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91_HB0305eng HB0305 Engrossed 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 Engrossed -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 Engrossed -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 Engrossed -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 Engrossed -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 Engrossed -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 Engrossed -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 Engrossed -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 Engrossed -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 Engrossed -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 Engrossed -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 10. The Governmental Account Audit Act is 11 amended by changing Section 3 as follows: 12 (50 ILCS 310/3) (from Ch. 85, par. 703) 13 Sec. 3. Financial report. Any governmental unit 14 appropriating less than $200,000 for any fiscal year shall, 15 in lieu of complying with the requirements of Section 2 for 16 audits and audit reports, file with the Comptroller a 17 financial report containing information required by the 18 Comptroller. In addition, a governmental unit appropriating 19 less than $200,000 may file with the Comptroller any audit 20 reports which may have been prepared under any other law. Any 21 governmental unit appropriating $200,000 or more for any 22 fiscal year shall, in addition to complying with the 23 requirements of Section 2 for audits and audit reports, file 24 with the Comptroller the financial report required by this 25 Section. The financial report filed under this Section shall 26 include the information required by subsection (d) of Section 27 11-74.4-5 of the Tax Increment Allocation Redevelopment Act 28 in the Illinois Municipal Code. Such financial reports shall 29 be on forms so designed by the Comptroller as not to require 30 professional accounting services for its preparation. 31 (Source: P.A. 90-104, eff. 7-11-97.) HB0305 Engrossed -12- LRB9101600PTpk 1 Section 15. The Illinois Municipal Code is amended by 2 changing Sections 11-74.4-3, 11-74.4-4, 11-74.4-4.1, 3 11-74.4-5, 11-74.4-6, 11-74.4-7, 11-74.4-7.1, 11-74.4-8, and 4 11-74.4-8a and adding Section 11-74.4-4.2 as follows: 5 (65 ILCS 5/11-74.4-3) (from Ch. 24, par. 11-74.4-3) 6 Sec. 11-74.4-3. Definitions. The following terms, 7 wherever used or referred to in this Division 74.4 shall have 8 the following respective meanings, unless in any case a 9 different meaning clearly appears from the context. 10 (a) For any redevelopment project area that has been 11 designated pursuant to this Section by an ordinance adopted 12 prior to the effective date of this amendatory Act of the 13 91st General Assembly, "blighted area" shall have the meaning 14 set forth in this Section prior to the effective date of this 15 amendatory Act of the 91st General Assembly. 16 On and after the effective date of this amendatory Act of 17 the 91st General Assembly, "blighted area" means any improved 18 or vacant area within the boundaries of a redevelopment 19 project area located within the territorial limits of the 20 municipality where: 21 (1) If improved, industrial, commercial, and 22 residential buildings or improvements are detrimental to 23 the public safety, health, or welfare because of a 24 combination of 5 or more of the following factors, each 25 of which is (i) present, with that presence documented, 26 to a meaningful extent so that a municipality may 27 reasonably find that the factor is clearly present within 28 the intent of the Act and (ii) reasonably distributed 29 throughout the improved part of the redevelopment project 30 area: 31 (A) Dilapidation. An advanced state of 32 disrepair or neglect of necessary repairs to the 33 primary structural components of buildings or HB0305 Engrossed -13- LRB9101600PTpk 1 improvements in such a combination that a documented 2 building condition analysis determines that major 3 repair is required or the defects are so serious and 4 so extensive that the buildings must be removed. 5 (B) Obsolescence. The condition or process of 6 falling into disuse. Structures have become 7 ill-suited for the original use. 8 (C) Deterioration. With respect to buildings, 9 defects including, but not limited to, major defects 10 in the secondary building components such as doors, 11 windows, porches, gutters and downspouts, and 12 fascia. With respect to surface improvements, that 13 the condition of roadways, alleys, curbs, gutters, 14 sidewalks, off-street parking, and surface storage 15 areas evidence deterioration, including, but not 16 limited to, surface cracking, crumbling, potholes, 17 depressions, loose paving material, and weeds 18 protruding through paved surfaces. 19 (D) Presence of structures below minimum code 20 standards. All structures that do not meet the 21 standards of zoning, subdivision, building, fire, 22 and other governmental codes applicable to property, 23 but not including housing and property maintenance 24 codes. 25 (E) Illegal use of individual structures. The 26 use of structures in violation of applicable 27 federal, State, or local laws, exclusive of those 28 applicable to the presence of structures below 29 minimum code standards. 30 (F) Excessive vacancies. The presence of 31 buildings that are unoccupied or under-utilized and 32 that represent an adverse influence on the area 33 because of the frequency, extent, or duration of the 34 vacancies. HB0305 Engrossed -14- LRB9101600PTpk 1 (G) Lack of ventilation, light, or sanitary 2 facilities. The absence of adequate ventilation for 3 light or air circulation in spaces or rooms without 4 windows, or that require the removal of dust, odor, 5 gas, smoke, or other noxious airborne materials. 6 Inadequate natural light and ventilation means the 7 absence of skylights or windows for interior spaces 8 or rooms and improper window sizes and amounts by 9 room area to window area ratios. Inadequate 10 sanitary facilities refers to the absence or 11 inadequacy of garbage storage and enclosure, 12 bathroom facilities, hot water and kitchens, and 13 structural inadequacies preventing ingress and 14 egress to and from all rooms and units within a 15 building. 16 (H) Inadequate utilities. Underground and 17 overhead utilities such as storm sewers and storm 18 drainage, sanitary sewers, water lines, and gas, 19 telephone, and electrical services that are shown to 20 be inadequate. Inadequate utilities are those that 21 are: (i) of insufficient capacity to serve the uses 22 in the redevelopment project area, (ii) 23 deteriorated, antiquated, obsolete, or in disrepair, 24 or (iii) lacking within the redevelopment project 25 area. 26 (I) Excessive land coverage and overcrowding 27 of structures and community facilities. The 28 over-intensive use of property and the crowding of 29 buildings and accessory facilities onto a site. 30 Examples of problem conditions warranting the 31 designation of an area as one exhibiting excessive 32 land coverage are: (i) the presence of buildings 33 either improperly situated on parcels or located on 34 parcels of inadequate size and shape in relation to HB0305 Engrossed -15- LRB9101600PTpk 1 present-day standards of development for health and 2 safety and (ii) the presence of multiple buildings 3 on a single parcel. For there to be a finding of 4 excessive land coverage, these parcels must exhibit 5 one or more of the following conditions: 6 insufficient provision for light and air within or 7 around buildings, increased threat of spread of fire 8 due to the close proximity of buildings, lack of 9 adequate or proper access to a public right-of-way, 10 lack of reasonably required off-street parking, or 11 inadequate provision for loading and service. 12 (J) Deleterious land use or layout. The 13 existence of incompatible land-use relationships, 14 buildings occupied by inappropriate mixed-uses, or 15 uses considered to be noxious, offensive, or 16 unsuitable for the surrounding area. 17 (K) Environmental clean-up. The proposed 18 redevelopment project area has incurred Illinois 19 Environmental Protection Agency or United States 20 Environmental Protection Agency remediation costs 21 for, or a study conducted by an independent 22 consultant recognized as having expertise in 23 environmental remediation has determined a need for, 24 the clean-up of hazardous waste, hazardous 25 substances, or underground storage tanks required by 26 State or federal law, provided that the remediation 27 costs constitute a material impediment to the 28 development or redevelopment of the redevelopment 29 project area. 30 (L) Lack of community planning. The proposed 31 redevelopment project area was developed prior to or 32 without the benefit or guidance of a community plan. 33 This means that the development occurred prior to 34 the adoption by the municipality of a comprehensive HB0305 Engrossed -16- LRB9101600PTpk 1 or other community plan or that the plan was not 2 followed at the time of the area's development. 3 This factor must be documented by evidence of 4 adverse or incompatible land-use relationships, 5 inadequate street layout, improper subdivision, 6 parcels of inadequate shape and size to meet 7 contemporary development standards, or other 8 evidence demonstrating an absence of effective 9 community planning. 10 (M) The total equalized assessed value of the 11 proposed redevelopment project area has declined for 12 3 of the last 5 calendar years prior to the year in 13 which the redevelopment project area is designated 14 or is increasing at an annual rate that is less than 15 the balance of the municipality for 3 of the last 5 16 calendar years for which information is available or 17 is increasing at an annual rate that is less than 18 the Consumer Price Index for All Urban Consumers 19 published by the United States Department of Labor 20 or successor agency for 3 of the last 5 calendar 21 years prior to the year in which the redevelopment 22 project area is designated. 23 (2) If vacant, the sound growth of the 24 redevelopment project area is impaired by a combination 25 of 2 or more of the following factors, each of which is 26 (i) present, with that presence documented, to a 27 meaningful extent so that a municipality may reasonably 28 find that the factor is clearly present within the intent 29 of the Act and (ii) reasonably distributed throughout the 30 vacant part of the redevelopment project area: 31 (A) Obsolete platting of vacant land that 32 results in parcels of limited or narrow size or 33 configurations of parcels of irregular size or shape 34 that would be difficult to develop on a planned HB0305 Engrossed -17- LRB9101600PTpk 1 basis and in a manner compatible with contemporary 2 standards and requirements, or platting that failed 3 to create rights-of-ways for streets or alleys or 4 that created inadequate right-of-way widths for 5 streets, alleys, or other public rights-of-way or 6 that omitted easements for public utilities. 7 (B) Diversity of ownership of parcels of 8 vacant land sufficient in number to retard or impede 9 the ability to assemble the land for development. 10 (C) Tax and special assessment delinquencies 11 exist or the property has been the subject of tax 12 sales under the Property Tax Code within the last 5 13 years. 14 (D) Deterioration of structures or site 15 improvements in neighboring areas adjacent to the 16 vacant land. 17 (E) The area has incurred Illinois 18 Environmental Protection Agency or United States 19 Environmental Protection Agency remediation costs 20 for, or a study conducted by an independent 21 consultant recognized as having expertise in 22 environmental remediation has determined a need for, 23 the clean-up of hazardous waste, hazardous 24 substances, or underground storage tanks required by 25 State or federal law, provided that the remediation 26 costs constitute a material impediment to the 27 development or redevelopment of the redevelopment 28 project area. 29 (F) The total equalized assessed value of the 30 proposed redevelopment project area has declined for 31 3 of the last 5 calendar years prior to the year in 32 which the redevelopment project area is designated 33 or is increasing at an annual rate that is less than 34 the balance of the municipality for 3 of the last 5 HB0305 Engrossed -18- LRB9101600PTpk 1 calendar years for which information is available or 2 is increasing at an annual rate that is less than 3 the Consumer Price Index for All Urban Consumers 4 published by the United States Department of Labor 5 or successor agency for 3 of the last 5 calendar 6 years prior to the year in which the redevelopment 7 project area is designated. 8 (3) If vacant, the sound growth of the 9 redevelopment project area is impaired by one of the 10 following factors that (i) is present, with that presence 11 documented, to a meaningful extent so that a municipality 12 may reasonably find that the factor is clearly present 13 within the intent of the Act and (ii) is reasonably 14 distributed throughout the vacant part of the 15 redevelopment project area: 16 (A) The area consists of one or more unused 17 quarries, mines, or strip mine ponds. 18 (B) The area consists of unused railyards, 19 rail tracks, or railroad rights-of-way. 20 (C) The area, prior to its designation, is 21 subject to chronic flooding that adversely impacts 22 on real property in the area as certified by a 23 registered professional engineer or appropriate 24 regulatory agency. 25 (D) The area consists of an unused or illegal 26 disposal site containing earth, stone, building 27 debris, or similar materials that were removed from 28 construction, demolition, excavation, or dredge 29 sites. 30 (E) Prior to the effective date of this 31 amendatory Act of the 91st General Assembly, the 32 area is not less than 50 nor more than 100 acres and 33 75% of which is vacant (notwithstanding that the 34 area has been used for commercial agricultural HB0305 Engrossed -19- LRB9101600PTpk 1 purposes within 5 years prior to the designation of 2 the redevelopment project area), and the area meets 3 at least one of the factors itemized in paragraph 4 (1) of this subsection, the area has been designated 5 as a town or village center by ordinance or 6 comprehensive plan adopted prior to January 1, 1982, 7 and the area has not been developed for that 8 designated purpose. 9 (F) The area qualified as a blighted improved 10 area immediately prior to becoming vacant, unless 11 there has been substantial private investment in the 12 immediately surrounding area., if improved,13industrial, commercial and residential buildings or14improvements, because of a combination of 5 or more15of the following factors: age; dilapidation;16obsolescence; deterioration; illegal use of17individual structures; presence of structures below18minimum code standards; excessive vacancies;19overcrowding of structures and community facilities;20lack of ventilation, light or sanitary facilities;21inadequate utilities; excessive land coverage;22deleterious land use or layout; depreciation of23physical maintenance; lack of community planning, is24detrimental to the public safety, health, morals or25welfare, or if vacant, the sound growth of the26taxing districts is impaired by, (1) a combination27of 2 or more of the following factors: obsolete28platting of the vacant land; diversity of ownership29of such land; tax and special assessment30delinquencies on such land; flooding on all or part31of such vacant land; deterioration of structures or32site improvements in neighboring areas adjacent to33the vacant land, or (2) the area immediately prior34to becoming vacant qualified as a blighted improvedHB0305 Engrossed -20- LRB9101600PTpk 1area, or (3) the area consists of an unused quarry2or unused quarries, or (4) the area consists of3unused railyards, rail tracks or railroad4rights-of-way, or (5) the area, prior to its5designation, is subject to chronic flooding which6adversely impacts on real property in the area and7such flooding is substantially caused by one or more8improvements in or in proximity to the area which9improvements have been in existence for at least 510years, or (6) the area consists of an unused11disposal site, containing earth, stone, building12debris or similar material, which were removed from13construction, demolition, excavation or dredge14sites, or (7) the area is not less than 50 nor more15than 100 acres and 75% of which is vacant,16notwithstanding the fact that such area has been17used for commercial agricultural purposes within 518years prior to the designation of the redevelopment19project area, and which area meets at least one of20the factors itemized in provision (1) of this21subsection (a), and the area has been designated as22a town or village center by ordinance or23comprehensive plan adopted prior to January 1, 1982,24and the area has not been developed for that25designated purpose.26 (b) For any redevelopment project area that has been 27 designated pursuant to this Section by an ordinance adopted 28 prior to the effective date of this amendatory Act of the 29 91st General Assembly, "conservation area" shall have the 30 meaning set forth in this Section prior to the effective date 31 of this amendatory Act of the 91st General Assembly. 32 On and after the effective date of this amendatory Act of 33 the 91st General Assembly, "conservation area" means any 34 improved area within the boundaries of a redevelopment HB0305 Engrossed -21- LRB9101600PTpk 1 project area located within the territorial limits of the 2 municipality in which 50% or more of the structures in the 3 area have an age of 35 years or more. Such an area is not 4 yet a blighted area but because of a combination of 3 or more 5 of the following factorsdilapidation; obsolescence;6deterioration; illegal use of individual structures; presence7of structures below minimum code standards; abandonment;8excessive vacancies; overcrowding of structures and community9facilities; lack of ventilation, light or sanitary10facilities; inadequate utilities; excessive land coverage;11deleterious land use or layout; depreciation of physical12maintenance; lack of community planning,is detrimental to 13 the public safety, health, morals or welfare and such an area 14 may become a blighted area:.15 (1) Dilapidation. An advanced state of disrepair 16 or neglect of necessary repairs to the primary structural 17 components of buildings or improvements in such a 18 combination that a documented building condition analysis 19 determines that major repair is required or the defects 20 are so serious and so extensive that the buildings must 21 be removed. 22 (2) Obsolescence. The condition or process of 23 falling into disuse. Structures have become ill-suited 24 for the original use. 25 (3) Deterioration. With respect to buildings, 26 defects including, but not limited to, major defects in 27 the secondary building components such as doors, windows, 28 porches, gutters and downspouts, and fascia. With 29 respect to surface improvements, that the condition of 30 roadways, alleys, curbs, gutters, sidewalks, off-street 31 parking, and surface storage areas evidence 32 deterioration, including, but not limited to, surface 33 cracking, crumbling, potholes, depressions, loose paving 34 material, and weeds protruding through paved surfaces. HB0305 Engrossed -22- LRB9101600PTpk 1 (4) Presence of structures below minimum code 2 standards. All structures that do not meet the standards 3 of zoning, subdivision, building, fire, and other 4 governmental codes applicable to property, but not 5 including housing and property maintenance codes. 6 (5) Illegal use of individual structures. The use 7 of structures in violation of applicable federal, State, 8 or local laws, exclusive of those applicable to the 9 presence of structures below minimum code standards. 10 (6) Excessive vacancies. The presence of buildings 11 that are unoccupied or under-utilized and that represent 12 an adverse influence on the area because of the 13 frequency, extent, or duration of the vacancies. 14 (7) Lack of ventilation, light, or sanitary 15 facilities. The absence of adequate ventilation for 16 light or air circulation in spaces or rooms without 17 windows, or that require the removal of dust, odor, gas, 18 smoke, or other noxious airborne materials. Inadequate 19 natural light and ventilation means the absence or 20 inadequacy of skylights or windows for interior spaces or 21 rooms and improper window sizes and amounts by room area 22 to window area ratios. Inadequate sanitary facilities 23 refers to the absence or inadequacy of garbage storage 24 and enclosure, bathroom facilities, hot water and 25 kitchens, and structural inadequacies preventing ingress 26 and egress to and from all rooms and units within a 27 building. 28 (8) Inadequate utilities. Underground and overhead 29 utilities such as storm sewers and storm drainage, 30 sanitary sewers, water lines, and gas, telephone, and 31 electrical services that are shown to be inadequate. 32 Inadequate utilities are those that are: (i) of 33 insufficient capacity to serve the uses in the 34 redevelopment project area, (ii) deteriorated, HB0305 Engrossed -23- LRB9101600PTpk 1 antiquated, obsolete, or in disrepair, or (iii) lacking 2 within the redevelopment project area. 3 (9) Excessive land coverage and overcrowding of 4 structures and community facilities. The over-intensive 5 use of property and the crowding of buildings and 6 accessory facilities onto a site. Examples of problem 7 conditions warranting the designation of an area as one 8 exhibiting excessive land coverage are: the presence of 9 buildings either improperly situated on parcels or 10 located on parcels of inadequate size and shape in 11 relation to present-day standards of development for 12 health and safety and the presence of multiple buildings 13 on a single parcel. For there to be a finding of 14 excessive land coverage, these parcels must exhibit one 15 or more of the following conditions: insufficient 16 provision for light and air within or around buildings, 17 increased threat of spread of fire due to the close 18 proximity of buildings, lack of adequate or proper access 19 to a public right-of-way, lack of reasonably required 20 off-street parking, or inadequate provision for loading 21 and service. 22 (10) Deleterious land use or layout. The existence 23 of incompatible land-use relationships, buildings 24 occupied by inappropriate mixed-uses, or uses considered 25 to be noxious, offensive, or unsuitable for the 26 surrounding area. 27 (11) Lack of community planning. The proposed 28 redevelopment project area was developed prior to or 29 without the benefit or guidance of a community plan. This 30 means that the development occurred prior to the adoption 31 by the municipality of a comprehensive or other community 32 plan or that the plan was not followed at the time of the 33 area's development. This factor must be documented by 34 evidence of adverse or incompatible land-use HB0305 Engrossed -24- LRB9101600PTpk 1 relationships, inadequate street layout, improper 2 subdivision, parcels of inadequate shape and size to meet 3 contemporary development standards, or other evidence 4 demonstrating an absence of effective community planning. 5 6 (12) The area has incurred Illinois Environmental 7 Protection Agency or United States Environmental 8 Protection Agency remediation costs for, or a study 9 conducted by an independent consultant recognized as 10 having expertise in environmental remediation has 11 determined a need for, the clean-up of hazardous waste, 12 hazardous substances, or underground storage tanks 13 required by State or federal law, provided that the 14 remediation costs constitute a material impediment to the 15 development or redevelopment of the redevelopment project 16 area. 17 (13) The total equalized assessed value of the 18 proposed redevelopment project area has declined for 3 of 19 the last 5 calendar years for which information is 20 available or is increasing at an annual rate that is less 21 than the balance of the municipality for 3 of the last 5 22 calendar years for which information is available or is 23 increasing at an annual rate that is less than the 24 Consumer Price Index for All Urban Consumers published by 25 the United States Department of Labor or successor agency 26 for 3 of the last 5 calendar years for which information 27 is available. 28 (c) "Industrial park" means an area in a blighted or 29 conservation area suitable for use by any manufacturing, 30 industrial, research or transportation enterprise, of 31 facilities to include but not be limited to factories, mills, 32 processing plants, assembly plants, packing plants, 33 fabricating plants, industrial distribution centers, 34 warehouses, repair overhaul or service facilities, freight HB0305 Engrossed -25- LRB9101600PTpk 1 terminals, research facilities, test facilities or railroad 2 facilities. 3 (d) "Industrial park conservation area" means an area 4 within the boundaries of a redevelopment project area located 5 within the territorial limits of a municipality that is a 6 labor surplus municipality or within 1 1/2 miles of the 7 territorial limits of a municipality that is a labor surplus 8 municipality if the area is annexed to the municipality; 9 which area is zoned as industrial no later than at the time 10 the municipality by ordinance designates the redevelopment 11 project area, and which area includes both vacant land 12 suitable for use as an industrial park and a blighted area or 13 conservation area contiguous to such vacant land. 14 (e) "Labor surplus municipality" means a municipality in 15 which, at any time during the 6 months before the 16 municipality by ordinance designates an industrial park 17 conservation area, the unemployment rate was over 6% and was 18 also 100% or more of the national average unemployment rate 19 for that same time as published in the United States 20 Department of Labor Bureau of Labor Statistics publication 21 entitled "The Employment Situation" or its successor 22 publication. For the purpose of this subsection, if 23 unemployment rate statistics for the municipality are not 24 available, the unemployment rate in the municipality shall be 25 deemed to be the same as the unemployment rate in the 26 principal county in which the municipality is located. 27 (f) "Municipality" shall mean a city, village or 28 incorporated town. 29 (g) "Initial Sales Tax Amounts" means the amount of 30 taxes paid under the Retailers' Occupation Tax Act, Use Tax 31 Act, Service Use Tax Act, the Service Occupation Tax Act, the 32 Municipal Retailers' Occupation Tax Act, and the Municipal 33 Service Occupation Tax Act by retailers and servicemen on 34 transactions at places located in a State Sales Tax Boundary HB0305 Engrossed -26- LRB9101600PTpk 1 during the calendar year 1985. 2 (g-1) "Revised Initial Sales Tax Amounts" means the 3 amount of taxes paid under the Retailers' Occupation Tax Act, 4 Use Tax Act, Service Use Tax Act, the Service Occupation Tax 5 Act, the Municipal Retailers' Occupation Tax Act, and the 6 Municipal Service Occupation Tax Act by retailers and 7 servicemen on transactions at places located within the State 8 Sales Tax Boundary revised pursuant to Section 11-74.4-8a(9) 9 of this Act. 10 (h) "Municipal Sales Tax Increment" means an amount 11 equal to the increase in the aggregate amount of taxes paid 12 to a municipality from the Local Government Tax Fund arising 13 from sales by retailers and servicemen within the 14 redevelopment project area or State Sales Tax Boundary, as 15 the case may be, for as long as the redevelopment project 16 area or State Sales Tax Boundary, as the case may be, exist 17 over and above the aggregate amount of taxes as certified by 18 the Illinois Department of Revenue and paid under the 19 Municipal Retailers' Occupation Tax Act and the Municipal 20 Service Occupation Tax Act by retailers and servicemen, on 21 transactions at places of business located in the 22 redevelopment project area or State Sales Tax Boundary, as 23 the case may be, during the base year which shall be the 24 calendar year immediately prior to the year in which the 25 municipality adopted tax increment allocation financing. For 26 purposes of computing the aggregate amount of such taxes for 27 base years occurring prior to 1985, the Department of Revenue 28 shall determine the Initial Sales Tax Amounts for such taxes 29 and deduct therefrom an amount equal to 4% of the aggregate 30 amount of taxes per year for each year the base year is prior 31 to 1985, but not to exceed a total deduction of 12%. The 32 amount so determined shall be known as the "Adjusted Initial 33 Sales Tax Amounts". For purposes of determining the 34 Municipal Sales Tax Increment, the Department of Revenue HB0305 Engrossed -27- LRB9101600PTpk 1 shall for each period subtract from the amount paid to the 2 municipality from the Local Government Tax Fund arising from 3 sales by retailers and servicemen on transactions located in 4 the redevelopment project area or the State Sales Tax 5 Boundary, as the case may be, the certified Initial Sales Tax 6 Amounts, the Adjusted Initial Sales Tax Amounts or the 7 Revised Initial Sales Tax Amounts for the Municipal 8 Retailers' Occupation Tax Act and the Municipal Service 9 Occupation Tax Act. For the State Fiscal Year 1989, this 10 calculation shall be made by utilizing the calendar year 1987 11 to determine the tax amounts received. For the State Fiscal 12 Year 1990, this calculation shall be made by utilizing the 13 period from January 1, 1988, until September 30, 1988, to 14 determine the tax amounts received from retailers and 15 servicemen pursuant to the Municipal Retailers' Occupation 16 Tax and the Municipal Service Occupation Tax Act, which shall 17 have deducted therefrom nine-twelfths of the certified 18 Initial Sales Tax Amounts, the Adjusted Initial Sales Tax 19 Amounts or the Revised Initial Sales Tax Amounts as 20 appropriate. For the State Fiscal Year 1991, this calculation 21 shall be made by utilizing the period from October 1, 1988, 22 to June 30, 1989, to determine the tax amounts received from 23 retailers and servicemen pursuant to the Municipal Retailers' 24 Occupation Tax and the Municipal Service Occupation Tax Act 25 which shall have deducted therefrom nine-twelfths of the 26 certified Initial Sales Tax Amounts, Adjusted Initial Sales 27 Tax Amounts or the Revised Initial Sales Tax Amounts as 28 appropriate. For every State Fiscal Year thereafter, the 29 applicable period shall be the 12 months beginning July 1 and 30 ending June 30 to determine the tax amounts received which 31 shall have deducted therefrom the certified Initial Sales Tax 32 Amounts, the Adjusted Initial Sales Tax Amounts or the 33 Revised Initial Sales Tax Amounts, as the case may be. 34 (i) "Net State Sales Tax Increment" means the sum of the HB0305 Engrossed -28- LRB9101600PTpk 1 following: (a) 80% of the first $100,000 of State Sales Tax 2 Increment annually generated within a State Sales Tax 3 Boundary; (b) 60% of the amount in excess of $100,000 but not 4 exceeding $500,000 of State Sales Tax Increment annually 5 generated within a State Sales Tax Boundary; and (c) 40% of 6 all amounts in excess of $500,000 of State Sales Tax 7 Increment annually generated within a State Sales Tax 8 Boundary. If, however, a municipality established a tax 9 increment financing district in a county with a population in 10 excess of 3,000,000 before January 1, 1986, and the 11 municipality entered into a contract or issued bonds after 12 January 1, 1986, but before December 31, 1986, to finance 13 redevelopment project costs within a State Sales Tax 14 Boundary, then the Net State Sales Tax Increment means, for 15 the fiscal years beginning July 1, 1990, and July 1, 1991, 16 100% of the State Sales Tax Increment annually generated 17 within a State Sales Tax Boundary; and notwithstanding any 18 other provision of this Act, for those fiscal years the 19 Department of Revenue shall distribute to those 20 municipalities 100% of their Net State Sales Tax Increment 21 before any distribution to any other municipality and 22 regardless of whether or not those other municipalities will 23 receive 100% of their Net State Sales Tax Increment. For 24 Fiscal Year 1999, and every year thereafter until the year 25 2007, for any municipality that has not entered into a 26 contract or has not issued bonds prior to June 1, 1988 to 27 finance redevelopment project costs within a State Sales Tax 28 Boundary, the Net State Sales Tax Increment shall be 29 calculated as follows: By multiplying the Net State Sales Tax 30 Increment by 90% in the State Fiscal Year 1999; 80% in the 31 State Fiscal Year 2000; 70% in the State Fiscal Year 2001; 32 60% in the State Fiscal Year 2002; 50% in the State Fiscal 33 Year 2003; 40% in the State Fiscal Year 2004; 30% in the 34 State Fiscal Year 2005; 20% in the State Fiscal Year 2006; HB0305 Engrossed -29- LRB9101600PTpk 1 and 10% in the State Fiscal Year 2007. No payment shall be 2 made for State Fiscal Year 2008 and thereafter. 3 Municipalities that issued bonds in connection with a 4 redevelopment project in a redevelopment project area within 5 the State Sales Tax Boundary prior to July 29, 1991, or that 6 entered into contracts in connection with a redevelopment 7 project in a redevelopment project area before June 1, 1988, 8 shall continue to receive their proportional share of the 9 Illinois Tax Increment Fund distribution until the date on 10 which the redevelopment project is completed or terminated, 11 or the date on which the bonds are retired or the contracts 12 are completed, whichever date occurs first. Refunding of any 13 bonds issued prior to July 29, 1991, shall not alter the Net 14 State Sales Tax Increment. 15 (j) "State Utility Tax Increment Amount" means an amount 16 equal to the aggregate increase in State electric and gas tax 17 charges imposed on owners and tenants, other than residential 18 customers, of properties located within the redevelopment 19 project area under Section 9-222 of the Public Utilities Act, 20 over and above the aggregate of such charges as certified by 21 the Department of Revenue and paid by owners and tenants, 22 other than residential customers, of properties within the 23 redevelopment project area during the base year, which shall 24 be the calendar year immediately prior to the year of the 25 adoption of the ordinance authorizing tax increment 26 allocation financing. 27 (k) "Net State Utility Tax Increment" means the sum of 28 the following: (a) 80% of the first $100,000 of State Utility 29 Tax Increment annually generated by a redevelopment project 30 area; (b) 60% of the amount in excess of $100,000 but not 31 exceeding $500,000 of the State Utility Tax Increment 32 annually generated by a redevelopment project area; and (c) 33 40% of all amounts in excess of $500,000 of State Utility Tax 34 Increment annually generated by a redevelopment project area. HB0305 Engrossed -30- LRB9101600PTpk 1 For the State Fiscal Year 1999, and every year thereafter 2 until the year 2007, for any municipality that has not 3 entered into a contract or has not issued bonds prior to June 4 1, 1988 to finance redevelopment project costs within a 5 redevelopment project area, the Net State Utility Tax 6 Increment shall be calculated as follows: By multiplying the 7 Net State Utility Tax Increment by 90% in the State Fiscal 8 Year 1999; 80% in the State Fiscal Year 2000; 70% in the 9 State Fiscal Year 2001; 60% in the State Fiscal Year 2002; 10 50% in the State Fiscal Year 2003; 40% in the State Fiscal 11 Year 2004; 30% in the State Fiscal Year 2005; 20% in the 12 State Fiscal Year 2006; and 10% in the State Fiscal Year 13 2007. No payment shall be made for the State Fiscal Year 2008 14 and thereafter. 15 Municipalities that issue bonds in connection with the 16 redevelopment project during the period from June 1, 1988 17 until 3 years after the effective date of this Amendatory Act 18 of 1988 shall receive the Net State Utility Tax Increment, 19 subject to appropriation, for 15 State Fiscal Years after the 20 issuance of such bonds. For the 16th through the 20th State 21 Fiscal Years after issuance of the bonds, the Net State 22 Utility Tax Increment shall be calculated as follows: By 23 multiplying the Net State Utility Tax Increment by 90% in 24 year 16; 80% in year 17; 70% in year 18; 60% in year 19; and 25 50% in year 20. Refunding of any bonds issued prior to June 26 1, 1988, shall not alter the revised Net State Utility Tax 27 Increment payments set forth above. 28 (l) "Obligations" mean bonds, loans, debentures, notes, 29 special certificates or other evidence of indebtedness issued 30 by the municipality to carry out a redevelopment project or 31 to refund outstanding obligations. 32 (m) "Payment in lieu of taxes" means those estimated tax 33 revenues from real property in a redevelopment project area 34 derived from real property that has been acquired by a HB0305 Engrossed -31- LRB9101600PTpk 1 municipality which according to the redevelopment project or 2 plan is to be used for a private use which taxing districts 3 would have received had a municipality not acquired the real 4 property and adopted tax increment allocation financing and 5 which would result from levies made after the time of the 6 adoption of tax increment allocation financing to the time 7 the current equalized value of real property in the 8 redevelopment project area exceeds the total initial 9 equalized value of real property in said area. 10 (n) "Redevelopment plan" means the comprehensive program 11 of the municipality for development or redevelopment intended 12 by the payment of redevelopment project costs to reduce or 13 eliminate those conditions the existence of which qualified 14 the redevelopment project area as a "blighted area" or 15 "conservation area" or combination thereof or "industrial 16 park conservation area," and thereby to enhance the tax bases 17 of the taxing districts which extend into the redevelopment 18 project area. 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. Each redevelopment plan shall set forth in writing 29 the program to be undertaken to accomplish the objectives 30 and shall include but not be limited to: 31 (A) an itemized list of estimated redevelopment 32 project costs; 33 (B) evidence indicating that the redevelopment 34 project area on the whole has not been subject to growth HB0305 Engrossed -32- LRB9101600PTpk 1 and development through investment by private enterprise; 2 (C) an assessment of any financial impact of the 3 redevelopment project area on or any increased demand for 4 services from any taxing district affected by the plan 5 and any program to address such financial impact or 6 increased demand; 7 (D) the sources of funds to pay costs; 8 (E) the nature and term of the obligations to be 9 issued; 10 (F) the most recent equalized assessed valuation of 11 the redevelopment project area; 12 (G) an estimate as to the equalized assessed 13 valuation after redevelopment and the general land uses 14 to apply in the redevelopment project area; 15 (H) a commitment to fair employment practices and 16 an affirmative action plan; 17 (I) if it concerns an industrial park conservation 18 area, the plan shall also include a general description 19 of any proposed developer, user and tenant of any 20 property, a description of the type, structure and 21 general character of the facilities to be developed, a 22 description of the type, class and number of new 23 employees to be employed in the operation of the 24 facilities to be developed; and 25 (J) if property is to be annexed to the 26 municipality, the plan shall include the terms of the 27 annexation agreement. 28 The provisions of items (B) and (C) of this subsection 29 (n) shall not apply to a municipality that before March 14, 30 1994 (the effective date of Public Act 88-537) had fixed, 31 either by its corporate authorities or by a commission 32 designated under subsection (k) of Section 11-74.4-4, a time 33 and place for a public hearing as required by subsection (a) 34 of Section 11-74.4-5. No redevelopment plan shall be adopted HB0305 Engrossed -33- LRB9101600PTpk 1 unless a municipality complies with all of the following 2 requirements: 3 (1) The municipality finds that the redevelopment 4 project area on the whole has not been subject to growth 5 and development through investment by private enterprise 6 and would not reasonably be anticipated to be developed 7 without the adoption of the redevelopment plan. 8 (2) The municipality finds that the redevelopment 9 plan and project conform to the comprehensive plan for 10 the development of the municipality as a whole, or, for 11 municipalities with a population of 100,000 or more, 12 regardless of when the redevelopment plan and project was 13 adopted, the redevelopment plan and project either: (i) 14 conforms to the strategic economic development or 15 redevelopment plan issued by the designated planning 16 authority of the municipality, or (ii) includes land uses 17 that have been approved by the planning commission of the 18 municipality. 19 (3) The redevelopment plan establishes the 20 estimated dates of completion of the redevelopment 21 project and retirement of obligations issued to finance 22 redevelopment project costs. Those dates shall not be 23 later than December 31 of the year in which the payment 24 to the municipal treasurer as provided in subsection (b) 25 of Section 11-74.4-8 of this Act is to be made with 26 respect to ad valorem taxes levied in the twenty-third 27 calendar year after the year in which the ordinance 28 approving the redevelopment project area is adoptedmore29than 23 years from the adoption of the ordinance30approving the redevelopment project areaif the ordinance 31 was adopted on or after January 15, 1981, and not later 32 than December 31 of the year in which the payment to the 33 municipal treasurer as provided in subsection (b) of 34 Section 11-74.4-8 of this Act is to be made with respect HB0305 Engrossed -34- LRB9101600PTpk 1 to ad valorem taxes levied in the thirty-fifth calendar 2 year after the year in which the ordinance approving the 3 redevelopment project area is adoptednot more than 354yearsif the ordinance was adopted before January 15, 5 1981, or if the ordinance was adopted in April 1984 or 6 July 1985, or if the ordinance was adopted in December 7 1987 and the redevelopment project is located within one 8 mile of Midway Airport, or if the municipality is subject 9 to the Local Government Financial Planning and 10 Supervision Act, or if the ordinance was adopted on 11 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. However, for 14 redevelopment project areas for which bonds were issued 15 before July 29, 1991, or for which contracts were entered 16 into before June 1, 1988, in connection with a 17 redevelopment project in the area within the State Sales 18 Tax Boundary, the estimated dates of completion of the 19 redevelopment project and retirement of obligations to 20 finance redevelopment project costs may be extended by 21 municipal ordinance to December 31, 2013. The extension 22 allowed by this amendatory Act of 1993 shall not apply to 23 real property tax increment allocation financing under 24 Section 11-74.4-8. A municipality may by municipal 25 ordinance amend an existing redevelopment plan to conform 26 to this paragraph (3) as amended by this amendatory Act 27 of the 91st General Assembly, which municipal ordinance 28 may be adopted without further hearing or notice and 29 without complying with the procedures provided in this 30 Act pertaining to an amendment to or the initial approval 31 of a redevelopment plan and project and designation of a 32 redevelopment project area. 33 Those dates, for purposes of real property tax 34 increment allocation financing pursuant to Section HB0305 Engrossed -35- LRB9101600PTpk 1 11-74.4-8 only, shall be not more than 35 years for 2 redevelopment project areas that were adopted on or after 3 December 16, 1986 and for which at least $8 million worth 4 of municipal bonds were authorized on or after December 5 19, 1989 but before January 1, 1990; provided that the 6 municipality elects to extend the life of the 7 redevelopment project area to 35 years by the adoption of 8 an ordinance after at least 14 but not more than 30 days' 9 written notice to the taxing bodies, that would otherwise 10 constitute the joint review board for the redevelopment 11 project area, before the adoption of the ordinance. 12 Those dates, for purposes of real property tax 13 increment allocation financing pursuant to Section 14 11-74.4-8 only, shall be not more than 35 years for 15 redevelopment project areas that were established on or 16 after December 1, 1981 but before January 1, 1982 and for 17 which at least $1,500,000 worth of tax increment revenue 18 bonds were authorized on or after September 30, 1990 but 19 before July 1, 1991; provided that the municipality 20 elects to extend the life of the redevelopment project 21 area to 35 years by the adoption of an ordinance after at 22 least 14 but not more than 30 days' written notice to the 23 taxing bodies, that would otherwise constitute the joint 24 review board for the redevelopment project area, before 25 the adoption of the ordinance. 26 (3.5)(4)The municipality finds, in the case of an 27 industrial park conservation area, also that the 28 municipality is a labor surplus municipality and that the 29 implementation of the redevelopment plan will reduce 30 unemployment, create new jobs and by the provision of new 31 facilities enhance the tax base of the taxing districts 32 that extend into the redevelopment project area. 33 (4)(5)If any incremental revenues are being 34 utilized under Section 8(a)(1) or 8(a)(2) of this Act in HB0305 Engrossed -36- LRB9101600PTpk 1 redevelopment project areas approved by ordinance after 2 January 1, 1986, the municipality finds: (a) that the 3 redevelopment project area would not reasonably be 4 developed without the use of such incremental revenues, 5 and (b) that such incremental revenues will be 6 exclusively utilized for the development of the 7 redevelopment project area. 8 (5) On and after the effective date of this 9 amendatory Act of the 91st General Assembly, if the 10 redevelopment plan will not result in displacement of 11 residents from inhabited units, and the municipality 12 certifies in the plan that displacement will not result 13 from the plan, a housing impact study need not be 14 performed. If, however, the redevelopment plan would 15 result in the displacement of residents from 10 or more 16 inhabited residential units, or if the redevelopment 17 project area contains 75 or more inhabited residential 18 units and no certification is made, then the municipality 19 shall prepare, as part of the separate feasibility report 20 required by subsection (a) of Section 11-74.4-5, a 21 housing impact study. 22 Part I of the housing impact study shall include (i) 23 data as to whether the residential units are single 24 family or multi-family units, (ii) the number and type of 25 rooms within the units, if that information is available, 26 (iii) whether the units are inhabited or uninhabited, as 27 determined not less than 45 days before the date that the 28 ordinance or resolution required by subsection (a) of 29 Section 11-74.4-5 is passed, and (iv) data as to the 30 racial and ethnic composition of the residents in the 31 inhabited residential units. The data requirement as to 32 the racial and ethnic composition of the residents in the 33 inhabited residential units shall be deemed to be fully 34 satisfied by data from the most recent federal census. HB0305 Engrossed -37- LRB9101600PTpk 1 Part II of the housing impact study shall identify 2 the inhabited residential units in the proposed 3 redevelopment project area that are to be or may be 4 removed. If inhabited residential units are to be 5 removed, then the housing impact study shall identify (i) 6 the number and location of those units that will or may 7 be removed, (ii) the municipality's plans for relocation 8 assistance for those residents in the proposed 9 redevelopment project area whose residences are to be 10 removed, (iii) the availability of replacement housing 11 for those residents whose residences are to be removed, 12 and shall identify the type, location, and cost of the 13 housing, and (iv) the type and extent of relocation 14 assistance to be provided. 15 (6) On and after the effective date of this 16 amendatory Act of the 91st General Assembly, the housing 17 impact study required by paragraph (5) shall be 18 incorporated in the redevelopment plan for the 19 redevelopment project area. 20 (7) On and after the effective date of this 21 amendatory Act of the 91st General Assembly, no 22 redevelopment plan shall be adopted, nor an existing plan 23 amended, nor shall residential housing that is occupied 24 by households of low-income and very low-income persons 25 in currently existing redevelopment project areas be 26 removed after the effective date of this amendatory Act 27 of the 91st General Assembly unless the redevelopment 28 plan provides, with respect to inhabited housing units 29 that are to be removed for households of low-income and 30 very low-income persons, affordable housing and 31 relocation assistance not less than that which would be 32 provided under the federal Uniform Relocation Assistance 33 and Real Property Acquisition Policies Act of 1970 and 34 the regulations under that Act, including the eligibility HB0305 Engrossed -38- LRB9101600PTpk 1 criteria. Affordable housing may be either existing or 2 newly constructed housing. For purposes of this paragraph 3 (7), "low-income households", "very low-income 4 households", and "affordable housing" have the meanings 5 set forth in the Illinois Affordable Housing Act. The 6 municipality shall make a good faith effort to ensure 7 that this affordable housing is located in or near the 8 redevelopment project area within the municipality. 9 (8) On and after the effective date of this 10 amendatory Act of the 91st General Assembly, if, after 11 the adoption of the redevelopment plan for the 12 redevelopment project area, any municipality desires to 13 amend its redevelopment plan to remove more inhabited 14 residential units than specified in its original 15 redevelopment plan, that increase in the number of units 16 to be removed shall be deemed to be a change in the 17 nature of the redevelopment plan as to require compliance 18 with the procedures in this Act pertaining to the initial 19 approval of a redevelopment plan. 20 (o) "Redevelopment project" means any public and private 21 development project in furtherance of the objectives of a 22 redevelopment plan. On and after the effective date of this 23 amendatory Act of the 91st General Assembly, no redevelopment 24 plan may be approved or amended that includes the development 25 of vacant land (i) with a golf course and related clubhouse 26 and other facilities or (ii) designated by federal, State, 27 county, or municipal government as public land for outdoor 28 recreational activities or for nature preserves and used for 29 that purpose within 5 years prior to the adoption of the 30 redevelopment plan. For the purpose of this subsection, 31 "recreational activities" is limited to mean camping and 32 hunting. 33 (p) "Redevelopment project area" means an area 34 designated by the municipality, which is not less in the HB0305 Engrossed -39- LRB9101600PTpk 1 aggregate than 1 1/2 acres and in respect to which the 2 municipality has made a finding that there exist conditions 3 which cause the area to be classified as an industrial park 4 conservation area or a blighted area or a conservation area, 5 or a combination of both blighted areas and conservation 6 areas. 7 (q) "Redevelopment project costs" mean and include the 8 sum total of all reasonable or necessary costs incurred or 9 estimated to be incurred, and any such costs incidental to a 10 redevelopment plan and a redevelopment project. Such costs 11 include, without limitation, the following: 12 (1) Costs of studies, surveys, development of 13 plans, and specifications, implementation and 14 administration of the redevelopment plan including but 15 not limited to staff and professional service costs for 16 architectural, engineering, legal,marketing,financial, 17 planning or other services, provided however that no 18 charges for professional services may be based on a 19 percentage of the tax increment collected; except that on 20 and after the effective date of this amendatory Act of 21 the 91st General Assembly, no contracts for professional 22 services, excluding architectural and engineering 23 services, may be entered into if the terms of the 24 contract extend beyond a period of 3 years. In addition, 25 "redevelopment project costs" shall not include lobbying 26 expenses. After consultation with the municipality, each 27 tax increment consultant or advisor to a municipality 28 that plans to designate or has designated a redevelopment 29 project area shall inform the municipality in writing of 30 any contracts that the consultant or advisor has entered 31 into with entities or individuals that have received, or 32 are receiving, payments financed by tax increment 33 revenues produced by the redevelopment project area with 34 respect to which the consultant or advisor has performed, HB0305 Engrossed -40- LRB9101600PTpk 1 or will be performing, service for the municipality. 2 This requirement shall be satisfied by the consultant or 3 advisor before the commencement of services for the 4 municipality and thereafter whenever any other contracts 5 with those individuals or entities are executed by the 6 consultant or advisor; 7 (1.5) After July 1, 1999, annual administrative 8 costs shall not include general overhead or 9 administrative costs of the municipality that would still 10 have been incurred by the municipality if the 11 municipality had not designated a redevelopment project 12 area or approved a redevelopment plan; 13 (1.6) The cost of marketing sites within the 14 redevelopment project area to prospective businesses, 15 developers, and investors; 16 (2) Property assembly costs, including but not 17 limited to acquisition of land and other property, real 18 or personal, or rights or interests therein, demolition 19 of buildings, site preparation, site improvements that 20 serve as an engineered barrier addressing ground level or 21 below ground environmental contamination, including, but 22 not limited to parking lots and other concrete or asphalt 23 barriers, and the clearing and grading of land; 24 (3) Costs of rehabilitation, reconstruction or 25 repair or remodeling of existing public or private 26 buildings,andfixtures, and leasehold improvements; and 27 the cost of replacing an existing public building if 28 pursuant to the implementation of a redevelopment project 29 the existing public building is to be demolished to use 30 the site for private investment or devoted to a different 31 use requiring private investment; 32 (4) Costs of the construction of public works or 33 improvements, except that on and after the effective date 34 of this amendatory Act of the 91st General Assembly, HB0305 Engrossed -41- LRB9101600PTpk 1 redevelopment project costs shall not include the cost of 2 constructing a new municipal public building principally 3 used to provide offices, storage space, or conference 4 facilities or vehicle storage, maintenance, or repair for 5 administrative, public safety, or public works personnel 6 and that is not intended to replace an existing public 7 building as provided under paragraph (3) of subsection 8 (q) of Section 11-74.4-3 unless either (i) the 9 construction of the new municipal building implements a 10 redevelopment project that was included in a 11 redevelopment plan that was adopted by the municipality 12 prior to the effective date of this amendatory Act of the 13 91st General Assembly or (ii) the municipality makes a 14 reasonable determination in the redevelopment plan, 15 supported by information that provides the basis for that 16 determination, that the new municipal building is 17 required to meet an increase in the need for public 18 safety purposes anticipated to result from the 19 implementation of the redevelopment plan; 20 (5) Costs of job training and retraining projects, 21 including the cost of "welfare to work" programs 22 implemented by businesses located within the 23 redevelopment project area; 24 (6) Financing costs, including but not limited to 25 all necessary and incidental expenses related to the 26 issuance of obligations and which may include payment of 27 interest on any obligations issued hereunder including 28 interest accruing during the estimated period of 29 construction of any redevelopment project for which such 30 obligations are issued and for not exceeding 36 months 31 thereafter and including reasonable reserves related 32 thereto; 33 (7) To the extent the municipality by written 34 agreement accepts and approves the same, all or a portion HB0305 Engrossed -42- LRB9101600PTpk 1 of a taxing district's capital costs resulting from the 2 redevelopment project necessarily incurred or to be 3 incurred within a taxing district in furtherance of the 4 objectives of the redevelopment plan and project. 5 (7.5) For redevelopment project areas designated 6 (or redevelopment project areas amended to add or 7 increase the number of tax-increment-financing assisted 8 housing units) on or after the effective date of this 9 amendatory Act of the 91st General Assembly, an 10 elementary, secondary, or unit school district's 11 increased costs attributable to assisted housing units 12 located within the redevelopment project area for which 13 the developer or redeveloper receives financial 14 assistance through an agreement with the municipality or 15 because the municipality incurs the cost of necessary 16 infrastructure improvements within the boundaries of the 17 assisted housing sites necessary for the completion of 18 that housing as authorized by this Act, and which costs 19 shall be paid by the municipality from the Special Tax 20 Allocation Fund when the tax increment revenue is 21 received as a result of the assisted housing units and 22 shall be calculated annually as follows: 23 (A) for foundation districts, excluding any 24 school district in a municipality with a population 25 in excess of 1,000,000, by multiplying the 26 district's increase in attendance resulting from the 27 net increase in new students enrolled in that school 28 district who reside in housing units within the 29 redevelopment project area that have received 30 financial assistance through an agreement with the 31 municipality or because the municipality incurs the 32 cost of necessary infrastructure improvements within 33 the boundaries of the housing sites necessary for 34 the completion of that housing as authorized by this HB0305 Engrossed -43- LRB9101600PTpk 1 Act since the designation of the redevelopment 2 project area by the most recently available per 3 capita tuition cost as defined in Section 10-20.12a 4 of the School Code less any increase in general 5 State aid as defined in Section 18-8.05 of the 6 School Code attributable to these added new students 7 subject to the following annual limitations: 8 (i) for unit school districts with a 9 district average 1995-96 Per Capita Tuition 10 Charge of less than $5,900, no more than 25% of 11 the total amount of property tax increment 12 revenue produced by those housing units that 13 have received tax increment finance assistance 14 under this Act; 15 (ii) for elementary school districts with 16 a district average 1995-96 Per Capita Tuition 17 Charge of less than $5,900, no more than 17% of 18 the total amount of property tax increment 19 revenue produced by those housing units that 20 have received tax increment finance assistance 21 under this Act; and 22 (iii) for secondary school districts with 23 a district average 1995-96 Per Capita Tuition 24 Charge of less than $5,900, no more than 8% of 25 the total amount of property tax increment 26 revenue produced by those housing units that 27 have received tax increment finance assistance 28 under this Act. 29 (B) For alternate method districts, flat grant 30 districts, and foundation districts with a district 31 average 1995-96 Per Capita Tuition Charge equal to 32 or more than $5,900, excluding any school district 33 with a population in excess of 1,000,000, by 34 multiplying the district's increase in attendance HB0305 Engrossed -44- LRB9101600PTpk 1 resulting from the net increase in new students 2 enrolled in that school district who reside in 3 housing units within the redevelopment project area 4 that have received financial assistance through an 5 agreement with the municipality or because the 6 municipality incurs the cost of necessary 7 infrastructure improvements within the boundaries of 8 the housing sites necessary for the completion of 9 that housing as authorized by this Act since the 10 designation of the redevelopment project area by the 11 most recently available per capita tuition cost as 12 defined in Section 10-20.12a of the School Code less 13 any increase in general state aid as defined in 14 Section 18-8.05 of the School Code attributable to 15 these added new students subject to the following 16 annual limitations: 17 (i) for unit school districts, no more 18 than 40% of the total amount of property tax 19 increment revenue produced by those housing 20 units that have received tax increment finance 21 assistance under this Act; 22 (ii) for elementary school districts, no 23 more than 27% of the total amount of property 24 tax increment revenue produced by those housing 25 units that have received tax increment finance 26 assistance under this Act; and 27 (iii) for secondary school districts, no 28 more than 13% of the total amount of property 29 tax increment revenue produced by those housing 30 units that have received tax increment finance 31 assistance under this Act. 32 (C) For any school district in a municipality 33 with a population in excess of 1,000,000, the 34 following restrictions shall apply to the HB0305 Engrossed -45- LRB9101600PTpk 1 reimbursement of increased costs under this 2 paragraph (7.5): 3 (i) no increased costs shall be 4 reimbursed unless the school district certifies 5 that each of the schools affected by the 6 assisted housing project is at or over its 7 student capacity; 8 (ii) the amount reimburseable shall be 9 reduced by the value of any land donated to the 10 school district by the municipality or 11 developer, and by the value of any physical 12 improvements made to the schools by the 13 municipality or developer; and 14 (iii) the amount reimbursed may not 15 affect amounts otherwise obligated by the terms 16 of any bonds, notes, or other funding 17 instruments, or the terms of any redevelopment 18 agreement. 19 Any school district seeking payment under this 20 paragraph (7.5) shall, after July 1 and before 21 September 30 of each year, provide the municipality 22 with reasonable evidence to support its claim for 23 reimbursement before the municipality shall be 24 required to approve or make the payment to the 25 school district. If the school district fails to 26 provide the information during this period in any 27 year, it shall forfeit any claim to reimbursement 28 for that year. School districts may adopt a 29 resolution waiving the right to all or a portion of 30 the reimbursement otherwise required by this 31 paragraph (7.5). By acceptance of this 32 reimbursement the school district waives the right 33 to directly or indirectly set aside, modify, or 34 contest in any manner the establishment of the HB0305 Engrossed -46- LRB9101600PTpk 1 redevelopment project area or projectsAll or a2portion of a taxing district's capital costs3resulting from the redevelopment project necessarily4incurred or to be incurred in furtherance of the5objectives of the redevelopment plan and project, to6the extent the municipality by written agreement7accepts and approves such costs; 8 (8) Relocation costs to the extent that a 9 municipality determines that relocation costs shall be 10 paid or is required to make payment of relocation costs 11 by federal or State law or in order to satisfy 12 subparagraph (7) of subsection (n); 13 (9) Payment in lieu of taxes; 14 (10) Costs of job training, retraining, advanced 15 vocational education or career education, including but 16 not limited to courses in occupational, semi-technical or 17 technical fields leading directly to employment, incurred 18 by one or more taxing districts, provided that such costs 19 (i) are related to the establishment and maintenance of 20 additional job training, advanced vocational education or 21 career education programs for persons employed or to be 22 employed by employers located in a redevelopment project 23 area; and (ii) when incurred by a taxing district or 24 taxing districts other than the municipality, are set 25 forth in a written agreement by or among the municipality 26 and the taxing district or taxing districts, which 27 agreement describes the program to be undertaken, 28 including but not limited to the number of employees to 29 be trained, a description of the training and services to 30 be provided, the number and type of positions available 31 or to be available, itemized costs of the program and 32 sources of funds to pay for the same, and the term of the 33 agreement. Such costs include, specifically, the payment 34 by community college districts of costs pursuant to HB0305 Engrossed -47- LRB9101600PTpk 1 Sections 3-37, 3-38, 3-40 and 3-40.1 of the Public 2 Community College Act and by school districts of costs 3 pursuant to Sections 10-22.20a and 10-23.3a of The School 4 Code; 5 (11) Interest cost incurred by a redeveloper 6 related to the construction, renovation or rehabilitation 7 of a redevelopment project provided that: 8 (A) such costs are to be paid directly from 9 the special tax allocation fund established pursuant 10 to this Act;and11 (B) such payments in any one year may not 12 exceed 30% of the annual interest costs incurred by 13 the redeveloper with regard to the redevelopment 14 project during that year; 15 (C) if there are not sufficient funds 16 available in the special tax allocation fund to make 17 the payment pursuant to this paragraph (11) then the 18 amounts so due shall accrue and be payable when 19 sufficient funds are available in the special tax 20 allocation fund;and21 (D) the total of such interest payments paid 22 pursuant to this Act may not exceed 30% of the total 23 (i) cost paid or incurred by the redeveloper for the 24 redevelopment project plus (ii) redevelopment 25 project costs excluding any property assembly costs 26 and any relocation costs incurred by a municipality 27 pursuant to this Act; and.28 (E) the cost limits set forth in subparagraphs 29 (B) and (D) of paragraph (11) shall be modified for 30 the financing of rehabilitated or new housing units 31 for low-income households and very low-income 32 households, as defined in Section 3 of the Illinois 33 Affordable Housing Act. The percentage of 75% shall 34 be substituted for 30% in subparagraphs (B) and (D) HB0305 Engrossed -48- LRB9101600PTpk 1 of paragraph (11). 2 (F) Instead of the eligible costs provided by 3 subparagraphs (B) and (D) of paragraph (11), as 4 modified by this subparagraph, and notwithstanding 5 any other provisions of this Act to the contrary, 6 the municipality may pay from tax increment revenues 7 up to 50% of the cost of construction of new housing 8 units to be occupied by low-income households and 9 very low-income households as defined in Section 3 10 of the Illinois Affordable Housing Act. The cost of 11 construction of those units may be derived from the 12 proceeds of bonds issued by the municipality under 13 this Act or other constitutional or statutory 14 authority or from other sources of municipal revenue 15 that may be reimbursed from tax increment revenues 16 or the proceeds of bonds issued to finance the 17 construction of that housing. 18 The eligible costs provided under this 19 subparagraph (F) of paragraph (11) shall be an 20 eligible cost for the construction, renovation, and 21 rehabilitation of all low and very low-income 22 housing units, as defined in Section 3 of the 23 Illinois Affordable Housing Act, within the 24 redevelopment project area. If the low and very 25 low-income units are part of a residential 26 redevelopment project that includes units not 27 affordable to low and very low-income households, 28 only the low and very low-income units shall be 29 eligible for benefits under subparagraph (F) of 30 paragraph (11). The standards for maintaining the 31 occupancy by low-income households and very 32 low-income households, as defined in Section 3 of 33 the Illinois Affordable Housing Act, of those units 34 constructed with eligible costs made available under HB0305 Engrossed -49- LRB9101600PTpk 1 the provisions of this subparagraph (F) of paragraph 2 (11) shall be established by guidelines adopted by 3 the municipality. The responsibility for annually 4 documenting the initial occupancy of the units by 5 low-income households and very low-income 6 households, as defined in Section 3 of the Illinois 7 Affordable Housing Act, shall be that of the then 8 current owner of the property. For ownership units, 9 the guidelines will provide, at a minimum, for a 10 reasonable recapture of funds, or other appropriate 11 methods designed to preserve the original 12 affordability of the ownership units. For rental 13 units, the guidelines will provide, at a minimum, 14 for the affordability of rent to low and very 15 low-income households. As units become available, 16 they shall be rented to income-eligible tenants. 17 The municipality may modify these guidelines from 18 time to time; the guidelines, however, shall be in 19 effect for as long as tax increment revenue is being 20 used to pay for costs associated with the units or 21 for the retirement of bonds issued to finance the 22 units or for the life of the redevelopment project 23 area, whichever is later. 24 (11.5) Cost of day care services for children of 25 employees from low-income families working for businesses 26 located within the redevelopment project area and all or 27 a portion of the cost of operation of day care centers 28 established by redevelopment project area businesses to 29 serve employees from low-income families working in 30 businesses located in the redevelopment project area. 31 For the purposes of this paragraph, "low-income families" 32 means families whose annual income does not exceed 80% of 33 the municipal, county, or regional median income, 34 adjusted for family size, as the annual income and HB0305 Engrossed -50- LRB9101600PTpk 1 municipal, county, or regional median income are 2 determined from time to time by the United States 3 Department of Housing and Urban Development. 4 (12) Unless explicitly stated herein the cost of 5 construction of new privately-owned buildings shall not 6 be an eligible redevelopment project cost. 7 (13) After the effective date of this amendatory 8 Act of the 91st General Assembly, none of the 9 redevelopment project costs enumerated in this subsection 10 shall be eligible redevelopment project costs if those 11 costs would provide direct financial support to a retail 12 entity initiating operations in the redevelopment project 13 area while terminating operations at another Illinois 14 location within 10 miles of the redevelopment project 15 area but outside the boundaries of the redevelopment 16 project area municipality. For purposes of this 17 paragraph, termination means a closing of a retail 18 operation that is directly related to the opening of the 19 same operation or like retail entity owned or operated by 20 more than 50% of the original ownership in a 21 redevelopment project area, but it does not mean closing 22 an operation for reasons beyond the control of the retail 23 entity, as documented by the retail entity, subject to a 24 reasonable finding by the municipality that the current 25 location contained inadequate space, had become 26 economically obsolete, or was no longer a viable location 27 for the retailer or serviceman. 28 If a special service area has been established pursuant 29 to the Special Service Area Tax Act or Special Service Area 30 Tax Law, then any tax increment revenues derived from the tax 31 imposed pursuant to the Special Service Area Tax Act or 32 Special Service Area Tax Law may be used within the 33 redevelopment project area for the purposes permitted by that 34 Act or Law as well as the purposes permitted by this Act. HB0305 Engrossed -51- LRB9101600PTpk 1 (r) "State Sales Tax Boundary" means the redevelopment 2 project area or the amended redevelopment project area 3 boundaries which are determined pursuant to subsection (9) of 4 Section 11-74.4-8a of this Act. The Department of Revenue 5 shall certify pursuant to subsection (9) of Section 6 11-74.4-8a the appropriate boundaries eligible for the 7 determination of State Sales Tax Increment. 8 (s) "State Sales Tax Increment" means an amount equal to 9 the increase in the aggregate amount of taxes paid by 10 retailers and servicemen, other than retailers and servicemen 11 subject to the Public Utilities Act, on transactions at 12 places of business located within a State Sales Tax Boundary 13 pursuant to the Retailers' Occupation Tax Act, the Use Tax 14 Act, the Service Use Tax Act, and the Service Occupation Tax 15 Act, except such portion of such increase that is paid into 16 the State and Local Sales Tax Reform Fund, the Local 17 Government Distributive Fund, the Local Government Tax 18 Fund and the County and Mass Transit District Fund, for as 19 long as State participation exists, over and above the 20 Initial Sales Tax Amounts, Adjusted Initial Sales Tax Amounts 21 or the Revised Initial Sales Tax Amounts for such taxes as 22 certified by the Department of Revenue and paid under those 23 Acts by retailers and servicemen on transactions at places of 24 business located within the State Sales Tax Boundary during 25 the base year which shall be the calendar year immediately 26 prior to the year in which the municipality adopted tax 27 increment allocation financing, less 3.0% of such amounts 28 generated under the Retailers' Occupation Tax Act, Use Tax 29 Act and Service Use Tax Act and the Service Occupation Tax 30 Act, which sum shall be appropriated to the Department of 31 Revenue to cover its costs of administering and enforcing 32 this Section. For purposes of computing the aggregate amount 33 of such taxes for base years occurring prior to 1985, the 34 Department of Revenue shall compute the Initial Sales Tax HB0305 Engrossed -52- LRB9101600PTpk 1 Amount for such taxes and deduct therefrom an amount equal to 2 4% of the aggregate amount of taxes per year for each year 3 the base year is prior to 1985, but not to exceed a total 4 deduction of 12%. The amount so determined shall be known as 5 the "Adjusted Initial Sales Tax Amount". For purposes of 6 determining the State Sales Tax Increment the Department of 7 Revenue shall for each period subtract from the tax amounts 8 received from retailers and servicemen on transactions 9 located in the State Sales Tax Boundary, the certified 10 Initial Sales Tax Amounts, Adjusted Initial Sales Tax Amounts 11 or Revised Initial Sales Tax Amounts for the Retailers' 12 Occupation Tax Act, the Use Tax Act, the Service Use Tax Act 13 and the Service Occupation Tax Act. For the State Fiscal 14 Year 1989 this calculation shall be made by utilizing the 15 calendar year 1987 to determine the tax amounts received. For 16 the State Fiscal Year 1990, this calculation shall be made by 17 utilizing the period from January 1, 1988, until September 18 30, 1988, to determine the tax amounts received from 19 retailers and servicemen, which shall have deducted therefrom 20 nine-twelfths of the certified Initial Sales Tax Amounts, 21 Adjusted Initial Sales Tax Amounts or the Revised Initial 22 Sales Tax Amounts as appropriate. For the State Fiscal Year 23 1991, this calculation shall be made by utilizing the period 24 from October 1, 1988, until June 30, 1989, to determine the 25 tax amounts received from retailers and servicemen, which 26 shall have deducted therefrom nine-twelfths of the certified 27 Initial State Sales Tax Amounts, Adjusted Initial Sales Tax 28 Amounts or the Revised Initial Sales Tax Amounts as 29 appropriate. For every State Fiscal Year thereafter, the 30 applicable period shall be the 12 months beginning July 1 and 31 ending on June 30, to determine the tax amounts received 32 which shall have deducted therefrom the certified Initial 33 Sales Tax Amounts, Adjusted Initial Sales Tax Amounts or the 34 Revised Initial Sales Tax Amounts. Municipalities intending HB0305 Engrossed -53- LRB9101600PTpk 1 to receive a distribution of State Sales Tax Increment must 2 report a list of retailers to the Department of Revenue by 3 October 31, 1988 and by July 31, of each year thereafter. 4 (t) "Taxing districts" means counties, townships, cities 5 and incorporated towns and villages, school, road, park, 6 sanitary, mosquito abatement, forest preserve, public health, 7 fire protection, river conservancy, tuberculosis sanitarium 8 and any other municipal corporations or districts with the 9 power to levy taxes. 10 (u) "Taxing districts' capital costs" means those costs 11 of taxing districts for capital improvements that are found 12 by the municipal corporate authorities to be necessary and 13 directly result from the redevelopment project. 14 (v) As used in subsection (a) of Section 11-74.4-3 of 15 this Act, "vacant land" means any parcel or combination of 16 parcels of real property without industrial, commercial, and 17 residential buildings which has not been used for commercial 18 agricultural purposes within 5 years prior to the designation 19 of the redevelopment project area, unless the parcel is 20 included in an industrial park conservation area or the 21 parcel has been subdivided; provided that if the parcel was 22 part of a larger tract that has been divided into 3 or more 23 smaller tracts that were accepted for recording during the 24 period from 1950 to 1990, then the parcel shall be deemed to 25 have been subdivided, and all proceedings and actions of the 26 municipality taken in that connection with respect to any 27 previously approved or designated redevelopment project area 28 or amended redevelopment project area are hereby validated 29 and hereby declared to be legally sufficient for all purposes 30 of this Act. For purposes of this Section and only for land 31 subject to the subdivision requirements of the Plat Act, land 32 is subdivided when the original plat of the proposed 33 Redevelopment Project Area or relevant portion thereof has 34 been properly certified, acknowledged, approved, and recorded HB0305 Engrossed -54- LRB9101600PTpk 1 or filed in accordance with the Plat Act and a preliminary 2 plat, if any, for any subsequent phases of the proposed 3 Redevelopment Project Area or relevant portion thereof has 4 been properly approved and filed in accordance with the 5 applicable ordinance of the municipality. 6 (w) "Annual Total Increment" means the sum of each 7 municipality's annual Net Sales Tax Increment and each 8 municipality's annual Net Utility Tax Increment. The ratio 9 of the Annual Total Increment of each municipality to the 10 Annual Total Increment for all municipalities, as most 11 recently calculated by the Department, shall determine the 12 proportional shares of the Illinois Tax Increment Fund to be 13 distributed to each municipality. 14 (Source: P.A. 89-235, eff. 8-4-95; 89-705, eff. 1-31-97; 15 90-379, eff. 8-14-97.) 16 (65 ILCS 5/11-74.4-4) (from Ch. 24, par. 11-74.4-4) 17 Sec. 11-74.4-4. Municipal powers and duties; 18 redevelopment project areas. A municipality may: 19 (a) By ordinance introduced in the governing body of the 20 municipality within 14 to 90 days from the completion of the 21 hearing specified in Section 11-74.4-5 approve redevelopment 22 plans and redevelopment projects, and designate redevelopment 23 project areas pursuant to notice and hearing required by this 24 Act. No redevelopment project area shall be designated 25 unless a plan and project are approved prior to the 26 designation of such area and such area shall include only 27 those contiguous parcels of real property and improvements 28 thereon substantially benefited by the proposed redevelopment 29 project improvements. Upon adoption of the ordinances, the 30 municipality shall forthwith transmit to the county clerk of 31 the county or counties within which the redevelopment project 32 area is located a certified copy of the ordinances, a legal 33 description of the redevelopment project area, a map of the HB0305 Engrossed -55- LRB9101600PTpk 1 redevelopment project area, identification of the year that 2 the county clerk shall use for determining the total initial 3 equalized assessed value of the redevelopment project area 4 consistent with subsection (a) of Section 11-74.4-9, and a 5 list of the parcel or tax identification number of each 6 parcel of property included in the redevelopment project 7 area. 8 (b) Make and enter into all contracts with property 9 owners, developers, tenants, overlapping taxing bodies, and 10 others necessary or incidental to the implementation and 11 furtherance of its redevelopment plan and project. 12 (c) Within a redevelopment project area, acquire by 13 purchase, donation, lease or eminent domain; own, convey, 14 lease, mortgage or dispose of land and other property, real 15 or personal, or rights or interests therein, and grant or 16 acquire licenses, easements and options with respect thereto, 17 all in the manner and at such price the municipality 18 determines is reasonably necessary to achieve the objectives 19 of the redevelopment plan and project. No conveyance, lease, 20 mortgage, disposition of land or other property owned by a 21 municipality, or agreement relating to the development of 22 such municipaltheproperty shall be made except upon the 23 adoption of an ordinance by the corporate authorities of the 24 municipality. Furthermore, no conveyance, lease, mortgage, or 25 other disposition of land owned by a municipality or 26 agreement relating to the development of such municipal 27 property shall be made without making public disclosure of 28 the terms of the disposition and all bids and proposals made 29 in response to the municipality's request. The procedures 30 for obtaining such bids and proposals shall provide 31 reasonable opportunity for any person to submit alternative 32 proposals or bids. 33 (d) Within a redevelopment project area, clear any area 34 by demolition or removal of any existing buildings and HB0305 Engrossed -56- LRB9101600PTpk 1 structures. 2 (e) Within a redevelopment project area, renovate or 3 rehabilitate or construct any structure or building, as 4 permitted under this Act. 5 (f) Install, repair, construct, reconstruct or relocate 6 streets, utilities and site improvements essential to the 7 preparation of the redevelopment area for use in accordance 8 with a redevelopment plan. 9 (g) Within a redevelopment project area, fix, charge and 10 collect fees, rents and charges for the use of any building 11 or property owned or leased by it or any part thereof, or 12 facility therein. 13 (h) Accept grants, guarantees and donations of property, 14 labor, or other things of value from a public or private 15 source for use within a project redevelopment area. 16 (i) Acquire and construct public facilities within a 17 redevelopment project area, as permitted under this Act. 18 (j) Incur project redevelopment costs and reimburse 19 developers who incur redevelopment project costs authorized 20 by a redevelopment agreement; provided, however, that on and 21 after the effective date of this amendatory Act of the 91st 22 General Assembly, no municipality shall incur redevelopment 23 project costs (except for planning costs and any other 24 eligible costs authorized by municipal ordinance or 25 resolution that are subsequently included in the 26 redevelopment plan for the area and are incurred by the 27 municipality after the ordinance or resolution is adopted) 28 that are not consistent with the program for accomplishing 29 the objectives of the redevelopment plan as included in that 30 plan and approved by the municipality until the municipality 31 has amended the redevelopment plan as provided elsewhere in 32 this Act. 33 (k) Create a commission of not less than 5 or more than 34 15 persons to be appointed by the mayor or president of the HB0305 Engrossed -57- LRB9101600PTpk 1 municipality with the consent of the majority of the 2 governing board of the municipality. Members of a commission 3 appointed after the effective date of this amendatory Act of 4 1987 shall be appointed for initial terms of 1, 2, 3, 4 and 5 5 years, respectively, in such numbers as to provide that the 6 terms of not more than 1/3 of all such members shall expire 7 in any one year. Their successors shall be appointed for a 8 term of 5 years. The commission, subject to approval of the 9 corporate authorities may exercise the powers enumerated in 10 this Section. The commission shall also have the power to 11 hold the public hearings required by this division and make 12 recommendations to the corporate authorities concerning the 13 adoption of redevelopment plans, redevelopment projects and 14 designation of redevelopment project areas. 15 (l) Make payment in lieu of taxes or a portion thereof 16 to taxing districts. If payments in lieu of taxes or a 17 portion thereof are made to taxing districts, those payments 18 shall be made to all districts within a project redevelopment 19 area on a basis which is proportional to the current 20 collections of revenue which each taxing district receives 21 from real property in the redevelopment project area. 22 (m) Exercise any and all other powers necessary to 23 effectuate the purposes of this Act. 24 (n) If any member of the corporate authority, a member 25 of a commission established pursuant to Section 11-74.4-4(k) 26 of this Act, or an employee or consultant of the municipality 27 involved in the planning and preparation of a redevelopment 28 plan, or project for a redevelopment project area or proposed 29 redevelopment project area, as defined in Sections 30 11-74.4-3(i) through (k) of this Act, owns or controls an 31 interest, direct or indirect, in any property included in any 32 redevelopment area, or proposed redevelopment area, he or she 33 shall disclose the same in writing to the clerk of the 34 municipality, and shall also so disclose the dates and terms HB0305 Engrossed -58- LRB9101600PTpk 1 and conditions of any disposition of any such interest, which 2 disclosures shall be acknowledged by the corporate 3 authorities and entered upon the minute books of the 4 corporate authorities. If an individual holds such an 5 interest then that individual shall refrain from any further 6 official involvement in regard to such redevelopment plan, 7 project or area, from voting on any matter pertaining to such 8 redevelopment plan, project or area, or communicating with 9 other members concerning corporate authorities, commission or 10 employees concerning any matter pertaining to said 11 redevelopment plan, project or area. Furthermore, no such 12 member or employee shall acquire of any interest direct, or 13 indirect, in any property in a redevelopment area or proposed 14 redevelopment area after either (a) such individual obtains 15 knowledge of such plan, project or area or (b) first public 16 notice of such plan, project or area pursuant to Section 17 11-74.4-6 of this Division, whichever occurs first. For the 18 purposes of this subsection, a month-to-month leasehold 19 interest shall not be deemed to constitute an interest in any 20 property included in any redevelopment area or proposed 21 redevelopment area. 22 (o) Create a Tax Increment Economic Development Advisory 23 Committee to be appointed by the Mayor or President of the 24 municipality with the consent of the majority of the 25 governing board of the municipality, the members of which 26 Committee shall be appointed for initial terms of 1, 2, 3, 4 27 and 5 years respectively, in such numbers as to provide that 28 the terms of not more than 1/3 of all such members shall 29 expire in any one year. Their successors shall be appointed 30 for a term of 5 years. The Committee shall have none of the 31 powers enumerated in this Section. The Committee shall serve 32 in an advisory capacity only. The Committee may advise the 33 governing Board of the municipality and other municipal 34 officials regarding development issues and opportunities HB0305 Engrossed -59- LRB9101600PTpk 1 within the redevelopment project area or the area within the 2 State Sales Tax Boundary. The Committee may also promote and 3 publicize development opportunities in the redevelopment 4 project area or the area within the State Sales Tax Boundary. 5 (p) Municipalities may jointly undertake and perform 6 redevelopment plans and projects and utilize the provisions 7 of the Act wherever they have contiguous redevelopment 8 project areas or they determine to adopt tax increment 9 financing with respect to a redevelopment project area which 10 includes contiguous real property within the boundaries of 11 the municipalities, and in doing so, they may, by agreement 12 between municipalities, issue obligations, separately or 13 jointly, and expend revenues received under the Act for 14 eligible expenses anywhere within contiguous redevelopment 15 project areas or as otherwise permitted in the Act. 16 (q) Utilize revenues, other than State sales tax 17 increment revenues, received under this Act from one 18 redevelopment project area for eligible costs in another 19 redevelopment project area that is either contiguous to, or 20 is separated only by a public right of way from, the 21 redevelopment project area from which the revenues are 22 received. Utilize tax increment revenues for eligible costs 23 that are received from a redevelopment project area created 24 under the Industrial Jobs Recovery Law that is either 25 contiguous to, or is separated only by a public right of way 26 from, the redevelopment project area created under this Act 27 which initially receives these revenues. Utilize revenues, 28 other than State sales tax increment revenues, by 29 transferring or loaning such revenues to a redevelopment 30 project area created under the Industrial Jobs Recovery Law 31 that is either contiguous to, or separated only by a public 32 right of way from the redevelopment project area that 33 initially produced and received those revenues; and, if the 34 redevelopment project area (i) was established before the HB0305 Engrossed -60- LRB9101600PTpk 1 effective date of this amendatory Act of the 91st General 2 Assembly and (ii) is located within a municipality with a 3 population of more than 100,000, utilize revenues or proceeds 4 of obligations authorized by Section 11-74.4-7 of this Act, 5 other than use or occupation tax revenues, to pay for any 6 redevelopment project costs as defined by subsection (q) of 7 Section 11-74.4-3 to the extent that the redevelopment 8 project costs involve public property that is either 9 contiguous to, or separated only by a public right of way 10 from, a redevelopment project area whether or not 11 redevelopment project costs or the source of payment for the 12 costs are specifically set forth in the redevelopment plan 13 for the redevelopment project area. 14 (r) If no redevelopment project has been initiated in a 15 redevelopment project area within 7 years after the area was 16 designated by ordinance under subsection (a), the 17 municipality shall adopt an ordinance repealing the area's 18 designation as a redevelopment project area; provided, 19 however, that if an area received its designation more than 3 20 years before the effective date of this amendatory Act of 21 1994 and no redevelopment project has been initiated within 4 22 years after the effective date of this amendatory Act of 23 1994, the municipality shall adopt an ordinance repealing its 24 designation as a redevelopment project area. Initiation of a 25 redevelopment project shall be evidenced by either a signed 26 redevelopment agreement or expenditures on eligible 27 redevelopment project costs associated with a redevelopment 28 project. 29 (Source: P.A. 90-258, eff. 7-30-97.) 30 (65 ILCS 5/11-74.4-4.1) 31 Sec. 11-74.4-4.1. Feasibility study. 32 (a) If a municipality by its corporate authorities, or 33 as it may determine by any commission designated under HB0305 Engrossed -61- LRB9101600PTpk 1 subsection (k) of Section 11-74.4-4, adopts an ordinance or 2 resolution providing for a feasibility study on the 3 designation of an area as a redevelopment project area, a 4 copy of the ordinance or resolution shall immediately be sent 5 to all taxing districts that would be affected by the 6 designation. 7 On and after the effective date of this amendatory Act of 8 the 91st General Assembly, the ordinance or resolution shall 9 include: 10 (1) The boundaries of the area to be studied for 11 possible designation as a redevelopment project area. 12 (2) The purpose or purposes of the proposed 13 redevelopment plan and project. 14 (3) A general description of tax increment 15 allocation financing under this Act. 16 (4) The name, phone number, and address of the 17 municipal officer who can be contacted for additional 18 information about the proposed redevelopment project area 19 and who should receive all comments and suggestions 20 regarding the redevelopment of the area to be studied. 21 (b) If one of the purposes of the planned redevelopment 22 project area should reasonably be expected to result in the 23 displacement of residents from 10 or more inhabited 24 residential units, the municipality shall adopt a resolution 25 or ordinance providing for the feasibility study described in 26 subsection (a). The ordinance or resolution shall also 27 require that the feasibility study include the preparation of 28 the housing impact study set forth in paragraph (5) of 29 subsection (n) of Section 11-74.4-3. If the redevelopment 30 plan will not result in displacement of residents from 31 inhabited units, and the municipality certifies in the plan 32 that displacement will not result from the plan, then a 33 resolution or ordinance need not be adopted. 34 (Source: P.A. 88-537.) HB0305 Engrossed -62- LRB9101600PTpk 1 (65 ILCS 5/11-74.4-4.2 new) 2 Sec. 11-74.4-4.2. Interested parties registry. On and 3 after the effective date of this amendatory Act of the 91st 4 General Assembly, the municipality shall by its corporate 5 authority create an "interested parties" registry for 6 activities related to the redevelopment project area. The 7 municipality shall adopt reasonable registration rules and 8 shall prescribe the necessary registration forms for 9 residents and organizations active within the municipality 10 that seek to be placed on the "interested parties" registry. 11 At a minimum, the rules for registration shall provide for a 12 renewable period of registration of not less than 3 years and 13 notification to registered organizations and individuals by 14 mail at the address provided upon registration prior to 15 termination of their registration, unless the municipality 16 decides that it will establish a policy of not terminating 17 interested parties from the registry, in which case no notice 18 will be required. Such rules shall not be used to prohibit 19 or otherwise interfere with the ability of eligible 20 organizations and individuals to register for receipt of 21 information to which they are entitled under this statute, 22 including the information required by: 23 (1) subsection (a) of Section 11-74.4-5; 24 (2) paragraph (9) of subsection (d) of Section 25 11-74.4-5; and 26 (3) subsection (e) of Section 11-74.4-6. 27 (65 ILCS 5/11-74.4-5) (from Ch. 24, par. 11-74.4-5) 28 Sec. 11-74.4-5. (a) Prior to the adoption of an 29 ordinance proposing the designation of a redevelopment 30 project area, or approving a redevelopment plan or 31 redevelopment project, the municipality by its corporate 32 authorities, or as it may determine by any commission 33 designated under subsection (k) of Section 11-74.4-4 shall HB0305 Engrossed -63- LRB9101600PTpk 1 adopt an ordinance or resolution fixing a time and place for 2 public hearing. Prior to the adoption of the ordinance or 3 resolution establishing the time and place for the public 4 hearing, the municipality shall make available for public 5 inspection a redevelopment plan or a separate report that 6 provides in reasonable detail the basis for the eligibility 7 of the redevelopment project areaqualifying as a blighted8area, conservation area, or an industrial park conservation9area. The report along with the name of a person to contact 10 for further information shall be sent within a reasonable 11 time after the adoption of such ordinance or resolution to 12 the affected taxing districts by certified mail. On and after 13 the effective date of this amendatory Act of the 91st General 14 Assembly, the municipality shall print in a newspaper of 15 general circulation within the municipality a notice that 16 interested persons may register with the municipality in 17 order to receive information on the proposed designation of a 18 redevelopment project area or the approval of a redevelopment 19 plan. The notice shall state the place of registration and 20 the operating hours of that place. The municipality shall 21 have adopted reasonable rules to implement this registration 22 process under Section 11-74.4-4.2. Notice of the 23 availability of the redevelopment plan and eligibility 24 report, including how to obtain this information, shall also 25 be sent by mail within a reasonable time after the adoption 26 of the ordinance or resolution to all residents within the 27 postal zip code area or areas contained in whole or in part 28 within the proposed redevelopment project area or 29 organizations that operate in the municipality that have 30 registered with the municipality for that information in 31 accordance with the registration guidelines established by 32 the municipality under Section 11-74.4-4.2. 33 At the public hearing any interested person or affected 34 taxing district may file with the municipal clerk written HB0305 Engrossed -64- LRB9101600PTpk 1 objections to and may be heard orally in respect to any 2 issues embodied in the notice. The municipality shall hear 3 and determine all protests and objections at the hearing and 4 the hearing may be adjourned to another date without further 5 notice other than a motion to be entered upon the minutes 6 fixing the time and place of the subsequent hearing. At the 7 public hearing or at any time prior to the adoption by the 8 municipality of an ordinance approving a redevelopment plan, 9 the municipality may make changes in the redevelopment plan. 10 Changes which (1) add additional parcels of property to the 11 proposed redevelopment project area, (2) substantially affect 12 the general land uses proposed in the redevelopment plan, (3) 13 substantially change the nature of or extend the life of the 14 redevelopment project, or (4) increase the number of low or 15 very low income households to be displaced from the 16 redevelopment project area, provided that measured from the 17 time of creation of the redevelopment project area the total 18 displacement of the households will exceed 10, shall be made 19 only after the municipality gives notice, convenes a joint 20 review board, and conducts a public hearing pursuant to the 21 procedures set forth in this Section and in Section 11-74.4-6 22 of this Act. Changes which do not (1) add additional parcels 23 of property to the proposed redevelopment project area, (2) 24 substantially affect the general land uses proposed in the 25 redevelopment plan, (3) substantially change the nature of or 26 extend the life of the redevelopment project, or (4) increase 27 the number of low or very low income households to be 28 displaced from the redevelopment project area, provided that 29 measured from the time of creation of the redevelopment 30 project area the total displacement of the households will 31 exceed 10, may be made without further hearing, provided that 32 the municipality shall give notice of any such changes by 33 mail to each affected taxing district and registrant on the 34 interested parties registry, provided for under Section HB0305 Engrossed -65- LRB9101600PTpk 1 11-74.4-4.2, and by publication in a newspaper of general 2 circulation within the affected taxing district. Such notice 3 by mail and by publication shall each occur not later than 10 4 days following the adoption by ordinance of such changes. 5Prior to the adoption of an ordinance approving a6redevelopment plan or redevelopment project, or designating a7redevelopment project area, changes may be made in the8redevelopment plan or project or area which changes do not9alter the exterior boundaries, or do not substantially affect10the general land uses established in the plan or11substantially change the nature of the redevelopment project,12without further hearing or notice, provided that notice of13such changes is given by mail to each affected taxing14district and by publication in a newspaper or newspapers of15general circulation within the taxing districts not less than1610 days prior to the adoption of the changes by ordinance.17After the adoption of an ordinance approving a redevelopment18plan or project or designating a redevelopment project area,19no ordinance shall be adopted altering the exterior20boundaries, affecting the general land uses established21pursuant to the plan or changing the nature of the22redevelopment project without complying with the procedures23provided in this division pertaining to the initial approval24of a redevelopment plan project and designation of25redevelopment project area.Hearings with regard to a 26 redevelopment project area, project or plan may be held 27 simultaneously. 28 (b) Prior to holding a public hearing to approve or 29 amend a redevelopment plan or to designate or add additional 30 parcels of property to aAfter the effective date of this31amendatory Act of 1989, prior to the adoption of an ordinance32proposing the designation of a redevelopment project area or33amending the boundaries of an existingredevelopment project 34 area, the municipality shall convene a joint review boardtoHB0305 Engrossed -66- LRB9101600PTpk 1consider the proposal. The board shall consist of a 2 representative selected by each community college district, 3 local elementary school district and high school district or 4 each local community unit school district, park district, 5 library district, township, fire protection district, and 6 county that will have thehasauthority to directly levy 7 taxes on the property within the proposed redevelopment 8 project area at the time that the proposed redevelopment 9 project area is approved, a representative selected by the 10 municipality and a public member. The public member shall 11 first be selected and then the board's chairperson shall be 12 selected by a majority of theotherboard members present and 13 voting. 14 For redevelopment project areas with redevelopment plans 15 or proposed redevelopment plans that would result in the 16 displacement of residents from 10 or more inhabited 17 residential units or that include 75 or more inhabited 18 residential units, the public member shall be a person who 19 resides in the redevelopment project area. If, as determined 20 by the housing impact study provided for in paragraph (5) of 21 subsection (n) of Section 11-74.4-3, or if no housing impact 22 study is required then based on other reasonable data, the 23 majority of residential units are occupied by very low, low, 24 or moderate income households, as defined in Section 3 of the 25 Illinois Affordable Housing Act, the public member shall be a 26 person who resides in very low, low, or moderate income 27 housing within the redevelopment project area. 28 Municipalities with fewer than 15,000 residents shall not be 29 required to select a person who lives in very low, low, or 30 moderate income housing within the redevelopment project 31 area, provided that the redevelopment plan or project will 32 not result in displacement of residents from 10 or more 33 inhabited units, and the municipality so certifies in the 34 plan. If no person satisfying these requirements is HB0305 Engrossed -67- LRB9101600PTpk 1 available or if no qualified person will serve as the public 2 member, then the joint review board is relieved of this 3 paragraph's selection requirements for the public member. 4 Within 90 days of the effective date of this amendatory 5 Act of the 91st General Assembly, each municipality that 6 designated a redevelopment project area for which it was not 7 required to convene a joint review board under this Section 8 shallMunicipalities that have designated redevelopment9project areas prior to the effective date of this amendatory10Act of 1989 mayconvene a joint review board to perform the 11 duties specified under paragraph (e) of this Section. 12 All board members shall be appointed and the first board 13 meeting heldwithin 14 daysfollowing at least 14 days after 14thenotice by the municipality to all the taxing districts as 15 required by Section 11-74.4-6(c)11-74.4-6c. Such notice 16 shall also advise the taxing bodies represented on the joint 17 review board of the time and place of the first meeting of 18 the board. Additional meetings of the board shall be held 19 upon the call of any member. The municipality seeking 20 designation of the redevelopment project area shallmay21 provide administrative support to the board. 22 The board shall review (i) the public record, planning 23 documents and proposed ordinances approving the redevelopment 24 plan and project and (ii) proposed amendments to the 25 redevelopment plan or additions of parcels of property to the 26 redevelopment project area to be adopted by the municipality. 27 As part of its deliberations, the board may hold additional 28 hearings on the proposal. A board's recommendation shall be 29 an advisory, non-binding recommendation. The recommendation 30 shall be adopted by a majority of those members present and 31 voting. The recommendations shall bewhich recommendation32shall be adopted by a majority vote of the board and33 submitted to the municipality within 30 days after convening 34 of the board. Failure of the board to submit its report on a HB0305 Engrossed -68- LRB9101600PTpk 1 timely basis shall not be cause to delay the public hearing 2 or any other step in the process of designatingestablishing3 or amending the redevelopment project area but shall be 4 deemed to constitute approval by the joint review board of 5 the matters before it. 6 The board shall base its recommendation to approve or 7 disapprove the redevelopment plan and the designation of the 8 redevelopment project area or the amendment of the 9 redevelopment plan or addition of parcels of property to the 10 redevelopment project areadecision to approve or deny the11proposalon the basis of the redevelopment project area and 12 redevelopment plan satisfying the plan requirements, the 13 eligibility criteria defined in Section 11-74.4-3, and the 14 objectives of the Acteligibility criteria defined in Section1511-74.4-3. 16 The board shall issue a written report describing why the 17 redevelopment plan and project area or the amendment thereof 18 meets or fails to meet one or more of the objectives of this 19 Act and both the plan requirements and the eligibility 20 criteria defined in Section 11-74.4-3. In the event the Board 21 does not file a report it shall be presumed that these taxing 22 bodies find the redevelopment project area and redevelopment 23 plantosatisfy the objectives of this Act and the plan 24 requirements and eligibility criteria. 25 If the board recommends rejection of the matters before 26 it, the municipality will have 30 days within which to 27 resubmit the plan or amendment. During this period, the 28 municipality will meet and confer with the board and attempt 29 to resolve those issues set forth in the board's written 30 report that lead to the rejection of the plan or amendment. 31 In the event that the municipality and the board are unable 32 to resolve these differences, or in the event that the 33 resubmitted plan or amendment is rejected by the board, the 34 municipality may proceed with the plan or amendment, but only HB0305 Engrossed -69- LRB9101600PTpk 1 upon a three-fifths vote of the corporate authority 2 responsible for approval of the plan or amendment, excluding 3 positions of members that are vacant and those members that 4 are ineligible to vote because of conflicts of interest. 5 (c) After a municipality has by ordinance approved a 6 redevelopment plan and designated a redevelopment project 7 area, the plan may be amended and additional properties may 8 be added to the redevelopment project area only as herein 9 provided. Amendments which (1) add additional parcels of 10 property to the proposed redevelopment project area, (2) 11 substantially affect the general land uses proposed in the 12 redevelopment plan, (3) substantially change the nature of 13 the redevelopment project, (4) increase the total estimated 14 redevelopment project costs set out in the redevelopment plan 15 by more than 5% after adjustment for inflation from the date 16 the plan was adopted, (5) add additional redevelopment 17 project costs to the itemized list of redevelopment project 18 costs set out in the redevelopment plan, or (6) increase the 19 number of low or very low income households to be displaced 20 from the redevelopment project area, provided that measured 21 from the time of creation of the redevelopment project area 22 the total displacement of the households will exceed 10, 23 shall be made only after the municipality gives notice, 24 convenes a joint review board, and conducts a public hearing 25 pursuant to the procedures set forth in this Section and in 26 Section 11-74.4-6 of this Act. Changes which do not (1) add 27 additional parcels of property to the proposed redevelopment 28 project area, (2) substantially affect the general land uses 29 proposed in the redevelopment plan, (3) substantially change 30 the nature of the redevelopment project, (4) increase the 31 total estimated redevelopment project cost set out in the 32 redevelopment plan by more than 5% after adjustment for 33 inflation from the date the plan was adopted, (5) add 34 additional redevelopment project costs to the itemized list HB0305 Engrossed -70- LRB9101600PTpk 1 of redevelopment project costs set out in the redevelopment 2 plan, or (6) increase the number of low or very low income 3 households to be displaced from the redevelopment project 4 area, provided that measured from the time of creation of the 5 redevelopment project area the total displacement of the 6 households will exceed 10, may be made without further 7 hearing, provided that the municipality shall give notice of 8 any such changes by mail to each affected taxing district and 9 registrant on the interested parties registry, provided for 10 under Section 11-74.4-4.2, and by publication in a newspaper 11 of general circulation within the affected taxing district. 12 Such notice by mail and by publication shall each occur not 13 later than 10 days following the adoption by ordinance of 14 such changes.After the adoption of an ordinance approving a15redevelopment plan or project or designating a redevelopment16project area, no ordinance shall be adopted altering the17exterior boundaries, affecting the general land uses18established pursuant to the plan or changing the nature of19the redevelopment project without complying with the20procedures provided in this division pertaining to the21initial approval of a redevelopment plan project and22designation of a redevelopment project area.23 (d) After the effective date of this amendatory Act of 24 the 91st General Assembly1994 and adoption of an ordinance25approving a redevelopment plan or project, a municipality 26with a population of less than 1,000,000shall submit the 27 following information for each redevelopment project area (i) 28 to the State Comptroller in the financial report required 29 under Section 3 of the Governmental Account Audit Act and 30 (ii) to all taxing districts overlapping the redevelopment 31 project areawithin 90 days after the close of each municipal32fiscal year notify all taxing districts represented on the33joint review board in which the redevelopment project area is34located that any or all of the following information will beHB0305 Engrossed -71- LRB9101600PTpk 1made availableno later than 180 days after the close of each 2 municipal fiscal year or as soon thereafter as the audited 3 financial statements become available and, in any case, shall 4 be submitted before the annual meeting of the Joint Review 5 Board to each of the taxing districts that overlap the 6 redevelopment project areaupon receipt of a written request7of a majority of such taxing districts for such information: 8 (1) Any amendments to the redevelopment plan, the 9 redevelopment project area, or the State Sales Tax 10 Boundary. 11 (1.5) A list of the redevelopment project areas 12 administered by the municipality and, if applicable, the 13 date each redevelopment project area was designated or 14 terminated by the municipality. 15 (2) Audited financial statements of the special tax 16 allocation fund once a cumulative total of $100,000 has 17 been deposited in the fund. 18 (3) Certification of the Chief Executive Officer of 19 the municipality that the municipality has complied with 20 all of the requirements of this Act during the preceding 21 fiscal year. 22 (4) An opinion of legal counsel that the 23 municipality is in compliance with this Act. 24 (5) An analysis of the special tax allocation fund 25 which sets forth: 26 (A) the balance in the special tax allocation 27 fund at the beginning of the fiscal year; 28 (B) all amounts deposited in the special tax 29 allocation fund by source; 30 (C) an itemized list of all expenditures from 31 the special tax allocation fund by category of 32 permissible redevelopment project cost; and 33 (D) the balance in the special tax allocation 34 fund at the end of the fiscal year including a HB0305 Engrossed -72- LRB9101600PTpk 1 breakdown of that balance by source and a breakdown 2 of that balance identifying any portion of the 3 balance that is required, pledged, earmarked, or 4 otherwise designated for payment of or securing of 5 obligations and anticipated redevelopment project 6 costs. Any portion of such ending balance that has 7 not been identified or is not identified as being 8 required, pledged, earmarked, or otherwise 9 designated for payment of or securing of obligations 10 or anticipated redevelopment projects costs shall be 11 designated as surplusif it is not required for12anticipated redevelopment project costs or to pay13debt service on bonds issued to finance14redevelopment project costs,as set forth in Section 15 11-74.4-7 hereof. 16 (6) A description of all property purchased by the 17 municipality within the redevelopment project area 18 including: 19 (A) Street address. 20 (B) Approximate size or description of 21 property. 22 (C) Purchase price. 23 (D) Seller of property. 24 (7) A statement setting forth all activities 25 undertaken in furtherance of the objectives of the 26 redevelopment plan, including: 27 (A) Any project implemented in the preceding 28 fiscal year. 29 (B) A description of the redevelopment 30 activities undertaken. 31 (C) A description of any agreements entered 32 into by the municipality with regard to the 33 disposition or redevelopment of any property within 34 the redevelopment project area or the area within HB0305 Engrossed -73- LRB9101600PTpk 1 the State Sales Tax Boundary. 2 (D) Additional information on the use of all 3 funds received under this Division and steps taken 4 by the municipality to achieve the objectives of the 5 redevelopment plan. 6 (E) Information regarding contracts that the 7 municipality's tax increment advisors or consultants 8 have entered into with entities or persons that have 9 received, or are receiving, payments financed by tax 10 increment revenues produced by the same 11 redevelopment project area. 12 (F) Any reports submitted to the municipality 13 by the joint review board. 14 (G) A review of public and, to the extent 15 possible, private investment actually undertaken to 16 date after the effective date of this amendatory Act 17 of the 91st General Assembly and estimated to be 18 undertaken during the following year. This review 19 shall, on a project-by-project basis, set forth the 20 estimated amounts of public and private investment 21 incurred after the effective date of this amendatory 22 Act of the 91st General Assembly and provide the 23 ratio of private investment to public investment to 24 the date of the report and as estimated to the 25 completion of the redevelopment project. 26 (8) With regard to any obligations issued by the 27 municipality: 28 (A) copies of any official statements; and 29 (B) an analysis prepared by financial advisor 30 or underwriter setting forth: (i) nature and term of 31 obligation; and (ii) projected debt service 32 including required reserves and debt coverage. 33 (9) For special tax allocation funds that have 34 experienced cumulative deposits of incremental tax HB0305 Engrossed -74- LRB9101600PTpk 1 revenues of $100,000 or more, a certified audit report 2 reviewing compliance with this Act performed by an 3 independent public accountant certified and licensed by 4 the authority of the State of Illinois. The financial 5 portion of the audit must be conducted in accordance with 6 Standards for Audits of Governmental Organizations, 7 Programs, Activities, and Functions adopted by the 8 Comptroller General of the United States (1981), as 9 amended. The audit report shall contain a letter from 10 the independent certified public accountant indicating 11 compliance or noncompliance with the requirements of 12 subsection (q) of Section 11-74.4-3. For redevelopment 13 plans or projects that would result in the displacement 14 of residents from 10 or more inhabited residential units 15 or that contain 75 or more inhabited residential units, 16 notice of the availability of the information, including 17 how to obtain the report, required in this subsection 18 shall also be sent by mail to all residents or 19 organizations that operate in the municipality that 20 register with the municipality for that information 21 according to registration procedures adopted under 22 Section 11-74.4-4.2. All municipalities are subject to 23 this provision. 24 (d-1) Prior to the effective date of this amendatory Act 25 of the 91st General Assembly, municipalities with populations 26 of over 1,000,000 shall, after adoption of a redevelopment 27 plan or project, make available upon request to any taxing 28 district in which the redevelopment project area is located 29 the following information: 30 (1) Any amendments to the redevelopment plan, the 31 redevelopment project area, or the State Sales Tax 32 Boundary; and 33 (2) In connection with any redevelopment project 34 area for which the municipality has outstanding HB0305 Engrossed -75- LRB9101600PTpk 1 obligations issued to provide for redevelopment project 2 costs pursuant to Section 11-74.4-7, audited financial 3 statements of the special tax allocation fund. 4 (e)One year, two years and at the end of every5subsequent three year period thereafter,The joint review 6 board shall meet annually 180 days after the close of the 7 municipal fiscal year or as soon as the redevelopment project 8 audit for that fiscal year becomes available to review the 9 effectiveness and status of the redevelopment project area up 10 to that date. 11 (f) (Blank).If the redevelopment project area has been12in existence for at least 5 years and the municipality13proposes a redevelopment project with a total redevelopment14project cost exceeding 35% of the total amount budgeted in15the redevelopment plan for all redevelopment projects, the16municipality, in addition to any other requirements imposed17by this Act, shall convene a meeting of the joint review18board as provided in this Act for the purpose of reviewing19the redevelopment project.20 (g) In the event that a municipality has held a public 21 hearing under this Section prior to March 14, 1994 (the 22 effective date of Public Act 88-537), the requirements 23 imposed by Public Act 88-537 relating to the method of fixing 24 the time and place for public hearing, the materials and 25 information required to be made available for public 26 inspection, and the information required to be sent after 27 adoption of an ordinance or resolution fixing a time and 28 place for public hearing shall not be applicable. 29 (Source: P.A. 88-537; 88-688, eff. 1-24-95; revised 30 10-31-98.) 31 (65 ILCS 5/11-74.4-6) (from Ch. 24, par. 11-74.4-6) 32 Sec. 11-74.4-6. (a) Except as provided herein, notice of 33 the public hearing shall be given by publication and mailing. HB0305 Engrossed -76- LRB9101600PTpk 1 Notice by publication shall be given by publication at least 2 twice, the first publication to be not more than 30 nor less 3 than 10 days prior to the hearing in a newspaper of general 4 circulation within the taxing districts having property in 5 the proposed redevelopment project area. Notice by mailing 6 shall be given by depositing such notice in the United States 7 mails by certified mail addressed to the person or persons 8 in whose name the general taxes for the last preceding year 9 were paid on each lot, block, tract, or parcel of land lying 10 within the project redevelopment area. Said notice shall be 11 mailed not less than 10 days prior to the date set for the 12 public hearing. In the event taxes for the last preceding 13 year were not paid, the notice shall also be sent to the 14 persons last listed on the tax rolls within the preceding 3 15 years as the owners of such property. For redevelopment 16 project areas with redevelopment plans or proposed 17 redevelopment plans that would require removal of 10 or more 18 inhabited residential units or that contain 75 or more 19 inhabited residential units, the municipality shall make a 20 good faith effort to notify by mail all residents of the 21 redevelopment project area. At a minimum, the municipality 22 shall mail a notice to each residential address located 23 within the redevelopment project area. The municipality 24 shall endeavor to ensure that all such notices are 25 effectively communicated and shall include (in addition to 26 notice in English) notice in the predominant language other 27 than English when appropriate. 28 (b) The notices issued pursuant to this Section shall 29 include the following: 30 (1) The time and place of public hearing; 31 (2) The boundaries of the proposed redevelopment 32 project area by legal description and by street location 33 where possible; 34 (3) A notification that all interested persons will HB0305 Engrossed -77- LRB9101600PTpk 1 be given an opportunity to be heard at the public 2 hearing; 3 (4) A description of the redevelopment plan or 4 redevelopment project for the proposed redevelopment 5 project area if a plan or project is the subject matter 6 of the hearing. 7 (5) Such other matters as the municipality may deem 8 appropriate. 9 (c) Not less than 45 days prior to the date set for 10 hearing, the municipality shall give notice by mail as 11 provided in subsection (a) to all taxing districts of which 12 taxable property is included in the redevelopment project 13 area, project or plan and to the Department of Commerce and 14 Community Affairs, and in addition to the other requirements 15 under subsection (b) the notice shall include an invitation 16 to the Department of Commerce and Community Affairs and each 17 taxing district to submit comments to the municipality 18 concerning the subject matter of the hearing prior to the 19 date of hearing. 20 (d) In the event that any municipality has by ordinance 21 adopted tax increment financing prior to 1987, and has 22 complied with the notice requirements of this Section, except 23 that the notice has not included the requirements of 24 subsection (b), paragraphs (2), (3) and (4), and within 90 25 days of the effective date of this amendatory Act of 1991, 26 that municipality passes an ordinance which contains findings 27 that: (1) all taxing districts prior to the time of the 28 hearing required by Section 11-74.4-5 were furnished with 29 copies of a map incorporated into the redevelopment plan and 30 project substantially showing the legal boundaries of the 31 redevelopment project area; (2) the redevelopment plan and 32 project, or a draft thereof, contained a map substantially 33 showing the legal boundaries of the redevelopment project 34 area and was available to the public at the time of the HB0305 Engrossed -78- LRB9101600PTpk 1 hearing; and (3) since the adoption of any form of tax 2 increment financing authorized by this Act, and prior to June 3 1, 1991, no objection or challenge has been made in writing 4 to the municipality in respect to the notices required by 5 this Section, then the municipality shall be deemed to have 6 met the notice requirements of this Act and all actions of 7 the municipality taken in connection with such notices as 8 were given are hereby validated and hereby declared to be 9 legally sufficient for all purposes of this Act. 10 (e) If a municipality desires to propose a redevelopment 11 plan for a redevelopment project area that would result in 12 the displacement of residents from 10 or more inhabited 13 residential units or for a redevelopment project area that 14 contains 75 or more inhabited residential units, the 15 municipality shall hold a public meeting before the mailing 16 of the notices of public hearing as provided in subsection 17 (c) of this Section. The meeting shall be for the purpose of 18 enabling the municipality to advise the public, taxing 19 districts having real property in the redevelopment project 20 area, taxpayers who own property in the proposed 21 redevelopment project area, and residents in the area as to 22 the municipality's possible intent to prepare a redevelopment 23 plan and designate a redevelopment project area and to 24 receive public comment. The time and place for the meeting 25 shall be set by the head of the municipality's Department of 26 Planning or other department official designated by the mayor 27 or city or village manager without the necessity of a 28 resolution or ordinance of the municipality and may be held 29 by a member of the staff of the Department of Planning of the 30 municipality or by any other person, body, or commission 31 designated by the corporate authorities. The meeting shall 32 be held at least 14 business days before the mailing of the 33 notice of public hearing provided for in subsection (c) of 34 this Section. HB0305 Engrossed -79- LRB9101600PTpk 1 Notice of the public meeting shall be given by mail. 2 Notice by mail shall be not less than 15 days before the date 3 of the meeting and shall be sent by certified mail to all 4 taxing districts having real property in the proposed 5 redevelopment project area and to all entities requesting 6 that information that have registered with a person and 7 department designated by the municipality in accordance with 8 registration guidelines established by the municipality 9 pursuant to Section 11-74.4-4.2. The municipality shall make 10 a good faith effort to notify all residents and the last 11 known persons who paid property taxes on real estate in a 12 redevelopment project area. This requirement shall be deemed 13 to be satisfied if the municipality mails, by regular mail, a 14 notice to each residential address and the person or persons 15 in whose name property taxes were paid on real property for 16 the last preceding year located within the redevelopment 17 project area. Notice shall be in languages other than 18 English when appropriate. The notices issued under this 19 subsection shall include the following: 20 (1) The time and place of the meeting. 21 (2) The boundaries of the area to be studied for 22 possible designation as a redevelopment project area by 23 street and location. 24 (3) The purpose or purposes of establishing a 25 redevelopment project area. 26 (4) A brief description of tax increment financing. 27 (5) The name, telephone number, and address of the 28 person who can be contacted for additional information 29 about the proposed redevelopment project area and who 30 should receive all comments and suggestions regarding 31 the development of the area to be studied. 32 (6) Notification that all interested persons will 33 be given an opportunity to be heard at the public 34 meeting. HB0305 Engrossed -80- LRB9101600PTpk 1 (7) Such other matters as the municipality deems 2 appropriate. 3 At the public meeting, any interested person or 4 representative of an affected taxing district may be heard 5 orally and may file, with the person conducting the meeting, 6 statements that pertain to the subject matter of the meeting. 7 8 (Source: P.A. 86-142; 87-813.) 9 (65 ILCS 5/11-74.4-7) (from Ch. 24, par. 11-74.4-7) 10 Sec. 11-74.4-7. Obligations secured by the special tax 11 allocation fund set forth in Section 11-74.4-8 for the 12 redevelopment project area may be issued to provide for 13 redevelopment project costs. Such obligations, when so 14 issued, shall be retired in the manner provided in the 15 ordinance authorizing the issuance of such obligations by the 16 receipts of taxes levied as specified in Section 11-74.4-9 17 against the taxable property included in the area, by 18 revenues as specified by Section 11-74.4-8a and other revenue 19 designated by the municipality. A municipality may in the 20 ordinance pledge all or any part of the funds in and to be 21 deposited in the special tax allocation fund created pursuant 22 to Section 11-74.4-8 to the payment of the redevelopment 23 project costs and obligations. Any pledge of funds in the 24 special tax allocation fund shall provide for distribution to 25 the taxing districts and to the Illinois Department of 26 Revenue of moneys not required, pledged, earmarked, or 27 otherwise designated for payment and securing of the 28 obligations and anticipated redevelopment project costs and 29 such excess funds shall be calculated annually and deemed to 30 be "surplus" funds. In the event a municipality only applies 31 or pledges a portion of the funds in the special tax 32 allocation fund for the payment or securing of anticipated 33 redevelopment project costs or of obligations, any such funds HB0305 Engrossed -81- LRB9101600PTpk 1 remaining in the special tax allocation fund after complying 2 with the requirements of the application or pledge, shall 3 also be calculated annually and deemed "surplus" funds. All 4 surplus funds in the special tax allocation fund, subject to5the provisions of (6.1) of Section 11-74.4-8a,shall be 6 distributed annually within 180 days after the close of the 7 municipality's fiscal year by being paid by the municipal 8 treasurer to the County Collector, to the Department of 9 Revenue and to the municipality in direct proportion to the 10 tax incremental revenue received as a result of an increase 11 in the equalized assessed value of property in the 12 redevelopment project area, tax incremental revenue received 13 from the State and tax incremental revenue received from the 14 municipality, but not to exceed as to each such source the 15 total incremental revenue received from that source.Except16that any special tax allocation fund subject to provision in17(6.1) of Section 11-74.4-8a shall comply with the provisions18in that Section.The County Collector shall thereafter make 19 distribution to the respective taxing districts in the same 20 manner and proportion as the most recent distribution by the 21 county collector to the affected districts of real property 22 taxes from real property in the redevelopment project area. 23 Without limiting the foregoing in this Section, the 24 municipality may in addition to obligations secured by the 25 special tax allocation fund pledge for a period not greater 26 than the term of the obligations towards payment of such 27 obligations any part or any combination of the following: (a) 28 net revenues of all or part of any redevelopment project; (b) 29 taxes levied and collected on any or all property in the 30 municipality; (c) the full faith and credit of the 31 municipality; (d) a mortgage on part or all of the 32 redevelopment project; or (e) any other taxes or anticipated 33 receipts that the municipality may lawfully pledge. 34 Such obligations may be issued in one or more series HB0305 Engrossed -82- LRB9101600PTpk 1 bearing interest at such rate or rates as the corporate 2 authorities of the municipality shall determine by ordinance. 3 Such obligations shall bear such date or dates, mature at 4 such time or times not exceeding 20 years from their 5 respective dates, be in such denomination, carry such 6 registration privileges, be executed in such manner, be 7 payable in such medium of payment at such place or places, 8 contain such covenants, terms and conditions, and be subject 9 to redemption as such ordinance shall provide. Obligations 10 issued pursuant to this Act may be sold at public or private 11 sale at such price as shall be determined by the corporate 12 authorities of the municipalities. No referendum approval of 13 the electors shall be required as a condition to the issuance 14 of obligations pursuant to this Division except as provided 15 in this Section. 16 In the event the municipality authorizes issuance of 17 obligations pursuant to the authority of this Division 18 secured by the full faith and credit of the municipality, 19 which obligations are other than obligations which may be 20 issued under home rule powers provided by Article VII, 21 Section 6 of the Illinois Constitution, or pledges taxes 22 pursuant to (b) or (c) of the second paragraph of this 23 section, the ordinance authorizing the issuance of such 24 obligations or pledging such taxes shall be published within 25 10 days after such ordinance has been passed in one or more 26 newspapers, with general circulation within such 27 municipality. The publication of the ordinance shall be 28 accompanied by a notice of (1) the specific number of voters 29 required to sign a petition requesting the question of the 30 issuance of such obligations or pledging taxes to be 31 submitted to the electors; (2) the time in which such 32 petition must be filed; and (3) the date of the prospective 33 referendum. The municipal clerk shall provide a petition 34 form to any individual requesting one. HB0305 Engrossed -83- LRB9101600PTpk 1 If no petition is filed with the municipal clerk, as 2 hereinafter provided in this Section, within 30 days after 3 the publication of the ordinance, the ordinance shall be in 4 effect. But, if within that 30 day period a petition is 5 filed with the municipal clerk, signed by electors in the 6 municipality numbering 10% or more of the number of 7 registered voters in the municipality, asking that the 8 question of issuing obligations using full faith and credit 9 of the municipality as security for the cost of paying for 10 redevelopment project costs, or of pledging taxes for the 11 payment of such obligations, or both, be submitted to the 12 electors of the municipality, the corporate authorities of 13 the municipality shall call a special election in the manner 14 provided by law to vote upon that question, or, if a general, 15 State or municipal election is to be held within a period of 16 not less than 30 or more than 90 days from the date such 17 petition is filed, shall submit the question at the next 18 general, State or municipal election. If it appears upon the 19 canvass of the election by the corporate authorities that a 20 majority of electors voting upon the question voted in favor 21 thereof, the ordinance shall be in effect, but if a majority 22 of the electors voting upon the question are not in favor 23 thereof, the ordinance shall not take effect. 24 The ordinance authorizing the obligations may provide 25 that the obligations shall contain a recital that they are 26 issued pursuant to this Division, which recital shall be 27 conclusive evidence of their validity and of the regularity 28 of their issuance. 29 In the event the municipality authorizes issuance of 30 obligations pursuant to this Section secured by the full 31 faith and credit of the municipality, the ordinance 32 authorizing the obligations may provide for the levy and 33 collection of a direct annual tax upon all taxable property 34 within the municipality sufficient to pay the principal HB0305 Engrossed -84- LRB9101600PTpk 1 thereof and interest thereon as it matures, which levy may be 2 in addition to and exclusive of the maximum of all other 3 taxes authorized to be levied by the municipality, which 4 levy, however, shall be abated to the extent that monies from 5 other sources are available for payment of the obligations 6 and the municipality certifies the amount of said monies 7 available to the county clerk. 8 A certified copy of such ordinance shall be filed with 9 the county clerk of each county in which any portion of the 10 municipality is situated, and shall constitute the authority 11 for the extension and collection of the taxes to be deposited 12 in the special tax allocation fund. 13 A municipality may also issue its obligations to refund 14 in whole or in part, obligations theretofore issued by such 15 municipality under the authority of this Act, whether at or 16 prior to maturity, provided however, that the last maturity 17 of the refunding obligations shall not be expressed to mature 18 later than December 31 of the year in which the payment to 19 the municipal treasurer as provided in subsection (b) of 20 Section 11-74.4-8 of this Act is to be made with respect to 21 ad valorem taxes levied in the twenty-third calendar year 22 after the year in which the ordinance approving the 23 redevelopment project area is adopted23 years from the date24of the ordinance approving the redevelopment project areaif 25 the ordinance was adopted on or after January 15, 1981, and 26 not later than December 31 of the year in which the payment 27 to the municipal treasurer as provided in subsection (b) of 28 Section 11-74.4-8 of this Act is to be made with respect to 29 ad valorem taxes levied in the thirty-fifth calendar year 30 after the year in which the ordinance approving the 31 redevelopment project area is adoptedmore than 35 yearsif 32 the ordinance was adopted before January 15, 1981, or if the 33 ordinance was adopted in April, 1984, July, 1985, or if the 34 ordinance was adopted in December, 1987 and the redevelopment HB0305 Engrossed -85- LRB9101600PTpk 1 project is located within one mile of Midway Airport, or if 2 the municipality is subject to the Local Government Financial 3 Planning and Supervision Act, or if the ordinance was adopted 4 on December 31, 1986 by a municipality located in Clinton 5 County for which at least $250,000 of tax increment bonds 6 were authorized on June 17, 1997 and, for redevelopment 7 project areas for which bonds were issued before July 29, 8 1991, in connection with a redevelopment project in the area 9 within the State Sales Tax Boundary and which were extended 10 by municipal ordinance under subsection (n) of Section 11 11-74.4-3, the last maturity of the refunding obligations 12 shall not be expressed to mature later than the date on which 13 the redevelopment project area is terminated or December 31, 14 2013, whichever date occurs first. 15 In the event a municipality issues obligations under home 16 rule powers or other legislative authority the proceeds of 17 which are pledged to pay for redevelopment project costs, the 18 municipality may, if it has followed the procedures in 19 conformance with this division, retire said obligations from 20 funds in the special tax allocation fund in amounts and in 21 such manner as if such obligations had been issued pursuant 22 to the provisions of this division. 23 All obligations heretofore or hereafter issued pursuant 24 to this Act shall not be regarded as indebtedness of the 25 municipality issuing such obligations or any other taxing 26 district for the purpose of any limitation imposed by law. 27 (Source: P.A. 89-357; eff. 8-17-95; 90-379, eff. 8-14-97.) 28 (65 ILCS 5/11-74.4-7.1) 29 Sec. 11-74.4-7.1. After the effective date of this 30 amendatory Act of 1994 and prior to the effective date of 31 this amendatory Act of the 91st General Assembly, a 32 municipality with a population of less than 1,000,000, prior 33 to construction of a new municipal public building that HB0305 Engrossed -86- LRB9101600PTpk 1 provides governmental services to be financed with tax 2 increment revenues as authorized in paragraph (4) of 3 subsection (q) of Section 11-74.4-3, shall agree with the 4 affected taxing districts to pay them, to the extent tax 5 increment finance revenues are available, over the life of 6 the redevelopment project area, an amount equal to 25% of the 7 cost of the building, such payments to be paid to the taxing 8 districts in the same proportion as the most recent 9 distribution by the county collector to the affected taxing 10 districts of real property taxes from taxable real property 11 in the redevelopment project area. 12 This Section does not apply to a municipality that, 13 before March 14, 1994 (the effective date of Public Act 14 88-537), acquired or leased the land (i) upon which a new 15 municipal public building is to be constructed and (ii) for 16 which an existing redevelopment plan or a redevelopment 17 agreement includes provisions for the construction of a new 18 municipal public building. 19 (Source: P.A. 88-537; 88-688, eff. 1-24-95.) 20 (65 ILCS 5/11-74.4-8) (from Ch. 24, par. 11-74.4-8) 21 Sec. 11-74.4-8. A municipality may not adopt tax 22 increment financing in a redevelopment project area after the 23 effective date of this amendatory Act of 1997 that will 24 encompass an area that is currently included in an enterprise 25 zone created under the Illinois Enterprise Zone Act unless 26 that municipality, pursuant to Section 5.4 of the Illinois 27 Enterprise Zone Act, amends the enterprise zone designating 28 ordinance to limit the eligibility for tax abatements as 29 provided in Section 5.4.1 of the Illinois Enterprise Zone 30 Act. A municipality, at the time a redevelopment project 31 area is designated, may adopt tax increment allocation 32 financing by passing an ordinance providing that the ad 33 valorem taxes, if any, arising from the levies upon taxable HB0305 Engrossed -87- LRB9101600PTpk 1 real property in such redevelopment project area by taxing 2 districts and tax rates determined in the manner provided in 3 paragraph (c) of Section 11-74.4-9 each year after the 4 effective date of the ordinance until redevelopment project 5 costs and all municipal obligations financing redevelopment 6 project costs incurred under this Division have been paid 7 shall be divided as follows: 8 (a) That portion of taxes levied upon each taxable lot, 9 block, tract or parcel of real property which is attributable 10 to the lower of the current equalized assessed value or the 11 initial equalized assessed value of each such taxable lot, 12 block, tract or parcel of real property in the redevelopment 13 project area shall be allocated to and when collected shall 14 be paid by the county collector to the respective affected 15 taxing districts in the manner required by law in the absence 16 of the adoption of tax increment allocation financing. 17 (b) That portion, if any, of such taxes which is 18 attributable to the increase in the current equalized 19 assessed valuation of each taxable lot, block, tract or 20 parcel of real property in the redevelopment project area 21 over and above the initial equalized assessed value of each 22 property in the project area shall be allocated to and when 23 collected shall be paid to the municipal treasurer who shall 24 deposit said taxes into a special fund called the special tax 25 allocation fund of the municipality for the purpose of paying 26 redevelopment project costs and obligations incurred in the 27 payment thereof. In any county with a population of 3,000,000 28 or more that has adopted a procedure for collecting taxes 29 that provides for one or more of the installments of the 30 taxes to be billed and collected on an estimated basis, the 31 municipal treasurer shall be paid for deposit in the special 32 tax allocation fund of the municipality, from the taxes 33 collected from estimated bills issued for property in the 34 redevelopment project area, the difference between the amount HB0305 Engrossed -88- LRB9101600PTpk 1 actually collected from each taxable lot, block, tract, or 2 parcel of real property within the redevelopment project area 3 and an amount determined by multiplying the rate at which 4 taxes were last extended against the taxable lot, block, 5 track, or parcel of real property in the manner provided in 6 subsection (c) of Section 11-74.4-9 by the initial equalized 7 assessed value of the property divided by the number of 8 installments in which real estate taxes are billed and 9 collected within the county;,provided that the payments on 10 or before December 31, 1999 to a municipal treasurer shall be 11 made only if each of the following conditions are met: 12 (1) The total equalized assessed value of the 13 redevelopment project area as last determined was not 14 less than 175% of the total initial equalized assessed 15 value. 16 (2) Not more than 50% of the total equalized 17 assessed value of the redevelopment project area as last 18 determined is attributable to a piece of property 19 assigned a single real estate index number. 20 (3) The municipal clerk has certified to the county 21 clerk that the municipality has issued its obligations to 22 which there has been pledged the incremental property 23 taxes of the redevelopment project area or taxes levied 24 and collected on any or all property in the municipality 25 or the full faith and credit of the municipality to pay 26 or secure payment for all or a portion of the 27 redevelopment project costs. The certification shall be 28 filed annually no later than September 1 for the 29 estimated taxes to be distributed in the following year; 30 however, for the year 1992 the certification shall be 31 made at any time on or before March 31, 1992. 32 (4) The municipality has not requested that the 33 total initial equalized assessed value of real property 34 be adjusted as provided in subsection (b) of Section HB0305 Engrossed -89- LRB9101600PTpk 1 11-74.4-9. 2 The conditions of paragraphs (1) through (4) do not apply 3 after December 31, 1999 to payments to a municipal treasurer 4 made by a county with 3,000,000 or more inhabitants that has 5 adopted an estimated billing procedure for collecting taxes. 6 If a county that has adopted the estimated billing procedure 7 makes an erroneous overpayment of tax revenue to the 8 municipal treasurer, then the county may seek a refund of 9 that overpayment. The county shall send the municipal 10 treasurer a notice of liability for the overpayment on or 11 before the mailing date of the next real estate tax bill 12 within the county. The refund shall be limited to the amount 13 of the overpayment. 14 It is the intent of this Division that after the 15 effective date of this amendatory Act of 1988 a 16 municipality's own ad valorem tax arising from levies on 17 taxable real property be included in the determination of 18 incremental revenue in the manner provided in paragraph (c) 19 of Section 11-74.4-9. If the municipality does not extend 20 such a tax, it shall annually deposit in the municipality's 21 Special Tax Increment Fund an amount equal to 10% of the 22 total contributions to the fund from all other taxing 23 districts in that year. The annual 10% deposit required by 24 this paragraph shall be limited to the actual amount of 25 municipally produced incremental tax revenues available to 26 the municipality from taxpayers located in the redevelopment 27 project area in that year if: (a) the plan for the area 28 restricts the use of the property primarily to industrial 29 purposes, (b) the municipality establishing the redevelopment 30 project area is a home-rule community with a 1990 population 31 of between 25,000 and 50,000, (c) the municipality is wholly 32 located within a county with a 1990 population of over 33 750,000 and (d) the redevelopment project area was 34 established by the municipality prior to June 1, 1990. This HB0305 Engrossed -90- LRB9101600PTpk 1 payment shall be in lieu of a contribution of ad valorem 2 taxes on real property. If no such payment is made, any 3 redevelopment project area of the municipality shall be 4 dissolved. 5 If a municipality has adopted tax increment allocation 6 financing by ordinance and the County Clerk thereafter 7 certifies the "total initial equalized assessed value as 8 adjusted" of the taxable real property within such 9 redevelopment project area in the manner provided in 10 paragraph (b) of Section 11-74.4-9, each year after the date 11 of the certification of the total initial equalized assessed 12 value as adjusted until redevelopment project costs and all 13 municipal obligations financing redevelopment project costs 14 have been paid the ad valorem taxes, if any, arising from the 15 levies upon the taxable real property in such redevelopment 16 project area by taxing districts and tax rates determined in 17 the manner provided in paragraph (c) of Section 11-74.4-9 18 shall be divided as follows: 19 (1) That portion of the taxes levied upon each 20 taxable lot, block, tract or parcel of real property 21 which is attributable to the lower of the current 22 equalized assessed value or "current equalized assessed 23 value as adjusted" or the initial equalized assessed 24 value of each such taxable lot, block, tract, or parcel 25 of real property existing at the time tax increment 26 financing was adopted, minus the total current homestead 27 exemptions provided by Sections 15-170 and 15-175 of the 28 Property Tax Code in the redevelopment project area shall 29 be allocated to and when collected shall be paid by the 30 county collector to the respective affected taxing 31 districts in the manner required by law in the absence of 32 the adoption of tax increment allocation financing. 33 (2) That portion, if any, of such taxes which is 34 attributable to the increase in the current equalized HB0305 Engrossed -91- LRB9101600PTpk 1 assessed valuation of each taxable lot, block, tract, or 2 parcel of real property in the redevelopment project 3 area, over and above the initial equalized assessed value 4 of each property existing at the time tax increment 5 financing was adopted, minus the total current homestead 6 exemptions pertaining to each piece of property provided 7 by Sections 15-170 and 15-175 of the Property Tax Code in 8 the redevelopment project area, shall be allocated to and 9 when collected shall be paid to the municipal Treasurer, 10 who shall deposit said taxes into a special fund called 11 the special tax allocation fund of the municipality for 12 the purpose of paying redevelopment project costs and 13 obligations incurred in the payment thereof. 14 The municipality may pledge in the ordinance the funds in 15 and to be deposited in the special tax allocation fund for 16 the payment of such costs and obligations. No part of the 17 current equalized assessed valuation of each property in the 18 redevelopment project area attributable to any increase above 19 the total initial equalized assessed value, or the total 20 initial equalized assessed value as adjusted, of such 21 properties shall be used in calculating the general State 22 school aid formula, provided for in Section 18-8 of the 23 School Code, until such time as all redevelopment project 24 costs have been paid as provided for in this Section. 25 Whenever a municipality issues bonds for the purpose of 26 financing redevelopment project costs, such municipality may 27 provide by ordinance for the appointment of a trustee, which 28 may be any trust company within the State, and for the 29 establishment of such funds or accounts to be maintained by 30 such trustee as the municipality shall deem necessary to 31 provide for the security and payment of the bonds. If such 32 municipality provides for the appointment of a trustee, such 33 trustee shall be considered the assignee of any payments 34 assigned by the municipality pursuant to such ordinance and HB0305 Engrossed -92- LRB9101600PTpk 1 this Section. Any amounts paid to such trustee as assignee 2 shall be deposited in the funds or accounts established 3 pursuant to such trust agreement, and shall be held by such 4 trustee in trust for the benefit of the holders of the bonds, 5 and such holders shall have a lien on and a security interest 6 in such funds or accounts so long as the bonds remain 7 outstanding and unpaid. Upon retirement of the bonds, the 8 trustee shall pay over any excess amounts held to the 9 municipality for deposit in the special tax allocation fund. 10 When such redevelopment projects costs, including without 11 limitation all municipal obligations financing redevelopment 12 project costs incurred under this Division, have been paid, 13 all surplus funds then remaining in the special tax 14 allocation fund shall be distributed by being paid by the 15 municipal treasurer to the Department of Revenue, the 16 municipality and the county collector; first to the 17 Department of Revenue and the municipality in direct 18 proportion to the tax incremental revenue received from the 19 State and the municipality, but not to exceed the total 20 incremental revenue received from the State or the 21 municipality less any annual surplus distribution of 22 incremental revenue previously made; with any remaining funds 23 to be paid to the County Collector who shall immediately 24 thereafter pay said funds to the taxing districts in the 25 redevelopment project area in the same manner and proportion 26 as the most recent distribution by the county collector to 27 the affected districts of real property taxes from real 28 property in the redevelopment project area. 29 Upon the payment of all redevelopment project costs, 30 retirement of obligations and the distribution of any excess 31 monies pursuant to this Section, the municipality shall adopt 32 an ordinance dissolving the special tax allocation fund for 33 the redevelopment project area and terminating the 34 designation of the redevelopment project area as a HB0305 Engrossed -93- LRB9101600PTpk 1 redevelopment project area. Municipalities shall notify 2 affected taxing districts prior to November 1 if the 3 redevelopment project area is to be terminated by December 31 4 of that same year. If a municipality extends estimated dates 5 of completion of a redevelopment project and retirement of 6 obligations to finance a redevelopment project, as allowed by 7 this amendatory Act of 1993, that extension shall not extend 8 the property tax increment allocation financing authorized by 9 this Section. Thereafter the rates of the taxing districts 10 shall be extended and taxes levied, collected and distributed 11 in the manner applicable in the absence of the adoption of 12 tax increment allocation financing. 13 Nothing in this Section shall be construed as relieving 14 property in such redevelopment project areas from being 15 assessed as provided in the Property Tax Code or as relieving 16 owners of such property from paying a uniform rate of taxes, 17 as required by Section 4 of Article 9 of the Illinois 18 Constitution. 19 (Source: P.A. 90-258, eff. 7-30-97.) 20 (65 ILCS 5/11-74.4-8a) (from Ch. 24, par. 11-74.4-8a) 21 Sec. 11-74.4-8a. (1) Until June 1, 1988, a municipality 22 which has adopted tax increment allocation financing prior to 23 January 1, 1987, may by ordinance (1) authorize the 24 Department of Revenue, subject to appropriation, to annually 25 certify and cause to be paid from the Illinois Tax Increment 26 Fund to such municipality for deposit in the municipality's 27 special tax allocation fund an amount equal to the Net State 28 Sales Tax Increment and (2) authorize the Department of 29 Revenue to annually notify the municipality of the amount of 30 the Municipal Sales Tax Increment which shall be deposited by 31 the municipality in the municipality's special tax allocation 32 fund. Provided that for purposes of this Section no 33 amendments adding additional area to the redevelopment HB0305 Engrossed -94- LRB9101600PTpk 1 project area which has been certified as the State Sales Tax 2 Boundary shall be taken into account if such amendments are 3 adopted by the municipality after January 1, 1987. If an 4 amendment is adopted which decreases the area of a State 5 Sales Tax Boundary, the municipality shall update the list 6 required by subsection (3)(a) of this Section. The Retailers' 7 Occupation Tax liability, Use Tax liability, Service 8 Occupation Tax liability and Service Use Tax liability for 9 retailers and servicemen located within the disconnected area 10 shall be excluded from the base from which tax increments are 11 calculated and the revenue from any such retailer or 12 serviceman shall not be included in calculating incremental 13 revenue payable to the municipality. A municipality adopting 14 an ordinance under this subsection (1) of this Section for a 15 redevelopment project area which is certified as a State 16 Sales Tax Boundary shall not be entitled to payments of State 17 taxes authorized under subsection (2) of this Section for the 18 same redevelopment project area. Nothing herein shall be 19 construed to prevent a municipality from receiving payment of 20 State taxes authorized under subsection (2) of this Section 21 for a separate redevelopment project area that does not 22 overlap in any way with the State Sales Tax Boundary 23 receiving payments of State taxes pursuant to subsection (1) 24 of this Section. 25 A certified copy of such ordinance shall be submitted by 26 the municipality to the Department of Commerce and Community 27 Affairs and the Department of Revenue not later than 30 days 28 after the effective date of the ordinance. Upon submission 29 of the ordinances, and the information required pursuant to 30 subsection 3 of this Section, the Department of Revenue shall 31 promptly determine the amount of such taxes paid under the 32 Retailers' Occupation Tax Act, Use Tax Act, Service Use Tax 33 Act, the Service Occupation Tax Act, the Municipal Retailers' 34 Occupation Tax Act and the Municipal Service Occupation Tax HB0305 Engrossed -95- LRB9101600PTpk 1 Act by retailers and servicemen on transactions at places 2 located in the redevelopment project area during the base 3 year, and shall certify all the foregoing "initial sales tax 4 amounts" to the municipality within 60 days of submission of 5 the list required of subsection (3)(a) of this Section. 6 If a retailer or serviceman with a place of business 7 located within a redevelopment project area also has one or 8 more other places of business within the municipality but 9 outside the redevelopment project area, the retailer or 10 serviceman shall, upon request of the Department of Revenue, 11 certify to the Department of Revenue the amount of taxes paid 12 pursuant to the Retailers' Occupation Tax Act, the Municipal 13 Retailers' Occupation Tax Act, the Service Occupation Tax Act 14 and the Municipal Service Occupation Tax Act at each place of 15 business which is located within the redevelopment project 16 area in the manner and for the periods of time requested by 17 the Department of Revenue. 18 When the municipality determines that a portion of an 19 increase in the aggregate amount of taxes paid by retailers 20 and servicemen under the Retailers' Occupation Tax Act, Use 21 Tax Act, Service Use Tax Act, or the Service Occupation Tax 22 Act is the result of a retailer or serviceman initiating 23 retail or service operations in the redevelopment project 24 area by such retailer or serviceman with a resulting 25 termination of retail or service operations by such retailer 26 or serviceman at another location in Illinois in the standard 27 metropolitan statistical area of such municipality, the 28 Department of Revenue shall be notified that the retailers 29 occupation tax liability, use tax liability, service 30 occupation tax liability, or service use tax liability from 31 such retailer's or serviceman's terminated operation shall be 32 included in the base Initial Sales Tax Amounts from which the 33 State Sales Tax Increment is calculated for purposes of State 34 payments to the affected municipality; provided, however, for HB0305 Engrossed -96- LRB9101600PTpk 1 purposes of this paragraph "termination" shall mean a closing 2 of a retail or service operation which is directly related to 3 the opening of the same retail or service operation in a 4 redevelopment project area which is included within a State 5 Sales Tax Boundary, but it shall not include retail or 6 service operations closed for reasons beyond the control of 7 the retailer or serviceman, as determined by the Department. 8 If the municipality makes the determination referred to in 9 the prior paragraph and notifies the Department and if the 10 relocation is from a location within the municipality, the 11 Department, at the request of the municipality, shall adjust 12 the certified aggregate amount of taxes that constitute the 13 Municipal Sales Tax Increment paid by retailers and 14 servicemen on transactions at places of business located 15 within the State Sales Tax Boundary during the base year 16 using the same procedures as are employed to make the 17 adjustment referred to in the prior paragraph. The adjusted 18 Municipal Sales Tax Increment calculated by the Department 19 shall be sufficient to satisfy the requirements of subsection 20 (1) of this Section. 21 When a municipality which has adopted tax increment 22 allocation financing in 1986 determines that a portion of the 23 aggregate amount of taxes paid by retailers and servicemen 24 under the Retailers Occupation Tax Act, Use Tax Act, Service 25 Use Tax Act, or Service Occupation Tax Act, the Municipal 26 Retailers' Occupation Tax Act and the Municipal Service 27 Occupation Tax Act, includes revenue of a retailer or 28 serviceman which terminated retailer or service operations in 29 1986, prior to the adoption of tax increment allocation 30 financing, the Department of Revenue shall be notified by 31 such municipality that the retailers' occupation tax 32 liability, use tax liability, service occupation tax 33 liability or service use tax liability, from such retailer's 34 or serviceman's terminated operations shall be excluded from HB0305 Engrossed -97- LRB9101600PTpk 1 the Initial Sales Tax Amounts for such taxes. The revenue 2 from any such retailer or serviceman which is excluded from 3 the base year under this paragraph, shall not be included in 4 calculating incremental revenues if such retailer or 5 serviceman reestablishes such business in the redevelopment 6 project area. 7 For State fiscal year 1992, the Department of Revenue 8 shall budget, and the Illinois General Assembly shall 9 appropriate from the Illinois Tax Increment Fund in the State 10 treasury, an amount not to exceed $18,000,000 to pay to each 11 eligible municipality the Net State Sales Tax Increment to 12 which such municipality is entitled. 13 Beginning on January 1, 1993, each municipality's 14 proportional share of the Illinois Tax Increment Fund shall 15 be determined by adding the annual Net State Sales Tax 16 Increment and the annual Net Utility Tax Increment to 17 determine the Annual Total Increment. The ratio of the Annual 18 Total Increment of each municipality to the Annual Total 19 Increment for all municipalities, as most recently calculated 20 by the Department, shall determine the proportional shares of 21 the Illinois Tax Increment Fund to be distributed to each 22 municipality. 23 Beginning in October, 1993, and each January, April, July 24 and October thereafter, the Department of Revenue shall 25 certify to the Treasurer and the Comptroller the amounts 26 payable quarter annually during the fiscal year to each 27 municipality under this Section. The Comptroller shall 28 promptly then draw warrants, ordering the State Treasurer to 29 pay such amounts from the Illinois Tax Increment Fund in the 30 State treasury. 31 The Department of Revenue shall utilize the same periods 32 established for determining State Sales Tax Increment to 33 determine the Municipal Sales Tax Increment for the area 34 within a State Sales Tax Boundary and certify such amounts to HB0305 Engrossed -98- LRB9101600PTpk 1 such municipal treasurer who shall transfer such amounts to 2 the special tax allocation fund. 3 The provisions of this subsection (1) do not apply to 4 additional municipal retailers' occupation or service 5 occupation taxes imposed by municipalities using their home 6 rule powers or imposed pursuant to Sections 8-11-1.3, 7 8-11-1.4 and 8-11-1.5 of this Act. A municipality shall not 8 receive from the State any share of the Illinois Tax 9 Increment Fund unless such municipality deposits all its 10 Municipal Sales Tax Increment and the local incremental real 11 property tax revenues, as provided herein, into the 12 appropriate special tax allocation fund. A municipality 13 located within an economic development project area created 14 under the County Economic Development Project Area Property 15 Tax Allocation Act which has abated any portion of its 16 property taxes which otherwise would have been deposited in 17 its special tax allocation fund shall not receive from the 18 State the Net Sales Tax Increment. 19 (2) A municipality which has adopted tax increment 20 allocation financing with regard to an industrial park or 21 industrial park conservation area, prior to January 1, 1988, 22 may by ordinance authorize the Department of Revenue to 23 annually certify and pay from the Illinois Tax Increment Fund 24 to such municipality for deposit in the municipality's 25 special tax allocation fund an amount equal to the Net State 26 Utility Tax Increment. Provided that for purposes of this 27 Section no amendments adding additional area to the 28 redevelopment project area shall be taken into account if 29 such amendments are adopted by the municipality after January 30 1, 1988. Municipalities adopting an ordinance under this 31 subsection (2) of this Section for a redevelopment project 32 area shall not be entitled to payment of State taxes 33 authorized under subsection (1) of this Section for the same 34 redevelopment project area which is within a State Sales Tax HB0305 Engrossed -99- LRB9101600PTpk 1 Boundary. Nothing herein shall be construed to prevent a 2 municipality from receiving payment of State taxes authorized 3 under subsection (1) of this Section for a separate 4 redevelopment project area within a State Sales Tax Boundary 5 that does not overlap in any way with the redevelopment 6 project area receiving payments of State taxes pursuant to 7 subsection (2) of this Section. 8 A certified copy of such ordinance shall be submitted to 9 the Department of Commerce and Community Affairs and the 10 Department of Revenue not later than 30 days after the 11 effective date of the ordinance. 12 When a municipality determines that a portion of an 13 increase in the aggregate amount of taxes paid by industrial 14 or commercial facilities under the Public Utilities Act, is 15 the result of an industrial or commercial facility initiating 16 operations in the redevelopment project area with a resulting 17 termination of such operations by such industrial or 18 commercial facility at another location in Illinois, the 19 Department of Revenue shall be notified by such municipality 20 that such industrial or commercial facility's liability under 21 the Public Utility Tax Act shall be included in the base from 22 which tax increments are calculated for purposes of State 23 payments to the affected municipality. 24 After receipt of the calculations by the public utility 25 as required by subsection (4) of this Section, the Department 26 of Revenue shall annually budget and the Illinois General 27 Assembly shall annually appropriate from the General Revenue 28 Fund through State Fiscal Year 1989, and thereafter from the 29 Illinois Tax Increment Fund, an amount sufficient to pay to 30 each eligible municipality the amount of incremental revenue 31 attributable to State electric and gas taxes as reflected by 32 the charges imposed on persons in the project area to which 33 such municipality is entitled by comparing the preceding 34 calendar year with the base year as determined by this HB0305 Engrossed -100- LRB9101600PTpk 1 Section. Beginning on January 1, 1993, each municipality's 2 proportional share of the Illinois Tax Increment Fund shall 3 be determined by adding the annual Net State Utility Tax 4 Increment and the annual Net Utility Tax Increment to 5 determine the Annual Total Increment. The ratio of the Annual 6 Total Increment of each municipality to the Annual Total 7 Increment for all municipalities, as most recently calculated 8 by the Department, shall determine the proportional shares of 9 the Illinois Tax Increment Fund to be distributed to each 10 municipality. 11 A municipality shall not receive any share of the 12 Illinois Tax Increment Fund from the State unless such 13 municipality imposes the maximum municipal charges authorized 14 pursuant to Section 9-221 of the Public Utilities Act and 15 deposits all municipal utility tax incremental revenues as 16 certified by the public utilities, and all local real estate 17 tax increments into such municipality's special tax 18 allocation fund. 19 (3) Within 30 days after the adoption of the ordinance 20 required by either subsection (1) or subsection (2) of this 21 Section, the municipality shall transmit to the Department of 22 Commerce and Community Affairs and the Department of Revenue 23 the following: 24 (a) if applicable, a certified copy of the 25 ordinance required by subsection (1) accompanied by a 26 complete list of street names and the range of street 27 numbers of each street located within the redevelopment 28 project area for which payments are to be made under this 29 Section in both the base year and in the year preceding 30 the payment year; and the addresses of persons registered 31 with the Department of Revenue; and, the name under which 32 each such retailer or serviceman conducts business at 33 that address, if different from the corporate name; and 34 the Illinois Business Tax Number of each such person (The HB0305 Engrossed -101- LRB9101600PTpk 1 municipality shall update this list in the event of a 2 revision of the redevelopment project area, or the 3 opening or closing or name change of any street or part 4 thereof in the redevelopment project area, or if the 5 Department of Revenue informs the municipality of an 6 addition or deletion pursuant to the monthly updates 7 given by the Department.); 8 (b) if applicable, a certified copy of the 9 ordinance required by subsection (2) accompanied by a 10 complete list of street names and range of street numbers 11 of each street located within the redevelopment project 12 area, the utility customers in the project area, and the 13 utilities serving the redevelopment project areas; 14 (c) certified copies of the ordinances approving 15 the redevelopment plan and designating the redevelopment 16 project area; 17 (d) a copy of the redevelopment plan as approved by 18 the municipality; 19 (e) an opinion of legal counsel that the 20 municipality had complied with the requirements of this 21 Act; and 22 (f) a certification by the chief executive officer 23 of the municipality that with regard to a redevelopment 24 project area: (1) the municipality has committed all of 25 the municipal tax increment created pursuant to this Act 26 for deposit in the special tax allocation fund, (2) the 27 redevelopment projects described in the redevelopment 28 plan would not be completed without the use of State 29 incremental revenues pursuant to this Act, (3) the 30 municipality will pursue the implementation of the 31 redevelopment plan in an expeditious manner, (4) the 32 incremental revenues created pursuant to this Section 33 will be exclusively utilized for the development of the 34 redevelopment project area, and (5) the increased revenue HB0305 Engrossed -102- LRB9101600PTpk 1 created pursuant to this Section shall be used 2 exclusively to pay redevelopment project costs as defined 3 in this Act. 4 (4) The Department of Revenue upon receipt of the 5 information set forth in paragraph (b) of subsection (3) 6 shall immediately forward such information to each public 7 utility furnishing natural gas or electricity to buildings 8 within the redevelopment project area. Upon receipt of such 9 information, each public utility shall promptly: 10 (a) provide to the Department of Revenue and the 11 municipality separate lists of the names and addresses of 12 persons within the redevelopment project area receiving 13 natural gas or electricity from such public utility. 14 Such list shall be updated as necessary by the public 15 utility. Each month thereafter the public utility shall 16 furnish the Department of Revenue and the municipality 17 with an itemized listing of charges imposed pursuant to 18 Sections 9-221 and 9-222 of the Public Utilities Act on 19 persons within the redevelopment project area. 20 (b) determine the amount of charges imposed 21 pursuant to Sections 9-221 and 9-222 of the Public 22 Utilities Act on persons in the redevelopment project 23 area during the base year, both as a result of municipal 24 taxes on electricity and gas and as a result of State 25 taxes on electricity and gas and certify such amounts 26 both to the municipality and the Department of Revenue; 27 and 28 (c) determine the amount of charges imposed 29 pursuant to Sections 9-221 and 9-222 of the Public 30 Utilities Act on persons in the redevelopment project 31 area on a monthly basis during the base year, both as a 32 result of State and municipal taxes on electricity and 33 gas and certify such separate amounts both to the 34 municipality and the Department of Revenue. HB0305 Engrossed -103- LRB9101600PTpk 1 After the determinations are made in paragraphs (b) and 2 (c), the public utility shall monthly during the existence of 3 the redevelopment project area notify the Department of 4 Revenue and the municipality of any increase in charges over 5 the base year determinations made pursuant to paragraphs (b) 6 and (c). 7 (5) The payments authorized under this Section shall be 8 deposited by the municipal treasurer in the special tax 9 allocation fund of the municipality, which for accounting 10 purposes shall identify the sources of each payment as: 11 municipal receipts from the State retailers occupation, 12 service occupation, use and service use taxes; and municipal 13 public utility taxes charged to customers under the Public 14 Utilities Act and State public utility taxes charged to 15 customers under the Public Utilities Act. 16 (6) Before the effective date of this amendatory Act of 17 the 91st General Assembly, any municipality receiving 18 payments authorized under this Section for any redevelopment 19 project area or area within a State Sales Tax Boundary within 20 the municipality shall submit to the Department of Revenue 21 and to the taxing districts which are sent the notice 22 required by Section 6 of this Act annually within 180 days 23 after the close of each municipal fiscal year the following 24 information for the immediately preceding fiscal year: 25 (a) Any amendments to the redevelopment plan, the 26 redevelopment project area, or the State Sales Tax 27 Boundary. 28 (b) Audited financial statements of the special tax 29 allocation fund. 30 (c) Certification of the Chief Executive Officer of 31 the municipality that the municipality has complied with 32 all of the requirements of this Act during the preceding 33 fiscal year. 34 (d) An opinion of legal counsel that the HB0305 Engrossed -104- LRB9101600PTpk 1 municipality is in compliance with this Act. 2 (e) An analysis of the special tax allocation fund 3 which sets forth: 4 (1) the balance in the special tax allocation 5 fund at the beginning of the fiscal year; 6 (2) all amounts deposited in the special tax 7 allocation fund by source; 8 (3) all expenditures from the special tax 9 allocation fund by category of permissible 10 redevelopment project cost; and 11 (4) the balance in the special tax allocation 12 fund at the end of the fiscal year including a 13 breakdown of that balance by source. Such ending 14 balance shall be designated as surplus if it is not 15 required for anticipated redevelopment project costs 16 or to pay debt service on bonds issued to finance 17 redevelopment project costs, as set forth in Section 18 11-74.4-7 hereof. 19 (f) A description of all property purchased by the 20 municipality within the redevelopment project area 21 including: 22 1. Street address 23 2. Approximate size or description of property 24 3. Purchase price 25 4. Seller of property. 26 (g) A statement setting forth all activities 27 undertaken in furtherance of the objectives of the 28 redevelopment plan, including: 29 1. Any project implemented in the preceding 30 fiscal year 31 2. A description of the redevelopment 32 activities undertaken 33 3. A description of any agreements entered 34 into by the municipality with regard to the HB0305 Engrossed -105- LRB9101600PTpk 1 disposition or redevelopment of any property within 2 the redevelopment project area or the area within 3 the State Sales Tax Boundary. 4 (h) With regard to any obligations issued by the 5 municipality: 6 1. copies of bond ordinances or resolutions 7 2. copies of any official statements 8 3. an analysis prepared by financial advisor 9 or underwriter setting forth: (a) nature and term of 10 obligation; and (b) projected debt service including 11 required reserves and debt coverage. 12 (i) A certified audit report reviewing compliance 13 with this statute performed by an independent public 14 accountant certified and licensed by the authority of the 15 State of Illinois. The financial portion of the audit 16 must be conducted in accordance with Standards for Audits 17 of Governmental Organizations, Programs, Activities, and 18 Functions adopted by the Comptroller General of the 19 United States (1981), as amended. The audit report shall 20 contain a letter from the independent certified public 21 accountant indicating compliance or noncompliance with 22 the requirements of subsection (q) of Section 11-74.4-3. 23 If the audit indicates that expenditures are not in 24 compliance with the law, the Department of Revenue shall 25 withhold State sales and utility tax increment payments 26 to the municipality until compliance has been reached, 27 and an amount equal to the ineligible expenditures has 28 been returned to the Special Tax Allocation Fund. 29 (6.1) After July 29, 1988 and before the effective date 30 of this amendatory Act of the 91st General Assembly, any 31 funds which have not been designated for use in a specific 32 development project in the annual report shall be designated 33 as surplus. No funds may be held in the Special Tax 34 Allocation Fund for more than 36 months from the date of HB0305 Engrossed -106- LRB9101600PTpk 1 receipt unless the money is required for payment of 2 contractual obligations for specific development project 3 costs. If held for more than 36 months in violation of the 4 preceding sentence, such funds shall be designated as 5 surplus. Any funds designated as surplus must first be used 6 for early redemption of any bond obligations. Any funds 7 designated as surplus which are not disposed of as otherwise 8 provided in this paragraph, shall be distributed as surplus 9 as provided in Section 11-74.4-7. 10 (7) Any appropriation made pursuant to this Section for 11 the 1987 State fiscal year shall not exceed the amount of $7 12 million and for the 1988 State fiscal year the amount of $10 13 million. The amount which shall be distributed to each 14 municipality shall be the incremental revenue to which each 15 municipality is entitled as calculated by the Department of 16 Revenue, unless the requests of the municipality exceed the 17 appropriation, then the amount to which each municipality 18 shall be entitled shall be prorated among the municipalities 19 in the same proportion as the increment to which the 20 municipality would be entitled bears to the total increment 21 which all municipalities would receive in the absence of this 22 limitation, provided that no municipality may receive an 23 amount in excess of 15% of the appropriation. For the 1987 24 Net State Sales Tax Increment payable in Fiscal Year 1989, no 25 municipality shall receive more than 7.5% of the total 26 appropriation; provided, however, that any of the 27 appropriation remaining after such distribution shall be 28 prorated among municipalities on the basis of their pro rata 29 share of the total increment. Beginning on January 1, 1993, 30 each municipality's proportional share of the Illinois Tax 31 Increment Fund shall be determined by adding the annual Net 32 State Sales Tax Increment and the annual Net Utility Tax 33 Increment to determine the Annual Total Increment. The ratio 34 of the Annual Total Increment of each municipality to the HB0305 Engrossed -107- LRB9101600PTpk 1 Annual Total Increment for all municipalities, as most 2 recently calculated by the Department, shall determine the 3 proportional shares of the Illinois Tax Increment Fund to be 4 distributed to each municipality. 5 (7.1) No distribution of Net State Sales Tax Increment 6 to a municipality for an area within a State Sales Tax 7 Boundary shall exceed in any State Fiscal Year an amount 8 equal to 3 times the sum of the Municipal Sales Tax 9 Increment, the real property tax increment and deposits of 10 funds from other sources, excluding state and federal funds, 11 as certified by the city treasurer to the Department of 12 Revenue for an area within a State Sales Tax Boundary. After 13 July 29, 1988, for those municipalities which issue bonds 14 between June 1, 1988 and 3 years from July 29, 1988 to 15 finance redevelopment projects within the area in a State 16 Sales Tax Boundary, the distribution of Net State Sales Tax 17 Increment during the 16th through 20th years from the date of 18 issuance of the bonds shall not exceed in any State Fiscal 19 Year an amount equal to 2 times the sum of the Municipal 20 Sales Tax Increment, the real property tax increment and 21 deposits of funds from other sources, excluding State and 22 federal funds. 23 (8) Any person who knowingly files or causes to be filed 24 false information for the purpose of increasing the amount of 25 any State tax incremental revenue commits a Class A 26 misdemeanor. 27 (9) The following procedures shall be followed to 28 determine whether municipalities have complied with the Act 29 for the purpose of receiving distributions after July 1, 1989 30 pursuant to subsection (1) of this Section 11-74.4-8a. 31 (a) The Department of Revenue shall conduct a 32 preliminary review of the redevelopment project areas and 33 redevelopment plans pertaining to those municipalities 34 receiving payments from the State pursuant to subsection HB0305 Engrossed -108- LRB9101600PTpk 1 (1) of Section 8a of this Act for the purpose of 2 determining compliance with the following standards: 3 (1) For any municipality with a population of 4 more than 12,000 as determined by the 1980 U.S. 5 Census: (a) the redevelopment project area, or in 6 the case of a municipality which has more than one 7 redevelopment project area, each such area, must be 8 contiguous and the total of all such areas shall not 9 comprise more than 25% of the area within the 10 municipal boundaries nor more than 20% of the 11 equalized assessed value of the municipality; (b) 12 the aggregate amount of 1985 taxes in the 13 redevelopment project area, or in the case of a 14 municipality which has more than one redevelopment 15 project area, the total of all such areas, shall be 16 not more than 25% of the total base year taxes paid 17 by retailers and servicemen on transactions at 18 places of business located within the municipality 19 under the Retailers' Occupation Tax Act, the Use Tax 20 Act, the Service Use Tax Act, and the Service 21 Occupation Tax Act. Redevelopment project areas 22 created prior to 1986 are not subject to the above 23 standards if their boundaries were not amended in 24 1986. 25 (2) For any municipality with a population of 26 12,000 or less as determined by the 1980 U.S. 27 Census: (a) the redevelopment project area, or in 28 the case of a municipality which has more than one 29 redevelopment project area, each such area, must be 30 contiguous and the total of all such areas shall not 31 comprise more than 35% of the area within the 32 municipal boundaries nor more than 30% of the 33 equalized assessed value of the municipality; (b) 34 the aggregate amount of 1985 taxes in the HB0305 Engrossed -109- LRB9101600PTpk 1 redevelopment project area, or in the case of a 2 municipality which has more than one redevelopment 3 project area, the total of all such areas, shall not 4 be more than 35% of the total base year taxes paid 5 by retailers and servicemen on transactions at 6 places of business located within the municipality 7 under the Retailers' Occupation Tax Act, the Use Tax 8 Act, the Service Use Tax Act, and the Service 9 Occupation Tax Act. Redevelopment project areas 10 created prior to 1986 are not subject to the above 11 standards if their boundaries were not amended in 12 1986. 13 (3) Such preliminary review of the 14 redevelopment project areas applying the above 15 standards shall be completed by November 1, 1988, 16 and on or before November 1, 1988, the Department 17 shall notify each municipality by certified mail, 18 return receipt requested that either (1) the 19 Department requires additional time in which to 20 complete its preliminary review; or (2) the 21 Department is issuing either (a) a Certificate of 22 Eligibility or (b) a Notice of Review. If the 23 Department notifies a municipality that it requires 24 additional time to complete its preliminary 25 investigation, it shall complete its preliminary 26 investigation no later than February 1, 1989, and by 27 February 1, 1989 shall issue to each municipality 28 either (a) a Certificate of Eligibility or (b) a 29 Notice of Review. A redevelopment project area for 30 which a Certificate of Eligibility has been issued 31 shall be deemed a "State Sales Tax Boundary." 32 (4) The Department of Revenue shall also issue 33 a Notice of Review if the Department has received a 34 request by November 1, 1988 to conduct such a review HB0305 Engrossed -110- LRB9101600PTpk 1 from taxpayers in the municipality, local taxing 2 districts located in the municipality or the State 3 of Illinois, or if the redevelopment project area 4 has more than 5 retailers and has had growth in 5 State sales tax revenue of more than 15% from 6 calendar year 1985 to 1986. 7 (b) For those municipalities receiving a Notice of 8 Review, the Department will conduct a secondary review 9 consisting of: (i) application of the above standards 10 contained in subsection (9)(a)(1)(a) and (b) or 11 (9)(a)(2)(a) and (b), and (ii) the definitions of 12 blighted and conservation area provided for in Section 13 11-74.4-3. Such secondary review shall be completed by 14 July 1, 1989. 15 Upon completion of the secondary review, the 16 Department will issue (a) a Certificate of Eligibility or 17 (b) a Preliminary Notice of Deficiency. Any municipality 18 receiving a Preliminary Notice of Deficiency may amend 19 its redevelopment project area to meet the standards and 20 definitions set forth in this paragraph (b). This amended 21 redevelopment project area shall become the "State Sales 22 Tax Boundary" for purposes of determining the State Sales 23 Tax Increment. 24 (c) If the municipality advises the Department of 25 its intent to comply with the requirements of paragraph 26 (b) of this subsection outlined in the Preliminary Notice 27 of Deficiency, within 120 days of receiving such notice 28 from the Department, the municipality shall submit 29 documentation to the Department of the actions it has 30 taken to cure any deficiencies. Thereafter, within 30 31 days of the receipt of the documentation, the Department 32 shall either issue a Certificate of Eligibility or a 33 Final Notice of Deficiency. If the municipality fails to 34 advise the Department of its intent to comply or fails to HB0305 Engrossed -111- LRB9101600PTpk 1 submit adequate documentation of such cure of 2 deficiencies the Department shall issue a Final Notice of 3 Deficiency that provides that the municipality is 4 ineligible for payment of the Net State Sales Tax 5 Increment. 6 (d) If the Department issues a final determination 7 of ineligibility, the municipality shall have 30 days 8 from the receipt of determination to protest and request 9 a hearing. Such hearing shall be conducted in accordance 10 with Sections 10-25, 10-35, 10-40, and 10-50 of the 11 Illinois Administrative Procedure Act. The decision 12 following the hearing shall be subject to review under 13 the Administrative Review Law. 14 (e) Any Certificate of Eligibility issued pursuant 15 to this subsection 9 shall be binding only on the State 16 for the purposes of establishing municipal eligibility to 17 receive revenue pursuant to subsection (1) of this 18 Section 11-74.4-8a. 19 (f) It is the intent of this subsection that the 20 periods of time to cure deficiencies shall be in addition 21 to all other periods of time permitted by this Section, 22 regardless of the date by which plans were originally 23 required to be adopted. To cure said deficiencies, 24 however, the municipality shall be required to follow the 25 procedures and requirements pertaining to amendments, as 26 provided in Sections 11-74.4-5 and 11-74.4-6 of this Act. 27 (10) If a municipality adopts a State Sales Tax Boundary 28 in accordance with the provisions of subsection (9) of this 29 Section, such boundaries shall subsequently be utilized to 30 determine Revised Initial Sales Tax Amounts and the Net State 31 Sales Tax Increment; provided, however, that such revised 32 State Sales Tax Boundary shall not have any effect upon the 33 boundary of the redevelopment project area established for 34 the purposes of determining the ad valorem taxes on real HB0305 Engrossed -112- LRB9101600PTpk 1 property pursuant to Sections 11-74.4-7 and 11-74.4-8 of this 2 Act nor upon the municipality's authority to implement the 3 redevelopment plan for that redevelopment project area. For 4 any redevelopment project area with a smaller State Sales Tax 5 Boundary within its area, the municipality may annually elect 6 to deposit the Municipal Sales Tax Increment for the 7 redevelopment project area in the special tax allocation fund 8 and shall certify the amount to the Department prior to 9 receipt of the Net State Sales Tax Increment. Any 10 municipality required by subsection (9) to establish a State 11 Sales Tax Boundary for one or more of its redevelopment 12 project areas shall submit all necessary information required 13 by the Department concerning such boundary and the retailers 14 therein, by October 1, 1989, after complying with the 15 procedures for amendment set forth in Sections 11-74.4-5 and 16 11-74.4-6 of this Act. Net State Sales Tax Increment 17 produced within the State Sales Tax Boundary shall be spent 18 only within that area. However expenditures of all municipal 19 property tax increment and municipal sales tax increment in a 20 redevelopment project area are not required to be spent 21 within the smaller State Sales Tax Boundary within such 22 redevelopment project area. 23 (11) The Department of Revenue shall have the authority 24 to issue rules and regulations for purposes of this Section. 25 and regulations for purposes of this Section. 26 (12) If, under Section 5.4.1 of the Illinois Enterprise 27 Zone Act, a municipality determines that property that lies 28 within a State Sales Tax Boundary has an improvement, 29 rehabilitation, or renovation that is entitled to a property 30 tax abatement, then that property along with any 31 improvements, rehabilitation, or renovations shall be 32 immediately removed from any State Sales Tax Boundary. The 33 municipality that made the determination shall notify the 34 Department of Revenue within 30 days after the determination. HB0305 Engrossed -113- LRB9101600PTpk 1 Once a property is removed from the State Sales Tax Boundary 2 because of the existence of a property tax abatement 3 resulting from an enterprise zone, then that property shall 4 not be permitted to be amended into a State Sales Tax 5 Boundary. 6 (Source: P.A. 90-258, eff. 7-30-97.) 7 Section 90. The State Mandates Act is amended by adding 8 Section 8.23 as follows: 9 (30 ILCS 805/8.23 new) 10 Sec. 8.23. Exempt mandate. Notwithstanding Sections 6 11 and 8 of this Act, no reimbursement by the State is required 12 for the implementation of any mandate created by this 13 amendatory Act of the 91st General Assembly. 14 Section 99. Effective date. This Act takes effect on 15 the first day of the third month after becoming law.