business improvement district prior |
to a public hearing required by this section. The resolution |
shall state the reason for the dissolution, shall state the |
time and place of the public hearing, and shall contain a |
proposal to dispose of any assets acquired with the revenues |
of district charges levied on behalf of the business |
improvement district in accordance with subsection (d). |
(c) Notice shall be given and public hearings shall be |
held in accordance with Sections 80 and 85. |
(d) Upon the dissolution or expiration without renewal of |
a district, and after all outstanding debts are paid, any |
remaining revenues derived from the levy of district charges, |
including any remaining revenues from district charges |
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collected after dissolution, or derived from the sale of |
assets acquired with these revenues or construction funds, |
shall be either: (i) refunded to the property owners then |
located or operating within the business improvement district |
in which district charges were levied by applying the same |
method and basis that was used to calculate the district |
charges levied in the fiscal year in which the district |
dissolves or expires; or (ii) spent on activities or |
improvements specified in the district plan under a valid and |
enforceable contract executed by the board of directors of a |
business improvement district or the district management |
association, whichever may be applicable, prior to the |
dissolution. If the dissolution occurs before district charges |
are levied for the fiscal year, the method and basis that was |
used to calculate district charges levied in the immediate |
prior fiscal year shall be used to calculate the amount of any |
refund. |
Section 75. Petition signature requirements. Any petition |
required by this Act must be signed by property owners in the |
proposed business improvement district or proposed expanded |
area of a business improvement district, as the case may be, |
who cumulatively are expected to pay more than 50% of the total |
amount of the district charges proposed to be levied. All |
signatures for a petition to establish or expand a business |
improvement district must be collected within a period ending |
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no more than 120 days from the initiation of the petition, |
which date shall be specified on the petition. |
Section 80. Manner of notice. In addition to any notice of |
a public hearing issued by a governing body, the property |
owner or owners who submit the written petition to the clerk |
under Section 30 or, after a business improvement district is |
established, the board of directors of a business improvement |
district shall also provide notice of a public hearing |
required under this Act. The notice of the public hearing |
shall be given by publication and mailing. When notice by |
publication is required, it shall be provided in both physical |
and online form in a newspaper of general circulation within |
the business improvement district at least once not less than |
15 days prior to the public hearing. The notice must, in |
addition, be published on the website of the business |
improvement district or its district management association, |
if the district or association has a website. Notice by |
mailing shall be given by depositing the notice in the United |
States mail addressed to each property owner subject to a |
district charge, as well as all members of the board of |
directors. The notice must, in addition, be electronically |
mailed if an electronic mailing address is known for each |
owner subject to a district charge as well as all members of |
the board of directors. Notice shall be mailed and |
electronically mailed not less than 14 days prior to the time |
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set for the public hearing. The mailed and electronically |
mailed notice shall enclose or include information allowing a |
property owner to obtain a copy of any proposed district plan |
or proposed amended district plan. |
Section 85. Public hearings. At a public hearing held |
pursuant to this Act, any interested person, including all |
property owners owning real property located within a proposed |
or existing business improvement district, may file with the |
clerk written objections to or statements in support of, and |
may be heard orally, with respect to any matter embodied in the |
district plan or concerning the management of the business |
improvement district. The governing body shall hear and |
consider all statements and objections at the public hearing. |
The governing body may adjourn a public hearing to another |
date without further notice other than a motion fixing the |
time and place the public hearing will reconvene. |
Section 90. Existing law. This Act provides an alternative |
method of financing certain activities and improvements. The |
provisions of this Act do not affect or limit any other |
provisions of law authorizing or providing for the furnishing |
of activities or improvements or the raising of revenue for |
these purposes. Every special service area established |
pursuant to the Special Service Area Tax Law is unaffected by |
this Act. |
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Section 95. Contesting validity. The validity of a |
business improvement district created or amended, district |
plan established, or district charge imposed under this Act |
may not be contested in any action or proceeding unless the |
action or proceeding is commenced: (1) within 30 days after |
the formation ordinance is adopted; (2) with respect to |
amendments under Section 60, within 30 days after an amendment |
has been approved; or (3) with respect to district charges |
imposed under this Act, within 30 days after receipt of the |
bill containing the district charge. If a party appeals a |
final judgment, the party filing the appeal shall request |
discretionary acceleration under Supreme Court Rule 311(b). |
Section 999. Effective date. This Act takes effect upon |
becoming law. |