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91_HB3968eng HB3968 Engrossed LRB9111880LDpk 1 AN ACT in relation to East St. Louis Area economic 2 development. 3 Be it enacted by the People of the State of Illinois, 4 represented in the General Assembly: 5 Section 1. This Act may be cited as the East St. Louis 6 Area Development Act of 2000. 7 Section 2. The General Assembly finds that there has 8 been a dramatic decrease in the population of depressed areas 9 in East St. Louis and that blight, deterioration and decay 10 have resulted in (a) inefficient and wasteful use of land 11 resources; (b) destruction of irreplaceable natural, 12 industrial, recreational, housing and commercial resources; 13 (c) diminished opportunity for the private home building 14 industry to operate at its highest potential capacity in 15 providing good housing needed for those who now live in 16 depressed areas and those expected to move to depressed areas 17 in the future, and to replace substandard housing; (d) the 18 need for costly and effective public facilities and services 19 at all levels; (e) unduly limited options for many depressed 20 areas residents as to where they may live, and the types of 21 housing and environment in which they may live; (f) a failure 22 to make the most economical use of the land available for 23 development in depressed areas; (g) decreasing employment and 24 business opportunities for the citizens of depressed areas, 25 and the inability of depressed areas to retain a tax base 26 adequate to support vital services for all our citizens, 27 particularly our poor and disadvantaged; and (h) the 28 decreased effectiveness of public and private facilities for 29 urban transportation. 30 Section 2.01. The General Assembly finds that better HB3968 Engrossed -2- LRB9111880LDpk 1 patterns of development and revitalization in the East St. 2 Louis depressed areas are essential to accommodate future 3 population growth; to prevent further deterioration of the 4 city and the people's physical and social environment; and to 5 make a positive contribution to improving the overall quality 6 of life in the East St. Louis depressed areas of Illinois. 7 The General Assembly finds that the health, welfare, morals 8 and safety of its citizens require the encouragement of well 9 planned, diversified and economically sound community 10 development, including major additions to existing areas of 11 depression. The General Assembly finds that desirable 12 community development on a significantly large scale has been 13 prevented by difficulties in (a) obtaining adequate financing 14 at moderate cost for enterprises which involve large initial 15 capital investment, extensive periods before investment can 16 be returned, and regular patterns of return; (b) the timely 17 assembly of sufficiently large sites in economically 18 favorable locations at reasonable costs; and (c) making 19 necessary arrangements among all private and public 20 organizations involved, for providing site and related 21 improvements (including streets, sewer and water facilities, 22 and other public and community facilities) in a timely and 23 coordinated manner. 24 Section 3. The following terms specified in Sections 25 3.01 through 3.08, whenever used or referred to in this Act, 26 shall have the meanings ascribed to them in those Sections, 27 except in those instances where the context clearly indicates 28 otherwise. 29 Section 3.01. "Authority" means the East St. Louis Area 30 Development Authority created by this Act. 31 Section 3.02. "Project" means any utility, structure, HB3968 Engrossed -3- LRB9111880LDpk 1 facility or other undertaking which will implement a defined, 2 organized, planned and scheduled, diversified, economically 3 and technologically sound, quality community environment, 4 which the authority is authorized to construct, reconstruct, 5 improve, equip or furnish under this Act. "Project" will 6 include, but is not limited to: buildings and other 7 facilities intended for use as classrooms, laboratories, 8 student residence halls, instructional and administrative 9 facilities for students, faculty, officers and employees, and 10 motor vehicle parking facilities and fixed equipment, and 11 industrial or manufacturing plants or facilities, any 12 industrial park, any commercial facilities, the construction 13 or improvement of streets, sidewalks, and sewer and water 14 facilities, the construction of schools, parks, playgrounds, 15 community and municipal buildings and the implementation of 16 new community development programs. "Project" further means 17 apartments, housing facilities, health, hospital and medical 18 facilities, stadiums, physical education installations, 19 hotels, motels, dormitories, New Town Programs, aquariums, 20 museums, convention centers, planetariums, civic buildings, 21 nursing homes, harbors, and terminal facilities. Nothing in 22 this Act shall be construed to authorize the financing for or 23 the construction of plants, projects or facilities for (1) 24 the manufacture or generation of electric energy in 25 competition with an electric supplier as defined in the 26 Electric Supplier Act or (2) the transmission, distribution 27 or manufacture of gas in competition with a public utility as 28 defined in "An Act concerning public utilities", approved 29 June 29, 1921, as amended. 30 Section 3.03. "Land development" means the process of 31 clearing and grading land, making, installing, or 32 constructing water lines and water supply installations, 33 sewer lines and sewage disposal installations, steam, gas, HB3968 Engrossed -4- LRB9111880LDpk 1 and electrical plants and installations, roads, streets, 2 curbs, gutters, sidewalks, storm drainage facilities, and 3 other installations or work, whether on or off the site, 4 which the Authority deems necessary or desirable to prepare 5 land for residential, commercial, industrial, or other uses, 6 or in providing facilities for public or other facilities. 7 "Land development" further means to construct, acquire by 8 gift or purchase, reconstruct, improve, better or extend any 9 project within or without the municipality or partially 10 within the municipality, but in no event farther than 3 miles 11 from the territorial boundaries of such municipality, and to 12 acquire by gift or purchase lands or rights in land in 13 connection therewith. 14 Section 3.04. "Blighted area" means any area of not 15 less, in the aggregate, than 2 acres located within the 16 territorial limits of the East St. Louis depressed areas 17 where industrial, commercial, recreational, residential, or 18 any other buildings or improvements, because of age, 19 dilapidation, obsolescence, overcrowding, lack of 20 ventilation, light, sanitary facilities, adequate utilities, 21 or excessive land coverage, deleterious land use or layout or 22 any combination of these factors, are detrimental to the 23 public safety, health, morals or welfare. 24 Section 3.05. "Redevelopment plan" means the 25 comprehensive process for the clearing or rehabilitation and 26 physical development of a commercial, residential, industrial 27 or recreational blighted area, and necessary for the 28 elimination or rehabilitation of a residential, commercial, 29 or industrially blighted area and the protection of adjacent 30 areas, and all administrative, funding and financial details 31 and proposals necessary to effectuate the plan, including but 32 not limited to a new community development program. HB3968 Engrossed -5- LRB9111880LDpk 1 Section 3.06. "Redevelopment area" means the blighted 2 area of not less in the aggregate than 2 acres, to be 3 developed in accordance with the redevelopment plan. 4 Section 3.07. "East St. Louis Depressed Areas" means the 5 territorial areas of East St. Louis, Alorton, Venice, 6 Centreville, Washington Park, and Brooklyn, Illinois. 7 Section 3.08. "Depressed Areas" means the areas of East 8 St. Louis, Alorton, Venice, Centreville, Washington Park, and 9 Brooklyn, Illinois. 10 Section 4. There is created an East St. Louis Area 11 Development Authority within the State of Illinois. The 12 Authority shall: (a) act as Public Developer in carrying out 13 community development programs in and for the East St. Louis 14 depressed areas of the State of Illinois; (b) make available 15 adequate management, administrative and technical, 16 financial, and other assistance necessary for encouraging the 17 defined, organized, planned and scheduled, diversified, 18 economically and technologically sound, quality community 19 environment in depressed areas, and to do so through the use 20 of management task force procedures which will rely to the 21 maximum extent on private enterprise; (c) strengthen the 22 capacity of the State and Federal governments to make their 23 resources available to the people of East St. Louis depressed 24 areas; (d) increase for all persons living in depressed areas 25 the available choices of locations for living and working, 26 thereby providing a more just economic and social 27 environment; (e) encourage the fullest utilization of the 28 economic potential of supply of residential, commercial and 29 industrial building sites at reasonable costs; (f) utilize 30 improved technology in producing the large volume of 31 well-designed housing needed to accommodate the people of HB3968 Engrossed -6- LRB9111880LDpk 1 depressed areas; (g) help create neighborhoods designed for 2 easier access between the places where people live and the 3 place where they work and find recreation; (h) encourage 4 desirable innovations in meeting domestic problems whether 5 physical, economical or social; and (i) assist, plan, 6 develop, build and construct any facility or project to 7 enhance the community environment and technological 8 management when requested to do so by any State, county or 9 federal agency, school district, community college, 10 municipality, municipal corporation, special district, 11 authority, local or State public body, commission, public 12 corporation or entity within the East St. Louis depressed 13 area. 14 Section 5. The Authority shall consist of 10 members, 15 including as members the Director of the Department of 16 Commerce and Community Affairs or his designee, the Director 17 of the Illinois Housing Development Authority or his 18 designee, the Executive Director of the Illinois Development 19 Finance Authority or his designee, and the mayors of East St. 20 Louis, Centreville, Venice, Brooklyn, Washington Park, and 21 Alorton or their respective designees. The other member of 22 the Authority shall be appointed by the Governor, by and with 23 the advice and consent of the Senate. One member of the 24 Authority shall be designated as chairman by the members of 25 the Authority. 26 If the Senate is not in session when the appointment is 27 made, the Governor shall make a temporary appointment as in 28 the case of a vacancy. The member appointed by the Governor 29 shall serve for a 4-year term expiring on the third Monday in 30 January or until his successor is appointed and qualified. 31 Any vacancy occurring in the office held by the member 32 appointed by the Governor, whether by death, resignation or 33 otherwise, shall be filled by the Governor in the same manner HB3968 Engrossed -7- LRB9111880LDpk 1 as the original appointment. A member appointed to fill a 2 vacancy shall serve for the remainder of the unexpired term 3 or until his successor is appointed and qualified. 4 Section 6. Members of the Authority shall serve without 5 compensation but shall be reimbursed for their reasonable 6 expenses necessarily incurred in the performance of their 7 duties and the exercise of their powers under this Act. Each 8 member shall, before entering upon the duties of his office, 9 take and subscribe to the constitutional oath of office. The 10 oath shall be filed in the office of the Secretary of State. 11 Section 7. The Authority shall meet at such times and 12 places as is provided for by the Authority or, in the absence 13 of such a provision, on call of the chairman after at least 5 14 days' written notice to the members or the request of 2 or 15 more members. Six members shall constitute a quorum. No 16 vacancy in the membership shall impair the right of a quorum 17 of the members to exercise all of the rights and powers, and 18 to perform all of the duties, of the Authority. 19 Section 8. The Authority may employ and fix the 20 compensation of an executive director, to serve as the chief 21 executive officer of the Authority, and such other agents or 22 employees as it considers necessary or desirable. Such 23 employment other than of technical or engineering personnel 24 shall be subject to the Personnel Code. If any employees are 25 transferred to the Authority from any other State agency, 26 such a transfer shall not affect the status of such employees 27 under the Personnel Code, under any retirement system under 28 the Illinois Pension Code, or under any civil service, merit 29 service or other law relating to State employment. 30 Section 9. The Authority has the following rights, HB3968 Engrossed -8- LRB9111880LDpk 1 powers and duties specified in Sections 9.01 through 9.25. 2 Section 9.01. To sue and be sued, implead and be 3 impleaded, complain and defend in all courts. 4 Section 9.02. To make regulations for the management and 5 regulation of its affairs. 6 Section 9.03. To acquire by purchase or gift, and hold 7 or dispose of real or personal property, or rights or 8 interests therein. 9 Section 9.04. To accept loans or grants of money or 10 materials or property of any kind from a Federal or State 11 agency or department or others, upon such terms and 12 conditions as may be imposed. 13 Section 9.05. To borrow money to implement any project, 14 or any combination of projects. 15 Section 9.06. To recommend the issuance of revenue bonds 16 to implement any project or combination of projects. 17 Section 9.07. To make contracts and leases and exercise 18 all instruments and perform all acts and do all things 19 necessary or convenient to carry out the powers granted in 20 this Act. 21 Section 9.08. To develop and recommend to the 22 municipalities in the East St. Louis depressed areas a long 23 range comprehensive master redevelopment plan for community 24 growth and development of depressed areas including assisting 25 in the preparation of new town applications to the Department 26 of Housing and Urban Development. HB3968 Engrossed -9- LRB9111880LDpk 1 Section 9.09. To collect, analyze and evaluate such 2 statistics, data and other information (including 3 demographic, economic, social, environmental and governmental 4 information) as will enable the Authority to transmit to the 5 corporate authorities within the East St. Louis depressed 6 areas, at the beginning of each year, a required report on 7 the growth of depressed areas for the year passed. Such 8 report shall include, but not be limited to: 9 (a) Information and statistics describing 10 characteristics of depressed areas growth and stabilization 11 and identifying significant trends and developments; 12 (b) A summary of significant problems facing depressed 13 areas as to their growth trends and development; 14 (c) An evaluation of the progress and effectiveness of 15 Federal, State, and local programs designed to meet such 16 problems and development and to carry out the depressed areas 17 urban growth policies; 18 (d) An assessment of the policies and structures of 19 existing and proposed interstate and regional planning and 20 development affecting such policy; and 21 (e) A review of State, Federal, local and private 22 policies, plans and programs relevant to such policy. 23 Section 9.10. To lease or rent any of the housing or 24 other accommodations or any of the lands, buildings, 25 structures or facilities in which the Authority holds fee 26 simple or lesser interest, and to otherwise sell, exchange, 27 transfer, or assign, any property, real or personal or any 28 interest therein, and to own, hold, clear and improve 29 property. 30 Section 9.11. To acquire by purchase, gift or otherwise 31 as provided in this Act the fee simple or lesser title to all 32 or any part of the real property in any redevelopment area. HB3968 Engrossed -10- LRB9111880LDpk 1 Section 9.12. To renovate or rehabilitate any structure 2 or building acquired, or if any structure or building or the 3 land supporting it has been acquired, to permit the owner to 4 renovate or rebuild the structure or building in accordance 5 with a redevelopment plan. 6 Section 9.13. To install, repair, construct, reconstruct 7 or relocate streets, roads, alleys, sidewalks, utilities and 8 site improvements essential to the preparation of the 9 redevelopment area for use in accordance with a redevelopment 10 plan. 11 Section 9.14. To mortgage or convey real or personal 12 property acquired for use in accordance with a redevelopment 13 plan. 14 Section 9.15. To borrow money, apply for and accept 15 advances, loans, gifts, grants, contributions, services or 16 other financial assistance from the federal government or any 17 agency or instrumentality thereof, the State, county, 18 municipality or other public body or from any source, public 19 or private, for or in aid of any of the purposes of the 20 redevelopment plan, and to secure the payment of any loans or 21 advances by the issuance of revenue bonds and by the pledge 22 of any loan, grant or contribution, or parts thereof, or the 23 contracts therefore, to be received from the federal 24 government or any agency or instrumentality thereof, and to 25 enter into and carry out contracts in connection therewith. 26 Section 9.16. To create parks, playgrounds, recreational 27 community education, water, sewer or drainage facilities, or 28 any other work which it is otherwise empowered to undertake, 29 adjacent to or in connection with housing projects. HB3968 Engrossed -11- LRB9111880LDpk 1 Section 9.17. To dedicate, sell, convey or lease any of 2 its interests in any property, or grant easements, licenses 3 or other rights or privileges therein to a public housing 4 development body or the Federal or State governments. 5 Section 9.18. To exercise all powers available to land 6 clearance commissions under the "Blighted Areas Redevelopment 7 Act of 1947", as now or hereafter amended, and to initiate 8 and implement slum and blighted areas redevelopment projects. 9 However, the Authority shall not exercise eminent domain 10 powers pursuant to the "Blighted Areas Redevelopment Act of 11 1947", and with reference to the exercise of eminent domain 12 authority, this Act shall control. 13 Section 9.19. To develop a comprehensive redevelopment 14 plan for each neighborhood in depressed areas. 15 Section 9.20. To hold public hearings on redevelopment 16 plans. 17 Section 9.21. To fix, alter, charge and collect fees, 18 rentals and other charges for the use of the facilities of 19 or for the services rendered by the Authority, or projects 20 thereof, at rates to be determined by agreement or otherwise, 21 for the purpose of providing for the expenses of the 22 Authority, the construction, improvement, repair, equipping, 23 and furnishing of its facilities and properties, the payment 24 of the principal and interest on its obligations and to 25 fulfill the terms and provisions of any agreements made with 26 the purchasers or holders of any such obligations. Such 27 fees, rentals and other charges shall include charges for 28 interest due bond holders on all outstanding construction and 29 improvement, and engineering and administration costs not 30 reimbursed to the Authority; and shall include charges to HB3968 Engrossed -12- LRB9111880LDpk 1 reimburse completely the Authority beginning in an 2 appropriate year for the principal on such bonds within a 3 period of years specified by the Authority to meet its bond 4 payment schedules. 5 Section 9.22. (a) To borrow money pursuant to a revenue 6 bond ordinance or resolution passed by the Authority within 4 7 years of the effective date of this Act, for the acquisition, 8 construction and improvement of projects in such amounts as 9 necessary for defraying the cost of such projects and to 10 secure the payment of all or any of its revenues, rentals and 11 receipts, and to make such agreements with the purchasers or 12 holders of such bonds or with others in connection with any 13 bonds whether issued or to be issued, as the Authority shall 14 deem advisable and in general, to provide for the security of 15 such bonds and the rights of the holders thereof. 16 (b) However no bonds may be issued by the Authority 17 unless the Authority offers, in writing, to the agencies or 18 municipalities represented by directors on the Authority, 19 excluding the director appointed by the Governor, the first 20 opportunity to issue revenue bonds for the project or 21 combination of projects. If the offer to issue bonds is not 22 accepted in writing, within 6 weeks, by any such agency or 23 municipality, the Authority may issue revenue bonds for the 24 purpose for which the bonding opportunity was offered to the 25 agencies or municipalities. 26 Section 9.23. To provide that any real property sold by 27 the Authority is used in accordance with the final 28 redevelopment plan, and the Authority shall inquire into and 29 satisfy themselves concerning the financial ability of the 30 purchaser to complete the redevelopment in accordance with 31 the redevelopment plan and shall require the purchaser to 32 execute in writing such undertakings as the Authority may HB3968 Engrossed -13- LRB9111880LDpk 1 deem necessary to obligate the purchaser to: 2 (a) Use the land for the purposes designated in the 3 approved plan, 4 (b) Commence and complete the building of the 5 improvements within the periods of time which the Authority 6 fixes as reasonable, and 7 (c) Comply with such other conditions as are necessary 8 to carry out the purposes of the final redevelopment plan. 9 Section 9.24. To sell any property within a 10 redevelopment area in which the Authority holds the fee 11 simple title or any lesser interest, provided that all real 12 property shall be sold for at least its use value, which may 13 be less than its acquisition cost. 14 Section 9.25. Pursuant to appropriations, to direct 15 disbursements from the "Depressed Areas Land Use and 16 Community Development Fund" for the purposes of this Act. 17 Section 10. The Authority may by resolution provide for 18 an initial study and survey to determine if a depressed area 19 contains any commercially, industrially, residentially, 20 recreationally or other blighted areas. 21 (a) In making the survey and study the Authority board 22 shall: 23 (1) Cooperate with and use evidence gathered by any 24 public or private organization relative to the existence 25 or extent of blight in the depressed area; 26 (2) Hold public hearings, conduct investigations, 27 hear testimony and gather evidence relating to blight and 28 its elimination; 29 (3) Create an Advisory Committee of not less than 30 11 persons, to be appointed by the chairman with the 31 approval of the Authority, which committee shall consist HB3968 Engrossed -14- LRB9111880LDpk 1 of representatives from among local merchants, property 2 owners, associations, human relations commissions, labor 3 organizations and other civic groups; and 4 (4) Formulate a proposed redevelopment plan for the 5 East St. Louis blighted area, provided that such plan has 6 received the approval and recommendations of a 2/3 7 majority vote of the members. 8 (b) If as a result of their initial study and survey the 9 Authority determines that one or more commercially, 10 industrially, residentially, recreationally, educationally, 11 or other blighted areas are existing in the depressed areas, 12 the Authority may by resolution set forth the boundaries of 13 each blighted area and the factors that exist in the blighted 14 area that are detrimental to the public health, safety, 15 morals and welfare. 16 In the same resolution the Authority may provide for a 17 public hearing on the designation of an area as a blighted 18 area and may submit proposed redevelopment plans for the 19 blighted area. 20 At least 20 days before the hearing the Authority shall 21 give notice of the hearing by publication at least once in a 22 newspaper of general circulation within the depressed area. 23 (c) At the hearing on the designation of an area as a 24 blighted area, the Authority shall introduce the testimony 25 and evidence that entered into their decision to declare an 26 area a blighted area, and shall enter into the record of the 27 proceedings all proposed redevelopment plans received at or 28 prior to the hearing. All interested persons may appear and 29 shall be given an opportunity to testify for or against any 30 proposed redevelopment plan. The hearing may be continued 31 from time to time at the discretion of the Authority to allow 32 necessary changes in any proposed plan or to hear or receive 33 additional testimony from interested persons. 34 (d) At the conclusion of the hearing on blight the HB3968 Engrossed -15- LRB9111880LDpk 1 Authority shall formulate and publish a final redevelopment 2 plan for the blighted area after approval of a 2/3 majority 3 vote of the members of the Advisory Committee, which plan may 4 incorporate any exhibit, plan, proposal, feature, model or 5 testimony resulting from the hearing. The final redevelopment 6 plan shall be presented to the corporate authorities in the 7 territory covered by the redevelopment plan. The final 8 redevelopment plan shall be made available for inspection by 9 all interested parties. 10 (e) Within 30 days after the publication of a final 11 redevelopment plan, any person aggrieved by the action of the 12 Authority may seek a review of the decision and the 13 redevelopment plan under the "Administrative Review Law". The 14 provisions of that Law and all amendments and modifications 15 thereof and the rules adopted pursuant thereto shall apply to 16 review of the final redevelopment plan. If no action is 17 initiated under the Administrative Review Law, or if the 18 court sustains the Authority and the redevelopment plan as 19 presented, or as amended by the court, the Authority may 20 proceed to carry out the final redevelopment plan. 21 Section 11. The Authority is authorized and empowered to 22 incur indebtedness and issue revenue bonds in compliance with 23 subsection (b) of Section 9.22 for the purpose of raising 24 funds for carrying out the provisions of a final 25 redevelopment plan providing for the eradication and 26 elimination of blight and acquisition, development or 27 redevelopment of blight areas and any other area which may 28 constitute a redevelopment area within the depressed area. 29 The resolution of the Authority authorizing the issuance of 30 revenue bonds shall specify the total amount of the bonds to 31 be issued, the form and denomination, the date or dates of 32 maturity which shall not be later than 20 years after the 33 date of issuance, and the rate of interest, which rate shall HB3968 Engrossed -16- LRB9111880LDpk 1 not exceed the rate permitted in "An Act to authorize public 2 corporations to issue bonds, other evidences of indebtedness 3 and tax anticipation warrants subject to interest rate 4 limitations set forth therein", approved May 26, 1970, as 5 amended. The bonds shall be executed by such officials as may 6 be provided by the bond ordinance. The bonds may be made 7 registerable to principal and may be made callable on any 8 interest payment date at par and accrued interest after 9 notice has been given in the manner provided by the bond 10 ordinance. The bonds shall remain valid even though one or 11 more of the officials executing the bonds cease to hold 12 office before the bonds are delivered. 13 The bonds shall contain a provision that the principal 14 and interest thereon shall be payable exclusively from the 15 proceeds and revenues of any redevelopment plan which is 16 financed in whole or in part with the proceeds of such bonds, 17 together with whatever funds of the Authority from whatever 18 source derived as are necessary to constitute a local 19 matching cash grant-in-aid or contribution for the 20 redevelopment plan within the meaning of any applicable 21 federal or State law. Such bonds may be additionally secured 22 by a pledge of any loan, grant or contribution, or parts 23 thereof, received from the United States of America, or any 24 agency or instrumentality thereof, or any loan, grant or 25 contribution from any other public or private body, 26 instrumentality, corporation or individual, or any duly 27 executed contract for such pledge, loan, grant or 28 contribution. 29 The officials executing the revenue bonds shall not be 30 personally liable on the bonds because of their issuance. 31 The bonds shall not be the debt of any municipality or the 32 State, or any subdivision thereof. The bonds shall not be 33 payable out of any funds of the Authority except those 34 indicated in this Act. HB3968 Engrossed -17- LRB9111880LDpk 1 In connection with the issuance of the revenue bonds 2 authorized by this Act and in order to secure the payment of 3 such bonds, the Authority may recommend to the corporate 4 authority in which the redevelopment plan is proposed subject 5 to the powers and limitations contained in this Act, that 6 such corporate authority convene and agree in the bonds, bond 7 ordinance, or resolution, or any trust agreement executed 8 pursuant thereto, to any necessary condition, power, duty, 9 liability, or procedure for the issuance, payment, 10 redemption, security, marketing, replacement or refinancing 11 of such bonds, and the use, disposition or control of all or 12 any part of the revenues realized from a redevelopment or new 13 community plan. 14 The revenue bonds issued pursuant to a resolution passed 15 by the Authority shall be sold to the highest and best bidder 16 at not less than their par value and accrued interest. The 17 Authority shall, from time to time as bonds are to be sold, 18 advertise for proposals to purchase the bonds. Each such 19 advertisement may be published in such newspapers and 20 journals as the Authority may determine, but must be 21 published at least once in a newspaper having a general 22 circulation in the respective area at least 10 days prior to 23 the date of the opening of the bids. The Authority may 24 reserve the rights to reject any and all bids and readvertise 25 for bids. 26 The bonds may be issued without submitting any 27 proposition to the electorate by referendum or otherwise. 28 Section 12. Before any proposed new construction of a 29 specific project or proposed rehabilitation project is 30 commenced by the Authority a public hearing must be held by 31 the Authority affording interested persons residing in the 32 area an opportunity to be heard. There shall be a notice of 33 the time and place of the hearing published at least once, HB3968 Engrossed -18- LRB9111880LDpk 1 not more than 30 and not less than 15 days before the 2 hearing, in one or more newspapers published in the 3 municipalities located within the area of the project. This 4 notice shall contain the particular site and location to be 5 affected as well as a brief statement of what is proposed in 6 the project. 7 Section 13. Any deed executed by the Authority under 8 this Act may contain such restrictions as may be required by 9 the final redevelopment plan and necessary building and 10 zoning ordinances. All such deeds of conveyance shall be 11 executed in the name of the Authority and the seal of the 12 Authority shall be attached to the deeds. 13 Section 14. The Authority may let contracts for the 14 demolition or removal of buildings and for the removal of 15 any debris. The Authority shall advertise for sealed bids 16 for doing such work. The advertisement shall describe by 17 street number or other means of identification the location 18 of buildings to be demolished or removed and the time and 19 place when sealed bids for the work may be delivered to the 20 Authority. The advertisement shall be published once in a 21 newspaper having a general circulation in the respective area 22 20 days prior to the date for receiving bids. 23 The contract for doing the work shall be let to the 24 lowest responsible bidder, but the Authority may reject any 25 and all bids received and readvertise for bids. Any contract 26 entered into by the Authority under this Section shall 27 contain provisions requiring the contractor to give bond in 28 an amount to be determined by the Authority, and shall 29 require the contractor to furnish insurance of a character 30 and amount to be determined by the Authority protecting the 31 Authority and the municipality, its officers, agents and 32 employees against any claims for personal injuries, including HB3968 Engrossed -19- LRB9111880LDpk 1 death and property damage which may be asserted because of 2 the contract. The Authority may include in any advertisement 3 and in the contract one or more buildings as they in their 4 sole discretion may determine. 5 Section 15. In carrying out the provisions of a final 6 redevelopment plan, the Authority may pave and improve 7 streets in the redevelopment area, construct walks and 8 install or relocate sewers, water pipes and other similar 9 facilities. The Authority shall advertise for sealed bids for 10 doing such work. The advertisement shall describe the nature 11 of the work to be performed and the time when and place where 12 sealed bids for the work may be delivered to the Authority. 13 The advertisement shall be published once in a newspaper 14 having a general circulation in the municipality at least 20 15 days prior to the date for receiving bids. A contract for 16 doing the work shall be let to the lowest responsible bidder, 17 but the Authority may reject any and all bids received and 18 readvertise for bids. The contractor shall enter into bond 19 as a condition for the faithful performance of the contract. 20 The sureties on such bond shall be approved by the Authority. 21 Section 16. When the Authority has acquired title to, 22 and possession of any or all real property in the 23 redevelopment area, they may convey any part of the 24 redevelopment area to which the Authority holds the fee 25 simple title or any lesser interest to any public body or 26 State chartered corporation having jurisdiction over schools, 27 parks, low or moderate housing, or playgrounds in the area. 28 The property so conveyed shall be used for parks, 29 playgrounds, schools, housing for low or moderate income 30 families, and other public purposes as the Authority may 31 determine. The Authority may charge for such conveyance 32 whatever price they and the officials of the public bodies or HB3968 Engrossed -20- LRB9111880LDpk 1 State Chartered Corporations receiving the land may agree 2 upon. The Authority may also grant with or without charge, 3 easements for public utilities, sewerage and other similar 4 facilities. 5 Section 17. For the purposes of this Act, the terms 6 "cost of the construction" of any project includes the 7 following: 8 (a) Obligations incurred for labor, and to contractors, 9 builders and material men, in connection with the 10 construction of any such project or projects, for machinery 11 and equipment and for the restoration of property damaged or 12 destroyed in connection with such construction. 13 (b) The cost of acquiring any property, real, personal 14 or mixed, tangible or intangible, or any interest therein, 15 necessary or desirable for the construction of any such 16 project or projects. 17 (c) The principal and interest requirements upon any 18 such bonds for the period during which, and to the extent, 19 the rentals received by the Authority from such project or 20 projects shall be insufficient for the payment thereof, the 21 fees and expenses of the fiscal agent of the Authority in 22 respect of such bonds during any such period, and the 23 reasonable fees and expenses of any paying agents for such 24 bonds during such period. 25 (d) The taxes or other municipal or governmental 26 charges, if any, in connection with any such project or 27 projects during construction. 28 (e) The cost and expenses of preliminary investigations 29 of the feasibility or practicality of constructing any such 30 project or projects and fees and expenses of engineers for 31 making preliminary studies, surveys, repairs, estimates, and 32 for preparing plans and specifications and supervising 33 construction as well as for the performance of all other HB3968 Engrossed -21- LRB9111880LDpk 1 duties of engineers in relation to such construction or the 2 issuance of bonds therefor. 3 (f) Expenses of administration properly chargeable to 4 any such project or projects during construction, legal 5 expenses and fees, financing charges, costs of audits and of 6 preparing and issuing such bonds, and all other items of 7 expense not elsewhere specified, ancient to the construction 8 of any such projects, the financing thereof and the 9 acquisition of lands, property rights, rights of way, 10 franchises, easements and interest therefor, including 11 abstracts of title, title insurance, title opinions, costs of 12 surveys, reports and other expenses in connection with such 13 acquisition. 14 Section 18. The Authority may pledge, hypothecate or 15 otherwise encumber all or any of the revenues or receipts of 16 the Authority as security for all or any of the obligations 17 of the Authority. 18 Section 19. The Authority may construct, acquire by gift 19 or purchase, reconstruct, improve, better or extend any 20 project within or without the municipality or partially 21 within or without the municipality, but in no event farther 22 than 3 miles from the territorial boundaries of such 23 municipality, and acquire by gift or purchase lands or rights 24 in land in connection therewith. 25 Section 20. The Authority shall have no power at any 26 time or in any manner to pledge the credit or taxing power of 27 the State of Illinois, or a municipality or corporate 28 authority or any other unit of local government nor shall any 29 of its obligations be considered obligations of the State of 30 Illinois, or any other unit of government. HB3968 Engrossed -22- LRB9111880LDpk 1 Section 21. Within 60 days after the end of each fiscal 2 year, the Authority shall cause to be prepared by a certified 3 public accountant a complete and detailed report and 4 financial statement of the operation and assets and 5 liabilities of the Authority. A sufficient number of copies 6 of such report shall be prepared for distribution to persons 7 interested, upon request, and a copy thereof shall be filed 8 with the Governor and the General Assembly. 9 Section 22. The Authority may investigate conditions in 10 any project in which it has an interest. In the conduct of 11 such investigations the Authority may hold public hearings on 12 its own motion, and shall do so on complaint or petition of 13 any person. Each member of the Authority shall have power to 14 administer oaths, and the secretary, by order of the 15 Authority, shall issue subpoenas to secure the attendance and 16 testimony of witnesses, and the production of books and 17 papers, before the Authority or before any member thereof or 18 any officer or committee appointed by the Authority. 19 In the conduct of any investigation the Authority shall, 20 at its expense, provide a stenographer to take down all 21 testimony and shall preserve a record of such proceedings. 22 The notice of hearing, complaint, and all other documents in 23 the nature of pleading and written motions and orders of 24 decision of the Authority shall constitute the record of such 25 proceedings. 26 The Authority is not required to testify and record or 27 file any answer, or otherwise respond in any proceedings for 28 judicial review of an administrative decision unless the 29 party asking for review deposits with the clerk of the court 30 the sum of $1 per page of records representing the cost of 31 such certification. Failure to make such deposit is ground 32 for dismissal of action. HB3968 Engrossed -23- LRB9111880LDpk 1 Section 23. The Authority has the power to pass all 2 resolutions and make all rules and regulations proper and 3 necessary to give effect to the power granted the Authority 4 under this Act. 5 Section 24. All final administrative decisions of the 6 Authority shall be subject to judicial review pursuant to the 7 provisions of the Administrative Review Law, and all 8 amendments and modifications thereof and the rules adopted 9 pursuant thereto. The term "administrative decision" is 10 defined as in Section 3-101 of the Administrative Review Law. 11 Section 25. The powers contained in this Act shall not 12 be exercised by the Authority: 13 (1) within the boundaries of any municipality or within 14 the boundaries of any territory over which a municipality has 15 jurisdiction unless the exercise of those powers therein has 16 been approved by the mayor or village president of the 17 municipality; or 18 (2) within the boundaries of any unincorporated area of 19 a township unless the exercise of those powers therein has 20 been approved by the supervisor of the township. 21 Section 27. Legislative Findings. The General Assembly 22 finds that the financial difficulties, inadequate tax base, 23 lack of vital services, lack of economic development and 24 various other problems in the East St. Louis area are unique 25 in Illinois, and that it is desirable to specifically address 26 those problems by authorizing the designation of a 27 demonstration enterprise zone in the East St. Louis area. 28 Section 28. Applicability. The provisions of Sections 29 27 through 35 apply only to a demonstration enterprise zone, 30 and such provisions do not apply to any other enterprise HB3968 Engrossed -24- LRB9111880LDpk 1 zone. All provisions of this Act apply to a demonstration 2 enterprise zone, except as follows: 3 (1) if the provisions of Sections 27 through 35 conflict 4 with other provisions of this Act, the provisions of Sections 5 27 through 35 shall control; and 6 (2) with respect to the demonstration enterprise zone, 7 the Authority shall exercise and perform all powers, duties, 8 and functions under this Act that would be performed by the 9 Department of Commerce and Community Affairs with respect to 10 other enterprise zones. 11 Section 29. Definitions. As used in Sections 27 through 12 35: 13 "Zone" or "enterprise zone" means a demonstration 14 enterprise zone. 15 "Area" means the city of East St. Louis area. 16 "Zone development corporation" means a nonprofit 17 corporation or association created by the Authority to 18 formulate and propose a preliminary zone development plan 19 under Section 32 of this Act. 20 "Zone development plan" means a plan adopted by the 21 Authority for the development of an enterprise zone, and for 22 the direction and coordination of activities of the area, 23 zone businesses, and community organizations within the 24 enterprise zone toward the economic betterment of the 25 residents of the zone and the area. 26 "Zone neighborhood association" means a corporation or 27 association of persons who either are residents of, or have 28 their principal place of employment in, the area; that is 29 organized under the provisions of the General Not For Profit 30 Corporation Act of 1986 and that has for its principal 31 purpose the encouragement and support of community activities 32 within, or on behalf of, the zone so as to (i) stimulate 33 economic activity, (ii) increase or preserve residential HB3968 Engrossed -25- LRB9111880LDpk 1 amenities, or (iii) otherwise encourage community cooperation 2 in achieving the goals of the zone development plan. 3 "Enterprise Zone Assistance Fund" or "Fund" means the 4 Fund created by Section 35 of this Act. 5 "Authority" means the East St. Louis Area Development 6 Authority. 7 Section 30. Designation of Demonstration Enterprise 8 Zone. The Authority may by resolution designate a 9 demonstration enterprise zone in accordance with Section 32 10 of this Act. If the approval of the demonstration enterprise 11 zone requires the alteration or decertification of an 12 existing enterprise zone, the Authority shall take that 13 action upon the adoption of such a proposal. 14 Section 31. Zone development corporation. The Authority 15 shall, by resolution, create a nonprofit corporation under 16 the provisions of the General Not For Profit Corporation Act 17 of 1986 to act as the zone development corporation for the 18 Authority. The zone development corporation so created shall 19 include on its board of directors representatives of the 20 governments of the area, members of the business community of 21 the area, members of the labor community in the area, and 22 representatives of community organizations in the area, and 23 the total membership of the board of directors shall be 24 broadly representative of businesses and communities within 25 the area. 26 Section 32. Preliminary zone development plan. The 27 Authority shall cause a preliminary zone development plan to 28 be formulated, with the assistance of any officers and 29 agencies of the area as the governing body may see fit. The 30 preliminary zone development plan shall set forth the 31 boundaries of the proposed enterprise zone, findings of fact HB3968 Engrossed -26- LRB9111880LDpk 1 concerning the economic and social conditions existing in the 2 property proposed for an enterprise zone, and the Authority's 3 policy and intentions for addressing these conditions, and 4 may include proposals respecting: 5 (1) Utilizing the powers conferred on the Authority by 6 law for the purpose of stimulating investment in and economic 7 development of the proposed zone in specific proposals that 8 promote industrial retention and development as a foundation 9 for general community development, that promotes providing 10 technical and financial assistance, promoting vocational and 11 entrepreneurial training, upgrading production techniques and 12 use of modern technology in local companies, promoting local 13 and cooperative ownership of companies, increasing community 14 participation in development strategies, and launching 15 specific initiatives to save existing companies, and to start 16 new companies in the proposed zone; 17 (2) Utilizing State assistance through the provisions of 18 this Act relating to exemptions from, and credits against, 19 State taxes; 20 (3) Securing the involvement in, and commitment to, zone 21 economic development by private entities, including zone 22 neighborhood associations, voluntary community organizations 23 supported by residents and businesses in the zone; 24 (4) Utilizing the powers conferred by law to revise 25 municipal planning and zoning ordinances and other land use 26 regulations as they pertain to the zone, in order to enhance 27 the attraction of the zone to prospective developers; 28 (5) Increasing the availability and efficiency of 29 support services, public and private, generally used by and 30 necessary to the efficient functioning of commercial and 31 industrial facilities in the area, and the extent to which 32 the increase or improvements are to be provided and financed 33 by the city governments in the area or by other entities; and 34 (6) Utilizing the powers of the zone development HB3968 Engrossed -27- LRB9111880LDpk 1 corporation created by the Authority to provide short term 2 contract financing, equipment installment loans, and 3 equity-match financing for selected small businesses located 4 in the area. 5 Section 33. Proposals for funding. The Authority shall 6 receive and evaluate proposals from the demonstration 7 enterprise zone for funding of projects and increased 8 eligible municipal services from the Enterprise Zone 9 Assistance Fund. 10 Section 34. Certification by Authority. The Authority 11 shall certify annually to the State Treasurer amounts to be 12 paid from the Fund to support approved projects and increased 13 eligible municipal services in the demonstration enterprise 14 zone. 15 Section 35. Enterprise Zone Assistance Fund. 16 (a) There is created an Enterprise Zone Assistance Fund 17 to be held by the State Treasurer, which shall be the 18 repository for all moneys appropriated annually to the Fund 19 and moneys available from other sources. All moneys deposited 20 in the Fund shall be held and disbursed in the amounts 21 necessary to fulfill the purposes of this Section and shall 22 be subject to the requirements hereinafter prescribed. The 23 State Treasurer may invest and reinvest any moneys in the 24 Fund, or any portion thereof, in legal obligations of the 25 United States or of the State or of any political subdivision 26 thereof. Any income from, interest on, or increment to 27 moneys so invested or reinvested shall be included in the 28 Fund. 29 (b) The State Treasurer shall promulgate the rules 30 necessary to govern the administration of the Fund for the 31 purposes of this Section. HB3968 Engrossed -28- LRB9111880LDpk 1 (c) The Fund shall be used for the purpose of assisting 2 the Authority in undertaking public improvements and in 3 upgrading eligible municipal services in the enterprise 4 zones. 5 (d) The Authority and the zone development corporation 6 created by the Authority for that enterprise zone may, by 7 resolution jointly adopted after public hearing, propose to 8 undertake a project for the public improvement of the 9 enterprise zone or to increase eligible municipal services in 10 the enterprise zone and to fund that project or increase in 11 eligible municipal services from moneys deposited in the 12 Fund. The proposal so adopted shall set forth a plan for the 13 project or for the increase in eligible municipal services 14 and shall include: 15 (1) A description of the proposed project or of the 16 municipal services to be increased; 17 (2) An estimate of the total project costs, or of 18 the total costs of increasing the municipal services, and 19 an estimate of the amounts of funding necessary annually 20 from the Fund; 21 (3) A statement of any other revenue sources to be 22 used to finance the project or to fund the increase in 23 eligible municipal services; and 24 (4) A statement of the manner in which the proposed 25 project or increase in municipal services furthers the 26 Authority's policy and intentions for addressing the 27 economic and social conditions existing in the area of 28 the enterprise zone. 29 As used in this Section, "project" means the purchasing, 30 leasing, condemning, or otherwise acquiring of land or other 31 property, or an interest therein, in the enterprise zone or 32 as necessary for a right-of-way or other easement to or from 33 the enterprise zone; the relocating and moving of persons 34 displaced by the acquisition of land or property; the HB3968 Engrossed -29- LRB9111880LDpk 1 rehabilitation and redevelopment of land or property, 2 including demolition, clearance, removal, relocation, 3 renovation, alteration, construction, reconstruction, 4 installation or repair of land or a building, street, 5 highway, alley, utility, service, or other structure or 6 improvement; the acquisition, construction, reconstruction, 7 rehabilitation, or installation of public facilities and 8 improvements, except buildings and facilities for the general 9 conduct of government and schools; and the costs associated 10 therewith including the costs of an administrative appraisal, 11 economic and environmental analyses or engineering, planning, 12 design, architectural, surveying or other professional 13 services necessary to effectuate the project. 14 As used in this Section, "eligible municipal services" 15 means the hiring of additional policemen or firemen assigned 16 duties in the enterprise zone, or the purchasing or leasing 17 of additional police or fire vehicles, equipment, or 18 apparatus to be used for the provision of augmented or 19 upgraded public safety services in the enterprise zone and 20 its immediate vicinity. 21 (e) Upon adoption by the Authority and by the zone 22 development corporation, the proposal shall be sent to the 23 Authority for its evaluation and approval. The Authority and 24 the zone development corporation shall approve the proposal 25 if: 26 (1) In the case of a project, the proposed project 27 furthers the policy and intentions of the zone 28 development plan and the estimated annual payments for 29 the project from the Fund are not likely to result in a 30 deficit in the Fund; 31 (2) In the case of an increase in eligible 32 municipal services, the proposal furthers the policy and 33 intentions of the zone development plan, the Authority 34 has furnished satisfactory assurances that the additional HB3968 Engrossed -30- LRB9111880LDpk 1 policemen or firemen to be hired, or the additional 2 vehicles, equipment, or apparatus to be purchased or 3 leased, shall be used to augment or upgrade public safety 4 in the enterprise zone and shall not be used in other 5 areas of the area; the Authority shall annually 6 appropriate for the increased eligible municipal services 7 an amount equal to 20% of the amount of annual payments 8 for the eligible municipal services from the Fund; and 9 the estimated annual payments for the eligible municipal 10 services from the Fund are not likely to result in a 11 deficit in the Fund. 12 (f) The Authority shall annually certify to the State 13 Treasurer the amount to be paid in that year from the Fund 14 with respect to each project or increase in eligible 15 municipal services approved. The Authority may at any time 16 revoke its approval of a project or an increase in eligible 17 municipal services if it finds that the annual payments made 18 from the Fund are not being used as required by this Section. 19 (g) Upon certification by the Authority of the annual 20 amount to be paid to the Authority with respect to any 21 project or increase in eligible municipal services, the State 22 Treasurer shall pay in each year to the Authority from the 23 amounts deposited in the Fund the amount so certified. 24 Section 200. The State Finance Act is amended by adding 25 Section 5.541 as follows: 26 (30 ILCS 105/5.541 new) 27 Sec. 5.541. The Enterprise Zone Assistance Fund. 28 Section 999. Effective date. This Act takes effect upon 29 becoming law.