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91_SB1032
LRB9101829PTpr
1 AN ACT concerning tax increment financing.
2 Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
4 Section 5. The Property Tax Code is amended by changing
5 Section 18-185 as follows:
6 (35 ILCS 200/18-185)
7 Sec. 18-185. Short title; definitions. This Division 5
8 Section and Sections 18-190 through 18-245 may be cited as
9 the Property Tax Extension Limitation Law. As used in this
10 Division 5 Sections 18-190 through 18-245:
11 "Consumer Price Index" means the Consumer Price Index for
12 All Urban Consumers for all items published by the United
13 States Department of Labor.
14 "Extension limitation" means (a) the lesser of 5% or the
15 percentage increase in the Consumer Price Index during the
16 12-month calendar year preceding the levy year or (b) the
17 rate of increase approved by voters under Section 18-205.
18 "Affected county" means a county of 3,000,000 or more
19 inhabitants or a county contiguous to a county of 3,000,000
20 or more inhabitants.
21 "Taxing district" has the same meaning provided in
22 Section 1-150, except as otherwise provided in this Section.
23 For the 1991 through 1994 levy years only, "taxing district"
24 includes only each non-home rule taxing district having the
25 majority of its 1990 equalized assessed value within any
26 county or counties contiguous to a county with 3,000,000 or
27 more inhabitants. Beginning with the 1995 levy year, "taxing
28 district" includes only each non-home rule taxing district
29 subject to this Law before the 1995 levy year and each
30 non-home rule taxing district not subject to this Law before
31 the 1995 levy year having the majority of its 1994 equalized
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1 assessed value in an affected county or counties. Beginning
2 with the levy year in which this Law becomes applicable to a
3 taxing district as provided in Section 18-213, "taxing
4 district" also includes those taxing districts made subject
5 to this Law as provided in Section 18-213.
6 "Aggregate extension" for taxing districts to which this
7 Law applied before the 1995 levy year means the annual
8 corporate extension for the taxing district and those special
9 purpose extensions that are made annually for the taxing
10 district, excluding special purpose extensions: (a) made for
11 the taxing district to pay interest or principal on general
12 obligation bonds that were approved by referendum; (b) made
13 for any taxing district to pay interest or principal on
14 general obligation bonds issued before October 1, 1991; (c)
15 made for any taxing district to pay interest or principal on
16 bonds issued to refund or continue to refund those bonds
17 issued before October 1, 1991; (d) made for any taxing
18 district to pay interest or principal on bonds issued to
19 refund or continue to refund bonds issued after October 1,
20 1991 that were approved by referendum; (e) made for any
21 taxing district to pay interest or principal on revenue bonds
22 issued before October 1, 1991 for payment of which a property
23 tax levy or the full faith and credit of the unit of local
24 government is pledged; however, a tax for the payment of
25 interest or principal on those bonds shall be made only after
26 the governing body of the unit of local government finds that
27 all other sources for payment are insufficient to make those
28 payments; (f) made for payments under a building commission
29 lease when the lease payments are for the retirement of bonds
30 issued by the commission before October 1, 1991, to pay for
31 the building project; (g) made for payments due under
32 installment contracts entered into before October 1, 1991;
33 (h) made for payments of principal and interest on bonds
34 issued under the Metropolitan Water Reclamation District Act
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1 to finance construction projects initiated before October 1,
2 1991; (i) made for payments of principal and interest on
3 limited bonds, as defined in Section 3 of the Local
4 Government Debt Reform Act, in an amount not to exceed the
5 debt service extension base less the amount in items (b),
6 (c), (e), and (h) of this definition for non-referendum
7 obligations, except obligations initially issued pursuant to
8 referendum; (j) made for payments of principal and interest
9 on bonds issued under Section 15 of the Local Government Debt
10 Reform Act; and (k) made by a school district that
11 participates in the Special Education District of Lake
12 County, created by special education joint agreement under
13 Section 10-22.31 of the School Code, for payment of the
14 school district's share of the amounts required to be
15 contributed by the Special Education District of Lake County
16 to the Illinois Municipal Retirement Fund under Article 7 of
17 the Illinois Pension Code; the amount of any extension under
18 this item (k) shall be certified by the school district to
19 the county clerk.
20 "Aggregate extension" for the taxing districts to which
21 this Law did not apply before the 1995 levy year (except
22 taxing districts subject to this Law in accordance with
23 Section 18-213) means the annual corporate extension for the
24 taxing district and those special purpose extensions that are
25 made annually for the taxing district, excluding special
26 purpose extensions: (a) made for the taxing district to pay
27 interest or principal on general obligation bonds that were
28 approved by referendum; (b) made for any taxing district to
29 pay interest or principal on general obligation bonds issued
30 before March 1, 1995; (c) made for any taxing district to pay
31 interest or principal on bonds issued to refund or continue
32 to refund those bonds issued before March 1, 1995; (d) made
33 for any taxing district to pay interest or principal on bonds
34 issued to refund or continue to refund bonds issued after
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1 March 1, 1995 that were approved by referendum; (e) made for
2 any taxing district to pay interest or principal on revenue
3 bonds issued before March 1, 1995 for payment of which a
4 property tax levy or the full faith and credit of the unit of
5 local government is pledged; however, a tax for the payment
6 of interest or principal on those bonds shall be made only
7 after the governing body of the unit of local government
8 finds that all other sources for payment are insufficient to
9 make those payments; (f) made for payments under a building
10 commission lease when the lease payments are for the
11 retirement of bonds issued by the commission before March 1,
12 1995 to pay for the building project; (g) made for payments
13 due under installment contracts entered into before March 1,
14 1995; (h) made for payments of principal and interest on
15 bonds issued under the Metropolitan Water Reclamation
16 District Act to finance construction projects initiated
17 before October 1, 1991; (i) made for payments of principal
18 and interest on limited bonds, as defined in Section 3 of the
19 Local Government Debt Reform Act, in an amount not to exceed
20 the debt service extension base less the amount in items (b),
21 (c), and (e) of this definition for non-referendum
22 obligations, except obligations initially issued pursuant to
23 referendum and bonds described in subsection (h) of this
24 definition; (j) made for payments of principal and interest
25 on bonds issued under Section 15 of the Local Government Debt
26 Reform Act; (k) made for payments of principal and interest
27 on bonds authorized by Public Act 88-503 and issued under
28 Section 20a of the Chicago Park District Act for aquarium or
29 museum projects; and (l) made for payments of principal and
30 interest on bonds authorized by Public Act 87-1191 and issued
31 under Section 42 of the Cook County Forest Preserve District
32 Act for zoological park projects.
33 "Aggregate extension" for all taxing districts to which
34 this Law applies in accordance with Section 18-213, except
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1 for those taxing districts subject to paragraph (2) of
2 subsection (e) of Section 18-213, means the annual corporate
3 extension for the taxing district and those special purpose
4 extensions that are made annually for the taxing district,
5 excluding special purpose extensions: (a) made for the taxing
6 district to pay interest or principal on general obligation
7 bonds that were approved by referendum; (b) made for any
8 taxing district to pay interest or principal on general
9 obligation bonds issued before the date on which the
10 referendum making this Law applicable to the taxing district
11 is held; (c) made for any taxing district to pay interest or
12 principal on bonds issued to refund or continue to refund
13 those bonds issued before the date on which the referendum
14 making this Law applicable to the taxing district is held;
15 (d) made for any taxing district to pay interest or principal
16 on bonds issued to refund or continue to refund bonds issued
17 after the date on which the referendum making this Law
18 applicable to the taxing district is held if the bonds were
19 approved by referendum after the date on which the referendum
20 making this Law applicable to the taxing district is held;
21 (e) made for any taxing district to pay interest or principal
22 on revenue bonds issued before the date on which the
23 referendum making this Law applicable to the taxing district
24 is held for payment of which a property tax levy or the full
25 faith and credit of the unit of local government is pledged;
26 however, a tax for the payment of interest or principal on
27 those bonds shall be made only after the governing body of
28 the unit of local government finds that all other sources for
29 payment are insufficient to make those payments; (f) made for
30 payments under a building commission lease when the lease
31 payments are for the retirement of bonds issued by the
32 commission before the date on which the referendum making
33 this Law applicable to the taxing district is held to pay for
34 the building project; (g) made for payments due under
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1 installment contracts entered into before the date on which
2 the referendum making this Law applicable to the taxing
3 district is held; (h) made for payments of principal and
4 interest on limited bonds, as defined in Section 3 of the
5 Local Government Debt Reform Act, in an amount not to exceed
6 the debt service extension base less the amount in items (b),
7 (c), and (e) of this definition for non-referendum
8 obligations, except obligations initially issued pursuant to
9 referendum; (i) made for payments of principal and interest
10 on bonds issued under Section 15 of the Local Government Debt
11 Reform Act; and (j) made for a qualified airport authority to
12 pay interest or principal on general obligation bonds issued
13 for the purpose of paying obligations due under, or financing
14 airport facilities required to be acquired, constructed,
15 installed or equipped pursuant to, contracts entered into
16 before March 1, 1996 (but not including any amendments to
17 such a contract taking effect on or after that date).
18 "Aggregate extension" for all taxing districts to which
19 this Law applies in accordance with paragraph (2) of
20 subsection (e) of Section 18-213 means the annual corporate
21 extension for the taxing district and those special purpose
22 extensions that are made annually for the taxing district,
23 excluding special purpose extensions: (a) made for the taxing
24 district to pay interest or principal on general obligation
25 bonds that were approved by referendum; (b) made for any
26 taxing district to pay interest or principal on general
27 obligation bonds issued before the effective date of this
28 amendatory Act of 1997; (c) made for any taxing district to
29 pay interest or principal on bonds issued to refund or
30 continue to refund those bonds issued before the effective
31 date of this amendatory Act of 1997; (d) made for any taxing
32 district to pay interest or principal on bonds issued to
33 refund or continue to refund bonds issued after the effective
34 date of this amendatory Act of 1997 if the bonds were
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1 approved by referendum after the effective date of this
2 amendatory Act of 1997; (e) made for any taxing district to
3 pay interest or principal on revenue bonds issued before the
4 effective date of this amendatory Act of 1997 for payment of
5 which a property tax levy or the full faith and credit of the
6 unit of local government is pledged; however, a tax for the
7 payment of interest or principal on those bonds shall be made
8 only after the governing body of the unit of local government
9 finds that all other sources for payment are insufficient to
10 make those payments; (f) made for payments under a building
11 commission lease when the lease payments are for the
12 retirement of bonds issued by the commission before the
13 effective date of this amendatory Act of 1997 to pay for the
14 building project; (g) made for payments due under installment
15 contracts entered into before the effective date of this
16 amendatory Act of 1997; (h) made for payments of principal
17 and interest on limited bonds, as defined in Section 3 of the
18 Local Government Debt Reform Act, in an amount not to exceed
19 the debt service extension base less the amount in items (b),
20 (c), and (e) of this definition for non-referendum
21 obligations, except obligations initially issued pursuant to
22 referendum; (i) made for payments of principal and interest
23 on bonds issued under Section 15 of the Local Government Debt
24 Reform Act; and (j) made for a qualified airport authority to
25 pay interest or principal on general obligation bonds issued
26 for the purpose of paying obligations due under, or financing
27 airport facilities required to be acquired, constructed,
28 installed or equipped pursuant to, contracts entered into
29 before March 1, 1996 (but not including any amendments to
30 such a contract taking effect on or after that date).
31 "Debt service extension base" means an amount equal to
32 that portion of the extension for a taxing district for the
33 1994 levy year, or for those taxing districts subject to this
34 Law in accordance with Section 18-213, except for those
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1 subject to paragraph (2) of subsection (e) of Section 18-213,
2 for the levy year in which the referendum making this Law
3 applicable to the taxing district is held, or for those
4 taxing districts subject to this Law in accordance with
5 paragraph (2) of subsection (e) of Section 18-213 for the
6 1996 levy year, constituting an extension for payment of
7 principal and interest on bonds issued by the taxing district
8 without referendum, but not including (i) bonds authorized by
9 Public Act 88-503 and issued under Section 20a of the Chicago
10 Park District Act for aquarium and museum projects; (ii)
11 bonds issued under Section 15 of the Local Government Debt
12 Reform Act; or (iii) refunding obligations issued to refund
13 or to continue to refund obligations initially issued
14 pursuant to referendum. The debt service extension base may
15 be established or increased as provided under Section 18-212.
16 "Special purpose extensions" include, but are not limited
17 to, extensions for levies made on an annual basis for
18 unemployment and workers' compensation, self-insurance,
19 contributions to pension plans, and extensions made pursuant
20 to Section 6-601 of the Illinois Highway Code for a road
21 district's permanent road fund whether levied annually or
22 not. The extension for a special service area is not
23 included in the aggregate extension.
24 "Aggregate extension base" means the taxing district's
25 last preceding aggregate extension as adjusted under Sections
26 18-215 through 18-230.
27 "Levy year" has the same meaning as "year" under Section
28 1-155.
29 "New property" means (i) the assessed value, after final
30 board of review or board of appeals action, of new
31 improvements or additions to existing improvements on any
32 parcel of real property that increase the assessed value of
33 that real property during the levy year multiplied by the
34 equalization factor issued by the Department under Section
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1 17-30 and (ii) the assessed value, after final board of
2 review or board of appeals action, of real property not
3 exempt from real estate taxation, which real property was
4 exempt from real estate taxation for any portion of the
5 immediately preceding levy year, multiplied by the
6 equalization factor issued by the Department under Section
7 17-30. In addition, the county clerk in a county containing
8 a population of 3,000,000 or more shall include in the 1997
9 recovered tax increment value for any school district, any
10 recovered tax increment value that was applicable to the 1995
11 tax year calculations.
12 "Qualified airport authority" means an airport authority
13 organized under the Airport Authorities Act and located in a
14 county bordering on the State of Wisconsin and having a
15 population in excess of 200,000 and not greater than 500,000.
16 "Recovered tax increment value" means, except as
17 otherwise provided in this paragraph, the amount of the
18 current year's equalized assessed value, in the first year
19 after a municipality terminates the designation of an area as
20 a redevelopment project area previously established under the
21 Tax Increment Allocation Development Act in the Illinois
22 Municipal Code, previously established under the Industrial
23 Jobs Recovery Law in the Illinois Municipal Code, or
24 previously established under the Economic Development Area
25 Tax Increment Allocation Act, of each taxable lot, block,
26 tract, or parcel of real property in the redevelopment
27 project area over and above the initial equalized assessed
28 value of each property in the redevelopment project area.
29 For the taxes which are extended for the 1997 levy year, the
30 recovered tax increment value for a non-home rule taxing
31 district that first became subject to this Law for the 1995
32 levy year because a majority of its 1994 equalized assessed
33 value was in an affected county or counties shall be
34 increased if a municipality terminated the designation of an
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1 area in 1993 as a redevelopment project area previously
2 established under the Tax Increment Allocation Development
3 Act in the Illinois Municipal Code, previously established
4 under the Industrial Jobs Recovery Law in the Illinois
5 Municipal Code, or previously established under the Economic
6 Development Area Tax Increment Allocation Act, by an amount
7 equal to the 1994 equalized assessed value of each taxable
8 lot, block, tract, or parcel of real property in the
9 redevelopment project area over and above the initial
10 equalized assessed value of each property in the
11 redevelopment project area. In the first year after a
12 municipality removes a taxable lot, block, tract, or parcel
13 of real property from a redevelopment project area
14 established under the Tax Increment Allocation Development
15 Act in the Illinois Municipal Code, the Industrial Jobs
16 Recovery Law in the Illinois Municipal Code, or the Economic
17 Development Area Tax Increment Allocation Act, "recovered tax
18 increment value" means the amount of the current year's
19 equalized assessed value of each taxable lot, block, tract,
20 or parcel of real property removed from the redevelopment
21 project area over and above the initial equalized assessed
22 value of that real property before removal from the
23 redevelopment project area.
24 Except as otherwise provided in this Section, "limiting
25 rate" means a fraction the numerator of which is the last
26 preceding aggregate extension base times an amount equal to
27 one plus the extension limitation defined in this Section and
28 the denominator of which is the current year's equalized
29 assessed value of all real property in the territory under
30 the jurisdiction of the taxing district during the prior levy
31 year. For those taxing districts that reduced their
32 aggregate extension for the last preceding levy year, the
33 highest aggregate extension in any of the last 3 preceding
34 levy years shall be used for the purpose of computing the
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1 limiting rate. The denominator shall not include new
2 property. The denominator shall not include the recovered
3 tax increment value.
4 (Source: P.A. 89-1, eff. 2-12-95; 89-138, eff. 7-14-95;
5 89-385, eff. 8-18-95; 89-436, eff. 1-1-96; 89-449, eff.
6 6-1-96; 89-510, eff. 7-11-96; 89-718, eff. 3-7-97; 90-485,
7 eff. 1-1-98; 90-511, eff. 8-22-97; 90-568, eff. 1-1-99;
8 90-616, eff. 7-10-98; 90-655, eff. 7-30-98; revised
9 10-28-98.)
10 Section 10. The Governmental Account Audit Act is
11 amended by changing Section 3 as follows:
12 (50 ILCS 310/3) (from Ch. 85, par. 703)
13 Sec. 3. Financial report. Any governmental unit
14 appropriating less than $200,000 for any fiscal year shall,
15 in lieu of complying with the requirements of Section 2 for
16 audits and audit reports, file with the Comptroller a
17 financial report containing information required by the
18 Comptroller. In addition, a governmental unit appropriating
19 less than $200,000 may file with the Comptroller any audit
20 reports which may have been prepared under any other law. Any
21 governmental unit appropriating $200,000 or more for any
22 fiscal year shall, in addition to complying with the
23 requirements of Section 2 for audits and audit reports, file
24 with the Comptroller the financial report required by this
25 Section. The financial report filed under this Section shall
26 include the information required by subsection (d) of Section
27 11-74.4-5 of the Tax Increment Allocation Redevelopment Act
28 in the Illinois Municipal Code. Such financial reports shall
29 be on forms so designed by the Comptroller as not to require
30 professional accounting services for its preparation.
31 (Source: P.A. 90-104, eff. 7-11-97.)
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1 Section 15. The Illinois Municipal Code is amended by
2 changing Sections 11-74.4-3, 11-74.4-4, 11-74.4-4.1,
3 11-74.4-5, 11-74.4-6, 11-74.4-7, 11-74.4-7.1, 11-74.4-8,
4 11-74.4-8a, and 11-74.4-9 and adding Section 11-74.4-4.2 as
5 follows:
6 (65 ILCS 5/11-74.4-3) (from Ch. 24, par. 11-74.4-3)
7 Sec. 11-74.4-3. Definitions. The following terms,
8 wherever used or referred to in this Division 74.4 shall have
9 the following respective meanings, unless in any case a
10 different meaning clearly appears from the context.
11 (a) For any redevelopment project area that has been
12 designated pursuant to this Section by an ordinance adopted
13 prior to the effective date of this amendatory Act of the
14 91st General Assembly, "blighted area" shall have the meaning
15 set forth in this Section prior to the effective date of this
16 amendatory Act of the 91st General Assembly.
17 On and after the effective date of this amendatory Act of
18 the 91st General Assembly, "blighted area" means any improved
19 or vacant area within the boundaries of a redevelopment
20 project area located within the territorial limits of the
21 municipality where:
22 (1) If improved, industrial, commercial, and
23 residential buildings or improvements are detrimental to
24 the public safety, health, or welfare because of a
25 combination of 5 or more of the following factors, each
26 of which is (i) present, with that presence documented,
27 to a meaningful extent so that a municipality may
28 reasonably find that the factor is clearly present within
29 the intent of the Act and (ii) reasonably distributed
30 throughout the redevelopment project area:
31 (A) Dilapidation. An advanced state of
32 disrepair or neglect of necessary repairs to the
33 primary structural components of buildings or
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1 improvements in such a combination that a documented
2 building condition analysis determines that major
3 repair is required or the defects are so serious and
4 so extensive that the buildings must be removed.
5 (B) Obsolescence. The condition or process of
6 falling into disuse. Structures have become
7 ill-suited for the original use.
8 (C) Deterioration. With respect to buildings,
9 defects including, but not limited to, major defects
10 in the secondary building components such as doors,
11 windows, porches, gutters and downspouts, and
12 fascia. With respect to surface improvements, that
13 the condition of roadways, alleys, curbs, gutters,
14 sidewalks, off-street parking, and surface storage
15 areas evidence deterioration, including, but not
16 limited to, surface cracking, crumbling, potholes,
17 depressions, loose paving material, and weeds
18 protruding through paved surfaces.
19 (D) Presence of structures below minimum code
20 standards. All structures that do not meet the
21 standards of zoning, subdivision, building, fire,
22 and other governmental codes applicable to property,
23 but not including housing and property maintenance
24 codes.
25 (E) Illegal use of individual structures. The
26 use of structures in violation of applicable
27 federal, State, or local laws, exclusive of those
28 applicable to the presence of structures below
29 minimum code standards.
30 (F) Excessive vacancies. The presence of
31 buildings that are unoccupied or under-utilized and
32 that represent an adverse influence on the area
33 because of the frequency, extent, or duration of the
34 vacancies.
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1 (G) Lack of ventilation, light, or sanitary
2 facilities. The absence of adequate ventilation for
3 light or air circulation in spaces or rooms without
4 windows, or that require the removal of dust, odor,
5 gas, smoke, or other noxious airborne materials.
6 Inadequate natural light and ventilation means the
7 absence of skylights or windows for interior spaces
8 or rooms and improper window sizes and amounts by
9 room area to window area ratios. Inadequate
10 sanitary facilities refers to the absence or
11 inadequacy of garbage storage and enclosure,
12 bathroom facilities, hot water and kitchens, and
13 structural inadequacies preventing ingress and
14 egress to and from all rooms and units within a
15 building.
16 (H) Inadequate utilities. Underground and
17 overhead utilities such as storm sewers and storm
18 drainage, water lines, and gas, telephone, and
19 electrical services that are shown to be inadequate.
20 Inadequate utilities are those that are: (i) of
21 insufficient capacity to serve the uses in the
22 redevelopment project area, (ii) deteriorated,
23 antiquated, obsolete, or in disrepair, or (iii)
24 lacking within the redevelopment project area.
25 (I) Excessive land coverage and overcrowding
26 of structures and community facilities. The
27 over-intensive use of property and the crowding of
28 buildings and accessory facilities onto a site.
29 Examples of problem conditions warranting the
30 designation of an area as one exhibiting excessive
31 land coverage are: (i) the presence of buildings
32 either improperly situated on parcels or located on
33 parcels of inadequate size and shape in relation to
34 present-day standards of development for health and
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1 safety and (ii) the presence of multiple buildings
2 on a single parcel. For there to be a finding of
3 excessive land coverage, these parcels must exhibit
4 one or more of the following conditions:
5 insufficient provision for light and air within or
6 around buildings, increased threat of spread of fire
7 due to the close proximity of buildings, lack of
8 adequate or proper access to a public right-of-way,
9 lack of reasonably required off-street parking, or
10 inadequate provision for loading and service.
11 (J) Deleterious land use or layout. The
12 existence of incompatible land-use relationships,
13 buildings occupied by inappropriate mixed-uses, or
14 uses considered to be noxious, offensive, or
15 unsuitable for the surrounding area.
16 (K) Environmental clean-up. The proposed
17 redevelopment project area has incurred Illinois
18 Environmental Protection Agency or United States
19 Environmental Protection Agency remediation costs
20 for, or a study conducted by an independent
21 consultant recognized as having expertise in
22 environmental remediation has determined a need for,
23 the clean-up of hazardous waste, hazardous
24 substances, or underground storage tanks required by
25 State or federal law, provided that the remediation
26 costs constitute a material impediment to the
27 development or redevelopment of the redevelopment
28 project area.
29 (L) Lack of community planning. The proposed
30 redevelopment project area was developed prior to or
31 without the benefit or guidance of a community plan.
32 This means that the development occurred prior to
33 the adoption by the municipality of a comprehensive
34 or other community plan or that the plan was not
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1 followed at the time of the area's development.
2 This factor must be documented by evidence of
3 adverse or incompatible land-use relationships,
4 inadequate street layout, improper subdivision,
5 parcels of inadequate shape and size to meet
6 contemporary development standards, or other
7 evidence demonstrating an absence of effective
8 community planning.
9 (M) The total equalized assessed value of the
10 proposed redevelopment project area has declined for
11 3 of the last 5 calendar years for which information
12 is available or is increasing at an annual rate that
13 is less than the balance of the municipality for 3
14 of the last 5 calendar years for which information
15 is available or is increasing at an annual rate that
16 is less than the Consumer Price Index for All Urban
17 Consumers published by the United States Department
18 of Labor or successor agency for 3 of the last 5
19 calendar years for which information is available.
20 (2) If vacant, the sound growth of the
21 redevelopment project area is impaired by a combination
22 of 2 or more of the following factors, each of which is
23 (i) present, with that presence documented, to a
24 meaningful extent so that a municipality may reasonably
25 find that the factor is clearly present within the intent
26 of the Act and (ii) reasonably distributed throughout the
27 redevelopment project area:
28 (A) Obsolete platting of vacant land that
29 results in parcels of limited or narrow size or
30 configurations of parcels of irregular size or shape
31 that would be difficult to develop on a planned
32 basis and in a manner compatible with contemporary
33 standards and requirements, or platting that failed
34 to create rights-of-ways for streets or alleys or
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1 that created inadequate right-of-way widths for
2 streets, alleys, or other public rights-of-way or
3 that omitted easements for public utilities.
4 (B) Diversity of ownership of parcels of
5 vacant land sufficient in number to retard or impede
6 the ability to assemble the land for development.
7 (C) Tax and special assessment delinquencies
8 for an unreasonable period of time.
9 (D) Deterioration of structures or site
10 improvements in neighboring areas adjacent to the
11 vacant land.
12 (E) The area has incurred Illinois
13 Environmental Protection Agency or United States
14 Environmental Protection Agency remediation costs
15 for, or a study conducted by an independent
16 consultant recognized as having expertise in
17 environmental remediation has determined a need for,
18 the clean-up of hazardous waste, hazardous
19 substances, or underground storage tanks required by
20 State or federal law, provided that the remediation
21 costs constitute a material impediment to the
22 development or redevelopment of the redevelopment
23 project area.
24 (F) The total equalized assessed value of the
25 proposed redevelopment project area has declined for
26 3 of the last 5 calendar years for which information
27 is available or is increasing at an annual rate that
28 is less than the balance of the municipality for 3
29 of the last 5 calendar years for which information
30 is available or is increasing at an annual rate that
31 is less than the Consumer Price Index for All Urban
32 Consumers published by the United States Department
33 of Labor or successor agency for 3 of the last 5
34 calendar years for which information is available.
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1 (3) If vacant, the sound growth of the
2 redevelopment project area is impaired by one of the
3 following factors that (i) is present, with that presence
4 documented, to a meaningful extent so that a municipality
5 may reasonably find that the factor is clearly present
6 within the intent of the Act and (ii) is reasonably
7 distributed throughout the redevelopment project area:
8 (A) The area consists of one or more unused
9 quarries, mines, or strip mine ponds.
10 (B) The area consists of unused railyards,
11 rail tracks, or railroad rights-of-way.
12 (C) The area, prior to its designation, is
13 subject to chronic flooding that adversely impacts
14 on real property in the area as certified by a
15 registered professional engineer or appropriate
16 regulatory agency.
17 (D) The area consists of an unused or illegal
18 disposal site containing earth, stone, building
19 debris, or similar materials that were removed from
20 construction, demolition, excavation, or dredge
21 sites.
22 (E) Prior to the effective date of this
23 amendatory Act of the 91st General Assembly, the
24 area is not less than 50 nor more than 100 acres and
25 75% of which is vacant (notwithstanding that the
26 area has been used for commercial agricultural
27 purposes within 5 years prior to the designation of
28 the redevelopment project area), and the area meets
29 at least one of the factors itemized in paragraph
30 (1) of this subsection, the area has been designated
31 as a town or village center by ordinance or
32 comprehensive plan adopted prior to January 1, 1982,
33 and the area has not been developed for that
34 designated purpose.
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1 (F) The area qualified as a blighted improved
2 area immediately prior to becoming vacant, unless
3 there has been substantial private investment in the
4 immediately surrounding area., if improved,
5 industrial, commercial and residential buildings or
6 improvements, because of a combination of 5 or more
7 of the following factors: age; dilapidation;
8 obsolescence; deterioration; illegal use of
9 individual structures; presence of structures below
10 minimum code standards; excessive vacancies;
11 overcrowding of structures and community facilities;
12 lack of ventilation, light or sanitary facilities;
13 inadequate utilities; excessive land coverage;
14 deleterious land use or layout; depreciation of
15 physical maintenance; lack of community planning, is
16 detrimental to the public safety, health, morals or
17 welfare, or if vacant, the sound growth of the
18 taxing districts is impaired by, (1) a combination
19 of 2 or more of the following factors: obsolete
20 platting of the vacant land; diversity of ownership
21 of such land; tax and special assessment
22 delinquencies on such land; flooding on all or part
23 of such vacant land; deterioration of structures or
24 site improvements in neighboring areas adjacent to
25 the vacant land, or (2) the area immediately prior
26 to becoming vacant qualified as a blighted improved
27 area, or (3) the area consists of an unused quarry
28 or unused quarries, or (4) the area consists of
29 unused railyards, rail tracks or railroad
30 rights-of-way, or (5) the area, prior to its
31 designation, is subject to chronic flooding which
32 adversely impacts on real property in the area and
33 such flooding is substantially caused by one or more
34 improvements in or in proximity to the area which
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1 improvements have been in existence for at least 5
2 years, or (6) the area consists of an unused
3 disposal site, containing earth, stone, building
4 debris or similar material, which were removed from
5 construction, demolition, excavation or dredge
6 sites, or (7) the area is not less than 50 nor more
7 than 100 acres and 75% of which is vacant,
8 notwithstanding the fact that such area has been
9 used for commercial agricultural purposes within 5
10 years prior to the designation of the redevelopment
11 project area, and which area meets at least one of
12 the factors itemized in provision (1) of this
13 subsection (a), and the area has been designated as
14 a town or village center by ordinance or
15 comprehensive plan adopted prior to January 1, 1982,
16 and the area has not been developed for that
17 designated purpose.
18 (b) For any redevelopment project area that has been
19 designated pursuant to this Section by an ordinance adopted
20 prior to the effective date of this amendatory Act of the
21 91st General Assembly, "conservation area" shall have the
22 meaning set forth in this Section prior to the effective date
23 of this amendatory Act of the 91st General Assembly.
24 On and after the effective date of this amendatory Act of
25 the 91st General Assembly, "conservation area" means any
26 improved area within the boundaries of a redevelopment
27 project area located within the territorial limits of the
28 municipality in which 50% or more of the structures in the
29 area have an age of 35 years or more. Such an area is not
30 yet a blighted area but because of a combination of 3 or more
31 of the following factors dilapidation; obsolescence;
32 deterioration; illegal use of individual structures; presence
33 of structures below minimum code standards; abandonment;
34 excessive vacancies; overcrowding of structures and community
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1 facilities; lack of ventilation, light or sanitary
2 facilities; inadequate utilities; excessive land coverage;
3 deleterious land use or layout; depreciation of physical
4 maintenance; lack of community planning, is detrimental to
5 the public safety, health, morals or welfare and such an area
6 may become a blighted area:.
7 (1) Dilapidation. An advanced state of disrepair
8 or neglect of necessary repairs to the primary structural
9 components of buildings or improvements in such a
10 combination that a documented building condition analysis
11 determines that major repair is required or the defects
12 are so serious and so extensive that the buildings must
13 be removed.
14 (2) Obsolescence. The condition or process of
15 falling into disuse. Structures have become ill-suited
16 for the original use.
17 (3) Deterioration. With respect to buildings,
18 defects including, but not limited to, major defects in
19 the secondary building components such as doors, windows,
20 porches, gutters and downspouts, and fascia. With
21 respect to surface improvements, that the condition of
22 roadways, alleys, curbs, gutters, sidewalks, off-street
23 parking, and surface storage areas evidence
24 deterioration, including, but not limited to, surface
25 cracking, crumbling, potholes, depressions, loose paving
26 material, and weeds protruding through paved surfaces.
27 (4) Presence of structures below minimum code
28 standards. All structures that do not meet the standards
29 of zoning, subdivision, building, fire, and other
30 governmental codes applicable to property, but not
31 including housing and property maintenance codes.
32 (5) Illegal use of individual structures. The use
33 of structures in violation of applicable federal, State,
34 or local laws, exclusive of those applicable to the
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1 presence of structures below minimum code standards.
2 (6) Excessive vacancies. The presence of buildings
3 that are unoccupied or under-utilized and that represent
4 an adverse influence on the area because of the
5 frequency, extent, or duration of the vacancies.
6 (7) Lack of ventilation, light, or sanitary
7 facilities. The absence of adequate ventilation for
8 light or air circulation in spaces or rooms without
9 windows, or that require the removal of dust, odor, gas,
10 smoke, or other noxious airborne materials. Inadequate
11 natural light and ventilation means the absence or
12 inadequacy of skylights or windows for interior spaces or
13 rooms and improper window sizes and amounts by room area
14 to window area ratios. Inadequate sanitary facilities
15 refers to the absence or inadequacy of garbage storage
16 and enclosure, bathroom facilities, hot water and
17 kitchens, and structural inadequacies preventing ingress
18 and egress to and from all rooms and units within a
19 building.
20 (8) Inadequate utilities. Underground and overhead
21 utilities such as storm sewers and storm drainage, water
22 lines, and gas, telephone, and electrical services that
23 are shown to be inadequate. Inadequate utilities are
24 those that are: (i) of insufficient capacity to serve the
25 uses in the redevelopment project area, (ii)
26 deteriorated, antiquated, obsolete, or in disrepair, or
27 (iii) lacking within the redevelopment project area.
28 (9) Excessive land coverage and overcrowding of
29 structures and community facilities. The over-intensive
30 use of property and the crowding of buildings and
31 accessory facilities onto a site. Examples of problem
32 conditions warranting the designation of an area as one
33 exhibiting excessive land coverage are: the presence of
34 buildings either improperly situated on parcels or
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1 located on parcels of inadequate size and shape in
2 relation to present-day standards of development for
3 health and safety and the presence of multiple buildings
4 on a single parcel. For there to be a finding of
5 excessive land coverage, these parcels must exhibit one
6 or more of the following conditions: insufficient
7 provision for light and air within or around buildings,
8 increased threat of spread of fire due to the close
9 proximity of buildings, lack of adequate or proper access
10 to a public right-of-way, lack of reasonably required
11 off-street parking, or inadequate provision for loading
12 and service.
13 (10) Deleterious land use or layout. The existence
14 of incompatible land-use relationships, buildings
15 occupied by inappropriate mixed-uses, or uses considered
16 to be noxious, offensive, or unsuitable for the
17 surrounding area.
18 (11) Lack of community planning. The proposed
19 redevelopment project area was developed prior to or
20 without the benefit or guidance of a community plan. This
21 means that the development occurred prior to the adoption
22 by the municipality of a comprehensive or other community
23 plan or that the plan was not followed at the time of the
24 area's development. This factor must be documented by
25 evidence of adverse or incompatible land-use
26 relationships, inadequate street layout, improper
27 subdivision, parcels of inadequate shape and size to meet
28 contemporary development standards, or other evidence
29 demonstrating an absence of effective community planning.
30
31 (12) The area has incurred Illinois Environmental
32 Protection Agency or United States Environmental
33 Protection Agency remediation costs for, or a study
34 conducted by an independent consultant recognized as
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1 having expertise in environmental remediation has
2 determined a need for, the clean-up of hazardous waste,
3 hazardous substances, or underground storage tanks
4 required by State or federal law, provided that the
5 remediation costs constitute a material impediment to the
6 development or redevelopment of the redevelopment project
7 area.
8 (13) The total equalized assessed value of the
9 proposed redevelopment project area has declined for 3 of
10 the last 5 calendar years for which information is
11 available or is increasing at an annual rate that is less
12 than the balance of the municipality for 3 of the last 5
13 calendar years for which information is available or is
14 increasing at an annual rate that is less than the
15 Consumer Price Index for All Urban Consumers published by
16 the United States Department of Labor or successor agency
17 for 3 of the last 5 calendar years for which information
18 is available.
19 (c) "Industrial park" means an area in a blighted or
20 conservation area suitable for use by any manufacturing,
21 industrial, research or transportation enterprise, of
22 facilities to include but not be limited to factories, mills,
23 processing plants, assembly plants, packing plants,
24 fabricating plants, industrial distribution centers,
25 warehouses, repair overhaul or service facilities, freight
26 terminals, research facilities, test facilities or railroad
27 facilities.
28 (d) "Industrial park conservation area" means an area
29 within the boundaries of a redevelopment project area located
30 within the territorial limits of a municipality that is a
31 labor surplus municipality or within 1 1/2 miles of the
32 territorial limits of a municipality that is a labor surplus
33 municipality if the area is annexed to the municipality;
34 which area is zoned as industrial no later than at the time
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1 the municipality by ordinance designates the redevelopment
2 project area, and which area includes both vacant land
3 suitable for use as an industrial park and a blighted area or
4 conservation area contiguous to such vacant land.
5 (e) "Labor surplus municipality" means a municipality in
6 which, at any time during the 6 months before the
7 municipality by ordinance designates an industrial park
8 conservation area, the unemployment rate was over 6% and was
9 also 100% or more of the national average unemployment rate
10 for that same time as published in the United States
11 Department of Labor Bureau of Labor Statistics publication
12 entitled "The Employment Situation" or its successor
13 publication. For the purpose of this subsection, if
14 unemployment rate statistics for the municipality are not
15 available, the unemployment rate in the municipality shall be
16 deemed to be the same as the unemployment rate in the
17 principal county in which the municipality is located.
18 (f) "Municipality" shall mean a city, village or
19 incorporated town.
20 (g) "Initial Sales Tax Amounts" means the amount of
21 taxes paid under the Retailers' Occupation Tax Act, Use Tax
22 Act, Service Use Tax Act, the Service Occupation Tax Act, the
23 Municipal Retailers' Occupation Tax Act, and the Municipal
24 Service Occupation Tax Act by retailers and servicemen on
25 transactions at places located in a State Sales Tax Boundary
26 during the calendar year 1985.
27 (g-1) "Revised Initial Sales Tax Amounts" means the
28 amount of taxes paid under the Retailers' Occupation Tax Act,
29 Use Tax Act, Service Use Tax Act, the Service Occupation Tax
30 Act, the Municipal Retailers' Occupation Tax Act, and the
31 Municipal Service Occupation Tax Act by retailers and
32 servicemen on transactions at places located within the State
33 Sales Tax Boundary revised pursuant to Section 11-74.4-8a(9)
34 of this Act.
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1 (h) "Municipal Sales Tax Increment" means an amount
2 equal to the increase in the aggregate amount of taxes paid
3 to a municipality from the Local Government Tax Fund arising
4 from sales by retailers and servicemen within the
5 redevelopment project area or State Sales Tax Boundary, as
6 the case may be, for as long as the redevelopment project
7 area or State Sales Tax Boundary, as the case may be, exist
8 over and above the aggregate amount of taxes as certified by
9 the Illinois Department of Revenue and paid under the
10 Municipal Retailers' Occupation Tax Act and the Municipal
11 Service Occupation Tax Act by retailers and servicemen, on
12 transactions at places of business located in the
13 redevelopment project area or State Sales Tax Boundary, as
14 the case may be, during the base year which shall be the
15 calendar year immediately prior to the year in which the
16 municipality adopted tax increment allocation financing. For
17 purposes of computing the aggregate amount of such taxes for
18 base years occurring prior to 1985, the Department of Revenue
19 shall determine the Initial Sales Tax Amounts for such taxes
20 and deduct therefrom an amount equal to 4% of the aggregate
21 amount of taxes per year for each year the base year is prior
22 to 1985, but not to exceed a total deduction of 12%. The
23 amount so determined shall be known as the "Adjusted Initial
24 Sales Tax Amounts". For purposes of determining the
25 Municipal Sales Tax Increment, the Department of Revenue
26 shall for each period subtract from the amount paid to the
27 municipality from the Local Government Tax Fund arising from
28 sales by retailers and servicemen on transactions located in
29 the redevelopment project area or the State Sales Tax
30 Boundary, as the case may be, the certified Initial Sales Tax
31 Amounts, the Adjusted Initial Sales Tax Amounts or the
32 Revised Initial Sales Tax Amounts for the Municipal
33 Retailers' Occupation Tax Act and the Municipal Service
34 Occupation Tax Act. For the State Fiscal Year 1989, this
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1 calculation shall be made by utilizing the calendar year 1987
2 to determine the tax amounts received. For the State Fiscal
3 Year 1990, this calculation shall be made by utilizing the
4 period from January 1, 1988, until September 30, 1988, to
5 determine the tax amounts received from retailers and
6 servicemen pursuant to the Municipal Retailers' Occupation
7 Tax and the Municipal Service Occupation Tax Act, which shall
8 have deducted therefrom nine-twelfths of the certified
9 Initial Sales Tax Amounts, the Adjusted Initial Sales Tax
10 Amounts or the Revised Initial Sales Tax Amounts as
11 appropriate. For the State Fiscal Year 1991, this calculation
12 shall be made by utilizing the period from October 1, 1988,
13 to June 30, 1989, to determine the tax amounts received from
14 retailers and servicemen pursuant to the Municipal Retailers'
15 Occupation Tax and the Municipal Service Occupation Tax Act
16 which shall have deducted therefrom nine-twelfths of the
17 certified Initial Sales Tax Amounts, Adjusted Initial Sales
18 Tax Amounts or the Revised Initial Sales Tax Amounts as
19 appropriate. For every State Fiscal Year thereafter, the
20 applicable period shall be the 12 months beginning July 1 and
21 ending June 30 to determine the tax amounts received which
22 shall have deducted therefrom the certified Initial Sales Tax
23 Amounts, the Adjusted Initial Sales Tax Amounts or the
24 Revised Initial Sales Tax Amounts, as the case may be.
25 (i) "Net State Sales Tax Increment" means the sum of the
26 following: (a) 80% of the first $100,000 of State Sales Tax
27 Increment annually generated within a State Sales Tax
28 Boundary; (b) 60% of the amount in excess of $100,000 but not
29 exceeding $500,000 of State Sales Tax Increment annually
30 generated within a State Sales Tax Boundary; and (c) 40% of
31 all amounts in excess of $500,000 of State Sales Tax
32 Increment annually generated within a State Sales Tax
33 Boundary. If, however, a municipality established a tax
34 increment financing district in a county with a population in
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1 excess of 3,000,000 before January 1, 1986, and the
2 municipality entered into a contract or issued bonds after
3 January 1, 1986, but before December 31, 1986, to finance
4 redevelopment project costs within a State Sales Tax
5 Boundary, then the Net State Sales Tax Increment means, for
6 the fiscal years beginning July 1, 1990, and July 1, 1991,
7 100% of the State Sales Tax Increment annually generated
8 within a State Sales Tax Boundary; and notwithstanding any
9 other provision of this Act, for those fiscal years the
10 Department of Revenue shall distribute to those
11 municipalities 100% of their Net State Sales Tax Increment
12 before any distribution to any other municipality and
13 regardless of whether or not those other municipalities will
14 receive 100% of their Net State Sales Tax Increment. For
15 Fiscal Year 1999, and every year thereafter until the year
16 2007, for any municipality that has not entered into a
17 contract or has not issued bonds prior to June 1, 1988 to
18 finance redevelopment project costs within a State Sales Tax
19 Boundary, the Net State Sales Tax Increment shall be
20 calculated as follows: By multiplying the Net State Sales Tax
21 Increment by 90% in the State Fiscal Year 1999; 80% in the
22 State Fiscal Year 2000; 70% in the State Fiscal Year 2001;
23 60% in the State Fiscal Year 2002; 50% in the State Fiscal
24 Year 2003; 40% in the State Fiscal Year 2004; 30% in the
25 State Fiscal Year 2005; 20% in the State Fiscal Year 2006;
26 and 10% in the State Fiscal Year 2007. No payment shall be
27 made for State Fiscal Year 2008 and thereafter.
28 Municipalities that issued bonds in connection with a
29 redevelopment project in a redevelopment project area within
30 the State Sales Tax Boundary prior to July 29, 1991, or that
31 entered into contracts in connection with a redevelopment
32 project in a redevelopment project area before June 1, 1988,
33 shall continue to receive their proportional share of the
34 Illinois Tax Increment Fund distribution until the date on
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1 which the redevelopment project is completed or terminated,
2 or the date on which the bonds are retired or the contracts
3 are completed, whichever date occurs first. Refunding of any
4 bonds issued prior to July 29, 1991, shall not alter the Net
5 State Sales Tax Increment.
6 (j) "State Utility Tax Increment Amount" means an amount
7 equal to the aggregate increase in State electric and gas tax
8 charges imposed on owners and tenants, other than residential
9 customers, of properties located within the redevelopment
10 project area under Section 9-222 of the Public Utilities Act,
11 over and above the aggregate of such charges as certified by
12 the Department of Revenue and paid by owners and tenants,
13 other than residential customers, of properties within the
14 redevelopment project area during the base year, which shall
15 be the calendar year immediately prior to the year of the
16 adoption of the ordinance authorizing tax increment
17 allocation financing.
18 (k) "Net State Utility Tax Increment" means the sum of
19 the following: (a) 80% of the first $100,000 of State Utility
20 Tax Increment annually generated by a redevelopment project
21 area; (b) 60% of the amount in excess of $100,000 but not
22 exceeding $500,000 of the State Utility Tax Increment
23 annually generated by a redevelopment project area; and (c)
24 40% of all amounts in excess of $500,000 of State Utility Tax
25 Increment annually generated by a redevelopment project area.
26 For the State Fiscal Year 1999, and every year thereafter
27 until the year 2007, for any municipality that has not
28 entered into a contract or has not issued bonds prior to June
29 1, 1988 to finance redevelopment project costs within a
30 redevelopment project area, the Net State Utility Tax
31 Increment shall be calculated as follows: By multiplying the
32 Net State Utility Tax Increment by 90% in the State Fiscal
33 Year 1999; 80% in the State Fiscal Year 2000; 70% in the
34 State Fiscal Year 2001; 60% in the State Fiscal Year 2002;
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1 50% in the State Fiscal Year 2003; 40% in the State Fiscal
2 Year 2004; 30% in the State Fiscal Year 2005; 20% in the
3 State Fiscal Year 2006; and 10% in the State Fiscal Year
4 2007. No payment shall be made for the State Fiscal Year 2008
5 and thereafter.
6 Municipalities that issue bonds in connection with the
7 redevelopment project during the period from June 1, 1988
8 until 3 years after the effective date of this Amendatory Act
9 of 1988 shall receive the Net State Utility Tax Increment,
10 subject to appropriation, for 15 State Fiscal Years after the
11 issuance of such bonds. For the 16th through the 20th State
12 Fiscal Years after issuance of the bonds, the Net State
13 Utility Tax Increment shall be calculated as follows: By
14 multiplying the Net State Utility Tax Increment by 90% in
15 year 16; 80% in year 17; 70% in year 18; 60% in year 19; and
16 50% in year 20. Refunding of any bonds issued prior to June
17 1, 1988, shall not alter the revised Net State Utility Tax
18 Increment payments set forth above.
19 (l) "Obligations" mean bonds, loans, debentures, notes,
20 special certificates or other evidence of indebtedness issued
21 by the municipality to carry out a redevelopment project or
22 to refund outstanding obligations.
23 (m) "Payment in lieu of taxes" means those estimated tax
24 revenues from real property in a redevelopment project area
25 derived from real property that has been acquired by a
26 municipality which according to the redevelopment project or
27 plan is to be used for a private use which taxing districts
28 would have received had a municipality not acquired the real
29 property and adopted tax increment allocation financing and
30 which would result from levies made after the time of the
31 adoption of tax increment allocation financing to the time
32 the current equalized value of real property in the
33 redevelopment project area exceeds the total initial
34 equalized value of real property in said area.
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1 (n) "Redevelopment plan" means the comprehensive program
2 of the municipality for development or redevelopment intended
3 by the payment of redevelopment project costs to reduce or
4 eliminate those conditions the existence of which qualified
5 the redevelopment project area as a "blighted area" or
6 "conservation area" or combination thereof or "industrial
7 park conservation area," and thereby to enhance the tax bases
8 of the taxing districts which extend into the redevelopment
9 project area. On and after the effective date of this
10 amendatory Act of the 91st General Assembly, no redevelopment
11 plan may be approved or amended that includes the development
12 of vacant land (i) with a golf course and related clubhouse
13 and other facilities or (ii) designated by federal, State,
14 county, or municipal government as public land for outdoor
15 recreational activities or for nature preserves and used for
16 that purpose within 5 years prior to the adoption of the
17 redevelopment plan. For the purpose of this subsection,
18 "recreational activities" is limited to mean camping and
19 hunting. Each redevelopment plan shall set forth in writing
20 the program to be undertaken to accomplish the objectives
21 and shall include but not be limited to:
22 (A) an itemized list of estimated redevelopment
23 project costs;
24 (B) evidence indicating that the redevelopment
25 project area on the whole has not been subject to growth
26 and development through investment by private enterprise;
27 (C) an assessment of any financial impact of the
28 redevelopment project area on or any increased demand for
29 services from any taxing district affected by the plan
30 and any program to address such financial impact or
31 increased demand;
32 (D) the sources of funds to pay costs;
33 (E) the nature and term of the obligations to be
34 issued;
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1 (F) the most recent equalized assessed valuation of
2 the redevelopment project area;
3 (G) an estimate as to the equalized assessed
4 valuation after redevelopment and the general land uses
5 to apply in the redevelopment project area;
6 (H) a commitment to fair employment practices and
7 an affirmative action plan;
8 (I) if it concerns an industrial park conservation
9 area, the plan shall also include a general description
10 of any proposed developer, user and tenant of any
11 property, a description of the type, structure and
12 general character of the facilities to be developed, a
13 description of the type, class and number of new
14 employees to be employed in the operation of the
15 facilities to be developed; and
16 (J) if property is to be annexed to the
17 municipality, the plan shall include the terms of the
18 annexation agreement.
19 The provisions of items (B) and (C) of this subsection
20 (n) shall not apply to a municipality that before March 14,
21 1994 (the effective date of Public Act 88-537) had fixed,
22 either by its corporate authorities or by a commission
23 designated under subsection (k) of Section 11-74.4-4, a time
24 and place for a public hearing as required by subsection (a)
25 of Section 11-74.4-5. No redevelopment plan shall be adopted
26 unless a municipality complies with all of the following
27 requirements:
28 (1) The municipality finds that the redevelopment
29 project area on the whole has not been subject to growth
30 and development through investment by private enterprise
31 and would not reasonably be anticipated to be developed
32 without the adoption of the redevelopment plan.
33 (2) The municipality finds that the redevelopment
34 plan and project conform to the comprehensive plan for
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1 the development of the municipality as a whole, or, for
2 municipalities with a population of 100,000 or more,
3 regardless of when the redevelopment plan and project was
4 adopted, the redevelopment plan and project either: (i)
5 conforms to the strategic economic development or
6 redevelopment plan issued by the designated planning
7 authority of the municipality, or (ii) includes land uses
8 that have been approved by the planning commission of the
9 municipality.
10 (3) The redevelopment plan establishes the
11 estimated dates of completion of the redevelopment
12 project and retirement of obligations issued to finance
13 redevelopment project costs. Those dates shall not be
14 later than December 31 of the year in which the payment
15 to the municipal treasurer as provided in subsection (b)
16 of Section 11-74.4-8 of this Act is to be made with
17 respect to ad valorem taxes levied in the twenty-third
18 calendar year after the year in which the ordinance
19 approving the redevelopment project area is adopted more
20 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 later
23 than December 31 of the year in which the payment to the
24 municipal treasurer as provided in subsection (b) of
25 Section 11-74.4-8 of this Act is to be made with respect
26 to ad valorem taxes levied in the thirty-fifth calendar
27 year after the year in which the ordinance approving the
28 redevelopment project area is adopted not more than 35
29 years if the ordinance was adopted before January 15,
30 1981, or if the ordinance was adopted in April 1984 or
31 July 1985, or if the ordinance was adopted in December
32 1987 and the redevelopment project is located within one
33 mile of Midway Airport, or if the municipality is subject
34 to the Local Government Financial Planning and
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1 Supervision Act, or if the ordinance was adopted on
2 December 31, 1986 in a municipality with a population in
3 1990 of less than 3,600 that is located in a county with
4 a population in 1990 of less than 34,000 and for which at
5 least $250,000 of tax increment bonds were authorized on
6 June 17, 1997. However, for redevelopment project areas
7 for which bonds were issued before July 29, 1991, or for
8 which contracts were entered into before June 1, 1988, in
9 connection with a redevelopment project in the area
10 within the State Sales Tax Boundary, the estimated dates
11 of completion of the redevelopment project and retirement
12 of obligations to finance redevelopment project costs may
13 be extended by municipal ordinance to December 31, 2013.
14 The extension allowed by this amendatory Act of 1993
15 shall not apply to real property tax increment allocation
16 financing under Section 11-74.4-8. A municipality may by
17 municipal ordinance amend an existing redevelopment plan
18 to conform to this paragraph (3) as amended by this
19 amendatory Act of the 91st General Assembly, which
20 municipal ordinance may be adopted without further
21 hearing or notice and without complying with the
22 procedures provided in this Act pertaining to an
23 amendment to or the initial approval of a redevelopment
24 plan and project and designation of a redevelopment
25 project area.
26 Those dates, for purposes of real property tax
27 increment allocation financing pursuant to Section
28 11-74.4-8 only, shall be not more than 35 years for
29 redevelopment project areas that were adopted on or after
30 December 16, 1986 and for which at least $8 million worth
31 of municipal bonds were authorized on or after December
32 19, 1989 but before January 1, 1990; provided that the
33 municipality elects to extend the life of the
34 redevelopment project area to 35 years by the adoption of
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1 an ordinance after at least 14 but not more than 30 days'
2 written notice to the taxing bodies, that would otherwise
3 constitute the joint review board for the redevelopment
4 project area, before the adoption of the ordinance.
5 Those dates, for purposes of real property tax
6 increment allocation financing pursuant to Section
7 11-74.4-8 only, shall be not more than 35 years for
8 redevelopment project areas that were established on or
9 after December 1, 1981 but before January 1, 1982 and for
10 which at least $1,500,000 worth of tax increment revenue
11 bonds were authorized on or after September 30, 1990 but
12 before July 1, 1991; provided that the municipality
13 elects to extend the life of the redevelopment project
14 area to 35 years by the adoption of an ordinance after at
15 least 14 but not more than 30 days' written notice to the
16 taxing bodies, that would otherwise constitute the joint
17 review board for the redevelopment project area, before
18 the adoption of the ordinance.
19 (3.5) (4) The municipality finds, in the case of an
20 industrial park conservation area, also that the
21 municipality is a labor surplus municipality and that the
22 implementation of the redevelopment plan will reduce
23 unemployment, create new jobs and by the provision of new
24 facilities enhance the tax base of the taxing districts
25 that extend into the redevelopment project area.
26 (4) (5) If any incremental revenues are being
27 utilized under Section 8(a)(1) or 8(a)(2) of this Act in
28 redevelopment project areas approved by ordinance after
29 January 1, 1986, the municipality finds: (a) that the
30 redevelopment project area would not reasonably be
31 developed without the use of such incremental revenues,
32 and (b) that such incremental revenues will be
33 exclusively utilized for the development of the
34 redevelopment project area.
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1 (5) On and after the effective date of this
2 amendatory Act of the 91st General Assembly, if the
3 redevelopment plan will not result in displacement of
4 residents from inhabited units, and the municipality
5 certifies in the plan that displacement will not result
6 from the plan, a housing impact study need not be
7 performed. If, however, the redevelopment plan would
8 result in the displacement of residents from 10 or more
9 inhabited residential units, or if the redevelopment
10 project area contains 75 or more inhabited residential
11 units and no certification is made, then the municipality
12 shall prepare, as part of the separate feasibility report
13 required by subsection (a) of Section 11-74.4-5, a
14 housing impact study.
15 Part I of the housing impact study shall include (i)
16 data as to whether the residential units are single
17 family or multi-family units, (ii) the number and type of
18 rooms within the units, if that information is available,
19 (iii) whether the units are inhabited or uninhabited, as
20 determined not less than 45 days before the date that the
21 ordinance or resolution required by subsection (a) of
22 Section 11-74.4-5 is passed, and (iv) data as to the
23 racial and ethnic composition of the residents in the
24 inhabited residential units. The data requirement as to
25 the racial and ethnic composition of the residents in the
26 inhabited residential units shall be deemed to be fully
27 satisfied by data from the most recent federal census.
28 Part II of the housing impact study shall identify
29 the inhabited residential units in the proposed
30 redevelopment project area that are to be or may be
31 removed. If inhabited residential units are to be
32 removed, then the housing impact study shall identify (i)
33 the number and location of those units that will or may
34 be removed, (ii) the municipality's plans for relocation
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1 assistance for those residents in the proposed
2 redevelopment project area whose residences are to be
3 removed, (iii) the availability of replacement housing
4 for those residents whose residences are to be removed,
5 and shall identify the type, location, and cost of the
6 housing, and (iv) the type and extent of relocation
7 assistance to be provided.
8 (6) On and after the effective date of this
9 amendatory Act of the 91st General Assembly, the housing
10 impact study required by paragraph (5) shall be
11 incorporated in the redevelopment plan for the
12 redevelopment project area.
13 (7) On and after the effective date of this
14 amendatory Act of the 91st General Assembly, no
15 redevelopment plan shall be adopted, nor an existing plan
16 amended, nor shall residential housing that is occupied
17 by households of low-income and very low-income persons
18 in currently existing redevelopment project areas be
19 removed after the effective date of this amendatory Act
20 of the 91st General Assembly unless the redevelopment
21 plan provides, with respect to inhabited housing units
22 that are to be removed for households of low-income and
23 very low-income persons, affordable housing and
24 relocation assistance not less than that which would be
25 provided under the federal Uniform Relocation Assistance
26 and Real Property Acquisition Policies Act of 1970 and
27 the regulations under that Act, including the eligibility
28 criteria. Affordable housing may be either existing or
29 newly constructed housing. For purposes of this paragraph
30 (7), "low-income households", "very low-income
31 households", and "affordable housing" have the meanings
32 set forth in the Illinois Affordable Housing Act. The
33 municipality shall make a good faith effort to ensure
34 that this affordable housing is located in or near the
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1 redevelopment project area within the municipality.
2 (8) On and after the effective date of this
3 amendatory Act of the 91st General Assembly, if, after
4 the adoption of the redevelopment plan for the
5 redevelopment project area, any municipality desires to
6 amend its redevelopment plan to remove more inhabited
7 residential units than specified in its original
8 redevelopment plan, that increase in the number of units
9 to be removed shall be deemed to be a change in the
10 nature of the redevelopment plan as to require compliance
11 with the procedures in this Act pertaining to the initial
12 approval of a redevelopment plan.
13 (o) "Redevelopment project" means any public and private
14 development project in furtherance of the objectives of a
15 redevelopment plan. On and after the effective date of this
16 amendatory Act of the 91st General Assembly, no redevelopment
17 plan may be approved or amended that includes the development
18 of vacant land (i) with a golf course and related clubhouse
19 and other facilities or (ii) designated by federal, State,
20 county, or municipal government as public land for outdoor
21 recreational activities or for nature preserves and used for
22 that purpose within 5 years prior to the adoption of the
23 redevelopment plan. For the purpose of this subsection,
24 "recreational activities" is limited to mean camping and
25 hunting.
26 (p) "Redevelopment project area" means an area
27 designated by the municipality, which is not less in the
28 aggregate than 1 1/2 acres and in respect to which the
29 municipality has made a finding that there exist conditions
30 which cause the area to be classified as an industrial park
31 conservation area or a blighted area or a conservation area,
32 or a combination of both blighted areas and conservation
33 areas.
34 (q) "Redevelopment project costs" mean and include the
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1 sum total of all reasonable or necessary costs incurred or
2 estimated to be incurred, and any such costs incidental to a
3 redevelopment plan and a redevelopment project. Such costs
4 include, without limitation, the following:
5 (1) Costs of studies, surveys, development of
6 plans, and specifications, implementation and
7 administration of the redevelopment plan including but
8 not limited to staff and professional service costs for
9 architectural, engineering, legal, marketing, financial,
10 planning or other services, provided however that no
11 charges for professional services may be based on a
12 percentage of the tax increment collected; except that on
13 and after the effective date of this amendatory Act of
14 the 91st General Assembly, no contracts for professional
15 services, excluding architectural and engineering
16 services, may be entered into if the terms of the
17 contract extend beyond a period of 3 years. In addition,
18 "redevelopment project costs" shall not include lobbying
19 expenses. After consultation with the municipality, each
20 tax increment consultant or advisor to a municipality
21 that plans to designate or has designated a redevelopment
22 project area shall inform the municipality in writing of
23 any contracts that the consultant or advisor has entered
24 into with entities or individuals that have received, or
25 are receiving, payments financed by tax increment
26 revenues produced by the redevelopment project area with
27 respect to which the consultant or advisor has performed,
28 or will be performing, service for the municipality.
29 This requirement shall be satisfied by the consultant or
30 advisor before the commencement of services for the
31 municipality and thereafter whenever any other contracts
32 with those individuals or entities are executed by the
33 consultant or advisor;
34 (1.5) After July 1, 1999, annual administrative
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1 costs shall not include general overhead or
2 administrative costs of the municipality that would still
3 have been incurred by the municipality if the
4 municipality had not designated a redevelopment project
5 area or approved a redevelopment plan;
6 (1.6) The cost of marketing sites within the
7 redevelopment project area to prospective businesses,
8 developers, and investors;
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, site preparation, and the clearing and
13 grading of land;
14 (3) Costs of rehabilitation, reconstruction or
15 repair or remodeling of existing public or private
16 buildings and fixtures; and the cost of replacing an
17 existing public building if pursuant to the
18 implementation of a redevelopment project the existing
19 public building is to be demolished to use the site for
20 private investment or devoted to a different use
21 requiring private investment;
22 (4) Costs of the construction of public works or
23 improvements, except that on and after the effective date
24 of this amendatory Act of the 91st General Assembly,
25 redevelopment project costs shall not include the cost of
26 constructing a new municipal public building principally
27 used to provide offices, storage space, or conference
28 facilities or vehicle storage, maintenance, or repair for
29 administrative, public safety, or public works personnel
30 and that is not intended to replace an existing public
31 building as provided under paragraph (3) of subsection
32 (q) of Section 11-74.4-3 unless either (i) the
33 construction of the new municipal building implements a
34 redevelopment project that was included in a
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1 redevelopment plan that was adopted by the municipality
2 prior to the effective date of this amendatory Act of the
3 91st General Assembly or (ii) the municipality makes a
4 reasonable determination in the redevelopment plan,
5 supported by information that provides the basis for that
6 determination, that the new municipal building is
7 required to meet an increase in the need for public
8 safety purposes anticipated to result from the
9 implementation of the redevelopment plan;
10 (5) Costs of job training and retraining projects;
11 (6) Financing costs, including but not limited to
12 all necessary and incidental expenses related to the
13 issuance of obligations and which may include payment of
14 interest on any obligations issued hereunder including
15 interest accruing during the estimated period of
16 construction of any redevelopment project for which such
17 obligations are issued and for not exceeding 36 months
18 thereafter and including reasonable reserves related
19 thereto;
20 (7) To the extent the municipality by written
21 agreement accepts and approves the same, all or a portion
22 of a taxing district's capital costs resulting from the
23 redevelopment project necessarily incurred or to be
24 incurred within a taxing district in furtherance of the
25 objectives of the redevelopment plan and project.
26 (7.5) For redevelopment project areas designated
27 (or redevelopment project areas amended to add or
28 increase the number of tax-increment-financing assisted
29 housing units) on or after the effective date of this
30 amendatory Act of the 91st General Assembly, an
31 elementary, secondary, or unit school district's
32 increased costs attributable to assisted housing units
33 located within the redevelopment project area for which
34 the developer or redeveloper receives financial
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1 assistance through an agreement with the municipality or
2 because the municipality incurs the cost of necessary
3 infrastructure improvements within the boundaries of the
4 assisted housing sites necessary for the completion of
5 that housing as authorized by this Act, and which costs
6 shall be paid by the municipality from the Special Tax
7 Allocation Fund when the tax increment revenue is
8 received as a result of the assisted housing units and
9 shall be calculated annually as follows:
10 (A) for foundation districts, excluding any
11 school district in a municipality with a population
12 in excess of 1,000,000, by multiplying the
13 district's increase in attendance resulting from the
14 net increase in new students enrolled in that school
15 district who reside in housing units within the
16 redevelopment project area that have received
17 financial assistance through an agreement with the
18 municipality or because the municipality incurs the
19 cost of necessary infrastructure improvements within
20 the boundaries of the housing sites necessary for
21 the completion of that housing as authorized by this
22 Act since the designation of the redevelopment
23 project area by the most recently available per
24 capita tuition cost as defined in Section 10-20.12a
25 of the School Code less any increase in general
26 state aid as defined in Section 18-8.05 of the
27 School Code attributable to these added new students
28 subject to the following annual limitations:
29 (i) for unit school districts with a
30 district average 1995-96 Per Capita Tuition
31 Charge of less than $5,900, no more than 25% of
32 the total amount of property tax increment
33 revenue produced by those housing units that
34 have received tax increment finance assistance
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1 under this Act;
2 (ii) for elementary school districts with
3 a district average 1995-96 Per Capita Tuition
4 Charge of less than $5,900, no more than 17% of
5 the total amount of property tax increment
6 revenue produced by those housing units that
7 have received tax increment finance assistance
8 under this Act; and
9 (iii) for secondary school districts with
10 a district average 1995-96 Per Capita Tuition
11 Charge of less than $5,900, no more than 8% of
12 the total amount of property tax increment
13 revenue produced by those housing units that
14 have received tax increment finance assistance
15 under this Act.
16 (B) For alternate method districts, flat grant
17 districts, and foundation districts with a district
18 average 1995-96 Per Capita Tuition Charge equal to
19 or more than $5,900, by multiplying the district's
20 increase in attendance resulting from the net
21 increase in new students enrolled in that school
22 district who reside in housing units within the
23 redevelopment project area that have received
24 financial assistance through an agreement with the
25 municipality or because the municipality incurs the
26 cost of necessary infrastructure improvements within
27 the boundaries of the housing sites necessary for
28 the completion of that housing as authorized by this
29 Act since the designation of the redevelopment
30 project area by the most recently available per
31 capita tuition cost as defined in Section 10-20.12a
32 of the School Code less any increase in general
33 state aid as defined in Section 18-8.05 of the
34 School Code attributable to these added new students
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1 subject to the following annual limitations:
2 (i) for unit school districts, no more
3 than 40% of the total amount of property tax
4 increment revenue produced by those housing
5 units that have received tax increment finance
6 assistance under this Act;
7 (ii) for elementary school districts, no
8 more than 27% of the total amount of property
9 tax increment revenue produced by those housing
10 units that have received tax increment finance
11 assistance under this Act; and
12 (iii) for secondary school districts, no
13 more than 13% of the total amount of property
14 tax increment revenue produced by those housing
15 units that have received tax increment finance
16 assistance under this Act.
17 (C) For any school district in a municipality
18 with a population in excess of 1,000,000, the
19 following additional restrictions shall apply to the
20 reimbursement of increased costs under this
21 paragraph (7.5):
22 (i) no increased costs shall be
23 reimbursed unless the school district certifies
24 that each of the schools affected by the
25 assisted housing project is at or over its
26 student capacity;
27 (ii) the amount reimburseable shall be
28 reduced by the value of any land donated to the
29 school district by the municipality or
30 developer, and by the value of any physical
31 improvements made to the affected schools by
32 the municipality or developer; and
33 (iii) the amount reimbursed may not
34 affect amounts otherwise obligated by the terms
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1 of any bonds, notes, or other funding
2 instruments, or the terms of any redevelopment
3 agreement.
4 Any school district seeking payment under this
5 paragraph (7.5) shall, after July 1 and before
6 September 30 of each year, provide the municipality
7 with reasonable evidence to support its claim for
8 reimbursement before the municipality shall be
9 required to approve or make the payment to the
10 school district. If the school district fails to
11 provide the information during this period in any
12 year, it shall forfeit any claim to reimbursement
13 for that year. School districts may adopt a
14 resolution waiving the right to all or a portion of
15 the reimbursement otherwise required by this
16 paragraph (7.5). By acceptance of this
17 reimbursement the school district waives the right
18 to directly or indirectly set aside, modify, or
19 contest in any manner the establishment of the
20 redevelopment project area or projects All or a
21 portion of a taxing district's capital costs
22 resulting from the redevelopment project necessarily
23 incurred or to be incurred in furtherance of the
24 objectives of the redevelopment plan and project, to
25 the extent the municipality by written agreement
26 accepts and approves such costs;
27 (8) Relocation costs to the extent that a
28 municipality determines that relocation costs shall be
29 paid or is required to make payment of relocation costs
30 by federal or State law or in order to satisfy
31 subparagraph (7) of subsection (n);
32 (9) Payment in lieu of taxes;
33 (10) Costs of job training, retraining, advanced
34 vocational education or career education, including but
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1 not limited to courses in occupational, semi-technical or
2 technical fields leading directly to employment, incurred
3 by one or more taxing districts, provided that such costs
4 (i) are related to the establishment and maintenance of
5 additional job training, advanced vocational education or
6 career education programs for persons employed or to be
7 employed by employers located in a redevelopment project
8 area; and (ii) when incurred by a taxing district or
9 taxing districts other than the municipality, are set
10 forth in a written agreement by or among the municipality
11 and the taxing district or taxing districts, which
12 agreement describes the program to be undertaken,
13 including but not limited to the number of employees to
14 be trained, a description of the training and services to
15 be provided, the number and type of positions available
16 or to be available, itemized costs of the program and
17 sources of funds to pay for the same, and the term of the
18 agreement. Such costs include, specifically, the payment
19 by community college districts of costs pursuant to
20 Sections 3-37, 3-38, 3-40 and 3-40.1 of the Public
21 Community College Act and by school districts of costs
22 pursuant to Sections 10-22.20a and 10-23.3a of The School
23 Code;
24 (11) Interest cost incurred by a redeveloper
25 related to the construction, renovation or rehabilitation
26 of a redevelopment project provided that:
27 (A) such costs are to be paid directly from
28 the special tax allocation fund established pursuant
29 to this Act; and
30 (B) such payments in any one year may not
31 exceed 30% of the annual interest costs incurred by
32 the redeveloper with regard to the redevelopment
33 project during that year;
34 (C) if there are not sufficient funds
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1 available in the special tax allocation fund to make
2 the payment pursuant to this paragraph (11) then the
3 amounts so due shall accrue and be payable when
4 sufficient funds are available in the special tax
5 allocation fund; and
6 (D) the total of such interest payments paid
7 pursuant to this Act may not exceed 30% of the total
8 (i) cost paid or incurred by the redeveloper for the
9 redevelopment project plus (ii) redevelopment
10 project costs excluding any property assembly costs
11 and any relocation costs incurred by a municipality
12 pursuant to this Act; and.
13 (E) the limits set forth in subparagraphs (B)
14 and (D) of paragraph (11) shall be modified for the
15 financing of rehabilitated or new housing units for
16 low-income households and very low-income
17 households, as defined in Section 3 of the Illinois
18 Affordable Housing Act. The percentage of 75% shall
19 be substituted for 30% in subparagraphs (B) and (D)
20 of paragraph (11).
21 Instead of the benefits provided by
22 subparagraphs (B) and (D) of paragraph (11), as
23 modified by this subparagraph, and notwithstanding
24 any other provisions of this Act to the contrary,
25 the municipality may pay from tax increment revenues
26 up to 50% of the cost of construction of new housing
27 units to be occupied by low-income households and
28 very low-income households as defined in Section 3
29 of the Illinois Affordable Housing Act. The cost of
30 construction of those units may be derived from the
31 proceeds of bonds issued by the municipality under
32 this Act or other constitutional or statutory
33 authority or from other sources of municipal revenue
34 that may be reimbursed from tax increment revenues
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1 or the proceeds of bonds issued to finance the
2 construction of that housing.
3 The benefits provided under this subparagraph
4 (E) of paragraph (11) shall be an eligible benefit
5 for the construction, renovation, and rehabilitation
6 of all low and very low-income housing units, as
7 defined in Section 3 of the Illinois Affordable
8 Housing Act, within the redevelopment project area.
9 If the low and very low-income units are part of a
10 residential redevelopment project that includes
11 units not affordable to low and very low-income
12 households, only the low and very low-income units
13 shall be eligible for benefits under subparagraph
14 (E) of paragraph (11). The standards for
15 maintaining the occupancy by low-income households
16 and very low-income households, as defined in
17 Section 3 of the Illinois Affordable Housing Act, of
18 those units constructed with benefits made available
19 under the provisions of this subparagraph (E) of
20 paragraph (11) shall be established by guidelines
21 adopted by the municipality. The responsibility for
22 annually documenting the initial occupancy of the
23 units by low-income households and very low-income
24 households, as defined in Section 3 of the Illinois
25 Affordable Housing Act, shall be that of the then
26 current owner of the property. For ownership units,
27 the guidelines will provide, at a minimum, for a
28 reasonable recapture of funds, or other appropriate
29 methods designed to preserve the original
30 affordability of the ownership units. For rental
31 units, the guidelines will provide, at a minimum,
32 for the affordability of rent to low and very
33 low-income households. As units become available,
34 they shall be rented to income-eligible tenants.
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1 The municipality may modify these guidelines from
2 time to time; the guidelines, however, shall be in
3 effect for as long as tax increment revenue is being
4 used to pay for costs associated with the units or
5 for the retirement of bonds issued to finance the
6 units or for the life of the redevelopment project
7 area, whichever is later.
8 (12) Unless explicitly stated herein the cost of
9 construction of new privately-owned buildings shall not
10 be an eligible redevelopment project cost.
11 (13) After the effective date of this amendatory
12 Act of the 91st General Assembly, none of the
13 redevelopment project costs enumerated in this subsection
14 shall be eligible redevelopment project costs if those
15 costs would provide direct financial support to a retail
16 entity initiating operations in the redevelopment project
17 area while terminating operations at another Illinois
18 location within 10 miles of the redevelopment project
19 area but outside the boundaries of the redevelopment
20 project area municipality. For purposes of this
21 paragraph, termination means a closing of a retail
22 operation that is directly related to the opening of the
23 same operation or like retail entity owned or operated by
24 more than 50% of the original ownership in a
25 redevelopment project area, but it does not mean closing
26 an operation for reasons beyond the control of the retail
27 entity, as documented by the retail entity, subject to a
28 reasonable finding by the municipality that the current
29 location contained inadequate space, had become
30 economically obsolete, or was no longer a viable location
31 for the retailer or serviceman.
32 Prior to the effective date of this amendatory Act of the
33 91st General Assembly, if a special service area has been
34 established pursuant to the Special Service Area Tax Act or
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1 Special Service Area Tax Law, then any tax increment revenues
2 derived from the tax imposed pursuant to the Special Service
3 Area Tax Act or Special Service Area Tax Law may be used
4 within the redevelopment project area for the purposes
5 permitted by that Act or Law as well as the purposes
6 permitted by this Act.
7 (r) "State Sales Tax Boundary" means the redevelopment
8 project area or the amended redevelopment project area
9 boundaries which are determined pursuant to subsection (9) of
10 Section 11-74.4-8a of this Act. The Department of Revenue
11 shall certify pursuant to subsection (9) of Section
12 11-74.4-8a the appropriate boundaries eligible for the
13 determination of State Sales Tax Increment.
14 (s) "State Sales Tax Increment" means an amount equal to
15 the increase in the aggregate amount of taxes paid by
16 retailers and servicemen, other than retailers and servicemen
17 subject to the Public Utilities Act, on transactions at
18 places of business located within a State Sales Tax Boundary
19 pursuant to the Retailers' Occupation Tax Act, the Use Tax
20 Act, the Service Use Tax Act, and the Service Occupation Tax
21 Act, except such portion of such increase that is paid into
22 the State and Local Sales Tax Reform Fund, the Local
23 Government Distributive Fund, the Local Government Tax
24 Fund and the County and Mass Transit District Fund, for as
25 long as State participation exists, over and above the
26 Initial Sales Tax Amounts, Adjusted Initial Sales Tax Amounts
27 or the Revised Initial Sales Tax Amounts for such taxes as
28 certified by the Department of Revenue and paid under those
29 Acts by retailers and servicemen on transactions at places of
30 business located within the State Sales Tax Boundary during
31 the base year which shall be the calendar year immediately
32 prior to the year in which the municipality adopted tax
33 increment allocation financing, less 3.0% of such amounts
34 generated under the Retailers' Occupation Tax Act, Use Tax
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1 Act and Service Use Tax Act and the Service Occupation Tax
2 Act, which sum shall be appropriated to the Department of
3 Revenue to cover its costs of administering and enforcing
4 this Section. For purposes of computing the aggregate amount
5 of such taxes for base years occurring prior to 1985, the
6 Department of Revenue shall compute the Initial Sales Tax
7 Amount for such taxes and deduct therefrom an amount equal to
8 4% of the aggregate amount of taxes per year for each year
9 the base year is prior to 1985, but not to exceed a total
10 deduction of 12%. The amount so determined shall be known as
11 the "Adjusted Initial Sales Tax Amount". For purposes of
12 determining the State Sales Tax Increment the Department of
13 Revenue shall for each period subtract from the tax amounts
14 received from retailers and servicemen on transactions
15 located in the State Sales Tax Boundary, the certified
16 Initial Sales Tax Amounts, Adjusted Initial Sales Tax Amounts
17 or Revised Initial Sales Tax Amounts for the Retailers'
18 Occupation Tax Act, the Use Tax Act, the Service Use Tax Act
19 and the Service Occupation Tax Act. For the State Fiscal
20 Year 1989 this calculation shall be made by utilizing the
21 calendar year 1987 to determine the tax amounts received. For
22 the State Fiscal Year 1990, this calculation shall be made by
23 utilizing the period from January 1, 1988, until September
24 30, 1988, to determine the tax amounts received from
25 retailers and servicemen, which shall have deducted therefrom
26 nine-twelfths of the certified Initial Sales Tax Amounts,
27 Adjusted Initial Sales Tax Amounts or the Revised Initial
28 Sales Tax Amounts as appropriate. For the State Fiscal Year
29 1991, this calculation shall be made by utilizing the period
30 from October 1, 1988, until June 30, 1989, to determine the
31 tax amounts received from retailers and servicemen, which
32 shall have deducted therefrom nine-twelfths of the certified
33 Initial State Sales Tax Amounts, Adjusted Initial Sales Tax
34 Amounts or the Revised Initial Sales Tax Amounts as
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1 appropriate. For every State Fiscal Year thereafter, the
2 applicable period shall be the 12 months beginning July 1 and
3 ending on June 30, to determine the tax amounts received
4 which shall have deducted therefrom the certified Initial
5 Sales Tax Amounts, Adjusted Initial Sales Tax Amounts or the
6 Revised Initial Sales Tax Amounts. Municipalities intending
7 to receive a distribution of State Sales Tax Increment must
8 report a list of retailers to the Department of Revenue by
9 October 31, 1988 and by July 31, of each year thereafter.
10 (t) "Taxing districts" means counties, townships, cities
11 and incorporated towns and villages, school, road, park,
12 sanitary, mosquito abatement, forest preserve, public health,
13 fire protection, river conservancy, tuberculosis sanitarium
14 and any other municipal corporations or districts with the
15 power to levy taxes. A special service area created under
16 the Special Service Area Tax Act or the Special Service Area
17 Tax Law shall not be treated as a "taxing district" under
18 this Act.
19 (u) "Taxing districts' capital costs" means those costs
20 of taxing districts for capital improvements that are found
21 by the municipal corporate authorities to be necessary and
22 directly result from the redevelopment project.
23 (v) As used in subsection (a) of Section 11-74.4-3 of
24 this Act, "vacant land" means any parcel or combination of
25 parcels of real property without industrial, commercial, and
26 residential buildings which has not been used for commercial
27 agricultural purposes within 5 years prior to the designation
28 of the redevelopment project area, unless the parcel is
29 included in an industrial park conservation area or the
30 parcel has been subdivided; provided that if the parcel was
31 part of a larger tract that has been divided into 3 or more
32 smaller tracts that were accepted for recording during the
33 period from 1950 to 1990, then the parcel shall be deemed to
34 have been subdivided, and all proceedings and actions of the
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1 municipality taken in that connection with respect to any
2 previously approved or designated redevelopment project area
3 or amended redevelopment project area are hereby validated
4 and hereby declared to be legally sufficient for all purposes
5 of this Act. For purposes of this Section and only for land
6 subject to the subdivision requirements of the Plat Act, land
7 is subdivided when the original plat of the proposed
8 Redevelopment Project Area or relevant portion thereof has
9 been properly certified, acknowledged, approved, and recorded
10 or filed in accordance with the Plat Act and a preliminary
11 plat, if any, for any subsequent phases of the proposed
12 Redevelopment Project Area or relevant portion thereof has
13 been properly approved and filed in accordance with the
14 applicable ordinance of the municipality.
15 (w) "Annual Total Increment" means the sum of each
16 municipality's annual Net Sales Tax Increment and each
17 municipality's annual Net Utility Tax Increment. The ratio
18 of the Annual Total Increment of each municipality to the
19 Annual Total Increment for all municipalities, as most
20 recently calculated by the Department, shall determine the
21 proportional shares of the Illinois Tax Increment Fund to be
22 distributed to each municipality.
23 (Source: P.A. 89-235, eff. 8-4-95; 89-705, eff. 1-31-97;
24 90-379, eff. 8-14-97.)
25 (65 ILCS 5/11-74.4-4) (from Ch. 24, par. 11-74.4-4)
26 Sec. 11-74.4-4. Municipal powers and duties;
27 redevelopment project areas. A municipality may:
28 (a) The changes made by this amendatory Act of the 91st
29 General Assembly do not apply to a municipality that, before
30 the effective date of this amendatory Act of the 91st General
31 Assembly, has adopted an ordinance or resolution fixing a
32 time and place for a public hearing under Section 11-74.4-5,
33 but has not yet adopted an ordinance approving redevelopment
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1 plans and redevelopment projects or designating redevelopment
2 project areas under this Section, until after that
3 municipality adopts an ordinance approving redevelopment
4 plans and redevelopment projects or designating redevelopment
5 project areas under this Section; thereafter the changes made
6 by this amendatory Act of the 91st General Assembly apply to
7 the same extent that they apply to redevelopment plans and
8 redevelopment projects that were approved and redevelopment
9 projects that were designated before the effective date of
10 this amendatory Act of the 91st General Assembly.
11 By ordinance introduced in the governing body of the
12 municipality within 14 to 90 days from the completion of the
13 hearing specified in Section 11-74.4-5 approve redevelopment
14 plans and redevelopment projects, and designate redevelopment
15 project areas pursuant to notice and hearing required by this
16 Act. No redevelopment project area shall be designated
17 unless a plan and project are approved prior to the
18 designation of such area and such area shall include only
19 those contiguous parcels of real property and improvements
20 thereon substantially benefited by the proposed redevelopment
21 project improvements. Upon adoption of the ordinances, the
22 municipality shall forthwith transmit to the county clerk of
23 the county or counties within which the redevelopment project
24 area is located a certified copy of the ordinances, a legal
25 description of the redevelopment project area, a map of the
26 redevelopment project area, identification of the year that
27 the county clerk shall use for determining the total initial
28 equalized assessed value of the redevelopment project area
29 consistent with subsection (a) of Section 11-74.4-9, and a
30 list of the parcel or tax identification number of each
31 parcel of property included in the redevelopment project
32 area.
33 (b) Make and enter into all contracts necessary or
34 incidental to the implementation and furtherance of its
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1 redevelopment plan and project.
2 (c) Within a redevelopment project area, acquire by
3 purchase, donation, lease or eminent domain; own, convey,
4 lease, mortgage or dispose of land and other property, real
5 or personal, or rights or interests therein, and grant or
6 acquire licenses, easements and options with respect thereto,
7 all in the manner and at such price the municipality
8 determines is reasonably necessary to achieve the objectives
9 of the redevelopment plan and project. No conveyance, lease,
10 mortgage, disposition of land or other property owned by a
11 municipality, or agreement relating to the development of
12 such municipal the property shall be made except upon the
13 adoption of an ordinance by the corporate authorities of the
14 municipality. Furthermore, no conveyance, lease, mortgage, or
15 other disposition of land owned by a municipality or
16 agreement relating to the development of such municipal
17 property shall be made without making public disclosure of
18 the terms of the disposition and all bids and proposals made
19 in response to the municipality's request. The procedures
20 for obtaining such bids and proposals shall provide
21 reasonable opportunity for any person to submit alternative
22 proposals or bids.
23 (d) Within a redevelopment project area, clear any area
24 by demolition or removal of any existing buildings and
25 structures.
26 (e) Within a redevelopment project area, renovate or
27 rehabilitate or construct any structure or building, as
28 permitted under this Act.
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
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1 or property owned or leased by it or any part thereof, or
2 facility therein.
3 (h) Accept grants, guarantees and donations of property,
4 labor, or other things of value from a public or private
5 source for use within a project redevelopment area.
6 (i) Acquire and construct public facilities within a
7 redevelopment project area, as permitted under this Act.
8 (j) Incur project redevelopment costs; provided,
9 however, that on and after the effective date of this
10 amendatory Act of the 91st General Assembly, no municipality
11 shall incur redevelopment project costs that are not
12 consistent with the program for accomplishing the objectives
13 of the redevelopment plan as included in that plan and
14 approved by the municipality until the municipality has
15 amended the redevelopment plan as provided elsewhere in this
16 Act.
17 (k) Create a commission of not less than 5 or more than
18 15 persons to be appointed by the mayor or president of the
19 municipality with the consent of the majority of the
20 governing board of the municipality. Members of a commission
21 appointed after the effective date of this amendatory Act of
22 1987 shall be appointed for initial terms of 1, 2, 3, 4 and 5
23 years, respectively, in such numbers as to provide that the
24 terms of not more than 1/3 of all such members shall expire
25 in any one year. Their successors shall be appointed for a
26 term of 5 years. The commission, subject to approval of the
27 corporate authorities may exercise the powers enumerated in
28 this Section. The commission shall also have the power to
29 hold the public hearings required by this division and make
30 recommendations to the corporate authorities concerning the
31 adoption of redevelopment plans, redevelopment projects and
32 designation of redevelopment project areas.
33 (l) Make payment in lieu of taxes or a portion thereof
34 to taxing districts. If payments in lieu of taxes or a
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1 portion thereof are made to taxing districts, those payments
2 shall be made to all districts within a project redevelopment
3 area on a basis which is proportional to the current
4 collections of revenue which each taxing district receives
5 from real property in the redevelopment project area.
6 (m) Exercise any and all other powers necessary to
7 effectuate the purposes of this Act.
8 (n) If any member of the corporate authority, a member
9 of a commission established pursuant to Section 11-74.4-4(k)
10 of this Act, or an employee or consultant of the municipality
11 involved in the planning and preparation of a redevelopment
12 plan, or project for a redevelopment project area or proposed
13 redevelopment project area, as defined in Sections
14 11-74.4-3(i) through (k) of this Act, owns or controls an
15 interest, direct or indirect, in any property included in any
16 redevelopment area, or proposed redevelopment area, he or she
17 shall disclose the same in writing to the clerk of the
18 municipality, and shall also so disclose the dates and terms
19 and conditions of any disposition of any such interest, which
20 disclosures shall be acknowledged by the corporate
21 authorities and entered upon the minute books of the
22 corporate authorities. If an individual holds such an
23 interest then that individual shall refrain from any further
24 official involvement in regard to such redevelopment plan,
25 project or area, from voting on any matter pertaining to such
26 redevelopment plan, project or area, or communicating with
27 other members concerning corporate authorities, commission or
28 employees concerning any matter pertaining to said
29 redevelopment plan, project or area. Furthermore, no such
30 member or employee shall acquire of any interest direct, or
31 indirect, in any property in a redevelopment area or proposed
32 redevelopment area after either (a) such individual obtains
33 knowledge of such plan, project or area or (b) first public
34 notice of such plan, project or area pursuant to Section
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1 11-74.4-6 of this Division, whichever occurs first. For the
2 purposes of this subsection, a month-to-month leasehold
3 interest shall not be deemed to constitute an interest in any
4 property included in any redevelopment area or proposed
5 redevelopment area.
6 (o) Create a Tax Increment Economic Development Advisory
7 Committee to be appointed by the Mayor or President of the
8 municipality with the consent of the majority of the
9 governing board of the municipality, the members of which
10 Committee shall be appointed for initial terms of 1, 2, 3, 4
11 and 5 years respectively, in such numbers as to provide that
12 the terms of not more than 1/3 of all such members shall
13 expire in any one year. Their successors shall be appointed
14 for a term of 5 years. The Committee shall have none of the
15 powers enumerated in this Section. The Committee shall serve
16 in an advisory capacity only. The Committee may advise the
17 governing Board of the municipality and other municipal
18 officials regarding development issues and opportunities
19 within the redevelopment project area or the area within the
20 State Sales Tax Boundary. The Committee may also promote and
21 publicize development opportunities in the redevelopment
22 project area or the area within the State Sales Tax Boundary.
23 (p) Municipalities may jointly undertake and perform
24 redevelopment plans and projects and utilize the provisions
25 of the Act wherever they have contiguous redevelopment
26 project areas or they determine to adopt tax increment
27 financing with respect to a redevelopment project area which
28 includes contiguous real property within the boundaries of
29 the municipalities, and in doing so, they may, by agreement
30 between municipalities, issue obligations, separately or
31 jointly, and expend revenues received under the Act for
32 eligible expenses anywhere within contiguous redevelopment
33 project areas or as otherwise permitted in the Act.
34 (q) Utilize revenues, other than State sales tax
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1 increment revenues, received under this Act (i) from one
2 redevelopment project area for eligible costs in another
3 redevelopment project area that is either contiguous to, or
4 is separated only by a public right of way from, the
5 redevelopment project area from which the revenues are
6 received or (ii) from one redevelopment project area for
7 eligible costs in another redevelopment project area both of
8 which are located in a municipality with a population of
9 45,000 or more. Utilize tax increment revenues for eligible
10 costs that are received from a redevelopment project area
11 created under the Industrial Jobs Recovery Law that is either
12 contiguous to, or is separated only by a public right of way
13 from, the redevelopment project area created under this Act
14 which initially receives these revenues. Utilize revenues,
15 other than State sales tax increment revenues, by
16 transferring or loaning such revenues to a redevelopment
17 project area created under the Industrial Jobs Recovery Law
18 that is either contiguous to, or separated only by a public
19 right of way from the redevelopment project area that
20 initially produced and received those revenues.
21 (r) If no redevelopment project has been initiated in a
22 redevelopment project area within 7 years after the area was
23 designated by ordinance under subsection (a), the
24 municipality shall adopt an ordinance repealing the area's
25 designation as a redevelopment project area; provided,
26 however, that if an area received its designation more than 3
27 years before the effective date of this amendatory Act of
28 1994 and no redevelopment project has been initiated within 4
29 years after the effective date of this amendatory Act of
30 1994, the municipality shall adopt an ordinance repealing its
31 designation as a redevelopment project area. Initiation of a
32 redevelopment project shall be evidenced by either a signed
33 redevelopment agreement or expenditures on eligible
34 redevelopment project costs associated with a redevelopment
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1 project.
2 (Source: P.A. 90-258, eff. 7-30-97.)
3 (65 ILCS 5/11-74.4-4.1)
4 Sec. 11-74.4-4.1. If a municipality by its corporate
5 authorities, or as it may determine by any commission
6 designated under subsection (k) of Section 11-74.4-4, adopts
7 an ordinance or resolution providing for a feasibility study
8 on the designation of an area as a redevelopment project
9 area, a copy of the ordinance or resolution shall immediately
10 be sent to all taxing districts that would be affected by the
11 designation.
12 On and after the effective date of this amendatory Act of
13 the 91st General Assembly, the ordinance or resolution shall
14 include:
15 (1) The boundaries of the area to be studied for
16 possible designation as a redevelopment project area.
17 (2) The purpose or purposes of the proposed
18 redevelopment plan and project.
19 (3) A general description of tax increment
20 allocation financing under this Act.
21 (4) The name, phone number, and address of the
22 municipal officer who can be contacted for additional
23 information about the proposed redevelopment project area
24 and who should receive all comments and suggestions
25 regarding the redevelopment of the area to be studied.
26 If one of the purposes of the planned redevelopment
27 project area would result in the displacement of residents
28 from 10 or more inhabited residential units, the municipality
29 shall adopt a resolution or ordinance providing for the
30 feasibility study. If the redevelopment plan will not result
31 in displacement of residents from inhabited units, and the
32 municipality certifies in the plan that displacement will not
33 result from the plan, then a resolution or ordinance need not
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1 be adopted. The study shall also require the preparation of
2 the housing impact study set forth in paragraph (5) of
3 subsection (n) of Section 11-74.4-3.
4 (Source: P.A. 88-537.)
5 (65 ILCS 5/11-74.4-4.2 new)
6 Sec. 11-74.4-4.2. Interested parties registry. On and
7 after the effective date of this amendatory Act of the 91st
8 General Assembly, the municipality shall by its corporate
9 authority create an "interested parties" registry for
10 activities related to the redevelopment project area. The
11 municipality shall adopt reasonable registration rules and
12 shall prescribe the necessary registration forms for
13 residents and organizations active within the municipality
14 that seek to be placed on the "interested parties" registry.
15 At a minimum, the rules for registration shall provide for a
16 renewable period of registration of not less than 3 years and
17 notification to registered organizations and individuals by
18 mail at the address provided upon registration prior to
19 termination of their registration. Such rules shall not be
20 used to prohibit or otherwise interfere with the ability of
21 eligible organizations and individuals to register for
22 receipt of information to which they are entitled under this
23 statute, including the information required by:
24 (1) subsection (a) of Section 11-74.4-5;
25 (2) paragraph (9) of subsection (d) of Section
26 11-74.4-5; and
27 (3) subsection (e) of Section 11-74.4-6.
28 (65 ILCS 5/11-74.4-5) (from Ch. 24, par. 11-74.4-5)
29 Sec. 11-74.4-5. (a) The changes made by this amendatory
30 Act of the 91st General Assembly do not apply to a
31 municipality that, before the effective date of this
32 amendatory Act of the 91st General Assembly, has adopted an
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1 ordinance or resolution fixing a time and place for a public
2 hearing under this Section, but has not yet adopted an
3 ordinance approving redevelopment plans and redevelopment
4 projects or designating redevelopment project areas under
5 Section 11-74.4-4, until after that municipality adopts an
6 ordinance approving redevelopment plans and redevelopment
7 projects or designating redevelopment project areas under
8 Section 11-74.4-4; thereafter the changes made by this
9 amendatory Act of the 91st General Assembly apply to the same
10 extent that they apply to redevelopment plans and
11 redevelopment projects that were approved and redevelopment
12 projects that were designated before the effective date of
13 this amendatory Act of the 91st General Assembly.
14 Prior to the adoption of an ordinance proposing the
15 designation of a redevelopment project area, or approving a
16 redevelopment plan or redevelopment project, the municipality
17 by its corporate authorities, or as it may determine by any
18 commission designated under subsection (k) of Section
19 11-74.4-4 shall adopt an ordinance or resolution fixing a
20 time and place for public hearing. Prior to the adoption of
21 the ordinance or resolution establishing the time and place
22 for the public hearing, the municipality shall make available
23 for public inspection a redevelopment plan or a separate
24 report that provides in reasonable detail the basis for the
25 eligibility of the redevelopment project area qualifying as a
26 blighted area, conservation area, or an industrial park
27 conservation area. The report along with the name of a
28 person to contact for further information shall be sent
29 within a reasonable time after the adoption of such ordinance
30 or resolution to the affected taxing districts by certified
31 mail. On and after the effective date of this amendatory Act
32 of the 91st General Assembly, the municipality shall print in
33 a newspaper of general circulation within the municipality a
34 notice that interested persons may register with the
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1 municipality in order to receive information on the proposed
2 designation of a redevelopment project area or the approval
3 of a redevelopment plan. The notice shall state the place of
4 registration and the operating hours of that place. The
5 municipality shall have adopted reasonable rules to implement
6 this registration process under Section 11-74.4-4.2. Notice
7 of the availability of the redevelopment plan and eligibility
8 report, including how to obtain this information, shall also
9 be sent by mail within a reasonable time after the adoption
10 of the ordinance or resolution to all residents or
11 organizations that operate in the municipality that have
12 registered with the municipality for that information in
13 accordance with the registration guidelines established by
14 the municipality under Section 11-74.4-4.2.
15 At the public hearing any interested person or affected
16 taxing district may file with the municipal clerk written
17 objections to and may be heard orally in respect to any
18 issues embodied in the notice. The municipality shall hear
19 and determine all protests and objections at the hearing and
20 the hearing may be adjourned to another date without further
21 notice other than a motion to be entered upon the minutes
22 fixing the time and place of the subsequent hearing. At the
23 public hearing or at any time prior to the adoption by the
24 municipality of an ordinance approving a redevelopment plan,
25 the municipality may make changes in the redevelopment plan.
26 Changes which (1) add additional parcels of property to the
27 proposed redevelopment project area, (2) substantially affect
28 the general land uses proposed in the redevelopment plan, or
29 (3) substantially change the nature of or extend the life of
30 the redevelopment project shall be made only after the
31 municipality gives notice, convenes a joint review board, and
32 conducts a public hearing pursuant to the procedures set
33 forth in this Section and in Section 11-74.4-6 of this Act.
34 Changes which do not (1) add additional parcels of property
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1 to the proposed redevelopment project area, (2) substantially
2 affect the general land uses proposed in the redevelopment
3 plan, or (3) substantially change the nature of or extend the
4 life of the redevelopment project may be made without further
5 hearing, provided that the municipality shall give notice of
6 any such changes by mail to each affected taxing district and
7 by publication in a newspaper of general circulation within
8 the affected taxing district. Such notice by mail and by
9 publication shall each occur not later than 10 days following
10 the adoption by ordinance of such changes. Prior to the
11 adoption of an ordinance approving a redevelopment plan or
12 redevelopment project, or designating a redevelopment project
13 area, changes may be made in the redevelopment plan or
14 project or area which changes do not alter the exterior
15 boundaries, or do not substantially affect the general land
16 uses established in the plan or substantially change the
17 nature of the redevelopment project, without further hearing
18 or notice, provided that notice of such changes is given by
19 mail to each affected taxing district and by publication in a
20 newspaper or newspapers of general circulation within the
21 taxing districts not less than 10 days prior to the adoption
22 of the changes by ordinance. After the adoption of an
23 ordinance approving a redevelopment plan or project or
24 designating a redevelopment project area, no ordinance shall
25 be adopted altering the exterior boundaries, affecting the
26 general land uses established pursuant to the plan or
27 changing the nature of the redevelopment project without
28 complying with the procedures provided in this division
29 pertaining to the initial approval of a redevelopment plan
30 project and designation of redevelopment project area.
31 Hearings with regard to a redevelopment project area, project
32 or plan may be held simultaneously.
33 (b) Prior to holding a public hearing to approve or
34 amend a redevelopment plan or to designate or add additional
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1 parces of property to a After the effective date of this
2 amendatory Act of 1989, prior to the adoption of an ordinance
3 proposing the designation of a redevelopment project area or
4 amending the boundaries of an existing redevelopment project
5 area, the municipality shall convene a joint review board to
6 consider the proposal. The board shall consist of a
7 representative selected by each community college district,
8 local elementary school district and high school district or
9 each local community unit school district, park district,
10 library district, township, fire protection district, and
11 county that will have the has authority to directly levy
12 taxes on the property within the proposed redevelopment
13 project area, a representative selected by the municipality
14 and a public member. The public member shall first be
15 selected and then the board's chairperson shall be selected
16 by a majority of the other board members.
17 For redevelopment project areas with redeveloment plans
18 or proposed redevelopment plans that would result in the
19 displacement of residents from 10 or more inhabited
20 residential units or that include 75 or more inhabited
21 residential units, the public member shall be a person who
22 resides in the redevelopment project area. If, as determined
23 by the housing impact study provided for in paragraph (5) of
24 subsection (n) of Section 11-74.4-3, or if no housing impact
25 study is required then based on other reasonable data, the
26 majority of residential units are occupied by very low, low,
27 or moderate income households, as defined in Section 3 of the
28 Illinois Affordable Housing Act, the public member shall be a
29 person who resides in very low, low, or moderate income
30 housing within the redevelopment project area.
31 Municipalities with fewer than 15,000 residents shall not be
32 required to select a person who lives in very low, low, or
33 moderate income housing within the redevelopment project
34 area, provided that the redevelopment plan or project will
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1 not result in displacement of residents from 10 or more
2 inhabited units, and the municipality so certifies in the
3 plan. If no person satisfying these requirements is
4 available or if no qualified person will serve as the public
5 member, then the joint review board is relieved of this
6 paragraph's selection requirements for the public member.
7 Within 90 days of the effective date of this amendatory
8 Act of the 91st General Assembly, each municipality that
9 designated a redevelopment project area for which it was not
10 required to convene a joint review board under this Section
11 shall Municipalities that have designated redevelopment
12 project areas prior to the effective date of this amendatory
13 Act of 1989 may convene a joint review board to perform the
14 duties specified under paragraph (e) of this Section.
15 All board members shall be appointed and the first board
16 meeting held within 14 days following at least 14 days after
17 the notice by the municipality to all the taxing districts as
18 required by Section 11-74.4-6(c) 11-74.4-6c. Such notice
19 shall also advise the taxing bodies represented on the joint
20 review board of the time and place of the first meeting of
21 the board. Additional meetings of the board shall be held
22 upon the call of any member. The municipality seeking
23 designation of the redevelopment project area shall may
24 provide administrative support to the board.
25 The board shall review (i) the public record, planning
26 documents and proposed ordinances approving the redevelopment
27 plan and project and (ii) proposed amendments to the
28 redevelopment plan or additions of parcels of property to the
29 redevelopment project area to be adopted by the municipality.
30 As part of its deliberations, the board may hold additional
31 hearings on the proposal. A board's recommendation shall be
32 an advisory, non-binding recommendation. The recommendation
33 shall be adopted by a majority of those members present and
34 voting. The recommendations shall be which recommendation
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1 shall be adopted by a majority vote of the board and
2 submitted to the municipality within 30 days after convening
3 of the board. Failure of the board to submit its report on a
4 timely basis shall not be cause to delay the public hearing
5 or any other step in the process of designating establishing
6 or amending the redevelopment project area but shall be
7 deemed to constitute approval by the joint review board of
8 the matters before it.
9 The board shall base its recommendation to approve or
10 disapprove the redevelopment plan and the designation of the
11 redevelopment project area or the amendment of the
12 redevelopment plan or addition of parcels of property to the
13 redevelopment project area decision to approve or deny the
14 proposal on the basis of the redevelopment project area and
15 redevelopment plan satisfying the plan requirements, the
16 eligibility criteria defined in Section 11-74.4-3, and the
17 objectives of the Act eligibility criteria defined in Section
18 11-74.4-3.
19 The board shall issue a written report describing why the
20 redevelopment plan and project area or the amendment there of
21 meets or fails to meet one or more of the objectives of this
22 Act and both the plan requirements and the elegibility
23 criteria defined in Section 11-74.4-3. In the event the Board
24 does not file a report it shall be presumed that these taxing
25 bodies find the redevelopment project area and redevelopment
26 plan to satisfy the objectives of this Act and the plan
27 requirements and eligibility criteria.
28 If the board recommends rejection of the matters before
29 it, the municipality will have 30 days within which to
30 resubmit the plan or amendment. During this period, the
31 municipality will meet and confer with the board and attempt
32 to resolve those issues set forth in the board's written
33 report that lead to the rejection of the plan or amendment.
34 In the event that the municipality and the board are unable
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1 to resolve these differences, or in the event that the
2 resubmitted plan or amendment is rejected by the board, the
3 municipality may proceed with the plan or amendment, but only
4 upon a three-fifths vote of the corporate authority
5 responsible for approval of the plan or amendment, excluding
6 positions of members that are vacant and those members that
7 are ineligible to vote because of conflicts of interest.
8 (c) After a municipality has by ordinance approved a
9 redevelopment plan and designated a redevelopment project
10 area, the plan may be amended and additional properties may
11 be added to the redevelopment project area only as herein
12 provided. Amendments which (1) add additional parcels of
13 property to the proposed redevelopment project area, (2)
14 substantially affect the general land uses proposed in the
15 redevelopment plan, (3) substantially change the nature of
16 the redevelopment project, (4) increase the total estimated
17 redevelopment project costs set out in the redevelopment plan
18 by more than 5% after adjustment for inflation from the date
19 the plan was adopted, or (5) add additional redevelopment
20 project costs to the itemized list of redevelopment project
21 costs set out in the redevelopment plan shall be made only
22 after the municipality gives notice, convenes a joint review
23 board, and conducts a public hearing pursuant to the
24 procedures set forth in this Section and in Section 11-74.4-6
25 of this Act. Changes which do not (1) add additional parcels
26 of property to the proposed redevelopment project area, (2)
27 substantially affect the general land uses proposed in the
28 redevelopment plan, (3) substantially change the nature of
29 the redevelopment project, (4) increase the total estimated
30 redevelopment project cost set out in the redevelopment plan
31 by more than 5% after adjustment for inflation from the date
32 the plan was adopted, or (5) add additional redevelopment
33 project costs to the itemized list of redevelopment project
34 costs set out in the redevelopment plan may be made without
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1 further hearing, provided that the municipality shall give
2 notice of any such changes by mail to each affected taxing
3 district and by publication in a newspaper of general
4 circulation within the affected taxing district. Such notice
5 by mail and by publication shall each occur not later than 10
6 days following the adoption by ordinance of such changes.
7 After the adoption of an ordinance approving a redevelopment
8 plan or project or designating a redevelopment project area,
9 no ordinance shall be adopted altering the exterior
10 boundaries, affecting the general land uses established
11 pursuant to the plan or changing the nature of the
12 redevelopment project without complying with the procedures
13 provided in this division pertaining to the initial approval
14 of a redevelopment plan project and designation of a
15 redevelopment project area.
16 (d) After the effective date of this amendatory Act of
17 the 91st General Assembly 1994 and adoption of an ordinance
18 approving a redevelopment plan or project, a municipality
19 with a population of less than 1,000,000 shall submit the
20 following information for each redevelopment project area (i)
21 to the State Comptroller in the financial report required
22 under Section 3 of the Governmental Account Audit Act and
23 (ii) to all taxing districts overlapping the redevelopment
24 project area within 90 days after the close of each municipal
25 fiscal year notify all taxing districts represented on the
26 joint review board in which the redevelopment project area is
27 located that any or all of the following information will be
28 made available no later than 180 days after the close of each
29 municipal fiscal year or as soon thereafter as the audited
30 financial statements become available and, in any case, shall
31 be submitted before the annual meeting of the Joint Review
32 Board to each of the taxing districts that overlap the
33 redevelopment project area upon receipt of a written request
34 of a majority of such taxing districts for such information:
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1 (1) Any amendments to the redevelopment plan, the
2 redevelopment project area, or the State Sales Tax
3 Boundary.
4 (1.5) A list of the redevelopment project areas
5 administered by the municipality and, if applicable, the
6 date each redevelopment project area was designated or
7 terminated by the municipality.
8 (2) Audited financial statements of the special tax
9 allocation fund once a cumulative total of $100,000 has
10 been deposited in the fund.
11 (3) Certification of the Chief Executive Officer of
12 the municipality that the municipality has complied with
13 all of the requirements of this Act during the preceding
14 fiscal year.
15 (4) An opinion of legal counsel that the
16 municipality is in compliance with this Act.
17 (5) An analysis of the special tax allocation fund
18 which sets forth:
19 (A) the balance in the special tax allocation
20 fund at the beginning of the fiscal year;
21 (B) all amounts deposited in the special tax
22 allocation fund by source;
23 (C) an itemized list of all expenditures from
24 the special tax allocation fund by category of
25 permissible redevelopment project cost; and
26 (D) the balance in the special tax allocation
27 fund at the end of the fiscal year including a
28 breakdown of that balance by source and a breakdown
29 of that balance identifying any portion of the
30 balance that is required, pledged, earmarked, or
31 otherwise designated for payment of or securing of
32 obligations and anticipated redevelopment project
33 costs. Any portion of such ending balance that has
34 not been identified or is not identified as being
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1 required, pledged, earmarked, or otherwise
2 designated for payment of or securing of obligations
3 or anticipated redevelopment projects costs shall be
4 designated as surplus if it is not required for
5 anticipated redevelopment project costs or to pay
6 debt service on bonds issued to finance
7 redevelopment project costs, as set forth in Section
8 11-74.4-7 hereof.
9 (6) A description of all property purchased by the
10 municipality within the redevelopment project area
11 including:
12 (A) Street address.
13 (B) Approximate size or description of
14 property.
15 (C) Purchase price.
16 (D) Seller of property.
17 (7) A statement setting forth all activities
18 undertaken in furtherance of the objectives of the
19 redevelopment plan, including:
20 (A) Any project implemented in the preceding
21 fiscal year.
22 (B) A description of the redevelopment
23 activities undertaken.
24 (C) A description of any agreements entered
25 into by the municipality with regard to the
26 disposition or redevelopment of any property within
27 the redevelopment project area or the area within
28 the State Sales Tax Boundary.
29 (D) Additional information on the use of all
30 funds received under this Division and steps taken
31 by the municipality to achieve the objectives of the
32 redevelopment plan.
33 (E) Information regarding contracts that the
34 municipality's tax increment advisors or consultants
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1 have entered into with entities or persons that have
2 received, or are receiving, payments financed by tax
3 increment revenues produced by the same
4 dredevelopment project area.
5 (F) Any reports submitted to the municipality
6 by the joint review board.
7 (G) A review of public and, to the extent
8 possible, private investment actually undertaken to
9 date after the effective date of this amendatory Act
10 of the 91st General Assembly and estimated to be
11 undertaken during the following year. This review
12 shall, on a project-by-project basis, set forth the
13 estimated amounts of public and private investment
14 incurred after the effective date of this amendatory
15 Act of the 91st General Assembly and provide the
16 ratio of private investment to public investment to
17 the date of the report and as estimated to the
18 completion of the redevelopment project.
19 (8) With regard to any obligations issued by the
20 municipality:
21 (A) copies of any official statements; and
22 (B) an analysis prepared by financial advisor
23 or underwriter setting forth: (i) nature and term of
24 obligation; and (ii) projected debt service
25 including required reserves and debt coverage.
26 (9) For special tax allocation funds that have
27 experienced cumulative deposits of incremental tax
28 revenues of $100,000 or more, a certified audit report
29 reviewing compliance with this Act performed by an
30 independent public accountant certified and licensed by
31 the authority of the State of Illinois. The financial
32 portion of the audit must be conducted in accordance with
33 Standards for Audits of Governmental Organizations,
34 Programs, Activities, and Functions adopted by the
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1 Comptroller General of the United States (1981), as
2 amended. The audit report shall contain a letter from
3 the independent certified public accountant indicating
4 compliance or noncompliance with the requirements of
5 subsection (q) of Section 11-74.4-3. For redevelopment
6 plans or projects that would result in the displacement
7 of residents from 10 or more inhabited residential units
8 or that contain 75 or more inhabited residential units,
9 notice of the availability of the information, including
10 how to obtain the report, required in this subsection
11 shall also be sent by mail to all residents or
12 organizations that operate in the municipality that
13 register with the municipality for that information
14 according to registration procedudres adopted under
15 Section 11-74.4-4.2. All municipalities are subject to
16 this provision.
17 (d-1) Prior to the effective date of this amendatory Act
18 of the 91st General Assembly, municipalities with populations
19 of over 1,000,000 shall, after adoption of a redevelopment
20 plan or project, make available upon request to any taxing
21 district in which the redevelopment project area is located
22 the following information:
23 (1) Any amendments to the redevelopment plan, the
24 redevelopment project area, or the State Sales Tax
25 Boundary; and
26 (2) In connection with any redevelopment project
27 area for which the municipality has outstanding
28 obligations issued to provide for redevelopment project
29 costs pursuant to Section 11-74.4-7, audited financial
30 statements of the special tax allocation fund.
31 (e) One year, two years and at the end of every
32 subsequent three year period thereafter, The joint review
33 board shall meet annually 180 days after the close of the
34 municipal fiscal year or as soon as the redevelopment project
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1 audit for that fiscal year becomes available to review the
2 effectiveness and status of the redevelopment project area up
3 to that date.
4 (f) (Blank). If the redevelopment project area has been
5 in existence for at least 5 years and the municipality
6 proposes a redevelopment project with a total redevelopment
7 project cost exceeding 35% of the total amount budgeted in
8 the redevelopment plan for all redevelopment projects, the
9 municipality, in addition to any other requirements imposed
10 by this Act, shall convene a meeting of the joint review
11 board as provided in this Act for the purpose of reviewing
12 the redevelopment project.
13 (g) In the event that a municipality has held a public
14 hearing under this Section prior to March 14, 1994 (the
15 effective date of Public Act 88-537), the requirements
16 imposed by Public Act 88-537 relating to the method of fixing
17 the time and place for public hearing, the materials and
18 information required to be made available for public
19 inspection, and the information required to be sent after
20 adoption of an ordinance or resolution fixing a time and
21 place for public hearing shall not be applicable.
22 (Source: P.A. 88-537; 88-688, eff. 1-24-95; revised
23 10-31-98.)
24 (65 ILCS 5/11-74.4-6) (from Ch. 24, par. 11-74.4-6)
25 Sec. 11-74.4-6. (a) Except as provided herein, notice of
26 the public hearing shall be given by publication and mailing.
27 Notice by publication shall be given by publication at least
28 twice, the first publication to be not more than 30 nor less
29 than 10 days prior to the hearing in a newspaper of general
30 circulation within the taxing districts having property in
31 the proposed redevelopment project area. Notice by mailing
32 shall be given by depositing such notice in the United States
33 mails by certified mail addressed to the person or persons
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1 in whose name the general taxes for the last preceding year
2 were paid on each lot, block, tract, or parcel of land lying
3 within the project redevelopment area. Said notice shall be
4 mailed not less than 10 days prior to the date set for the
5 public hearing. In the event taxes for the last preceding
6 year were not paid, the notice shall also be sent to the
7 persons last listed on the tax rolls within the preceding 3
8 years as the owners of such property. For redevelopment
9 project areas with redevelopment plans or proposed
10 redevelopment plans that would require removal of 10 or more
11 inhabited residential units or that contain 75 or more
12 inhabited residential units, the municipality shall make a
13 good faith effort to notify by mail all residents of the
14 redevelopment project area. At a minimum, the municipality
15 shall mail a notice to each residential address located
16 within the redevelopment project area. The municipality
17 shall endeavor to ensure that all such notices are
18 effectively communicated and shall include (in addition to
19 notice in English) notice in the predominant language other
20 than English when appropriate.
21 (b) The notices issued pursuant to this Section shall
22 include the following:
23 (1) The time and place of public hearing;
24 (2) The boundaries of the proposed redevelopment
25 project area by legal description and by street location
26 where possible;
27 (3) A notification that all interested persons will
28 be given an opportunity to be heard at the public
29 hearing;
30 (4) A description of the redevelopment plan or
31 redevelopment project for the proposed redevelopment
32 project area if a plan or project is the subject matter
33 of the hearing.
34 (5) Such other matters as the municipality may deem
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1 appropriate.
2 (c) Not less than 45 days prior to the date set for
3 hearing, the municipality shall give notice by mail as
4 provided in subsection (a) to all taxing districts of which
5 taxable property is included in the redevelopment project
6 area, project or plan and to the Department of Commerce and
7 Community Affairs, and in addition to the other requirements
8 under subsection (b) the notice shall include an invitation
9 to the Department of Commerce and Community Affairs and each
10 taxing district to submit comments to the municipality
11 concerning the subject matter of the hearing prior to the
12 date of hearing.
13 (d) In the event that any municipality has by ordinance
14 adopted tax increment financing prior to 1987, and has
15 complied with the notice requirements of this Section, except
16 that the notice has not included the requirements of
17 subsection (b), paragraphs (2), (3) and (4), and within 90
18 days of the effective date of this amendatory Act of 1991,
19 that municipality passes an ordinance which contains findings
20 that: (1) all taxing districts prior to the time of the
21 hearing required by Section 11-74.4-5 were furnished with
22 copies of a map incorporated into the redevelopment plan and
23 project substantially showing the legal boundaries of the
24 redevelopment project area; (2) the redevelopment plan and
25 project, or a draft thereof, contained a map substantially
26 showing the legal boundaries of the redevelopment project
27 area and was available to the public at the time of the
28 hearing; and (3) since the adoption of any form of tax
29 increment financing authorized by this Act, and prior to June
30 1, 1991, no objection or challenge has been made in writing
31 to the municipality in respect to the notices required by
32 this Section, then the municipality shall be deemed to have
33 met the notice requirements of this Act and all actions of
34 the municipality taken in connection with such notices as
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1 were given are hereby validated and hereby declared to be
2 legally sufficient for all purposes of this Act.
3 (e) If a municipality desires to propose a redevelopment
4 plan for a redevelopment project area that would result in
5 the displacement of residents from 10 or more inhabited
6 residential units or for a redevelopment project area that
7 contains 75 or more inhabited residential units, the
8 municipality shall hold a public meeting before the mailing
9 of the notices of public hearing as provided in subsection
10 (c) of this Section. The meeting shall be for the purpose of
11 enabling the municipality to advise the public, taxing
12 districts having real property in the redevelopment project
13 area, taxpayers who own property in the proposed
14 redevelopment project area, and residents in the area as to
15 the municipality's possible intent to prepare a redevelopment
16 plan and designate a redevelopment project area and to
17 receive public comment. The time and place for the meeting
18 shall be set by the head of the municipality's Department of
19 Planning or other department official designated by the mayor
20 or city or village manager without the necessity of a
21 resolution or ordinance of the municipality and may be held
22 by a member of the staff of the Department of Planning of the
23 municipality or by any other person, body, or commission
24 designated by the corporate authorities. The meeting shall
25 be held at least 21 days before the mailing of the notice of
26 public hearing provided for in subsection (c) of this
27 Section.
28 Notice of the public meeting shall be given by mail.
29 Notice by mail shall be not less than 15 days before the date
30 of the meeting and shall be sent by certified mail to all
31 taxing districts having real property in the proposed
32 redevelopment project area and to all entities requesting
33 that information that have registered with a person and
34 department designated by the municipality in accordance with
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1 registration guidelines established by the municipality
2 pursuant to Section 11-74.4-4.2. The municipality shall make
3 a good faith effort to notify all residents and the last
4 known persons who paid property taxes on real estate in a
5 redevelopment project area. This requirement shall be deemed
6 to be satisfied if the municipality mails, by regular mail, a
7 notice to each residential address and the person or persons
8 in whose name property taxes were paid on real property for
9 the last preceding year located within the redevelopment
10 project area. Notice shall be in languages other than
11 English when appropriate. The notices issued under this
12 subsection shall include the following:
13 (1) The time and place of the meeting.
14 (2) The boundaries of the area to be studied for
15 possible designation as a redevelopment project area by
16 street and location.
17 (3) The purpose or purposes of establishing a
18 redevelopment project area.
19 (4) A brief description of tax increment financing.
20 (5) The name, telephone number, and address of the
21 person who can be contacted for additional information
22 about the proposed redevelopment project area and who
23 should receive all comments and suggestions regarding
24 the development of the area to be studied.
25 (6) Notification that all interested persons will
26 be given an opportunity to be heard at the public
27 meeting.
28 (7) Such other matters as the municipality deems
29 appropriate.
30 At the public meeting, any interested person or
31 representative of an affected taxing district may be heard
32 orally and may file, with the person conducting the meeting,
33 statements that pertain to the subject matter of the meeting.
34
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1 (Source: P.A. 86-142; 87-813.)
2 (65 ILCS 5/11-74.4-7) (from Ch. 24, par. 11-74.4-7)
3 Sec. 11-74.4-7. Obligations secured by the special tax
4 allocation fund set forth in Section 11-74.4-8 for the
5 redevelopment project area may be issued to provide for
6 redevelopment project costs. Such obligations, when so
7 issued, shall be retired in the manner provided in the
8 ordinance authorizing the issuance of such obligations by the
9 receipts of taxes levied as specified in Section 11-74.4-9
10 against the taxable property included in the area, by
11 revenues as specified by Section 11-74.4-8a and other revenue
12 designated by the municipality. A municipality may in the
13 ordinance pledge all or any part of the funds in and to be
14 deposited in the special tax allocation fund created pursuant
15 to Section 11-74.4-8 to the payment of the redevelopment
16 project costs and obligations. Any pledge of funds in the
17 special tax allocation fund shall provide for distribution to
18 the taxing districts and to the Illinois Department of
19 Revenue of moneys not required, pledged, earmarked, or
20 otherwise designated for payment and securing of the
21 obligations and anticipated redevelopment project costs and
22 such excess funds shall be calculated annually and deemed to
23 be "surplus" funds. In the event a municipality only applies
24 or pledges a portion of the funds in the special tax
25 allocation fund for the payment or securing of anticipated
26 redevelopment project costs or of obligations, any such funds
27 remaining in the special tax allocation fund after complying
28 with the requirements of the application or pledge, shall
29 also be calculated annually and deemed "surplus" funds. All
30 surplus funds in the special tax allocation fund, subject to
31 the provisions of (6.1) of Section 11-74.4-8a, shall be
32 distributed annually within 180 days after the close of the
33 municipality's fiscal year by being paid by the municipal
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1 treasurer to the County Collector, to the Department of
2 Revenue and to the municipality in direct proportion to the
3 tax incremental revenue received as a result of an increase
4 in the equalized assessed value of property in the
5 redevelopment project area, tax incremental revenue received
6 from the State and tax incremental revenue received from the
7 municipality, but not to exceed as to each such source the
8 total incremental revenue received from that source. Except
9 that any special tax allocation fund subject to provision in
10 (6.1) of Section 11-74.4-8a shall comply with the provisions
11 in that Section. The County Collector shall thereafter make
12 distribution to the respective taxing districts in the same
13 manner and proportion as the most recent distribution by the
14 county collector to the affected districts of real property
15 taxes from real property in the redevelopment project area.
16 Without limiting the foregoing in this Section, the
17 municipality may in addition to obligations secured by the
18 special tax allocation fund pledge for a period not greater
19 than the term of the obligations towards payment of such
20 obligations any part or any combination of the following: (a)
21 net revenues of all or part of any redevelopment project; (b)
22 taxes levied and collected on any or all property in the
23 municipality; (c) the full faith and credit of the
24 municipality; (d) a mortgage on part or all of the
25 redevelopment project; or (e) any other taxes or anticipated
26 receipts that the municipality may lawfully pledge.
27 Such obligations may be issued in one or more series
28 bearing interest at such rate or rates as the corporate
29 authorities of the municipality shall determine by ordinance.
30 Such obligations shall bear such date or dates, mature at
31 such time or times not exceeding 20 years from their
32 respective dates, be in such denomination, carry such
33 registration privileges, be executed in such manner, be
34 payable in such medium of payment at such place or places,
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1 contain such covenants, terms and conditions, and be subject
2 to redemption as such ordinance shall provide. Obligations
3 issued pursuant to this Act may be sold at public or private
4 sale at such price as shall be determined by the corporate
5 authorities of the municipalities. No referendum approval of
6 the electors shall be required as a condition to the issuance
7 of obligations pursuant to this Division except as provided
8 in this Section.
9 In the event the municipality authorizes issuance of
10 obligations pursuant to the authority of this Division
11 secured by the full faith and credit of the municipality,
12 which obligations are other than obligations which may be
13 issued under home rule powers provided by Article VII,
14 Section 6 of the Illinois Constitution, or pledges taxes
15 pursuant to (b) or (c) of the second paragraph of this
16 section, the ordinance authorizing the issuance of such
17 obligations or pledging such taxes shall be published within
18 10 days after such ordinance has been passed in one or more
19 newspapers, with general circulation within such
20 municipality. The publication of the ordinance shall be
21 accompanied by a notice of (1) the specific number of voters
22 required to sign a petition requesting the question of the
23 issuance of such obligations or pledging taxes to be
24 submitted to the electors; (2) the time in which such
25 petition must be filed; and (3) the date of the prospective
26 referendum. The municipal clerk shall provide a petition
27 form to any individual requesting one.
28 If no petition is filed with the municipal clerk, as
29 hereinafter provided in this Section, within 30 days after
30 the publication of the ordinance, the ordinance shall be in
31 effect. But, if within that 30 day period a petition is
32 filed with the municipal clerk, signed by electors in the
33 municipality numbering 10% or more of the number of
34 registered voters in the municipality, asking that the
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1 question of issuing obligations using full faith and credit
2 of the municipality as security for the cost of paying for
3 redevelopment project costs, or of pledging taxes for the
4 payment of such obligations, or both, be submitted to the
5 electors of the municipality, the corporate authorities of
6 the municipality shall call a special election in the manner
7 provided by law to vote upon that question, or, if a general,
8 State or municipal election is to be held within a period of
9 not less than 30 or more than 90 days from the date such
10 petition is filed, shall submit the question at the next
11 general, State or municipal election. If it appears upon the
12 canvass of the election by the corporate authorities that a
13 majority of electors voting upon the question voted in favor
14 thereof, the ordinance shall be in effect, but if a majority
15 of the electors voting upon the question are not in favor
16 thereof, the ordinance shall not take effect.
17 The ordinance authorizing the obligations may provide
18 that the obligations shall contain a recital that they are
19 issued pursuant to this Division, which recital shall be
20 conclusive evidence of their validity and of the regularity
21 of their issuance.
22 In the event the municipality authorizes issuance of
23 obligations pursuant to this Section secured by the full
24 faith and credit of the municipality, the ordinance
25 authorizing the obligations may provide for the levy and
26 collection of a direct annual tax upon all taxable property
27 within the municipality sufficient to pay the principal
28 thereof and interest thereon as it matures, which levy may be
29 in addition to and exclusive of the maximum of all other
30 taxes authorized to be levied by the municipality, which
31 levy, however, shall be abated to the extent that monies from
32 other sources are available for payment of the obligations
33 and the municipality certifies the amount of said monies
34 available to the county clerk.
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1 A certified copy of such ordinance shall be filed with
2 the county clerk of each county in which any portion of the
3 municipality is situated, and shall constitute the authority
4 for the extension and collection of the taxes to be deposited
5 in the special tax allocation fund.
6 A municipality may also issue its obligations to refund
7 in whole or in part, obligations theretofore issued by such
8 municipality under the authority of this Act, whether at or
9 prior to maturity, provided however, that the last maturity
10 of the refunding obligations shall not be expressed to mature
11 later than December 31 of the year in which the payment to
12 the municipal treasurer as provided in subsection (b) of
13 Section 11-74.4-8 of this Act is to be made with respect to
14 ad valorem taxes levied in the twenty-third calendar year
15 after the year in which the ordinance approving the
16 redevelopment project area is adopted 23 years from the date
17 of the ordinance approving the redevelopment project area if
18 the ordinance was adopted on or after January 15, 1981, and
19 not later than December 31 of the year in which the payment
20 to the municipal treasurer as provided in subsection (b) of
21 Section 11-74.4-8 of this Act is to be made with respect to
22 ad valorem taxes levied in the thirty-fifth calendar year
23 after the year in which the ordinance approving the
24 redevelopment project area is adopted more than 35 years if
25 the ordinance was adopted before January 15, 1981, or if the
26 ordinance was adopted in April, 1984, July, 1985, or if the
27 ordinance was adopted in December, 1987 and the redevelopment
28 project is located within one mile of Midway Airport, or if
29 the municipality is subject to the Local Government Financial
30 Planning and Supervision Act, or if the ordinance was adopted
31 on December 31, 1986 in a municipality with a population in
32 1990 of less than 3,600 that is located in a county with a
33 population in 1990 of less than 34,000 and for which at least
34 $250,000 of tax increment bonds were authorized on June 17,
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1 1997 and, for redevelopment project areas for which bonds
2 were issued before July 29, 1991, in connection with a
3 redevelopment project in the area within the State Sales Tax
4 Boundary and which were extended by municipal ordinance under
5 subsection (n) of Section 11-74.4-3, the last maturity of
6 the refunding obligations shall not be expressed to mature
7 later than the date on which the redevelopment project area
8 is terminated or December 31, 2013, whichever date occurs
9 first.
10 In the event a municipality issues obligations under home
11 rule powers or other legislative authority the proceeds of
12 which are pledged to pay for redevelopment project costs, the
13 municipality may, if it has followed the procedures in
14 conformance with this division, retire said obligations from
15 funds in the special tax allocation fund in amounts and in
16 such manner as if such obligations had been issued pursuant
17 to the provisions of this division.
18 All obligations heretofore or hereafter issued pursuant
19 to this Act shall not be regarded as indebtedness of the
20 municipality issuing such obligations or any other taxing
21 district for the purpose of any limitation imposed by law.
22 (Source: P.A. 89-357; eff. 8-17-95; 90-379, eff. 8-14-97.)
23 (65 ILCS 5/11-74.4-7.1)
24 Sec. 11-74.4-7.1. After the effective date of this
25 amendatory Act of 1994 and prior to the effective date of
26 this amendatory Act of the 91st General Assembly, a
27 municipality with a population of less than 1,000,000, prior
28 to construction of a new municipal public building that
29 provides governmental services to be financed with tax
30 increment revenues as authorized in paragraph (4) of
31 subsection (q) of Section 11-74.4-3, shall agree with the
32 affected taxing districts to pay them, to the extent tax
33 increment finance revenues are available, over the life of
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1 the redevelopment project area, an amount equal to 25% of the
2 cost of the building, such payments to be paid to the taxing
3 districts in the same proportion as the most recent
4 distribution by the county collector to the affected taxing
5 districts of real property taxes from taxable real property
6 in the redevelopment project area.
7 This Section does not apply to a municipality that,
8 before March 14, 1994 (the effective date of Public Act
9 88-537), acquired or leased the land (i) upon which a new
10 municipal public building is to be constructed and (ii) for
11 which an existing redevelopment plan or a redevelopment
12 agreement includes provisions for the construction of a new
13 municipal public building.
14 (Source: P.A. 88-537; 88-688, eff. 1-24-95.)
15 (65 ILCS 5/11-74.4-8) (from Ch. 24, par. 11-74.4-8)
16 Sec. 11-74.4-8. A municipality may not adopt tax
17 increment financing in a redevelopment project area after the
18 effective date of this amendatory Act of 1997 that will
19 encompass an area that is currently included in an enterprise
20 zone created under the Illinois Enterprise Zone Act unless
21 that municipality, pursuant to Section 5.4 of the Illinois
22 Enterprise Zone Act, amends the enterprise zone designating
23 ordinance to limit the eligibility for tax abatements as
24 provided in Section 5.4.1 of the Illinois Enterprise Zone
25 Act. A municipality, at the time a redevelopment project
26 area is designated, may adopt tax increment allocation
27 financing by passing an ordinance providing that the ad
28 valorem taxes, if any, arising from the levies upon taxable
29 real property in such redevelopment project area by taxing
30 districts and tax rates determined in the manner provided in
31 paragraph (c) of Section 11-74.4-9 each year after the
32 effective date of the ordinance until redevelopment project
33 costs and all municipal obligations financing redevelopment
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1 project costs incurred under this Division have been paid
2 shall be divided as follows:
3 (a) That portion of taxes levied upon each taxable lot,
4 block, tract or parcel of real property which is attributable
5 to the lower of the current equalized assessed value or the
6 initial equalized assessed value of each such taxable lot,
7 block, tract or parcel of real property in the redevelopment
8 project area shall be allocated to and when collected shall
9 be paid by the county collector to the respective affected
10 taxing districts in the manner required by law in the absence
11 of the adoption of tax increment allocation financing.
12 (b) That portion, if any, of such taxes which is
13 attributable to the increase in the current equalized
14 assessed valuation of each taxable lot, block, tract or
15 parcel of real property in the redevelopment project area
16 over and above the initial equalized assessed value of each
17 property in the project area shall be allocated to and when
18 collected shall be paid to the municipal treasurer who shall
19 deposit said taxes into a special fund called the special tax
20 allocation fund of the municipality for the purpose of paying
21 redevelopment project costs and obligations incurred in the
22 payment thereof. In any county with a population of 3,000,000
23 or more that has adopted a procedure for collecting taxes
24 that provides for one or more of the installments of the
25 taxes to be billed and collected on an estimated basis, the
26 municipal treasurer shall be paid for deposit in the special
27 tax allocation fund of the municipality, from the taxes
28 collected from estimated bills issued for property in the
29 redevelopment project area, the difference between the amount
30 actually collected from each taxable lot, block, tract, or
31 parcel of real property within the redevelopment project area
32 and an amount determined by multiplying the rate at which
33 taxes were last extended against the taxable lot, block,
34 track, or parcel of real property in the manner provided in
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1 subsection (c) of Section 11-74.4-9 by the initial equalized
2 assessed value of the property divided by the number of
3 installments in which real estate taxes are billed and
4 collected within the county;, provided that the payments on
5 or before December 31, 1999 to a municipal treasurer shall be
6 made only if each of the following conditions are met:
7 (1) The total equalized assessed value of the
8 redevelopment project area as last determined was not
9 less than 175% of the total initial equalized assessed
10 value.
11 (2) Not more than 50% of the total equalized
12 assessed value of the redevelopment project area as last
13 determined is attributable to a piece of property
14 assigned a single real estate index number.
15 (3) The municipal clerk has certified to the county
16 clerk that the municipality has issued its obligations to
17 which there has been pledged the incremental property
18 taxes of the redevelopment project area or taxes levied
19 and collected on any or all property in the municipality
20 or the full faith and credit of the municipality to pay
21 or secure payment for all or a portion of the
22 redevelopment project costs. The certification shall be
23 filed annually no later than September 1 for the
24 estimated taxes to be distributed in the following year;
25 however, for the year 1992 the certification shall be
26 made at any time on or before March 31, 1992.
27 (4) The municipality has not requested that the
28 total initial equalized assessed value of real property
29 be adjusted as provided in subsection (b) of Section
30 11-74.4-9.
31 The conditions of paragraphs (1) through (4) do not apply
32 after December 31, 1999 to payments to a municipal treasurer
33 made by a county with 3,000,000 or more inhabitants that has
34 adopted an estimated billing procedure for collecting taxes.
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1 If a county that has adopted the estimated billing procedure
2 makes an erroneous overpayment of tax revenue to the
3 municipal treasurer, then the county may seek a refund of
4 that overpayment. The county shall send the municipal
5 treasurer a notice of liability for the overpayment on or
6 before the mailing date of the next real estate tax bill
7 within the county. The refund shall be limited to the amount
8 of the overpayment.
9 It is the intent of this Division that after the
10 effective date of this amendatory Act of 1988 a
11 municipality's own ad valorem tax arising from levies on
12 taxable real property be included in the determination of
13 incremental revenue in the manner provided in paragraph (c)
14 of Section 11-74.4-9. If the municipality does not extend
15 such a tax, it shall annually deposit in the municipality's
16 Special Tax Increment Fund an amount equal to 10% of the
17 total contributions to the fund from all other taxing
18 districts in that year. The annual 10% deposit required by
19 this paragraph shall be limited to the actual amount of
20 municipally produced incremental tax revenues available to
21 the municipality from taxpayers located in the redevelopment
22 project area in that year if: (a) the plan for the area
23 restricts the use of the property primarily to industrial
24 purposes, (b) the municipality establishing the redevelopment
25 project area is a home-rule community with a 1990 population
26 of between 25,000 and 50,000, (c) the municipality is wholly
27 located within a county with a 1990 population of over
28 750,000 and (d) the redevelopment project area was
29 established by the municipality prior to June 1, 1990. This
30 payment shall be in lieu of a contribution of ad valorem
31 taxes on real property. If no such payment is made, any
32 redevelopment project area of the municipality shall be
33 dissolved.
34 If a municipality has adopted tax increment allocation
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1 financing by ordinance and the County Clerk thereafter
2 certifies the "total initial equalized assessed value as
3 adjusted" of the taxable real property within such
4 redevelopment project area in the manner provided in
5 paragraph (b) of Section 11-74.4-9, each year after the date
6 of the certification of the total initial equalized assessed
7 value as adjusted until redevelopment project costs and all
8 municipal obligations financing redevelopment project costs
9 have been paid the ad valorem taxes, if any, arising from the
10 levies upon the taxable real property in such redevelopment
11 project area by taxing districts and tax rates determined in
12 the manner provided in paragraph (c) of Section 11-74.4-9
13 shall be divided as follows:
14 (1) That portion of the taxes levied upon each
15 taxable lot, block, tract or parcel of real property
16 which is attributable to the lower of the current
17 equalized assessed value or "current equalized assessed
18 value as adjusted" or the initial equalized assessed
19 value of each such taxable lot, block, tract, or parcel
20 of real property existing at the time tax increment
21 financing was adopted, minus the total current homestead
22 exemptions provided by Sections 15-170 and 15-175 of the
23 Property Tax Code in the redevelopment project area shall
24 be allocated to and when collected shall be paid by the
25 county collector to the respective affected taxing
26 districts in the manner required by law in the absence of
27 the adoption of tax increment allocation financing.
28 (2) That portion, if any, of such taxes which is
29 attributable to the increase in the current equalized
30 assessed valuation of each taxable lot, block, tract, or
31 parcel of real property in the redevelopment project
32 area, over and above the initial equalized assessed value
33 of each property existing at the time tax increment
34 financing was adopted, minus the total current homestead
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1 exemptions pertaining to each piece of property provided
2 by Sections 15-170 and 15-175 of the Property Tax Code in
3 the redevelopment project area, shall be allocated to and
4 when collected shall be paid to the municipal Treasurer,
5 who shall deposit said taxes into a special fund called
6 the special tax allocation fund of the municipality for
7 the purpose of paying redevelopment project costs and
8 obligations incurred in the payment thereof.
9 The municipality may pledge in the ordinance the funds in
10 and to be deposited in the special tax allocation fund for
11 the payment of such costs and obligations. No part of the
12 current equalized assessed valuation of each property in the
13 redevelopment project area attributable to any increase above
14 the total initial equalized assessed value, or the total
15 initial equalized assessed value as adjusted, of such
16 properties shall be used in calculating the general State
17 school aid formula, provided for in Section 18-8 of the
18 School Code, until such time as all redevelopment project
19 costs have been paid as provided for in this Section.
20 Whenever a municipality issues bonds for the purpose of
21 financing redevelopment project costs, such municipality may
22 provide by ordinance for the appointment of a trustee, which
23 may be any trust company within the State, and for the
24 establishment of such funds or accounts to be maintained by
25 such trustee as the municipality shall deem necessary to
26 provide for the security and payment of the bonds. If such
27 municipality provides for the appointment of a trustee, such
28 trustee shall be considered the assignee of any payments
29 assigned by the municipality pursuant to such ordinance and
30 this Section. Any amounts paid to such trustee as assignee
31 shall be deposited in the funds or accounts established
32 pursuant to such trust agreement, and shall be held by such
33 trustee in trust for the benefit of the holders of the bonds,
34 and such holders shall have a lien on and a security interest
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1 in such funds or accounts so long as the bonds remain
2 outstanding and unpaid. Upon retirement of the bonds, the
3 trustee shall pay over any excess amounts held to the
4 municipality for deposit in the special tax allocation fund.
5 When such redevelopment projects costs, including without
6 limitation all municipal obligations financing redevelopment
7 project costs incurred under this Division, have been paid,
8 all surplus funds then remaining in the special tax
9 allocation fund shall be distributed by being paid by the
10 municipal treasurer to the Department of Revenue, the
11 municipality and the county collector; first to the
12 Department of Revenue and the municipality in direct
13 proportion to the tax incremental revenue received from the
14 State and the municipality, but not to exceed the total
15 incremental revenue received from the State or the
16 municipality less any annual surplus distribution of
17 incremental revenue previously made; with any remaining funds
18 to be paid to the County Collector who shall immediately
19 thereafter pay said funds to the taxing districts in the
20 redevelopment project area in the same manner and proportion
21 as the most recent distribution by the county collector to
22 the affected districts of real property taxes from real
23 property in the redevelopment project area.
24 Upon the payment of all redevelopment project costs,
25 retirement of obligations and the distribution of any excess
26 monies pursuant to this Section, the municipality shall adopt
27 an ordinance dissolving the special tax allocation fund for
28 the redevelopment project area and terminating the
29 designation of the redevelopment project area as a
30 redevelopment project area. Municipalities shall notify
31 affected taxing districts prior to November 1 if the
32 redevelopment project area is to be terminated by December 31
33 of that same year. If a municipality extends estimated dates
34 of completion of a redevelopment project and retirement of
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1 obligations to finance a redevelopment project, as allowed by
2 this amendatory Act of 1993, that extension shall not extend
3 the property tax increment allocation financing authorized by
4 this Section. Thereafter the rates of the taxing districts
5 shall be extended and taxes levied, collected and distributed
6 in the manner applicable in the absence of the adoption of
7 tax increment allocation financing.
8 Nothing in this Section shall be construed as relieving
9 property in such redevelopment project areas from being
10 assessed as provided in the Property Tax Code or as relieving
11 owners of such property from paying a uniform rate of taxes,
12 as required by Section 4 of Article 9 of the Illinois
13 Constitution.
14 (Source: P.A. 90-258, eff. 7-30-97.)
15 (65 ILCS 5/11-74.4-8a) (from Ch. 24, par. 11-74.4-8a)
16 Sec. 11-74.4-8a. (1) Until June 1, 1988, a municipality
17 which has adopted tax increment allocation financing prior to
18 January 1, 1987, may by ordinance (1) authorize the
19 Department of Revenue, subject to appropriation, to annually
20 certify and cause to be paid from the Illinois Tax Increment
21 Fund to such municipality for deposit in the municipality's
22 special tax allocation fund an amount equal to the Net State
23 Sales Tax Increment and (2) authorize the Department of
24 Revenue to annually notify the municipality of the amount of
25 the Municipal Sales Tax Increment which shall be deposited by
26 the municipality in the municipality's special tax allocation
27 fund. Provided that for purposes of this Section no
28 amendments adding additional area to the redevelopment
29 project area which has been certified as the State Sales Tax
30 Boundary shall be taken into account if such amendments are
31 adopted by the municipality after January 1, 1987. If an
32 amendment is adopted which decreases the area of a State
33 Sales Tax Boundary, the municipality shall update the list
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1 required by subsection (3)(a) of this Section. The Retailers'
2 Occupation Tax liability, Use Tax liability, Service
3 Occupation Tax liability and Service Use Tax liability for
4 retailers and servicemen located within the disconnected area
5 shall be excluded from the base from which tax increments are
6 calculated and the revenue from any such retailer or
7 serviceman shall not be included in calculating incremental
8 revenue payable to the municipality. A municipality adopting
9 an ordinance under this subsection (1) of this Section for a
10 redevelopment project area which is certified as a State
11 Sales Tax Boundary shall not be entitled to payments of State
12 taxes authorized under subsection (2) of this Section for the
13 same redevelopment project area. Nothing herein shall be
14 construed to prevent a municipality from receiving payment of
15 State taxes authorized under subsection (2) of this Section
16 for a separate redevelopment project area that does not
17 overlap in any way with the State Sales Tax Boundary
18 receiving payments of State taxes pursuant to subsection (1)
19 of this Section.
20 A certified copy of such ordinance shall be submitted by
21 the municipality to the Department of Commerce and Community
22 Affairs and the Department of Revenue not later than 30 days
23 after the effective date of the ordinance. Upon submission
24 of the ordinances, and the information required pursuant to
25 subsection 3 of this Section, the Department of Revenue shall
26 promptly determine the amount of such taxes paid under the
27 Retailers' Occupation Tax Act, Use Tax Act, Service Use Tax
28 Act, the Service Occupation Tax Act, the Municipal Retailers'
29 Occupation Tax Act and the Municipal Service Occupation Tax
30 Act by retailers and servicemen on transactions at places
31 located in the redevelopment project area during the base
32 year, and shall certify all the foregoing "initial sales tax
33 amounts" to the municipality within 60 days of submission of
34 the list required of subsection (3)(a) of this Section.
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1 If a retailer or serviceman with a place of business
2 located within a redevelopment project area also has one or
3 more other places of business within the municipality but
4 outside the redevelopment project area, the retailer or
5 serviceman shall, upon request of the Department of Revenue,
6 certify to the Department of Revenue the amount of taxes paid
7 pursuant to the Retailers' Occupation Tax Act, the Municipal
8 Retailers' Occupation Tax Act, the Service Occupation Tax Act
9 and the Municipal Service Occupation Tax Act at each place of
10 business which is located within the redevelopment project
11 area in the manner and for the periods of time requested by
12 the Department of Revenue.
13 When the municipality determines that a portion of an
14 increase in the aggregate amount of taxes paid by retailers
15 and servicemen under the Retailers' Occupation Tax Act, Use
16 Tax Act, Service Use Tax Act, or the Service Occupation Tax
17 Act is the result of a retailer or serviceman initiating
18 retail or service operations in the redevelopment project
19 area by such retailer or serviceman with a resulting
20 termination of retail or service operations by such retailer
21 or serviceman at another location in Illinois in the standard
22 metropolitan statistical area of such municipality, the
23 Department of Revenue shall be notified that the retailers
24 occupation tax liability, use tax liability, service
25 occupation tax liability, or service use tax liability from
26 such retailer's or serviceman's terminated operation shall be
27 included in the base Initial Sales Tax Amounts from which the
28 State Sales Tax Increment is calculated for purposes of State
29 payments to the affected municipality; provided, however, for
30 purposes of this paragraph "termination" shall mean a closing
31 of a retail or service operation which is directly related to
32 the opening of the same retail or service operation in a
33 redevelopment project area which is included within a State
34 Sales Tax Boundary, but it shall not include retail or
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1 service operations closed for reasons beyond the control of
2 the retailer or serviceman, as determined by the Department.
3 If the municipality makes the determination referred to in
4 the prior paragraph and notifies the Department and if the
5 relocation is from a location within the municipality, the
6 Department, at the request of the municipality, shall adjust
7 the certified aggregate amount of taxes that constitute the
8 Municipal Sales Tax Increment paid by retailers and
9 servicemen on transactions at places of business located
10 within the State Sales Tax Boundary during the base year
11 using the same procedures as are employed to make the
12 adjustment referred to in the prior paragraph. The adjusted
13 Municipal Sales Tax Increment calculated by the Department
14 shall be sufficient to satisfy the requirements of subsection
15 (1) of this Section.
16 When a municipality which has adopted tax increment
17 allocation financing in 1986 determines that a portion of the
18 aggregate amount of taxes paid by retailers and servicemen
19 under the Retailers Occupation Tax Act, Use Tax Act, Service
20 Use Tax Act, or Service Occupation Tax Act, the Municipal
21 Retailers' Occupation Tax Act and the Municipal Service
22 Occupation Tax Act, includes revenue of a retailer or
23 serviceman which terminated retailer or service operations in
24 1986, prior to the adoption of tax increment allocation
25 financing, the Department of Revenue shall be notified by
26 such municipality that the retailers' occupation tax
27 liability, use tax liability, service occupation tax
28 liability or service use tax liability, from such retailer's
29 or serviceman's terminated operations shall be excluded from
30 the Initial Sales Tax Amounts for such taxes. The revenue
31 from any such retailer or serviceman which is excluded from
32 the base year under this paragraph, shall not be included in
33 calculating incremental revenues if such retailer or
34 serviceman reestablishes such business in the redevelopment
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1 project area.
2 For State fiscal year 1992, the Department of Revenue
3 shall budget, and the Illinois General Assembly shall
4 appropriate from the Illinois Tax Increment Fund in the State
5 treasury, an amount not to exceed $18,000,000 to pay to each
6 eligible municipality the Net State Sales Tax Increment to
7 which such municipality is entitled.
8 Beginning on January 1, 1993, each municipality's
9 proportional share of the Illinois Tax Increment Fund shall
10 be determined by adding the annual Net State Sales Tax
11 Increment and the annual Net Utility Tax Increment to
12 determine the Annual Total Increment. The ratio of the Annual
13 Total Increment of each municipality to the Annual Total
14 Increment for all municipalities, as most recently calculated
15 by the Department, shall determine the proportional shares of
16 the Illinois Tax Increment Fund to be distributed to each
17 municipality.
18 Beginning in October, 1993, and each January, April, July
19 and October thereafter, the Department of Revenue shall
20 certify to the Treasurer and the Comptroller the amounts
21 payable quarter annually during the fiscal year to each
22 municipality under this Section. The Comptroller shall
23 promptly then draw warrants, ordering the State Treasurer to
24 pay such amounts from the Illinois Tax Increment Fund in the
25 State treasury.
26 The Department of Revenue shall utilize the same periods
27 established for determining State Sales Tax Increment to
28 determine the Municipal Sales Tax Increment for the area
29 within a State Sales Tax Boundary and certify such amounts to
30 such municipal treasurer who shall transfer such amounts to
31 the special tax allocation fund.
32 The provisions of this subsection (1) do not apply to
33 additional municipal retailers' occupation or service
34 occupation taxes imposed by municipalities using their home
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1 rule powers or imposed pursuant to Sections 8-11-1.3,
2 8-11-1.4 and 8-11-1.5 of this Act. A municipality shall not
3 receive from the State any share of the Illinois Tax
4 Increment Fund unless such municipality deposits all its
5 Municipal Sales Tax Increment and the local incremental real
6 property tax revenues, as provided herein, into the
7 appropriate special tax allocation fund. A municipality
8 located within an economic development project area created
9 under the County Economic Development Project Area Property
10 Tax Allocation Act which has abated any portion of its
11 property taxes which otherwise would have been deposited in
12 its special tax allocation fund shall not receive from the
13 State the Net Sales Tax Increment.
14 (2) A municipality which has adopted tax increment
15 allocation financing with regard to an industrial park or
16 industrial park conservation area, prior to January 1, 1988,
17 may by ordinance authorize the Department of Revenue to
18 annually certify and pay from the Illinois Tax Increment Fund
19 to such municipality for deposit in the municipality's
20 special tax allocation fund an amount equal to the Net State
21 Utility Tax Increment. Provided that for purposes of this
22 Section no amendments adding additional area to the
23 redevelopment project area shall be taken into account if
24 such amendments are adopted by the municipality after January
25 1, 1988. Municipalities adopting an ordinance under this
26 subsection (2) of this Section for a redevelopment project
27 area shall not be entitled to payment of State taxes
28 authorized under subsection (1) of this Section for the same
29 redevelopment project area which is within a State Sales Tax
30 Boundary. Nothing herein shall be construed to prevent a
31 municipality from receiving payment of State taxes authorized
32 under subsection (1) of this Section for a separate
33 redevelopment project area within a State Sales Tax Boundary
34 that does not overlap in any way with the redevelopment
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1 project area receiving payments of State taxes pursuant to
2 subsection (2) of this Section.
3 A certified copy of such ordinance shall be submitted to
4 the Department of Commerce and Community Affairs and the
5 Department of Revenue not later than 30 days after the
6 effective date of the ordinance.
7 When a municipality determines that a portion of an
8 increase in the aggregate amount of taxes paid by industrial
9 or commercial facilities under the Public Utilities Act, is
10 the result of an industrial or commercial facility initiating
11 operations in the redevelopment project area with a resulting
12 termination of such operations by such industrial or
13 commercial facility at another location in Illinois, the
14 Department of Revenue shall be notified by such municipality
15 that such industrial or commercial facility's liability under
16 the Public Utility Tax Act shall be included in the base from
17 which tax increments are calculated for purposes of State
18 payments to the affected municipality.
19 After receipt of the calculations by the public utility
20 as required by subsection (4) of this Section, the Department
21 of Revenue shall annually budget and the Illinois General
22 Assembly shall annually appropriate from the General Revenue
23 Fund through State Fiscal Year 1989, and thereafter from the
24 Illinois Tax Increment Fund, an amount sufficient to pay to
25 each eligible municipality the amount of incremental revenue
26 attributable to State electric and gas taxes as reflected by
27 the charges imposed on persons in the project area to which
28 such municipality is entitled by comparing the preceding
29 calendar year with the base year as determined by this
30 Section. Beginning on January 1, 1993, each municipality's
31 proportional share of the Illinois Tax Increment Fund shall
32 be determined by adding the annual Net State Utility Tax
33 Increment and the annual Net Utility Tax Increment to
34 determine the Annual Total Increment. The ratio of the Annual
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1 Total Increment of each municipality to the Annual Total
2 Increment for all municipalities, as most recently calculated
3 by the Department, shall determine the proportional shares of
4 the Illinois Tax Increment Fund to be distributed to each
5 municipality.
6 A municipality shall not receive any share of the
7 Illinois Tax Increment Fund from the State unless such
8 municipality imposes the maximum municipal charges authorized
9 pursuant to Section 9-221 of the Public Utilities Act and
10 deposits all municipal utility tax incremental revenues as
11 certified by the public utilities, and all local real estate
12 tax increments into such municipality's special tax
13 allocation fund.
14 (3) Within 30 days after the adoption of the ordinance
15 required by either subsection (1) or subsection (2) of this
16 Section, the municipality shall transmit to the Department of
17 Commerce and Community Affairs and the Department of Revenue
18 the following:
19 (a) if applicable, a certified copy of the
20 ordinance required by subsection (1) accompanied by a
21 complete list of street names and the range of street
22 numbers of each street located within the redevelopment
23 project area for which payments are to be made under this
24 Section in both the base year and in the year preceding
25 the payment year; and the addresses of persons registered
26 with the Department of Revenue; and, the name under which
27 each such retailer or serviceman conducts business at
28 that address, if different from the corporate name; and
29 the Illinois Business Tax Number of each such person (The
30 municipality shall update this list in the event of a
31 revision of the redevelopment project area, or the
32 opening or closing or name change of any street or part
33 thereof in the redevelopment project area, or if the
34 Department of Revenue informs the municipality of an
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1 addition or deletion pursuant to the monthly updates
2 given by the Department.);
3 (b) if applicable, a certified copy of the
4 ordinance required by subsection (2) accompanied by a
5 complete list of street names and range of street numbers
6 of each street located within the redevelopment project
7 area, the utility customers in the project area, and the
8 utilities serving the redevelopment project areas;
9 (c) certified copies of the ordinances approving
10 the redevelopment plan and designating the redevelopment
11 project area;
12 (d) a copy of the redevelopment plan as approved by
13 the municipality;
14 (e) an opinion of legal counsel that the
15 municipality had complied with the requirements of this
16 Act; and
17 (f) a certification by the chief executive officer
18 of the municipality that with regard to a redevelopment
19 project area: (1) the municipality has committed all of
20 the municipal tax increment created pursuant to this Act
21 for deposit in the special tax allocation fund, (2) the
22 redevelopment projects described in the redevelopment
23 plan would not be completed without the use of State
24 incremental revenues pursuant to this Act, (3) the
25 municipality will pursue the implementation of the
26 redevelopment plan in an expeditious manner, (4) the
27 incremental revenues created pursuant to this Section
28 will be exclusively utilized for the development of the
29 redevelopment project area, and (5) the increased revenue
30 created pursuant to this Section shall be used
31 exclusively to pay redevelopment project costs as defined
32 in this Act.
33 (4) The Department of Revenue upon receipt of the
34 information set forth in paragraph (b) of subsection (3)
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1 shall immediately forward such information to each public
2 utility furnishing natural gas or electricity to buildings
3 within the redevelopment project area. Upon receipt of such
4 information, each public utility shall promptly:
5 (a) provide to the Department of Revenue and the
6 municipality separate lists of the names and addresses of
7 persons within the redevelopment project area receiving
8 natural gas or electricity from such public utility.
9 Such list shall be updated as necessary by the public
10 utility. Each month thereafter the public utility shall
11 furnish the Department of Revenue and the municipality
12 with an itemized listing of charges imposed pursuant to
13 Sections 9-221 and 9-222 of the Public Utilities Act on
14 persons within the redevelopment project area.
15 (b) determine the amount of charges imposed
16 pursuant to Sections 9-221 and 9-222 of the Public
17 Utilities Act on persons in the redevelopment project
18 area during the base year, both as a result of municipal
19 taxes on electricity and gas and as a result of State
20 taxes on electricity and gas and certify such amounts
21 both to the municipality and the Department of Revenue;
22 and
23 (c) determine the amount of charges imposed
24 pursuant to Sections 9-221 and 9-222 of the Public
25 Utilities Act on persons in the redevelopment project
26 area on a monthly basis during the base year, both as a
27 result of State and municipal taxes on electricity and
28 gas and certify such separate amounts both to the
29 municipality and the Department of Revenue.
30 After the determinations are made in paragraphs (b) and
31 (c), the public utility shall monthly during the existence of
32 the redevelopment project area notify the Department of
33 Revenue and the municipality of any increase in charges over
34 the base year determinations made pursuant to paragraphs (b)
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1 and (c).
2 (5) The payments authorized under this Section shall be
3 deposited by the municipal treasurer in the special tax
4 allocation fund of the municipality, which for accounting
5 purposes shall identify the sources of each payment as:
6 municipal receipts from the State retailers occupation,
7 service occupation, use and service use taxes; and municipal
8 public utility taxes charged to customers under the Public
9 Utilities Act and State public utility taxes charged to
10 customers under the Public Utilities Act.
11 (6) Before the effective date of this amendatory Act of
12 the 91st General Assembly, any municipality receiving
13 payments authorized under this Section for any redevelopment
14 project area or area within a State Sales Tax Boundary within
15 the municipality shall submit to the Department of Revenue
16 and to the taxing districts which are sent the notice
17 required by Section 6 of this Act annually within 180 days
18 after the close of each municipal fiscal year the following
19 information for the immediately preceding fiscal year:
20 (a) Any amendments to the redevelopment plan, the
21 redevelopment project area, or the State Sales Tax
22 Boundary.
23 (b) Audited financial statements of the special tax
24 allocation fund.
25 (c) Certification of the Chief Executive Officer of
26 the municipality that the municipality has complied with
27 all of the requirements of this Act during the preceding
28 fiscal year.
29 (d) An opinion of legal counsel that the
30 municipality is in compliance with this Act.
31 (e) An analysis of the special tax allocation fund
32 which sets forth:
33 (1) the balance in the special tax allocation
34 fund at the beginning of the fiscal year;
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1 (2) all amounts deposited in the special tax
2 allocation fund by source;
3 (3) all expenditures from the special tax
4 allocation fund by category of permissible
5 redevelopment project cost; and
6 (4) the balance in the special tax allocation
7 fund at the end of the fiscal year including a
8 breakdown of that balance by source. Such ending
9 balance shall be designated as surplus if it is not
10 required for anticipated redevelopment project costs
11 or to pay debt service on bonds issued to finance
12 redevelopment project costs, as set forth in Section
13 11-74.4-7 hereof.
14 (f) A description of all property purchased by the
15 municipality within the redevelopment project area
16 including
17 1. Street address
18 2. Approximate size or description of property
19 3. Purchase price
20 4. Seller of property.
21 (g) A statement setting forth all activities
22 undertaken in furtherance of the objectives of the
23 redevelopment plan, including:
24 1. Any project implemented in the preceding
25 fiscal year
26 2. A description of the redevelopment
27 activities undertaken
28 3. A description of any agreements entered
29 into by the municipality with regard to the
30 disposition or redevelopment of any property within
31 the redevelopment project area or the area within
32 the State Sales Tax Boundary.
33 (h) With regard to any obligations issued by the
34 municipality:
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1 1. copies of bond ordinances or resolutions
2 2. copies of any official statements
3 3. an analysis prepared by financial advisor
4 or underwriter setting forth: (a) nature and term of
5 obligation; and (b) projected debt service including
6 required reserves and debt coverage.
7 (i) A certified audit report reviewing compliance
8 with this statute performed by an independent public
9 accountant certified and licensed by the authority of the
10 State of Illinois. The financial portion of the audit
11 must be conducted in accordance with Standards for Audits
12 of Governmental Organizations, Programs, Activities, and
13 Functions adopted by the Comptroller General of the
14 United States (1981), as amended. The audit report shall
15 contain a letter from the independent certified public
16 accountant indicating compliance or noncompliance with
17 the requirements of subsection (q) of Section 11-74.4-3.
18 If the audit indicates that expenditures are not in
19 compliance with the law, the Department of Revenue shall
20 withhold State sales and utility tax increment payments
21 to the municipality until compliance has been reached,
22 and an amount equal to the ineligible expenditures has
23 been returned to the Special Tax Allocation Fund.
24 (6.1) After July 29, 1988 any funds which have not been
25 designated for use in a specific development project in the
26 annual report shall be designated as surplus. No funds may
27 be held in the Special Tax Allocation Fund for more than 36
28 months from the date of receipt unless the money is required
29 for payment of contractual obligations for specific
30 development project costs. If held for more than 36 months
31 in violation of the preceding sentence, such funds shall be
32 designated as surplus. Any funds designated as surplus must
33 first be used for early redemption of any bond obligations.
34 Any funds designated as surplus which are not disposed of as
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1 otherwise provided in this paragraph, shall be distributed as
2 surplus as provided in Section 11-74.4-7.
3 (7) Any appropriation made pursuant to this Section for
4 the 1987 State fiscal year shall not exceed the amount of $7
5 million and for the 1988 State fiscal year the amount of $10
6 million. The amount which shall be distributed to each
7 municipality shall be the incremental revenue to which each
8 municipality is entitled as calculated by the Department of
9 Revenue, unless the requests of the municipality exceed the
10 appropriation, then the amount to which each municipality
11 shall be entitled shall be prorated among the municipalities
12 in the same proportion as the increment to which the
13 municipality would be entitled bears to the total increment
14 which all municipalities would receive in the absence of this
15 limitation, provided that no municipality may receive an
16 amount in excess of 15% of the appropriation. For the 1987
17 Net State Sales Tax Increment payable in Fiscal Year 1989, no
18 municipality shall receive more than 7.5% of the total
19 appropriation; provided, however, that any of the
20 appropriation remaining after such distribution shall be
21 prorated among municipalities on the basis of their pro rata
22 share of the total increment. Beginning on January 1, 1993,
23 each municipality's proportional share of the Illinois Tax
24 Increment Fund shall be determined by adding the annual Net
25 State Sales Tax Increment and the annual Net Utility Tax
26 Increment to determine the Annual Total Increment. The ratio
27 of the Annual Total Increment of each municipality to the
28 Annual Total Increment for all municipalities, as most
29 recently calculated by the Department, shall determine the
30 proportional shares of the Illinois Tax Increment Fund to be
31 distributed to each municipality.
32 (7.1) No distribution of Net State Sales Tax Increment
33 to a municipality for an area within a State Sales Tax
34 Boundary shall exceed in any State Fiscal Year an amount
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1 equal to 3 times the sum of the Municipal Sales Tax
2 Increment, the real property tax increment and deposits of
3 funds from other sources, excluding state and federal funds,
4 as certified by the city treasurer to the Department of
5 Revenue for an area within a State Sales Tax Boundary. After
6 July 29, 1988, for those municipalities which issue bonds
7 between June 1, 1988 and 3 years from July 29, 1988 to
8 finance redevelopment projects within the area in a State
9 Sales Tax Boundary, the distribution of Net State Sales Tax
10 Increment during the 16th through 20th years from the date of
11 issuance of the bonds shall not exceed in any State Fiscal
12 Year an amount equal to 2 times the sum of the Municipal
13 Sales Tax Increment, the real property tax increment and
14 deposits of funds from other sources, excluding State and
15 federal funds.
16 (8) Any person who knowingly files or causes to be filed
17 false information for the purpose of increasing the amount of
18 any State tax incremental revenue commits a Class A
19 misdemeanor.
20 (9) The following procedures shall be followed to
21 determine whether municipalities have complied with the Act
22 for the purpose of receiving distributions after July 1, 1989
23 pursuant to subsection (1) of this Section 11-74.4-8a.
24 (a) The Department of Revenue shall conduct a
25 preliminary review of the redevelopment project areas and
26 redevelopment plans pertaining to those municipalities
27 receiving payments from the State pursuant to subsection
28 (1) of Section 8a of this Act for the purpose of
29 determining compliance with the following standards:
30 (1) For any municipality with a population of
31 more than 12,000 as determined by the 1980 U.S.
32 Census: (a) the redevelopment project area, or in
33 the case of a municipality which has more than one
34 redevelopment project area, each such area, must be
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1 contiguous and the total of all such areas shall not
2 comprise more than 25% of the area within the
3 municipal boundaries nor more than 20% of the
4 equalized assessed value of the municipality; (b)
5 the aggregate amount of 1985 taxes in the
6 redevelopment project area, or in the case of a
7 municipality which has more than one redevelopment
8 project area, the total of all such areas, shall be
9 not more than 25% of the total base year taxes paid
10 by retailers and servicemen on transactions at
11 places of business located within the municipality
12 under the Retailers' Occupation Tax Act, the Use Tax
13 Act, the Service Use Tax Act, and the Service
14 Occupation Tax Act. Redevelopment project areas
15 created prior to 1986 are not subject to the above
16 standards if their boundaries were not amended in
17 1986.
18 (2) For any municipality with a population of
19 12,000 or less as determined by the 1980 U.S.
20 Census: (a) the redevelopment project area, or in
21 the case of a municipality which has more than one
22 redevelopment project area, each such area, must be
23 contiguous and the total of all such areas shall not
24 comprise more than 35% of the area within the
25 municipal boundaries nor more than 30% of the
26 equalized assessed value of the municipality; (b)
27 the aggregate amount of 1985 taxes in the
28 redevelopment project area, or in the case of a
29 municipality which has more than one redevelopment
30 project area, the total of all such areas, shall not
31 be more than 35% of the total base year taxes paid
32 by retailers and servicemen on transactions at
33 places of business located within the municipality
34 under the Retailers' Occupation Tax Act, the Use Tax
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1 Act, the Service Use Tax Act, and the Service
2 Occupation Tax Act. Redevelopment project areas
3 created prior to 1986 are not subject to the above
4 standards if their boundaries were not amended in
5 1986.
6 (3) Such preliminary review of the
7 redevelopment project areas applying the above
8 standards shall be completed by November 1, 1988,
9 and on or before November 1, 1988, the Department
10 shall notify each municipality by certified mail,
11 return receipt requested that either (1) the
12 Department requires additional time in which to
13 complete its preliminary review; or (2) the
14 Department is issuing either (a) a Certificate of
15 Eligibility or (b) a Notice of Review. If the
16 Department notifies a municipality that it requires
17 additional time to complete its preliminary
18 investigation, it shall complete its preliminary
19 investigation no later than February 1, 1989, and by
20 February 1, 1989 shall issue to each municipality
21 either (a) a Certificate of Eligibility or (b) a
22 Notice of Review. A redevelopment project area for
23 which a Certificate of Eligibility has been issued
24 shall be deemed a "State Sales Tax Boundary."
25 (4) The Department of Revenue shall also issue
26 a Notice of Review if the Department has received a
27 request by November 1, 1988 to conduct such a review
28 from taxpayers in the municipality, local taxing
29 districts located in the municipality or the State
30 of Illinois, or if the redevelopment project area
31 has more than 5 retailers and has had growth in
32 State sales tax revenue of more than 15% from
33 calendar year 1985 to 1986.
34 (b) For those municipalities receiving a Notice of
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1 Review, the Department will conduct a secondary review
2 consisting of: (i) application of the above standards
3 contained in subsection (9)(a)(1)(a) and (b) or
4 (9)(a)(2)(a) and (b), and (ii) the definitions of
5 blighted and conservation area provided for in Section
6 11-74.4-3. Such secondary review shall be completed by
7 July 1, 1989.
8 Upon completion of the secondary review, the
9 Department will issue (a) a Certificate of Eligibility or
10 (b) a Preliminary Notice of Deficiency. Any municipality
11 receiving a Preliminary Notice of Deficiency may amend
12 its redevelopment project area to meet the standards and
13 definitions set forth in this paragraph (b). This amended
14 redevelopment project area shall become the "State Sales
15 Tax Boundary" for purposes of determining the State Sales
16 Tax Increment.
17 (c) If the municipality advises the Department of
18 its intent to comply with the requirements of paragraph
19 (b) of this subsection outlined in the Preliminary Notice
20 of Deficiency, within 120 days of receiving such notice
21 from the Department, the municipality shall submit
22 documentation to the Department of the actions it has
23 taken to cure any deficiencies. Thereafter, within 30
24 days of the receipt of the documentation, the Department
25 shall either issue a Certificate of Eligibility or a
26 Final Notice of Deficiency. If the municipality fails to
27 advise the Department of its intent to comply or fails to
28 submit adequate documentation of such cure of
29 deficiencies the Department shall issue a Final Notice of
30 Deficiency that provides that the municipality is
31 ineligible for payment of the Net State Sales Tax
32 Increment.
33 (d) If the Department issues a final determination
34 of ineligibility, the municipality shall have 30 days
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1 from the receipt of determination to protest and request
2 a hearing. Such hearing shall be conducted in accordance
3 with Sections 10-25, 10-35, 10-40, and 10-50 of the
4 Illinois Administrative Procedure Act. The decision
5 following the hearing shall be subject to review under
6 the Administrative Review Law.
7 (e) Any Certificate of Eligibility issued pursuant
8 to this subsection 9 shall be binding only on the State
9 for the purposes of establishing municipal eligibility to
10 receive revenue pursuant to subsection (1) of this
11 Section 11-74.4-8a.
12 (f) It is the intent of this subsection that the
13 periods of time to cure deficiencies shall be in addition
14 to all other periods of time permitted by this Section,
15 regardless of the date by which plans were originally
16 required to be adopted. To cure said deficiencies,
17 however, the municipality shall be required to follow the
18 procedures and requirements pertaining to amendments, as
19 provided in Sections 11-74.4-5 and 11-74.4-6 of this Act.
20 (10) If a municipality adopts a State Sales Tax Boundary
21 in accordance with the provisions of subsection (9) of this
22 Section, such boundaries shall subsequently be utilized to
23 determine Revised Initial Sales Tax Amounts and the Net State
24 Sales Tax Increment; provided, however, that such revised
25 State Sales Tax Boundary shall not have any effect upon the
26 boundary of the redevelopment project area established for
27 the purposes of determining the ad valorem taxes on real
28 property pursuant to Sections 11-74.4-7 and 11-74.4-8 of this
29 Act nor upon the municipality's authority to implement the
30 redevelopment plan for that redevelopment project area. For
31 any redevelopment project area with a smaller State Sales Tax
32 Boundary within its area, the municipality may annually elect
33 to deposit the Municipal Sales Tax Increment for the
34 redevelopment project area in the special tax allocation fund
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1 and shall certify the amount to the Department prior to
2 receipt of the Net State Sales Tax Increment. Any
3 municipality required by subsection (9) to establish a State
4 Sales Tax Boundary for one or more of its redevelopment
5 project areas shall submit all necessary information required
6 by the Department concerning such boundary and the retailers
7 therein, by October 1, 1989, after complying with the
8 procedures for amendment set forth in Sections 11-74.4-5 and
9 11-74.4-6 of this Act. Net State Sales Tax Increment
10 produced within the State Sales Tax Boundary shall be spent
11 only within that area. However expenditures of all municipal
12 property tax increment and municipal sales tax increment in a
13 redevelopment project area are not required to be spent
14 within the smaller State Sales Tax Boundary within such
15 redevelopment project area.
16 (11) The Department of Revenue shall have the authority
17 to issue rules and regulations for purposes of this Section.
18 and regulations for purposes of this Section.
19 (12) If, under Section 5.4.1 of the Illinois Enterprise
20 Zone Act, a municipality determines that property that lies
21 within a State Sales Tax Boundary has an improvement,
22 rehabilitation, or renovation that is entitled to a property
23 tax abatement, then that property along with any
24 improvements, rehabilitation, or renovations shall be
25 immediately removed from any State Sales Tax Boundary. The
26 municipality that made the determination shall notify the
27 Department of Revenue within 30 days after the determination.
28 Once a property is removed from the State Sales Tax Boundary
29 because of the existence of a property tax abatement
30 resulting from an enterprise zone, then that property shall
31 not be permitted to be amended into a State Sales Tax
32 Boundary.
33 (Source: P.A. 90-258, eff. 7-30-97.)
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1 (65 ILCS 5/11-74.4-9) (from Ch. 24, par. 11-74.4-9)
2 Sec. 11-74.4-9. (a) If a municipality by ordinance
3 provides for tax increment allocation financing pursuant to
4 Section 11-74.4-8, the county clerk immediately thereafter
5 shall determine (1) the most recently ascertained equalized
6 assessed value of each lot, block, tract or parcel of real
7 property within such redevelopment project area from which
8 shall be deducted the homestead exemptions provided by
9 Sections 15-170 and 15-175 of the Property Tax Code, which
10 value shall be the "initial equalized assessed value" of each
11 such piece of property, and (2) the total equalized assessed
12 value of all taxable real property within such redevelopment
13 project area by adding together the most recently ascertained
14 equalized assessed value of each taxable lot, block, tract,
15 or parcel of real property within such project area, from
16 which shall be deducted the homestead exemptions provided by
17 Sections 15-170 and 15-175 of the Property Tax Code, and
18 shall certify such amount as the "total initial equalized
19 assessed value" of the taxable real property within such
20 project area.
21 (b) In reference to any municipality which has adopted
22 tax increment financing after January 1, 1978, and in respect
23 to which the county clerk has certified the "total initial
24 equalized assessed value" of the property in the
25 redevelopment area, the municipality may thereafter request
26 the clerk in writing to adjust the initial equalized value of
27 all taxable real property within the redevelopment project
28 area by deducting therefrom the exemptions provided for by
29 Sections 15-170 and 15-175 of the Property Tax Code
30 applicable to each lot, block, tract or parcel of real
31 property within such redevelopment project area. The county
32 clerk shall immediately after the written request to adjust
33 the total initial equalized value is received determine the
34 total homestead exemptions in the redevelopment project area
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1 provided by Sections 15-170 and 15-175 of the Property Tax
2 Code by adding together the homestead exemptions provided by
3 said Sections on each lot, block, tract or parcel of real
4 property within such redevelopment project area and then
5 shall deduct the total of said exemptions from the total
6 initial equalized assessed value. The county clerk shall
7 then promptly certify such amount as the "total initial
8 equalized assessed value as adjusted" of the taxable real
9 property within such redevelopment project area.
10 (c) After the county clerk has certified the "total
11 initial equalized assessed value" of the taxable real
12 property in such area, then in respect to every taxing
13 district containing a redevelopment project area, the county
14 clerk or any other official required by law to ascertain the
15 amount of the equalized assessed value of all taxable
16 property within such district for the purpose of computing
17 the rate per cent of tax to be extended upon taxable property
18 within such district, shall in every year that tax increment
19 allocation financing is in effect ascertain the amount of
20 value of taxable property in a redevelopment project area by
21 including in such amount the lower of the current equalized
22 assessed value or the certified "total initial equalized
23 assessed value" of all taxable real property in such area,
24 except that after he has certified the "total initial
25 equalized assessed value as adjusted" he shall in the year of
26 said certification if tax rates have not been extended and in
27 every year thereafter that tax increment allocation financing
28 is in effect ascertain the amount of value of taxable
29 property in a redevelopment project area by including in such
30 amount the lower of the current equalized assessed value or
31 the certified "total initial equalized assessed value as
32 adjusted" of all taxable real property in such area. The
33 rate per cent of tax determined shall be extended to the
34 current equalized assessed value of all property in the
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1 redevelopment project area in the same manner as the rate per
2 cent of tax is extended to all other taxable property in the
3 taxing district. The method of extending taxes established
4 under this Section shall terminate when the municipality
5 adopts an ordinance dissolving the special tax allocation
6 fund for the redevelopment project area. This Division shall
7 not be construed as relieving property owners within a
8 redevelopment project area from paying a uniform rate of
9 taxes upon the current equalized assessed value of their
10 taxable property as provided in the Property Tax Code. In
11 determining the tax rates under this Act, taxes shall not be
12 levied, extended, or collected in a manner and with the
13 effect that the taxes of a special service area, including
14 taxes levied to retire the bonds of a special service area,
15 result in the special service area generating tax increment
16 revenue as a taxing district under this Act.
17 (Source: P.A. 88-670, eff. 12-2-94.)
18 Section 99. Effective date. This Act takes effect 60
19 days after becoming law.
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1 INDEX
2 Statutes amended in order of appearance
3 SEE INDEX
4 35 ILCS 200/18-185
5 50 ILCS 310/3 from Ch. 85, par. 703
6 65 ILCS 5/11-74.4-3 from Ch. 24, par. 11-74.4-3
7 65 ILCS 5/11-74.4-4 from Ch. 24, par. 11-74.4-4
8 65 ILCS 5/11-74.4-4.1
9 65 ILCS 5/11-74.4-4.2 new
10 65 ILCS 5/11-74.4-5 from Ch. 24, par. 11-74.4-5
11 65 ILCS 5/11-74.4-6 from Ch. 24, par. 11-74.4-6
12 65 ILCS 5/11-74.4-7 from Ch. 24, par. 11-74.4-7
13 65 ILCS 5/11-74.4-7.1
14 65 ILCS 5/11-74.4-8 from Ch. 24, par. 11-74.4-8
15 65 ILCS 5/11-74.4-8a from Ch. 24, par. 11-74.4-8a
16 65 ILCS 5/11-74.4-9 from Ch. 24, par. 11-74.4-9