| ||||
Public Act 103-0646 | ||||
| ||||
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 |
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 |
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 |
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 |
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. |
(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 |
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 |
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 |
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 |
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 |
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. |
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 |
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 |
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 |
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 |
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 |
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 |
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 |
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 |
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. |
(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 |
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 |
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 |
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. |
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 |
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 |
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 |
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 |
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 |
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. |
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. |