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91_HB0305enr HB0305 Enrolled LRB9101600PTpk 1 AN ACT concerning tax increment financing. 2 Be it enacted by the People of the State of Illinois, 3 represented in the General Assembly: 4 Section 5. The Property Tax Code is amended by changing 5 Section 18-185 as follows: 6 (35 ILCS 200/18-185) 7 Sec. 18-185. Short title; definitions. This Division 5 8Section and Sections 18-190 through 18-245may be cited as 9 the Property Tax Extension Limitation Law. As used in this 10 Division 5Sections 18-190 through 18-245: 11 "Consumer Price Index" means the Consumer Price Index for 12 All Urban Consumers for all items published by the United 13 States Department of Labor. 14 "Extension limitation" means (a) the lesser of 5% or the 15 percentage increase in the Consumer Price Index during the 16 12-month calendar year preceding the levy year or (b) the 17 rate of increase approved by voters under Section 18-205. 18 "Affected county" means a county of 3,000,000 or more 19 inhabitants or a county contiguous to a county of 3,000,000 20 or more inhabitants. 21 "Taxing district" has the same meaning provided in 22 Section 1-150, except as otherwise provided in this Section. 23 For the 1991 through 1994 levy years only, "taxing district" 24 includes only each non-home rule taxing district having the 25 majority of its 1990 equalized assessed value within any 26 county or counties contiguous to a county with 3,000,000 or 27 more inhabitants. Beginning with the 1995 levy year, "taxing 28 district" includes only each non-home rule taxing district 29 subject to this Law before the 1995 levy year and each 30 non-home rule taxing district not subject to this Law before 31 the 1995 levy year having the majority of its 1994 equalized HB0305 Enrolled -2- LRB9101600PTpk 1 assessed value in an affected county or counties. Beginning 2 with the levy year in which this Law becomes applicable to a 3 taxing district as provided in Section 18-213, "taxing 4 district" also includes those taxing districts made subject 5 to this Law as provided in Section 18-213. 6 "Aggregate extension" for taxing districts to which this 7 Law applied before the 1995 levy year means the annual 8 corporate extension for the taxing district and those special 9 purpose extensions that are made annually for the taxing 10 district, excluding special purpose extensions: (a) made for 11 the taxing district to pay interest or principal on general 12 obligation bonds that were approved by referendum; (b) made 13 for any taxing district to pay interest or principal on 14 general obligation bonds issued before October 1, 1991; (c) 15 made for any taxing district to pay interest or principal on 16 bonds issued to refund or continue to refund those bonds 17 issued before October 1, 1991; (d) made for any taxing 18 district to pay interest or principal on bonds issued to 19 refund or continue to refund bonds issued after October 1, 20 1991 that were approved by referendum; (e) made for any 21 taxing district to pay interest or principal on revenue bonds 22 issued before October 1, 1991 for payment of which a property 23 tax levy or the full faith and credit of the unit of local 24 government is pledged; however, a tax for the payment of 25 interest or principal on those bonds shall be made only after 26 the governing body of the unit of local government finds that 27 all other sources for payment are insufficient to make those 28 payments; (f) made for payments under a building commission 29 lease when the lease payments are for the retirement of bonds 30 issued by the commission before October 1, 1991, to pay for 31 the building project; (g) made for payments due under 32 installment contracts entered into before October 1, 1991; 33 (h) made for payments of principal and interest on bonds 34 issued under the Metropolitan Water Reclamation District Act HB0305 Enrolled -3- LRB9101600PTpk 1 to finance construction projects initiated before October 1, 2 1991; (i) made for payments of principal and interest on 3 limited bonds, as defined in Section 3 of the Local 4 Government Debt Reform Act, in an amount not to exceed the 5 debt service extension base less the amount in items (b), 6 (c), (e), and (h) of this definition for non-referendum 7 obligations, except obligations initially issued pursuant to 8 referendum; (j) made for payments of principal and interest 9 on bonds issued under Section 15 of the Local Government Debt 10 Reform Act; and (k) made by a school district that 11 participates in the Special Education District of Lake 12 County, created by special education joint agreement under 13 Section 10-22.31 of the School Code, for payment of the 14 school district's share of the amounts required to be 15 contributed by the Special Education District of Lake County 16 to the Illinois Municipal Retirement Fund under Article 7 of 17 the Illinois Pension Code; the amount of any extension under 18 this item (k) shall be certified by the school district to 19 the county clerk. 20 "Aggregate extension" for the taxing districts to which 21 this Law did not apply before the 1995 levy year (except 22 taxing districts subject to this Law in accordance with 23 Section 18-213) means the annual corporate extension for the 24 taxing district and those special purpose extensions that are 25 made annually for the taxing district, excluding special 26 purpose extensions: (a) made for the taxing district to pay 27 interest or principal on general obligation bonds that were 28 approved by referendum; (b) made for any taxing district to 29 pay interest or principal on general obligation bonds issued 30 before March 1, 1995; (c) made for any taxing district to pay 31 interest or principal on bonds issued to refund or continue 32 to refund those bonds issued before March 1, 1995; (d) made 33 for any taxing district to pay interest or principal on bonds 34 issued to refund or continue to refund bonds issued after HB0305 Enrolled -4- LRB9101600PTpk 1 March 1, 1995 that were approved by referendum; (e) made for 2 any taxing district to pay interest or principal on revenue 3 bonds issued before March 1, 1995 for payment of which a 4 property tax levy or the full faith and credit of the unit of 5 local government is pledged; however, a tax for the payment 6 of interest or principal on those bonds shall be made only 7 after the governing body of the unit of local government 8 finds that all other sources for payment are insufficient to 9 make those payments; (f) made for payments under a building 10 commission lease when the lease payments are for the 11 retirement of bonds issued by the commission before March 1, 12 1995 to pay for the building project; (g) made for payments 13 due under installment contracts entered into before March 1, 14 1995; (h) made for payments of principal and interest on 15 bonds issued under the Metropolitan Water Reclamation 16 District Act to finance construction projects initiated 17 before October 1, 1991; (i) made for payments of principal 18 and interest on limited bonds, as defined in Section 3 of the 19 Local Government Debt Reform Act, in an amount not to exceed 20 the debt service extension base less the amount in items (b), 21 (c), and (e) of this definition for non-referendum 22 obligations, except obligations initially issued pursuant to 23 referendum and bonds described in subsection (h) of this 24 definition; (j) made for payments of principal and interest 25 on bonds issued under Section 15 of the Local Government Debt 26 Reform Act; (k) made for payments of principal and interest 27 on bonds authorized by Public Act 88-503 and issued under 28 Section 20a of the Chicago Park District Act for aquarium or 29 museum projects; and (l) made for payments of principal and 30 interest on bonds authorized by Public Act 87-1191 and issued 31 under Section 42 of the Cook County Forest Preserve District 32 Act for zoological park projects. 33 "Aggregate extension" for all taxing districts to which 34 this Law applies in accordance with Section 18-213, except HB0305 Enrolled -5- LRB9101600PTpk 1 for those taxing districts subject to paragraph (2) of 2 subsection (e) of Section 18-213, means the annual corporate 3 extension for the taxing district and those special purpose 4 extensions that are made annually for the taxing district, 5 excluding special purpose extensions: (a) made for the taxing 6 district to pay interest or principal on general obligation 7 bonds that were approved by referendum; (b) made for any 8 taxing district to pay interest or principal on general 9 obligation bonds issued before the date on which the 10 referendum making this Law applicable to the taxing district 11 is held; (c) made for any taxing district to pay interest or 12 principal on bonds issued to refund or continue to refund 13 those bonds issued before the date on which the referendum 14 making this Law applicable to the taxing district is held; 15 (d) made for any taxing district to pay interest or principal 16 on bonds issued to refund or continue to refund bonds issued 17 after the date on which the referendum making this Law 18 applicable to the taxing district is held if the bonds were 19 approved by referendum after the date on which the referendum 20 making this Law applicable to the taxing district is held; 21 (e) made for any taxing district to pay interest or principal 22 on revenue bonds issued before the date on which the 23 referendum making this Law applicable to the taxing district 24 is held for payment of which a property tax levy or the full 25 faith and credit of the unit of local government is pledged; 26 however, a tax for the payment of interest or principal on 27 those bonds shall be made only after the governing body of 28 the unit of local government finds that all other sources for 29 payment are insufficient to make those payments; (f) made for 30 payments under a building commission lease when the lease 31 payments are for the retirement of bonds issued by the 32 commission before the date on which the referendum making 33 this Law applicable to the taxing district is held to pay for 34 the building project; (g) made for payments due under HB0305 Enrolled -6- LRB9101600PTpk 1 installment contracts entered into before the date on which 2 the referendum making this Law applicable to the taxing 3 district is held; (h) made for payments of principal and 4 interest on limited bonds, as defined in Section 3 of the 5 Local Government Debt Reform Act, in an amount not to exceed 6 the debt service extension base less the amount in items (b), 7 (c), and (e) of this definition for non-referendum 8 obligations, except obligations initially issued pursuant to 9 referendum; (i) made for payments of principal and interest 10 on bonds issued under Section 15 of the Local Government Debt 11 Reform Act; and (j) made for a qualified airport authority to 12 pay interest or principal on general obligation bonds issued 13 for the purpose of paying obligations due under, or financing 14 airport facilities required to be acquired, constructed, 15 installed or equipped pursuant to, contracts entered into 16 before March 1, 1996 (but not including any amendments to 17 such a contract taking effect on or after that date). 18 "Aggregate extension" for all taxing districts to which 19 this Law applies in accordance with paragraph (2) of 20 subsection (e) of Section 18-213 means the annual corporate 21 extension for the taxing district and those special purpose 22 extensions that are made annually for the taxing district, 23 excluding special purpose extensions: (a) made for the taxing 24 district to pay interest or principal on general obligation 25 bonds that were approved by referendum; (b) made for any 26 taxing district to pay interest or principal on general 27 obligation bonds issued before the effective date of this 28 amendatory Act of 1997; (c) made for any taxing district to 29 pay interest or principal on bonds issued to refund or 30 continue to refund those bonds issued before the effective 31 date of this amendatory Act of 1997; (d) made for any taxing 32 district to pay interest or principal on bonds issued to 33 refund or continue to refund bonds issued after the effective 34 date of this amendatory Act of 1997 if the bonds were HB0305 Enrolled -7- LRB9101600PTpk 1 approved by referendum after the effective date of this 2 amendatory Act of 1997; (e) made for any taxing district to 3 pay interest or principal on revenue bonds issued before the 4 effective date of this amendatory Act of 1997 for payment of 5 which a property tax levy or the full faith and credit of the 6 unit of local government is pledged; however, a tax for the 7 payment of interest or principal on those bonds shall be made 8 only after the governing body of the unit of local government 9 finds that all other sources for payment are insufficient to 10 make those payments; (f) made for payments under a building 11 commission lease when the lease payments are for the 12 retirement of bonds issued by the commission before the 13 effective date of this amendatory Act of 1997 to pay for the 14 building project; (g) made for payments due under installment 15 contracts entered into before the effective date of this 16 amendatory Act of 1997; (h) made for payments of principal 17 and interest on limited bonds, as defined in Section 3 of the 18 Local Government Debt Reform Act, in an amount not to exceed 19 the debt service extension base less the amount in items (b), 20 (c), and (e) of this definition for non-referendum 21 obligations, except obligations initially issued pursuant to 22 referendum; (i) made for payments of principal and interest 23 on bonds issued under Section 15 of the Local Government Debt 24 Reform Act; and (j) made for a qualified airport authority to 25 pay interest or principal on general obligation bonds issued 26 for the purpose of paying obligations due under, or financing 27 airport facilities required to be acquired, constructed, 28 installed or equipped pursuant to, contracts entered into 29 before March 1, 1996 (but not including any amendments to 30 such a contract taking effect on or after that date). 31 "Debt service extension base" means an amount equal to 32 that portion of the extension for a taxing district for the 33 1994 levy year, or for those taxing districts subject to this 34 Law in accordance with Section 18-213, except for those HB0305 Enrolled -8- LRB9101600PTpk 1 subject to paragraph (2) of subsection (e) of Section 18-213, 2 for the levy year in which the referendum making this Law 3 applicable to the taxing district is held, or for those 4 taxing districts subject to this Law in accordance with 5 paragraph (2) of subsection (e) of Section 18-213 for the 6 1996 levy year, constituting an extension for payment of 7 principal and interest on bonds issued by the taxing district 8 without referendum, but not including (i) bonds authorized by 9 Public Act 88-503 and issued under Section 20a of the Chicago 10 Park District Act for aquarium and museum projects; (ii) 11 bonds issued under Section 15 of the Local Government Debt 12 Reform Act; or (iii) refunding obligations issued to refund 13 or to continue to refund obligations initially issued 14 pursuant to referendum. The debt service extension base may 15 be established or increased as provided under Section 18-212. 16 "Special purpose extensions" include, but are not limited 17 to, extensions for levies made on an annual basis for 18 unemployment and workers' compensation, self-insurance, 19 contributions to pension plans, and extensions made pursuant 20 to Section 6-601 of the Illinois Highway Code for a road 21 district's permanent road fund whether levied annually or 22 not. The extension for a special service area is not 23 included in the aggregate extension. 24 "Aggregate extension base" means the taxing district's 25 last preceding aggregate extension as adjusted under Sections 26 18-215 through 18-230. 27 "Levy year" has the same meaning as "year" under Section 28 1-155. 29 "New property" means (i) the assessed value, after final 30 board of review or board of appeals action, of new 31 improvements or additions to existing improvements on any 32 parcel of real property that increase the assessed value of 33 that real property during the levy year multiplied by the 34 equalization factor issued by the Department under Section HB0305 Enrolled -9- LRB9101600PTpk 1 17-30 and (ii) the assessed value, after final board of 2 review or board of appeals action, of real property not 3 exempt from real estate taxation, which real property was 4 exempt from real estate taxation for any portion of the 5 immediately preceding levy year, multiplied by the 6 equalization factor issued by the Department under Section 7 17-30. In addition, the county clerk in a county containing 8 a population of 3,000,000 or more shall include in the 1997 9 recovered tax increment value for any school district, any 10 recovered tax increment value that was applicable to the 1995 11 tax year calculations. 12 "Qualified airport authority" means an airport authority 13 organized under the Airport Authorities Act and located in a 14 county bordering on the State of Wisconsin and having a 15 population in excess of 200,000 and not greater than 500,000. 16 "Recovered tax increment value" means, except as 17 otherwise provided in this paragraph, the amount of the 18 current year's equalized assessed value, in the first year 19 after a municipality terminates the designation of an area as 20 a redevelopment project area previously established under the 21 Tax Increment Allocation Development Act in the Illinois 22 Municipal Code, previously established under the Industrial 23 Jobs Recovery Law in the Illinois Municipal Code, or 24 previously established under the Economic Development Area 25 Tax Increment Allocation Act, of each taxable lot, block, 26 tract, or parcel of real property in the redevelopment 27 project area over and above the initial equalized assessed 28 value of each property in the redevelopment project area. 29 For the taxes which are extended for the 1997 levy year, the 30 recovered tax increment value for a non-home rule taxing 31 district that first became subject to this Law for the 1995 32 levy year because a majority of its 1994 equalized assessed 33 value was in an affected county or counties shall be 34 increased if a municipality terminated the designation of an HB0305 Enrolled -10- LRB9101600PTpk 1 area in 1993 as a redevelopment project area previously 2 established under the Tax Increment Allocation Development 3 Act in the Illinois Municipal Code, previously established 4 under the Industrial Jobs Recovery Law in the Illinois 5 Municipal Code, or previously established under the Economic 6 Development Area Tax Increment Allocation Act, by an amount 7 equal to the 1994 equalized assessed value of each taxable 8 lot, block, tract, or parcel of real property in the 9 redevelopment project area over and above the initial 10 equalized assessed value of each property in the 11 redevelopment project area. In the first year after a 12 municipality removes a taxable lot, block, tract, or parcel 13 of real property from a redevelopment project area 14 established under the Tax Increment Allocation Development 15 Act in the Illinois Municipal Code, the Industrial Jobs 16 Recovery Law in the Illinois Municipal Code, or the Economic 17 Development Area Tax Increment Allocation Act, "recovered tax 18 increment value" means the amount of the current year's 19 equalized assessed value of each taxable lot, block, tract, 20 or parcel of real property removed from the redevelopment 21 project area over and above the initial equalized assessed 22 value of that real property before removal from the 23 redevelopment project area. 24 Except as otherwise provided in this Section, "limiting 25 rate" means a fraction the numerator of which is the last 26 preceding aggregate extension base times an amount equal to 27 one plus the extension limitation defined in this Section and 28 the denominator of which is the current year's equalized 29 assessed value of all real property in the territory under 30 the jurisdiction of the taxing district during the prior levy 31 year. For those taxing districts that reduced their 32 aggregate extension for the last preceding levy year, the 33 highest aggregate extension in any of the last 3 preceding 34 levy years shall be used for the purpose of computing the HB0305 Enrolled -11- LRB9101600PTpk 1 limiting rate. The denominator shall not include new 2 property. The denominator shall not include the recovered 3 tax increment value. 4 (Source: P.A. 89-1, eff. 2-12-95; 89-138, eff. 7-14-95; 5 89-385, eff. 8-18-95; 89-436, eff. 1-1-96; 89-449, eff. 6 6-1-96; 89-510, eff. 7-11-96; 89-718, eff. 3-7-97; 90-485, 7 eff. 1-1-98; 90-511, eff. 8-22-97; 90-568, eff. 1-1-99; 8 90-616, eff. 7-10-98; 90-655, eff. 7-30-98; revised 9 10-28-98.) 10 Section 15. The Illinois Municipal Code is amended by 11 changing Sections 11-74.4-3, 11-74.4-4, 11-74.4-4.1, 12 11-74.4-5, 11-74.4-6, 11-74.4-7, 11-74.4-7.1, 11-74.4-8, and 13 11-74.4-8a and adding Sections 8-8-3.5 and 11-74.4-4.2 as 14 follows: 15 (65 ILCS 5/8-8-3.5 new) 16 Sec. 8-8-3.5. Tax Increment Financing Report. The 17 reports filed under subsection (d) of Section 11-74.4-5 of 18 the Tax Increment Allocation Redevelopment Act in the 19 Illinois Municipal Code must be separate from any other 20 annual report filed with the Comptroller. The Comptroller 21 must, in cooperation with reporting municipalities, create a 22 format for the reporting of information described in 23 paragraphs 1.5 and 5 and in subparagraph (G) of paragraph 7 24 of subsection (d) of Section 11-74.4-5 of the Tax Increment 25 Allocation Redevelopment Act that facilitates consistent 26 reporting among the reporting municipalities. The Comptroller 27 may allow these reports to be filed electronically and may 28 display the report, or portions of the report, electronically 29 via the Internet. All reports filed under this Section must 30 be made available for examination and copying by the public 31 at all reasonable times. HB0305 Enrolled -12- LRB9101600PTpk 1 (65 ILCS 5/11-74.4-3) (from Ch. 24, par. 11-74.4-3) 2 Sec. 11-74.4-3. Definitions. The following terms, 3 wherever used or referred to in this Division 74.4 shall have 4 the following respective meanings, unless in any case a 5 different meaning clearly appears from the context. 6 (a) For any redevelopment project area that has been 7 designated pursuant to this Section by an ordinance adopted 8 prior to the effective date of this amendatory Act of the 9 91st General Assembly, "blighted area" shall have the meaning 10 set forth in this Section prior to the effective date of this 11 amendatory Act of the 91st General Assembly. 12 On and after the effective date of this amendatory Act of 13 the 91st General Assembly, "blighted area" means any improved 14 or vacant area within the boundaries of a redevelopment 15 project area located within the territorial limits of the 16 municipality where: 17 (1) If improved, industrial, commercial, and 18 residential buildings or improvements are detrimental to 19 the public safety, health, or welfare because of a 20 combination of 5 or more of the following factors, each 21 of which is (i) present, with that presence documented, 22 to a meaningful extent so that a municipality may 23 reasonably find that the factor is clearly present within 24 the intent of the Act and (ii) reasonably distributed 25 throughout the improved part of the redevelopment project 26 area: 27 (A) Dilapidation. An advanced state of 28 disrepair or neglect of necessary repairs to the 29 primary structural components of buildings or 30 improvements in such a combination that a documented 31 building condition analysis determines that major 32 repair is required or the defects are so serious and 33 so extensive that the buildings must be removed. 34 (B) Obsolescence. The condition or process of HB0305 Enrolled -13- LRB9101600PTpk 1 falling into disuse. Structures have become 2 ill-suited for the original use. 3 (C) Deterioration. With respect to buildings, 4 defects including, but not limited to, major defects 5 in the secondary building components such as doors, 6 windows, porches, gutters and downspouts, and 7 fascia. With respect to surface improvements, that 8 the condition of roadways, alleys, curbs, gutters, 9 sidewalks, off-street parking, and surface storage 10 areas evidence deterioration, including, but not 11 limited to, surface cracking, crumbling, potholes, 12 depressions, loose paving material, and weeds 13 protruding through paved surfaces. 14 (D) Presence of structures below minimum code 15 standards. All structures that do not meet the 16 standards of zoning, subdivision, building, fire, 17 and other governmental codes applicable to property, 18 but not including housing and property maintenance 19 codes. 20 (E) Illegal use of individual structures. The 21 use of structures in violation of applicable 22 federal, State, or local laws, exclusive of those 23 applicable to the presence of structures below 24 minimum code standards. 25 (F) Excessive vacancies. The presence of 26 buildings that are unoccupied or under-utilized and 27 that represent an adverse influence on the area 28 because of the frequency, extent, or duration of the 29 vacancies. 30 (G) Lack of ventilation, light, or sanitary 31 facilities. The absence of adequate ventilation for 32 light or air circulation in spaces or rooms without 33 windows, or that require the removal of dust, odor, 34 gas, smoke, or other noxious airborne materials. HB0305 Enrolled -14- LRB9101600PTpk 1 Inadequate natural light and ventilation means the 2 absence of skylights or windows for interior spaces 3 or rooms and improper window sizes and amounts by 4 room area to window area ratios. Inadequate 5 sanitary facilities refers to the absence or 6 inadequacy of garbage storage and enclosure, 7 bathroom facilities, hot water and kitchens, and 8 structural inadequacies preventing ingress and 9 egress to and from all rooms and units within a 10 building. 11 (H) Inadequate utilities. Underground and 12 overhead utilities such as storm sewers and storm 13 drainage, sanitary sewers, water lines, and gas, 14 telephone, and electrical services that are shown to 15 be inadequate. Inadequate utilities are those that 16 are: (i) of insufficient capacity to serve the uses 17 in the redevelopment project area, (ii) 18 deteriorated, antiquated, obsolete, or in disrepair, 19 or (iii) lacking within the redevelopment project 20 area. 21 (I) Excessive land coverage and overcrowding 22 of structures and community facilities. The 23 over-intensive use of property and the crowding of 24 buildings and accessory facilities onto a site. 25 Examples of problem conditions warranting the 26 designation of an area as one exhibiting excessive 27 land coverage are: (i) the presence of buildings 28 either improperly situated on parcels or located on 29 parcels of inadequate size and shape in relation to 30 present-day standards of development for health and 31 safety and (ii) the presence of multiple buildings 32 on a single parcel. For there to be a finding of 33 excessive land coverage, these parcels must exhibit 34 one or more of the following conditions: HB0305 Enrolled -15- LRB9101600PTpk 1 insufficient provision for light and air within or 2 around buildings, increased threat of spread of fire 3 due to the close proximity of buildings, lack of 4 adequate or proper access to a public right-of-way, 5 lack of reasonably required off-street parking, or 6 inadequate provision for loading and service. 7 (J) Deleterious land use or layout. The 8 existence of incompatible land-use relationships, 9 buildings occupied by inappropriate mixed-uses, or 10 uses considered to be noxious, offensive, or 11 unsuitable for the surrounding area. 12 (K) Environmental clean-up. The proposed 13 redevelopment project area has incurred Illinois 14 Environmental Protection Agency or United States 15 Environmental Protection Agency remediation costs 16 for, or a study conducted by an independent 17 consultant recognized as having expertise in 18 environmental remediation has determined a need for, 19 the clean-up of hazardous waste, hazardous 20 substances, or underground storage tanks required by 21 State or federal law, provided that the remediation 22 costs constitute a material impediment to the 23 development or redevelopment of the redevelopment 24 project area. 25 (L) Lack of community planning. The proposed 26 redevelopment project area was developed prior to or 27 without the benefit or guidance of a community plan. 28 This means that the development occurred prior to 29 the adoption by the municipality of a comprehensive 30 or other community plan or that the plan was not 31 followed at the time of the area's development. 32 This factor must be documented by evidence of 33 adverse or incompatible land-use relationships, 34 inadequate street layout, improper subdivision, HB0305 Enrolled -16- LRB9101600PTpk 1 parcels of inadequate shape and size to meet 2 contemporary development standards, or other 3 evidence demonstrating an absence of effective 4 community planning. 5 (M) The total equalized assessed value of the 6 proposed redevelopment project area has declined for 7 3 of the last 5 calendar years prior to the year in 8 which the redevelopment project area is designated 9 or is increasing at an annual rate that is less than 10 the balance of the municipality for 3 of the last 5 11 calendar years for which information is available or 12 is increasing at an annual rate that is less than 13 the Consumer Price Index for All Urban Consumers 14 published by the United States Department of Labor 15 or successor agency for 3 of the last 5 calendar 16 years prior to the year in which the redevelopment 17 project area is designated. 18 (2) If vacant, the sound growth of the 19 redevelopment project area is impaired by a combination 20 of 2 or more of the following factors, each of which is 21 (i) present, with that presence documented, to a 22 meaningful extent so that a municipality may reasonably 23 find that the factor is clearly present within the intent 24 of the Act and (ii) reasonably distributed throughout the 25 vacant part of the redevelopment project area to which it 26 pertains: 27 (A) Obsolete platting of vacant land that 28 results in parcels of limited or narrow size or 29 configurations of parcels of irregular size or shape 30 that would be difficult to develop on a planned 31 basis and in a manner compatible with contemporary 32 standards and requirements, or platting that failed 33 to create rights-of-ways for streets or alleys or 34 that created inadequate right-of-way widths for HB0305 Enrolled -17- LRB9101600PTpk 1 streets, alleys, or other public rights-of-way or 2 that omitted easements for public utilities. 3 (B) Diversity of ownership of parcels of 4 vacant land sufficient in number to retard or impede 5 the ability to assemble the land for development. 6 (C) Tax and special assessment delinquencies 7 exist or the property has been the subject of tax 8 sales under the Property Tax Code within the last 5 9 years. 10 (D) Deterioration of structures or site 11 improvements in neighboring areas adjacent to the 12 vacant land. 13 (E) The area has incurred Illinois 14 Environmental Protection Agency or United States 15 Environmental Protection Agency remediation costs 16 for, or a study conducted by an independent 17 consultant recognized as having expertise in 18 environmental remediation has determined a need for, 19 the clean-up of hazardous waste, hazardous 20 substances, or underground storage tanks required by 21 State or federal law, provided that the remediation 22 costs constitute a material impediment to the 23 development or redevelopment of the redevelopment 24 project area. 25 (F) The total equalized assessed value of the 26 proposed redevelopment project area has declined for 27 3 of the last 5 calendar years prior to the year in 28 which the redevelopment project area is designated 29 or is increasing at an annual rate that is less than 30 the balance of the municipality for 3 of the last 5 31 calendar years for which information is available or 32 is increasing at an annual rate that is less than 33 the Consumer Price Index for All Urban Consumers 34 published by the United States Department of Labor HB0305 Enrolled -18- LRB9101600PTpk 1 or successor agency for 3 of the last 5 calendar 2 years prior to the year in which the redevelopment 3 project area is designated. 4 (3) If vacant, the sound growth of the 5 redevelopment project area is impaired by one of the 6 following factors that (i) is present, with that presence 7 documented, to a meaningful extent so that a municipality 8 may reasonably find that the factor is clearly present 9 within the intent of the Act and (ii) is reasonably 10 distributed throughout the vacant part or parts of the 11 redevelopment project area to which it pertains: 12 (A) The area consists of one or more unused 13 quarries, mines, or strip mine ponds. 14 (B) The area consists of unused railyards, 15 rail tracks, or railroad rights-of-way. 16 (C) The area, prior to its designation, is 17 subject to chronic flooding that adversely impacts 18 on real property in the area as certified by a 19 registered professional engineer or appropriate 20 regulatory agency. 21 (D) The area consists of an unused or illegal 22 disposal site containing earth, stone, building 23 debris, or similar materials that were removed from 24 construction, demolition, excavation, or dredge 25 sites. 26 (E) Prior to the effective date of this 27 amendatory Act of the 91st General Assembly, the 28 area is not less than 50 nor more than 100 acres and 29 75% of which is vacant (notwithstanding that the 30 area has been used for commercial agricultural 31 purposes within 5 years prior to the designation of 32 the redevelopment project area), and the area meets 33 at least one of the factors itemized in paragraph 34 (1) of this subsection, the area has been designated HB0305 Enrolled -19- LRB9101600PTpk 1 as a town or village center by ordinance or 2 comprehensive plan adopted prior to January 1, 1982, 3 and the area has not been developed for that 4 designated purpose. 5 (F) The area qualified as a blighted improved 6 area immediately prior to becoming vacant, unless 7 there has been substantial private investment in the 8 immediately surrounding area., if improved,9industrial, commercial and residential buildings or10improvements, because of a combination of 5 or more11of the following factors: age; dilapidation;12obsolescence; deterioration; illegal use of13individual structures; presence of structures below14minimum code standards; excessive vacancies;15overcrowding of structures and community facilities;16lack of ventilation, light or sanitary facilities;17inadequate utilities; excessive land coverage;18deleterious land use or layout; depreciation of19physical maintenance; lack of community planning, is20detrimental to the public safety, health, morals or21welfare, or if vacant, the sound growth of the22taxing districts is impaired by, (1) a combination23of 2 or more of the following factors: obsolete24platting of the vacant land; diversity of ownership25of such land; tax and special assessment26delinquencies on such land; flooding on all or part27of such vacant land; deterioration of structures or28site improvements in neighboring areas adjacent to29the vacant land, or (2) the area immediately prior30to becoming vacant qualified as a blighted improved31area, or (3) the area consists of an unused quarry32or unused quarries, or (4) the area consists of33unused railyards, rail tracks or railroad34rights-of-way, or (5) the area, prior to itsHB0305 Enrolled -20- LRB9101600PTpk 1designation, is subject to chronic flooding which2adversely impacts on real property in the area and3such flooding is substantially caused by one or more4improvements in or in proximity to the area which5improvements have been in existence for at least 56years, or (6) the area consists of an unused7disposal site, containing earth, stone, building8debris or similar material, which were removed from9construction, demolition, excavation or dredge10sites, or (7) the area is not less than 50 nor more11than 100 acres and 75% of which is vacant,12notwithstanding the fact that such area has been13used for commercial agricultural purposes within 514years prior to the designation of the redevelopment15project area, and which area meets at least one of16the factors itemized in provision (1) of this17subsection (a), and the area has been designated as18a town or village center by ordinance or19comprehensive plan adopted prior to January 1, 1982,20and the area has not been developed for that21designated purpose.22 (b) For any redevelopment project area that has been 23 designated pursuant to this Section by an ordinance adopted 24 prior to the effective date of this amendatory Act of the 25 91st General Assembly, "conservation area" shall have the 26 meaning set forth in this Section prior to the effective date 27 of this amendatory Act of the 91st General Assembly. 28 On and after the effective date of this amendatory Act of 29 the 91st General Assembly, "conservation area" means any 30 improved area within the boundaries of a redevelopment 31 project area located within the territorial limits of the 32 municipality in which 50% or more of the structures in the 33 area have an age of 35 years or more. Such an area is not 34 yet a blighted area but because of a combination of 3 or more HB0305 Enrolled -21- LRB9101600PTpk 1 of the following factorsdilapidation; obsolescence;2deterioration; illegal use of individual structures; presence3of structures below minimum code standards; abandonment;4excessive vacancies; overcrowding of structures and community5facilities; lack of ventilation, light or sanitary6facilities; inadequate utilities; excessive land coverage;7deleterious land use or layout; depreciation of physical8maintenance; lack of community planning,is detrimental to 9 the public safety, health, morals or welfare and such an area 10 may become a blighted area:.11 (1) Dilapidation. An advanced state of disrepair 12 or neglect of necessary repairs to the primary structural 13 components of buildings or improvements in such a 14 combination that a documented building condition analysis 15 determines that major repair is required or the defects 16 are so serious and so extensive that the buildings must 17 be removed. 18 (2) Obsolescence. The condition or process of 19 falling into disuse. Structures have become ill-suited 20 for the original use. 21 (3) Deterioration. With respect to buildings, 22 defects including, but not limited to, major defects in 23 the secondary building components such as doors, windows, 24 porches, gutters and downspouts, and fascia. With 25 respect to surface improvements, that the condition of 26 roadways, alleys, curbs, gutters, sidewalks, off-street 27 parking, and surface storage areas evidence 28 deterioration, including, but not limited to, surface 29 cracking, crumbling, potholes, depressions, loose paving 30 material, and weeds protruding through paved surfaces. 31 (4) Presence of structures below minimum code 32 standards. All structures that do not meet the standards 33 of zoning, subdivision, building, fire, and other 34 governmental codes applicable to property, but not HB0305 Enrolled -22- LRB9101600PTpk 1 including housing and property maintenance codes. 2 (5) Illegal use of individual structures. The use 3 of structures in violation of applicable federal, State, 4 or local laws, exclusive of those applicable to the 5 presence of structures below minimum code standards. 6 (6) Excessive vacancies. The presence of buildings 7 that are unoccupied or under-utilized and that represent 8 an adverse influence on the area because of the 9 frequency, extent, or duration of the vacancies. 10 (7) Lack of ventilation, light, or sanitary 11 facilities. The absence of adequate ventilation for 12 light or air circulation in spaces or rooms without 13 windows, or that require the removal of dust, odor, gas, 14 smoke, or other noxious airborne materials. Inadequate 15 natural light and ventilation means the absence or 16 inadequacy of skylights or windows for interior spaces or 17 rooms and improper window sizes and amounts by room area 18 to window area ratios. Inadequate sanitary facilities 19 refers to the absence or inadequacy of garbage storage 20 and enclosure, bathroom facilities, hot water and 21 kitchens, and structural inadequacies preventing ingress 22 and egress to and from all rooms and units within a 23 building. 24 (8) Inadequate utilities. Underground and overhead 25 utilities such as storm sewers and storm drainage, 26 sanitary sewers, water lines, and gas, telephone, and 27 electrical services that are shown to be inadequate. 28 Inadequate utilities are those that are: (i) of 29 insufficient capacity to serve the uses in the 30 redevelopment project area, (ii) deteriorated, 31 antiquated, obsolete, or in disrepair, or (iii) lacking 32 within the redevelopment project area. 33 (9) Excessive land coverage and overcrowding of 34 structures and community facilities. The over-intensive HB0305 Enrolled -23- LRB9101600PTpk 1 use of property and the crowding of buildings and 2 accessory facilities onto a site. Examples of problem 3 conditions warranting the designation of an area as one 4 exhibiting excessive land coverage are: the presence of 5 buildings either improperly situated on parcels or 6 located on parcels of inadequate size and shape in 7 relation to present-day standards of development for 8 health and safety and the presence of multiple buildings 9 on a single parcel. For there to be a finding of 10 excessive land coverage, these parcels must exhibit one 11 or more of the following conditions: insufficient 12 provision for light and air within or around buildings, 13 increased threat of spread of fire due to the close 14 proximity of buildings, lack of adequate or proper access 15 to a public right-of-way, lack of reasonably required 16 off-street parking, or inadequate provision for loading 17 and service. 18 (10) Deleterious land use or layout. The existence 19 of incompatible land-use relationships, buildings 20 occupied by inappropriate mixed-uses, or uses considered 21 to be noxious, offensive, or unsuitable for the 22 surrounding area. 23 (11) Lack of community planning. The proposed 24 redevelopment project area was developed prior to or 25 without the benefit or guidance of a community plan. This 26 means that the development occurred prior to the adoption 27 by the municipality of a comprehensive or other community 28 plan or that the plan was not followed at the time of the 29 area's development. This factor must be documented by 30 evidence of adverse or incompatible land-use 31 relationships, inadequate street layout, improper 32 subdivision, parcels of inadequate shape and size to meet 33 contemporary development standards, or other evidence 34 demonstrating an absence of effective community planning. HB0305 Enrolled -24- LRB9101600PTpk 1 2 (12) The area has incurred Illinois Environmental 3 Protection Agency or United States Environmental 4 Protection Agency remediation costs for, or a study 5 conducted by an independent consultant recognized as 6 having expertise in environmental remediation has 7 determined a need for, the clean-up of hazardous waste, 8 hazardous substances, or underground storage tanks 9 required by State or federal law, provided that the 10 remediation costs constitute a material impediment to the 11 development or redevelopment of the redevelopment project 12 area. 13 (13) The total equalized assessed value of the 14 proposed redevelopment project area has declined for 3 of 15 the last 5 calendar years for which information is 16 available or is increasing at an annual rate that is less 17 than the balance of the municipality for 3 of the last 5 18 calendar years for which information is available or is 19 increasing at an annual rate that is less than the 20 Consumer Price Index for All Urban Consumers published by 21 the United States Department of Labor or successor agency 22 for 3 of the last 5 calendar years for which information 23 is available. 24 (c) "Industrial park" means an area in a blighted or 25 conservation area suitable for use by any manufacturing, 26 industrial, research or transportation enterprise, of 27 facilities to include but not be limited to factories, mills, 28 processing plants, assembly plants, packing plants, 29 fabricating plants, industrial distribution centers, 30 warehouses, repair overhaul or service facilities, freight 31 terminals, research facilities, test facilities or railroad 32 facilities. 33 (d) "Industrial park conservation area" means an area 34 within the boundaries of a redevelopment project area located HB0305 Enrolled -25- LRB9101600PTpk 1 within the territorial limits of a municipality that is a 2 labor surplus municipality or within 1 1/2 miles of the 3 territorial limits of a municipality that is a labor surplus 4 municipality if the area is annexed to the municipality; 5 which area is zoned as industrial no later than at the time 6 the municipality by ordinance designates the redevelopment 7 project area, and which area includes both vacant land 8 suitable for use as an industrial park and a blighted area or 9 conservation area contiguous to such vacant land. 10 (e) "Labor surplus municipality" means a municipality in 11 which, at any time during the 6 months before the 12 municipality by ordinance designates an industrial park 13 conservation area, the unemployment rate was over 6% and was 14 also 100% or more of the national average unemployment rate 15 for that same time as published in the United States 16 Department of Labor Bureau of Labor Statistics publication 17 entitled "The Employment Situation" or its successor 18 publication. For the purpose of this subsection, if 19 unemployment rate statistics for the municipality are not 20 available, the unemployment rate in the municipality shall be 21 deemed to be the same as the unemployment rate in the 22 principal county in which the municipality is located. 23 (f) "Municipality" shall mean a city, village or 24 incorporated town. 25 (g) "Initial Sales Tax Amounts" means the amount of 26 taxes paid under the Retailers' Occupation Tax Act, Use Tax 27 Act, Service Use Tax Act, the Service Occupation Tax Act, the 28 Municipal Retailers' Occupation Tax Act, and the Municipal 29 Service Occupation Tax Act by retailers and servicemen on 30 transactions at places located in a State Sales Tax Boundary 31 during the calendar year 1985. 32 (g-1) "Revised Initial Sales Tax Amounts" means the 33 amount of taxes paid under the Retailers' Occupation Tax Act, 34 Use Tax Act, Service Use Tax Act, the Service Occupation Tax HB0305 Enrolled -26- LRB9101600PTpk 1 Act, the Municipal Retailers' Occupation Tax Act, and the 2 Municipal Service Occupation Tax Act by retailers and 3 servicemen on transactions at places located within the State 4 Sales Tax Boundary revised pursuant to Section 11-74.4-8a(9) 5 of this Act. 6 (h) "Municipal Sales Tax Increment" means an amount 7 equal to the increase in the aggregate amount of taxes paid 8 to a municipality from the Local Government Tax Fund arising 9 from sales by retailers and servicemen within the 10 redevelopment project area or State Sales Tax Boundary, as 11 the case may be, for as long as the redevelopment project 12 area or State Sales Tax Boundary, as the case may be, exist 13 over and above the aggregate amount of taxes as certified by 14 the Illinois Department of Revenue and paid under the 15 Municipal Retailers' Occupation Tax Act and the Municipal 16 Service Occupation Tax Act by retailers and servicemen, on 17 transactions at places of business located in the 18 redevelopment project area or State Sales Tax Boundary, as 19 the case may be, during the base year which shall be the 20 calendar year immediately prior to the year in which the 21 municipality adopted tax increment allocation financing. For 22 purposes of computing the aggregate amount of such taxes for 23 base years occurring prior to 1985, the Department of Revenue 24 shall determine the Initial Sales Tax Amounts for such taxes 25 and deduct therefrom an amount equal to 4% of the aggregate 26 amount of taxes per year for each year the base year is prior 27 to 1985, but not to exceed a total deduction of 12%. The 28 amount so determined shall be known as the "Adjusted Initial 29 Sales Tax Amounts". For purposes of determining the 30 Municipal Sales Tax Increment, the Department of Revenue 31 shall for each period subtract from the amount paid to the 32 municipality from the Local Government Tax Fund arising from 33 sales by retailers and servicemen on transactions located in 34 the redevelopment project area or the State Sales Tax HB0305 Enrolled -27- LRB9101600PTpk 1 Boundary, as the case may be, the certified Initial Sales Tax 2 Amounts, the Adjusted Initial Sales Tax Amounts or the 3 Revised Initial Sales Tax Amounts for the Municipal 4 Retailers' Occupation Tax Act and the Municipal Service 5 Occupation Tax Act. For the State Fiscal Year 1989, this 6 calculation shall be made by utilizing the calendar year 1987 7 to determine the tax amounts received. For the State Fiscal 8 Year 1990, this calculation shall be made by utilizing the 9 period from January 1, 1988, until September 30, 1988, to 10 determine the tax amounts received from retailers and 11 servicemen pursuant to the Municipal Retailers' Occupation 12 Tax and the Municipal Service Occupation Tax Act, which shall 13 have deducted therefrom nine-twelfths of the certified 14 Initial Sales Tax Amounts, the Adjusted Initial Sales Tax 15 Amounts or the Revised Initial Sales Tax Amounts as 16 appropriate. For the State Fiscal Year 1991, this calculation 17 shall be made by utilizing the period from October 1, 1988, 18 to June 30, 1989, to determine the tax amounts received from 19 retailers and servicemen pursuant to the Municipal Retailers' 20 Occupation Tax and the Municipal Service Occupation Tax Act 21 which shall have deducted therefrom nine-twelfths of the 22 certified Initial Sales Tax Amounts, Adjusted Initial Sales 23 Tax Amounts or the Revised Initial Sales Tax Amounts as 24 appropriate. For every State Fiscal Year thereafter, the 25 applicable period shall be the 12 months beginning July 1 and 26 ending June 30 to determine the tax amounts received which 27 shall have deducted therefrom the certified Initial Sales Tax 28 Amounts, the Adjusted Initial Sales Tax Amounts or the 29 Revised Initial Sales Tax Amounts, as the case may be. 30 (i) "Net State Sales Tax Increment" means the sum of the 31 following: (a) 80% of the first $100,000 of State Sales Tax 32 Increment annually generated within a State Sales Tax 33 Boundary; (b) 60% of the amount in excess of $100,000 but not 34 exceeding $500,000 of State Sales Tax Increment annually HB0305 Enrolled -28- LRB9101600PTpk 1 generated within a State Sales Tax Boundary; and (c) 40% of 2 all amounts in excess of $500,000 of State Sales Tax 3 Increment annually generated within a State Sales Tax 4 Boundary. If, however, a municipality established a tax 5 increment financing district in a county with a population in 6 excess of 3,000,000 before January 1, 1986, and the 7 municipality entered into a contract or issued bonds after 8 January 1, 1986, but before December 31, 1986, to finance 9 redevelopment project costs within a State Sales Tax 10 Boundary, then the Net State Sales Tax Increment means, for 11 the fiscal years beginning July 1, 1990, and July 1, 1991, 12 100% of the State Sales Tax Increment annually generated 13 within a State Sales Tax Boundary; and notwithstanding any 14 other provision of this Act, for those fiscal years the 15 Department of Revenue shall distribute to those 16 municipalities 100% of their Net State Sales Tax Increment 17 before any distribution to any other municipality and 18 regardless of whether or not those other municipalities will 19 receive 100% of their Net State Sales Tax Increment. For 20 Fiscal Year 1999, and every year thereafter until the year 21 2007, for any municipality that has not entered into a 22 contract or has not issued bonds prior to June 1, 1988 to 23 finance redevelopment project costs within a State Sales Tax 24 Boundary, the Net State Sales Tax Increment shall be 25 calculated as follows: By multiplying the Net State Sales Tax 26 Increment by 90% in the State Fiscal Year 1999; 80% in the 27 State Fiscal Year 2000; 70% in the State Fiscal Year 2001; 28 60% in the State Fiscal Year 2002; 50% in the State Fiscal 29 Year 2003; 40% in the State Fiscal Year 2004; 30% in the 30 State Fiscal Year 2005; 20% in the State Fiscal Year 2006; 31 and 10% in the State Fiscal Year 2007. No payment shall be 32 made for State Fiscal Year 2008 and thereafter. 33 Municipalities that issued bonds in connection with a 34 redevelopment project in a redevelopment project area within HB0305 Enrolled -29- LRB9101600PTpk 1 the State Sales Tax Boundary prior to July 29, 1991, or that 2 entered into contracts in connection with a redevelopment 3 project in a redevelopment project area before June 1, 1988, 4 shall continue to receive their proportional share of the 5 Illinois Tax Increment Fund distribution until the date on 6 which the redevelopment project is completed or terminated, 7 or the date on which the bonds are retired or the contracts 8 are completed, whichever date occurs first. Refunding of any 9 bonds issued prior to July 29, 1991, shall not alter the Net 10 State Sales Tax Increment. 11 (j) "State Utility Tax Increment Amount" means an amount 12 equal to the aggregate increase in State electric and gas tax 13 charges imposed on owners and tenants, other than residential 14 customers, of properties located within the redevelopment 15 project area under Section 9-222 of the Public Utilities Act, 16 over and above the aggregate of such charges as certified by 17 the Department of Revenue and paid by owners and tenants, 18 other than residential customers, of properties within the 19 redevelopment project area during the base year, which shall 20 be the calendar year immediately prior to the year of the 21 adoption of the ordinance authorizing tax increment 22 allocation financing. 23 (k) "Net State Utility Tax Increment" means the sum of 24 the following: (a) 80% of the first $100,000 of State Utility 25 Tax Increment annually generated by a redevelopment project 26 area; (b) 60% of the amount in excess of $100,000 but not 27 exceeding $500,000 of the State Utility Tax Increment 28 annually generated by a redevelopment project area; and (c) 29 40% of all amounts in excess of $500,000 of State Utility Tax 30 Increment annually generated by a redevelopment project area. 31 For the State Fiscal Year 1999, and every year thereafter 32 until the year 2007, for any municipality that has not 33 entered into a contract or has not issued bonds prior to June 34 1, 1988 to finance redevelopment project costs within a HB0305 Enrolled -30- LRB9101600PTpk 1 redevelopment project area, the Net State Utility Tax 2 Increment shall be calculated as follows: By multiplying the 3 Net State Utility Tax Increment by 90% in the State Fiscal 4 Year 1999; 80% in the State Fiscal Year 2000; 70% in the 5 State Fiscal Year 2001; 60% in the State Fiscal Year 2002; 6 50% in the State Fiscal Year 2003; 40% in the State Fiscal 7 Year 2004; 30% in the State Fiscal Year 2005; 20% in the 8 State Fiscal Year 2006; and 10% in the State Fiscal Year 9 2007. No payment shall be made for the State Fiscal Year 2008 10 and thereafter. 11 Municipalities that issue bonds in connection with the 12 redevelopment project during the period from June 1, 1988 13 until 3 years after the effective date of this Amendatory Act 14 of 1988 shall receive the Net State Utility Tax Increment, 15 subject to appropriation, for 15 State Fiscal Years after the 16 issuance of such bonds. For the 16th through the 20th State 17 Fiscal Years after issuance of the bonds, the Net State 18 Utility Tax Increment shall be calculated as follows: By 19 multiplying the Net State Utility Tax Increment by 90% in 20 year 16; 80% in year 17; 70% in year 18; 60% in year 19; and 21 50% in year 20. Refunding of any bonds issued prior to June 22 1, 1988, shall not alter the revised Net State Utility Tax 23 Increment payments set forth above. 24 (l) "Obligations" mean bonds, loans, debentures, notes, 25 special certificates or other evidence of indebtedness issued 26 by the municipality to carry out a redevelopment project or 27 to refund outstanding obligations. 28 (m) "Payment in lieu of taxes" means those estimated tax 29 revenues from real property in a redevelopment project area 30 derived from real property that has been acquired by a 31 municipality which according to the redevelopment project or 32 plan is to be used for a private use which taxing districts 33 would have received had a municipality not acquired the real 34 property and adopted tax increment allocation financing and HB0305 Enrolled -31- LRB9101600PTpk 1 which would result from levies made after the time of the 2 adoption of tax increment allocation financing to the time 3 the current equalized value of real property in the 4 redevelopment project area exceeds the total initial 5 equalized value of real property in said area. 6 (n) "Redevelopment plan" means the comprehensive program 7 of the municipality for development or redevelopment intended 8 by the payment of redevelopment project costs to reduce or 9 eliminate those conditions the existence of which qualified 10 the redevelopment project area as a "blighted area" or 11 "conservation area" or combination thereof or "industrial 12 park conservation area," and thereby to enhance the tax bases 13 of the taxing districts which extend into the redevelopment 14 project area. On and after the effective date of this 15 amendatory Act of the 91st General Assembly, no redevelopment 16 plan may be approved or amended that includes the development 17 of vacant land (i) with a golf course and related clubhouse 18 and other facilities or (ii) designated by federal, State, 19 county, or municipal government as public land for outdoor 20 recreational activities or for nature preserves and used for 21 that purpose within 5 years prior to the adoption of the 22 redevelopment plan. For the purpose of this subsection, 23 "recreational activities" is limited to mean camping and 24 hunting. Each redevelopment plan shall set forth in writing 25 the program to be undertaken to accomplish the objectives 26 and shall include but not be limited to: 27 (A) an itemized list of estimated redevelopment 28 project costs; 29 (B) evidence indicating that the redevelopment 30 project area on the whole has not been subject to growth 31 and development through investment by private enterprise; 32 (C) an assessment of any financial impact of the 33 redevelopment project area on or any increased demand for 34 services from any taxing district affected by the plan HB0305 Enrolled -32- LRB9101600PTpk 1 and any program to address such financial impact or 2 increased demand; 3 (D) the sources of funds to pay costs; 4 (E) the nature and term of the obligations to be 5 issued; 6 (F) the most recent equalized assessed valuation of 7 the redevelopment project area; 8 (G) an estimate as to the equalized assessed 9 valuation after redevelopment and the general land uses 10 to apply in the redevelopment project area; 11 (H) a commitment to fair employment practices and 12 an affirmative action plan; 13 (I) if it concerns an industrial park conservation 14 area, the plan shall also include a general description 15 of any proposed developer, user and tenant of any 16 property, a description of the type, structure and 17 general character of the facilities to be developed, a 18 description of the type, class and number of new 19 employees to be employed in the operation of the 20 facilities to be developed; and 21 (J) if property is to be annexed to the 22 municipality, the plan shall include the terms of the 23 annexation agreement. 24 The provisions of items (B) and (C) of this subsection 25 (n) shall not apply to a municipality that before March 14, 26 1994 (the effective date of Public Act 88-537) had fixed, 27 either by its corporate authorities or by a commission 28 designated under subsection (k) of Section 11-74.4-4, a time 29 and place for a public hearing as required by subsection (a) 30 of Section 11-74.4-5. No redevelopment plan shall be adopted 31 unless a municipality complies with all of the following 32 requirements: 33 (1) The municipality finds that the redevelopment 34 project area on the whole has not been subject to growth HB0305 Enrolled -33- LRB9101600PTpk 1 and development through investment by private enterprise 2 and would not reasonably be anticipated to be developed 3 without the adoption of the redevelopment plan. 4 (2) The municipality finds that the redevelopment 5 plan and project conform to the comprehensive plan for 6 the development of the municipality as a whole, or, for 7 municipalities with a population of 100,000 or more, 8 regardless of when the redevelopment plan and project was 9 adopted, the redevelopment plan and project either: (i) 10 conforms to the strategic economic development or 11 redevelopment plan issued by the designated planning 12 authority of the municipality, or (ii) includes land uses 13 that have been approved by the planning commission of the 14 municipality. 15 (3) The redevelopment plan establishes the 16 estimated dates of completion of the redevelopment 17 project and retirement of obligations issued to finance 18 redevelopment project costs. Those dates shall not be 19 later than December 31 of the year in which the payment 20 to the municipal treasurer as provided in subsection (b) 21 of Section 11-74.4-8 of this Act is to be made with 22 respect to ad valorem taxes levied in the twenty-third 23 calendar year after the year in which the ordinance 24 approving the redevelopment project area is adoptedmore25than 23 years from the adoption of the ordinance26approving the redevelopment project areaif the ordinance 27 was adopted on or after January 15, 1981, and not later 28 than December 31 of the year in which the payment to the 29 municipal treasurer as provided in subsection (b) of 30 Section 11-74.4-8 of this Act is to be made with respect 31 to ad valorem taxes levied in the thirty-fifth calendar 32 year after the year in which the ordinance approving the 33 redevelopment project area is adoptednot more than 3534yearsif the ordinance was adopted before January 15, HB0305 Enrolled -34- LRB9101600PTpk 1 1981, or if the ordinance was adopted in April 1984 or 2 July 1985, or if the ordinance was adopted in December 3 1987 and the redevelopment project is located within one 4 mile of Midway Airport, or if the municipality is subject 5 to the Local Government Financial Planning and 6 Supervision Act, or if the ordinance was adopted on 7 December 31, 1986 by a municipality located in Clinton 8 County for which at least $250,000 of tax increment bonds 9 were authorized on June 17, 1997. However, for 10 redevelopment project areas for which bonds were issued 11 before July 29, 1991, or for which contracts were entered 12 into before June 1, 1988, in connection with a 13 redevelopment project in the area within the State Sales 14 Tax Boundary, the estimated dates of completion of the 15 redevelopment project and retirement of obligations to 16 finance redevelopment project costs may be extended by 17 municipal ordinance to December 31, 2013. The extension 18 allowed by this amendatory Act of 1993 shall not apply to 19 real property tax increment allocation financing under 20 Section 11-74.4-8. A municipality may by municipal 21 ordinance amend an existing redevelopment plan to conform 22 to this paragraph (3) as amended by this amendatory Act 23 of the 91st General Assembly, which municipal ordinance 24 may be adopted without further hearing or notice and 25 without complying with the procedures provided in this 26 Act pertaining to an amendment to or the initial approval 27 of a redevelopment plan and project and designation of a 28 redevelopment project area. 29 Those dates, for purposes of real property tax 30 increment allocation financing pursuant to Section 31 11-74.4-8 only, shall be not more than 35 years for 32 redevelopment project areas that were adopted on or after 33 December 16, 1986 and for which at least $8 million worth 34 of municipal bonds were authorized on or after December HB0305 Enrolled -35- LRB9101600PTpk 1 19, 1989 but before January 1, 1990; provided that the 2 municipality elects to extend the life of the 3 redevelopment project area to 35 years by the adoption of 4 an ordinance after at least 14 but not more than 30 days' 5 written notice to the taxing bodies, that would otherwise 6 constitute the joint review board for the redevelopment 7 project area, before the adoption of the ordinance. 8 Those dates, for purposes of real property tax 9 increment allocation financing pursuant to Section 10 11-74.4-8 only, shall be not more than 35 years for 11 redevelopment project areas that were established on or 12 after December 1, 1981 but before January 1, 1982 and for 13 which at least $1,500,000 worth of tax increment revenue 14 bonds were authorized on or after September 30, 1990 but 15 before July 1, 1991; provided that the municipality 16 elects to extend the life of the redevelopment project 17 area to 35 years by the adoption of an ordinance after at 18 least 14 but not more than 30 days' written notice to the 19 taxing bodies, that would otherwise constitute the joint 20 review board for the redevelopment project area, before 21 the adoption of the ordinance. 22 (3.5)(4)The municipality finds, in the case of an 23 industrial park conservation area, also that the 24 municipality is a labor surplus municipality and that the 25 implementation of the redevelopment plan will reduce 26 unemployment, create new jobs and by the provision of new 27 facilities enhance the tax base of the taxing districts 28 that extend into the redevelopment project area. 29 (4)(5)If any incremental revenues are being 30 utilized under Section 8(a)(1) or 8(a)(2) of this Act in 31 redevelopment project areas approved by ordinance after 32 January 1, 1986, the municipality finds: (a) that the 33 redevelopment project area would not reasonably be 34 developed without the use of such incremental revenues, HB0305 Enrolled -36- LRB9101600PTpk 1 and (b) that such incremental revenues will be 2 exclusively utilized for the development of the 3 redevelopment project area. 4 (5) On and after the effective date of this 5 amendatory Act of the 91st General Assembly, if the 6 redevelopment plan will not result in displacement of 7 residents from inhabited units, and the municipality 8 certifies in the plan that displacement will not result 9 from the plan, a housing impact study need not be 10 performed. If, however, the redevelopment plan would 11 result in the displacement of residents from 10 or more 12 inhabited residential units, or if the redevelopment 13 project area contains 75 or more inhabited residential 14 units and no certification is made, then the municipality 15 shall prepare, as part of the separate feasibility report 16 required by subsection (a) of Section 11-74.4-5, a 17 housing impact study. 18 Part I of the housing impact study shall include (i) 19 data as to whether the residential units are single 20 family or multi-family units, (ii) the number and type of 21 rooms within the units, if that information is available, 22 (iii) whether the units are inhabited or uninhabited, as 23 determined not less than 45 days before the date that the 24 ordinance or resolution required by subsection (a) of 25 Section 11-74.4-5 is passed, and (iv) data as to the 26 racial and ethnic composition of the residents in the 27 inhabited residential units. The data requirement as to 28 the racial and ethnic composition of the residents in the 29 inhabited residential units shall be deemed to be fully 30 satisfied by data from the most recent federal census. 31 Part II of the housing impact study shall identify 32 the inhabited residential units in the proposed 33 redevelopment project area that are to be or may be 34 removed. If inhabited residential units are to be HB0305 Enrolled -37- LRB9101600PTpk 1 removed, then the housing impact study shall identify (i) 2 the number and location of those units that will or may 3 be removed, (ii) the municipality's plans for relocation 4 assistance for those residents in the proposed 5 redevelopment project area whose residences are to be 6 removed, (iii) the availability of replacement housing 7 for those residents whose residences are to be removed, 8 and shall identify the type, location, and cost of the 9 housing, and (iv) the type and extent of relocation 10 assistance to be provided. 11 (6) On and after the effective date of this 12 amendatory Act of the 91st General Assembly, the housing 13 impact study required by paragraph (5) shall be 14 incorporated in the redevelopment plan for the 15 redevelopment project area. 16 (7) On and after the effective date of this 17 amendatory Act of the 91st General Assembly, no 18 redevelopment plan shall be adopted, nor an existing plan 19 amended, nor shall residential housing that is occupied 20 by households of low-income and very low-income persons 21 in currently existing redevelopment project areas be 22 removed after the effective date of this amendatory Act 23 of the 91st General Assembly unless the redevelopment 24 plan provides, with respect to inhabited housing units 25 that are to be removed for households of low-income and 26 very low-income persons, affordable housing and 27 relocation assistance not less than that which would be 28 provided under the federal Uniform Relocation Assistance 29 and Real Property Acquisition Policies Act of 1970 and 30 the regulations under that Act, including the eligibility 31 criteria. Affordable housing may be either existing or 32 newly constructed housing. For purposes of this paragraph 33 (7), "low-income households", "very low-income 34 households", and "affordable housing" have the meanings HB0305 Enrolled -38- LRB9101600PTpk 1 set forth in the Illinois Affordable Housing Act. The 2 municipality shall make a good faith effort to ensure 3 that this affordable housing is located in or near the 4 redevelopment project area within the municipality. 5 (8) On and after the effective date of this 6 amendatory Act of the 91st General Assembly, if, after 7 the adoption of the redevelopment plan for the 8 redevelopment project area, any municipality desires to 9 amend its redevelopment plan to remove more inhabited 10 residential units than specified in its original 11 redevelopment plan, that increase in the number of units 12 to be removed shall be deemed to be a change in the 13 nature of the redevelopment plan as to require compliance 14 with the procedures in this Act pertaining to the initial 15 approval of a redevelopment plan. 16 (o) "Redevelopment project" means any public and private 17 development project in furtherance of the objectives of a 18 redevelopment plan. On and after the effective date of this 19 amendatory Act of the 91st General Assembly, no redevelopment 20 plan may be approved or amended that includes the development 21 of vacant land (i) with a golf course and related clubhouse 22 and other facilities or (ii) designated by federal, State, 23 county, or municipal government as public land for outdoor 24 recreational activities or for nature preserves and used for 25 that purpose within 5 years prior to the adoption of the 26 redevelopment plan. For the purpose of this subsection, 27 "recreational activities" is limited to mean camping and 28 hunting. 29 (p) "Redevelopment project area" means an area 30 designated by the municipality, which is not less in the 31 aggregate than 1 1/2 acres and in respect to which the 32 municipality has made a finding that there exist conditions 33 which cause the area to be classified as an industrial park 34 conservation area or a blighted area or a conservation area, HB0305 Enrolled -39- LRB9101600PTpk 1 or a combination of both blighted areas and conservation 2 areas. 3 (q) "Redevelopment project costs" mean and include the 4 sum total of all reasonable or necessary costs incurred or 5 estimated to be incurred, and any such costs incidental to a 6 redevelopment plan and a redevelopment project. Such costs 7 include, without limitation, the following: 8 (1) Costs of studies, surveys, development of 9 plans, and specifications, implementation and 10 administration of the redevelopment plan including but 11 not limited to staff and professional service costs for 12 architectural, engineering, legal,marketing,financial, 13 planning or other services, provided however that no 14 charges for professional services may be based on a 15 percentage of the tax increment collected; except that on 16 and after the effective date of this amendatory Act of 17 the 91st General Assembly, no contracts for professional 18 services, excluding architectural and engineering 19 services, may be entered into if the terms of the 20 contract extend beyond a period of 3 years. In addition, 21 "redevelopment project costs" shall not include lobbying 22 expenses. After consultation with the municipality, each 23 tax increment consultant or advisor to a municipality 24 that plans to designate or has designated a redevelopment 25 project area shall inform the municipality in writing of 26 any contracts that the consultant or advisor has entered 27 into with entities or individuals that have received, or 28 are receiving, payments financed by tax increment 29 revenues produced by the redevelopment project area with 30 respect to which the consultant or advisor has performed, 31 or will be performing, service for the municipality. 32 This requirement shall be satisfied by the consultant or 33 advisor before the commencement of services for the 34 municipality and thereafter whenever any other contracts HB0305 Enrolled -40- LRB9101600PTpk 1 with those individuals or entities are executed by the 2 consultant or advisor; 3 (1.5) After July 1, 1999, annual administrative 4 costs shall not include general overhead or 5 administrative costs of the municipality that would still 6 have been incurred by the municipality if the 7 municipality had not designated a redevelopment project 8 area or approved a redevelopment plan; 9 (1.6) The cost of marketing sites within the 10 redevelopment project area to prospective businesses, 11 developers, and investors; 12 (2) Property assembly costs, including but not 13 limited to acquisition of land and other property, real 14 or personal, or rights or interests therein, demolition 15 of buildings, site preparation, site improvements that 16 serve as an engineered barrier addressing ground level or 17 below ground environmental contamination, including, but 18 not limited to parking lots and other concrete or asphalt 19 barriers, and the clearing and grading of land; 20 (3) Costs of rehabilitation, reconstruction or 21 repair or remodeling of existing public or private 22 buildings,andfixtures, and leasehold improvements; and 23 the cost of replacing an existing public building if 24 pursuant to the implementation of a redevelopment project 25 the existing public building is to be demolished to use 26 the site for private investment or devoted to a different 27 use requiring private investment; 28 (4) Costs of the construction of public works or 29 improvements, except that on and after the effective date 30 of this amendatory Act of the 91st General Assembly, 31 redevelopment project costs shall not include the cost of 32 constructing a new municipal public building principally 33 used to provide offices, storage space, or conference 34 facilities or vehicle storage, maintenance, or repair for HB0305 Enrolled -41- LRB9101600PTpk 1 administrative, public safety, or public works personnel 2 and that is not intended to replace an existing public 3 building as provided under paragraph (3) of subsection 4 (q) of Section 11-74.4-3 unless either (i) the 5 construction of the new municipal building implements a 6 redevelopment project that was included in a 7 redevelopment plan that was adopted by the municipality 8 prior to the effective date of this amendatory Act of the 9 91st General Assembly or (ii) the municipality makes a 10 reasonable determination in the redevelopment plan, 11 supported by information that provides the basis for that 12 determination, that the new municipal building is 13 required to meet an increase in the need for public 14 safety purposes anticipated to result from the 15 implementation of the redevelopment plan; 16 (5) Costs of job training and retraining projects, 17 including the cost of "welfare to work" programs 18 implemented by businesses located within the 19 redevelopment project area; 20 (6) Financing costs, including but not limited to 21 all necessary and incidental expenses related to the 22 issuance of obligations and which may include payment of 23 interest on any obligations issued hereunder including 24 interest accruing during the estimated period of 25 construction of any redevelopment project for which such 26 obligations are issued and for not exceeding 36 months 27 thereafter and including reasonable reserves related 28 thereto; 29 (7) To the extent the municipality by written 30 agreement accepts and approves the same, all or a portion 31 of a taxing district's capital costs resulting from the 32 redevelopment project necessarily incurred or to be 33 incurred within a taxing district in furtherance of the 34 objectives of the redevelopment plan and project. HB0305 Enrolled -42- LRB9101600PTpk 1 (7.5) For redevelopment project areas designated 2 (or redevelopment project areas amended to add or 3 increase the number of tax-increment-financing assisted 4 housing units) on or after the effective date of this 5 amendatory Act of the 91st General Assembly, an 6 elementary, secondary, or unit school district's 7 increased costs attributable to assisted housing units 8 located within the redevelopment project area for which 9 the developer or redeveloper receives financial 10 assistance through an agreement with the municipality or 11 because the municipality incurs the cost of necessary 12 infrastructure improvements within the boundaries of the 13 assisted housing sites necessary for the completion of 14 that housing as authorized by this Act, and which costs 15 shall be paid by the municipality from the Special Tax 16 Allocation Fund when the tax increment revenue is 17 received as a result of the assisted housing units and 18 shall be calculated annually as follows: 19 (A) for foundation districts, excluding any 20 school district in a municipality with a population 21 in excess of 1,000,000, by multiplying the 22 district's increase in attendance resulting from the 23 net increase in new students enrolled in that school 24 district who reside in housing units within the 25 redevelopment project area that have received 26 financial assistance through an agreement with the 27 municipality or because the municipality incurs the 28 cost of necessary infrastructure improvements within 29 the boundaries of the housing sites necessary for 30 the completion of that housing as authorized by this 31 Act since the designation of the redevelopment 32 project area by the most recently available per 33 capita tuition cost as defined in Section 10-20.12a 34 of the School Code less any increase in general HB0305 Enrolled -43- LRB9101600PTpk 1 State aid as defined in Section 18-8.05 of the 2 School Code attributable to these added new students 3 subject to the following annual limitations: 4 (i) for unit school districts with a 5 district average 1995-96 Per Capita Tuition 6 Charge of less than $5,900, no more than 25% of 7 the total amount of property tax increment 8 revenue produced by those housing units that 9 have received tax increment finance assistance 10 under this Act; 11 (ii) for elementary school districts with 12 a district average 1995-96 Per Capita Tuition 13 Charge of less than $5,900, no more than 17% of 14 the total amount of property tax increment 15 revenue produced by those housing units that 16 have received tax increment finance assistance 17 under this Act; and 18 (iii) for secondary school districts with 19 a district average 1995-96 Per Capita Tuition 20 Charge of less than $5,900, no more than 8% of 21 the total amount of property tax increment 22 revenue produced by those housing units that 23 have received tax increment finance assistance 24 under this Act. 25 (B) For alternate method districts, flat grant 26 districts, and foundation districts with a district 27 average 1995-96 Per Capita Tuition Charge equal to 28 or more than $5,900, excluding any school district 29 with a population in excess of 1,000,000, by 30 multiplying the district's increase in attendance 31 resulting from the net increase in new students 32 enrolled in that school district who reside in 33 housing units within the redevelopment project area 34 that have received financial assistance through an HB0305 Enrolled -44- LRB9101600PTpk 1 agreement with the municipality or because the 2 municipality incurs the cost of necessary 3 infrastructure improvements within the boundaries of 4 the housing sites necessary for the completion of 5 that housing as authorized by this Act since the 6 designation of the redevelopment project area by the 7 most recently available per capita tuition cost as 8 defined in Section 10-20.12a of the School Code less 9 any increase in general state aid as defined in 10 Section 18-8.05 of the School Code attributable to 11 these added new students subject to the following 12 annual limitations: 13 (i) for unit school districts, no more 14 than 40% of the total amount of property tax 15 increment revenue produced by those housing 16 units that have received tax increment finance 17 assistance under this Act; 18 (ii) for elementary school districts, no 19 more than 27% of the total amount of property 20 tax increment revenue produced by those housing 21 units that have received tax increment finance 22 assistance under this Act; and 23 (iii) for secondary school districts, no 24 more than 13% of the total amount of property 25 tax increment revenue produced by those housing 26 units that have received tax increment finance 27 assistance under this Act. 28 (C) For any school district in a municipality 29 with a population in excess of 1,000,000, the 30 following restrictions shall apply to the 31 reimbursement of increased costs under this 32 paragraph (7.5): 33 (i) no increased costs shall be 34 reimbursed unless the school district certifies HB0305 Enrolled -45- LRB9101600PTpk 1 that each of the schools affected by the 2 assisted housing project is at or over its 3 student capacity; 4 (ii) the amount reimburseable shall be 5 reduced by the value of any land donated to the 6 school district by the municipality or 7 developer, and by the value of any physical 8 improvements made to the schools by the 9 municipality or developer; and 10 (iii) the amount reimbursed may not 11 affect amounts otherwise obligated by the terms 12 of any bonds, notes, or other funding 13 instruments, or the terms of any redevelopment 14 agreement. 15 Any school district seeking payment under this 16 paragraph (7.5) shall, after July 1 and before 17 September 30 of each year, provide the municipality 18 with reasonable evidence to support its claim for 19 reimbursement before the municipality shall be 20 required to approve or make the payment to the 21 school district. If the school district fails to 22 provide the information during this period in any 23 year, it shall forfeit any claim to reimbursement 24 for that year. School districts may adopt a 25 resolution waiving the right to all or a portion of 26 the reimbursement otherwise required by this 27 paragraph (7.5). By acceptance of this 28 reimbursement the school district waives the right 29 to directly or indirectly set aside, modify, or 30 contest in any manner the establishment of the 31 redevelopment project area or projectsAll or a32portion of a taxing district's capital costs33resulting from the redevelopment project necessarily34incurred or to be incurred in furtherance of theHB0305 Enrolled -46- LRB9101600PTpk 1objectives of the redevelopment plan and project, to2the extent the municipality by written agreement3accepts and approves such costs; 4 (8) Relocation costs to the extent that a 5 municipality determines that relocation costs shall be 6 paid or is required to make payment of relocation costs 7 by federal or State law or in order to satisfy 8 subparagraph (7) of subsection (n); 9 (9) Payment in lieu of taxes; 10 (10) Costs of job training, retraining, advanced 11 vocational education or career education, including but 12 not limited to courses in occupational, semi-technical or 13 technical fields leading directly to employment, incurred 14 by one or more taxing districts, provided that such costs 15 (i) are related to the establishment and maintenance of 16 additional job training, advanced vocational education or 17 career education programs for persons employed or to be 18 employed by employers located in a redevelopment project 19 area; and (ii) when incurred by a taxing district or 20 taxing districts other than the municipality, are set 21 forth in a written agreement by or among the municipality 22 and the taxing district or taxing districts, which 23 agreement describes the program to be undertaken, 24 including but not limited to the number of employees to 25 be trained, a description of the training and services to 26 be provided, the number and type of positions available 27 or to be available, itemized costs of the program and 28 sources of funds to pay for the same, and the term of the 29 agreement. Such costs include, specifically, the payment 30 by community college districts of costs pursuant to 31 Sections 3-37, 3-38, 3-40 and 3-40.1 of the Public 32 Community College Act and by school districts of costs 33 pursuant to Sections 10-22.20a and 10-23.3a of The School 34 Code; HB0305 Enrolled -47- LRB9101600PTpk 1 (11) Interest cost incurred by a redeveloper 2 related to the construction, renovation or rehabilitation 3 of a redevelopment project provided that: 4 (A) such costs are to be paid directly from 5 the special tax allocation fund established pursuant 6 to this Act;and7 (B) such payments in any one year may not 8 exceed 30% of the annual interest costs incurred by 9 the redeveloper with regard to the redevelopment 10 project during that year; 11 (C) if there are not sufficient funds 12 available in the special tax allocation fund to make 13 the payment pursuant to this paragraph (11) then the 14 amounts so due shall accrue and be payable when 15 sufficient funds are available in the special tax 16 allocation fund;and17 (D) the total of such interest payments paid 18 pursuant to this Act may not exceed 30% of the total 19 (i) cost paid or incurred by the redeveloper for the 20 redevelopment project plus (ii) redevelopment 21 project costs excluding any property assembly costs 22 and any relocation costs incurred by a municipality 23 pursuant to this Act; and.24 (E) the cost limits set forth in subparagraphs 25 (B) and (D) of paragraph (11) shall be modified for 26 the financing of rehabilitated or new housing units 27 for low-income households and very low-income 28 households, as defined in Section 3 of the Illinois 29 Affordable Housing Act. The percentage of 75% shall 30 be substituted for 30% in subparagraphs (B) and (D) 31 of paragraph (11). 32 (F) Instead of the eligible costs provided by 33 subparagraphs (B) and (D) of paragraph (11), as 34 modified by this subparagraph, and notwithstanding HB0305 Enrolled -48- LRB9101600PTpk 1 any other provisions of this Act to the contrary, 2 the municipality may pay from tax increment revenues 3 up to 50% of the cost of construction of new housing 4 units to be occupied by low-income households and 5 very low-income households as defined in Section 3 6 of the Illinois Affordable Housing Act. The cost of 7 construction of those units may be derived from the 8 proceeds of bonds issued by the municipality under 9 this Act or other constitutional or statutory 10 authority or from other sources of municipal revenue 11 that may be reimbursed from tax increment revenues 12 or the proceeds of bonds issued to finance the 13 construction of that housing. 14 The eligible costs provided under this 15 subparagraph (F) of paragraph (11) shall be an 16 eligible cost for the construction, renovation, and 17 rehabilitation of all low and very low-income 18 housing units, as defined in Section 3 of the 19 Illinois Affordable Housing Act, within the 20 redevelopment project area. If the low and very 21 low-income units are part of a residential 22 redevelopment project that includes units not 23 affordable to low and very low-income households, 24 only the low and very low-income units shall be 25 eligible for benefits under subparagraph (F) of 26 paragraph (11). The standards for maintaining the 27 occupancy by low-income households and very 28 low-income households, as defined in Section 3 of 29 the Illinois Affordable Housing Act, of those units 30 constructed with eligible costs made available under 31 the provisions of this subparagraph (F) of paragraph 32 (11) shall be established by guidelines adopted by 33 the municipality. The responsibility for annually 34 documenting the initial occupancy of the units by HB0305 Enrolled -49- LRB9101600PTpk 1 low-income households and very low-income 2 households, as defined in Section 3 of the Illinois 3 Affordable Housing Act, shall be that of the then 4 current owner of the property. For ownership units, 5 the guidelines will provide, at a minimum, for a 6 reasonable recapture of funds, or other appropriate 7 methods designed to preserve the original 8 affordability of the ownership units. For rental 9 units, the guidelines will provide, at a minimum, 10 for the affordability of rent to low and very 11 low-income households. As units become available, 12 they shall be rented to income-eligible tenants. 13 The municipality may modify these guidelines from 14 time to time; the guidelines, however, shall be in 15 effect for as long as tax increment revenue is being 16 used to pay for costs associated with the units or 17 for the retirement of bonds issued to finance the 18 units or for the life of the redevelopment project 19 area, whichever is later. 20 (11.5) If the redevelopment project area is located 21 within a municipality with a population of more than 22 100,000, the cost of day care services for children of 23 employees from low-income families working for businesses 24 located within the redevelopment project area and all or 25 a portion of the cost of operation of day care centers 26 established by redevelopment project area businesses to 27 serve employees from low-income families working in 28 businesses located in the redevelopment project area. 29 For the purposes of this paragraph, "low-income families" 30 means families whose annual income does not exceed 80% of 31 the municipal, county, or regional median income, 32 adjusted for family size, as the annual income and 33 municipal, county, or regional median income are 34 determined from time to time by the United States HB0305 Enrolled -50- LRB9101600PTpk 1 Department of Housing and Urban Development. 2 (12) Unless explicitly stated herein the cost of 3 construction of new privately-owned buildings shall not 4 be an eligible redevelopment project cost. 5 (13) After the effective date of this amendatory 6 Act of the 91st General Assembly, none of the 7 redevelopment project costs enumerated in this subsection 8 shall be eligible redevelopment project costs if those 9 costs would provide direct financial support to a retail 10 entity initiating operations in the redevelopment project 11 area while terminating operations at another Illinois 12 location within 10 miles of the redevelopment project 13 area but outside the boundaries of the redevelopment 14 project area municipality. For purposes of this 15 paragraph, termination means a closing of a retail 16 operation that is directly related to the opening of the 17 same operation or like retail entity owned or operated by 18 more than 50% of the original ownership in a 19 redevelopment project area, but it does not mean closing 20 an operation for reasons beyond the control of the retail 21 entity, as documented by the retail entity, subject to a 22 reasonable finding by the municipality that the current 23 location contained inadequate space, had become 24 economically obsolete, or was no longer a viable location 25 for the retailer or serviceman. 26 If a special service area has been established pursuant 27 to the Special Service Area Tax Act or Special Service Area 28 Tax Law, then any tax increment revenues derived from the tax 29 imposed pursuant to the Special Service Area Tax Act or 30 Special Service Area Tax Law may be used within the 31 redevelopment project area for the purposes permitted by that 32 Act or Law as well as the purposes permitted by this Act. 33 (r) "State Sales Tax Boundary" means the redevelopment 34 project area or the amended redevelopment project area HB0305 Enrolled -51- LRB9101600PTpk 1 boundaries which are determined pursuant to subsection (9) of 2 Section 11-74.4-8a of this Act. The Department of Revenue 3 shall certify pursuant to subsection (9) of Section 4 11-74.4-8a the appropriate boundaries eligible for the 5 determination of State Sales Tax Increment. 6 (s) "State Sales Tax Increment" means an amount equal to 7 the increase in the aggregate amount of taxes paid by 8 retailers and servicemen, other than retailers and servicemen 9 subject to the Public Utilities Act, on transactions at 10 places of business located within a State Sales Tax Boundary 11 pursuant to the Retailers' Occupation Tax Act, the Use Tax 12 Act, the Service Use Tax Act, and the Service Occupation Tax 13 Act, except such portion of such increase that is paid into 14 the State and Local Sales Tax Reform Fund, the Local 15 Government Distributive Fund, the Local Government Tax 16 Fund and the County and Mass Transit District Fund, for as 17 long as State participation exists, over and above the 18 Initial Sales Tax Amounts, Adjusted Initial Sales Tax Amounts 19 or the Revised Initial Sales Tax Amounts for such taxes as 20 certified by the Department of Revenue and paid under those 21 Acts by retailers and servicemen on transactions at places of 22 business located within the State Sales Tax Boundary during 23 the base year which shall be the calendar year immediately 24 prior to the year in which the municipality adopted tax 25 increment allocation financing, less 3.0% of such amounts 26 generated under the Retailers' Occupation Tax Act, Use Tax 27 Act and Service Use Tax Act and the Service Occupation Tax 28 Act, which sum shall be appropriated to the Department of 29 Revenue to cover its costs of administering and enforcing 30 this Section. For purposes of computing the aggregate amount 31 of such taxes for base years occurring prior to 1985, the 32 Department of Revenue shall compute the Initial Sales Tax 33 Amount for such taxes and deduct therefrom an amount equal to 34 4% of the aggregate amount of taxes per year for each year HB0305 Enrolled -52- LRB9101600PTpk 1 the base year is prior to 1985, but not to exceed a total 2 deduction of 12%. The amount so determined shall be known as 3 the "Adjusted Initial Sales Tax Amount". For purposes of 4 determining the State Sales Tax Increment the Department of 5 Revenue shall for each period subtract from the tax amounts 6 received from retailers and servicemen on transactions 7 located in the State Sales Tax Boundary, the certified 8 Initial Sales Tax Amounts, Adjusted Initial Sales Tax Amounts 9 or Revised Initial Sales Tax Amounts for the Retailers' 10 Occupation Tax Act, the Use Tax Act, the Service Use Tax Act 11 and the Service Occupation Tax Act. For the State Fiscal 12 Year 1989 this calculation shall be made by utilizing the 13 calendar year 1987 to determine the tax amounts received. For 14 the State Fiscal Year 1990, this calculation shall be made by 15 utilizing the period from January 1, 1988, until September 16 30, 1988, to determine the tax amounts received from 17 retailers and servicemen, which shall have deducted therefrom 18 nine-twelfths of the certified Initial Sales Tax Amounts, 19 Adjusted Initial Sales Tax Amounts or the Revised Initial 20 Sales Tax Amounts as appropriate. For the State Fiscal Year 21 1991, this calculation shall be made by utilizing the period 22 from October 1, 1988, until June 30, 1989, to determine the 23 tax amounts received from retailers and servicemen, which 24 shall have deducted therefrom nine-twelfths of the certified 25 Initial State Sales Tax Amounts, Adjusted Initial Sales Tax 26 Amounts or the Revised Initial Sales Tax Amounts as 27 appropriate. For every State Fiscal Year thereafter, the 28 applicable period shall be the 12 months beginning July 1 and 29 ending on June 30, to determine the tax amounts received 30 which shall have deducted therefrom the certified Initial 31 Sales Tax Amounts, Adjusted Initial Sales Tax Amounts or the 32 Revised Initial Sales Tax Amounts. Municipalities intending 33 to receive a distribution of State Sales Tax Increment must 34 report a list of retailers to the Department of Revenue by HB0305 Enrolled -53- LRB9101600PTpk 1 October 31, 1988 and by July 31, of each year thereafter. 2 (t) "Taxing districts" means counties, townships, cities 3 and incorporated towns and villages, school, road, park, 4 sanitary, mosquito abatement, forest preserve, public health, 5 fire protection, river conservancy, tuberculosis sanitarium 6 and any other municipal corporations or districts with the 7 power to levy taxes. 8 (u) "Taxing districts' capital costs" means those costs 9 of taxing districts for capital improvements that are found 10 by the municipal corporate authorities to be necessary and 11 directly result from the redevelopment project. 12 (v) As used in subsection (a) of Section 11-74.4-3 of 13 this Act, "vacant land" means any parcel or combination of 14 parcels of real property without industrial, commercial, and 15 residential buildings which has not been used for commercial 16 agricultural purposes within 5 years prior to the designation 17 of the redevelopment project area, unless the parcel is 18 included in an industrial park conservation area or the 19 parcel has been subdivided; provided that if the parcel was 20 part of a larger tract that has been divided into 3 or more 21 smaller tracts that were accepted for recording during the 22 period from 1950 to 1990, then the parcel shall be deemed to 23 have been subdivided, and all proceedings and actions of the 24 municipality taken in that connection with respect to any 25 previously approved or designated redevelopment project area 26 or amended redevelopment project area are hereby validated 27 and hereby declared to be legally sufficient for all purposes 28 of this Act. For purposes of this Section and only for land 29 subject to the subdivision requirements of the Plat Act, land 30 is subdivided when the original plat of the proposed 31 Redevelopment Project Area or relevant portion thereof has 32 been properly certified, acknowledged, approved, and recorded 33 or filed in accordance with the Plat Act and a preliminary 34 plat, if any, for any subsequent phases of the proposed HB0305 Enrolled -54- LRB9101600PTpk 1 Redevelopment Project Area or relevant portion thereof has 2 been properly approved and filed in accordance with the 3 applicable ordinance of the municipality. 4 (w) "Annual Total Increment" means the sum of each 5 municipality's annual Net Sales Tax Increment and each 6 municipality's annual Net Utility Tax Increment. The ratio 7 of the Annual Total Increment of each municipality to the 8 Annual Total Increment for all municipalities, as most 9 recently calculated by the Department, shall determine the 10 proportional shares of the Illinois Tax Increment Fund to be 11 distributed to each municipality. 12 (Source: P.A. 89-235, eff. 8-4-95; 89-705, eff. 1-31-97; 13 90-379, eff. 8-14-97.) 14 (65 ILCS 5/11-74.4-4) (from Ch. 24, par. 11-74.4-4) 15 Sec. 11-74.4-4. Municipal powers and duties; 16 redevelopment project areas. A municipality may: 17 (a) The changes made by this amendatory Act of the 91st 18 General Assembly do not apply to a municipality that, (i) 19 before the effective date of this amendatory Act of the 91st 20 General Assembly, has adopted an ordinance or resolution 21 fixing a time and place for a public hearing under Section 22 11-74.4-5 or (ii) before July 1, 1999, has adopted an 23 ordinance or resolution providing for a feasibility study 24 under Section 11-74.4-4.1, but has not yet adopted an 25 ordinance approving redevelopment plans and redevelopment 26 projects or designating redevelopment project areas under 27 this Section, until after that municipality adopts an 28 ordinance approving redevelopment plans and redevelopment 29 projects or designating redevelopment project areas under 30 this Section; thereafter the changes made by this amendatory 31 Act of the 91st General Assembly apply to the same extent 32 that they apply to redevelopment plans and redevelopment 33 projects that were approved and redevelopment projects that HB0305 Enrolled -55- LRB9101600PTpk 1 were designated before the effective date of this amendatory 2 Act of the 91st General Assembly. 3 By ordinance introduced in the governing body of the 4 municipality within 14 to 90 days from the completion of the 5 hearing specified in Section 11-74.4-5 approve redevelopment 6 plans and redevelopment projects, and designate redevelopment 7 project areas pursuant to notice and hearing required by this 8 Act. No redevelopment project area shall be designated 9 unless a plan and project are approved prior to the 10 designation of such area and such area shall include only 11 those contiguous parcels of real property and improvements 12 thereon substantially benefited by the proposed redevelopment 13 project improvements. Upon adoption of the ordinances, the 14 municipality shall forthwith transmit to the county clerk of 15 the county or counties within which the redevelopment project 16 area is located a certified copy of the ordinances, a legal 17 description of the redevelopment project area, a map of the 18 redevelopment project area, identification of the year that 19 the county clerk shall use for determining the total initial 20 equalized assessed value of the redevelopment project area 21 consistent with subsection (a) of Section 11-74.4-9, and a 22 list of the parcel or tax identification number of each 23 parcel of property included in the redevelopment project 24 area. 25 (b) Make and enter into all contracts with property 26 owners, developers, tenants, overlapping taxing bodies, and 27 others necessary or incidental to the implementation and 28 furtherance of its redevelopment plan and project. 29 (c) Within a redevelopment project area, acquire by 30 purchase, donation, lease or eminent domain; own, convey, 31 lease, mortgage or dispose of land and other property, real 32 or personal, or rights or interests therein, and grant or 33 acquire licenses, easements and options with respect thereto, 34 all in the manner and at such price the municipality HB0305 Enrolled -56- LRB9101600PTpk 1 determines is reasonably necessary to achieve the objectives 2 of the redevelopment plan and project. No conveyance, lease, 3 mortgage, disposition of land or other property owned by a 4 municipality, or agreement relating to the development of 5 such municipaltheproperty shall be made except upon the 6 adoption of an ordinance by the corporate authorities of the 7 municipality. Furthermore, no conveyance, lease, mortgage, or 8 other disposition of land owned by a municipality or 9 agreement relating to the development of such municipal 10 property shall be made without making public disclosure of 11 the terms of the disposition and all bids and proposals made 12 in response to the municipality's request. The procedures 13 for obtaining such bids and proposals shall provide 14 reasonable opportunity for any person to submit alternative 15 proposals or bids. 16 (d) Within a redevelopment project area, clear any area 17 by demolition or removal of any existing buildings and 18 structures. 19 (e) Within a redevelopment project area, renovate or 20 rehabilitate or construct any structure or building, as 21 permitted under this Act. 22 (f) Install, repair, construct, reconstruct or relocate 23 streets, utilities and site improvements essential to the 24 preparation of the redevelopment area for use in accordance 25 with a redevelopment plan. 26 (g) Within a redevelopment project area, fix, charge and 27 collect fees, rents and charges for the use of any building 28 or property owned or leased by it or any part thereof, or 29 facility therein. 30 (h) Accept grants, guarantees and donations of property, 31 labor, or other things of value from a public or private 32 source for use within a project redevelopment area. 33 (i) Acquire and construct public facilities within a 34 redevelopment project area, as permitted under this Act. HB0305 Enrolled -57- LRB9101600PTpk 1 (j) Incur project redevelopment costs and reimburse 2 developers who incur redevelopment project costs authorized 3 by a redevelopment agreement; provided, however, that on and 4 after the effective date of this amendatory Act of the 91st 5 General Assembly, no municipality shall incur redevelopment 6 project costs (except for planning costs and any other 7 eligible costs authorized by municipal ordinance or 8 resolution that are subsequently included in the 9 redevelopment plan for the area and are incurred by the 10 municipality after the ordinance or resolution is adopted) 11 that are not consistent with the program for accomplishing 12 the objectives of the redevelopment plan as included in that 13 plan and approved by the municipality until the municipality 14 has amended the redevelopment plan as provided elsewhere in 15 this Act. 16 (k) Create a commission of not less than 5 or more than 17 15 persons to be appointed by the mayor or president of the 18 municipality with the consent of the majority of the 19 governing board of the municipality. Members of a commission 20 appointed after the effective date of this amendatory Act of 21 1987 shall be appointed for initial terms of 1, 2, 3, 4 and 5 22 years, respectively, in such numbers as to provide that the 23 terms of not more than 1/3 of all such members shall expire 24 in any one year. Their successors shall be appointed for a 25 term of 5 years. The commission, subject to approval of the 26 corporate authorities may exercise the powers enumerated in 27 this Section. The commission shall also have the power to 28 hold the public hearings required by this division and make 29 recommendations to the corporate authorities concerning the 30 adoption of redevelopment plans, redevelopment projects and 31 designation of redevelopment project areas. 32 (l) Make payment in lieu of taxes or a portion thereof 33 to taxing districts. If payments in lieu of taxes or a 34 portion thereof are made to taxing districts, those payments HB0305 Enrolled -58- LRB9101600PTpk 1 shall be made to all districts within a project redevelopment 2 area on a basis which is proportional to the current 3 collections of revenue which each taxing district receives 4 from real property in the redevelopment project area. 5 (m) Exercise any and all other powers necessary to 6 effectuate the purposes of this Act. 7 (n) If any member of the corporate authority, a member 8 of a commission established pursuant to Section 11-74.4-4(k) 9 of this Act, or an employee or consultant of the municipality 10 involved in the planning and preparation of a redevelopment 11 plan, or project for a redevelopment project area or proposed 12 redevelopment project area, as defined in Sections 13 11-74.4-3(i) through (k) of this Act, owns or controls an 14 interest, direct or indirect, in any property included in any 15 redevelopment area, or proposed redevelopment area, he or she 16 shall disclose the same in writing to the clerk of the 17 municipality, and shall also so disclose the dates and terms 18 and conditions of any disposition of any such interest, which 19 disclosures shall be acknowledged by the corporate 20 authorities and entered upon the minute books of the 21 corporate authorities. If an individual holds such an 22 interest then that individual shall refrain from any further 23 official involvement in regard to such redevelopment plan, 24 project or area, from voting on any matter pertaining to such 25 redevelopment plan, project or area, or communicating with 26 other members concerning corporate authorities, commission or 27 employees concerning any matter pertaining to said 28 redevelopment plan, project or area. Furthermore, no such 29 member or employee shall acquire of any interest direct, or 30 indirect, in any property in a redevelopment area or proposed 31 redevelopment area after either (a) such individual obtains 32 knowledge of such plan, project or area or (b) first public 33 notice of such plan, project or area pursuant to Section 34 11-74.4-6 of this Division, whichever occurs first. For the HB0305 Enrolled -59- LRB9101600PTpk 1 purposes of this subsection, a property interest acquired in 2 a single parcel of property by a member of the corporate 3 authority, which property is used exclusively as the 4 member's primary residence, shall not be deemed to constitute 5 an interest in any property included in a redevelopment area 6 or proposed redevelopment area that was established before 7 December 31, 1989, but the member must disclose the 8 acquisition to the municipal clerk under the provisions of 9 this subsection. 10 (o) Create a Tax Increment Economic Development Advisory 11 Committee to be appointed by the Mayor or President of the 12 municipality with the consent of the majority of the 13 governing board of the municipality, the members of which 14 Committee shall be appointed for initial terms of 1, 2, 3, 4 15 and 5 years respectively, in such numbers as to provide that 16 the terms of not more than 1/3 of all such members shall 17 expire in any one year. Their successors shall be appointed 18 for a term of 5 years. The Committee shall have none of the 19 powers enumerated in this Section. The Committee shall serve 20 in an advisory capacity only. The Committee may advise the 21 governing Board of the municipality and other municipal 22 officials regarding development issues and opportunities 23 within the redevelopment project area or the area within the 24 State Sales Tax Boundary. The Committee may also promote and 25 publicize development opportunities in the redevelopment 26 project area or the area within the State Sales Tax Boundary. 27 (p) Municipalities may jointly undertake and perform 28 redevelopment plans and projects and utilize the provisions 29 of the Act wherever they have contiguous redevelopment 30 project areas or they determine to adopt tax increment 31 financing with respect to a redevelopment project area which 32 includes contiguous real property within the boundaries of 33 the municipalities, and in doing so, they may, by agreement 34 between municipalities, issue obligations, separately or HB0305 Enrolled -60- LRB9101600PTpk 1 jointly, and expend revenues received under the Act for 2 eligible expenses anywhere within contiguous redevelopment 3 project areas or as otherwise permitted in the Act. 4 (q) Utilize revenues, other than State sales tax 5 increment revenues, received under this Act from one 6 redevelopment project area for eligible costs in another 7 redevelopment project area that is either contiguous to, or 8 is separated only by a public right of way from, the 9 redevelopment project area from which the revenues are 10 received. Utilize tax increment revenues for eligible costs 11 that are received from a redevelopment project area created 12 under the Industrial Jobs Recovery Law that is either 13 contiguous to, or is separated only by a public right of way 14 from, the redevelopment project area created under this Act 15 which initially receives these revenues. Utilize revenues, 16 other than State sales tax increment revenues, by 17 transferring or loaning such revenues to a redevelopment 18 project area created under the Industrial Jobs Recovery Law 19 that is either contiguous to, or separated only by a public 20 right of way from the redevelopment project area that 21 initially produced and received those revenues; and, if the 22 redevelopment project area (i) was established before the 23 effective date of this amendatory Act of the 91st General 24 Assembly and (ii) is located within a municipality with a 25 population of more than 100,000, utilize revenues or proceeds 26 of obligations authorized by Section 11-74.4-7 of this Act, 27 other than use or occupation tax revenues, to pay for any 28 redevelopment project costs as defined by subsection (q) of 29 Section 11-74.4-3 to the extent that the redevelopment 30 project costs involve public property that is either 31 contiguous to, or separated only by a public right of way 32 from, a redevelopment project area whether or not 33 redevelopment project costs or the source of payment for the 34 costs are specifically set forth in the redevelopment plan HB0305 Enrolled -61- LRB9101600PTpk 1 for the redevelopment project area. 2 (r) If no redevelopment project has been initiated in a 3 redevelopment project area within 7 years after the area was 4 designated by ordinance under subsection (a), the 5 municipality shall adopt an ordinance repealing the area's 6 designation as a redevelopment project area; provided, 7 however, that if an area received its designation more than 3 8 years before the effective date of this amendatory Act of 9 1994 and no redevelopment project has been initiated within 4 10 years after the effective date of this amendatory Act of 11 1994, the municipality shall adopt an ordinance repealing its 12 designation as a redevelopment project area. Initiation of a 13 redevelopment project shall be evidenced by either a signed 14 redevelopment agreement or expenditures on eligible 15 redevelopment project costs associated with a redevelopment 16 project. 17 (Source: P.A. 90-258, eff. 7-30-97.) 18 (65 ILCS 5/11-74.4-4.1) 19 Sec. 11-74.4-4.1. Feasibility study. 20 (a) If a municipality by its corporate authorities, or 21 as it may determine by any commission designated under 22 subsection (k) of Section 11-74.4-4, adopts an ordinance or 23 resolution providing for a feasibility study on the 24 designation of an area as a redevelopment project area, a 25 copy of the ordinance or resolution shall immediately be sent 26 to all taxing districts that would be affected by the 27 designation. 28 On and after the effective date of this amendatory Act of 29 the 91st General Assembly, the ordinance or resolution shall 30 include: 31 (1) The boundaries of the area to be studied for 32 possible designation as a redevelopment project area. 33 (2) The purpose or purposes of the proposed HB0305 Enrolled -62- LRB9101600PTpk 1 redevelopment plan and project. 2 (3) A general description of tax increment 3 allocation financing under this Act. 4 (4) The name, phone number, and address of the 5 municipal officer who can be contacted for additional 6 information about the proposed redevelopment project area 7 and who should receive all comments and suggestions 8 regarding the redevelopment of the area to be studied. 9 (b) If one of the purposes of the planned redevelopment 10 project area should reasonably be expected to result in the 11 displacement of residents from 10 or more inhabited 12 residential units, the municipality shall adopt a resolution 13 or ordinance providing for the feasibility study described in 14 subsection (a). The ordinance or resolution shall also 15 require that the feasibility study include the preparation of 16 the housing impact study set forth in paragraph (5) of 17 subsection (n) of Section 11-74.4-3. If the redevelopment 18 plan will not result in displacement of residents from 19 inhabited units, and the municipality certifies in the plan 20 that displacement will not result from the plan, then a 21 resolution or ordinance need not be adopted. 22 (Source: P.A. 88-537.) 23 (65 ILCS 5/11-74.4-4.2 new) 24 Sec. 11-74.4-4.2. Interested parties registry. On and 25 after the effective date of this amendatory Act of the 91st 26 General Assembly, the municipality shall by its corporate 27 authority create an "interested parties" registry for 28 activities related to the redevelopment project area. The 29 municipality shall adopt reasonable registration rules and 30 shall prescribe the necessary registration forms for 31 residents and organizations active within the municipality 32 that seek to be placed on the "interested parties" registry. 33 At a minimum, the rules for registration shall provide for a HB0305 Enrolled -63- LRB9101600PTpk 1 renewable period of registration of not less than 3 years and 2 notification to registered organizations and individuals by 3 mail at the address provided upon registration prior to 4 termination of their registration, unless the municipality 5 decides that it will establish a policy of not terminating 6 interested parties from the registry, in which case no notice 7 will be required. Such rules shall not be used to prohibit 8 or otherwise interfere with the ability of eligible 9 organizations and individuals to register for receipt of 10 information to which they are entitled under this statute, 11 including the information required by: 12 (1) subsection (a) of Section 11-74.4-5; 13 (2) paragraph (9) of subsection (d) of Section 14 11-74.4-5; and 15 (3) subsection (e) of Section 11-74.4-6. 16 (65 ILCS 5/11-74.4-5) (from Ch. 24, par. 11-74.4-5) 17 Sec. 11-74.4-5. (a) The changes made by this amendatory 18 Act of the 91st General Assembly do not apply to a 19 municipality that, (i) before the effective date of this 20 amendatory Act of the 91st General Assembly, has adopted an 21 ordinance or resolution fixing a time and place for a public 22 hearing under this Section or (ii) before July 1, 1999, has 23 adopted an ordinance or resolution providing for a 24 feasibility study under Section 11-74.4-4.1, but has not yet 25 adopted an ordinance approving redevelopment plans and 26 redevelopment projects or designating redevelopment project 27 areas under Section 11-74.4-4, until after that municipality 28 adopts an ordinance approving redevelopment plans and 29 redevelopment projects or designating redevelopment project 30 areas under Section 11-74.4-4; thereafter the changes made by 31 this amendatory Act of the 91st General Assembly apply to the 32 same extent that they apply to redevelopment plans and 33 redevelopment projects that were approved and redevelopment HB0305 Enrolled -64- LRB9101600PTpk 1 projects that were designated before the effective date of 2 this amendatory Act of the 91st General Assembly. 3 Prior to the adoption of an ordinance proposing the 4 designation of a redevelopment project area, or approving a 5 redevelopment plan or redevelopment project, the municipality 6 by its corporate authorities, or as it may determine by any 7 commission designated under subsection (k) of Section 8 11-74.4-4 shall adopt an ordinance or resolution fixing a 9 time and place for public hearing. Prior to the adoption of 10 the ordinance or resolution establishing the time and place 11 for the public hearing, the municipality shall make available 12 for public inspection a redevelopment plan or a separate 13 report that provides in reasonable detail the basis for the 14 eligibility of the redevelopment project areaqualifying as a15blighted area, conservation area, or an industrial park16conservation area. The report along with the name of a 17 person to contact for further information shall be sent 18 within a reasonable time after the adoption of such ordinance 19 or resolution to the affected taxing districts by certified 20 mail. On and after the effective date of this amendatory Act 21 of the 91st General Assembly, the municipality shall print in 22 a newspaper of general circulation within the municipality a 23 notice that interested persons may register with the 24 municipality in order to receive information on the proposed 25 designation of a redevelopment project area or the approval 26 of a redevelopment plan. The notice shall state the place of 27 registration and the operating hours of that place. The 28 municipality shall have adopted reasonable rules to implement 29 this registration process under Section 11-74.4-4.2. Notice 30 of the availability of the redevelopment plan and eligibility 31 report, including how to obtain this information, shall also 32 be sent by mail within a reasonable time after the adoption 33 of the ordinance or resolution to all residents within the 34 postal zip code area or areas contained in whole or in part HB0305 Enrolled -65- LRB9101600PTpk 1 within the proposed redevelopment project area or 2 organizations that operate in the municipality that have 3 registered with the municipality for that information in 4 accordance with the registration guidelines established by 5 the municipality under Section 11-74.4-4.2. 6 At the public hearing any interested person or affected 7 taxing district may file with the municipal clerk written 8 objections to and may be heard orally in respect to any 9 issues embodied in the notice. The municipality shall hear 10 and determine all protests and objections at the hearing and 11 the hearing may be adjourned to another date without further 12 notice other than a motion to be entered upon the minutes 13 fixing the time and place of the subsequent hearing. At the 14 public hearing or at any time prior to the adoption by the 15 municipality of an ordinance approving a redevelopment plan, 16 the municipality may make changes in the redevelopment plan. 17 Changes which (1) add additional parcels of property to the 18 proposed redevelopment project area, (2) substantially affect 19 the general land uses proposed in the redevelopment plan, (3) 20 substantially change the nature of or extend the life of the 21 redevelopment project, or (4) increase the number of low or 22 very low income households to be displaced from the 23 redevelopment project area, provided that measured from the 24 time of creation of the redevelopment project area the total 25 displacement of the households will exceed 10, shall be made 26 only after the municipality gives notice, convenes a joint 27 review board, and conducts a public hearing pursuant to the 28 procedures set forth in this Section and in Section 11-74.4-6 29 of this Act. Changes which do not (1) add additional parcels 30 of property to the proposed redevelopment project area, (2) 31 substantially affect the general land uses proposed in the 32 redevelopment plan, (3) substantially change the nature of or 33 extend the life of the redevelopment project, or (4) increase 34 the number of low or very low income households to be HB0305 Enrolled -66- LRB9101600PTpk 1 displaced from the redevelopment project area, provided that 2 measured from the time of creation of the redevelopment 3 project area the total displacement of the households will 4 exceed 10, may be made without further hearing, provided that 5 the municipality shall give notice of any such changes by 6 mail to each affected taxing district and registrant on the 7 interested parties registry, provided for under Section 8 11-74.4-4.2, and by publication in a newspaper of general 9 circulation within the affected taxing district. Such notice 10 by mail and by publication shall each occur not later than 10 11 days following the adoption by ordinance of such changes. 12Prior to the adoption of an ordinance approving a13redevelopment plan or redevelopment project, or designating a14redevelopment project area, changes may be made in the15redevelopment plan or project or area which changes do not16alter the exterior boundaries, or do not substantially affect17the general land uses established in the plan or18substantially change the nature of the redevelopment project,19without further hearing or notice, provided that notice of20such changes is given by mail to each affected taxing21district and by publication in a newspaper or newspapers of22general circulation within the taxing districts not less than2310 days prior to the adoption of the changes by ordinance.24After the adoption of an ordinance approving a redevelopment25plan or project or designating a redevelopment project area,26no ordinance shall be adopted altering the exterior27boundaries, affecting the general land uses established28pursuant to the plan or changing the nature of the29redevelopment project without complying with the procedures30provided in this division pertaining to the initial approval31of a redevelopment plan project and designation of32redevelopment project area.Hearings with regard to a 33 redevelopment project area, project or plan may be held 34 simultaneously. HB0305 Enrolled -67- LRB9101600PTpk 1 (b) Prior to holding a public hearing to approve or 2 amend a redevelopment plan or to designate or add additional 3 parcels of property to aAfter the effective date of this4amendatory Act of 1989, prior to the adoption of an ordinance5proposing the designation of a redevelopment project area or6amending the boundaries of an existingredevelopment project 7 area, the municipality shall convene a joint review boardto8consider the proposal. The board shall consist of a 9 representative selected by each community college district, 10 local elementary school district and high school district or 11 each local community unit school district, park district, 12 library district, township, fire protection district, and 13 county that will have thehasauthority to directly levy 14 taxes on the property within the proposed redevelopment 15 project area at the time that the proposed redevelopment 16 project area is approved, a representative selected by the 17 municipality and a public member. The public member shall 18 first be selected and then the board's chairperson shall be 19 selected by a majority of theotherboard members present and 20 voting. 21 For redevelopment project areas with redevelopment plans 22 or proposed redevelopment plans that would result in the 23 displacement of residents from 10 or more inhabited 24 residential units or that include 75 or more inhabited 25 residential units, the public member shall be a person who 26 resides in the redevelopment project area. If, as determined 27 by the housing impact study provided for in paragraph (5) of 28 subsection (n) of Section 11-74.4-3, or if no housing impact 29 study is required then based on other reasonable data, the 30 majority of residential units are occupied by very low, low, 31 or moderate income households, as defined in Section 3 of the 32 Illinois Affordable Housing Act, the public member shall be a 33 person who resides in very low, low, or moderate income 34 housing within the redevelopment project area. HB0305 Enrolled -68- LRB9101600PTpk 1 Municipalities with fewer than 15,000 residents shall not be 2 required to select a person who lives in very low, low, or 3 moderate income housing within the redevelopment project 4 area, provided that the redevelopment plan or project will 5 not result in displacement of residents from 10 or more 6 inhabited units, and the municipality so certifies in the 7 plan. If no person satisfying these requirements is 8 available or if no qualified person will serve as the public 9 member, then the joint review board is relieved of this 10 paragraph's selection requirements for the public member. 11 Within 90 days of the effective date of this amendatory 12 Act of the 91st General Assembly, each municipality that 13 designated a redevelopment project area for which it was not 14 required to convene a joint review board under this Section 15 shallMunicipalities that have designated redevelopment16project areas prior to the effective date of this amendatory17Act of 1989 mayconvene a joint review board to perform the 18 duties specified under paragraph (e) of this Section. 19 All board members shall be appointed and the first board 20 meeting heldwithin 14 daysfollowing at least 14 days after 21thenotice by the municipality to all the taxing districts as 22 required by Section 11-74.4-6(c)11-74.4-6c. Such notice 23 shall also advise the taxing bodies represented on the joint 24 review board of the time and place of the first meeting of 25 the board. Additional meetings of the board shall be held 26 upon the call of any member. The municipality seeking 27 designation of the redevelopment project area shallmay28 provide administrative support to the board. 29 The board shall review (i) the public record, planning 30 documents and proposed ordinances approving the redevelopment 31 plan and project and (ii) proposed amendments to the 32 redevelopment plan or additions of parcels of property to the 33 redevelopment project area to be adopted by the municipality. 34 As part of its deliberations, the board may hold additional HB0305 Enrolled -69- LRB9101600PTpk 1 hearings on the proposal. A board's recommendation shall be 2 an advisory, non-binding recommendation. The recommendation 3 shall be adopted by a majority of those members present and 4 voting. The recommendations shall bewhich recommendation5shall be adopted by a majority vote of the board and6 submitted to the municipality within 30 days after convening 7 of the board. Failure of the board to submit its report on a 8 timely basis shall not be cause to delay the public hearing 9 or any other step in the process of designatingestablishing10 or amending the redevelopment project area but shall be 11 deemed to constitute approval by the joint review board of 12 the matters before it. 13 The board shall base its recommendation to approve or 14 disapprove the redevelopment plan and the designation of the 15 redevelopment project area or the amendment of the 16 redevelopment plan or addition of parcels of property to the 17 redevelopment project areadecision to approve or deny the18proposalon the basis of the redevelopment project area and 19 redevelopment plan satisfying the plan requirements, the 20 eligibility criteria defined in Section 11-74.4-3, and the 21 objectives of the Acteligibility criteria defined in Section2211-74.4-3. 23 The board shall issue a written report describing why the 24 redevelopment plan and project area or the amendment thereof 25 meets or fails to meet one or more of the objectives of this 26 Act and both the plan requirements and the eligibility 27 criteria defined in Section 11-74.4-3. In the event the Board 28 does not file a report it shall be presumed that these taxing 29 bodies find the redevelopment project area and redevelopment 30 plantosatisfy the objectives of this Act and the plan 31 requirements and eligibility criteria. 32 If the board recommends rejection of the matters before 33 it, the municipality will have 30 days within which to 34 resubmit the plan or amendment. During this period, the HB0305 Enrolled -70- LRB9101600PTpk 1 municipality will meet and confer with the board and attempt 2 to resolve those issues set forth in the board's written 3 report that lead to the rejection of the plan or amendment. 4 In the event that the municipality and the board are unable 5 to resolve these differences, or in the event that the 6 resubmitted plan or amendment is rejected by the board, the 7 municipality may proceed with the plan or amendment, but only 8 upon a three-fifths vote of the corporate authority 9 responsible for approval of the plan or amendment, excluding 10 positions of members that are vacant and those members that 11 are ineligible to vote because of conflicts of interest. 12 (c) After a municipality has by ordinance approved a 13 redevelopment plan and designated a redevelopment project 14 area, the plan may be amended and additional properties may 15 be added to the redevelopment project area only as herein 16 provided. Amendments which (1) add additional parcels of 17 property to the proposed redevelopment project area, (2) 18 substantially affect the general land uses proposed in the 19 redevelopment plan, (3) substantially change the nature of 20 the redevelopment project, (4) increase the total estimated 21 redevelopment project costs set out in the redevelopment plan 22 by more than 5% after adjustment for inflation from the date 23 the plan was adopted, (5) add additional redevelopment 24 project costs to the itemized list of redevelopment project 25 costs set out in the redevelopment plan, or (6) increase the 26 number of low or very low income households to be displaced 27 from the redevelopment project area, provided that measured 28 from the time of creation of the redevelopment project area 29 the total displacement of the households will exceed 10, 30 shall be made only after the municipality gives notice, 31 convenes a joint review board, and conducts a public hearing 32 pursuant to the procedures set forth in this Section and in 33 Section 11-74.4-6 of this Act. Changes which do not (1) add 34 additional parcels of property to the proposed redevelopment HB0305 Enrolled -71- LRB9101600PTpk 1 project area, (2) substantially affect the general land uses 2 proposed in the redevelopment plan, (3) substantially change 3 the nature of the redevelopment project, (4) increase the 4 total estimated redevelopment project cost set out in the 5 redevelopment plan by more than 5% after adjustment for 6 inflation from the date the plan was adopted, (5) add 7 additional redevelopment project costs to the itemized list 8 of redevelopment project costs set out in the redevelopment 9 plan, or (6) increase the number of low or very low income 10 households to be displaced from the redevelopment project 11 area, provided that measured from the time of creation of the 12 redevelopment project area the total displacement of the 13 households will exceed 10, may be made without further 14 hearing, provided that the municipality shall give notice of 15 any such changes by mail to each affected taxing district and 16 registrant on the interested parties registry, provided for 17 under Section 11-74.4-4.2, and by publication in a newspaper 18 of general circulation within the affected taxing district. 19 Such notice by mail and by publication shall each occur not 20 later than 10 days following the adoption by ordinance of 21 such changes.After the adoption of an ordinance approving a22redevelopment plan or project or designating a redevelopment23project area, no ordinance shall be adopted altering the24exterior boundaries, affecting the general land uses25established pursuant to the plan or changing the nature of26the redevelopment project without complying with the27procedures provided in this division pertaining to the28initial approval of a redevelopment plan project and29designation of a redevelopment project area.30 (d) After the effective date of this amendatory Act of 31 the 91st General Assembly1994 and adoption of an ordinance32approving a redevelopment plan or project, a municipality 33with a population of less than 1,000,000shall submit the 34 following information for each redevelopment project area (i) HB0305 Enrolled -72- LRB9101600PTpk 1 to the State Comptroller under Section 8-8-3.5 of the 2 Illinois Municipal Code and (ii) to all taxing districts 3 overlapping the redevelopment project areawithin 90 days4after the close of each municipal fiscal year notify all5taxing districts represented on the joint review board in6which the redevelopment project area is located that any or7all of the following information will be made availableno 8 later than 180 days after the close of each municipal fiscal 9 year or as soon thereafter as the audited financial 10 statements become available and, in any case, shall be 11 submitted before the annual meeting of the Joint Review Board 12 to each of the taxing districts that overlap the 13 redevelopment project areaupon receipt of a written request14of a majority of such taxing districts for such information: 15 (1) Any amendments to the redevelopment plan, the 16 redevelopment project area, or the State Sales Tax 17 Boundary. 18 (1.5) A list of the redevelopment project areas 19 administered by the municipality and, if applicable, the 20 date each redevelopment project area was designated or 21 terminated by the municipality. 22 (2) Audited financial statements of the special tax 23 allocation fund once a cumulative total of $100,000 has 24 been deposited in the fund. 25 (3) Certification of the Chief Executive Officer of 26 the municipality that the municipality has complied with 27 all of the requirements of this Act during the preceding 28 fiscal year. 29 (4) An opinion of legal counsel that the 30 municipality is in compliance with this Act. 31 (5) An analysis of the special tax allocation fund 32 which sets forth: 33 (A) the balance in the special tax allocation 34 fund at the beginning of the fiscal year; HB0305 Enrolled -73- LRB9101600PTpk 1 (B) all amounts deposited in the special tax 2 allocation fund by source; 3 (C) an itemized list of all expenditures from 4 the special tax allocation fund by category of 5 permissible redevelopment project cost; and 6 (D) the balance in the special tax allocation 7 fund at the end of the fiscal year including a 8 breakdown of that balance by source and a breakdown 9 of that balance identifying any portion of the 10 balance that is required, pledged, earmarked, or 11 otherwise designated for payment of or securing of 12 obligations and anticipated redevelopment project 13 costs. Any portion of such ending balance that has 14 not been identified or is not identified as being 15 required, pledged, earmarked, or otherwise 16 designated for payment of or securing of obligations 17 or anticipated redevelopment projects costs shall be 18 designated as surplusif it is not required for19anticipated redevelopment project costs or to pay20debt service on bonds issued to finance21redevelopment project costs,as set forth in Section 22 11-74.4-7 hereof. 23 (6) A description of all property purchased by the 24 municipality within the redevelopment project area 25 including: 26 (A) Street address. 27 (B) Approximate size or description of 28 property. 29 (C) Purchase price. 30 (D) Seller of property. 31 (7) A statement setting forth all activities 32 undertaken in furtherance of the objectives of the 33 redevelopment plan, including: 34 (A) Any project implemented in the preceding HB0305 Enrolled -74- LRB9101600PTpk 1 fiscal year. 2 (B) A description of the redevelopment 3 activities undertaken. 4 (C) A description of any agreements entered 5 into by the municipality with regard to the 6 disposition or redevelopment of any property within 7 the redevelopment project area or the area within 8 the State Sales Tax Boundary. 9 (D) Additional information on the use of all 10 funds received under this Division and steps taken 11 by the municipality to achieve the objectives of the 12 redevelopment plan. 13 (E) Information regarding contracts that the 14 municipality's tax increment advisors or consultants 15 have entered into with entities or persons that have 16 received, or are receiving, payments financed by tax 17 increment revenues produced by the same 18 redevelopment project area. 19 (F) Any reports submitted to the municipality 20 by the joint review board. 21 (G) A review of public and, to the extent 22 possible, private investment actually undertaken to 23 date after the effective date of this amendatory Act 24 of the 91st General Assembly and estimated to be 25 undertaken during the following year. This review 26 shall, on a project-by-project basis, set forth the 27 estimated amounts of public and private investment 28 incurred after the effective date of this amendatory 29 Act of the 91st General Assembly and provide the 30 ratio of private investment to public investment to 31 the date of the report and as estimated to the 32 completion of the redevelopment project. 33 (8) With regard to any obligations issued by the 34 municipality: HB0305 Enrolled -75- LRB9101600PTpk 1 (A) copies of any official statements; and 2 (B) an analysis prepared by financial advisor 3 or underwriter setting forth: (i) nature and term of 4 obligation; and (ii) projected debt service 5 including required reserves and debt coverage. 6 (9) For special tax allocation funds that have 7 experienced cumulative deposits of incremental tax 8 revenues of $100,000 or more, a certified audit report 9 reviewing compliance with this Act performed by an 10 independent public accountant certified and licensed by 11 the authority of the State of Illinois. The financial 12 portion of the audit must be conducted in accordance with 13 Standards for Audits of Governmental Organizations, 14 Programs, Activities, and Functions adopted by the 15 Comptroller General of the United States (1981), as 16 amended. The audit report shall contain a letter from 17 the independent certified public accountant indicating 18 compliance or noncompliance with the requirements of 19 subsection (q) of Section 11-74.4-3. For redevelopment 20 plans or projects that would result in the displacement 21 of residents from 10 or more inhabited residential units 22 or that contain 75 or more inhabited residential units, 23 notice of the availability of the information, including 24 how to obtain the report, required in this subsection 25 shall also be sent by mail to all residents or 26 organizations that operate in the municipality that 27 register with the municipality for that information 28 according to registration procedures adopted under 29 Section 11-74.4-4.2. All municipalities are subject to 30 this provision. 31 (d-1) Prior to the effective date of this amendatory Act 32 of the 91st General Assembly, municipalities with populations 33 of over 1,000,000 shall, after adoption of a redevelopment 34 plan or project, make available upon request to any taxing HB0305 Enrolled -76- LRB9101600PTpk 1 district in which the redevelopment project area is located 2 the following information: 3 (1) Any amendments to the redevelopment plan, the 4 redevelopment project area, or the State Sales Tax 5 Boundary; and 6 (2) In connection with any redevelopment project 7 area for which the municipality has outstanding 8 obligations issued to provide for redevelopment project 9 costs pursuant to Section 11-74.4-7, audited financial 10 statements of the special tax allocation fund. 11 (e)One year, two years and at the end of every12subsequent three year period thereafter,The joint review 13 board shall meet annually 180 days after the close of the 14 municipal fiscal year or as soon as the redevelopment project 15 audit for that fiscal year becomes available to review the 16 effectiveness and status of the redevelopment project area up 17 to that date. 18 (f) (Blank).If the redevelopment project area has been19in existence for at least 5 years and the municipality20proposes a redevelopment project with a total redevelopment21project cost exceeding 35% of the total amount budgeted in22the redevelopment plan for all redevelopment projects, the23municipality, in addition to any other requirements imposed24by this Act, shall convene a meeting of the joint review25board as provided in this Act for the purpose of reviewing26the redevelopment project.27 (g) In the event that a municipality has held a public 28 hearing under this Section prior to March 14, 1994 (the 29 effective date of Public Act 88-537), the requirements 30 imposed by Public Act 88-537 relating to the method of fixing 31 the time and place for public hearing, the materials and 32 information required to be made available for public 33 inspection, and the information required to be sent after 34 adoption of an ordinance or resolution fixing a time and HB0305 Enrolled -77- LRB9101600PTpk 1 place for public hearing shall not be applicable. 2 (Source: P.A. 88-537; 88-688, eff. 1-24-95; revised 3 10-31-98.) 4 (65 ILCS 5/11-74.4-6) (from Ch. 24, par. 11-74.4-6) 5 Sec. 11-74.4-6. (a) Except as provided herein, notice of 6 the public hearing shall be given by publication and mailing. 7 Notice by publication shall be given by publication at least 8 twice, the first publication to be not more than 30 nor less 9 than 10 days prior to the hearing in a newspaper of general 10 circulation within the taxing districts having property in 11 the proposed redevelopment project area. Notice by mailing 12 shall be given by depositing such notice in the United States 13 mails by certified mail addressed to the person or persons 14 in whose name the general taxes for the last preceding year 15 were paid on each lot, block, tract, or parcel of land lying 16 within the project redevelopment area. Said notice shall be 17 mailed not less than 10 days prior to the date set for the 18 public hearing. In the event taxes for the last preceding 19 year were not paid, the notice shall also be sent to the 20 persons last listed on the tax rolls within the preceding 3 21 years as the owners of such property. For redevelopment 22 project areas with redevelopment plans or proposed 23 redevelopment plans that would require removal of 10 or more 24 inhabited residential units or that contain 75 or more 25 inhabited residential units, the municipality shall make a 26 good faith effort to notify by mail all residents of the 27 redevelopment project area. At a minimum, the municipality 28 shall mail a notice to each residential address located 29 within the redevelopment project area. The municipality 30 shall endeavor to ensure that all such notices are 31 effectively communicated and shall include (in addition to 32 notice in English) notice in the predominant language other 33 than English when appropriate. HB0305 Enrolled -78- LRB9101600PTpk 1 (b) The notices issued pursuant to this Section shall 2 include the following: 3 (1) The time and place of public hearing; 4 (2) The boundaries of the proposed redevelopment 5 project area by legal description and by street location 6 where possible; 7 (3) A notification that all interested persons will 8 be given an opportunity to be heard at the public 9 hearing; 10 (4) A description of the redevelopment plan or 11 redevelopment project for the proposed redevelopment 12 project area if a plan or project is the subject matter 13 of the hearing. 14 (5) Such other matters as the municipality may deem 15 appropriate. 16 (c) Not less than 45 days prior to the date set for 17 hearing, the municipality shall give notice by mail as 18 provided in subsection (a) to all taxing districts of which 19 taxable property is included in the redevelopment project 20 area, project or plan and to the Department of Commerce and 21 Community Affairs, and in addition to the other requirements 22 under subsection (b) the notice shall include an invitation 23 to the Department of Commerce and Community Affairs and each 24 taxing district to submit comments to the municipality 25 concerning the subject matter of the hearing prior to the 26 date of hearing. 27 (d) In the event that any municipality has by ordinance 28 adopted tax increment financing prior to 1987, and has 29 complied with the notice requirements of this Section, except 30 that the notice has not included the requirements of 31 subsection (b), paragraphs (2), (3) and (4), and within 90 32 days of the effective date of this amendatory Act of 1991, 33 that municipality passes an ordinance which contains findings 34 that: (1) all taxing districts prior to the time of the HB0305 Enrolled -79- LRB9101600PTpk 1 hearing required by Section 11-74.4-5 were furnished with 2 copies of a map incorporated into the redevelopment plan and 3 project substantially showing the legal boundaries of the 4 redevelopment project area; (2) the redevelopment plan and 5 project, or a draft thereof, contained a map substantially 6 showing the legal boundaries of the redevelopment project 7 area and was available to the public at the time of the 8 hearing; and (3) since the adoption of any form of tax 9 increment financing authorized by this Act, and prior to June 10 1, 1991, no objection or challenge has been made in writing 11 to the municipality in respect to the notices required by 12 this Section, then the municipality shall be deemed to have 13 met the notice requirements of this Act and all actions of 14 the municipality taken in connection with such notices as 15 were given are hereby validated and hereby declared to be 16 legally sufficient for all purposes of this Act. 17 (e) If a municipality desires to propose a redevelopment 18 plan for a redevelopment project area that would result in 19 the displacement of residents from 10 or more inhabited 20 residential units or for a redevelopment project area that 21 contains 75 or more inhabited residential units, the 22 municipality shall hold a public meeting before the mailing 23 of the notices of public hearing as provided in subsection 24 (c) of this Section. The meeting shall be for the purpose of 25 enabling the municipality to advise the public, taxing 26 districts having real property in the redevelopment project 27 area, taxpayers who own property in the proposed 28 redevelopment project area, and residents in the area as to 29 the municipality's possible intent to prepare a redevelopment 30 plan and designate a redevelopment project area and to 31 receive public comment. The time and place for the meeting 32 shall be set by the head of the municipality's Department of 33 Planning or other department official designated by the mayor 34 or city or village manager without the necessity of a HB0305 Enrolled -80- LRB9101600PTpk 1 resolution or ordinance of the municipality and may be held 2 by a member of the staff of the Department of Planning of the 3 municipality or by any other person, body, or commission 4 designated by the corporate authorities. The meeting shall 5 be held at least 14 business days before the mailing of the 6 notice of public hearing provided for in subsection (c) of 7 this Section. 8 Notice of the public meeting shall be given by mail. 9 Notice by mail shall be not less than 15 days before the date 10 of the meeting and shall be sent by certified mail to all 11 taxing districts having real property in the proposed 12 redevelopment project area and to all entities requesting 13 that information that have registered with a person and 14 department designated by the municipality in accordance with 15 registration guidelines established by the municipality 16 pursuant to Section 11-74.4-4.2. The municipality shall make 17 a good faith effort to notify all residents and the last 18 known persons who paid property taxes on real estate in a 19 redevelopment project area. This requirement shall be deemed 20 to be satisfied if the municipality mails, by regular mail, a 21 notice to each residential address and the person or persons 22 in whose name property taxes were paid on real property for 23 the last preceding year located within the redevelopment 24 project area. Notice shall be in languages other than 25 English when appropriate. The notices issued under this 26 subsection shall include the following: 27 (1) The time and place of the meeting. 28 (2) The boundaries of the area to be studied for 29 possible designation as a redevelopment project area by 30 street and location. 31 (3) The purpose or purposes of establishing a 32 redevelopment project area. 33 (4) A brief description of tax increment financing. 34 (5) The name, telephone number, and address of the HB0305 Enrolled -81- LRB9101600PTpk 1 person who can be contacted for additional information 2 about the proposed redevelopment project area and who 3 should receive all comments and suggestions regarding 4 the development of the area to be studied. 5 (6) Notification that all interested persons will 6 be given an opportunity to be heard at the public 7 meeting. 8 (7) Such other matters as the municipality deems 9 appropriate. 10 At the public meeting, any interested person or 11 representative of an affected taxing district may be heard 12 orally and may file, with the person conducting the meeting, 13 statements that pertain to the subject matter of the meeting. 14 15 (Source: P.A. 86-142; 87-813.) 16 (65 ILCS 5/11-74.4-7) (from Ch. 24, par. 11-74.4-7) 17 Sec. 11-74.4-7. Obligations secured by the special tax 18 allocation fund set forth in Section 11-74.4-8 for the 19 redevelopment project area may be issued to provide for 20 redevelopment project costs. Such obligations, when so 21 issued, shall be retired in the manner provided in the 22 ordinance authorizing the issuance of such obligations by the 23 receipts of taxes levied as specified in Section 11-74.4-9 24 against the taxable property included in the area, by 25 revenues as specified by Section 11-74.4-8a and other revenue 26 designated by the municipality. A municipality may in the 27 ordinance pledge all or any part of the funds in and to be 28 deposited in the special tax allocation fund created pursuant 29 to Section 11-74.4-8 to the payment of the redevelopment 30 project costs and obligations. Any pledge of funds in the 31 special tax allocation fund shall provide for distribution to 32 the taxing districts and to the Illinois Department of 33 Revenue of moneys not required, pledged, earmarked, or HB0305 Enrolled -82- LRB9101600PTpk 1 otherwise designated for payment and securing of the 2 obligations and anticipated redevelopment project costs and 3 such excess funds shall be calculated annually and deemed to 4 be "surplus" funds. In the event a municipality only applies 5 or pledges a portion of the funds in the special tax 6 allocation fund for the payment or securing of anticipated 7 redevelopment project costs or of obligations, any such funds 8 remaining in the special tax allocation fund after complying 9 with the requirements of the application or pledge, shall 10 also be calculated annually and deemed "surplus" funds. All 11 surplus funds in the special tax allocation fund, subject to12the provisions of (6.1) of Section 11-74.4-8a,shall be 13 distributed annually within 180 days after the close of the 14 municipality's fiscal year by being paid by the municipal 15 treasurer to the County Collector, to the Department of 16 Revenue and to the municipality in direct proportion to the 17 tax incremental revenue received as a result of an increase 18 in the equalized assessed value of property in the 19 redevelopment project area, tax incremental revenue received 20 from the State and tax incremental revenue received from the 21 municipality, but not to exceed as to each such source the 22 total incremental revenue received from that source.Except23that any special tax allocation fund subject to provision in24(6.1) of Section 11-74.4-8a shall comply with the provisions25in that Section.The County Collector shall thereafter make 26 distribution to the respective taxing districts in the same 27 manner and proportion as the most recent distribution by the 28 county collector to the affected districts of real property 29 taxes from real property in the redevelopment project area. 30 Without limiting the foregoing in this Section, the 31 municipality may in addition to obligations secured by the 32 special tax allocation fund pledge for a period not greater 33 than the term of the obligations towards payment of such 34 obligations any part or any combination of the following: (a) HB0305 Enrolled -83- LRB9101600PTpk 1 net revenues of all or part of any redevelopment project; (b) 2 taxes levied and collected on any or all property in the 3 municipality; (c) the full faith and credit of the 4 municipality; (d) a mortgage on part or all of the 5 redevelopment project; or (e) any other taxes or anticipated 6 receipts that the municipality may lawfully pledge. 7 Such obligations may be issued in one or more series 8 bearing interest at such rate or rates as the corporate 9 authorities of the municipality shall determine by ordinance. 10 Such obligations shall bear such date or dates, mature at 11 such time or times not exceeding 20 years from their 12 respective dates, be in such denomination, carry such 13 registration privileges, be executed in such manner, be 14 payable in such medium of payment at such place or places, 15 contain such covenants, terms and conditions, and be subject 16 to redemption as such ordinance shall provide. Obligations 17 issued pursuant to this Act may be sold at public or private 18 sale at such price as shall be determined by the corporate 19 authorities of the municipalities. No referendum approval of 20 the electors shall be required as a condition to the issuance 21 of obligations pursuant to this Division except as provided 22 in this Section. 23 In the event the municipality authorizes issuance of 24 obligations pursuant to the authority of this Division 25 secured by the full faith and credit of the municipality, 26 which obligations are other than obligations which may be 27 issued under home rule powers provided by Article VII, 28 Section 6 of the Illinois Constitution, or pledges taxes 29 pursuant to (b) or (c) of the second paragraph of this 30 section, the ordinance authorizing the issuance of such 31 obligations or pledging such taxes shall be published within 32 10 days after such ordinance has been passed in one or more 33 newspapers, with general circulation within such 34 municipality. The publication of the ordinance shall be HB0305 Enrolled -84- LRB9101600PTpk 1 accompanied by a notice of (1) the specific number of voters 2 required to sign a petition requesting the question of the 3 issuance of such obligations or pledging taxes to be 4 submitted to the electors; (2) the time in which such 5 petition must be filed; and (3) the date of the prospective 6 referendum. The municipal clerk shall provide a petition 7 form to any individual requesting one. 8 If no petition is filed with the municipal clerk, as 9 hereinafter provided in this Section, within 30 days after 10 the publication of the ordinance, the ordinance shall be in 11 effect. But, if within that 30 day period a petition is 12 filed with the municipal clerk, signed by electors in the 13 municipality numbering 10% or more of the number of 14 registered voters in the municipality, asking that the 15 question of issuing obligations using full faith and credit 16 of the municipality as security for the cost of paying for 17 redevelopment project costs, or of pledging taxes for the 18 payment of such obligations, or both, be submitted to the 19 electors of the municipality, the corporate authorities of 20 the municipality shall call a special election in the manner 21 provided by law to vote upon that question, or, if a general, 22 State or municipal election is to be held within a period of 23 not less than 30 or more than 90 days from the date such 24 petition is filed, shall submit the question at the next 25 general, State or municipal election. If it appears upon the 26 canvass of the election by the corporate authorities that a 27 majority of electors voting upon the question voted in favor 28 thereof, the ordinance shall be in effect, but if a majority 29 of the electors voting upon the question are not in favor 30 thereof, the ordinance shall not take effect. 31 The ordinance authorizing the obligations may provide 32 that the obligations shall contain a recital that they are 33 issued pursuant to this Division, which recital shall be 34 conclusive evidence of their validity and of the regularity HB0305 Enrolled -85- LRB9101600PTpk 1 of their issuance. 2 In the event the municipality authorizes issuance of 3 obligations pursuant to this Section secured by the full 4 faith and credit of the municipality, the ordinance 5 authorizing the obligations may provide for the levy and 6 collection of a direct annual tax upon all taxable property 7 within the municipality sufficient to pay the principal 8 thereof and interest thereon as it matures, which levy may be 9 in addition to and exclusive of the maximum of all other 10 taxes authorized to be levied by the municipality, which 11 levy, however, shall be abated to the extent that monies from 12 other sources are available for payment of the obligations 13 and the municipality certifies the amount of said monies 14 available to the county clerk. 15 A certified copy of such ordinance shall be filed with 16 the county clerk of each county in which any portion of the 17 municipality is situated, and shall constitute the authority 18 for the extension and collection of the taxes to be deposited 19 in the special tax allocation fund. 20 A municipality may also issue its obligations to refund 21 in whole or in part, obligations theretofore issued by such 22 municipality under the authority of this Act, whether at or 23 prior to maturity, provided however, that the last maturity 24 of the refunding obligations shall not be expressed to mature 25 later than December 31 of the year in which the payment to 26 the municipal treasurer as provided in subsection (b) of 27 Section 11-74.4-8 of this Act is to be made with respect to 28 ad valorem taxes levied in the twenty-third calendar year 29 after the year in which the ordinance approving the 30 redevelopment project area is adopted23 years from the date31of the ordinance approving the redevelopment project areaif 32 the ordinance was adopted on or after January 15, 1981, and 33 not later than December 31 of the year in which the payment 34 to the municipal treasurer as provided in subsection (b) of HB0305 Enrolled -86- LRB9101600PTpk 1 Section 11-74.4-8 of this Act is to be made with respect to 2 ad valorem taxes levied in the thirty-fifth calendar year 3 after the year in which the ordinance approving the 4 redevelopment project area is adoptedmore than 35 yearsif 5 the ordinance was adopted before January 15, 1981, or if the 6 ordinance was adopted in April, 1984, July, 1985, or if the 7 ordinance was adopted in December, 1987 and the redevelopment 8 project is located within one mile of Midway Airport, or if 9 the municipality is subject to the Local Government Financial 10 Planning and Supervision Act, or if the ordinance was adopted 11 on December 31, 1986 by a municipality located in Clinton 12 County for which at least $250,000 of tax increment bonds 13 were authorized on June 17, 1997 and, for redevelopment 14 project areas for which bonds were issued before July 29, 15 1991, in connection with a redevelopment project in the area 16 within the State Sales Tax Boundary and which were extended 17 by municipal ordinance under subsection (n) of Section 18 11-74.4-3, the last maturity of the refunding obligations 19 shall not be expressed to mature later than the date on which 20 the redevelopment project area is terminated or December 31, 21 2013, whichever date occurs first. 22 In the event a municipality issues obligations under home 23 rule powers or other legislative authority the proceeds of 24 which are pledged to pay for redevelopment project costs, the 25 municipality may, if it has followed the procedures in 26 conformance with this division, retire said obligations from 27 funds in the special tax allocation fund in amounts and in 28 such manner as if such obligations had been issued pursuant 29 to the provisions of this division. 30 All obligations heretofore or hereafter issued pursuant 31 to this Act shall not be regarded as indebtedness of the 32 municipality issuing such obligations or any other taxing 33 district for the purpose of any limitation imposed by law. 34 (Source: P.A. 89-357; eff. 8-17-95; 90-379, eff. 8-14-97.) HB0305 Enrolled -87- LRB9101600PTpk 1 (65 ILCS 5/11-74.4-7.1) 2 Sec. 11-74.4-7.1. After the effective date of this 3 amendatory Act of 1994 and prior to the effective date of 4 this amendatory Act of the 91st General Assembly, a 5 municipality with a population of less than 1,000,000, prior 6 to construction of a new municipal public building that 7 provides governmental services to be financed with tax 8 increment revenues as authorized in paragraph (4) of 9 subsection (q) of Section 11-74.4-3, shall agree with the 10 affected taxing districts to pay them, to the extent tax 11 increment finance revenues are available, over the life of 12 the redevelopment project area, an amount equal to 25% of the 13 cost of the building, such payments to be paid to the taxing 14 districts in the same proportion as the most recent 15 distribution by the county collector to the affected taxing 16 districts of real property taxes from taxable real property 17 in the redevelopment project area. 18 This Section does not apply to a municipality that, 19 before March 14, 1994 (the effective date of Public Act 20 88-537), acquired or leased the land (i) upon which a new 21 municipal public building is to be constructed and (ii) for 22 which an existing redevelopment plan or a redevelopment 23 agreement includes provisions for the construction of a new 24 municipal public building. 25 (Source: P.A. 88-537; 88-688, eff. 1-24-95.) 26 (65 ILCS 5/11-74.4-8) (from Ch. 24, par. 11-74.4-8) 27 Sec. 11-74.4-8. A municipality may not adopt tax 28 increment financing in a redevelopment project area after the 29 effective date of this amendatory Act of 1997 that will 30 encompass an area that is currently included in an enterprise 31 zone created under the Illinois Enterprise Zone Act unless 32 that municipality, pursuant to Section 5.4 of the Illinois 33 Enterprise Zone Act, amends the enterprise zone designating HB0305 Enrolled -88- LRB9101600PTpk 1 ordinance to limit the eligibility for tax abatements as 2 provided in Section 5.4.1 of the Illinois Enterprise Zone 3 Act. A municipality, at the time a redevelopment project 4 area is designated, may adopt tax increment allocation 5 financing by passing an ordinance providing that the ad 6 valorem taxes, if any, arising from the levies upon taxable 7 real property in such redevelopment project area by taxing 8 districts and tax rates determined in the manner provided in 9 paragraph (c) of Section 11-74.4-9 each year after the 10 effective date of the ordinance until redevelopment project 11 costs and all municipal obligations financing redevelopment 12 project costs incurred under this Division have been paid 13 shall be divided as follows: 14 (a) That portion of taxes levied upon each taxable lot, 15 block, tract or parcel of real property which is attributable 16 to the lower of the current equalized assessed value or the 17 initial equalized assessed value of each such taxable lot, 18 block, tract or parcel of real property in the redevelopment 19 project area shall be allocated to and when collected shall 20 be paid by the county collector to the respective affected 21 taxing districts in the manner required by law in the absence 22 of the adoption of tax increment allocation financing. 23 (b) That portion, if any, of such taxes which is 24 attributable to the increase in the current equalized 25 assessed valuation of each taxable lot, block, tract or 26 parcel of real property in the redevelopment project area 27 over and above the initial equalized assessed value of each 28 property in the project area shall be allocated to and when 29 collected shall be paid to the municipal treasurer who shall 30 deposit said taxes into a special fund called the special tax 31 allocation fund of the municipality for the purpose of paying 32 redevelopment project costs and obligations incurred in the 33 payment thereof. In any county with a population of 3,000,000 34 or more that has adopted a procedure for collecting taxes HB0305 Enrolled -89- LRB9101600PTpk 1 that provides for one or more of the installments of the 2 taxes to be billed and collected on an estimated basis, the 3 municipal treasurer shall be paid for deposit in the special 4 tax allocation fund of the municipality, from the taxes 5 collected from estimated bills issued for property in the 6 redevelopment project area, the difference between the amount 7 actually collected from each taxable lot, block, tract, or 8 parcel of real property within the redevelopment project area 9 and an amount determined by multiplying the rate at which 10 taxes were last extended against the taxable lot, block, 11 track, or parcel of real property in the manner provided in 12 subsection (c) of Section 11-74.4-9 by the initial equalized 13 assessed value of the property divided by the number of 14 installments in which real estate taxes are billed and 15 collected within the county;,provided that the payments on 16 or before December 31, 1999 to a municipal treasurer shall be 17 made only if each of the following conditions are met: 18 (1) The total equalized assessed value of the 19 redevelopment project area as last determined was not 20 less than 175% of the total initial equalized assessed 21 value. 22 (2) Not more than 50% of the total equalized 23 assessed value of the redevelopment project area as last 24 determined is attributable to a piece of property 25 assigned a single real estate index number. 26 (3) The municipal clerk has certified to the county 27 clerk that the municipality has issued its obligations to 28 which there has been pledged the incremental property 29 taxes of the redevelopment project area or taxes levied 30 and collected on any or all property in the municipality 31 or the full faith and credit of the municipality to pay 32 or secure payment for all or a portion of the 33 redevelopment project costs. The certification shall be 34 filed annually no later than September 1 for the HB0305 Enrolled -90- LRB9101600PTpk 1 estimated taxes to be distributed in the following year; 2 however, for the year 1992 the certification shall be 3 made at any time on or before March 31, 1992. 4 (4) The municipality has not requested that the 5 total initial equalized assessed value of real property 6 be adjusted as provided in subsection (b) of Section 7 11-74.4-9. 8 The conditions of paragraphs (1) through (4) do not apply 9 after December 31, 1999 to payments to a municipal treasurer 10 made by a county with 3,000,000 or more inhabitants that has 11 adopted an estimated billing procedure for collecting taxes. 12 If a county that has adopted the estimated billing procedure 13 makes an erroneous overpayment of tax revenue to the 14 municipal treasurer, then the county may seek a refund of 15 that overpayment. The county shall send the municipal 16 treasurer a notice of liability for the overpayment on or 17 before the mailing date of the next real estate tax bill 18 within the county. The refund shall be limited to the amount 19 of the overpayment. 20 It is the intent of this Division that after the 21 effective date of this amendatory Act of 1988 a 22 municipality's own ad valorem tax arising from levies on 23 taxable real property be included in the determination of 24 incremental revenue in the manner provided in paragraph (c) 25 of Section 11-74.4-9. If the municipality does not extend 26 such a tax, it shall annually deposit in the municipality's 27 Special Tax Increment Fund an amount equal to 10% of the 28 total contributions to the fund from all other taxing 29 districts in that year. The annual 10% deposit required by 30 this paragraph shall be limited to the actual amount of 31 municipally produced incremental tax revenues available to 32 the municipality from taxpayers located in the redevelopment 33 project area in that year if: (a) the plan for the area 34 restricts the use of the property primarily to industrial HB0305 Enrolled -91- LRB9101600PTpk 1 purposes, (b) the municipality establishing the redevelopment 2 project area is a home-rule community with a 1990 population 3 of between 25,000 and 50,000, (c) the municipality is wholly 4 located within a county with a 1990 population of over 5 750,000 and (d) the redevelopment project area was 6 established by the municipality prior to June 1, 1990. This 7 payment shall be in lieu of a contribution of ad valorem 8 taxes on real property. If no such payment is made, any 9 redevelopment project area of the municipality shall be 10 dissolved. 11 If a municipality has adopted tax increment allocation 12 financing by ordinance and the County Clerk thereafter 13 certifies the "total initial equalized assessed value as 14 adjusted" of the taxable real property within such 15 redevelopment project area in the manner provided in 16 paragraph (b) of Section 11-74.4-9, each year after the date 17 of the certification of the total initial equalized assessed 18 value as adjusted until redevelopment project costs and all 19 municipal obligations financing redevelopment project costs 20 have been paid the ad valorem taxes, if any, arising from the 21 levies upon the taxable real property in such redevelopment 22 project area by taxing districts and tax rates determined in 23 the manner provided in paragraph (c) of Section 11-74.4-9 24 shall be divided as follows: 25 (1) That portion of the taxes levied upon each 26 taxable lot, block, tract or parcel of real property 27 which is attributable to the lower of the current 28 equalized assessed value or "current equalized assessed 29 value as adjusted" or the initial equalized assessed 30 value of each such taxable lot, block, tract, or parcel 31 of real property existing at the time tax increment 32 financing was adopted, minus the total current homestead 33 exemptions provided by Sections 15-170 and 15-175 of the 34 Property Tax Code in the redevelopment project area shall HB0305 Enrolled -92- LRB9101600PTpk 1 be allocated to and when collected shall be paid by the 2 county collector to the respective affected taxing 3 districts in the manner required by law in the absence of 4 the adoption of tax increment allocation financing. 5 (2) That portion, if any, of such taxes which is 6 attributable to the increase in the current equalized 7 assessed valuation of each taxable lot, block, tract, or 8 parcel of real property in the redevelopment project 9 area, over and above the initial equalized assessed value 10 of each property existing at the time tax increment 11 financing was adopted, minus the total current homestead 12 exemptions pertaining to each piece of property provided 13 by Sections 15-170 and 15-175 of the Property Tax Code in 14 the redevelopment project area, shall be allocated to and 15 when collected shall be paid to the municipal Treasurer, 16 who shall deposit said taxes into a special fund called 17 the special tax allocation fund of the municipality for 18 the purpose of paying redevelopment project costs and 19 obligations incurred in the payment thereof. 20 The municipality may pledge in the ordinance the funds in 21 and to be deposited in the special tax allocation fund for 22 the payment of such costs and obligations. No part of the 23 current equalized assessed valuation of each property in the 24 redevelopment project area attributable to any increase above 25 the total initial equalized assessed value, or the total 26 initial equalized assessed value as adjusted, of such 27 properties shall be used in calculating the general State 28 school aid formula, provided for in Section 18-8 of the 29 School Code, until such time as all redevelopment project 30 costs have been paid as provided for in this Section. 31 Whenever a municipality issues bonds for the purpose of 32 financing redevelopment project costs, such municipality may 33 provide by ordinance for the appointment of a trustee, which 34 may be any trust company within the State, and for the HB0305 Enrolled -93- LRB9101600PTpk 1 establishment of such funds or accounts to be maintained by 2 such trustee as the municipality shall deem necessary to 3 provide for the security and payment of the bonds. If such 4 municipality provides for the appointment of a trustee, such 5 trustee shall be considered the assignee of any payments 6 assigned by the municipality pursuant to such ordinance and 7 this Section. Any amounts paid to such trustee as assignee 8 shall be deposited in the funds or accounts established 9 pursuant to such trust agreement, and shall be held by such 10 trustee in trust for the benefit of the holders of the bonds, 11 and such holders shall have a lien on and a security interest 12 in such funds or accounts so long as the bonds remain 13 outstanding and unpaid. Upon retirement of the bonds, the 14 trustee shall pay over any excess amounts held to the 15 municipality for deposit in the special tax allocation fund. 16 When such redevelopment projects costs, including without 17 limitation all municipal obligations financing redevelopment 18 project costs incurred under this Division, have been paid, 19 all surplus funds then remaining in the special tax 20 allocation fund shall be distributed by being paid by the 21 municipal treasurer to the Department of Revenue, the 22 municipality and the county collector; first to the 23 Department of Revenue and the municipality in direct 24 proportion to the tax incremental revenue received from the 25 State and the municipality, but not to exceed the total 26 incremental revenue received from the State or the 27 municipality less any annual surplus distribution of 28 incremental revenue previously made; with any remaining funds 29 to be paid to the County Collector who shall immediately 30 thereafter pay said funds to the taxing districts in the 31 redevelopment project area in the same manner and proportion 32 as the most recent distribution by the county collector to 33 the affected districts of real property taxes from real 34 property in the redevelopment project area. HB0305 Enrolled -94- LRB9101600PTpk 1 Upon the payment of all redevelopment project costs, 2 retirement of obligations and the distribution of any excess 3 monies pursuant to this Section, the municipality shall adopt 4 an ordinance dissolving the special tax allocation fund for 5 the redevelopment project area and terminating the 6 designation of the redevelopment project area as a 7 redevelopment project area. Municipalities shall notify 8 affected taxing districts prior to November 1 if the 9 redevelopment project area is to be terminated by December 31 10 of that same year. If a municipality extends estimated dates 11 of completion of a redevelopment project and retirement of 12 obligations to finance a redevelopment project, as allowed by 13 this amendatory Act of 1993, that extension shall not extend 14 the property tax increment allocation financing authorized by 15 this Section. Thereafter the rates of the taxing districts 16 shall be extended and taxes levied, collected and distributed 17 in the manner applicable in the absence of the adoption of 18 tax increment allocation financing. 19 Nothing in this Section shall be construed as relieving 20 property in such redevelopment project areas from being 21 assessed as provided in the Property Tax Code or as relieving 22 owners of such property from paying a uniform rate of taxes, 23 as required by Section 4 of Article 9 of the Illinois 24 Constitution. 25 (Source: P.A. 90-258, eff. 7-30-97.) 26 (65 ILCS 5/11-74.4-8a) (from Ch. 24, par. 11-74.4-8a) 27 Sec. 11-74.4-8a. (1) Until June 1, 1988, a municipality 28 which has adopted tax increment allocation financing prior to 29 January 1, 1987, may by ordinance (1) authorize the 30 Department of Revenue, subject to appropriation, to annually 31 certify and cause to be paid from the Illinois Tax Increment 32 Fund to such municipality for deposit in the municipality's 33 special tax allocation fund an amount equal to the Net State HB0305 Enrolled -95- LRB9101600PTpk 1 Sales Tax Increment and (2) authorize the Department of 2 Revenue to annually notify the municipality of the amount of 3 the Municipal Sales Tax Increment which shall be deposited by 4 the municipality in the municipality's special tax allocation 5 fund. Provided that for purposes of this Section no 6 amendments adding additional area to the redevelopment 7 project area which has been certified as the State Sales Tax 8 Boundary shall be taken into account if such amendments are 9 adopted by the municipality after January 1, 1987. If an 10 amendment is adopted which decreases the area of a State 11 Sales Tax Boundary, the municipality shall update the list 12 required by subsection (3)(a) of this Section. The Retailers' 13 Occupation Tax liability, Use Tax liability, Service 14 Occupation Tax liability and Service Use Tax liability for 15 retailers and servicemen located within the disconnected area 16 shall be excluded from the base from which tax increments are 17 calculated and the revenue from any such retailer or 18 serviceman shall not be included in calculating incremental 19 revenue payable to the municipality. A municipality adopting 20 an ordinance under this subsection (1) of this Section for a 21 redevelopment project area which is certified as a State 22 Sales Tax Boundary shall not be entitled to payments of State 23 taxes authorized under subsection (2) of this Section for the 24 same redevelopment project area. Nothing herein shall be 25 construed to prevent a municipality from receiving payment of 26 State taxes authorized under subsection (2) of this Section 27 for a separate redevelopment project area that does not 28 overlap in any way with the State Sales Tax Boundary 29 receiving payments of State taxes pursuant to subsection (1) 30 of this Section. 31 A certified copy of such ordinance shall be submitted by 32 the municipality to the Department of Commerce and Community 33 Affairs and the Department of Revenue not later than 30 days 34 after the effective date of the ordinance. Upon submission HB0305 Enrolled -96- LRB9101600PTpk 1 of the ordinances, and the information required pursuant to 2 subsection 3 of this Section, the Department of Revenue shall 3 promptly determine the amount of such taxes paid under the 4 Retailers' Occupation Tax Act, Use Tax Act, Service Use Tax 5 Act, the Service Occupation Tax Act, the Municipal Retailers' 6 Occupation Tax Act and the Municipal Service Occupation Tax 7 Act by retailers and servicemen on transactions at places 8 located in the redevelopment project area during the base 9 year, and shall certify all the foregoing "initial sales tax 10 amounts" to the municipality within 60 days of submission of 11 the list required of subsection (3)(a) of this Section. 12 If a retailer or serviceman with a place of business 13 located within a redevelopment project area also has one or 14 more other places of business within the municipality but 15 outside the redevelopment project area, the retailer or 16 serviceman shall, upon request of the Department of Revenue, 17 certify to the Department of Revenue the amount of taxes paid 18 pursuant to the Retailers' Occupation Tax Act, the Municipal 19 Retailers' Occupation Tax Act, the Service Occupation Tax Act 20 and the Municipal Service Occupation Tax Act at each place of 21 business which is located within the redevelopment project 22 area in the manner and for the periods of time requested by 23 the Department of Revenue. 24 When the municipality determines that a portion of an 25 increase in the aggregate amount of taxes paid by retailers 26 and servicemen under the Retailers' Occupation Tax Act, Use 27 Tax Act, Service Use Tax Act, or the Service Occupation Tax 28 Act is the result of a retailer or serviceman initiating 29 retail or service operations in the redevelopment project 30 area by such retailer or serviceman with a resulting 31 termination of retail or service operations by such retailer 32 or serviceman at another location in Illinois in the standard 33 metropolitan statistical area of such municipality, the 34 Department of Revenue shall be notified that the retailers HB0305 Enrolled -97- LRB9101600PTpk 1 occupation tax liability, use tax liability, service 2 occupation tax liability, or service use tax liability from 3 such retailer's or serviceman's terminated operation shall be 4 included in the base Initial Sales Tax Amounts from which the 5 State Sales Tax Increment is calculated for purposes of State 6 payments to the affected municipality; provided, however, for 7 purposes of this paragraph "termination" shall mean a closing 8 of a retail or service operation which is directly related to 9 the opening of the same retail or service operation in a 10 redevelopment project area which is included within a State 11 Sales Tax Boundary, but it shall not include retail or 12 service operations closed for reasons beyond the control of 13 the retailer or serviceman, as determined by the Department. 14 If the municipality makes the determination referred to in 15 the prior paragraph and notifies the Department and if the 16 relocation is from a location within the municipality, the 17 Department, at the request of the municipality, shall adjust 18 the certified aggregate amount of taxes that constitute the 19 Municipal Sales Tax Increment paid by retailers and 20 servicemen on transactions at places of business located 21 within the State Sales Tax Boundary during the base year 22 using the same procedures as are employed to make the 23 adjustment referred to in the prior paragraph. The adjusted 24 Municipal Sales Tax Increment calculated by the Department 25 shall be sufficient to satisfy the requirements of subsection 26 (1) of this Section. 27 When a municipality which has adopted tax increment 28 allocation financing in 1986 determines that a portion of the 29 aggregate amount of taxes paid by retailers and servicemen 30 under the Retailers Occupation Tax Act, Use Tax Act, Service 31 Use Tax Act, or Service Occupation Tax Act, the Municipal 32 Retailers' Occupation Tax Act and the Municipal Service 33 Occupation Tax Act, includes revenue of a retailer or 34 serviceman which terminated retailer or service operations in HB0305 Enrolled -98- LRB9101600PTpk 1 1986, prior to the adoption of tax increment allocation 2 financing, the Department of Revenue shall be notified by 3 such municipality that the retailers' occupation tax 4 liability, use tax liability, service occupation tax 5 liability or service use tax liability, from such retailer's 6 or serviceman's terminated operations shall be excluded from 7 the Initial Sales Tax Amounts for such taxes. The revenue 8 from any such retailer or serviceman which is excluded from 9 the base year under this paragraph, shall not be included in 10 calculating incremental revenues if such retailer or 11 serviceman reestablishes such business in the redevelopment 12 project area. 13 For State fiscal year 1992, the Department of Revenue 14 shall budget, and the Illinois General Assembly shall 15 appropriate from the Illinois Tax Increment Fund in the State 16 treasury, an amount not to exceed $18,000,000 to pay to each 17 eligible municipality the Net State Sales Tax Increment to 18 which such municipality is entitled. 19 Beginning on January 1, 1993, each municipality's 20 proportional share of the Illinois Tax Increment Fund shall 21 be determined by adding the annual Net State Sales Tax 22 Increment and the annual Net Utility Tax Increment to 23 determine the Annual Total Increment. The ratio of the Annual 24 Total Increment of each municipality to the Annual Total 25 Increment for all municipalities, as most recently calculated 26 by the Department, shall determine the proportional shares of 27 the Illinois Tax Increment Fund to be distributed to each 28 municipality. 29 Beginning in October, 1993, and each January, April, July 30 and October thereafter, the Department of Revenue shall 31 certify to the Treasurer and the Comptroller the amounts 32 payable quarter annually during the fiscal year to each 33 municipality under this Section. The Comptroller shall 34 promptly then draw warrants, ordering the State Treasurer to HB0305 Enrolled -99- LRB9101600PTpk 1 pay such amounts from the Illinois Tax Increment Fund in the 2 State treasury. 3 The Department of Revenue shall utilize the same periods 4 established for determining State Sales Tax Increment to 5 determine the Municipal Sales Tax Increment for the area 6 within a State Sales Tax Boundary and certify such amounts to 7 such municipal treasurer who shall transfer such amounts to 8 the special tax allocation fund. 9 The provisions of this subsection (1) do not apply to 10 additional municipal retailers' occupation or service 11 occupation taxes imposed by municipalities using their home 12 rule powers or imposed pursuant to Sections 8-11-1.3, 13 8-11-1.4 and 8-11-1.5 of this Act. A municipality shall not 14 receive from the State any share of the Illinois Tax 15 Increment Fund unless such municipality deposits all its 16 Municipal Sales Tax Increment and the local incremental real 17 property tax revenues, as provided herein, into the 18 appropriate special tax allocation fund. A municipality 19 located within an economic development project area created 20 under the County Economic Development Project Area Property 21 Tax Allocation Act which has abated any portion of its 22 property taxes which otherwise would have been deposited in 23 its special tax allocation fund shall not receive from the 24 State the Net Sales Tax Increment. 25 (2) A municipality which has adopted tax increment 26 allocation financing with regard to an industrial park or 27 industrial park conservation area, prior to January 1, 1988, 28 may by ordinance authorize the Department of Revenue to 29 annually certify and pay from the Illinois Tax Increment Fund 30 to such municipality for deposit in the municipality's 31 special tax allocation fund an amount equal to the Net State 32 Utility Tax Increment. Provided that for purposes of this 33 Section no amendments adding additional area to the 34 redevelopment project area shall be taken into account if HB0305 Enrolled -100- LRB9101600PTpk 1 such amendments are adopted by the municipality after January 2 1, 1988. Municipalities adopting an ordinance under this 3 subsection (2) of this Section for a redevelopment project 4 area shall not be entitled to payment of State taxes 5 authorized under subsection (1) of this Section for the same 6 redevelopment project area which is within a State Sales Tax 7 Boundary. Nothing herein shall be construed to prevent a 8 municipality from receiving payment of State taxes authorized 9 under subsection (1) of this Section for a separate 10 redevelopment project area within a State Sales Tax Boundary 11 that does not overlap in any way with the redevelopment 12 project area receiving payments of State taxes pursuant to 13 subsection (2) of this Section. 14 A certified copy of such ordinance shall be submitted to 15 the Department of Commerce and Community Affairs and the 16 Department of Revenue not later than 30 days after the 17 effective date of the ordinance. 18 When a municipality determines that a portion of an 19 increase in the aggregate amount of taxes paid by industrial 20 or commercial facilities under the Public Utilities Act, is 21 the result of an industrial or commercial facility initiating 22 operations in the redevelopment project area with a resulting 23 termination of such operations by such industrial or 24 commercial facility at another location in Illinois, the 25 Department of Revenue shall be notified by such municipality 26 that such industrial or commercial facility's liability under 27 the Public Utility Tax Act shall be included in the base from 28 which tax increments are calculated for purposes of State 29 payments to the affected municipality. 30 After receipt of the calculations by the public utility 31 as required by subsection (4) of this Section, the Department 32 of Revenue shall annually budget and the Illinois General 33 Assembly shall annually appropriate from the General Revenue 34 Fund through State Fiscal Year 1989, and thereafter from the HB0305 Enrolled -101- LRB9101600PTpk 1 Illinois Tax Increment Fund, an amount sufficient to pay to 2 each eligible municipality the amount of incremental revenue 3 attributable to State electric and gas taxes as reflected by 4 the charges imposed on persons in the project area to which 5 such municipality is entitled by comparing the preceding 6 calendar year with the base year as determined by this 7 Section. Beginning on January 1, 1993, each municipality's 8 proportional share of the Illinois Tax Increment Fund shall 9 be determined by adding the annual Net State Utility Tax 10 Increment and the annual Net Utility Tax Increment to 11 determine the Annual Total Increment. The ratio of the Annual 12 Total Increment of each municipality to the Annual Total 13 Increment for all municipalities, as most recently calculated 14 by the Department, shall determine the proportional shares of 15 the Illinois Tax Increment Fund to be distributed to each 16 municipality. 17 A municipality shall not receive any share of the 18 Illinois Tax Increment Fund from the State unless such 19 municipality imposes the maximum municipal charges authorized 20 pursuant to Section 9-221 of the Public Utilities Act and 21 deposits all municipal utility tax incremental revenues as 22 certified by the public utilities, and all local real estate 23 tax increments into such municipality's special tax 24 allocation fund. 25 (3) Within 30 days after the adoption of the ordinance 26 required by either subsection (1) or subsection (2) of this 27 Section, the municipality shall transmit to the Department of 28 Commerce and Community Affairs and the Department of Revenue 29 the following: 30 (a) if applicable, a certified copy of the 31 ordinance required by subsection (1) accompanied by a 32 complete list of street names and the range of street 33 numbers of each street located within the redevelopment 34 project area for which payments are to be made under this HB0305 Enrolled -102- LRB9101600PTpk 1 Section in both the base year and in the year preceding 2 the payment year; and the addresses of persons registered 3 with the Department of Revenue; and, the name under which 4 each such retailer or serviceman conducts business at 5 that address, if different from the corporate name; and 6 the Illinois Business Tax Number of each such person (The 7 municipality shall update this list in the event of a 8 revision of the redevelopment project area, or the 9 opening or closing or name change of any street or part 10 thereof in the redevelopment project area, or if the 11 Department of Revenue informs the municipality of an 12 addition or deletion pursuant to the monthly updates 13 given by the Department.); 14 (b) if applicable, a certified copy of the 15 ordinance required by subsection (2) accompanied by a 16 complete list of street names and range of street numbers 17 of each street located within the redevelopment project 18 area, the utility customers in the project area, and the 19 utilities serving the redevelopment project areas; 20 (c) certified copies of the ordinances approving 21 the redevelopment plan and designating the redevelopment 22 project area; 23 (d) a copy of the redevelopment plan as approved by 24 the municipality; 25 (e) an opinion of legal counsel that the 26 municipality had complied with the requirements of this 27 Act; and 28 (f) a certification by the chief executive officer 29 of the municipality that with regard to a redevelopment 30 project area: (1) the municipality has committed all of 31 the municipal tax increment created pursuant to this Act 32 for deposit in the special tax allocation fund, (2) the 33 redevelopment projects described in the redevelopment 34 plan would not be completed without the use of State HB0305 Enrolled -103- LRB9101600PTpk 1 incremental revenues pursuant to this Act, (3) the 2 municipality will pursue the implementation of the 3 redevelopment plan in an expeditious manner, (4) the 4 incremental revenues created pursuant to this Section 5 will be exclusively utilized for the development of the 6 redevelopment project area, and (5) the increased revenue 7 created pursuant to this Section shall be used 8 exclusively to pay redevelopment project costs as defined 9 in this Act. 10 (4) The Department of Revenue upon receipt of the 11 information set forth in paragraph (b) of subsection (3) 12 shall immediately forward such information to each public 13 utility furnishing natural gas or electricity to buildings 14 within the redevelopment project area. Upon receipt of such 15 information, each public utility shall promptly: 16 (a) provide to the Department of Revenue and the 17 municipality separate lists of the names and addresses of 18 persons within the redevelopment project area receiving 19 natural gas or electricity from such public utility. 20 Such list shall be updated as necessary by the public 21 utility. Each month thereafter the public utility shall 22 furnish the Department of Revenue and the municipality 23 with an itemized listing of charges imposed pursuant to 24 Sections 9-221 and 9-222 of the Public Utilities Act on 25 persons within the redevelopment project area. 26 (b) determine the amount of charges imposed 27 pursuant to Sections 9-221 and 9-222 of the Public 28 Utilities Act on persons in the redevelopment project 29 area during the base year, both as a result of municipal 30 taxes on electricity and gas and as a result of State 31 taxes on electricity and gas and certify such amounts 32 both to the municipality and the Department of Revenue; 33 and 34 (c) determine the amount of charges imposed HB0305 Enrolled -104- LRB9101600PTpk 1 pursuant to Sections 9-221 and 9-222 of the Public 2 Utilities Act on persons in the redevelopment project 3 area on a monthly basis during the base year, both as a 4 result of State and municipal taxes on electricity and 5 gas and certify such separate amounts both to the 6 municipality and the Department of Revenue. 7 After the determinations are made in paragraphs (b) and 8 (c), the public utility shall monthly during the existence of 9 the redevelopment project area notify the Department of 10 Revenue and the municipality of any increase in charges over 11 the base year determinations made pursuant to paragraphs (b) 12 and (c). 13 (5) The payments authorized under this Section shall be 14 deposited by the municipal treasurer in the special tax 15 allocation fund of the municipality, which for accounting 16 purposes shall identify the sources of each payment as: 17 municipal receipts from the State retailers occupation, 18 service occupation, use and service use taxes; and municipal 19 public utility taxes charged to customers under the Public 20 Utilities Act and State public utility taxes charged to 21 customers under the Public Utilities Act. 22 (6) Before the effective date of this amendatory Act of 23 the 91st General Assembly, any municipality receiving 24 payments authorized under this Section for any redevelopment 25 project area or area within a State Sales Tax Boundary within 26 the municipality shall submit to the Department of Revenue 27 and to the taxing districts which are sent the notice 28 required by Section 6 of this Act annually within 180 days 29 after the close of each municipal fiscal year the following 30 information for the immediately preceding fiscal year: 31 (a) Any amendments to the redevelopment plan, the 32 redevelopment project area, or the State Sales Tax 33 Boundary. 34 (b) Audited financial statements of the special tax HB0305 Enrolled -105- LRB9101600PTpk 1 allocation fund. 2 (c) Certification of the Chief Executive Officer of 3 the municipality that the municipality has complied with 4 all of the requirements of this Act during the preceding 5 fiscal year. 6 (d) An opinion of legal counsel that the 7 municipality is in compliance with this Act. 8 (e) An analysis of the special tax allocation fund 9 which sets forth: 10 (1) the balance in the special tax allocation 11 fund at the beginning of the fiscal year; 12 (2) all amounts deposited in the special tax 13 allocation fund by source; 14 (3) all expenditures from the special tax 15 allocation fund by category of permissible 16 redevelopment project cost; and 17 (4) the balance in the special tax allocation 18 fund at the end of the fiscal year including a 19 breakdown of that balance by source. Such ending 20 balance shall be designated as surplus if it is not 21 required for anticipated redevelopment project costs 22 or to pay debt service on bonds issued to finance 23 redevelopment project costs, as set forth in Section 24 11-74.4-7 hereof. 25 (f) A description of all property purchased by the 26 municipality within the redevelopment project area 27 including: 28 1. Street address 29 2. Approximate size or description of property 30 3. Purchase price 31 4. Seller of property. 32 (g) A statement setting forth all activities 33 undertaken in furtherance of the objectives of the 34 redevelopment plan, including: HB0305 Enrolled -106- LRB9101600PTpk 1 1. Any project implemented in the preceding 2 fiscal year 3 2. A description of the redevelopment 4 activities undertaken 5 3. A description of any agreements entered 6 into by the municipality with regard to the 7 disposition or redevelopment of any property within 8 the redevelopment project area or the area within 9 the State Sales Tax Boundary. 10 (h) With regard to any obligations issued by the 11 municipality: 12 1. copies of bond ordinances or resolutions 13 2. copies of any official statements 14 3. an analysis prepared by financial advisor 15 or underwriter setting forth: (a) nature and term of 16 obligation; and (b) projected debt service including 17 required reserves and debt coverage. 18 (i) A certified audit report reviewing compliance 19 with this statute performed by an independent public 20 accountant certified and licensed by the authority of the 21 State of Illinois. The financial portion of the audit 22 must be conducted in accordance with Standards for Audits 23 of Governmental Organizations, Programs, Activities, and 24 Functions adopted by the Comptroller General of the 25 United States (1981), as amended. The audit report shall 26 contain a letter from the independent certified public 27 accountant indicating compliance or noncompliance with 28 the requirements of subsection (q) of Section 11-74.4-3. 29 If the audit indicates that expenditures are not in 30 compliance with the law, the Department of Revenue shall 31 withhold State sales and utility tax increment payments 32 to the municipality until compliance has been reached, 33 and an amount equal to the ineligible expenditures has 34 been returned to the Special Tax Allocation Fund. HB0305 Enrolled -107- LRB9101600PTpk 1 (6.1) After July 29, 1988 and before the effective date 2 of this amendatory Act of the 91st General Assembly, any 3 funds which have not been designated for use in a specific 4 development project in the annual report shall be designated 5 as surplus. No funds may be held in the Special Tax 6 Allocation Fund for more than 36 months from the date of 7 receipt unless the money is required for payment of 8 contractual obligations for specific development project 9 costs. If held for more than 36 months in violation of the 10 preceding sentence, such funds shall be designated as 11 surplus. Any funds designated as surplus must first be used 12 for early redemption of any bond obligations. Any funds 13 designated as surplus which are not disposed of as otherwise 14 provided in this paragraph, shall be distributed as surplus 15 as provided in Section 11-74.4-7. 16 (7) Any appropriation made pursuant to this Section for 17 the 1987 State fiscal year shall not exceed the amount of $7 18 million and for the 1988 State fiscal year the amount of $10 19 million. The amount which shall be distributed to each 20 municipality shall be the incremental revenue to which each 21 municipality is entitled as calculated by the Department of 22 Revenue, unless the requests of the municipality exceed the 23 appropriation, then the amount to which each municipality 24 shall be entitled shall be prorated among the municipalities 25 in the same proportion as the increment to which the 26 municipality would be entitled bears to the total increment 27 which all municipalities would receive in the absence of this 28 limitation, provided that no municipality may receive an 29 amount in excess of 15% of the appropriation. For the 1987 30 Net State Sales Tax Increment payable in Fiscal Year 1989, no 31 municipality shall receive more than 7.5% of the total 32 appropriation; provided, however, that any of the 33 appropriation remaining after such distribution shall be 34 prorated among municipalities on the basis of their pro rata HB0305 Enrolled -108- LRB9101600PTpk 1 share of the total increment. Beginning on January 1, 1993, 2 each municipality's proportional share of the Illinois Tax 3 Increment Fund shall be determined by adding the annual Net 4 State Sales Tax Increment and the annual Net Utility Tax 5 Increment to determine the Annual Total Increment. The ratio 6 of the Annual Total Increment of each municipality to the 7 Annual Total Increment for all municipalities, as most 8 recently calculated by the Department, shall determine the 9 proportional shares of the Illinois Tax Increment Fund to be 10 distributed to each municipality. 11 (7.1) No distribution of Net State Sales Tax Increment 12 to a municipality for an area within a State Sales Tax 13 Boundary shall exceed in any State Fiscal Year an amount 14 equal to 3 times the sum of the Municipal Sales Tax 15 Increment, the real property tax increment and deposits of 16 funds from other sources, excluding state and federal funds, 17 as certified by the city treasurer to the Department of 18 Revenue for an area within a State Sales Tax Boundary. After 19 July 29, 1988, for those municipalities which issue bonds 20 between June 1, 1988 and 3 years from July 29, 1988 to 21 finance redevelopment projects within the area in a State 22 Sales Tax Boundary, the distribution of Net State Sales Tax 23 Increment during the 16th through 20th years from the date of 24 issuance of the bonds shall not exceed in any State Fiscal 25 Year an amount equal to 2 times the sum of the Municipal 26 Sales Tax Increment, the real property tax increment and 27 deposits of funds from other sources, excluding State and 28 federal funds. 29 (8) Any person who knowingly files or causes to be filed 30 false information for the purpose of increasing the amount of 31 any State tax incremental revenue commits a Class A 32 misdemeanor. 33 (9) The following procedures shall be followed to 34 determine whether municipalities have complied with the Act HB0305 Enrolled -109- LRB9101600PTpk 1 for the purpose of receiving distributions after July 1, 1989 2 pursuant to subsection (1) of this Section 11-74.4-8a. 3 (a) The Department of Revenue shall conduct a 4 preliminary review of the redevelopment project areas and 5 redevelopment plans pertaining to those municipalities 6 receiving payments from the State pursuant to subsection 7 (1) of Section 8a of this Act for the purpose of 8 determining compliance with the following standards: 9 (1) For any municipality with a population of 10 more than 12,000 as determined by the 1980 U.S. 11 Census: (a) the redevelopment project area, or in 12 the case of a municipality which has more than one 13 redevelopment project area, each such area, must be 14 contiguous and the total of all such areas shall not 15 comprise more than 25% of the area within the 16 municipal boundaries nor more than 20% of the 17 equalized assessed value of the municipality; (b) 18 the aggregate amount of 1985 taxes in the 19 redevelopment project area, or in the case of a 20 municipality which has more than one redevelopment 21 project area, the total of all such areas, shall be 22 not more than 25% of the total base year taxes paid 23 by retailers and servicemen on transactions at 24 places of business located within the municipality 25 under the Retailers' Occupation Tax Act, the Use Tax 26 Act, the Service Use Tax Act, and the Service 27 Occupation Tax Act. Redevelopment project areas 28 created prior to 1986 are not subject to the above 29 standards if their boundaries were not amended in 30 1986. 31 (2) For any municipality with a population of 32 12,000 or less as determined by the 1980 U.S. 33 Census: (a) the redevelopment project area, or in 34 the case of a municipality which has more than one HB0305 Enrolled -110- LRB9101600PTpk 1 redevelopment project area, each such area, must be 2 contiguous and the total of all such areas shall not 3 comprise more than 35% of the area within the 4 municipal boundaries nor more than 30% of the 5 equalized assessed value of the municipality; (b) 6 the aggregate amount of 1985 taxes in the 7 redevelopment project area, or in the case of a 8 municipality which has more than one redevelopment 9 project area, the total of all such areas, shall not 10 be more than 35% of the total base year taxes paid 11 by retailers and servicemen on transactions at 12 places of business located within the municipality 13 under the Retailers' Occupation Tax Act, the Use Tax 14 Act, the Service Use Tax Act, and the Service 15 Occupation Tax Act. Redevelopment project areas 16 created prior to 1986 are not subject to the above 17 standards if their boundaries were not amended in 18 1986. 19 (3) Such preliminary review of the 20 redevelopment project areas applying the above 21 standards shall be completed by November 1, 1988, 22 and on or before November 1, 1988, the Department 23 shall notify each municipality by certified mail, 24 return receipt requested that either (1) the 25 Department requires additional time in which to 26 complete its preliminary review; or (2) the 27 Department is issuing either (a) a Certificate of 28 Eligibility or (b) a Notice of Review. If the 29 Department notifies a municipality that it requires 30 additional time to complete its preliminary 31 investigation, it shall complete its preliminary 32 investigation no later than February 1, 1989, and by 33 February 1, 1989 shall issue to each municipality 34 either (a) a Certificate of Eligibility or (b) a HB0305 Enrolled -111- LRB9101600PTpk 1 Notice of Review. A redevelopment project area for 2 which a Certificate of Eligibility has been issued 3 shall be deemed a "State Sales Tax Boundary." 4 (4) The Department of Revenue shall also issue 5 a Notice of Review if the Department has received a 6 request by November 1, 1988 to conduct such a review 7 from taxpayers in the municipality, local taxing 8 districts located in the municipality or the State 9 of Illinois, or if the redevelopment project area 10 has more than 5 retailers and has had growth in 11 State sales tax revenue of more than 15% from 12 calendar year 1985 to 1986. 13 (b) For those municipalities receiving a Notice of 14 Review, the Department will conduct a secondary review 15 consisting of: (i) application of the above standards 16 contained in subsection (9)(a)(1)(a) and (b) or 17 (9)(a)(2)(a) and (b), and (ii) the definitions of 18 blighted and conservation area provided for in Section 19 11-74.4-3. Such secondary review shall be completed by 20 July 1, 1989. 21 Upon completion of the secondary review, the 22 Department will issue (a) a Certificate of Eligibility or 23 (b) a Preliminary Notice of Deficiency. Any municipality 24 receiving a Preliminary Notice of Deficiency may amend 25 its redevelopment project area to meet the standards and 26 definitions set forth in this paragraph (b). This amended 27 redevelopment project area shall become the "State Sales 28 Tax Boundary" for purposes of determining the State Sales 29 Tax Increment. 30 (c) If the municipality advises the Department of 31 its intent to comply with the requirements of paragraph 32 (b) of this subsection outlined in the Preliminary Notice 33 of Deficiency, within 120 days of receiving such notice 34 from the Department, the municipality shall submit HB0305 Enrolled -112- LRB9101600PTpk 1 documentation to the Department of the actions it has 2 taken to cure any deficiencies. Thereafter, within 30 3 days of the receipt of the documentation, the Department 4 shall either issue a Certificate of Eligibility or a 5 Final Notice of Deficiency. If the municipality fails to 6 advise the Department of its intent to comply or fails to 7 submit adequate documentation of such cure of 8 deficiencies the Department shall issue a Final Notice of 9 Deficiency that provides that the municipality is 10 ineligible for payment of the Net State Sales Tax 11 Increment. 12 (d) If the Department issues a final determination 13 of ineligibility, the municipality shall have 30 days 14 from the receipt of determination to protest and request 15 a hearing. Such hearing shall be conducted in accordance 16 with Sections 10-25, 10-35, 10-40, and 10-50 of the 17 Illinois Administrative Procedure Act. The decision 18 following the hearing shall be subject to review under 19 the Administrative Review Law. 20 (e) Any Certificate of Eligibility issued pursuant 21 to this subsection 9 shall be binding only on the State 22 for the purposes of establishing municipal eligibility to 23 receive revenue pursuant to subsection (1) of this 24 Section 11-74.4-8a. 25 (f) It is the intent of this subsection that the 26 periods of time to cure deficiencies shall be in addition 27 to all other periods of time permitted by this Section, 28 regardless of the date by which plans were originally 29 required to be adopted. To cure said deficiencies, 30 however, the municipality shall be required to follow the 31 procedures and requirements pertaining to amendments, as 32 provided in Sections 11-74.4-5 and 11-74.4-6 of this Act. 33 (10) If a municipality adopts a State Sales Tax Boundary 34 in accordance with the provisions of subsection (9) of this HB0305 Enrolled -113- LRB9101600PTpk 1 Section, such boundaries shall subsequently be utilized to 2 determine Revised Initial Sales Tax Amounts and the Net State 3 Sales Tax Increment; provided, however, that such revised 4 State Sales Tax Boundary shall not have any effect upon the 5 boundary of the redevelopment project area established for 6 the purposes of determining the ad valorem taxes on real 7 property pursuant to Sections 11-74.4-7 and 11-74.4-8 of this 8 Act nor upon the municipality's authority to implement the 9 redevelopment plan for that redevelopment project area. For 10 any redevelopment project area with a smaller State Sales Tax 11 Boundary within its area, the municipality may annually elect 12 to deposit the Municipal Sales Tax Increment for the 13 redevelopment project area in the special tax allocation fund 14 and shall certify the amount to the Department prior to 15 receipt of the Net State Sales Tax Increment. Any 16 municipality required by subsection (9) to establish a State 17 Sales Tax Boundary for one or more of its redevelopment 18 project areas shall submit all necessary information required 19 by the Department concerning such boundary and the retailers 20 therein, by October 1, 1989, after complying with the 21 procedures for amendment set forth in Sections 11-74.4-5 and 22 11-74.4-6 of this Act. Net State Sales Tax Increment 23 produced within the State Sales Tax Boundary shall be spent 24 only within that area. However expenditures of all municipal 25 property tax increment and municipal sales tax increment in a 26 redevelopment project area are not required to be spent 27 within the smaller State Sales Tax Boundary within such 28 redevelopment project area. 29 (11) The Department of Revenue shall have the authority 30 to issue rules and regulations for purposes of this Section. 31 and regulations for purposes of this Section. 32 (12) If, under Section 5.4.1 of the Illinois Enterprise 33 Zone Act, a municipality determines that property that lies 34 within a State Sales Tax Boundary has an improvement, HB0305 Enrolled -114- LRB9101600PTpk 1 rehabilitation, or renovation that is entitled to a property 2 tax abatement, then that property along with any 3 improvements, rehabilitation, or renovations shall be 4 immediately removed from any State Sales Tax Boundary. The 5 municipality that made the determination shall notify the 6 Department of Revenue within 30 days after the determination. 7 Once a property is removed from the State Sales Tax Boundary 8 because of the existence of a property tax abatement 9 resulting from an enterprise zone, then that property shall 10 not be permitted to be amended into a State Sales Tax 11 Boundary. 12 (Source: P.A. 90-258, eff. 7-30-97.) 13 Section 90. The State Mandates Act is amended by adding 14 Section 8.23 as follows: 15 (30 ILCS 805/8.23 new) 16 Sec. 8.23. Exempt mandate. Notwithstanding Sections 6 17 and 8 of this Act, no reimbursement by the State is required 18 for the implementation of any mandate created by this 19 amendatory Act of the 91st General Assembly. 20 Section 99. Effective date. This Act takes effect on 21 the first day of the third month after becoming law.