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91_SB0053ccr001
LRB9101827PTpkccr4
1 91ST GENERAL ASSEMBLY
2 CONFERENCE COMMITTEE REPORT
3 ON SENATE BILL 53
4 -------------------------------------------------------------
5 -------------------------------------------------------------
6 To the President of the Senate and the Speaker of the
7 House of Representatives:
8 We, the conference committee appointed to consider the
9 differences between the houses in relation to House
10 Amendments Nos. 1 and 2 to Senate Bill 53, recommend the
11 following:
12 (1) that the House recede from House Amendments Nos. 1
13 and 2; and
14 (2) that Senate Bill 53 be amended on page 1, by
15 replacing lines 1 and 2 with the following:
16 "AN ACT relating to tax increment financing."; and
17 on page 1, line 6, by replacing "11-74.4-3" with "11-74.4-3,
18 11-74.4-4,"; and
19 on page 19, below line 32, by inserting the following:
20 "(65 ILCS 5/11-74.4-4) (from Ch. 24, par. 11-74.4-4)
21 Sec. 11-74.4-4. Municipal powers and duties;
22 redevelopment project areas. A municipality may:
23 (a) By ordinance introduced in the governing body of the
24 municipality within 14 to 90 days from the completion of the
25 hearing specified in Section 11-74.4-5 approve redevelopment
26 plans and redevelopment projects, and designate redevelopment
27 project areas pursuant to notice and hearing required by this
28 Act. No redevelopment project area shall be designated
29 unless a plan and project are approved prior to the
30 designation of such area and such area shall include only
31 those contiguous parcels of real property and improvements
32 thereon substantially benefited by the proposed redevelopment
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1 project improvements.
2 (b) Make and enter into all contracts necessary or
3 incidental to the implementation and furtherance of its
4 redevelopment plan and project.
5 (c) Within a redevelopment project area, acquire by
6 purchase, donation, lease or eminent domain; own, convey,
7 lease, mortgage or dispose of land and other property, real
8 or personal, or rights or interests therein, and grant or
9 acquire licenses, easements and options with respect thereto,
10 all in the manner and at such price the municipality
11 determines is reasonably necessary to achieve the objectives
12 of the redevelopment plan and project. No conveyance, lease,
13 mortgage, disposition of land or other property, or agreement
14 relating to the development of the property shall be made
15 except upon the adoption of an ordinance by the corporate
16 authorities of the municipality. Furthermore, no conveyance,
17 lease, mortgage, or other disposition of land or agreement
18 relating to the development of property shall be made without
19 making public disclosure of the terms of the disposition and
20 all bids and proposals made in response to the municipality's
21 request. The procedures for obtaining such bids and
22 proposals shall provide reasonable opportunity for any person
23 to submit alternative proposals or bids.
24 (d) Within a redevelopment project area, clear any area
25 by demolition or removal of any existing buildings and
26 structures.
27 (e) Within a redevelopment project area, renovate or
28 rehabilitate or construct any structure or building.
29 (f) Install, repair, construct, reconstruct or relocate
30 streets, utilities and site improvements essential to the
31 preparation of the redevelopment area for use in accordance
32 with a redevelopment plan.
33 (g) Within a redevelopment project area, fix, charge and
34 collect fees, rents and charges for the use of any building
35 or property owned or leased by it or any part thereof, or
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1 facility therein.
2 (h) Accept grants, guarantees and donations of property,
3 labor, or other things of value from a public or private
4 source for use within a project redevelopment area.
5 (i) Acquire and construct public facilities within a
6 redevelopment project area.
7 (j) Incur project redevelopment costs.
8 (k) Create a commission of not less than 5 or more than
9 15 persons to be appointed by the mayor or president of the
10 municipality with the consent of the majority of the
11 governing board of the municipality. Members of a commission
12 appointed after the effective date of this amendatory Act of
13 1987 shall be appointed for initial terms of 1, 2, 3, 4 and 5
14 years, respectively, in such numbers as to provide that the
15 terms of not more than 1/3 of all such members shall expire
16 in any one year. Their successors shall be appointed for a
17 term of 5 years. The commission, subject to approval of the
18 corporate authorities may exercise the powers enumerated in
19 this Section. The commission shall also have the power to
20 hold the public hearings required by this division and make
21 recommendations to the corporate authorities concerning the
22 adoption of redevelopment plans, redevelopment projects and
23 designation of redevelopment project areas.
24 (l) Make payment in lieu of taxes or a portion thereof
25 to taxing districts. If payments in lieu of taxes or a
26 portion thereof are made to taxing districts, those payments
27 shall be made to all districts within a project redevelopment
28 area on a basis which is proportional to the current
29 collections of revenue which each taxing district receives
30 from real property in the redevelopment project area.
31 (m) Exercise any and all other powers necessary to
32 effectuate the purposes of this Act.
33 (n) If any member of the corporate authority, a member
34 of a commission established pursuant to Section 11-74.4-4(k)
35 of this Act, or an employee or consultant of the municipality
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1 involved in the planning and preparation of a redevelopment
2 plan, or project for a redevelopment project area or proposed
3 redevelopment project area, as defined in Sections
4 11-74.4-3(i) through (k) of this Act, owns or controls an
5 interest, direct or indirect, in any property included in any
6 redevelopment area, or proposed redevelopment area, he or she
7 shall disclose the same in writing to the clerk of the
8 municipality, and shall also so disclose the dates and terms
9 and conditions of any disposition of any such interest, which
10 disclosures shall be acknowledged by the corporate
11 authorities and entered upon the minute books of the
12 corporate authorities. If an individual holds such an
13 interest then that individual shall refrain from any further
14 official involvement in regard to such redevelopment plan,
15 project or area, from voting on any matter pertaining to such
16 redevelopment plan, project or area, or communicating with
17 other members concerning corporate authorities, commission or
18 employees concerning any matter pertaining to said
19 redevelopment plan, project or area. Furthermore, no such
20 member or employee shall acquire of any interest direct, or
21 indirect, in any property in a redevelopment area or proposed
22 redevelopment area after either (a) such individual obtains
23 knowledge of such plan, project or area or (b) first public
24 notice of such plan, project or area pursuant to Section
25 11-74.4-6 of this Division, whichever occurs first. For the
26 purposes of this subsection, a month-to-month leasehold
27 interest in a single parcel of property by a member of the
28 corporate authority shall not be deemed to constitute an
29 interest in any property included in any redevelopment area
30 or proposed redevelopment area, but the member must disclose
31 the interest to the municipal clerk under the provisions of
32 this subsection.
33 (o) Create a Tax Increment Economic Development Advisory
34 Committee to be appointed by the Mayor or President of the
35 municipality with the consent of the majority of the
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1 governing board of the municipality, the members of which
2 Committee shall be appointed for initial terms of 1, 2, 3, 4
3 and 5 years respectively, in such numbers as to provide that
4 the terms of not more than 1/3 of all such members shall
5 expire in any one year. Their successors shall be appointed
6 for a term of 5 years. The Committee shall have none of the
7 powers enumerated in this Section. The Committee shall serve
8 in an advisory capacity only. The Committee may advise the
9 governing Board of the municipality and other municipal
10 officials regarding development issues and opportunities
11 within the redevelopment project area or the area within the
12 State Sales Tax Boundary. The Committee may also promote and
13 publicize development opportunities in the redevelopment
14 project area or the area within the State Sales Tax Boundary.
15 (p) Municipalities may jointly undertake and perform
16 redevelopment plans and projects and utilize the provisions
17 of the Act wherever they have contiguous redevelopment
18 project areas or they determine to adopt tax increment
19 financing with respect to a redevelopment project area which
20 includes contiguous real property within the boundaries of
21 the municipalities, and in doing so, they may, by agreement
22 between municipalities, issue obligations, separately or
23 jointly, and expend revenues received under the Act for
24 eligible expenses anywhere within contiguous redevelopment
25 project areas or as otherwise permitted in the Act.
26 (q) Utilize revenues, other than State sales tax
27 increment revenues, received under this Act from one
28 redevelopment project area for eligible costs in another
29 redevelopment project area that is either contiguous to, or
30 is separated only by a public right of way from, the
31 redevelopment project area from which the revenues are
32 received. Utilize tax increment revenues for eligible costs
33 that are received from a redevelopment project area created
34 under the Industrial Jobs Recovery Law that is either
35 contiguous to, or is separated only by a public right of way
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1 from, the redevelopment project area created under this Act
2 which initially receives these revenues. Utilize revenues,
3 other than State sales tax increment revenues, by
4 transferring or loaning such revenues to a redevelopment
5 project area created under the Industrial Jobs Recovery Law
6 that is either contiguous to, or separated only by a public
7 right of way from the redevelopment project area that
8 initially produced and received those revenues.
9 (r) If no redevelopment project has been initiated in a
10 redevelopment project area within 7 years after the area was
11 designated by ordinance under subsection (a), the
12 municipality shall adopt an ordinance repealing the area's
13 designation as a redevelopment project area; provided,
14 however, that if an area received its designation more than 3
15 years before the effective date of this amendatory Act of
16 1994 and no redevelopment project has been initiated within 4
17 years after the effective date of this amendatory Act of
18 1994, the municipality shall adopt an ordinance repealing its
19 designation as a redevelopment project area. Initiation of a
20 redevelopment project shall be evidenced by either a signed
21 redevelopment agreement or expenditures on eligible
22 redevelopment project costs associated with a redevelopment
23 project.
24 (Source: P.A. 90-258, eff. 7-30-97.)"; and
25 on page 25, below line 6, by inserting the following:
26 "Section 10. The Economic Development Project Area Tax
27 Increment Allocation Act of 1995 is amended by changing
28 Sections 5 and 10 as follows:
29 (65 ILCS 110/5)
30 Sec. 5. Legislative Declaration.
31 (a) The General Assembly finds, determines, and declares
32 the following:
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1 (1) Actions taken by the Secretary of Defense to
2 close military installations under Title II of the
3 Defense Authorization Amendments and Base Closure and
4 Realignment Act (Public Law 100-526; 10 U.S.C. 2687
5 note), the Defense Base Closure and Realignment Act of
6 1990 (part A of Title XXIX of Public Law 101-510; 10
7 U.S.C. 2687 note), or Section 2687 of Title 10 of the
8 United States Code (10 U.S.C. 2687), and actions taken by
9 the Secretary of the Army to transfer the military
10 installation, described in subsection (b) of Section 15
11 of the Joliet Arsenal Development Authority Act, pursuant
12 to the Illinois Land Conservation Act (Title XXIX of
13 Public Law 104-106; 16 U.S.C. 1609), as supplemented and
14 amended, have an adverse socioeconomic impact upon the
15 State residents due to the loss of civilian job
16 opportunities, the transfer of permanently stationed
17 military personnel, the decline in population, the
18 vacancy of existing buildings, structures, residential
19 housing units and other facilities, the burden of
20 assuming and maintaining existing utility systems, and
21 the erosion of the State's economic base.
22 (2) The redevelopment and reuse by the public and
23 private sectors of any military installation closed by
24 the Secretary of Defense and converted to civilian use is
25 impaired due to little or no platting of any of the land,
26 deleterious land use and layout, lack of community
27 planning, depreciation of physical maintenance, presence
28 of structures below minimum code standards, excessive
29 vacancies, lack of adequate utility services and need to
30 improve transportation facilities.
31 (3) The closing of military installations within
32 the State is a serious menace to the health, safety,
33 morals, and general welfare of the people of the entire
34 State.
35 (4) Protection against the economic burdens
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1 associated with the closing of military installations,
2 the consequent spread of economic stagnation, the
3 impairments to redevelopment and reuse, and the resulting
4 harm to the tax base of the State can best be provided by
5 promoting, attracting and stimulating commerce, industry,
6 manufacturing and other public and private sector
7 investment within the State.
8 (5) The continual encouragement, redevelopment,
9 reuse, growth, and expansion of commercial businesses,
10 industrial and manufacturing facilities and other public
11 and private investment on closed military installations
12 within the State requires a cooperative and continuous
13 partnership between government and the private sector.
14 (6) The State has a responsibility to create a
15 favorable climate for new and improved job opportunities
16 for its citizens and to increase the tax base of the
17 State and its political subdivisions by encouraging the
18 redevelopment and reuse by the public and private sectors
19 of new commercial businesses, industrial and
20 manufacturing facilities, and other civilian uses with
21 respect to the vacant buildings, structures, residential
22 housing units, and other facilities on closed military
23 installations within the State.
24 (7) The lack of redevelopment and reuse of closed
25 military installations within the State has persisted,
26 despite efforts of State and local authorities and
27 private organizations to attract new commercial
28 businesses, industrial and manufacturing facilities and
29 other public and private sector investment for civilian
30 use to closed military installations within the State.
31 (8) The economic burdens associated with the
32 closing of military installations within the State may
33 continue and worsen if the State and its political
34 subdivisions are not able to provide additional
35 incentives to commercial businesses, industrial and
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1 manufacturing facilities, and other public and private
2 investment for civilian use to locate on closed military
3 installations within the State.
4 (9) The provision of additional incentives by the
5 State and its political subdivisions is intended to
6 relieve conditions of unemployment, create new job
7 opportunities, increase industry and commerce, increase
8 the tax base of the State and its political subdivisions,
9 and alleviate vacancies and conditions leading to
10 deterioration and blight on closed military installations
11 within the State, thereby creating job opportunities and
12 eradicating deteriorating and blighting conditions for
13 the residents of the State and reducing the evils
14 attendant upon unemployment and blight.
15 (b) It is hereby declared to be the policy of the State,
16 in the interest of promoting the health, safety, morals, and
17 general welfare of all the people of the State, to provide
18 incentives that will create new job opportunities and
19 eradicate potentially blighted conditions on closed military
20 installations within the State, and it is further declared
21 that the relief of conditions of unemployment, the creation
22 of new job opportunities, the increase of industry and
23 commerce within the State, the alleviation of vacancies and
24 conditions leading to deterioration and blight, the reduction
25 of the evils of unemployment, and the increase of the tax
26 base of the State and its political subdivisions are public
27 purposes and for the public safety, benefit, and welfare of
28 the residents of this State.
29 (Source: P.A. 89-176, eff. 1-1-96; 90-655, eff. 7-30-98.)
30 (65 ILCS 110/10)
31 Sec. 10. Definitions. In this Act, words or terms have
32 the following meanings:
33 (a) "Closed military installation" means a former base,
34 camp, post, station, yard, center, homeport facility for any
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1 ship, or other activity under the jurisdiction of the United
2 States Department of the Defense which is not less in the
3 aggregate than 500 acres and which is closed or in the
4 process of being closed by the Secretary of Defense under and
5 pursuant to Title II of the Defense Base Closure and
6 Realignment Act (Public Law 100-526; 10 U.S.C. 2687 note),
7 The Defense Base Closure and Realignment Act of 1990 (part A
8 of title XXIX of Public Law 101-510; 10 U.S.C. 2687 note), or
9