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91_SB0053eng SB53 Engrossed LRB9101827PTpk 1 AN ACT to amend the Illinois Municipal Code by changing 2 Sections 11-74.4-3 and 11-74.4-7. 3 Be it enacted by the People of the State of Illinois, 4 represented in the General Assembly: 5 Section 5. The Illinois Municipal Code is amended by 6 changing Sections 11-74.4-3 and 11-74.4-7 as follows: 7 (65 ILCS 5/11-74.4-3) (from Ch. 24, par. 11-74.4-3) 8 Sec. 11-74.4-3. Definitions. The following terms, 9 wherever used or referred to in this Division 74.4 shall have 10 the following respective meanings, unless in any case a 11 different meaning clearly appears from the context. 12 (a) "Blighted area" means any improved or vacant area 13 within the boundaries of a redevelopment project area located 14 within the territorial limits of the municipality where, if 15 improved, industrial, commercial and residential buildings or 16 improvements, because of a combination of 5 or more of the 17 following factors: age; dilapidation; obsolescence; 18 deterioration; illegal use of individual structures; presence 19 of structures below minimum code standards; excessive 20 vacancies; overcrowding of structures and community 21 facilities; lack of ventilation, light or sanitary 22 facilities; inadequate utilities; excessive land coverage; 23 deleterious land use or layout; depreciation of physical 24 maintenance; lack of community planning, is detrimental to 25 the public safety, health, morals or welfare, or if vacant, 26 the sound growth of the taxing districts is impaired by, (1) 27 a combination of 2 or more of the following factors: obsolete 28 platting of the vacant land; diversity of ownership of such 29 land; tax and special assessment delinquencies on such land; 30 flooding on all or part of such vacant land; deterioration of 31 structures or site improvements in neighboring areas adjacent SB53 Engrossed -2- LRB9101827PTpk 1 to the vacant land, or (2) the area immediately prior to 2 becoming vacant qualified as a blighted improved area, or (3) 3 the area consists of an unused quarry or unused quarries, or 4 (4) the area consists of unused railyards, rail tracks or 5 railroad rights-of-way, or (5) the area, prior to its 6 designation, is subject to chronic flooding which adversely 7 impacts on real property in the area and such flooding is 8 substantially caused by one or more improvements in or in 9 proximity to the area which improvements have been in 10 existence for at least 5 years, or (6) the area consists of 11 an unused disposal site, containing earth, stone, building 12 debris or similar material, which were removed from 13 construction, demolition, excavation or dredge sites, or (7) 14 the area is not less than 50 nor more than 100 acres and 75% 15 of which is vacant, notwithstanding the fact that such area 16 has been used for commercial agricultural purposes within 5 17 years prior to the designation of the redevelopment project 18 area, and which area meets at least one of the factors 19 itemized in provision (1) of this subsection (a), and the 20 area has been designated as a town or village center by 21 ordinance or comprehensive plan adopted prior to January 1, 22 1982, and the area has not been developed for that designated 23 purpose. 24 (b) "Conservation area" means any improved area within 25 the boundaries of a redevelopment project area located within 26 the territorial limits of the municipality in which 50% or 27 more of the structures in the area have an age of 35 years or 28 more. Such an area is not yet a blighted area but because 29 of a combination of 3 or more of the following factors: 30 dilapidation; obsolescence; deterioration; illegal use of 31 individual structures; presence of structures below minimum 32 code standards; abandonment; excessive vacancies; 33 overcrowding of structures and community facilities; lack of 34 ventilation, light or sanitary facilities; inadequate SB53 Engrossed -3- LRB9101827PTpk 1 utilities; excessive land coverage; deleterious land use or 2 layout; depreciation of physical maintenance; lack of 3 community planning, is detrimental to the public safety, 4 health, morals or welfare and such an area may become a 5 blighted area. 6 (c) "Industrial park" means an area in a blighted or 7 conservation area suitable for use by any manufacturing, 8 industrial, research or transportation enterprise, of 9 facilities to include but not be limited to factories, mills, 10 processing plants, assembly plants, packing plants, 11 fabricating plants, industrial distribution centers, 12 warehouses, repair overhaul or service facilities, freight 13 terminals, research facilities, test facilities or railroad 14 facilities. 15 (d) "Industrial park conservation area" means an area 16 within the boundaries of a redevelopment project area located 17 within the territorial limits of a municipality that is a 18 labor surplus municipality or within 1 1/2 miles of the 19 territorial limits of a municipality that is a labor surplus 20 municipality if the area is annexed to the municipality; 21 which area is zoned as industrial no later than at the time 22 the municipality by ordinance designates the redevelopment 23 project area, and which area includes both vacant land 24 suitable for use as an industrial park and a blighted area or 25 conservation area contiguous to such vacant land. 26 (e) "Labor surplus municipality" means a municipality in 27 which, at any time during the 6 months before the 28 municipality by ordinance designates an industrial park 29 conservation area, the unemployment rate was over 6% and was 30 also 100% or more of the national average unemployment rate 31 for that same time as published in the United States 32 Department of Labor Bureau of Labor Statistics publication 33 entitled "The Employment Situation" or its successor 34 publication. For the purpose of this subsection, if SB53 Engrossed -4- LRB9101827PTpk 1 unemployment rate statistics for the municipality are not 2 available, the unemployment rate in the municipality shall be 3 deemed to be the same as the unemployment rate in the 4 principal county in which the municipality is located. 5 (f) "Municipality" shall mean a city, village or 6 incorporated town. 7 (g) "Initial Sales Tax Amounts" means the amount of 8 taxes paid under the Retailers' Occupation Tax Act, Use Tax 9 Act, Service Use Tax Act, the Service Occupation Tax Act, the 10 Municipal Retailers' Occupation Tax Act, and the Municipal 11 Service Occupation Tax Act by retailers and servicemen on 12 transactions at places located in a State Sales Tax Boundary 13 during the calendar year 1985. 14 (g-1) "Revised Initial Sales Tax Amounts" means the 15 amount of taxes paid under the Retailers' Occupation Tax Act, 16 Use Tax Act, Service Use Tax Act, the Service Occupation Tax 17 Act, the Municipal Retailers' Occupation Tax Act, and the 18 Municipal Service Occupation Tax Act by retailers and 19 servicemen on transactions at places located within the State 20 Sales Tax Boundary revised pursuant to Section 11-74.4-8a(9) 21 of this Act. 22 (h) "Municipal Sales Tax Increment" means an amount 23 equal to the increase in the aggregate amount of taxes paid 24 to a municipality from the Local Government Tax Fund arising 25 from sales by retailers and servicemen within the 26 redevelopment project area or State Sales Tax Boundary, as 27 the case may be, for as long as the redevelopment project 28 area or State Sales Tax Boundary, as the case may be, exist 29 over and above the aggregate amount of taxes as certified by 30 the Illinois Department of Revenue and paid under the 31 Municipal Retailers' Occupation Tax Act and the Municipal 32 Service Occupation Tax Act by retailers and servicemen, on 33 transactions at places of business located in the 34 redevelopment project area or State Sales Tax Boundary, as SB53 Engrossed -5- LRB9101827PTpk 1 the case may be, during the base year which shall be the 2 calendar year immediately prior to the year in which the 3 municipality adopted tax increment allocation financing. For 4 purposes of computing the aggregate amount of such taxes for 5 base years occurring prior to 1985, the Department of Revenue 6 shall determine the Initial Sales Tax Amounts for such taxes 7 and deduct therefrom an amount equal to 4% of the aggregate 8 amount of taxes per year for each year the base year is prior 9 to 1985, but not to exceed a total deduction of 12%. The 10 amount so determined shall be known as the "Adjusted Initial 11 Sales Tax Amounts". For purposes of determining the 12 Municipal Sales Tax Increment, the Department of Revenue 13 shall for each period subtract from the amount paid to the 14 municipality from the Local Government Tax Fund arising from 15 sales by retailers and servicemen on transactions located in 16 the redevelopment project area or the State Sales Tax 17 Boundary, as the case may be, the certified Initial Sales Tax 18 Amounts, the Adjusted Initial Sales Tax Amounts or the 19 Revised Initial Sales Tax Amounts for the Municipal 20 Retailers' Occupation Tax Act and the Municipal Service 21 Occupation Tax Act. For the State Fiscal Year 1989, this 22 calculation shall be made by utilizing the calendar year 1987 23 to determine the tax amounts received. For the State Fiscal 24 Year 1990, this calculation shall be made by utilizing the 25 period from January 1, 1988, until September 30, 1988, to 26 determine the tax amounts received from retailers and 27 servicemen pursuant to the Municipal Retailers' Occupation 28 Tax and the Municipal Service Occupation Tax Act, which shall 29 have deducted therefrom nine-twelfths of the certified 30 Initial Sales Tax Amounts, the Adjusted Initial Sales Tax 31 Amounts or the Revised Initial Sales Tax Amounts as 32 appropriate. For the State Fiscal Year 1991, this calculation 33 shall be made by utilizing the period from October 1, 1988, 34 to June 30, 1989, to determine the tax amounts received from SB53 Engrossed -6- LRB9101827PTpk 1 retailers and servicemen pursuant to the Municipal Retailers' 2 Occupation Tax and the Municipal Service Occupation Tax Act 3 which shall have deducted therefrom nine-twelfths of the 4 certified Initial Sales Tax Amounts, Adjusted Initial Sales 5 Tax Amounts or the Revised Initial Sales Tax Amounts as 6 appropriate. For every State Fiscal Year thereafter, the 7 applicable period shall be the 12 months beginning July 1 and 8 ending June 30 to determine the tax amounts received which 9 shall have deducted therefrom the certified Initial Sales Tax 10 Amounts, the Adjusted Initial Sales Tax Amounts or the 11 Revised Initial Sales Tax Amounts, as the case may be. 12 (i) "Net State Sales Tax Increment" means the sum of the 13 following: (a) 80% of the first $100,000 of State Sales Tax 14 Increment annually generated within a State Sales Tax 15 Boundary; (b) 60% of the amount in excess of $100,000 but not 16 exceeding $500,000 of State Sales Tax Increment annually 17 generated within a State Sales Tax Boundary; and (c) 40% of 18 all amounts in excess of $500,000 of State Sales Tax 19 Increment annually generated within a State Sales Tax 20 Boundary. If, however, a municipality established a tax 21 increment financing district in a county with a population in 22 excess of 3,000,000 before January 1, 1986, and the 23 municipality entered into a contract or issued bonds after 24 January 1, 1986, but before December 31, 1986, to finance 25 redevelopment project costs within a State Sales Tax 26 Boundary, then the Net State Sales Tax Increment means, for 27 the fiscal years beginning July 1, 1990, and July 1, 1991, 28 100% of the State Sales Tax Increment annually generated 29 within a State Sales Tax Boundary; and notwithstanding any 30 other provision of this Act, for those fiscal years the 31 Department of Revenue shall distribute to those 32 municipalities 100% of their Net State Sales Tax Increment 33 before any distribution to any other municipality and 34 regardless of whether or not those other municipalities will SB53 Engrossed -7- LRB9101827PTpk 1 receive 100% of their Net State Sales Tax Increment. For 2 Fiscal Year 1999, and every year thereafter until the year 3 2007, for any municipality that has not entered into a 4 contract or has not issued bonds prior to June 1, 1988 to 5 finance redevelopment project costs within a State Sales Tax 6 Boundary, the Net State Sales Tax Increment shall be 7 calculated as follows: By multiplying the Net State Sales Tax 8 Increment by 90% in the State Fiscal Year 1999; 80% in the 9 State Fiscal Year 2000; 70% in the State Fiscal Year 2001; 10 60% in the State Fiscal Year 2002; 50% in the State Fiscal 11 Year 2003; 40% in the State Fiscal Year 2004; 30% in the 12 State Fiscal Year 2005; 20% in the State Fiscal Year 2006; 13 and 10% in the State Fiscal Year 2007. No payment shall be 14 made for State Fiscal Year 2008 and thereafter. 15 Municipalities that issued bonds in connection with a 16 redevelopment project in a redevelopment project area within 17 the State Sales Tax Boundary prior to July 29, 1991, shall 18 continue to receive their proportional share of the Illinois 19 Tax Increment Fund distribution until the date on which the 20 redevelopment project is completed or terminated, or the date 21 on which the bonds are retired, whichever date occurs first. 22 Refunding of any bonds issued prior to July 29, 1991, shall 23 not alter the Net State Sales Tax Increment. 24 (j) "State Utility Tax Increment Amount" means an amount 25 equal to the aggregate increase in State electric and gas tax 26 charges imposed on owners and tenants, other than residential 27 customers, of properties located within the redevelopment 28 project area under Section 9-222 of the Public Utilities Act, 29 over and above the aggregate of such charges as certified by 30 the Department of Revenue and paid by owners and tenants, 31 other than residential customers, of properties within the 32 redevelopment project area during the base year, which shall 33 be the calendar year immediately prior to the year of the 34 adoption of the ordinance authorizing tax increment SB53 Engrossed -8- LRB9101827PTpk 1 allocation financing. 2 (k) "Net State Utility Tax Increment" means the sum of 3 the following: (a) 80% of the first $100,000 of State Utility 4 Tax Increment annually generated by a redevelopment project 5 area; (b) 60% of the amount in excess of $100,000 but not 6 exceeding $500,000 of the State Utility Tax Increment 7 annually generated by a redevelopment project area; and (c) 8 40% of all amounts in excess of $500,000 of State Utility Tax 9 Increment annually generated by a redevelopment project area. 10 For the State Fiscal Year 1999, and every year thereafter 11 until the year 2007, for any municipality that has not 12 entered into a contract or has not issued bonds prior to June 13 1, 1988 to finance redevelopment project costs within a 14 redevelopment project area, the Net State Utility Tax 15 Increment shall be calculated as follows: By multiplying the 16 Net State Utility Tax Increment by 90% in the State Fiscal 17 Year 1999; 80% in the State Fiscal Year 2000; 70% in the 18 State Fiscal Year 2001; 60% in the State Fiscal Year 2002; 19 50% in the State Fiscal Year 2003; 40% in the State Fiscal 20 Year 2004; 30% in the State Fiscal Year 2005; 20% in the 21 State Fiscal Year 2006; and 10% in the State Fiscal Year 22 2007. No payment shall be made for the State Fiscal Year 2008 23 and thereafter. 24 Municipalities that issue bonds in connection with the 25 redevelopment project during the period from June 1, 1988 26 until 3 years after the effective date of this Amendatory Act 27 of 1988 shall receive the Net State Utility Tax Increment, 28 subject to appropriation, for 15 State Fiscal Years after the 29 issuance of such bonds. For the 16th through the 20th State 30 Fiscal Years after issuance of the bonds, the Net State 31 Utility Tax Increment shall be calculated as follows: By 32 multiplying the Net State Utility Tax Increment by 90% in 33 year 16; 80% in year 17; 70% in year 18; 60% in year 19; and 34 50% in year 20. Refunding of any bonds issued prior to June SB53 Engrossed -9- LRB9101827PTpk 1 1, 1988, shall not alter the revised Net State Utility Tax 2 Increment payments set forth above. 3 (l) "Obligations" mean bonds, loans, debentures, notes, 4 special certificates or other evidence of indebtedness issued 5 by the municipality to carry out a redevelopment project or 6 to refund outstanding obligations. 7 (m) "Payment in lieu of taxes" means those estimated tax 8 revenues from real property in a redevelopment project area 9 acquired by a municipality which according to the 10 redevelopment project or plan is to be used for a private use 11 which taxing districts would have received had a municipality 12 not adopted tax increment allocation financing and which 13 would result from levies made after the time of the adoption 14 of tax increment allocation financing to the time the current 15 equalized value of real property in the redevelopment project 16 area exceeds the total initial equalized value of real 17 property in said area. 18 (n) "Redevelopment plan" means the comprehensive program 19 of the municipality for development or redevelopment intended 20 by the payment of redevelopment project costs to reduce or 21 eliminate those conditions the existence of which qualified 22 the redevelopment project area as a "blighted area" or 23 "conservation area" or combination thereof or "industrial 24 park conservation area," and thereby to enhance the tax bases 25 of the taxing districts which extend into the redevelopment 26 project area. Each redevelopment plan shall set forth in 27 writing the program to be undertaken to accomplish the 28 objectives and shall include but not be limited to: 29 (A) estimated redevelopment project costs; 30 (B) evidence indicating that the redevelopment 31 project area on the whole has not been subject to growth 32 and development through investment by private enterprise; 33 (C) an assessment of any financial impact of the 34 redevelopment project area on or any increased demand for SB53 Engrossed -10- LRB9101827PTpk 1 services from any taxing district affected by the plan 2 and any program to address such financial impact or 3 increased demand; 4 (D) the sources of funds to pay costs; 5 (E) the nature and term of the obligations to be 6 issued; 7 (F) the most recent equalized assessed valuation of 8 the redevelopment project area; 9 (G) an estimate as to the equalized assessed 10 valuation after redevelopment and the general land uses 11 to apply in the redevelopment project area; 12 (H) a commitment to fair employment practices and 13 an affirmative action plan; 14 (I) if it concerns an industrial park conservation 15 area, the plan shall also include a general description 16 of any proposed developer, user and tenant of any 17 property, a description of the type, structure and 18 general character of the facilities to be developed, a 19 description of the type, class and number of new 20 employees to be employed in the operation of the 21 facilities to be developed; and 22 (J) if property is to be annexed to the 23 municipality, the plan shall include the terms of the 24 annexation agreement. 25 The provisions of items (B) and (C) of this subsection 26 (n) shall not apply to a municipality that before March 14, 27 1994 (the effective date of Public Act 88-537) had fixed, 28 either by its corporate authorities or by a commission 29 designated under subsection (k) of Section 11-74.4-4, a time 30 and place for a public hearing as required by subsection (a) 31 of Section 11-74.4-5. No redevelopment plan shall be adopted 32 unless a municipality complies with all of the following 33 requirements: 34 (1) The municipality finds that the redevelopment SB53 Engrossed -11- LRB9101827PTpk 1 project area on the whole has not been subject to growth 2 and development through investment by private enterprise 3 and would not reasonably be anticipated to be developed 4 without the adoption of the redevelopment plan. 5 (2) The municipality finds that the redevelopment 6 plan and project conform to the comprehensive plan for 7 the development of the municipality as a whole, or, for 8 municipalities with a population of 100,000 or more, 9 regardless of when the redevelopment plan and project was 10 adopted, the redevelopment plan and project either: (i) 11 conforms to the strategic economic development or 12 redevelopment plan issued by the designated planning 13 authority of the municipality, or (ii) includes land uses 14 that have been approved by the planning commission of the 15 municipality. 16 (3) The redevelopment plan establishes the 17 estimated dates of completion of the redevelopment 18 project and retirement of obligations issued to finance 19 redevelopment project costs. Those dates shall not be 20 more than 23 years from the adoption of the ordinance 21 approving the redevelopment project area if the ordinance 22 was adopted on or after January 15, 1981, and not more 23 than 35 years if the ordinance was adopted before January 24 15, 1981, or if the ordinance was adopted in April 1984 25 or July 1985, or if the ordinance was adopted in December 26 1987 and the redevelopment project is located within one 27 mile of Midway Airport, or if the municipality is subject 28 to the Local Government Financial Planning and 29 Supervision Act, or if the ordinance was adopted on 30 December 31, 1986 by a municipality with a population in 31 1990 of less than 3,600 that is located in a county with 32 a population in 1990 of less than 34,000 and for which at 33 least $250,000 of tax increment bonds were authorized on 34 June 17, 1997. However, for redevelopment project areas SB53 Engrossed -12- LRB9101827PTpk 1 for which bonds were issued before July 29, 1991, in 2 connection with a redevelopment project in the area 3 within the State Sales Tax Boundary, the estimated dates 4 of completion of the redevelopment project and retirement 5 of obligations to finance redevelopment project costs may 6 be extended by municipal ordinance to December 31, 2013. 7 The extension allowed by this amendatory Act of 1993 8 shall not apply to real property tax increment allocation 9 financing under Section 11-74.4-8. 10 Those dates, for purposes of real property tax 11 increment allocation financing pursuant to Section 12 11-74.4-8 only, shall be not more than 35 years for 13 redevelopment project areas that were adopted on or after 14 December 16, 1986 and for which at least $8 million worth 15 of municipal bonds were authorized on or after December 16 19, 1989 but before January 1, 1990; provided that the 17 municipality elects to extend the life of the 18 redevelopment project area to 35 years by the adoption of 19 an ordinance after at least 14 but not more than 30 days' 20 written notice to the taxing bodies, that would otherwise 21 constitute the joint review board for the redevelopment 22 project area, before the adoption of the ordinance. 23 Those dates, for purposes of real property tax 24 increment allocation financing pursuant to Section 25 11-74.4-8 only, shall be not more than 35 years for 26 redevelopment project areas that were established on or 27 after December 1, 1981 but before January 1, 1982 and for 28 which at least $1,500,000 worth of tax increment revenue 29 bonds were authorized on or after September 30, 1990 but 30 before July 1, 1991; provided that the municipality 31 elects to extend the life of the redevelopment project 32 area to 35 years by the adoption of an ordinance after at 33 least 14 but not more than 30 days' written notice to the 34 taxing bodies, that would otherwise constitute the joint SB53 Engrossed -13- LRB9101827PTpk 1 review board for the redevelopment project area, before 2 the adoption of the ordinance. 3 (4) The municipality finds, in the case of an 4 industrial park conservation area, also that the 5 municipality is a labor surplus municipality and that the 6 implementation of the redevelopment plan will reduce 7 unemployment, create new jobs and by the provision of new 8 facilities enhance the tax base of the taxing districts 9 that extend into the redevelopment project area. 10 (5) If any incremental revenues are being utilized 11 under Section 8(a)(1) or 8(a)(2) of this Act in 12 redevelopment project areas approved by ordinance after 13 January 1, 1986, the municipality finds: (a) that the 14 redevelopment project area would not reasonably be 15 developed without the use of such incremental revenues, 16 and (b) that such incremental revenues will be 17 exclusively utilized for the development of the 18 redevelopment project area. 19 (o) "Redevelopment project" means any public and private 20 development project in furtherance of the objectives of a 21 redevelopment plan. 22 (p) "Redevelopment project area" means an area 23 designated by the municipality, which is not less in the 24 aggregate than 1 1/2 acres and in respect to which the 25 municipality has made a finding that there exist conditions 26 which cause the area to be classified as an industrial park 27 conservation area or a blighted area or a conservation area, 28 or a combination of both blighted areas and conservation 29 areas. 30 (q) "Redevelopment project costs" mean and include the 31 sum total of all reasonable or necessary costs incurred or 32 estimated to be incurred, and any such costs incidental to a 33 redevelopment plan and a redevelopment project. Such costs 34 include, without limitation, the following: SB53 Engrossed -14- LRB9101827PTpk 1 (1) Costs of studies, surveys, development of 2 plans, and specifications, implementation and 3 administration of the redevelopment plan including but 4 not limited to staff and professional service costs for 5 architectural, engineering, legal, marketing, financial, 6 planning or other services, provided however that no 7 charges for professional services may be based on a 8 percentage of the tax increment collected; 9 (2) Property assembly costs, including but not 10 limited to acquisition of land and other property, real 11 or personal, or rights or interests therein, demolition 12 of buildings, and the clearing and grading of land; 13 (3) Costs of rehabilitation, reconstruction or 14 repair or remodeling of existing public or private 15 buildings and fixtures; 16 (4) Costs of the construction of public works or 17 improvements; 18 (5) Costs of job training and retraining projects; 19 (6) Financing costs, including but not limited to 20 all necessary and incidental expenses related to the 21 issuance of obligations and which may include payment of 22 interest on any obligations issued hereunder accruing 23 during the estimated period of construction of any 24 redevelopment project for which such obligations are 25 issued and for not exceeding 36 months thereafter and 26 including reasonable reserves related thereto; 27 (7) All or a portion of a taxing district's capital 28 costs resulting from the redevelopment project 29 necessarily incurred or to be incurred in furtherance of 30 the objectives of the redevelopment plan and project, to 31 the extent the municipality by written agreement accepts 32 and approves such costs; 33 (8) Relocation costs to the extent that a 34 municipality determines that relocation costs shall be SB53 Engrossed -15- LRB9101827PTpk 1 paid or is required to make payment of relocation costs 2 by federal or State law; 3 (9) Payment in lieu of taxes; 4 (10) Costs of job training, advanced vocational 5 education or career education, including but not limited 6 to courses in occupational, semi-technical or technical 7 fields leading directly to employment, incurred by one or 8 more taxing districts, provided that such costs (i) are 9 related to the establishment and maintenance of 10 additional job training, advanced vocational education or 11 career education programs for persons employed or to be 12 employed by employers located in a redevelopment project 13 area; and (ii) when incurred by a taxing district or 14 taxing districts other than the municipality, are set 15 forth in a written agreement by or among the municipality 16 and the taxing district or taxing districts, which 17 agreement describes the program to be undertaken, 18 including but not limited to the number of employees to 19 be trained, a description of the training and services to 20 be provided, the number and type of positions available 21 or to be available, itemized costs of the program and 22 sources of funds to pay for the same, and the term of the 23 agreement. Such costs include, specifically, the payment 24 by community college districts of costs pursuant to 25 Sections 3-37, 3-38, 3-40 and 3-40.1 of the Public 26 Community College Act and by school districts of costs 27 pursuant to Sections 10-22.20a and 10-23.3a of The School 28 Code; 29 (11) Interest cost incurred by a redeveloper 30 related to the construction, renovation or rehabilitation 31 of a redevelopment project provided that: 32 (A) such costs are to be paid directly from 33 the special tax allocation fund established pursuant 34 to this Act; and SB53 Engrossed -16- LRB9101827PTpk 1 (B) such payments in any one year may not 2 exceed 30% of the annual interest costs incurred by 3 the redeveloper with regard to the redevelopment 4 project during that year; 5 (C) if there are not sufficient funds 6 available in the special tax allocation fund to make 7 the payment pursuant to this paragraph (11) then the 8 amounts so due shall accrue and be payable when 9 sufficient funds are available in the special tax 10 allocation fund; and 11 (D) the total of such interest payments paid 12 pursuant to this Act may not exceed 30% of the total 13 (i) cost paid or incurred by the redeveloper for the 14 redevelopment project plus (ii) redevelopment 15 project costs excluding any property assembly costs 16 and any relocation costs incurred by a municipality 17 pursuant to this Act. 18 (12) Unless explicitly stated herein the cost of 19 construction of new privately-owned buildings shall not 20 be an eligible redevelopment project cost. 21 If a special service area has been established pursuant 22 to the Special Service Area Tax Act, then any tax increment 23 revenues derived from the tax imposed pursuant to the Special 24 Service Area Tax Act may be used within the redevelopment 25 project area for the purposes permitted by that Act as well 26 as the purposes permitted by this Act. 27 (r) "State Sales Tax Boundary" means the redevelopment 28 project area or the amended redevelopment project area 29 boundaries which are determined pursuant to subsection (9) of 30 Section 11-74.4-8a of this Act. The Department of Revenue 31 shall certify pursuant to subsection (9) of Section 32 11-74.4-8a the appropriate boundaries eligible for the 33 determination of State Sales Tax Increment. 34 (s) "State Sales Tax Increment" means an amount equal to SB53 Engrossed -17- LRB9101827PTpk 1 the increase in the aggregate amount of taxes paid by 2 retailers and servicemen, other than retailers and servicemen 3 subject to the Public Utilities Act, on transactions at 4 places of business located within a State Sales Tax Boundary 5 pursuant to the Retailers' Occupation Tax Act, the Use Tax 6 Act, the Service Use Tax Act, and the Service Occupation Tax 7 Act, except such portion of such increase that is paid into 8 the State and Local Sales Tax Reform Fund, the Local 9 Government Distributive Fund, the Local Government Tax 10 Fund and the County and Mass Transit District Fund, for as 11 long as State participation exists, over and above the 12 Initial Sales Tax Amounts, Adjusted Initial Sales Tax Amounts 13 or the Revised Initial Sales Tax Amounts for such taxes as 14 certified by the Department of Revenue and paid under those 15 Acts by retailers and servicemen on transactions at places of 16 business located within the State Sales Tax Boundary during 17 the base year which shall be the calendar year immediately 18 prior to the year in which the municipality adopted tax 19 increment allocation financing, less 3.0% of such amounts 20 generated under the Retailers' Occupation Tax Act, Use Tax 21 Act and Service Use Tax Act and the Service Occupation Tax 22 Act, which sum shall be appropriated to the Department of 23 Revenue to cover its costs of administering and enforcing 24 this Section. For purposes of computing the aggregate amount 25 of such taxes for base years occurring prior to 1985, the 26 Department of Revenue shall compute the Initial Sales Tax 27 Amount for such taxes and deduct therefrom an amount equal to 28 4% of the aggregate amount of taxes per year for each year 29 the base year is prior to 1985, but not to exceed a total 30 deduction of 12%. The amount so determined shall be known as 31 the "Adjusted Initial Sales Tax Amount". For purposes of 32 determining the State Sales Tax Increment the Department of 33 Revenue shall for each period subtract from the tax amounts 34 received from retailers and servicemen on transactions SB53 Engrossed -18- LRB9101827PTpk 1 located in the State Sales Tax Boundary, the certified 2 Initial Sales Tax Amounts, Adjusted Initial Sales Tax Amounts 3 or Revised Initial Sales Tax Amounts for the Retailers' 4 Occupation Tax Act, the Use Tax Act, the Service Use Tax Act 5 and the Service Occupation Tax Act. For the State Fiscal 6 Year 1989 this calculation shall be made by utilizing the 7 calendar year 1987 to determine the tax amounts received. For 8 the State Fiscal Year 1990, this calculation shall be made by 9 utilizing the period from January 1, 1988, until September 10 30, 1988, to determine the tax amounts received from 11 retailers and servicemen, which shall have deducted therefrom 12 nine-twelfths of the certified Initial Sales Tax Amounts, 13 Adjusted Initial Sales Tax Amounts or the Revised Initial 14 Sales Tax Amounts as appropriate. For the State Fiscal Year 15 1991, this calculation shall be made by utilizing the period 16 from October 1, 1988, until June 30, 1989, to determine the 17 tax amounts received from retailers and servicemen, which 18 shall have deducted therefrom nine-twelfths of the certified 19 Initial State Sales Tax Amounts, Adjusted Initial Sales Tax 20 Amounts or the Revised Initial Sales Tax Amounts as 21 appropriate. For every State Fiscal Year thereafter, the 22 applicable period shall be the 12 months beginning July 1 and 23 ending on June 30, to determine the tax amounts received 24 which shall have deducted therefrom the certified Initial 25 Sales Tax Amounts, Adjusted Initial Sales Tax Amounts or the 26 Revised Initial Sales Tax Amounts. Municipalities intending 27 to receive a distribution of State Sales Tax Increment must 28 report a list of retailers to the Department of Revenue by 29 October 31, 1988 and by July 31, of each year thereafter. 30 (t) "Taxing districts" means counties, townships, cities 31 and incorporated towns and villages, school, road, park, 32 sanitary, mosquito abatement, forest preserve, public health, 33 fire protection, river conservancy, tuberculosis sanitarium 34 and any other municipal corporations or districts with the SB53 Engrossed -19- LRB9101827PTpk 1 power to levy taxes. 2 (u) "Taxing districts' capital costs" means those costs 3 of taxing districts for capital improvements that are found 4 by the municipal corporate authorities to be necessary and 5 directly result from the redevelopment project. 6 (v) As used in subsection (a) of Section 11-74.4-3 of 7 this Act, "vacant land" means any parcel or combination of 8 parcels of real property without industrial, commercial, and 9 residential buildings which has not been used for commercial 10 agricultural purposes within 5 years prior to the designation 11 of the redevelopment project area, unless the parcel is 12 included in an industrial park conservation area or the 13 parcel has been subdivided; provided that if the parcel was 14 part of a larger tract that has been divided into 3 or more 15 smaller tracts that were accepted for recording during the 16 period from 1950 to 1990, then the parcel shall be deemed to 17 have been subdivided, and all proceedings and actions of the 18 municipality taken in that connection with respect to any 19 previously approved or designated redevelopment project area 20 or amended redevelopment project area are hereby validated 21 and hereby declared to be legally sufficient for all purposes 22 of this Act. 23 (w) "Annual Total Increment" means the sum of each 24 municipality's annual Net Sales Tax Increment and each 25 municipality's annual Net Utility Tax Increment. The ratio 26 of the Annual Total Increment of each municipality to the 27 Annual Total Increment for all municipalities, as most 28 recently calculated by the Department, shall determine the 29 proportional shares of the Illinois Tax Increment Fund to be 30 distributed to each municipality. 31 (Source: P.A. 89-235, eff. 8-4-95; 89-705, eff. 1-31-97; 32 90-379, eff. 8-14-97.) 33 (65 ILCS 5/11-74.4-7) (from Ch. 24, par. 11-74.4-7) SB53 Engrossed -20- LRB9101827PTpk 1 Sec. 11-74.4-7. Obligations secured by the special tax 2 allocation fund set forth in Section 11-74.4-8 for the 3 redevelopment project area may be issued to provide for 4 redevelopment project costs. Such obligations, when so 5 issued, shall be retired in the manner provided in the 6 ordinance authorizing the issuance of such obligations by the 7 receipts of taxes levied as specified in Section 11-74.4-9 8 against the taxable property included in the area, by 9 revenues as specified by Section 11-74.4-8a and other revenue 10 designated by the municipality. A municipality may in the 11 ordinance pledge all or any part of the funds in and to be 12 deposited in the special tax allocation fund created pursuant 13 to Section 11-74.4-8 to the payment of the redevelopment 14 project costs and obligations. Any pledge of funds in the 15 special tax allocation fund shall provide for distribution to 16 the taxing districts and to the Illinois Department of 17 Revenue of moneys not required for payment and securing of 18 the obligations and redevelopment project costs and such 19 excess funds shall be calculated annually and deemed to be 20 "surplus" funds. In the event a municipality only pledges a 21 portion of the funds in the special tax allocation fund for 22 the payment of redevelopment project costs or obligations, 23 any such funds remaining in the special tax allocation fund 24 after complying with the requirements of the pledge, shall 25 also be calculated annually and deemed "surplus" funds. All 26 surplus funds in the special tax allocation fund, subject to 27 the provisions of (6.1) of Section 11-74.4-8a, shall be 28 distributed annually within 180 days after the close of the 29 municipality's fiscal year by being paid by the municipal 30 treasurer to the County Collector, to the Department of 31 Revenue and to the municipality in direct proportion to the 32 tax incremental revenue received as a result of an increase 33 in the equalized assessed value of property in the 34 redevelopment project area, tax incremental revenue received SB53 Engrossed -21- LRB9101827PTpk 1 from the State and tax incremental revenue received from the 2 municipality, but not to exceed as to each such source the 3 total incremental revenue received from that source. Except 4 that any special tax allocation fund subject to provision in 5 (6.1) of Section 11-74.4-8a shall comply with the provisions 6 in that Section. The County Collector shall thereafter make 7 distribution to the respective taxing districts in the same 8 manner and proportion as the most recent distribution by the 9 county collector to the affected districts of real property 10 taxes from real property in the redevelopment project area. 11 Without limiting the foregoing in this Section, the 12 municipality may in addition to obligations secured by the 13 special tax allocation fund pledge for a period not greater 14 than the term of the obligations towards payment of such 15 obligations any part or any combination of the following: (a) 16 net revenues of all or part of any redevelopment project; (b) 17 taxes levied and collected on any or all property in the 18 municipality; (c) the full faith and credit of the 19 municipality; (d) a mortgage on part or all of the 20 redevelopment project; or (e) any other taxes or anticipated 21 receipts that the municipality may lawfully pledge. 22 Such obligations may be issued in one or more series 23 bearing interest at such rate or rates as the corporate 24 authorities of the municipality shall determine by ordinance. 25 Such obligations shall bear such date or dates, mature at 26 such time or times not exceeding 20 years from their 27 respective dates, be in such denomination, carry such 28 registration privileges, be executed in such manner, be 29 payable in such medium of payment at such place or places, 30 contain such covenants, terms and conditions, and be subject 31 to redemption as such ordinance shall provide. Obligations 32 issued pursuant to this Act may be sold at public or private 33 sale at such price as shall be determined by the corporate 34 authorities of the municipalities. No referendum approval of SB53 Engrossed -22- LRB9101827PTpk 1 the electors shall be required as a condition to the issuance 2 of obligations pursuant to this Division except as provided 3 in this Section. 4 In the event the municipality authorizes issuance of 5 obligations pursuant to the authority of this Division 6 secured by the full faith and credit of the municipality, 7 which obligations are other than obligations which may be 8 issued under home rule powers provided by Article VII, 9 Section 6 of the Illinois Constitution, or pledges taxes 10 pursuant to (b) or (c) of the second paragraph of this 11 section, the ordinance authorizing the issuance of such 12 obligations or pledging such taxes shall be published within 13 10 days after such ordinance has been passed in one or more 14 newspapers, with general circulation within such 15 municipality. The publication of the ordinance shall be 16 accompanied by a notice of (1) the specific number of voters 17 required to sign a petition requesting the question of the 18 issuance of such obligations or pledging taxes to be 19 submitted to the electors; (2) the time in which such 20 petition must be filed; and (3) the date of the prospective 21 referendum. The municipal clerk shall provide a petition 22 form to any individual requesting one. 23 If no petition is filed with the municipal clerk, as 24 hereinafter provided in this Section, within 30 days after 25 the publication of the ordinance, the ordinance shall be in 26 effect. But, if within that 30 day period a petition is 27 filed with the municipal clerk, signed by electors in the 28 municipality numbering 10% or more of the number of 29 registered voters in the municipality, asking that the 30 question of issuing obligations using full faith and credit 31 of the municipality as security for the cost of paying for 32 redevelopment project costs, or of pledging taxes for the 33 payment of such obligations, or both, be submitted to the 34 electors of the municipality, the corporate authorities of SB53 Engrossed -23- LRB9101827PTpk 1 the municipality shall call a special election in the manner 2 provided by law to vote upon that question, or, if a general, 3 State or municipal election is to be held within a period of 4 not less than 30 or more than 90 days from the date such 5 petition is filed, shall submit the question at the next 6 general, State or municipal election. If it appears upon the 7 canvass of the election by the corporate authorities that a 8 majority of electors voting upon the question voted in favor 9 thereof, the ordinance shall be in effect, but if a majority 10 of the electors voting upon the question are not in favor 11 thereof, the ordinance shall not take effect. 12 The ordinance authorizing the obligations may provide 13 that the obligations shall contain a recital that they are 14 issued pursuant to this Division, which recital shall be 15 conclusive evidence of their validity and of the regularity 16 of their issuance. 17 In the event the municipality authorizes issuance of 18 obligations pursuant to this Section secured by the full 19 faith and credit of the municipality, the ordinance 20 authorizing the obligations may provide for the levy and 21 collection of a direct annual tax upon all taxable property 22 within the municipality sufficient to pay the principal 23 thereof and interest thereon as it matures, which levy may be 24 in addition to and exclusive of the maximum of all other 25 taxes authorized to be levied by the municipality, which 26 levy, however, shall be abated to the extent that monies from 27 other sources are available for payment of the obligations 28 and the municipality certifies the amount of said monies 29 available to the county clerk. 30 A certified copy of such ordinance shall be filed with 31 the county clerk of each county in which any portion of the 32 municipality is situated, and shall constitute the authority 33 for the extension and collection of the taxes to be deposited 34 in the special tax allocation fund. SB53 Engrossed -24- LRB9101827PTpk 1 A municipality may also issue its obligations to refund 2 in whole or in part, obligations theretofore issued by such 3 municipality under the authority of this Act, whether at or 4 prior to maturity, provided however, that the last maturity 5 of the refunding obligations shall not be expressed to mature 6 later than 23 years from the date of the ordinance approving 7 the redevelopment project area if the ordinance was adopted 8 on or after January 15, 1981, and not more than 35 years if 9 the ordinance was adopted before January 15, 1981, or if the 10 ordinance was adopted in April, 1984, July, 1985, or if the 11 ordinance was adopted in December, 1987 and the redevelopment 12 project is located within one mile of Midway Airport, or if 13 the municipality is subject to the Local Government Financial 14 Planning and Supervision Act, or if the ordinance was adopted 15 on December 31, 1986 by a municipality with a population in 16 1990 of less than 3,600 that is located in a county with a 17 population in 1990 of less than 34,000 and for which at least 18 $250,000 of tax increment bonds were authorized on June 17, 19 1997 and, for redevelopment project areas for which bonds 20 were issued before July 29, 1991, in connection with a 21 redevelopment project in the area within the State Sales Tax 22 Boundary and which were extended by municipal ordinance under 23 subsection (n) of Section 11-74.4-3, the last maturity of 24 the refunding obligations shall not be expressed to mature 25 later than the date on which the redevelopment project area 26 is terminated or December 31, 2013, whichever date occurs 27 first. 28 In the event a municipality issues obligations under home 29 rule powers or other legislative authority the proceeds of 30 which are pledged to pay for redevelopment project costs, the 31 municipality may, if it has followed the procedures in 32 conformance with this division, retire said obligations from 33 funds in the special tax allocation fund in amounts and in 34 such manner as if such obligations had been issued pursuant SB53 Engrossed -25- LRB9101827PTpk 1 to the provisions of this division. 2 All obligations heretofore or hereafter issued pursuant 3 to this Act shall not be regarded as indebtedness of the 4 municipality issuing such obligations or any other taxing 5 district for the purpose of any limitation imposed by law. 6 (Source: P.A. 89-357; eff. 8-17-95; 90-379, eff. 8-14-97.) 7 Section 99. Effective date. This Act takes effect upon 8 becoming law.