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91_HB0695
LRB9105016DHmg
1 AN ACT to amend the Economic Development Area Tax
2 Increment Allocation Act by changing Section 3.
3 Be it enacted by the People of the State of Illinois,
4 represented in the General Assembly:
5 Section 5. The Economic Development Area Tax Increment
6 Allocation Act is amended by changing Section 3 as follows:
7 (20 ILCS 620/3) (from Ch. 67 1/2, par. 1003)
8 Sec. 3. Definitions. In this Act, words or terms shall
9 have the following meanings unless the context or usage
10 clearly indicates that another meaning is intended.
11 (a) "Department" means the Department of Commerce and
12 Community Affairs.
13 (b) "Economic development plan" means the written plan
14 of a municipality which sets forth an economic development
15 program for an economic development project area. Each
16 economic development plan shall include but not be limited to
17 (1) estimated economic development project costs, (2) the
18 sources of funds to pay such costs, (3) the nature and term
19 of any obligations to be issued by the municipality to pay
20 such costs, (4) the most recent equalized assessed valuation
21 of the economic development project area, (5) an estimate of
22 the equalized assessed valuation of the economic development
23 project area after completion of an economic development
24 project, (6) the estimated date of completion of any economic
25 development project proposed to be undertaken, (7) a general
26 description of any proposed developer, user, or tenant of any
27 property to be located or improved within the economic
28 development project area, (8) a description of the type,
29 structure and general character of the facilities to be
30 developed or improved in the economic development project
31 area, (9) a description of the general land uses to apply in
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1 the economic development project area, (10) a description of
2 the type, class and number of employees to be employed in the
3 operation of the facilities to be developed or improved in
4 the economic development project area, and (11) a commitment
5 by the municipality to fair employment practices and an
6 affirmative action plan with respect to any economic
7 development program to be undertaken by the municipality.
8 (c) "Economic development project" means any development
9 project in furtherance of the objectives of this Act.
10 (d) "Economic development project area" means any
11 improved or vacant area which (1) is located within or
12 partially within or partially without the territorial limits
13 of a municipality, provided that no area without the
14 territorial limits of a municipality shall be included in an
15 economic development project area without the express consent
16 of the Department, acting as agent for the State, (2) is
17 contiguous, (3) is not less in the aggregate than three
18 hundred twenty acres, (4) is suitable for siting by any
19 commercial, manufacturing, industrial, research or
20 transportation enterprise of facilities to include but not be
21 limited to commercial businesses, offices, factories, mills,
22 processing plants, assembly plants, packing plants,
23 fabricating plants, industrial or commercial distribution
24 centers, warehouses, repair overhaul or service facilities,
25 freight terminals, research facilities, test facilities or
26 transportation facilities, whether or not such area has been
27 used at any time for such facilities and whether or not the
28 area has been used or is suitable for other uses, including
29 commercial agricultural purposes, and (5) which has been
30 approved and certified by the Department pursuant to this
31 Act.
32 (e) "Economic development project costs" mean and
33 include the sum total of all reasonable or necessary costs
34 incurred by a municipality incidental to an economic
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1 development project, including, without limitation, the
2 following:
3 (1) Costs of studies, surveys, development of plans and
4 specifications, implementation and administration of an
5 economic development plan, personnel and professional service
6 costs for architectural, engineering, legal, marketing,
7 financial, planning, police, fire, public works or other
8 services, provided that no charges for professional services
9 may be based on a percentage of incremental tax revenues;
10 (2) Property assembly costs within an economic
11 development project area, including but not limited to
12 acquisition of land and other real or personal property or
13 rights or interests therein, and specifically including
14 payments to developers or other nongovernmental persons as
15 reimbursement for property assembly costs incurred by such
16 developer or other nongovernmental person;
17 (3) Site preparation costs, including but not limited to
18 clearance of any area within an economic development project
19 area by demolition or removal of any existing buildings,
20 structures, fixtures, utilities and improvements and clearing
21 and grading; and including installation, repair,
22 construction, reconstruction, or relocation of public
23 streets, public utilities, and other public site improvements
24 within or without an economic development project area which
25 are essential to the preparation of the economic development
26 project area for use in accordance with an economic
27 development plan; and specifically including payments to
28 developers or other nongovernmental persons as reimbursement
29 for site preparation costs incurred by such developer or
30 nongovernmental person;
31 (4) Costs of renovation, rehabilitation, reconstruction,
32 relocation, repair or remodeling of any existing buildings,
33 improvements, and fixtures within an economic development
34 project area, and specifically including payments to
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1 developers or other nongovernmental persons as reimbursement
2 for such costs incurred by such developer or nongovernmental
3 person;
4 (5) Costs of construction within an economic development
5 project area of public improvements, including but not
6 limited to, buildings, structures, works, utilities or
7 fixtures;
8 (6) Financing costs, including but not limited to all
9 necessary and incidental expenses related to the issuance of
10 obligations, payment of any interest on any obligations
11 issued hereunder which accrues during the estimated period of
12 construction of any economic development project for which
13 such obligations are issued and for not exceeding 36 months
14 thereafter, and any reasonable reserves related to the
15 issuance of such obligations;
16 (7) All or a portion of a taxing district's capital
17 costs resulting from an economic development project
18 necessarily incurred or estimated to be incurred by a taxing
19 district in the furtherance of the objectives of an economic
20 development project, to the extent that the municipality by
21 written agreement accepts and approves such costs;
22 (8) Relocation costs to the extent that a municipality
23 determines that relocation costs shall be paid or is required
24 to make payment of relocation costs by federal or State law;
25 (9) The estimated tax revenues from real property in an
26 economic development project area acquired by a municipality
27 which, according to the economic development plan, is to be
28 used for a private use and which any taxing district would
29 have received had the municipality not adopted tax increment
30 allocation financing for an economic development project area
31 and which would result from such taxing district's levies
32 made after the time of the adoption by the municipality of
33 tax increment allocation financing to the time the current
34 equalized assessed value of real property in the economic
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1 development project area exceeds the total initial equalized
2 value of real property in said area;
3 (10) Costs of job training, advanced vocational or
4 career education, including but not limited to courses in
5 occupational, semi-technical or technical fields leading
6 directly to employment, incurred by one or more taxing
7 districts, provided that such costs are related to the
8 establishment and maintenance of additional job training,
9 advanced vocational education or career education programs
10 for persons employed or to be employed by employers located
11 in an economic development project area, and further provided
12 that when such costs are incurred by a taxing district or
13 taxing districts other than the municipality they shall be
14 set forth in a written agreement by or among the municipality
15 and the taxing district or taxing districts, which agreement
16 describes the program to be undertaken, including but not
17 limited to the number of employees to be trained, a
18 description of the training and services to be provided, the
19 number and type of positions available or to be available,
20 itemized costs of the program and sources of funds to pay the
21 same, and the term of the agreement. Such costs include,
22 specifically, the payment by community college districts of
23 costs pursuant to Sections 3-37, 3-38, 3-40 and 3-40.1 of the
24 Public Community College Act and by school districts of costs
25 pursuant to Sections 10-22.20a and 10-23.3a of The School
26 Code;
27 (11) Private financing costs incurred by developers or
28 other nongovernmental persons in connection with an economic
29 development project, and specifically including payments to
30 developers or other nongovernmental persons as reimbursement
31 for such costs incurred by such developer or other
32 nongovernmental person, provided that:
33 (A) private financing costs shall be paid or reimbursed
34 by a municipality only pursuant to the prior official action
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1 of the municipality evidencing an intent to pay or reimburse
2 such private financing costs;
3 (B) except as provided in subparagraph (D), the
4 aggregate amount of such costs paid or reimbursed by a
5 municipality in any one year shall not exceed 30% of such
6 costs paid or incurred by the developer or other
7 nongovernmental person in that year;
8 (C) private financing costs shall be paid or reimbursed
9 by a municipality solely from the special tax allocation fund
10 established pursuant to this Act and shall not be paid or
11 reimbursed from the proceeds of any obligations issued by a
12 municipality;
13 (D) if there are not sufficient funds available in the
14 special tax allocation fund in any year to make such payment
15 or reimbursement in full, any amount of such interest cost
16 remaining to be paid or reimbursed by a municipality shall
17 accrue and be payable when funds are available in the special
18 tax allocation fund to make such payment; and
19 (E) in connection with its approval and certification of
20 an economic development project pursuant to Section 5 of this
21 Act, the Department shall review any agreement authorizing
22 the payment or reimbursement by a municipality of private
23 financing costs in its consideration of the impact on the
24 revenues of the municipality and the affected taxing
25 districts of the use of tax increment allocation financing.
26 (f) "Municipality" means a city, village or incorporated
27 town.
28 (g) "Obligations" means any instrument evidencing the
29 obligation of a municipality to pay money, including without
30 limitation, bonds, notes, installment or financing contracts,
31 certificates, tax anticipation warrants or notes, vouchers,
32 and any other evidence of indebtedness.
33 (h) "Taxing districts" means counties, townships,
34 municipalities, and school, road, park, sanitary, mosquito
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1 abatement, forest preserve, public health, fire protection,
2 river conservancy, tuberculosis sanitarium and any other
3 municipal corporations or districts with the power to levy
4 taxes.
5 (Source: P.A. 86-38.)