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91_SB1032ham001
LRB9101829PTpkam02
1 AMENDMENT TO SENATE BILL 1032
2 AMENDMENT NO. . Amend Senate Bill 1032 by replacing
3 everything after the enacting clause with the following:
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.
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1 For the 1991 through 1994 levy years only, "taxing district"
2 includes only each non-home rule taxing district having the
3 majority of its 1990 equalized assessed value within any
4 county or counties contiguous to a county with 3,000,000 or
5 more inhabitants. Beginning with the 1995 levy year, "taxing
6 district" includes only each non-home rule taxing district
7 subject to this Law before the 1995 levy year and each
8 non-home rule taxing district not subject to this Law before
9 the 1995 levy year having the majority of its 1994 equalized
10 assessed value in an affected county or counties. Beginning
11 with the levy year in which this Law becomes applicable to a
12 taxing district as provided in Section 18-213, "taxing
13 district" also includes those taxing districts made subject
14 to this Law as provided in Section 18-213.
15 "Aggregate extension" for taxing districts to which this
16 Law applied before the 1995 levy year means the annual
17 corporate extension for the taxing district and those special
18 purpose extensions that are made annually for the taxing
19 district, excluding special purpose extensions: (a) made for
20 the taxing district to pay interest or principal on general
21 obligation bonds that were approved by referendum; (b) made
22 for any taxing district to pay interest or principal on
23 general obligation bonds issued before October 1, 1991; (c)
24 made for any taxing district to pay interest or principal on
25 bonds issued to refund or continue to refund those bonds
26 issued before October 1, 1991; (d) made for any taxing
27 district to pay interest or principal on bonds issued to
28 refund or continue to refund bonds issued after October 1,
29 1991 that were approved by referendum; (e) made for any
30 taxing district to pay interest or principal on revenue bonds
31 issued before October 1, 1991 for payment of which a property
32 tax levy or the full faith and credit of the unit of local
33 government is pledged; however, a tax for the payment of
34 interest or principal on those bonds shall be made only after
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1 the governing body of the unit of local government finds that
2 all other sources for payment are insufficient to make those
3 payments; (f) made for payments under a building commission
4 lease when the lease payments are for the retirement of bonds
5 issued by the commission before October 1, 1991, to pay for
6 the building project; (g) made for payments due under
7 installment contracts entered into before October 1, 1991;
8 (h) made for payments of principal and interest on bonds
9 issued under the Metropolitan Water Reclamation District Act
10 to finance construction projects initiated before October 1,
11 1991; (i) made for payments of principal and interest on
12 limited bonds, as defined in Section 3 of the Local
13 Government Debt Reform Act, in an amount not to exceed the
14 debt service extension base less the amount in items (b),
15 (c), (e), and (h) of this definition for non-referendum
16 obligations, except obligations initially issued pursuant to
17 referendum; (j) made for payments of principal and interest
18 on bonds issued under Section 15 of the Local Government Debt
19 Reform Act; and (k) made by a school district that
20 participates in the Special Education District of Lake
21 County, created by special education joint agreement under
22 Section 10-22.31 of the School Code, for payment of the
23 school district's share of the amounts required to be
24 contributed by the Special Education District of Lake County
25 to the Illinois Municipal Retirement Fund under Article 7 of
26 the Illinois Pension Code; the amount of any extension under
27 this item (k) shall be certified by the school district to
28 the county clerk.
29 "Aggregate extension" for the taxing districts to which
30 this Law did not apply before the 1995 levy year (except
31 taxing districts subject to this Law in accordance with
32 Section 18-213) means the annual corporate extension for the
33 taxing district and those special purpose extensions that are
34 made annually for the taxing district, excluding special
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1 purpose extensions: (a) made for the taxing district to pay
2 interest or principal on general obligation bonds that were
3 approved by referendum; (b) made for any taxing district to
4 pay interest or principal on general obligation bonds issued
5 before March 1, 1995; (c) made for any taxing district to pay
6 interest or principal on bonds issued to refund or continue
7 to refund those bonds issued before March 1, 1995; (d) made
8 for any taxing district to pay interest or principal on bonds
9 issued to refund or continue to refund bonds issued after
10 March 1, 1995 that were approved by referendum; (e) made for
11 any taxing district to pay interest or principal on revenue
12 bonds issued before March 1, 1995 for payment of which a
13 property tax levy or the full faith and credit of the unit of
14 local government is pledged; however, a tax for the payment
15 of interest or principal on those bonds shall be made only
16 after the governing body of the unit of local government
17 finds that all other sources for payment are insufficient to
18 make those payments; (f) made for payments under a building
19 commission lease when the lease payments are for the
20 retirement of bonds issued by the commission before March 1,
21 1995 to pay for the building project; (g) made for payments
22 due under installment contracts entered into before March 1,
23 1995; (h) made for payments of principal and interest on
24 bonds issued under the Metropolitan Water Reclamation
25 District Act to finance construction projects initiated
26 before October 1, 1991; (i) made for payments of principal
27 and interest on limited bonds, as defined in Section 3 of the
28 Local Government Debt Reform Act, in an amount not to exceed
29 the debt service extension base less the amount in items (b),
30 (c), and (e) of this definition for non-referendum
31 obligations, except obligations initially issued pursuant to
32 referendum and bonds described in subsection (h) of this
33 definition; (j) made for payments of principal and interest
34 on bonds issued under Section 15 of the Local Government Debt
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1 Reform Act; (k) made for payments of principal and interest
2 on bonds authorized by Public Act 88-503 and issued under
3 Section 20a of the Chicago Park District Act for aquarium or
4 museum projects; and (l) made for payments of principal and
5 interest on bonds authorized by Public Act 87-1191 and issued
6 under Section 42 of the Cook County Forest Preserve District
7 Act for zoological park projects.
8 "Aggregate extension" for all taxing districts to which
9 this Law applies in accordance with Section 18-213, except
10 for those taxing districts subject to paragraph (2) of
11 subsection (e) of Section 18-213, means the annual corporate
12 extension for the taxing district and those special purpose
13 extensions that are made annually for the taxing district,
14 excluding special purpose extensions: (a) made for the taxing
15 district to pay interest or principal on general obligation
16 bonds that were approved by referendum; (b) made for any
17 taxing district to pay interest or principal on general
18 obligation bonds issued before the date on which the
19 referendum making this Law applicable to the taxing district
20 is held; (c) made for any taxing district to pay interest or
21 principal on bonds issued to refund or continue to refund
22 those bonds issued before the date on which the referendum
23 making this Law applicable to the taxing district is held;
24 (d) made for any taxing district to pay interest or principal
25 on bonds issued to refund or continue to refund bonds issued
26 after the date on which the referendum making this Law
27 applicable to the taxing district is held if the bonds were
28 approved by referendum after the date on which the referendum
29 making this Law applicable to the taxing district is held;
30 (e) made for any taxing district to pay interest or principal
31 on revenue bonds issued before the date on which the
32 referendum making this Law applicable to the taxing district
33 is held for payment of which a property tax levy or the full
34 faith and credit of the unit of local government is pledged;
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1 however, a tax for the payment of interest or principal on
2 those bonds shall be made only after the governing body of
3 the unit of local government finds that all other sources for
4 payment are insufficient to make those payments; (f) made for
5 payments under a building commission lease when the lease
6 payments are for the retirement of bonds issued by the
7 commission before the date on which the referendum making
8 this Law applicable to the taxing district is held to pay for
9 the building project; (g) made for payments due under
10 installment contracts entered into before the date on which
11 the referendum making this Law applicable to the taxing
12 district is held; (h) made for payments of principal and
13 interest on limited bonds, as defined in Section 3 of the
14 Local Government Debt Reform Act, in an amount not to exceed
15 the debt service extension base less the amount in items (b),
16 (c), and (e) of this definition for non-referendum
17 obligations, except obligations initially issued pursuant to
18 referendum; (i) made for payments of principal and interest
19 on bonds issued under Section 15 of the Local Government Debt
20 Reform Act; and (j) made for a qualified airport authority to
21 pay interest or principal on general obligation bonds issued
22 for the purpose of paying obligations due under, or financing
23 airport facilities required to be acquired, constructed,
24 installed or equipped pursuant to, contracts entered into
25 before March 1, 1996 (but not including any amendments to
26 such a contract taking effect on or after that date).
27 "Aggregate extension" for all taxing districts to which
28 this Law applies in accordance with paragraph (2) of
29 subsection (e) of Section 18-213 means the annual corporate
30 extension for the taxing district and those special purpose
31 extensions that are made annually for the taxing district,
32 excluding special purpose extensions: (a) made for the taxing
33 district to pay interest or principal on general obligation
34 bonds that were approved by referendum; (b) made for any
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1 taxing district to pay interest or principal on general
2 obligation bonds issued before the effective date of this
3 amendatory Act of 1997; (c) made for any taxing district to
4 pay interest or principal on bonds issued to refund or
5 continue to refund those bonds issued before the effective
6 date of this amendatory Act of 1997; (d) made for any taxing
7 district to pay interest or principal on bonds issued to
8 refund or continue to refund bonds issued after the effective
9 date of this amendatory Act of 1997 if the bonds were
10 approved by referendum after the effective date of this
11 amendatory Act of 1997; (e) made for any taxing district to
12 pay interest or principal on revenue bonds issued before the
13 effective date of this amendatory Act of 1997 for payment of
14 which a property tax levy or the full faith and credit of the
15 unit of local government is pledged; however, a tax for the
16 payment of interest or principal on those bonds shall be made
17 only after the governing body of the unit of local government
18 finds that all other sources for payment are insufficient to
19 make those payments; (f) made for payments under a building
20 commission lease when the lease payments are for the
21 retirement of bonds issued by the commission before the
22 effective date of this amendatory Act of 1997 to pay for the
23 building project; (g) made for payments due under installment
24 contracts entered into before the effective date of this
25 amendatory Act of 1997; (h) made for payments of principal
26 and interest on limited bonds, as defined in Section 3 of the
27 Local Government Debt Reform Act, in an amount not to exceed
28 the debt service extension base less the amount in items (b),
29 (c), and (e) of this definition for non-referendum
30 obligations, except obligations initially issued pursuant to
31 referendum; (i) made for payments of principal and interest
32 on bonds issued under Section 15 of the Local Government Debt
33 Reform Act; and (j) made for a qualified airport authority to
34 pay interest or principal on general obligation bonds issued
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1 for the purpose of paying obligations due under, or financing
2 airport facilities required to be acquired, constructed,
3 installed or equipped pursuant to, contracts entered into
4 before March 1, 1996 (but not including any amendments to
5 such a contract taking effect on or after that date).
6 "Debt service extension base" means an amount equal to
7 that portion of the extension for a taxing district for the
8 1994 levy year, or for those taxing districts subject to this
9 Law in accordance with Section 18-213, except for those
10 subject to paragraph (2) of subsection (e) of Section 18-213,
11 for the levy year in which the referendum making this Law
12 applicable to the taxing district is held, or for those
13 taxing districts subject to this Law in accordance with
14 paragraph (2) of subsection (e) of Section 18-213 for the
15 1996 levy year, constituting an extension for payment of
16 principal and interest on bonds issued by the taxing district
17 without referendum, but not including (i) bonds authorized by
18 Public Act 88-503 and issued under Section 20a of the Chicago
19 Park District Act for aquarium and museum projects; (ii)
20 bonds issued under Section 15 of the Local Government Debt
21 Reform Act; or (iii) refunding obligations issued to refund
22 or to continue to refund obligations initially issued
23 pursuant to referendum. The debt service extension base may
24 be established or increased as provided under Section 18-212.
25 "Special purpose extensions" include, but are not limited
26 to, extensions for levies made on an annual basis for
27 unemployment and workers' compensation, self-insurance,
28 contributions to pension plans, and extensions made pursuant
29 to Section 6-601 of the Illinois Highway Code for a road
30 district's permanent road fund whether levied annually or
31 not. The extension for a special service area is not
32 included in the aggregate extension.
33 "Aggregate extension base" means the taxing district's
34 last preceding aggregate extension as adjusted under Sections
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1 18-215 through 18-230.
2 "Levy year" has the same meaning as "year" under Section
3 1-155.
4 "New property" means (i) the assessed value, after final
5 board of review or board of appeals action, of new
6 improvements or additions to existing improvements on any
7 parcel of real property that increase the assessed value of
8 that real property during the levy year multiplied by the
9 equalization factor issued by the Department under Section
10 17-30 and (ii) the assessed value, after final board of
11 review or board of appeals action, of real property not
12 exempt from real estate taxation, which real property was
13 exempt from real estate taxation for any portion of the
14 immediately preceding levy year, multiplied by the
15 equalization factor issued by the Department under Section
16 17-30. In addition, the county clerk in a county containing
17 a population of 3,000,000 or more shall include in the 1997
18 recovered tax increment value for any school district, any
19 recovered tax increment value that was applicable to the 1995
20 tax year calculations.
21 "Qualified airport authority" means an airport authority
22 organized under the Airport Authorities Act and located in a
23 county bordering on the State of Wisconsin and having a
24 population in excess of 200,000 and not greater than 500,000.
25 "Recovered tax increment value" means, except as
26 otherwise provided in this paragraph, the amount of the
27 current year's equalized assessed value, in the first year
28 after a municipality terminates the designation of an area as
29 a redevelopment project area previously established under the
30 Tax Increment Allocation Development Act in the Illinois
31 Municipal Code, previously established under the Industrial
32 Jobs Recovery Law in the Illinois Municipal Code, or
33 previously established under the Economic Development Area
34 Tax Increment Allocation Act, of each taxable lot, block,
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1 tract, or parcel of real property in the redevelopment
2 project area over and above the initial equalized assessed
3 value of each property in the redevelopment project area.
4 For the taxes which are extended for the 1997 levy year, the
5 recovered tax increment value for a non-home rule taxing
6 district that first became subject to this Law for the 1995
7 levy year because a majority of its 1994 equalized assessed
8 value was in an affected county or counties shall be
9 increased if a municipality terminated the designation of an
10 area in 1993 as a redevelopment project area previously
11 established under the Tax Increment Allocation Development
12 Act in the Illinois Municipal Code, previously established
13 under the Industrial Jobs Recovery Law in the Illinois
14 Municipal Code, or previously established under the Economic
15 Development Area Tax Increment Allocation Act, by an amount
16 equal to the 1994 equalized assessed value of each taxable
17 lot, block, tract, or parcel of real property in the
18 redevelopment project area over and above the initial
19 equalized assessed value of each property in the
20 redevelopment project area. In the first year after a
21 municipality removes a taxable lot, block, tract, or parcel
22 of real property from a redevelopment project area
23 established under the Tax Increment Allocation Development
24 Act in the Illinois Municipal Code, the Industrial Jobs
25 Recovery Law in the Illinois Municipal Code, or the Economic
26 Development Area Tax Increment Allocation Act, "recovered tax
27 increment value" means the amount of the current year's
28 equalized assessed value of each taxable lot, block, tract,
29 or parcel of real property removed from the redevelopment
30 project area over and above the initial equalized assessed
31 value of that real property before removal from the
32 redevelopment project area.
33 Except as otherwise provided in this Section, "limiting
34 rate" means a fraction the numerator of which is the last
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1 preceding aggregate extension base times an amount equal to
2 one plus the extension limitation defined in this Section and
3 the denominator of which is the current year's equalized
4 assessed value of all real property in the territory under
5 the jurisdiction of the taxing district during the prior levy
6 year. For those taxing districts that reduced their
7 aggregate extension for the last preceding levy year, the
8 highest aggregate extension in any of the last 3 preceding
9 levy years shall be used for the purpose of computing the
10 limiting rate. The denominator shall not include new
11 property. The denominator shall not include the recovered
12 tax increment value.
13 (Source: P.A. 89-1, eff. 2-12-95; 89-138, eff. 7-14-95;
14 89-385, eff. 8-18-95; 89-436, eff. 1-1-96; 89-449, eff.
15 6-1-96; 89-510, eff. 7-11-96; 89-718, eff. 3-7-97; 90-485,
16 eff. 1-1-98; 90-511, eff. 8-22-97; 90-568, eff. 1-1-99;
17 90-616, eff. 7-10-98; 90-655, eff. 7-30-98; revised
18 10-28-98.)
19 Section 10. The Illinois Municipal Code is amended by
20 changing Sections 11-74.4-3, 11-74.4-4, 11-74.4-4.1,
21 11-74.4-5, 11-74.4-6, 11-74.4-7, 11-74.4-7.1, 11-74.4-8, and
22 11-74.4-8a and adding Section 11-74.4-4.2 as follows:
23 (65 ILCS 5/11-74.4-3) (from Ch. 24, par. 11-74.4-3)
24 Sec. 11-74.4-3. Definitions. The following terms,
25 wherever used or referred to in this Division 74.4 shall have
26 the following respective meanings, unless in any case a
27 different meaning clearly appears from the context.
28 (a) For any redevelopment project area that has been
29 designated pursuant to this Section by an ordinance adopted
30 prior to the effective date of this amendatory Act of the
31 91st General Assembly, "blighted area" shall have the meaning
32 set forth in this Section prior to the effective date of this
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1 amendatory Act of the 91st General Assembly.
2 On and after the effective date of this amendatory Act of
3 the 91st General Assembly, "blighted area" means any improved
4 or vacant area within the boundaries of a redevelopment
5 project area located within the territorial limits of the
6 municipality where:
7 (1) If improved, industrial, commercial, and
8 residential buildings or improvements are detrimental to
9 the public safety, health, or welfare because of a
10 combination of 5 or more of the following factors, each
11 of which is (i) present, with that presence documented,
12 to a meaningful extent so that a municipality may
13 reasonably find that the factor is clearly present within
14 the intent of the Act and (ii) reasonably distributed
15 throughout the improved part of the redevelopment project
16 area:
17 (A) Dilapidation. An advanced state of
18 disrepair or neglect of necessary repairs to the
19 primary structural components of buildings or
20 improvements in such a combination that a documented
21 building condition analysis determines that major
22 repair is required or the defects are so serious and
23 so extensive that the buildings must be removed.
24 (B) Obsolescence. The condition or process of
25 falling into disuse. Structures have become
26 ill-suited for the original use.
27 (C) Deterioration. With respect to buildings,
28 defects including, but not limited to, major defects
29 in the secondary building components such as doors,
30 windows, porches, gutters and downspouts, and
31 fascia. With respect to surface improvements, that
32 the condition of roadways, alleys, curbs, gutters,
33 sidewalks, off-street parking, and surface storage
34 areas evidence deterioration, including, but not
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1 limited to, surface cracking, crumbling, potholes,
2 depressions, loose paving material, and weeds
3 protruding through paved surfaces.
4 (D) Presence of structures below minimum code
5 standards. All structures that do not meet the
6 standards of zoning, subdivision, building, fire,
7 and other governmental codes applicable to property,
8 but not including housing and property maintenance
9 codes.
10 (E) Illegal use of individual structures. The
11 use of structures in violation of applicable
12 federal, State, or local laws, exclusive of those
13 applicable to the presence of structures below
14 minimum code standards.
15 (F) Excessive vacancies. The presence of
16 buildings that are unoccupied or under-utilized and
17 that represent an adverse influence on the area
18 because of the frequency, extent, or duration of the
19 vacancies.
20 (G) Lack of ventilation, light, or sanitary
21 facilities. The absence of adequate ventilation for
22 light or air circulation in spaces or rooms without
23 windows, or that require the removal of dust, odor,
24 gas, smoke, or other noxious airborne materials.
25 Inadequate natural light and ventilation means the
26 absence of skylights or windows for interior spaces
27 or rooms and improper window sizes and amounts by
28 room area to window area ratios. Inadequate
29 sanitary facilities refers to the absence or
30 inadequacy of garbage storage and enclosure,
31 bathroom facilities, hot water and kitchens, and
32 structural inadequacies preventing ingress and
33 egress to and from all rooms and units within a
34 building.
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1 (H) Inadequate utilities. Underground and
2 overhead utilities such as storm sewers and storm
3 drainage, sanitary sewers, water lines, and gas,
4 telephone, and electrical services that are shown to
5 be inadequate. Inadequate utilities are those that
6 are: (i) of insufficient capacity to serve the uses
7 in the redevelopment project area, (ii)
8 deteriorated, antiquated, obsolete, or in disrepair,
9 or (iii) lacking within the redevelopment project
10 area.
11 (I) Excessive land coverage and overcrowding
12 of structures and community facilities. The
13 over-intensive use of property and the crowding of
14 buildings and accessory facilities onto a site.
15 Examples of problem conditions warranting the
16 designation of an area as one exhibiting excessive
17 land coverage are: (i) the presence of buildings
18 either improperly situated on parcels or located on
19 parcels of inadequate size and shape in relation to
20 present-day standards of development for health and
21 safety and (ii) the presence of multiple buildings
22 on a single parcel. For there to be a finding of
23 excessive land coverage, these parcels must exhibit
24 one or more of the following conditions:
25 insufficient provision for light and air within or
26 around buildings, increased threat of spread of fire
27 due to the close proximity of buildings, lack of
28 adequate or proper access to a public right-of-way,
29 lack of reasonably required off-street parking, or
30 inadequate provision for loading and service.
31 (J) Deleterious land use or layout. The
32 existence of incompatible land-use relationships,
33 buildings occupied by inappropriate mixed-uses, or
34 uses considered to be noxious, offensive, or
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1 unsuitable for the surrounding area.
2 (K) Environmental clean-up. The proposed
3 redevelopment project area has incurred Illinois
4 Environmental Protection Agency or United States
5 Environmental Protection Agency remediation costs
6 for, or a study conducted by an independent
7 consultant recognized as having expertise in
8 environmental remediation has determined a need for,
9 the clean-up of hazardous waste, hazardous
10 substances, or underground storage tanks required by
11 State or federal law, provided that the remediation
12 costs constitute a material impediment to the
13 development or redevelopment of the redevelopment
14 project area.
15 (L) Lack of community planning. The proposed
16 redevelopment project area was developed prior to or
17 without the benefit or guidance of a community plan.
18 This means that the development occurred prior to
19 the adoption by the municipality of a comprehensive
20 or other community plan or that the plan was not
21 followed at the time of the area's development.
22 This factor must be documented by evidence of
23 adverse or incompatible land-use relationships,
24 inadequate street layout, improper subdivision,
25 parcels of inadequate shape and size to meet
26 contemporary development standards, or other
27 evidence demonstrating an absence of effective
28 community planning.
29 (M) The total equalized assessed value of the
30 proposed redevelopment project area has declined for
31 3 of the last 5 calendar years prior to the year in
32 which the redevelopment project area is designated
33 or is increasing at an annual rate that is less than
34 the balance of the municipality for 3 of the last 5
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1 calendar years for which information is available or
2 is increasing at an annual rate that is less than
3 the Consumer Price Index for All Urban Consumers
4 published by the United States Department of Labor
5 or successor agency for 3 of the last 5 calendar
6 years prior to the year in which the redevelopment
7 project area is designated.
8 (2) If vacant, the sound growth of the
9 redevelopment project area is impaired by a combination
10 of 2 or more of the following factors, each of which is
11 (i) present, with that presence documented, to a
12 meaningful extent so that a municipality may reasonably
13 find that the factor is clearly present within the intent
14 of the Act and (ii) reasonably distributed throughout the
15 vacant part of the redevelopment project area:
16 (A) Obsolete platting of vacant land that
17 results in parcels of limited or narrow size or
18 configurations of parcels of irregular size or shape
19 that would be difficult to develop on a planned
20 basis and in a manner compatible with contemporary
21 standards and requirements, or platting that failed
22 to create rights-of-ways for streets or alleys or
23 that created inadequate right-of-way widths for
24 streets, alleys, or other public rights-of-way or
25 that omitted easements for public utilities.
26 (B) Diversity of ownership of parcels of
27 vacant land sufficient in number to retard or impede
28 the ability to assemble the land for development.
29 (C) Tax and special assessment delinquencies
30 exist or the property has been the subject of tax
31 sales under the Property Tax Code within the last 5
32 years.
33 (D) Deterioration of structures or site
34 improvements in neighboring areas adjacent to the
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1 vacant land.
2 (E) The area has incurred Illinois
3 Environmental Protection Agency or United States
4 Environmental Protection Agency remediation costs
5 for, or a study conducted by an independent
6 consultant recognized as having expertise in
7 environmental remediation has determined a need for,
8 the clean-up of hazardous waste, hazardous
9 substances, or underground storage tanks required by
10 State or federal law, provided that the remediation
11 costs constitute a material impediment to the
12 development or redevelopment of the redevelopment
13 project area.
14 (F) The total equalized assessed value of the
15 proposed redevelopment project area has declined for
16 3 of the last 5 calendar years prior to the year in
17 which the redevelopment project area is designated
18 or is increasing at an annual rate that is less than
19 the balance of the municipality for 3 of the last 5
20 calendar years for which information is available or
21 is increasing at an annual rate that is less than
22 the Consumer Price Index for All Urban Consumers
23 published by the United States Department of Labor
24 or successor agency for 3 of the last 5 calendar
25 years prior to the year in which the redevelopment
26 project area is designated.
27 (3) If vacant, the sound growth of the
28 redevelopment project area is impaired by one of the
29 following factors that (i) is present, with that presence
30 documented, to a meaningful extent so that a municipality
31 may reasonably find that the factor is clearly present
32 within the intent of the Act and (ii) is reasonably
33 distributed throughout the vacant part of the
34 redevelopment project area:
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1 (A) The area consists of one or more unused
2 quarries, mines, or strip mine ponds.
3 (B) The area consists of unused railyards,
4 rail tracks, or railroad rights-of-way.
5 (C) The area, prior to its designation, is
6 subject to chronic flooding that adversely impacts
7 on real property in the area as certified by a
8 registered professional engineer or appropriate
9 regulatory agency.
10 (D) The area consists of an unused or illegal
11 disposal site containing earth, stone, building
12 debris, or similar materials that were removed from
13 construction, demolition, excavation, or dredge
14 sites.
15 (E) Prior to the effective date of this
16 amendatory Act of the 91st General Assembly, the
17 area is not less than 50 nor more than 100 acres and
18 75% of which is vacant (notwithstanding that the
19 area has been used for commercial agricultural
20 purposes within 5 years prior to the designation of
21 the redevelopment project area), and the area meets
22 at least one of the factors itemized in paragraph
23 (1) of this subsection, the area has been designated
24 as a town or village center by ordinance or
25 comprehensive plan adopted prior to January 1, 1982,
26 and the area has not been developed for that
27 designated purpose.
28 (F) The area qualified as a blighted improved
29 area immediately prior to becoming vacant, unless
30 there has been substantial private investment in the
31 immediately surrounding area., if improved,
32 industrial, commercial and residential buildings or
33 improvements, because of a combination of 5 or more
34 of the following factors: age; dilapidation;
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1 obsolescence; deterioration; illegal use of
2 individual structures; presence of structures below
3 minimum code standards; excessive vacancies;
4 overcrowding of structures and community facilities;
5 lack of ventilation, light or sanitary facilities;
6 inadequate utilities; excessive land coverage;
7 deleterious land use or layout; depreciation of
8 physical maintenance; lack of community planning, is
9 detrimental to the public safety, health, morals or
10 welfare, or if vacant, the sound growth of the
11 taxing districts is impaired by, (1) a combination
12 of 2 or more of the following factors: obsolete
13 platting of the vacant land; diversity of ownership
14 of such land; tax and special assessment
15 delinquencies on such land; flooding on all or part
16 of such vacant land; deterioration of structures or
17 site improvements in neighboring areas adjacent to
18 the vacant land, or (2) the area immediately prior
19 to becoming vacant qualified as a blighted improved
20 area, or (3) the area consists of an unused quarry
21 or unused quarries, or (4) the area consists of
22 unused railyards, rail tracks or railroad
23 rights-of-way, or (5) the area, prior to its
24 designation, is subject to chronic flooding which
25 adversely impacts on real property in the area and
26 such flooding is substantially caused by one or more
27 improvements in or in proximity to the area which
28 improvements have been in existence for at least 5
29 years, or (6) the area consists of an unused
30 disposal site, containing earth, stone, building
31 debris or similar material, which were removed from
32 construction, demolition, excavation or dredge
33 sites, or (7) the area is not less than 50 nor more
34 than 100 acres and 75% of which is vacant,
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1 notwithstanding the fact that such area has been
2 used for commercial agricultural purposes within 5
3 years prior to the designation of the redevelopment
4 project area, and which area meets at least one of
5 the factors itemized in provision (1) of this
6 subsection (a), and the area has been designated as
7 a town or village center by ordinance or
8 comprehensive plan adopted prior to January 1, 1982,
9 and the area has not been developed for that
10 designated purpose.
11 (b) 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, "conservation area" shall have the
15 meaning set forth in this Section prior to the effective date
16 of this amendatory Act of the 91st General Assembly.
17 On and after the effective date of this amendatory Act of
18 the 91st General Assembly, "conservation area" means any
19 improved area within the boundaries of a redevelopment
20 project area located within the territorial limits of the
21 municipality in which 50% or more of the structures in the
22 area have an age of 35 years or more. Such an area is not
23 yet a blighted area but because of a combination of 3 or more
24 of the following factors dilapidation; obsolescence;
25 deterioration; illegal use of individual structures; presence
26 of structures below minimum code standards; abandonment;
27 excessive vacancies; overcrowding of structures and community
28 facilities; lack of ventilation, light or sanitary
29 facilities; inadequate utilities; excessive land coverage;
30 deleterious land use or layout; depreciation of physical
31 maintenance; lack of community planning, is detrimental to
32 the public safety, health, morals or welfare and such an area
33 may become a blighted area:.
34 (1) Dilapidation. An advanced state of disrepair
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1 or neglect of necessary repairs to the primary structural
2 components of buildings or improvements in such a
3 combination that a documented building condition analysis
4 determines that major repair is required or the defects
5 are so serious and so extensive that the buildings must
6 be removed.
7 (2) Obsolescence. The condition or process of
8 falling into disuse. Structures have become ill-suited
9 for the original use.
10 (3) Deterioration. With respect to buildings,
11 defects including, but not limited to, major defects in
12 the secondary building components such as doors, windows,
13 porches, gutters and downspouts, and fascia. With
14 respect to surface improvements, that the condition of
15 roadways, alleys, curbs, gutters, sidewalks, off-street
16 parking, and surface storage areas evidence
17 deterioration, including, but not limited to, surface
18 cracking, crumbling, potholes, depressions, loose paving
19 material, and weeds protruding through paved surfaces.
20 (4) Presence of structures below minimum code
21 standards. All structures that do not meet the standards
22 of zoning, subdivision, building, fire, and other
23 governmental codes applicable to property, but not
24 including housing and property maintenance codes.
25 (5) Illegal use of individual structures. The use
26 of structures in violation of applicable federal, State,
27 or local laws, exclusive of those applicable to the
28 presence of structures below minimum code standards.
29 (6) Excessive vacancies. The presence of buildings
30 that are unoccupied or under-utilized and that represent
31 an adverse influence on the area because of the
32 frequency, extent, or duration of the vacancies.
33 (7) Lack of ventilation, light, or sanitary
34 facilities. The absence of adequate ventilation for
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1 light or air circulation in spaces or rooms without
2 windows, or that require the removal of dust, odor, gas,
3 smoke, or other noxious airborne materials. Inadequate
4 natural light and ventilation means the absence or
5 inadequacy of skylights or windows for interior spaces or
6 rooms and improper window sizes and amounts by room area
7 to window area ratios. Inadequate sanitary facilities
8 refers to the absence or inadequacy of garbage storage
9 and enclosure, bathroom facilities, hot water and
10 kitchens, and structural inadequacies preventing ingress
11 and egress to and from all rooms and units within a
12 building.
13 (8) Inadequate utilities. Underground and overhead
14 utilities such as storm sewers and storm drainage,
15 sanitary sewers, water lines, and gas, telephone, and
16 electrical services that are shown to be inadequate.
17 Inadequate utilities are those that are: (i) of
18 insufficient capacity to serve the uses in the
19 redevelopment project area, (ii) deteriorated,
20 antiquated, obsolete, or in disrepair, or (iii) lacking
21 within the redevelopment project area.
22 (9) Excessive land coverage and overcrowding of
23 structures and community facilities. The over-intensive
24 use of property and the crowding of buildings and
25 accessory facilities onto a site. Examples of problem
26 conditions warranting the designation of an area as one
27 exhibiting excessive land coverage are: the presence of
28 buildings either improperly situated on parcels or
29 located on parcels of inadequate size and shape in
30 relation to present-day standards of development for
31 health and safety and the presence of multiple buildings
32 on a single parcel. For there to be a finding of
33 excessive land coverage, these parcels must exhibit one
34 or more of the following conditions: insufficient
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1 provision for light and air within or around buildings,
2 increased threat of spread of fire due to the close
3 proximity of buildings, lack of adequate or proper access
4 to a public right-of-way, lack of reasonably required
5 off-street parking, or inadequate provision for loading
6 and service.
7 (10) Deleterious land use or layout. The existence
8 of incompatible land-use relationships, buildings
9 occupied by inappropriate mixed-uses, or uses considered
10 to be noxious, offensive, or unsuitable for the
11 surrounding area.
12 (11) Lack of community planning. The proposed
13 redevelopment project area was developed prior to or
14 without the benefit or guidance of a community plan. This
15 means that the development occurred prior to the adoption
16 by the municipality of a comprehensive or other community
17 plan or that the plan was not followed at the time of the
18 area's development. This factor must be documented by
19 evidence of adverse or incompatible land-use
20 relationships, inadequate street layout, improper
21 subdivision, parcels of inadequate shape and size to meet
22 contemporary development standards, or other evidence
23 demonstrating an absence of effective community planning.
24
25 (12) The area has incurred Illinois Environmental
26 Protection Agency or United States Environmental
27 Protection Agency remediation costs for, or a study
28 conducted by an independent consultant recognized as
29 having expertise in environmental remediation has
30 determined a need for, the clean-up of hazardous waste,
31 hazardous substances, or underground storage tanks
32 required by State or federal law, provided that the
33 remediation costs constitute a material impediment to the
34 development or redevelopment of the redevelopment project
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1 area.
2 (13) The total equalized assessed value of the
3 proposed redevelopment project area has declined for 3 of
4 the last 5 calendar years for which information is
5 available or is increasing at an annual rate that is less
6 than the balance of the municipality for 3 of the last 5
7 calendar years for which information is available or is
8 increasing at an annual rate that is less than the
9 Consumer Price Index for All Urban Consumers published by
10 the United States Department of Labor or successor agency
11 for 3 of the last 5 calendar years for which information
12 is available.
13 (c) "Industrial park" means an area in a blighted or
14 conservation area suitable for use by any manufacturing,
15 industrial, research or transportation enterprise, of
16 facilities to include but not be limited to factories, mills,
17 processing plants, assembly plants, packing plants,
18 fabricating plants, industrial distribution centers,
19 warehouses, repair overhaul or service facilities, freight
20 terminals, research facilities, test facilities or railroad
21 facilities.
22 (d) "Industrial park conservation area" means an area
23 within the boundaries of a redevelopment project area located
24 within the territorial limits of a municipality that is a
25 labor surplus municipality or within 1 1/2 miles of the
26 territorial limits of a municipality that is a labor surplus
27 municipality if the area is annexed to the municipality;
28 which area is zoned as industrial no later than at the time
29 the municipality by ordinance designates the redevelopment
30 project area, and which area includes both vacant land
31 suitable for use as an industrial park and a blighted area or
32 conservation area contiguous to such vacant land.
33 (e) "Labor surplus municipality" means a municipality in
34 which, at any time during the 6 months before the
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1 municipality by ordinance designates an industrial park
2 conservation area, the unemployment rate was over 6% and was
3 also 100% or more of the national average unemployment rate
4 for that same time as published in the United States
5 Department of Labor Bureau of Labor Statistics publication
6 entitled "The Employment Situation" or its successor
7 publication. For the purpose of this subsection, if
8 unemployment rate statistics for the municipality are not
9 available, the unemployment rate in the municipality shall be
10 deemed to be the same as the unemployment rate in the
11 principal county in which the municipality is located.
12 (f) "Municipality" shall mean a city, village or
13 incorporated town.
14 (g) "Initial Sales Tax Amounts" means the amount of
15 taxes paid under the Retailers' Occupation Tax Act, Use Tax
16 Act, Service Use Tax Act, the Service Occupation Tax Act, the
17 Municipal Retailers' Occupation Tax Act, and the Municipal
18 Service Occupation Tax Act by retailers and servicemen on
19 transactions at places located in a State Sales Tax Boundary
20 during the calendar year 1985.
21 (g-1) "Revised Initial Sales Tax Amounts" means the
22 amount of taxes paid under the Retailers' Occupation Tax Act,
23 Use Tax Act, Service Use Tax Act, the Service Occupation Tax
24 Act, the Municipal Retailers' Occupation Tax Act, and the
25 Municipal Service Occupation Tax Act by retailers and
26 servicemen on transactions at places located within the State
27 Sales Tax Boundary revised pursuant to Section 11-74.4-8a(9)
28 of this Act.
29 (h) "Municipal Sales Tax Increment" means an amount
30 equal to the increase in the aggregate amount of taxes paid
31 to a municipality from the Local Government Tax Fund arising
32 from sales by retailers and servicemen within the
33 redevelopment project area or State Sales Tax Boundary, as
34 the case may be, for as long as the redevelopment project
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1 area or State Sales Tax Boundary, as the case may be, exist
2 over and above the aggregate amount of taxes as certified by
3 the Illinois Department of Revenue and paid under the
4 Municipal Retailers' Occupation Tax Act and the Municipal
5 Service Occupation Tax Act by retailers and servicemen, on
6 transactions at places of business located in the
7 redevelopment project area or State Sales Tax Boundary, as
8 the case may be, during the base year which shall be the
9 calendar year immediately prior to the year in which the
10 municipality adopted tax increment allocation financing. For
11 purposes of computing the aggregate amount of such taxes for
12 base years occurring prior to 1985, the Department of Revenue
13 shall determine the Initial Sales Tax Amounts for such taxes
14 and deduct therefrom an amount equal to 4% of the aggregate
15 amount of taxes per year for each year the base year is prior
16 to 1985, but not to exceed a total deduction of 12%. The
17 amount so determined shall be known as the "Adjusted Initial
18 Sales Tax Amounts". For purposes of determining the
19 Municipal Sales Tax Increment, the Department of Revenue
20 shall for each period subtract from the amount paid to the
21 municipality from the Local Government Tax Fund arising from
22 sales by retailers and servicemen on transactions located in
23 the redevelopment project area or the State Sales Tax
24 Boundary, as the case may be, the certified Initial Sales Tax
25 Amounts, the Adjusted Initial Sales Tax Amounts or the
26 Revised Initial Sales Tax Amounts for the Municipal
27 Retailers' Occupation Tax Act and the Municipal Service
28 Occupation Tax Act. For the State Fiscal Year 1989, this
29 calculation shall be made by utilizing the calendar year 1987
30 to determine the tax amounts received. For the State Fiscal
31 Year 1990, this calculation shall be made by utilizing the
32 period from January 1, 1988, until September 30, 1988, to
33 determine the tax amounts received from retailers and
34 servicemen pursuant to the Municipal Retailers' Occupation
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1 Tax and the Municipal Service Occupation Tax Act, which shall
2 have deducted therefrom nine-twelfths of the certified
3 Initial Sales Tax Amounts, the Adjusted Initial Sales Tax
4 Amounts or the Revised Initial Sales Tax Amounts as
5 appropriate. For the State Fiscal Year 1991, this calculation
6 shall be made by utilizing the period from October 1, 1988,
7 to June 30, 1989, to determine the tax amounts received from
8 retailers and servicemen pursuant to the Municipal Retailers'
9 Occupation Tax and the Municipal Service Occupation Tax Act
10 which shall have deducted therefrom nine-twelfths of the
11 certified Initial Sales Tax Amounts, Adjusted Initial Sales
12 Tax Amounts or the Revised Initial Sales Tax Amounts as
13 appropriate. For every State Fiscal Year thereafter, the
14 applicable period shall be the 12 months beginning July 1 and
15 ending June 30 to determine the tax amounts received which
16 shall have deducted therefrom the certified Initial Sales Tax
17 Amounts, the Adjusted Initial Sales Tax Amounts or the
18 Revised Initial Sales Tax Amounts, as the case may be.
19 (i) "Net State Sales Tax Increment" means the sum of the
20 following: (a) 80% of the first $100,000 of State Sales Tax
21 Increment annually generated within a State Sales Tax
22 Boundary; (b) 60% of the amount in excess of $100,000 but not
23 exceeding $500,000 of State Sales Tax Increment annually
24 generated within a State Sales Tax Boundary; and (c) 40% of
25 all amounts in excess of $500,000 of State Sales Tax
26 Increment annually generated within a State Sales Tax
27 Boundary. If, however, a municipality established a tax
28 increment financing district in a county with a population in
29 excess of 3,000,000 before January 1, 1986, and the
30 municipality entered into a contract or issued bonds after
31 January 1, 1986, but before December 31, 1986, to finance
32 redevelopment project costs within a State Sales Tax
33 Boundary, then the Net State Sales Tax Increment means, for
34 the fiscal years beginning July 1, 1990, and July 1, 1991,
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1 100% of the State Sales Tax Increment annually generated
2 within a State Sales Tax Boundary; and notwithstanding any
3 other provision of this Act, for those fiscal years the
4 Department of Revenue shall distribute to those
5 municipalities 100% of their Net State Sales Tax Increment
6 before any distribution to any other municipality and
7 regardless of whether or not those other municipalities will
8 receive 100% of their Net State Sales Tax Increment. For
9 Fiscal Year 1999, and every year thereafter until the year
10 2007, for any municipality that has not entered into a
11 contract or has not issued bonds prior to June 1, 1988 to
12 finance redevelopment project costs within a State Sales Tax
13 Boundary, the Net State Sales Tax Increment shall be
14 calculated as follows: By multiplying the Net State Sales Tax
15 Increment by 90% in the State Fiscal Year 1999; 80% in the
16 State Fiscal Year 2000; 70% in the State Fiscal Year 2001;
17 60% in the State Fiscal Year 2002; 50% in the State Fiscal
18 Year 2003; 40% in the State Fiscal Year 2004; 30% in the
19 State Fiscal Year 2005; 20% in the State Fiscal Year 2006;
20 and 10% in the State Fiscal Year 2007. No payment shall be
21 made for State Fiscal Year 2008 and thereafter.
22 Municipalities that issued bonds in connection with a
23 redevelopment project in a redevelopment project area within
24 the State Sales Tax Boundary prior to July 29, 1991, or that
25 entered into contracts in connection with a redevelopment
26 project in a redevelopment project area before June 1, 1988,
27 shall continue to receive their proportional share of the
28 Illinois Tax Increment Fund distribution until the date on
29 which the redevelopment project is completed or terminated,
30 or the date on which the bonds are retired or the contracts
31 are completed, whichever date occurs first. Refunding of any
32 bonds issued prior to July 29, 1991, shall not alter the Net
33 State Sales Tax Increment.
34 (j) "State Utility Tax Increment Amount" means an amount
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1 equal to the aggregate increase in State electric and gas tax
2 charges imposed on owners and tenants, other than residential
3 customers, of properties located within the redevelopment
4 project area under Section 9-222 of the Public Utilities Act,
5 over and above the aggregate of such charges as certified by
6 the Department of Revenue and paid by owners and tenants,
7 other than residential customers, of properties within the
8 redevelopment project area during the base year, which shall
9 be the calendar year immediately prior to the year of the
10 adoption of the ordinance authorizing tax increment
11 allocation financing.
12 (k) "Net State Utility Tax Increment" means the sum of
13 the following: (a) 80% of the first $100,000 of State Utility
14 Tax Increment annually generated by a redevelopment project
15 area; (b) 60% of the amount in excess of $100,000 but not
16 exceeding $500,000 of the State Utility Tax Increment
17 annually generated by a redevelopment project area; and (c)
18 40% of all amounts in excess of $500,000 of State Utility Tax
19 Increment annually generated by a redevelopment project area.
20 For the State Fiscal Year 1999, and every year thereafter
21 until the year 2007, for any municipality that has not
22 entered into a contract or has not issued bonds prior to June
23 1, 1988 to finance redevelopment project costs within a
24 redevelopment project area, the Net State Utility Tax
25 Increment shall be calculated as follows: By multiplying the
26 Net State Utility Tax Increment by 90% in the State Fiscal
27 Year 1999; 80% in the State Fiscal Year 2000; 70% in the
28 State Fiscal Year 2001; 60% in the State Fiscal Year 2002;
29 50% in the State Fiscal Year 2003; 40% in the State Fiscal
30 Year 2004; 30% in the State Fiscal Year 2005; 20% in the
31 State Fiscal Year 2006; and 10% in the State Fiscal Year
32 2007. No payment shall be made for the State Fiscal Year 2008
33 and thereafter.
34 Municipalities that issue bonds in connection with the
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1 redevelopment project during the period from June 1, 1988
2 until 3 years after the effective date of this Amendatory Act
3 of 1988 shall receive the Net State Utility Tax Increment,
4 subject to appropriation, for 15 State Fiscal Years after the
5 issuance of such bonds. For the 16th through the 20th State
6 Fiscal Years after issuance of the bonds, the Net State
7 Utility Tax Increment shall be calculated as follows: By
8 multiplying the Net State Utility Tax Increment by 90% in
9 year 16; 80% in year 17; 70% in year 18; 60% in year 19; and
10 50% in year 20. Refunding of any bonds issued prior to June
11 1, 1988, shall not alter the revised Net State Utility Tax
12 Increment payments set forth above.
13 (l) "Obligations" mean bonds, loans, debentures, notes,
14 special certificates or other evidence of indebtedness issued
15 by the municipality to carry out a redevelopment project or
16 to refund outstanding obligations.
17 (m) "Payment in lieu of taxes" means those estimated tax
18 revenues from real property in a redevelopment project area
19 derived from real property that has been acquired by a
20 municipality which according to the redevelopment project or
21 plan is to be used for a private use which taxing districts
22 would have received had a municipality not acquired the real
23 property and adopted tax increment allocation financing and
24 which would result from levies made after the time of the
25 adoption of tax increment allocation financing to the time
26 the current equalized value of real property in the
27 redevelopment project area exceeds the total initial
28 equalized value of real property in said area.
29 (n) "Redevelopment plan" means the comprehensive program
30 of the municipality for development or redevelopment intended
31 by the payment of redevelopment project costs to reduce or
32 eliminate those conditions the existence of which qualified
33 the redevelopment project area as a "blighted area" or
34 "conservation area" or combination thereof or "industrial
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1 park conservation area," and thereby to enhance the tax bases
2 of the taxing districts which extend into the redevelopment
3 project area. On and after the effective date of this
4 amendatory Act of the 91st General Assembly, no redevelopment
5 plan may be approved or amended that includes the development
6 of vacant land (i) with a golf course and related clubhouse
7 and other facilities or (ii) designated by federal, State,
8 county, or municipal government as public land for outdoor
9 recreational activities or for nature preserves and used for
10 that purpose within 5 years prior to the adoption of the
11 redevelopment plan. For the purpose of this subsection,
12 "recreational activities" is limited to mean camping and
13 hunting. Each redevelopment plan shall set forth in writing
14 the program to be undertaken to accomplish the objectives
15 and shall include but not be limited to:
16 (A) an itemized list of estimated redevelopment
17 project costs;
18 (B) evidence indicating that the redevelopment
19 project area on the whole has not been subject to growth
20 and development through investment by private enterprise;
21 (C) an assessment of any financial impact of the
22 redevelopment project area on or any increased demand for
23 services from any taxing district affected by the plan
24 and any program to address such financial impact or
25 increased demand;
26 (D) the sources of funds to pay costs;
27 (E) the nature and term of the obligations to be
28 issued;
29 (F) the most recent equalized assessed valuation of
30 the redevelopment project area;
31 (G) an estimate as to the equalized assessed
32 valuation after redevelopment and the general land uses
33 to apply in the redevelopment project area;
34 (H) a commitment to fair employment practices and
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1 an affirmative action plan;
2 (I) if it concerns an industrial park conservation
3 area, the plan shall also include a general description
4 of any proposed developer, user and tenant of any
5 property, a description of the type, structure and
6 general character of the facilities to be developed, a
7 description of the type, class and number of new
8 employees to be employed in the operation of the
9 facilities to be developed; and
10 (J) if property is to be annexed to the
11 municipality, the plan shall include the terms of the
12 annexation agreement.
13 The provisions of items (B) and (C) of this subsection
14 (n) shall not apply to a municipality that before March 14,
15 1994 (the effective date of Public Act 88-537) had fixed,
16 either by its corporate authorities or by a commission
17 designated under subsection (k) of Section 11-74.4-4, a time
18 and place for a public hearing as required by subsection (a)
19 of Section 11-74.4-5. No redevelopment plan shall be adopted
20 unless a municipality complies with all of the following
21 requirements:
22 (1) The municipality finds that the redevelopment
23 project area on the whole has not been subject to growth
24 and development through investment by private enterprise
25 and would not reasonably be anticipated to be developed
26 without the adoption of the redevelopment plan.
27 (2) The municipality finds that the redevelopment
28 plan and project conform to the comprehensive plan for
29 the development of the municipality as a whole, or, for
30 municipalities with a population of 100,000 or more,
31 regardless of when the redevelopment plan and project was
32 adopted, the redevelopment plan and project either: (i)
33 conforms to the strategic economic development or
34 redevelopment plan issued by the designated planning
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1 authority of the municipality, or (ii) includes land uses
2 that have been approved by the planning commission of the
3 municipality.
4 (3) The redevelopment plan establishes the
5 estimated dates of completion of the redevelopment
6 project and retirement of obligations issued to finance
7 redevelopment project costs. Those dates shall not be
8 later than December 31 of the year in which the payment
9 to the municipal treasurer as provided in subsection (b)
10 of Section 11-74.4-8 of this Act is to be made with
11 respect to ad valorem taxes levied in the twenty-third
12 calendar year after the year in which the ordinance
13 approving the redevelopment project area is adopted more
14 than 23 years from the adoption of the ordinance
15 approving the redevelopment project area if the ordinance
16 was adopted on or after January 15, 1981, and not later
17 than December 31 of the year in which the payment to the
18 municipal treasurer as provided in subsection (b) of
19 Section 11-74.4-8 of this Act is to be made with respect
20 to ad valorem taxes levied in the thirty-fifth calendar
21 year after the year in which the ordinance approving the
22 redevelopment project area is adopted not more than 35
23 years if the ordinance was adopted before January 15,
24 1981, or if the ordinance was adopted in April 1984 or
25 July 1985, or if the ordinance was adopted in December
26 1987 and the redevelopment project is located within one
27 mile of Midway Airport, or if the municipality is subject
28 to the Local Government Financial Planning and
29 Supervision Act, or if the ordinance was adopted on
30 December 31, 1986 by a municipality located in Clinton
31 County for which at least $250,000 of tax increment bonds
32 were authorized on June 17, 1997. However, for
33 redevelopment project areas for which bonds were issued
34 before July 29, 1991, or for which contracts were entered
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1 into before June 1, 1988, in connection with a
2 redevelopment project in the area within the State Sales
3 Tax Boundary, the estimated dates of completion of the
4 redevelopment project and retirement of obligations to
5 finance redevelopment project costs may be extended by
6 municipal ordinance to December 31, 2013. The extension
7 allowed by this amendatory Act of 1993 shall not apply to
8 real property tax increment allocation financing under
9 Section 11-74.4-8. A municipality may by municipal
10 ordinance amend an existing redevelopment plan to conform
11 to this paragraph (3) as amended by this amendatory Act
12 of the 91st General Assembly, which municipal ordinance
13 may be adopted without further hearing or notice and
14 without complying with the procedures provided in this
15 Act pertaining to an amendment to or the initial approval
16 of a redevelopment plan and project and designation of a
17 redevelopment project area.
18 Those dates, for purposes of real property tax
19 increment allocation financing pursuant to Section
20 11-74.4-8 only, shall be not more than 35 years for
21 redevelopment project areas that were adopted on or after
22 December 16, 1986 and for which at least $8 million worth
23 of municipal bonds were authorized on or after December
24 19, 1989 but before January 1, 1990; provided that the
25 municipality elects to extend the life of the
26 redevelopment project area to 35 years by the adoption of
27 an ordinance after at least 14 but not more than 30 days'
28 written notice to the taxing bodies, that would otherwise
29 constitute the joint review board for the redevelopment
30 project area, before the adoption of the ordinance.
31 Those dates, for purposes of real property tax
32 increment allocation financing pursuant to Section
33 11-74.4-8 only, shall be not more than 35 years for
34 redevelopment project areas that were established on or
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1 after December 1, 1981 but before January 1, 1982 and for
2 which at least $1,500,000 worth of tax increment revenue
3 bonds were authorized on or after September 30, 1990 but
4 before July 1, 1991; provided that the municipality
5 elects to extend the life of the redevelopment project
6 area to 35 years by the adoption of an ordinance after at
7 least 14 but not more than 30 days' written notice to the
8 taxing bodies, that would otherwise constitute the joint
9 review board for the redevelopment project area, before
10 the adoption of the ordinance.
11 (3.5) (4) The municipality finds, in the case of an
12 industrial park conservation area, also that the
13 municipality is a labor surplus municipality and that the
14 implementation of the redevelopment plan will reduce
15 unemployment, create new jobs and by the provision of new
16 facilities enhance the tax base of the taxing districts
17 that extend into the redevelopment project area.
18 (4) (5) If any incremental revenues are being
19 utilized under Section 8(a)(1) or 8(a)(2) of this Act in
20 redevelopment project areas approved by ordinance after
21 January 1, 1986, the municipality finds: (a) that the
22 redevelopment project area would not reasonably be
23 developed without the use of such incremental revenues,
24 and (b) that such incremental revenues will be
25 exclusively utilized for the development of the
26 redevelopment project area.
27 (5) On and after the effective date of this
28 amendatory Act of the 91st General Assembly, if the
29 redevelopment plan will not result in displacement of
30 residents from inhabited units, and the municipality
31 certifies in the plan that displacement will not result
32 from the plan, a housing impact study need not be
33 performed. If, however, the redevelopment plan would
34 result in the displacement of residents from 10 or more
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1 inhabited residential units, or if the redevelopment
2 project area contains 75 or more inhabited residential
3 units and no certification is made, then the municipality
4 shall prepare, as part of the separate feasibility report
5 required by subsection (a) of Section 11-74.4-5, a
6 housing impact study.
7 Part I of the housing impact study shall include (i)
8 data as to whether the residential units are single
9 family or multi-family units, (ii) the number and type of
10 rooms within the units, if that information is available,
11 (iii) whether the units are inhabited or uninhabited, as
12 determined not less than 45 days before the date that the
13 ordinance or resolution required by subsection (a) of
14 Section 11-74.4-5 is passed, and (iv) data as to the
15 racial and ethnic composition of the residents in the
16 inhabited residential units. The data requirement as to
17 the racial and ethnic composition of the residents in the
18 inhabited residential units shall be deemed to be fully
19 satisfied by data from the most recent federal census.
20 Part II of the housing impact study shall identify
21 the inhabited residential units in the proposed
22 redevelopment project area that are to be or may be
23 removed. If inhabited residential units are to be
24 removed, then the housing impact study shall identify (i)
25 the number and location of those units that will or may
26 be removed, (ii) the municipality's plans for relocation
27 assistance for those residents in the proposed
28 redevelopment project area whose residences are to be
29 removed, (iii) the availability of replacement housing
30 for those residents whose residences are to be removed,
31 and shall identify the type, location, and cost of the
32 housing, and (iv) the type and extent of relocation
33 assistance to be provided.
34 (6) On and after the effective date of this
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1 amendatory Act of the 91st General Assembly, the housing
2 impact study required by paragraph (5) shall be
3 incorporated in the redevelopment plan for the
4 redevelopment project area.
5 (7) On and after the effective date of this
6 amendatory Act of the 91st General Assembly, no
7 redevelopment plan shall be adopted, nor an existing plan
8 amended, nor shall residential housing that is occupied
9 by households of low-income and very low-income persons
10 in currently existing redevelopment project areas be
11 removed after the effective date of this amendatory Act
12 of the 91st General Assembly unless the redevelopment
13 plan provides, with respect to inhabited housing units
14 that are to be removed for households of low-income and
15 very low-income persons, affordable housing and
16 relocation assistance not less than that which would be
17 provided under the federal Uniform Relocation Assistance
18 and Real Property Acquisition Policies Act of 1970 and
19 the regulations under that Act, including the eligibility
20 criteria. Affordable housing may be either existing or
21 newly constructed housing. For purposes of this paragraph
22 (7), "low-income households", "very low-income
23 households", and "affordable housing" have the meanings
24 set forth in the Illinois Affordable Housing Act. The
25 municipality shall make a good faith effort to ensure
26 that this affordable housing is located in or near the
27 redevelopment project area within the municipality.
28 (8) On and after the effective date of this
29 amendatory Act of the 91st General Assembly, if, after
30 the adoption of the redevelopment plan for the
31 redevelopment project area, any municipality desires to
32 amend its redevelopment plan to remove more inhabited
33 residential units than specified in its original
34 redevelopment plan, that increase in the number of units
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1 to be removed shall be deemed to be a change in the
2 nature of the redevelopment plan as to require compliance
3 with the procedures in this Act pertaining to the initial
4 approval of a redevelopment plan.
5 (o) "Redevelopment project" means any public and private
6 development project in furtherance of the objectives of a
7 redevelopment plan. On and after the effective date of this
8 amendatory Act of the 91st General Assembly, no redevelopment
9 plan may be approved or amended that includes the development
10 of vacant land (i) with a golf course and related clubhouse
11 and other facilities or (ii) designated by federal, State,
12 county, or municipal government as public land for outdoor
13 recreational activities or for nature preserves and used for
14 that purpose within 5 years prior to the adoption of the
15 redevelopment plan. For the purpose of this subsection,
16 "recreational activities" is limited to mean camping and
17 hunting.
18 (p) "Redevelopment project area" means an area
19 designated by the municipality, which is not less in the
20 aggregate than 1 1/2 acres and in respect to which the
21 municipality has made a finding that there exist conditions
22 which cause the area to be classified as an industrial park
23 conservation area or a blighted area or a conservation area,
24 or a combination of both blighted areas and conservation
25 areas.
26 (q) "Redevelopment project costs" mean and include the
27 sum total of all reasonable or necessary costs incurred or
28 estimated to be incurred, and any such costs incidental to a
29 redevelopment plan and a redevelopment project. Such costs
30 include, without limitation, the following:
31 (1) Costs of studies, surveys, development of
32 plans, and specifications, implementation and
33 administration of the redevelopment plan including but
34 not limited to staff and professional service costs for
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1 architectural, engineering, legal, marketing, financial,
2 planning or other services, provided however that no
3 charges for professional services may be based on a
4 percentage of the tax increment collected; except that on
5 and after the effective date of this amendatory Act of
6 the 91st General Assembly, no contracts for professional
7 services, excluding architectural and engineering
8 services, may be entered into if the terms of the
9 contract extend beyond a period of 3 years. In addition,
10 "redevelopment project costs" shall not include lobbying
11 expenses. After consultation with the municipality, each
12 tax increment consultant or advisor to a municipality
13 that plans to designate or has designated a redevelopment
14 project area shall inform the municipality in writing of
15 any contracts that the consultant or advisor has entered
16 into with entities or individuals that have received, or
17 are receiving, payments financed by tax increment
18 revenues produced by the redevelopment project area with
19 respect to which the consultant or advisor has performed,
20 or will be performing, service for the municipality.
21 This requirement shall be satisfied by the consultant or
22 advisor before the commencement of services for the
23 municipality and thereafter whenever any other contracts
24 with those individuals or entities are executed by the
25 consultant or advisor;
26 (1.5) After July 1, 1999, annual administrative
27 costs shall not include general overhead or
28 administrative costs of the municipality that would still
29 have been incurred by the municipality if the
30 municipality had not designated a redevelopment project
31 area or approved a redevelopment plan;
32 (1.6) The cost of marketing sites within the
33 redevelopment project area to prospective businesses,
34 developers, and investors;
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1 (2) Property assembly costs, including but not
2 limited to acquisition of land and other property, real
3 or personal, or rights or interests therein, demolition
4 of buildings, site preparation, site improvements that
5 serve as an engineered barrier addressing ground level or
6 below ground environmental contamination, including, but
7 not limited to parking lots and other concrete or asphalt
8 barriers, and the clearing and grading of land;
9 (3) Costs of rehabilitation, reconstruction or
10 repair or remodeling of existing public or private
11 buildings, and fixtures, and leasehold improvements; and
12 the cost of replacing an existing public building if
13 pursuant to the implementation of a redevelopment project
14 the existing public building is to be demolished to use
15 the site for private investment or devoted to a different
16 use requiring private investment;
17 (4) Costs of the construction of public works or
18 improvements, except that on and after the effective date
19 of this amendatory Act of the 91st General Assembly,
20 redevelopment project costs shall not include the cost of
21 constructing a new municipal public building principally
22 used to provide offices, storage space, or conference
23 facilities or vehicle storage, maintenance, or repair for
24 administrative, public safety, or public works personnel
25 and that is not intended to replace an existing public
26 building as provided under paragraph (3) of subsection
27 (q) of Section 11-74.4-3 unless either (i) the
28 construction of the new municipal building implements a
29 redevelopment project that was included in a
30 redevelopment plan that was adopted by the municipality
31 prior to the effective date of this amendatory Act of the
32 91st General Assembly or (ii) the municipality makes a
33 reasonable determination in the redevelopment plan,
34 supported by information that provides the basis for that
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1 determination, that the new municipal building is
2 required to meet an increase in the need for public
3 safety purposes anticipated to result from the
4 implementation of the redevelopment plan;
5 (5) Costs of job training and retraining projects,
6 including the cost of "welfare to work" programs
7 implemented by businesses located within the
8 redevelopment project area;
9 (6) Financing costs, including but not limited to
10 all necessary and incidental expenses related to the
11 issuance of obligations and which may include payment of
12 interest on any obligations issued hereunder including
13 interest accruing during the estimated period of
14 construction of any redevelopment project for which such
15 obligations are issued and for not exceeding 36 months
16 thereafter and including reasonable reserves related
17 thereto;
18 (7) To the extent the municipality by written
19 agreement accepts and approves the same, all or a portion
20 of a taxing district's capital costs resulting from the
21 redevelopment project necessarily incurred or to be
22 incurred within a taxing district in furtherance of the
23 objectives of the redevelopment plan and project.
24 (7.5) For redevelopment project areas designated
25 (or redevelopment project areas amended to add or
26 increase the number of tax-increment-financing assisted
27 housing units) on or after the effective date of this
28 amendatory Act of the 91st General Assembly, an
29 elementary, secondary, or unit school district's
30 increased costs attributable to assisted housing units
31 located within the redevelopment project area for which
32 the developer or redeveloper receives financial
33 assistance through an agreement with the municipality or
34 because the municipality incurs the cost of necessary
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1 infrastructure improvements within the boundaries of the
2 assisted housing sites necessary for the completion of
3 that housing as authorized by this Act, and which costs
4 shall be paid by the municipality from the Special Tax
5 Allocation Fund when the tax increment revenue is
6 received as a result of the assisted housing units and
7 shall be calculated annually as follows:
8 (A) for foundation districts, excluding any
9 school district in a municipality with a population
10 in excess of 1,000,000, by multiplying the
11 district's increase in attendance resulting from the
12 net increase in new students enrolled in that school
13 district who reside in housing units within the
14 redevelopment project area that have received
15 financial assistance through an agreement with the
16 municipality or because the municipality incurs the
17 cost of necessary infrastructure improvements within
18 the boundaries of the housing sites necessary for
19 the completion of that housing as authorized by this
20 Act since the designation of the redevelopment
21 project area by the most recently available per
22 capita tuition cost as defined in Section 10-20.12a
23 of the School Code less any increase in general
24 State aid as defined in Section 18-8.05 of the
25 School Code attributable to these added new students
26 subject to the following annual limitations:
27 (i) for unit school districts with a
28 district average 1995-96 Per Capita Tuition
29 Charge of less than $5,900, no more than 25% of
30 the total amount of property tax increment
31 revenue produced by those housing units that
32 have received tax increment finance assistance
33 under this Act;
34 (ii) for elementary school districts with
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1 a district average 1995-96 Per Capita Tuition
2 Charge of less than $5,900, no more than 17% of
3 the total amount of property tax increment
4 revenue produced by those housing units that
5 have received tax increment finance assistance
6 under this Act; and
7 (iii) for secondary school districts with
8 a district average 1995-96 Per Capita Tuition
9 Charge of less than $5,900, no more than 8% of
10 the total amount of property tax increment
11 revenue produced by those housing units that
12 have received tax increment finance assistance
13 under this Act.
14 (B) For alternate method districts, flat grant
15 districts, and foundation districts with a district
16 average 1995-96 Per Capita Tuition Charge equal to
17 or more than $5,900, excluding any school district
18 with a population in excess of 1,000,000, by
19 multiplying the district's increase in attendance
20 resulting from the net increase in new students
21 enrolled in that school district who reside in
22 housing units within the redevelopment project area
23 that have received financial assistance through an
24 agreement with the municipality or because the
25 municipality incurs the cost of necessary
26 infrastructure improvements within the boundaries of
27 the housing sites necessary for the completion of
28 that housing as authorized by this Act since the
29 designation of the redevelopment project area by the
30 most recently available per capita tuition cost as
31 defined in Section 10-20.12a of the School Code less
32 any increase in general state aid as defined in
33 Section 18-8.05 of the School Code attributable to
34 these added new students subject to the following
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1 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 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 schools by the
32 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 cost limits set forth in subparagraphs
14 (B) and (D) of paragraph (11) shall be modified for
15 the financing of rehabilitated or new housing units
16 for 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 (F) Instead of the eligible costs 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 eligible costs provided under this
4 subparagraph (F) of paragraph (11) shall be an
5 eligible cost for the construction, renovation, and
6 rehabilitation of all low and very low-income
7 housing units, as defined in Section 3 of the
8 Illinois Affordable Housing Act, within the
9 redevelopment project area. If the low and very
10 low-income units are part of a residential
11 redevelopment project that includes units not
12 affordable to low and very low-income households,
13 only the low and very low-income units shall be
14 eligible for benefits under subparagraph (F) of
15 paragraph (11). The standards for maintaining the
16 occupancy by low-income households and very
17 low-income households, as defined in Section 3 of
18 the Illinois Affordable Housing Act, of those units
19 constructed with eligible costs made available under
20 the provisions of this subparagraph (F) of paragraph
21 (11) shall be established by guidelines adopted by
22 the municipality. The responsibility for annually
23 documenting the initial occupancy of the units by
24 low-income households and very low-income
25 households, as defined in Section 3 of the Illinois
26 Affordable Housing Act, shall be that of the then
27 current owner of the property. For ownership units,
28 the guidelines will provide, at a minimum, for a
29 reasonable recapture of funds, or other appropriate
30 methods designed to preserve the original
31 affordability of the ownership units. For rental
32 units, the guidelines will provide, at a minimum,
33 for the affordability of rent to low and very
34 low-income households. As units become available,
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1 they shall be rented to income-eligible tenants.
2 The municipality may modify these guidelines from
3 time to time; the guidelines, however, shall be in
4 effect for as long as tax increment revenue is being
5 used to pay for costs associated with the units or
6 for the retirement of bonds issued to finance the
7 units or for the life of the redevelopment project
8 area, whichever is later.
9 (11.5) If the redevelopment project area is located
10 within a municipality with a population of more than
11 100,000, the cost of day care services for children of
12 employees from low-income families working for businesses
13 located within the redevelopment project area and all or
14 a portion of the cost of operation of day care centers
15 established by redevelopment project area businesses to
16 serve employees from low-income families working in
17 businesses located in the redevelopment project area.
18 For the purposes of this paragraph, "low-income families"
19 means families whose annual income does not exceed 80% of
20 the municipal, county, or regional median income,
21 adjusted for family size, as the annual income and
22 municipal, county, or regional median income are
23 determined from time to time by the United States
24 Department of Housing and Urban Development.
25 (12) Unless explicitly stated herein the cost of
26 construction of new privately-owned buildings shall not
27 be an eligible redevelopment project cost.
28 (13) After the effective date of this amendatory
29 Act of the 91st General Assembly, none of the
30 redevelopment project costs enumerated in this subsection
31 shall be eligible redevelopment project costs if those
32 costs would provide direct financial support to a retail
33 entity initiating operations in the redevelopment project
34 area while terminating operations at another Illinois
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1 location within 10 miles of the redevelopment project
2 area but outside the boundaries of the redevelopment
3 project area municipality. For purposes of this
4 paragraph, termination means a closing of a retail
5 operation that is directly related to the opening of the
6 same operation or like retail entity owned or operated by
7 more than 50% of the original ownership in a
8 redevelopment project area, but it does not mean closing
9 an operation for reasons beyond the control of the retail
10 entity, as documented by the retail entity, subject to a
11 reasonable finding by the municipality that the current
12 location contained inadequate space, had become
13 economically obsolete, or was no longer a viable location
14 for the retailer or serviceman.
15 If a special service area has been established pursuant
16 to the Special Service Area Tax Act or Special Service Area
17 Tax Law, then any tax increment revenues derived from the tax
18 imposed pursuant to the Special Service Area Tax Act or
19 Special Service Area Tax Law may be used within the
20 redevelopment project area for the purposes permitted by that
21 Act or Law as well as the purposes permitted by this Act.
22 (r) "State Sales Tax Boundary" means the redevelopment
23 project area or the amended redevelopment project area
24 boundaries which are determined pursuant to subsection (9) of
25 Section 11-74.4-8a of this Act. The Department of Revenue
26 shall certify pursuant to subsection (9) of Section
27 11-74.4-8a the appropriate boundaries eligible for the
28 determination of State Sales Tax Increment.
29 (s) "State Sales Tax Increment" means an amount equal to
30 the increase in the aggregate amount of taxes paid by
31 retailers and servicemen, other than retailers and servicemen
32 subject to the Public Utilities Act, on transactions at
33 places of business located within a State Sales Tax Boundary
34 pursuant to the Retailers' Occupation Tax Act, the Use Tax
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1 Act, the Service Use Tax Act, and the Service Occupation Tax
2 Act, except such portion of such increase that is paid into
3 the State and Local Sales Tax Reform Fund, the Local
4 Government Distributive Fund, the Local Government Tax
5 Fund and the County and Mass Transit District Fund, for as
6 long as State participation exists, over and above the
7 Initial Sales Tax Amounts, Adjusted Initial Sales Tax Amounts
8 or the Revised Initial Sales Tax Amounts for such taxes as
9 certified by the Department of Revenue and paid under those
10 Acts by retailers and servicemen on transactions at places of
11 business located within the State Sales Tax Boundary during
12 the base year which shall be the calendar year immediately
13 prior to the year in which the municipality adopted tax
14 increment allocation financing, less 3.0% of such amounts
15 generated under the Retailers' Occupation Tax Act, Use Tax
16 Act and Service Use Tax Act and the Service Occupation Tax
17 Act, which sum shall be appropriated to the Department of
18 Revenue to cover its costs of administering and enforcing
19 this Section. For purposes of computing the aggregate amount
20 of such taxes for base years occurring prior to 1985, the
21 Department of Revenue shall compute the Initial Sales Tax
22 Amount for such taxes and deduct therefrom an amount equal to
23 4% of the aggregate amount of taxes per year for each year
24 the base year is prior to 1985, but not to exceed a total
25 deduction of 12%. The amount so determined shall be known as
26 the "Adjusted Initial Sales Tax Amount". For purposes of
27 determining the State Sales Tax Increment the Department of
28 Revenue shall for each period subtract from the tax amounts
29 received from retailers and servicemen on transactions
30 located in the State Sales Tax Boundary, the certified
31 Initial Sales Tax Amounts, Adjusted Initial Sales Tax Amounts
32 or Revised Initial Sales Tax Amounts for the Retailers'
33 Occupation Tax Act, the Use Tax Act, the Service Use Tax Act
34 and the Service Occupation Tax Act. For the State Fiscal
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1 Year 1989 this calculation shall be made by utilizing the
2 calendar year 1987 to determine the tax amounts received. For
3 the State Fiscal Year 1990, this calculation shall be made by
4 utilizing the period from January 1, 1988, until September
5 30, 1988, to determine the tax amounts received from
6 retailers and servicemen, which shall have deducted therefrom
7 nine-twelfths of the certified Initial Sales Tax Amounts,
8 Adjusted Initial Sales Tax Amounts or the Revised Initial
9 Sales Tax Amounts as appropriate. For the State Fiscal Year
10 1991, this calculation shall be made by utilizing the period
11 from October 1, 1988, until June 30, 1989, to determine the
12 tax amounts received from retailers and servicemen, which
13 shall have deducted therefrom nine-twelfths of the certified
14 Initial State Sales Tax Amounts, Adjusted Initial Sales Tax
15 Amounts or the Revised Initial Sales Tax Amounts as
16 appropriate. For every State Fiscal Year thereafter, the
17 applicable period shall be the 12 months beginning July 1 and
18 ending on June 30, to determine the tax amounts received
19 which shall have deducted therefrom the certified Initial
20 Sales Tax Amounts, Adjusted Initial Sales Tax Amounts or the
21 Revised Initial Sales Tax Amounts. Municipalities intending
22 to receive a distribution of State Sales Tax Increment must
23 report a list of retailers to the Department of Revenue by
24 October 31, 1988 and by July 31, of each year thereafter.
25 (t) "Taxing districts" means counties, townships, cities
26 and incorporated towns and villages, school, road, park,
27 sanitary, mosquito abatement, forest preserve, public health,
28 fire protection, river conservancy, tuberculosis sanitarium
29 and any other municipal corporations or districts with the
30 power to levy taxes.
31 (u) "Taxing districts' capital costs" means those costs
32 of taxing districts for capital improvements that are found
33 by the municipal corporate authorities to be necessary and
34 directly result from the redevelopment project.
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1 (v) As used in subsection (a) of Section 11-74.4-3 of
2 this Act, "vacant land" means any parcel or combination of
3 parcels of real property without industrial, commercial, and
4 residential buildings which has not been used for commercial
5 agricultural purposes within 5 years prior to the designation
6 of the redevelopment project area, unless the parcel is
7 included in an industrial park conservation area or the
8 parcel has been subdivided; provided that if the parcel was
9 part of a larger tract that has been divided into 3 or more
10 smaller tracts that were accepted for recording during the
11 period from 1950 to 1990, then the parcel shall be deemed to
12 have been subdivided, and all proceedings and actions of the
13 municipality taken in that connection with respect to any
14 previously approved or designated redevelopment project area
15 or amended redevelopment project area are hereby validated
16 and hereby declared to be legally sufficient for all purposes
17 of this Act. For purposes of this Section and only for land
18 subject to the subdivision requirements of the Plat Act, land
19 is subdivided when the original plat of the proposed
20 Redevelopment Project Area or relevant portion thereof has
21 been properly certified, acknowledged, approved, and recorded
22 or filed in accordance with the Plat Act and a preliminary
23 plat, if any, for any subsequent phases of the proposed
24 Redevelopment Project Area or relevant portion thereof has
25 been properly approved and filed in accordance with the
26 applicable ordinance of the municipality.
27 (w) "Annual Total Increment" means the sum of each
28 municipality's annual Net Sales Tax Increment and each
29 municipality's annual Net Utility Tax Increment. The ratio
30 of the Annual Total Increment of each municipality to the
31 Annual Total Increment for all municipalities, as most
32 recently calculated by the Department, shall determine the
33 proportional shares of the Illinois Tax Increment Fund to be
34 distributed to each municipality.
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1 (Source: P.A. 89-235, eff. 8-4-95; 89-705, eff. 1-31-97;
2 90-379, eff. 8-14-97.)
3 (65 ILCS 5/11-74.4-4) (from Ch. 24, par. 11-74.4-4)
4 Sec. 11-74.4-4. Municipal powers and duties;
5 redevelopment project areas. A municipality may:
6 (a) The changes made by this amendatory Act of the 91st
7 General Assembly do not apply to a municipality that, (i)
8 before the effective date of this amendatory Act of the 91st
9 General Assembly, has adopted an ordinance or resolution
10 fixing a time and place for a public hearing under Section
11 11-74.4-5 or (ii) before July 1, 1999, has adopted an
12 ordinance or resolution providing for a feasibility study
13 under Section 11-74.4-4.1, but has not yet adopted an
14 ordinance approving redevelopment plans and redevelopment
15 projects or designating redevelopment project areas under
16 this Section, until after that municipality adopts an
17 ordinance approving redevelopment plans and redevelopment
18 projects or designating redevelopment project areas under
19 this Section; thereafter the changes made by this amendatory
20 Act of the 91st General Assembly apply to the same extent
21 that they apply to redevelopment plans and redevelopment
22 projects that were approved and redevelopment projects that
23 were designated before the effective date of this amendatory
24 Act of the 91st General Assembly.
25 By ordinance introduced in the governing body of the
26 municipality within 14 to 90 days from the completion of the
27 hearing specified in Section 11-74.4-5 approve redevelopment
28 plans and redevelopment projects, and designate redevelopment
29 project areas pursuant to notice and hearing required by this
30 Act. No redevelopment project area shall be designated
31 unless a plan and project are approved prior to the
32 designation of such area and such area shall include only
33 those contiguous parcels of real property and improvements
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1 thereon substantially benefited by the proposed redevelopment
2 project improvements. Upon adoption of the ordinances, the
3 municipality shall forthwith transmit to the county clerk of
4 the county or counties within which the redevelopment project
5 area is located a certified copy of the ordinances, a legal
6 description of the redevelopment project area, a map of the
7 redevelopment project area, identification of the year that
8 the county clerk shall use for determining the total initial
9 equalized assessed value of the redevelopment project area
10 consistent with subsection (a) of Section 11-74.4-9, and a
11 list of the parcel or tax identification number of each
12 parcel of property included in the redevelopment project
13 area.
14 (b) Make and enter into all contracts with property
15 owners, developers, tenants, overlapping taxing bodies, and
16 others necessary or incidental to the implementation and
17 furtherance of its redevelopment plan and project.
18 (c) Within a redevelopment project area, acquire by
19 purchase, donation, lease or eminent domain; own, convey,
20 lease, mortgage or dispose of land and other property, real
21 or personal, or rights or interests therein, and grant or
22 acquire licenses, easements and options with respect thereto,
23 all in the manner and at such price the municipality
24 determines is reasonably necessary to achieve the objectives
25 of the redevelopment plan and project. No conveyance, lease,
26 mortgage, disposition of land or other property owned by a
27 municipality, or agreement relating to the development of
28 such municipal the property shall be made except upon the
29 adoption of an ordinance by the corporate authorities of the
30 municipality. Furthermore, no conveyance, lease, mortgage, or
31 other disposition of land owned by a municipality or
32 agreement relating to the development of such municipal
33 property shall be made without making public disclosure of
34 the terms of the disposition and all bids and proposals made
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1 in response to the municipality's request. The procedures
2 for obtaining such bids and proposals shall provide
3 reasonable opportunity for any person to submit alternative
4 proposals or bids.
5 (d) Within a redevelopment project area, clear any area
6 by demolition or removal of any existing buildings and
7 structures.
8 (e) Within a redevelopment project area, renovate or
9 rehabilitate or construct any structure or building, as
10 permitted under this Act.
11 (f) Install, repair, construct, reconstruct or relocate
12 streets, utilities and site improvements essential to the
13 preparation of the redevelopment area for use in accordance
14 with a redevelopment plan.
15 (g) Within a redevelopment project area, fix, charge and
16 collect fees, rents and charges for the use of any building
17 or property owned or leased by it or any part thereof, or
18 facility therein.
19 (h) Accept grants, guarantees and donations of property,
20 labor, or other things of value from a public or private
21 source for use within a project redevelopment area.
22 (i) Acquire and construct public facilities within a
23 redevelopment project area, as permitted under this Act.
24 (j) Incur project redevelopment costs and reimburse
25 developers who incur redevelopment project costs authorized
26 by a redevelopment agreement; provided, however, that on and
27 after the effective date of this amendatory Act of the 91st
28 General Assembly, no municipality shall incur redevelopment
29 project costs (except for planning costs and any other
30 eligible costs authorized by municipal ordinance or
31 resolution that are subsequently included in the
32 redevelopment plan for the area and are incurred by the
33 municipality after the ordinance or resolution is adopted)
34 that are not consistent with the program for accomplishing
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1 the objectives of the redevelopment plan as included in that
2 plan and approved by the municipality until the municipality
3 has amended the redevelopment plan as provided elsewhere in
4 this Act.
5 (k) Create a commission of not less than 5 or more than
6 15 persons to be appointed by the mayor or president of the
7 municipality with the consent of the majority of the
8 governing board of the municipality. Members of a commission
9 appointed after the effective date of this amendatory Act of
10 1987 shall be appointed for initial terms of 1, 2, 3, 4 and 5
11 years, respectively, in such numbers as to provide that the
12 terms of not more than 1/3 of all such members shall expire
13 in any one year. Their successors shall be appointed for a
14 term of 5 years. The commission, subject to approval of the
15 corporate authorities may exercise the powers enumerated in
16 this Section. The commission shall also have the power to
17 hold the public hearings required by this division and make
18 recommendations to the corporate authorities concerning the
19 adoption of redevelopment plans, redevelopment projects and
20 designation of redevelopment project areas.
21 (l) Make payment in lieu of taxes or a portion thereof
22 to taxing districts. If payments in lieu of taxes or a
23 portion thereof are made to taxing districts, those payments
24 shall be made to all districts within a project redevelopment
25 area on a basis which is proportional to the current
26 collections of revenue which each taxing district receives
27 from real property in the redevelopment project area.
28 (m) Exercise any and all other powers necessary to
29 effectuate the purposes of this Act.
30 (n) If any member of the corporate authority, a member
31 of a commission established pursuant to Section 11-74.4-4(k)
32 of this Act, or an employee or consultant of the municipality
33 involved in the planning and preparation of a redevelopment
34 plan, or project for a redevelopment project area or proposed
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1 redevelopment project area, as defined in Sections
2 11-74.4-3(i) through (k) of this Act, owns or controls an
3 interest, direct or indirect, in any property included in any
4 redevelopment area, or proposed redevelopment area, he or she
5 shall disclose the same in writing to the clerk of the
6 municipality, and shall also so disclose the dates and terms
7 and conditions of any disposition of any such interest, which
8 disclosures shall be acknowledged by the corporate
9 authorities and entered upon the minute books of the
10 corporate authorities. If an individual holds such an
11 interest then that individual shall refrain from any further
12 official involvement in regard to such redevelopment plan,
13 project or area, from voting on any matter pertaining to such
14 redevelopment plan, project or area, or communicating with
15 other members concerning corporate authorities, commission or
16 employees concerning any matter pertaining to said
17 redevelopment plan, project or area. Furthermore, no such
18 member or employee shall acquire of any interest direct, or
19 indirect, in any property in a redevelopment area or proposed
20 redevelopment area after either (a) such individual obtains
21 knowledge of such plan, project or area or (b) first public
22 notice of such plan, project or area pursuant to Section
23 11-74.4-6 of this Division, whichever occurs first. For the
24 purposes of this subsection, a month-to-month leasehold
25 interest shall not be deemed to constitute an interest in any
26 property included in any redevelopment area or proposed
27 redevelopment area.
28 (o) Create a Tax Increment Economic Development Advisory
29 Committee to be appointed by the Mayor or President of the
30 municipality with the consent of the majority of the
31 governing board of the municipality, the members of which
32 Committee shall be appointed for initial terms of 1, 2, 3, 4
33 and 5 years respectively, in such numbers as to provide that
34 the terms of not more than 1/3 of all such members shall
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1 expire in any one year. Their successors shall be appointed
2 for a term of 5 years. The Committee shall have none of the
3 powers enumerated in this Section. The Committee shall serve
4 in an advisory capacity only. The Committee may advise the
5 governing Board of the municipality and other municipal
6 officials regarding development issues and opportunities
7 within the redevelopment project area or the area within the
8 State Sales Tax Boundary. The Committee may also promote and
9 publicize development opportunities in the redevelopment
10 project area or the area within the State Sales Tax Boundary.
11 (p) Municipalities may jointly undertake and perform
12 redevelopment plans and projects and utilize the provisions
13 of the Act wherever they have contiguous redevelopment
14 project areas or they determine to adopt tax increment
15 financing with respect to a redevelopment project area which
16 includes contiguous real property within the boundaries of
17 the municipalities, and in doing so, they may, by agreement
18 between municipalities, issue obligations, separately or
19 jointly, and expend revenues received under the Act for
20 eligible expenses anywhere within contiguous redevelopment
21 project areas or as otherwise permitted in the Act.
22 (q) Utilize revenues, other than State sales tax
23 increment revenues, received under this Act from one
24 redevelopment project area for eligible costs in another
25 redevelopment project area that is either contiguous to, or
26 is separated only by a public right of way from, the
27 redevelopment project area from which the revenues are
28 received. Utilize tax increment revenues for eligible costs
29 that are received from a redevelopment project area created
30 under the Industrial Jobs Recovery Law that is either
31 contiguous to, or is separated only by a public right of way
32 from, the redevelopment project area created under this Act
33 which initially receives these revenues. Utilize revenues,
34 other than State sales tax increment revenues, by
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1 transferring or loaning such revenues to a redevelopment
2 project area created under the Industrial Jobs Recovery Law
3 that is either contiguous to, or separated only by a public
4 right of way from the redevelopment project area that
5 initially produced and received those revenues; and, if the
6 redevelopment project area (i) was established before the
7 effective date of this amendatory Act of the 91st General
8 Assembly and (ii) is located within a municipality with a
9 population of more than 100,000, utilize revenues or proceeds
10 of obligations authorized by Section 11-74.4-7 of this Act,
11 other than use or occupation tax revenues, to pay for any
12 redevelopment project costs as defined by subsection (q) of
13 Section 11-74.4-3 to the extent that the redevelopment
14 project costs involve public property that is either
15 contiguous to, or separated only by a public right of way
16 from, a redevelopment project area whether or not
17 redevelopment project costs or the source of payment for the
18 costs are specifically set forth in the redevelopment plan
19 for the redevelopment project area.
20 (r) If no redevelopment project has been initiated in a
21 redevelopment project area within 7 years after the area was
22 designated by ordinance under subsection (a), the
23 municipality shall adopt an ordinance repealing the area's
24 designation as a redevelopment project area; provided,
25 however, that if an area received its designation more than 3
26 years before the effective date of this amendatory Act of
27 1994 and no redevelopment project has been initiated within 4
28 years after the effective date of this amendatory Act of
29 1994, the municipality shall adopt an ordinance repealing its
30 designation as a redevelopment project area. Initiation of a
31 redevelopment project shall be evidenced by either a signed
32 redevelopment agreement or expenditures on eligible
33 redevelopment project costs associated with a redevelopment
34 project.
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1 (Source: P.A. 90-258, eff. 7-30-97.)
2 (65 ILCS 5/11-74.4-4.1)
3 Sec. 11-74.4-4.1. Feasibility study.
4 (a) If a municipality by its corporate authorities, or
5 as it may determine by any commission designated under
6 subsection (k) of Section 11-74.4-4, adopts an ordinance or
7 resolution providing for a feasibility study on the
8 designation of an area as a redevelopment project area, a
9 copy of the ordinance or resolution shall immediately be sent
10 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 (b) If one of the purposes of the planned redevelopment
27 project area should reasonably be expected to result in the
28 displacement of residents from 10 or more inhabited
29 residential units, the municipality shall adopt a resolution
30 or ordinance providing for the feasibility study described in
31 subsection (a). The ordinance or resolution shall also
32 require that the feasibility study include the preparation of
33 the housing impact study set forth in paragraph (5) of
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1 subsection (n) of Section 11-74.4-3. If the redevelopment
2 plan will not result in displacement of residents from
3 inhabited units, and the municipality certifies in the plan
4 that displacement will not result from the plan, then a
5 resolution or ordinance need not be adopted.
6 (Source: P.A. 88-537.)
7 (65 ILCS 5/11-74.4-4.2 new)
8 Sec. 11-74.4-4.2. Interested parties registry. On and
9 after the effective date of this amendatory Act of the 91st
10 General Assembly, the municipality shall by its corporate
11 authority create an "interested parties" registry for
12 activities related to the redevelopment project area. The
13 municipality shall adopt reasonable registration rules and
14 shall prescribe the necessary registration forms for
15 residents and organizations active within the municipality
16 that seek to be placed on the "interested parties" registry.
17 At a minimum, the rules for registration shall provide for a
18 renewable period of registration of not less than 3 years and
19 notification to registered organizations and individuals by
20 mail at the address provided upon registration prior to
21 termination of their registration, unless the municipality
22 decides that it will establish a policy of not terminating
23 interested parties from the registry, in which case no notice
24 will be required. Such rules shall not be used to prohibit
25 or otherwise interfere with the ability of eligible
26 organizations and individuals to register for receipt of
27 information to which they are entitled under this statute,
28 including the information required by:
29 (1) subsection (a) of Section 11-74.4-5;
30 (2) paragraph (9) of subsection (d) of Section
31 11-74.4-5; and
32 (3) subsection (e) of Section 11-74.4-6.
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1 (65 ILCS 5/11-74.4-5) (from Ch. 24, par. 11-74.4-5)
2 Sec. 11-74.4-5. (a) The changes made by this amendatory
3 Act of the 91st General Assembly do not apply to a
4 municipality that, (i) before the effective date of this
5 amendatory Act of the 91st General Assembly, has adopted an
6 ordinance or resolution fixing a time and place for a public
7 hearing under this Section or (ii) before July 1, 1999, has
8 adopted an ordinance or resolution providing for a
9 feasibility study under Section 11-74.4-4.1, but has not yet
10 adopted an ordinance approving redevelopment plans and
11 redevelopment projects or designating redevelopment project
12 areas under Section 11-74.4-4, until after that municipality
13 adopts an ordinance approving redevelopment plans and
14 redevelopment projects or designating redevelopment project
15 areas under Section 11-74.4-4; thereafter the changes made by
16 this amendatory Act of the 91st General Assembly apply to the
17 same extent that they apply to redevelopment plans and
18 redevelopment projects that were approved and redevelopment
19 projects that were designated before the effective date of
20 this amendatory Act of the 91st General Assembly.
21 Prior to the adoption of an ordinance proposing the
22 designation of a redevelopment project area, or approving a
23 redevelopment plan or redevelopment project, the municipality
24 by its corporate authorities, or as it may determine by any
25 commission designated under subsection (k) of Section
26 11-74.4-4 shall adopt an ordinance or resolution fixing a
27 time and place for public hearing. Prior to the adoption of
28 the ordinance or resolution establishing the time and place
29 for the public hearing, the municipality shall make available
30 for public inspection a redevelopment plan or a separate
31 report that provides in reasonable detail the basis for the
32 eligibility of the redevelopment project area qualifying as a
33 blighted area, conservation area, or an industrial park
34 conservation area. The report along with the name of a
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1 person to contact for further information shall be sent
2 within a reasonable time after the adoption of such ordinance
3 or resolution to the affected taxing districts by certified
4 mail. On and after the effective date of this amendatory Act
5 of the 91st General Assembly, the municipality shall print in
6 a newspaper of general circulation within the municipality a
7 notice that interested persons may register with the
8 municipality in order to receive information on the proposed
9 designation of a redevelopment project area or the approval
10 of a redevelopment plan. The notice shall state the place of
11 registration and the operating hours of that place. The
12 municipality shall have adopted reasonable rules to implement
13 this registration process under Section 11-74.4-4.2. Notice
14 of the availability of the redevelopment plan and eligibility
15 report, including how to obtain this information, shall also
16 be sent by mail within a reasonable time after the adoption
17 of the ordinance or resolution to all residents within the
18 postal zip code area or areas contained in whole or in part
19 within the proposed redevelopment project area or
20 organizations that operate in the municipality that have
21 registered with the municipality for that information in
22 accordance with the registration guidelines established by
23 the municipality under Section 11-74.4-4.2.
24 At the public hearing any interested person or affected
25 taxing district may file with the municipal clerk written
26 objections to and may be heard orally in respect to any
27 issues embodied in the notice. The municipality shall hear
28 and determine all protests and objections at the hearing and
29 the hearing may be adjourned to another date without further
30 notice other than a motion to be entered upon the minutes
31 fixing the time and place of the subsequent hearing. At the
32 public hearing or at any time prior to the adoption by the
33 municipality of an ordinance approving a redevelopment plan,
34 the municipality may make changes in the redevelopment plan.
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1 Changes which (1) add additional parcels of property to the
2 proposed redevelopment project area, (2) substantially affect
3 the general land uses proposed in the redevelopment plan, (3)
4 substantially change the nature of or extend the life of the
5 redevelopment project, or (4) increase the number of low or
6 very low income households to be displaced from the
7 redevelopment project area, provided that measured from the
8 time of creation of the redevelopment project area the total
9 displacement of the households will exceed 10, shall be made
10 only after the municipality gives notice, convenes a joint
11 review board, and conducts a public hearing pursuant to the
12 procedures set forth in this Section and in Section 11-74.4-6
13 of this Act. Changes which do not (1) add additional parcels
14 of property to the proposed redevelopment project area, (2)
15 substantially affect the general land uses proposed in the
16 redevelopment plan, (3) substantially change the nature of or
17 extend the life of the redevelopment project, or (4) increase
18 the number of low or very low income households to be
19 displaced from the redevelopment project area, provided that
20 measured from the time of creation of the redevelopment
21 project area the total displacement of the households will
22 exceed 10, may be made without further hearing, provided that
23 the municipality shall give notice of any such changes by
24 mail to each affected taxing district and registrant on the
25 interested parties registry, provided for under Section
26 11-74.4-4.2, and by publication in a newspaper of general
27 circulation within the affected taxing district. Such notice
28 by mail and by publication shall each occur not later than 10
29 days following the adoption by ordinance of such changes.
30 Prior to the adoption of an ordinance approving a
31 redevelopment plan or redevelopment project, or designating a
32 redevelopment project area, changes may be made in the
33 redevelopment plan or project or area which changes do not
34 alter the exterior boundaries, or do not substantially affect
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1 the general land uses established in the plan or
2 substantially change the nature of the redevelopment project,
3 without further hearing or notice, provided that notice of
4 such changes is given by mail to each affected taxing
5 district and by publication in a newspaper or newspapers of
6 general circulation within the taxing districts not less than
7 10 days prior to the adoption of the changes by ordinance.
8 After the adoption of an ordinance approving a redevelopment
9 plan or project or designating a redevelopment project area,
10 no ordinance shall be adopted altering the exterior
11 boundaries, affecting the general land uses established
12 pursuant to the plan or changing the nature of the
13 redevelopment project without complying with the procedures
14 provided in this division pertaining to the initial approval
15 of a redevelopment plan project and designation of
16 redevelopment project area. Hearings with regard to a
17 redevelopment project area, project or plan may be held
18 simultaneously.
19 (b) Prior to holding a public hearing to approve or
20 amend a redevelopment plan or to designate or add additional
21 parcels of property to a After the effective date of this
22 amendatory Act of 1989, prior to the adoption of an ordinance
23 proposing the designation of a redevelopment project area or
24 amending the boundaries of an existing redevelopment project
25 area, the municipality shall convene a joint review board to
26 consider the proposal. The board shall consist of a
27 representative selected by each community college district,
28 local elementary school district and high school district or
29 each local community unit school district, park district,
30 library district, township, fire protection district, and
31 county that will have the has authority to directly levy
32 taxes on the property within the proposed redevelopment
33 project area at the time that the proposed redevelopment
34 project area is approved, a representative selected by the
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1 municipality and a public member. The public member shall
2 first be selected and then the board's chairperson shall be
3 selected by a majority of the other board members present and
4 voting.
5 For redevelopment project areas with redevelopment plans
6 or proposed redevelopment plans that would result in the
7 displacement of residents from 10 or more inhabited
8 residential units or that include 75 or more inhabited
9 residential units, the public member shall be a person who
10 resides in the redevelopment project area. If, as determined
11 by the housing impact study provided for in paragraph (5) of
12 subsection (n) of Section 11-74.4-3, or if no housing impact
13 study is required then based on other reasonable data, the
14 majority of residential units are occupied by very low, low,
15 or moderate income households, as defined in Section 3 of the
16 Illinois Affordable Housing Act, the public member shall be a
17 person who resides in very low, low, or moderate income
18 housing within the redevelopment project area.
19 Municipalities with fewer than 15,000 residents shall not be
20 required to select a person who lives in very low, low, or
21 moderate income housing within the redevelopment project
22 area, provided that the redevelopment plan or project will
23 not result in displacement of residents from 10 or more
24 inhabited units, and the municipality so certifies in the
25 plan. If no person satisfying these requirements is
26 available or if no qualified person will serve as the public
27 member, then the joint review board is relieved of this
28 paragraph's selection requirements for the public member.
29 Within 90 days of the effective date of this amendatory
30 Act of the 91st General Assembly, each municipality that
31 designated a redevelopment project area for which it was not
32 required to convene a joint review board under this Section
33 shall Municipalities that have designated redevelopment
34 project areas prior to the effective date of this amendatory
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1 Act of 1989 may convene a joint review board to perform the
2 duties specified under paragraph (e) of this Section.
3 All board members shall be appointed and the first board
4 meeting held within 14 days following at least 14 days after
5 the notice by the municipality to all the taxing districts as
6 required by Section 11-74.4-6(c) 11-74.4-6c. Such notice
7 shall also advise the taxing bodies represented on the joint
8 review board of the time and place of the first meeting of
9 the board. Additional meetings of the board shall be held
10 upon the call of any member. The municipality seeking
11 designation of the redevelopment project area shall may
12 provide administrative support to the board.
13 The board shall review (i) the public record, planning
14 documents and proposed ordinances approving the redevelopment
15 plan and project and (ii) proposed amendments to the
16 redevelopment plan or additions of parcels of property to the
17 redevelopment project area to be adopted by the municipality.
18 As part of its deliberations, the board may hold additional
19 hearings on the proposal. A board's recommendation shall be
20 an advisory, non-binding recommendation. The recommendation
21 shall be adopted by a majority of those members present and
22 voting. The recommendations shall be which recommendation
23 shall be adopted by a majority vote of the board and
24 submitted to the municipality within 30 days after convening
25 of the board. Failure of the board to submit its report on a
26 timely basis shall not be cause to delay the public hearing
27 or any other step in the process of designating establishing
28 or amending the redevelopment project area but shall be
29 deemed to constitute approval by the joint review board of
30 the matters before it.
31 The board shall base its recommendation to approve or
32 disapprove the redevelopment plan and the designation of the
33 redevelopment project area or the amendment of the
34 redevelopment plan or addition of parcels of property to the
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1 redevelopment project area decision to approve or deny the
2 proposal on the basis of the redevelopment project area and
3 redevelopment plan satisfying the plan requirements, the
4 eligibility criteria defined in Section 11-74.4-3, and the
5 objectives of this Act eligibility criteria defined in
6 Section 11-74.4-3.
7 The board shall issue a written report describing why the
8 redevelopment plan and project area or the amendment thereof
9 meets or fails to meet one or more of the objectives of this
10 Act and both the plan requirements and the eligibility
11 criteria defined in Section 11-74.4-3. In the event the Board
12 does not file a report it shall be presumed that these taxing
13 bodies find the redevelopment project area and redevelopment
14 plan to satisfy the objectives of this Act and the plan
15 requirements and eligibility criteria.
16 If the board recommends rejection of the matters before
17 it, the municipality will have 30 days within which to
18 resubmit the plan or amendment. During this period, the
19 municipality will meet and confer with the board and attempt
20 to resolve those issues set forth in the board's written
21 report that lead to the rejection of the plan or amendment.
22 In the event that the municipality and the board are unable
23 to resolve these differences, or in the event that the
24 resubmitted plan or amendment is rejected by the board, the
25 municipality may proceed with the plan or amendment, but only
26 upon a three-fifths vote of the corporate authority
27 responsible for approval of the plan or amendment, excluding
28 positions of members that are vacant and those members that
29 are ineligible to vote because of conflicts of interest.
30 (c) After a municipality has by ordinance approved a
31 redevelopment plan and designated a redevelopment project
32 area, the plan may be amended and additional properties may
33 be added to the redevelopment project area only as herein
34 provided. Amendments which (1) add additional parcels of
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1 property to the proposed redevelopment project area, (2)
2 substantially affect the general land uses proposed in the
3 redevelopment plan, (3) substantially change the nature of
4 the redevelopment project, (4) increase the total estimated
5 redevelopment project costs set out in the redevelopment plan
6 by more than 5% after adjustment for inflation from the date
7 the plan was adopted, (5) add additional redevelopment
8 project costs to the itemized list of redevelopment project
9 costs set out in the redevelopment plan, or (6) increase the
10 number of low or very low income households to be displaced
11 from the redevelopment project area, provided that measured
12 from the time of creation of the redevelopment project area
13 the total displacement of the households will exceed 10,
14 shall be made only after the municipality gives notice,
15 convenes a joint review board, and conducts a public hearing
16 pursuant to the procedures set forth in this Section and in
17 Section 11-74.4-6 of this Act. Changes which do not (1) add
18 additional parcels of property to the proposed redevelopment
19 project area, (2) substantially affect the general land uses
20 proposed in the redevelopment plan, (3) substantially change
21 the nature of the redevelopment project, (4) increase the
22 total estimated redevelopment project cost set out in the
23 redevelopment plan by more than 5% after adjustment for
24 inflation from the date the plan was adopted, (5) add
25 additional redevelopment project costs to the itemized list
26 of redevelopment project costs set out in the redevelopment
27 plan, or (6) increase the number of low or very low income
28 households to be displaced from the redevelopment project
29 area, provided that measured from the time of creation of the
30 redevelopment project area the total displacement of the
31 households will exceed 10, may be made without further
32 hearing, provided that the municipality shall give notice of
33 any such changes by mail to each affected taxing district and
34 registrant on the interested parties registry, provided for
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1 under Section 11-74.4-4.2, and by publication in a newspaper
2 of general circulation within the affected taxing district.
3 Such notice by mail and by publication shall each occur not
4 later than 10 days following the adoption by ordinance of
5 such changes. After the adoption of an ordinance approving a
6 redevelopment plan or project or designating a redevelopment
7 project area, no ordinance shall be adopted altering the
8 exterior boundaries, affecting the general land uses
9 established pursuant to the plan or changing the nature of
10 the redevelopment project without complying with the
11 procedures provided in this division pertaining to the
12 initial approval of a redevelopment plan project and
13 designation of a redevelopment project area.
14 (d) After the effective date of this amendatory Act of
15 the 91st General Assembly 1994 and adoption of an ordinance
16 approving a redevelopment plan or project, a municipality
17 with a population of less than 1,000,000 shall submit the
18 following information for each redevelopment project area (i)
19 to the State Comptroller and (ii) to all taxing districts
20 overlapping the redevelopment project area within 90 days
21 after the close of each municipal fiscal year notify all
22 taxing districts represented on the joint review board in
23 which the redevelopment project area is located that any or
24 all of the following information will be made available no
25 later than 180 days after the close of each municipal fiscal
26 year or as soon thereafter as the audited financial
27 statements become available and, in any case, shall be
28 submitted before the annual meeting of the Joint Review Board
29 to each of the taxing districts that overlap the
30 redevelopment project area upon receipt of a written request
31 of a majority of such taxing districts for such information:
32 (1) Any amendments to the redevelopment plan, the
33 redevelopment project area, or the State Sales Tax
34 Boundary.
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1 (1.5) A list of the redevelopment project areas
2 administered by the municipality and, if applicable, the
3 date each redevelopment project area was designated or
4 terminated by the municipality.
5 (2) Audited financial statements of the special tax
6 allocation fund once a cumulative total of $100,000 has
7 been deposited in the fund.
8 (3) Certification of the Chief Executive Officer of
9 the municipality that the municipality has complied with
10 all of the requirements of this Act during the preceding
11 fiscal year.
12 (4) An opinion of legal counsel that the
13 municipality is in compliance with this Act.
14 (5) An analysis of the special tax allocation fund
15 which sets forth:
16 (A) the balance in the special tax allocation
17 fund at the beginning of the fiscal year;
18 (B) all amounts deposited in the special tax
19 allocation fund by source;
20 (C) an itemized list of all expenditures from
21 the special tax allocation fund by category of
22 permissible redevelopment project cost; and
23 (D) the balance in the special tax allocation
24 fund at the end of the fiscal year including a
25 breakdown of that balance by source and a breakdown
26 of that balance identifying any portion of the
27 balance that is required, pledged, earmarked, or
28 otherwise designated for payment of or securing of
29 obligations and anticipated redevelopment project
30 costs. Any portion of such ending balance that has
31 not been identified or is not identified as being
32 required, pledged, earmarked, or otherwise
33 designated for payment of or securing of obligations
34 or anticipated redevelopment projects costs shall be
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1 designated as surplus if it is not required for
2 anticipated redevelopment project costs or to pay
3 debt service on bonds issued to finance
4 redevelopment project costs, as set forth in Section
5 11-74.4-7 hereof.
6 (6) A description of all property purchased by the
7 municipality within the redevelopment project area
8 including:
9 (A) Street address.
10 (B) Approximate size or description of
11 property.
12 (C) Purchase price.
13 (D) Seller of property.
14 (7) A statement setting forth all activities
15 undertaken in furtherance of the objectives of the
16 redevelopment plan, including:
17 (A) Any project implemented in the preceding
18 fiscal year.
19 (B) A description of the redevelopment
20 activities undertaken.
21 (C) A description of any agreements entered
22 into by the municipality with regard to the
23 disposition or redevelopment of any property within
24 the redevelopment project area or the area within
25 the State Sales Tax Boundary.
26 (D) Additional information on the use of all
27 funds received under this Division and steps taken
28 by the municipality to achieve the objectives of the
29 redevelopment plan.
30 (E) Information regarding contracts that the
31 municipality's tax increment advisors or consultants
32 have entered into with entities or persons that have
33 received, or are receiving, payments financed by tax
34 increment revenues produced by the same
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1 redevelopment project area.
2 (F) Any reports submitted to the municipality
3 by the joint review board.
4 (G) A review of public and, to the extent
5 possible, private investment actually undertaken to
6 date after the effective date of this amendatory Act
7 of the 91st General Assembly and estimated to be
8 undertaken during the following year. This review
9 shall, on a project-by-project basis, set forth the
10 estimated amounts of public and private investment
11 incurred after the effective date of this amendatory
12 Act of the 91st General Assembly and provide the
13 ratio of private investment to public investment to
14 the date of the report and as estimated to the
15 completion of the redevelopment project.
16 (8) With regard to any obligations issued by the
17 municipality:
18 (A) copies of any official statements; and
19 (B) an analysis prepared by financial advisor
20 or underwriter setting forth: (i) nature and term of
21 obligation; and (ii) projected debt service
22 including required reserves and debt coverage.
23 (9) For special tax allocation funds that have
24 experienced cumulative deposits of incremental tax
25 revenues of $100,000 or more, a certified audit report
26 reviewing compliance with this Act performed by an
27 independent public accountant certified and licensed by
28 the authority of the State of Illinois. The financial
29 portion of the audit must be conducted in accordance with
30 Standards for Audits of Governmental Organizations,
31 Programs, Activities, and Functions adopted by the
32 Comptroller General of the United States (1981), as
33 amended. The audit report shall contain a letter from
34 the independent certified public accountant indicating
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1 compliance or noncompliance with the requirements of
2 subsection (q) of Section 11-74.4-3. For redevelopment
3 plans or projects that would result in the displacement
4 of residents from 10 or more inhabited residential units
5 or that contain 75 or more inhabited residential units,
6 notice of the availability of the information, including
7 how to obtain the report, required in this subsection
8 shall also be sent by mail to all residents or
9 organizations that operate in the municipality that
10 register with the municipality for that information
11 according to registration procedures adopted under
12 Section 11-74.4-4.2. All municipalities are subject to
13 this provision.
14 (d-1) Prior to the effective date of this amendatory Act
15 of the 91st General Assembly, municipalities with populations
16 of over 1,000,000 shall, after adoption of a redevelopment
17 plan or project, make available upon request to any taxing
18 district in which the redevelopment project area is located
19 the following information:
20 (1) Any amendments to the redevelopment plan, the
21 redevelopment project area, or the State Sales Tax
22 Boundary; and
23 (2) In connection with any redevelopment project
24 area for which the municipality has outstanding
25 obligations issued to provide for redevelopment project
26 costs pursuant to Section 11-74.4-7, audited financial
27 statements of the special tax allocation fund.
28 (e) One year, two years and at the end of every
29 subsequent three year period thereafter, The joint review
30 board shall meet annually 180 days after the close of the
31 municipal fiscal year or as soon as the redevelopment project
32 audit for that fiscal year becomes available to review the
33 effectiveness and status of the redevelopment project area up
34 to that date.
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1 (f) (Blank). If the redevelopment project area has been
2 in existence for at least 5 years and the municipality
3 proposes a redevelopment project with a total redevelopment
4 project cost exceeding 35% of the total amount budgeted in
5 the redevelopment plan for all redevelopment projects, the
6 municipality, in addition to any other requirements imposed
7 by this Act, shall convene a meeting of the joint review
8 board as provided in this Act for the purpose of reviewing
9 the redevelopment project.
10 (g) In the event that a municipality has held a public
11 hearing under this Section prior to March 14, 1994 (the
12 effective date of Public Act 88-537), the requirements
13 imposed by Public Act 88-537 relating to the method of fixing
14 the time and place for public hearing, the materials and
15 information required to be made available for public
16 inspection, and the information required to be sent after
17 adoption of an ordinance or resolution fixing a time and
18 place for public hearing shall not be applicable.
19 (Source: P.A. 88-537; 88-688, eff. 1-24-95; revised
20 10-31-98.)
21 (65 ILCS 5/11-74.4-6) (from Ch. 24, par. 11-74.4-6)
22 Sec. 11-74.4-6. (a) Except as provided herein, notice of
23 the public hearing shall be given by publication and mailing.
24 Notice by publication shall be given by publication at least
25 twice, the first publication to be not more than 30 nor less
26 than 10 days prior to the hearing in a newspaper of general
27 circulation within the taxing districts having property in
28 the proposed redevelopment project area. Notice by mailing
29 shall be given by depositing such notice in the United States
30 mails by certified mail addressed to the person or persons
31 in whose name the general taxes for the last preceding year
32 were paid on each lot, block, tract, or parcel of land lying
33 within the project redevelopment area. Said notice shall be
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1 mailed not less than 10 days prior to the date set for the
2 public hearing. In the event taxes for the last preceding
3 year were not paid, the notice shall also be sent to the
4 persons last listed on the tax rolls within the preceding 3
5 years as the owners of such property. For redevelopment
6 project areas with redevelopment plans or proposed
7 redevelopment plans that would require removal of 10 or more
8 inhabited residential units or that contain 75 or more
9 inhabited residential units, the municipality shall make a
10 good faith effort to notify by mail all residents of the
11 redevelopment project area. At a minimum, the municipality
12 shall mail a notice to each residential address located
13 within the redevelopment project area. The municipality
14 shall endeavor to ensure that all such notices are
15 effectively communicated and shall include (in addition to
16 notice in English) notice in the predominant language other
17 than English when appropriate.
18 (b) The notices issued pursuant to this Section shall
19 include the following:
20 (1) The time and place of public hearing;
21 (2) The boundaries of the proposed redevelopment
22 project area by legal description and by street location
23 where possible;
24 (3) A notification that all interested persons will
25 be given an opportunity to be heard at the public
26 hearing;
27 (4) A description of the redevelopment plan or
28 redevelopment project for the proposed redevelopment
29 project area if a plan or project is the subject matter
30 of the hearing.
31 (5) Such other matters as the municipality may deem
32 appropriate.
33 (c) Not less than 45 days prior to the date set for
34 hearing, the municipality shall give notice by mail as
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1 provided in subsection (a) to all taxing districts of which
2 taxable property is included in the redevelopment project
3 area, project or plan and to the Department of Commerce and
4 Community Affairs, and in addition to the other requirements
5 under subsection (b) the notice shall include an invitation
6 to the Department of Commerce and Community Affairs and each
7 taxing district to submit comments to the municipality
8 concerning the subject matter of the hearing prior to the
9 date of hearing.
10 (d) In the event that any municipality has by ordinance
11 adopted tax increment financing prior to 1987, and has
12 complied with the notice requirements of this Section, except
13 that the notice has not included the requirements of
14 subsection (b), paragraphs (2), (3) and (4), and within 90
15 days of the effective date of this amendatory Act of 1991,
16 that municipality passes an ordinance which contains findings
17 that: (1) all taxing districts prior to the time of the
18 hearing required by Section 11-74.4-5 were furnished with
19 copies of a map incorporated into the redevelopment plan and
20 project substantially showing the legal boundaries of the
21 redevelopment project area; (2) the redevelopment plan and
22 project, or a draft thereof, contained a map substantially
23 showing the legal boundaries of the redevelopment project
24 area and was available to the public at the time of the
25 hearing; and (3) since the adoption of any form of tax
26 increment financing authorized by this Act, and prior to June
27 1, 1991, no objection or challenge has been made in writing
28 to the municipality in respect to the notices required by
29 this Section, then the municipality shall be deemed to have
30 met the notice requirements of this Act and all actions of
31 the municipality taken in connection with such notices as
32 were given are hereby validated and hereby declared to be
33 legally sufficient for all purposes of this Act.
34 (e) If a municipality desires to propose a redevelopment
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1 plan for a redevelopment project area that would result in
2 the displacement of residents from 10 or more inhabited
3 residential units or for a redevelopment project area that
4 contains 75 or more inhabited residential units, the
5 municipality shall hold a public meeting before the mailing
6 of the notices of public hearing as provided in subsection
7 (c) of this Section. The meeting shall be for the purpose of
8 enabling the municipality to advise the public, taxing
9 districts having real property in the redevelopment project
10 area, taxpayers who own property in the proposed
11 redevelopment project area, and residents in the area as to
12 the municipality's possible intent to prepare a redevelopment
13 plan and designate a redevelopment project area and to
14 receive public comment. The time and place for the meeting
15 shall be set by the head of the municipality's Department of
16 Planning or other department official designated by the mayor
17 or city or village manager without the necessity of a
18 resolution or ordinance of the municipality and may be held
19 by a member of the staff of the Department of Planning of the
20 municipality or by any other person, body, or commission
21 designated by the corporate authorities. The meeting shall
22 be held at least 14 business days before the mailing of the
23 notice of public hearing provided for in subsection (c) of
24 this Section.
25 Notice of the public meeting shall be given by mail.
26 Notice by mail shall be not less than 15 days before the date
27 of the meeting and shall be sent by certified mail to all
28 taxing districts having real property in the proposed
29 redevelopment project area and to all entities requesting
30 that information that have registered with a person and
31 department designated by the municipality in accordance with
32 registration guidelines established by the municipality
33 pursuant to Section 11-74.4-4.2. The municipality shall make
34 a good faith effort to notify all residents and the last
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1 known persons who paid property taxes on real estate in a
2 redevelopment project area. This requirement shall be deemed
3 to be satisfied if the municipality mails, by regular mail, a
4 notice to each residential address and the person or persons
5 in whose name property taxes were paid on real property for
6 the last preceding year located within the redevelopment
7 project area. Notice shall be in languages other than
8 English when appropriate. The notices issued under this
9 subsection shall include the following:
10 (1) The time and place of the meeting.
11 (2) The boundaries of the area to be studied for
12 possible designation as a redevelopment project area by
13 street and location.
14 (3) The purpose or purposes of establishing a
15 redevelopment project area.
16 (4) A brief description of tax increment financing.
17 (5) The name, telephone number, and address of the
18 person who can be contacted for additional information
19 about the proposed redevelopment project area and who
20 should receive all comments and suggestions regarding
21 the development of the area to be studied.
22 (6) Notification that all interested persons will
23 be given an opportunity to be heard at the public
24 meeting.
25 (7) Such other matters as the municipality deems
26 appropriate.
27 At the public meeting, any interested person or
28 representative of an affected taxing district may be heard
29 orally and may file, with the person conducting the meeting,
30 statements that pertain to the subject matter of the meeting.
31
32 (Source: P.A. 86-142; 87-813.)
33 (65 ILCS 5/11-74.4-7) (from Ch. 24, par. 11-74.4-7)
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1 Sec. 11-74.4-7. Obligations secured by the special tax
2 allocation fund set forth in Section 11-74.4-8 for the
3 redevelopment project area may be issued to provide for
4 redevelopment project costs. Such obligations, when so
5 issued, shall be retired in the manner provided in the
6 ordinance authorizing the issuance of such obligations by the
7 receipts of taxes levied as specified in Section 11-74.4-9
8 against the taxable property included in the area, by
9 revenues as specified by Section 11-74.4-8a and other revenue
10 designated by the municipality. A municipality may in the
11 ordinance pledge all or any part of the funds in and to be
12 deposited in the special tax allocation fund created pursuant
13 to Section 11-74.4-8 to the payment of the redevelopment
14 project costs and obligations. Any pledge of funds in the
15 special tax allocation fund shall provide for distribution to
16 the taxing districts and to the Illinois Department of
17 Revenue of moneys not required, pledged, earmarked, or
18 otherwise designated for payment and securing of the
19 obligations and anticipated redevelopment project costs and
20 such excess funds shall be calculated annually and deemed to
21 be "surplus" funds. In the event a municipality only applies
22 or pledges a portion of the funds in the special tax
23 allocation fund for the payment or securing of anticipated
24 redevelopment project costs or of obligations, any such funds
25 remaining in the special tax allocation fund after complying
26 with the requirements of the application or pledge, shall
27 also be calculated annually and deemed "surplus" funds. All
28 surplus funds in the special tax allocation fund, subject to
29 the provisions of (6.1) of Section 11-74.4-8a, shall be
30 distributed annually within 180 days after the close of the
31 municipality's fiscal year by being paid by the municipal
32 treasurer to the County Collector, to the Department of
33 Revenue and to the municipality in direct proportion to the
34 tax incremental revenue received as a result of an increase
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1 in the equalized assessed value of property in the
2 redevelopment project area, tax incremental revenue received
3 from the State and tax incremental revenue received from the
4 municipality, but not to exceed as to each such source the
5 total incremental revenue received from that source. Except
6 that any special tax allocation fund subject to provision in
7 (6.1) of Section 11-74.4-8a shall comply with the provisions
8 in that Section. The County Collector shall thereafter make
9 distribution to the respective taxing districts in the same
10 manner and proportion as the most recent distribution by the
11 county collector to the affected districts of real property
12 taxes from real property in the redevelopment project area.
13 Without limiting the foregoing in this Section, the
14 municipality may in addition to obligations secured by the
15 special tax allocation fund pledge for a period not greater
16 than the term of the obligations towards payment of such
17 obligations any part or any combination of the following: (a)
18 net revenues of all or part of any redevelopment project; (b)
19 taxes levied and collected on any or all property in the
20 municipality; (c) the full faith and credit of the
21 municipality; (d) a mortgage on part or all of the
22 redevelopment project; or (e) any other taxes or anticipated
23 receipts that the municipality may lawfully pledge.
24 Such obligations may be issued in one or more series
25 bearing interest at such rate or rates as the corporate
26 authorities of the municipality shall determine by ordinance.
27 Such obligations shall bear such date or dates, mature at
28 such time or times not exceeding 20 years from their
29 respective dates, be in such denomination, carry such
30 registration privileges, be executed in such manner, be
31 payable in such medium of payment at such place or places,
32 contain such covenants, terms and conditions, and be subject
33 to redemption as such ordinance shall provide. Obligations
34 issued pursuant to this Act may be sold at public or private
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1 sale at such price as shall be determined by the corporate
2 authorities of the municipalities. No referendum approval of
3 the electors shall be required as a condition to the issuance
4 of obligations pursuant to this Division except as provided
5 in this Section.
6 In the event the municipality authorizes issuance of
7 obligations pursuant to the authority of this Division
8 secured by the full faith and credit of the municipality,
9 which obligations are other than obligations which may be
10 issued under home rule powers provided by Article VII,
11 Section 6 of the Illinois Constitution, or pledges taxes
12 pursuant to (b) or (c) of the second paragraph of this
13 section, the ordinance authorizing the issuance of such
14 obligations or pledging such taxes shall be published within
15 10 days after such ordinance has been passed in one or more
16 newspapers, with general circulation within such
17 municipality. The publication of the ordinance shall be
18 accompanied by a notice of (1) the specific number of voters
19 required to sign a petition requesting the question of the
20 issuance of such obligations or pledging taxes to be
21 submitted to the electors; (2) the time in which such
22 petition must be filed; and (3) the date of the prospective
23 referendum. The municipal clerk shall provide a petition
24 form to any individual requesting one.
25 If no petition is filed with the municipal clerk, as
26 hereinafter provided in this Section, within 30 days after
27 the publication of the ordinance, the ordinance shall be in
28 effect. But, if within that 30 day period a petition is
29 filed with the municipal clerk, signed by electors in the
30 municipality numbering 10% or more of the number of
31 registered voters in the municipality, asking that the
32 question of issuing obligations using full faith and credit
33 of the municipality as security for the cost of paying for
34 redevelopment project costs, or of pledging taxes for the
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1 payment of such obligations, or both, be submitted to the
2 electors of the municipality, the corporate authorities of
3 the municipality shall call a special election in the manner
4 provided by law to vote upon that question, or, if a general,
5 State or municipal election is to be held within a period of
6 not less than 30 or more than 90 days from the date such
7 petition is filed, shall submit the question at the next
8 general, State or municipal election. If it appears upon the
9 canvass of the election by the corporate authorities that a
10 majority of electors voting upon the question voted in favor
11 thereof, the ordinance shall be in effect, but if a majority
12 of the electors voting upon the question are not in favor
13 thereof, the ordinance shall not take effect.
14 The ordinance authorizing the obligations may provide
15 that the obligations shall contain a recital that they are
16 issued pursuant to this Division, which recital shall be
17 conclusive evidence of their validity and of the regularity
18 of their issuance.
19 In the event the municipality authorizes issuance of
20 obligations pursuant to this Section secured by the full
21 faith and credit of the municipality, the ordinance
22 authorizing the obligations may provide for the levy and
23 collection of a direct annual tax upon all taxable property
24 within the municipality sufficient to pay the principal
25 thereof and interest thereon as it matures, which levy may be
26 in addition to and exclusive of the maximum of all other
27 taxes authorized to be levied by the municipality, which
28 levy, however, shall be abated to the extent that monies from
29 other sources are available for payment of the obligations
30 and the municipality certifies the amount of said monies
31 available to the county clerk.
32 A certified copy of such ordinance shall be filed with
33 the county clerk of each county in which any portion of the
34 municipality is situated, and shall constitute the authority
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1 for the extension and collection of the taxes to be deposited
2 in the special tax allocation fund.
3 A municipality may also issue its obligations to refund
4 in whole or in part, obligations theretofore issued by such
5 municipality under the authority of this Act, whether at or
6 prior to maturity, provided however, that the last maturity
7 of the refunding obligations shall not be expressed to mature
8 later than December 31 of the year in which the payment to
9 the municipal treasurer as provided in subsection (b) of
10 Section 11-74.4-8 of this Act is to be made with respect to
11 ad valorem taxes levied in the twenty-third calendar year
12 after the year in which the ordinance approving the
13 redevelopment project area is adopted 23 years from the date
14 of the ordinance approving the redevelopment project area if
15 the ordinance was adopted on or after January 15, 1981, and
16 not later than December 31 of the year in which the payment
17 to the municipal treasurer as provided in subsection (b) of
18 Section 11-74.4-8 of this Act is to be made with respect to
19 ad valorem taxes levied in the thirty-fifth calendar year
20 after the year in which the ordinance approving the
21 redevelopment project area is adopted more than 35 years if
22 the ordinance was adopted before January 15, 1981, or if the
23 ordinance was adopted in April, 1984, July, 1985, or if the
24 ordinance was adopted in December, 1987 and the redevelopment
25 project is located within one mile of Midway Airport, or if
26 the municipality is subject to the Local Government Financial
27 Planning and Supervision Act, or if the ordinance was adopted
28 on December 31, 1986 by a municipality located in Clinton
29 County for which at least $250,000 of tax increment bonds
30 were authorized on June 17, 1997 and, for redevelopment
31 project areas for which bonds were issued before July 29,
32 1991, in connection with a redevelopment project in the area
33 within the State Sales Tax Boundary and which were extended
34 by municipal ordinance under subsection (n) of Section
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1 11-74.4-3, the last maturity of the refunding obligations
2 shall not be expressed to mature later than the date on which
3 the redevelopment project area is terminated or December 31,
4 2013, whichever date occurs first.
5 In the event a municipality issues obligations under home
6 rule powers or other legislative authority the proceeds of
7 which are pledged to pay for redevelopment project costs, the
8 municipality may, if it has followed the procedures in
9 conformance with this division, retire said obligations from
10 funds in the special tax allocation fund in amounts and in
11 such manner as if such obligations had been issued pursuant
12 to the provisions of this division.
13 All obligations heretofore or hereafter issued pursuant
14 to this Act shall not be regarded as indebtedness of the
15 municipality issuing such obligations or any other taxing
16 district for the purpose of any limitation imposed by law.
17 (Source: P.A. 89-357; eff. 8-17-95; 90-379, eff. 8-14-97.)
18 (65 ILCS 5/11-74.4-7.1)
19 Sec. 11-74.4-7.1. After the effective date of this
20 amendatory Act of 1994 and prior to the effective date of
21 this amendatory Act of the 91st General Assembly, a
22 municipality with a population of less than 1,000,000, prior
23 to construction of a new municipal public building that
24 provides governmental services to be financed with tax
25 increment revenues as authorized in paragraph (4) of
26 subsection (q) of Section 11-74.4-3, shall agree with the
27 affected taxing districts to pay them, to the extent tax
28 increment finance revenues are available, over the life of
29 the redevelopment project area, an amount equal to 25% of the
30 cost of the building, such payments to be paid to the taxing
31 districts in the same proportion as the most recent
32 distribution by the county collector to the affected taxing
33 districts of real property taxes from taxable real property
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1 in the redevelopment project area.
2 This Section does not apply to a municipality that,
3 before March 14, 1994 (the effective date of Public Act
4 88-537), acquired or leased the land (i) upon which a new
5 municipal public building is to be constructed and (ii) for
6 which an existing redevelopment plan or a redevelopment
7 agreement includes provisions for the construction of a new
8 municipal public building.
9 (Source: P.A. 88-537; 88-688, eff. 1-24-95.)
10 (65 ILCS 5/11-74.4-8) (from Ch. 24, par. 11-74.4-8)
11 Sec. 11-74.4-8. A municipality may not adopt tax
12 increment financing in a redevelopment project area after the
13 effective date of this amendatory Act of 1997 that will
14 encompass an area that is currently included in an enterprise
15 zone created under the Illinois Enterprise Zone Act unless
16 that municipality, pursuant to Section 5.4 of the Illinois
17 Enterprise Zone Act, amends the enterprise zone designating
18 ordinance to limit the eligibility for tax abatements as
19 provided in Section 5.4.1 of the Illinois Enterprise Zone
20 Act. A municipality, at the time a redevelopment project
21 area is designated, may adopt tax increment allocation
22 financing by passing an ordinance providing that the ad
23 valorem taxes, if any, arising from the levies upon taxable
24 real property in such redevelopment project area by taxing
25 districts and tax rates determined in the manner provided in
26 paragraph (c) of Section 11-74.4-9 each year after the
27 effective date of the ordinance until redevelopment project
28 costs and all municipal obligations financing redevelopment
29 project costs incurred under this Division have been paid
30 shall be divided as follows:
31 (a) That portion of taxes levied upon each taxable lot,
32 block, tract or parcel of real property which is attributable
33 to the lower of the current equalized assessed value or the
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1 initial equalized assessed value of each such taxable lot,
2 block, tract or parcel of real property in the redevelopment
3 project area shall be allocated to and when collected shall
4 be paid by the county collector to the respective affected
5 taxing districts in the manner required by law in the absence
6 of the adoption of tax increment allocation financing.
7 (b) That portion, if any, of such taxes which is
8 attributable to the increase in the current equalized
9 assessed valuation of each taxable lot, block, tract or
10 parcel of real property in the redevelopment project area
11 over and above the initial equalized assessed value of each
12 property in the project area shall be allocated to and when
13 collected shall be paid to the municipal treasurer who shall
14 deposit said taxes into a special fund called the special tax
15 allocation fund of the municipality for the purpose of paying
16 redevelopment project costs and obligations incurred in the
17 payment thereof. In any county with a population of 3,000,000
18 or more that has adopted a procedure for collecting taxes
19 that provides for one or more of the installments of the
20 taxes to be billed and collected on an estimated basis, the
21 municipal treasurer shall be paid for deposit in the special
22 tax allocation fund of the municipality, from the taxes
23 collected from estimated bills issued for property in the
24 redevelopment project area, the difference between the amount
25 actually collected from each taxable lot, block, tract, or
26 parcel of real property within the redevelopment project area
27 and an amount determined by multiplying the rate at which
28 taxes were last extended against the taxable lot, block,
29 track, or parcel of real property in the manner provided in
30 subsection (c) of Section 11-74.4-9 by the initial equalized
31 assessed value of the property divided by the number of
32 installments in which real estate taxes are billed and
33 collected within the county;, provided that the payments on
34 or before December 31, 1999 to a municipal treasurer shall be
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1 made only if each of the following conditions are met:
2 (1) The total equalized assessed value of the
3 redevelopment project area as last determined was not
4 less than 175% of the total initial equalized assessed
5 value.
6 (2) Not more than 50% of the total equalized
7 assessed value of the redevelopment project area as last
8 determined is attributable to a piece of property
9 assigned a single real estate index number.
10 (3) The municipal clerk has certified to the county
11 clerk that the municipality has issued its obligations to
12 which there has been pledged the incremental property
13 taxes of the redevelopment project area or taxes levied
14 and collected on any or all property in the municipality
15 or the full faith and credit of the municipality to pay
16 or secure payment for all or a portion of the
17 redevelopment project costs. The certification shall be
18 filed annually no later than September 1 for the
19 estimated taxes to be distributed in the following year;
20 however, for the year 1992 the certification shall be
21 made at any time on or before March 31, 1992.
22 (4) The municipality has not requested that the
23 total initial equalized assessed value of real property
24 be adjusted as provided in subsection (b) of Section
25 11-74.4-9.
26 The conditions of paragraphs (1) through (4) do not apply
27 after December 31, 1999 to payments to a municipal treasurer
28 made by a county with 3,000,000 or more inhabitants that has
29 adopted an estimated billing procedure for collecting taxes.
30 If a county that has adopted the estimated billing procedure
31 makes an erroneous overpayment of tax revenue to the
32 municipal treasurer, then the county may seek a refund of
33 that overpayment. The county shall send the municipal
34 treasurer a notice of liability for the overpayment on or
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1 before the mailing date of the next real estate tax bill
2 within the county. The refund shall be limited to the amount
3 of the overpayment.
4 It is the intent of this Division that after the
5 effective date of this amendatory Act of 1988 a
6 municipality's own ad valorem tax arising from levies on
7 taxable real property be included in the determination of
8 incremental revenue in the manner provided in paragraph (c)
9 of Section 11-74.4-9. If the municipality does not extend
10 such a tax, it shall annually deposit in the municipality's
11 Special Tax Increment Fund an amount equal to 10% of the
12 total contributions to the fund from all other taxing
13 districts in that year. The annual 10% deposit required by
14 this paragraph shall be limited to the actual amount of
15 municipally produced incremental tax revenues available to
16 the municipality from taxpayers located in the redevelopment
17 project area in that year if: (a) the plan for the area
18 restricts the use of the property primarily to industrial
19 purposes, (b) the municipality establishing the redevelopment
20 project area is a home-rule community with a 1990 population
21 of between 25,000 and 50,000, (c) the municipality is wholly
22 located within a county with a 1990 population of over
23 750,000 and (d) the redevelopment project area was
24 established by the municipality prior to June 1, 1990. This
25 payment shall be in lieu of a contribution of ad valorem
26 taxes on real property. If no such payment is made, any
27 redevelopment project area of the municipality shall be
28 dissolved.
29 If a municipality has adopted tax increment allocation
30 financing by ordinance and the County Clerk thereafter
31 certifies the "total initial equalized assessed value as
32 adjusted" of the taxable real property within such
33 redevelopment project area in the manner provided in
34 paragraph (b) of Section 11-74.4-9, each year after the date
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1 of the certification of the total initial equalized assessed
2 value as adjusted until redevelopment project costs and all
3 municipal obligations financing redevelopment project costs
4 have been paid the ad valorem taxes, if any, arising from the
5 levies upon the taxable real property in such redevelopment
6 project area by taxing districts and tax rates determined in
7 the manner provided in paragraph (c) of Section 11-74.4-9
8 shall be divided as follows:
9 (1) That portion of the taxes levied upon each
10 taxable lot, block, tract or parcel of real property
11 which is attributable to the lower of the current
12 equalized assessed value or "current equalized assessed
13 value as adjusted" or the initial equalized assessed
14 value of each such taxable lot, block, tract, or parcel
15 of real property existing at the time tax increment
16 financing was adopted, minus the total current homestead
17 exemptions provided by Sections 15-170 and 15-175 of the
18 Property Tax Code in the redevelopment project area shall
19 be allocated to and when collected shall be paid by the
20 county collector to the respective affected taxing
21 districts in the manner required by law in the absence of
22 the adoption of tax increment allocation financing.
23 (2) That portion, if any, of such taxes which is
24 attributable to the increase in the current equalized
25 assessed valuation of each taxable lot, block, tract, or
26 parcel of real property in the redevelopment project
27 area, over and above the initial equalized assessed value
28 of each property existing at the time tax increment
29 financing was adopted, minus the total current homestead
30 exemptions pertaining to each piece of property provided
31 by Sections 15-170 and 15-175 of the Property Tax Code in
32 the redevelopment project area, shall be allocated to and
33 when collected shall be paid to the municipal Treasurer,
34 who shall deposit said taxes into a special fund called
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1 the special tax allocation fund of the municipality for
2 the purpose of paying redevelopment project costs and
3 obligations incurred in the payment thereof.
4 The municipality may pledge in the ordinance the funds in
5 and to be deposited in the special tax allocation fund for
6 the payment of such costs and obligations. No part of the
7 current equalized assessed valuation of each property in the
8 redevelopment project area attributable to any increase above
9 the total initial equalized assessed value, or the total
10 initial equalized assessed value as adjusted, of such
11 properties shall be used in calculating the general State
12 school aid formula, provided for in Section 18-8 of the
13 School Code, until such time as all redevelopment project
14 costs have been paid as provided for in this Section.
15 Whenever a municipality issues bonds for the purpose of
16 financing redevelopment project costs, such municipality may
17 provide by ordinance for the appointment of a trustee, which
18 may be any trust company within the State, and for the
19 establishment of such funds or accounts to be maintained by
20 such trustee as the municipality shall deem necessary to
21 provide for the security and payment of the bonds. If such
22 municipality provides for the appointment of a trustee, such
23 trustee shall be considered the assignee of any payments
24 assigned by the municipality pursuant to such ordinance and
25 this Section. Any amounts paid to such trustee as assignee
26 shall be deposited in the funds or accounts established
27 pursuant to such trust agreement, and shall be held by such
28 trustee in trust for the benefit of the holders of the bonds,
29 and such holders shall have a lien on and a security interest
30 in such funds or accounts so long as the bonds remain
31 outstanding and unpaid. Upon retirement of the bonds, the
32 trustee shall pay over any excess amounts held to the
33 municipality for deposit in the special tax allocation fund.
34 When such redevelopment projects costs, including without
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1 limitation all municipal obligations financing redevelopment
2 project costs incurred under this Division, have been paid,
3 all surplus funds then remaining in the special tax
4 allocation fund shall be distributed by being paid by the
5 municipal treasurer to the Department of Revenue, the
6 municipality and the county collector; first to the
7 Department of Revenue and the municipality in direct
8 proportion to the tax incremental revenue received from the
9 State and the municipality, but not to exceed the total
10 incremental revenue received from the State or the
11 municipality less any annual surplus distribution of
12 incremental revenue previously made; with any remaining funds
13 to be paid to the County Collector who shall immediately
14 thereafter pay said funds to the taxing districts in the
15 redevelopment project area in the same manner and proportion
16 as the most recent distribution by the county collector to
17 the affected districts of real property taxes from real
18 property in the redevelopment project area.
19 Upon the payment of all redevelopment project costs,
20 retirement of obligations and the distribution of any excess
21 monies pursuant to this Section, the municipality shall adopt
22 an ordinance dissolving the special tax allocation fund for
23 the redevelopment project area and terminating the
24 designation of the redevelopment project area as a
25 redevelopment project area. Municipalities shall notify
26 affected taxing districts prior to November 1 if the
27 redevelopment project area is to be terminated by December 31
28 of that same year. If a municipality extends estimated dates
29 of completion of a redevelopment project and retirement of
30 obligations to finance a redevelopment project, as allowed by
31 this amendatory Act of 1993, that extension shall not extend
32 the property tax increment allocation financing authorized by
33 this Section. Thereafter the rates of the taxing districts
34 shall be extended and taxes levied, collected and distributed
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1 in the manner applicable in the absence of the adoption of
2 tax increment allocation financing.
3 Nothing in this Section shall be construed as relieving
4 property in such redevelopment project areas from being
5 assessed as provided in the Property Tax Code or as relieving
6 owners of such property from paying a uniform rate of taxes,
7 as required by Section 4 of Article 9 of the Illinois
8 Constitution.
9 (Source: P.A. 90-258, eff. 7-30-97.)
10 (65 ILCS 5/11-74.4-8a) (from Ch. 24, par. 11-74.4-8a)
11 Sec. 11-74.4-8a. (1) Until June 1, 1988, a municipality
12 which has adopted tax increment allocation financing prior to
13 January 1, 1987, may by ordinance (1) authorize the
14 Department of Revenue, subject to appropriation, to annually
15 certify and cause to be paid from the Illinois Tax Increment
16 Fund to such municipality for deposit in the municipality's
17 special tax allocation fund an amount equal to the Net State
18 Sales Tax Increment and (2) authorize the Department of
19 Revenue to annually notify the municipality of the amount of
20 the Municipal Sales Tax Increment which shall be deposited by
21 the municipality in the municipality's special tax allocation
22 fund. Provided that for purposes of this Section no
23 amendments adding additional area to the redevelopment
24 project area which has been certified as the State Sales Tax
25 Boundary shall be taken into account if such amendments are
26 adopted by the municipality after January 1, 1987. If an
27 amendment is adopted which decreases the area of a State
28 Sales Tax Boundary, the municipality shall update the list
29 required by subsection (3)(a) of this Section. The Retailers'
30 Occupation Tax liability, Use Tax liability, Service
31 Occupation Tax liability and Service Use Tax liability for
32 retailers and servicemen located within the disconnected area
33 shall be excluded from the base from which tax increments are
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1 calculated and the revenue from any such retailer or
2 serviceman shall not be included in calculating incremental
3 revenue payable to the municipality. A municipality adopting
4 an ordinance under this subsection (1) of this Section for a
5 redevelopment project area which is certified as a State
6 Sales Tax Boundary shall not be entitled to payments of State
7 taxes authorized under subsection (2) of this Section for the
8 same redevelopment project area. Nothing herein shall be
9 construed to prevent a municipality from receiving payment of
10 State taxes authorized under subsection (2) of this Section
11 for a separate redevelopment project area that does not
12 overlap in any way with the State Sales Tax Boundary
13 receiving payments of State taxes pursuant to subsection (1)
14 of this Section.
15 A certified copy of such ordinance shall be submitted by
16 the municipality to the Department of Commerce and Community
17 Affairs and the Department of Revenue not later than 30 days
18 after the effective date of the ordinance. Upon submission
19 of the ordinances, and the information required pursuant to
20 subsection 3 of this Section, the Department of Revenue shall
21 promptly determine the amount of such taxes paid under the
22 Retailers' Occupation Tax Act, Use Tax Act, Service Use Tax
23 Act, the Service Occupation Tax Act, the Municipal Retailers'
24 Occupation Tax Act and the Municipal Service Occupation Tax
25 Act by retailers and servicemen on transactions at places
26 located in the redevelopment project area during the base
27 year, and shall certify all the foregoing "initial sales tax
28 amounts" to the municipality within 60 days of submission of
29 the list required of subsection (3)(a) of this Section.
30 If a retailer or serviceman with a place of business
31 located within a redevelopment project area also has one or
32 more other places of business within the municipality but
33 outside the redevelopment project area, the retailer or
34 serviceman shall, upon request of the Department of Revenue,
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1 certify to the Department of Revenue the amount of taxes paid
2 pursuant to the Retailers' Occupation Tax Act, the Municipal
3 Retailers' Occupation Tax Act, the Service Occupation Tax Act
4 and the Municipal Service Occupation Tax Act at each place of
5 business which is located within the redevelopment project
6 area in the manner and for the periods of time requested by
7 the Department of Revenue.
8 When the municipality determines that a portion of an
9 increase in the aggregate amount of taxes paid by retailers
10 and servicemen under the Retailers' Occupation Tax Act, Use
11 Tax Act, Service Use Tax Act, or the Service Occupation Tax
12 Act is the result of a retailer or serviceman initiating
13 retail or service operations in the redevelopment project
14 area by such retailer or serviceman with a resulting
15 termination of retail or service operations by such retailer
16 or serviceman at another location in Illinois in the standard
17 metropolitan statistical area of such municipality, the
18 Department of Revenue shall be notified that the retailers
19 occupation tax liability, use tax liability, service
20 occupation tax liability, or service use tax liability from
21 such retailer's or serviceman's terminated operation shall be
22 included in the base Initial Sales Tax Amounts from which the
23 State Sales Tax Increment is calculated for purposes of State
24 payments to the affected municipality; provided, however, for
25 purposes of this paragraph "termination" shall mean a closing
26 of a retail or service operation which is directly related to
27 the opening of the same retail or service operation in a
28 redevelopment project area which is included within a State
29 Sales Tax Boundary, but it shall not include retail or
30 service operations closed for reasons beyond the control of
31 the retailer or serviceman, as determined by the Department.
32 If the municipality makes the determination referred to in
33 the prior paragraph and notifies the Department and if the
34 relocation is from a location within the municipality, the
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1 Department, at the request of the municipality, shall adjust
2 the certified aggregate amount of taxes that constitute the
3 Municipal Sales Tax Increment paid by retailers and
4 servicemen on transactions at places of business located
5 within the State Sales Tax Boundary during the base year
6 using the same procedures as are employed to make the
7 adjustment referred to in the prior paragraph. The adjusted
8 Municipal Sales Tax Increment calculated by the Department
9 shall be sufficient to satisfy the requirements of subsection
10 (1) of this Section.
11 When a municipality which has adopted tax increment
12 allocation financing in 1986 determines that a portion of the
13 aggregate amount of taxes paid by retailers and servicemen
14 under the Retailers Occupation Tax Act, Use Tax Act, Service
15 Use Tax Act, or Service Occupation Tax Act, the Municipal
16 Retailers' Occupation Tax Act and the Municipal Service
17 Occupation Tax Act, includes revenue of a retailer or
18 serviceman which terminated retailer or service operations in
19 1986, prior to the adoption of tax increment allocation
20 financing, the Department of Revenue shall be notified by
21 such municipality that the retailers' occupation tax
22 liability, use tax liability, service occupation tax
23 liability or service use tax liability, from such retailer's
24 or serviceman's terminated operations shall be excluded from
25 the Initial Sales Tax Amounts for such taxes. The revenue
26 from any such retailer or serviceman which is excluded from
27 the base year under this paragraph, shall not be included in
28 calculating incremental revenues if such retailer or
29 serviceman reestablishes such business in the redevelopment
30 project area.
31 For State fiscal year 1992, the Department of Revenue
32 shall budget, and the Illinois General Assembly shall
33 appropriate from the Illinois Tax Increment Fund in the State
34 treasury, an amount not to exceed $18,000,000 to pay to each
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1 eligible municipality the Net State Sales Tax Increment to
2 which such municipality is entitled.
3 Beginning on January 1, 1993, each municipality's
4 proportional share of the Illinois Tax Increment Fund shall
5 be determined by adding the annual Net State Sales Tax
6 Increment and the annual Net Utility Tax Increment to
7 determine the Annual Total Increment. The ratio of the Annual
8 Total Increment of each municipality to the Annual Total
9 Increment for all municipalities, as most recently calculated
10 by the Department, shall determine the proportional shares of
11 the Illinois Tax Increment Fund to be distributed to each
12 municipality.
13 Beginning in October, 1993, and each January, April, July
14 and October thereafter, the Department of Revenue shall
15 certify to the Treasurer and the Comptroller the amounts
16 payable quarter annually during the fiscal year to each
17 municipality under this Section. The Comptroller shall
18 promptly then draw warrants, ordering the State Treasurer to
19 pay such amounts from the Illinois Tax Increment Fund in the
20 State treasury.
21 The Department of Revenue shall utilize the same periods
22 established for determining State Sales Tax Increment to
23 determine the Municipal Sales Tax Increment for the area
24 within a State Sales Tax Boundary and certify such amounts to
25 such municipal treasurer who shall transfer such amounts to
26 the special tax allocation fund.
27 The provisions of this subsection (1) do not apply to
28 additional municipal retailers' occupation or service
29 occupation taxes imposed by municipalities using their home
30 rule powers or imposed pursuant to Sections 8-11-1.3,
31 8-11-1.4 and 8-11-1.5 of this Act. A municipality shall not
32 receive from the State any share of the Illinois Tax
33 Increment Fund unless such municipality deposits all its
34 Municipal Sales Tax Increment and the local incremental real
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1 property tax revenues, as provided herein, into the
2 appropriate special tax allocation fund. A municipality
3 located within an economic development project area created
4 under the County Economic Development Project Area Property
5 Tax Allocation Act which has abated any portion of its
6 property taxes which otherwise would have been deposited in
7 its special tax allocation fund shall not receive from the
8 State the Net Sales Tax Increment.
9 (2) A municipality which has adopted tax increment
10 allocation financing with regard to an industrial park or
11 industrial park conservation area, prior to January 1, 1988,
12 may by ordinance authorize the Department of Revenue to
13 annually certify and pay from the Illinois Tax Increment Fund
14 to such municipality for deposit in the municipality's
15 special tax allocation fund an amount equal to the Net State
16 Utility Tax Increment. Provided that for purposes of this
17 Section no amendments adding additional area to the
18 redevelopment project area shall be taken into account if
19 such amendments are adopted by the municipality after January
20 1, 1988. Municipalities adopting an ordinance under this
21 subsection (2) of this Section for a redevelopment project
22 area shall not be entitled to payment of State taxes
23 authorized under subsection (1) of this Section for the same
24 redevelopment project area which is within a State Sales Tax
25 Boundary. Nothing herein shall be construed to prevent a
26 municipality from receiving payment of State taxes authorized
27 under subsection (1) of this Section for a separate
28 redevelopment project area within a State Sales Tax Boundary
29 that does not overlap in any way with the redevelopment
30 project area receiving payments of State taxes pursuant to
31 subsection (2) of this Section.
32 A certified copy of such ordinance shall be submitted to
33 the Department of Commerce and Community Affairs and the
34 Department of Revenue not later than 30 days after the
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1 effective date of the ordinance.
2 When a municipality determines that a portion of an
3 increase in the aggregate amount of taxes paid by industrial
4 or commercial facilities under the Public Utilities Act, is
5 the result of an industrial or commercial facility initiating
6 operations in the redevelopment project area with a resulting
7 termination of such operations by such industrial or
8 commercial facility at another location in Illinois, the
9 Department of Revenue shall be notified by such municipality
10 that such industrial or commercial facility's liability under
11 the Public Utility Tax Act shall be included in the base from
12 which tax increments are calculated for purposes of State
13 payments to the affected municipality.
14 After receipt of the calculations by the public utility
15 as required by subsection (4) of this Section, the Department
16 of Revenue shall annually budget and the Illinois General
17 Assembly shall annually appropriate from the General Revenue
18 Fund through State Fiscal Year 1989, and thereafter from the
19 Illinois Tax Increment Fund, an amount sufficient to pay to
20 each eligible municipality the amount of incremental revenue
21 attributable to State electric and gas taxes as reflected by
22 the charges imposed on persons in the project area to which
23 such municipality is entitled by comparing the preceding
24 calendar year with the base year as determined by this
25 Section. Beginning on January 1, 1993, each municipality's
26 proportional share of the Illinois Tax Increment Fund shall
27 be determined by adding the annual Net State Utility Tax
28 Increment and the annual Net Utility Tax Increment to
29 determine the Annual Total Increment. The ratio of the Annual
30 Total Increment of each municipality to the Annual Total
31 Increment for all municipalities, as most recently calculated
32 by the Department, shall determine the proportional shares of
33 the Illinois Tax Increment Fund to be distributed to each
34 municipality.
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1 A municipality shall not receive any share of the
2 Illinois Tax Increment Fund from the State unless such
3 municipality imposes the maximum municipal charges authorized
4 pursuant to Section 9-221 of the Public Utilities Act and
5 deposits all municipal utility tax incremental revenues as
6 certified by the public utilities, and all local real estate
7 tax increments into such municipality's special tax
8 allocation fund.
9 (3) Within 30 days after the adoption of the ordinance
10 required by either subsection (1) or subsection (2) of this
11 Section, the municipality shall transmit to the Department of
12 Commerce and Community Affairs and the Department of Revenue
13 the following:
14 (a) if applicable, a certified copy of the
15 ordinance required by subsection (1) accompanied by a
16 complete list of street names and the range of street
17 numbers of each street located within the redevelopment
18 project area for which payments are to be made under this
19 Section in both the base year and in the year preceding
20 the payment year; and the addresses of persons registered
21 with the Department of Revenue; and, the name under which
22 each such retailer or serviceman conducts business at
23 that address, if different from the corporate name; and
24 the Illinois Business Tax Number of each such person (The
25 municipality shall update this list in the event of a
26 revision of the redevelopment project area, or the
27 opening or closing or name change of any street or part
28 thereof in the redevelopment project area, or if the
29 Department of Revenue informs the municipality of an
30 addition or deletion pursuant to the monthly updates
31 given by the Department.);
32 (b) if applicable, a certified copy of the
33 ordinance required by subsection (2) accompanied by a
34 complete list of street names and range of street numbers
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1 of each street located within the redevelopment project
2 area, the utility customers in the project area, and the
3 utilities serving the redevelopment project areas;
4 (c) certified copies of the ordinances approving
5 the redevelopment plan and designating the redevelopment
6 project area;
7 (d) a copy of the redevelopment plan as approved by
8 the municipality;
9 (e) an opinion of legal counsel that the
10 municipality had complied with the requirements of this
11 Act; and
12 (f) a certification by the chief executive officer
13 of the municipality that with regard to a redevelopment
14 project area: (1) the municipality has committed all of
15 the municipal tax increment created pursuant to this Act
16 for deposit in the special tax allocation fund, (2) the
17 redevelopment projects described in the redevelopment
18 plan would not be completed without the use of State
19 incremental revenues pursuant to this Act, (3) the
20 municipality will pursue the implementation of the
21 redevelopment plan in an expeditious manner, (4) the
22 incremental revenues created pursuant to this Section
23 will be exclusively utilized for the development of the
24 redevelopment project area, and (5) the increased revenue
25 created pursuant to this Section shall be used
26 exclusively to pay redevelopment project costs as defined
27 in this Act.
28 (4) The Department of Revenue upon receipt of the
29 information set forth in paragraph (b) of subsection (3)
30 shall immediately forward such information to each public
31 utility furnishing natural gas or electricity to buildings
32 within the redevelopment project area. Upon receipt of such
33 information, each public utility shall promptly:
34 (a) provide to the Department of Revenue and the
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1 municipality separate lists of the names and addresses of
2 persons within the redevelopment project area receiving
3 natural gas or electricity from such public utility.
4 Such list shall be updated as necessary by the public
5 utility. Each month thereafter the public utility shall
6 furnish the Department of Revenue and the municipality
7 with an itemized listing of charges imposed pursuant to
8 Sections 9-221 and 9-222 of the Public Utilities Act on
9 persons within the redevelopment project area.
10 (b) determine the amount of charges imposed
11 pursuant to Sections 9-221 and 9-222 of the Public
12 Utilities Act on persons in the redevelopment project
13 area during the base year, both as a result of municipal
14 taxes on electricity and gas and as a result of State
15 taxes on electricity and gas and certify such amounts
16 both to the municipality and the Department of Revenue;
17 and
18 (c) determine the amount of charges imposed
19 pursuant to Sections 9-221 and 9-222 of the Public
20 Utilities Act on persons in the redevelopment project
21 area on a monthly basis during the base year, both as a
22 result of State and municipal taxes on electricity and
23 gas and certify such separate amounts both to the
24 municipality and the Department of Revenue.
25 After the determinations are made in paragraphs (b) and
26 (c), the public utility shall monthly during the existence of
27 the redevelopment project area notify the Department of
28 Revenue and the municipality of any increase in charges over
29 the base year determinations made pursuant to paragraphs (b)
30 and (c).
31 (5) The payments authorized under this Section shall be
32 deposited by the municipal treasurer in the special tax
33 allocation fund of the municipality, which for accounting
34 purposes shall identify the sources of each payment as:
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1 municipal receipts from the State retailers occupation,
2 service occupation, use and service use taxes; and municipal
3 public utility taxes charged to customers under the Public
4 Utilities Act and State public utility taxes charged to
5 customers under the Public Utilities Act.
6 (6) Before the effective date of this amendatory Act of
7 the 91st General Assembly, any municipality receiving
8 payments authorized under this Section for any redevelopment
9 project area or area within a State Sales Tax Boundary within
10 the municipality shall submit to the Department of Revenue
11 and to the taxing districts which are sent the notice
12 required by Section 6 of this Act annually within 180 days
13 after the close of each municipal fiscal year the following
14 information for the immediately preceding fiscal year:
15 (a) Any amendments to the redevelopment plan, the
16 redevelopment project area, or the State Sales Tax
17 Boundary.
18 (b) Audited financial statements of the special tax
19 allocation fund.
20 (c) Certification of the Chief Executive Officer of
21 the municipality that the municipality has complied with
22 all of the requirements of this Act during the preceding
23 fiscal year.
24 (d) An opinion of legal counsel that the
25 municipality is in compliance with this Act.
26 (e) An analysis of the special tax allocation fund
27 which sets forth:
28 (1) the balance in the special tax allocation
29 fund at the beginning of the fiscal year;
30 (2) all amounts deposited in the special tax
31 allocation fund by source;
32 (3) all expenditures from the special tax
33 allocation fund by category of permissible
34 redevelopment project cost; and
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1 (4) the balance in the special tax allocation
2 fund at the end of the fiscal year including a
3 breakdown of that balance by source. Such ending
4 balance shall be designated as surplus if it is not
5 required for anticipated redevelopment project costs
6 or to pay debt service on bonds issued to finance
7 redevelopment project costs, as set forth in Section
8 11-74.4-7 hereof.
9 (f) A description of all property purchased by the
10 municipality within the redevelopment project area
11 including:
12 1. Street address
13 2. Approximate size or description of property
14 3. Purchase price
15 4. Seller of property.
16 (g) A statement setting forth all activities
17 undertaken in furtherance of the objectives of the
18 redevelopment plan, including:
19 1. Any project implemented in the preceding
20 fiscal year
21 2. A description of the redevelopment
22 activities undertaken
23 3. A description of any agreements entered
24 into by the municipality with regard to the
25 disposition or redevelopment of any property within
26 the redevelopment project area or the area within
27 the State Sales Tax Boundary.
28 (h) With regard to any obligations issued by the
29 municipality:
30 1. copies of bond ordinances or resolutions
31 2. copies of any official statements
32 3. an analysis prepared by financial advisor
33 or underwriter setting forth: (a) nature and term of
34 obligation; and (b) projected debt service including
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1 required reserves and debt coverage.
2 (i) A certified audit report reviewing compliance
3 with this statute performed by an independent public
4 accountant certified and licensed by the authority of the
5 State of Illinois. The financial portion of the audit
6 must be conducted in accordance with Standards for Audits
7 of Governmental Organizations, Programs, Activities, and
8 Functions adopted by the Comptroller General of the
9 United States (1981), as amended. The audit report shall
10 contain a letter from the independent certified public
11 accountant indicating compliance or noncompliance with
12 the requirements of subsection (q) of Section 11-74.4-3.
13 If the audit indicates that expenditures are not in
14 compliance with the law, the Department of Revenue shall
15 withhold State sales and utility tax increment payments
16 to the municipality until compliance has been reached,
17 and an amount equal to the ineligible expenditures has
18 been returned to the Special Tax Allocation Fund.
19 (6.1) After July 29, 1988 and before the effective date
20 of this amendatory Act of the 91st General Assembly, any
21 funds which have not been designated for use in a specific
22 development project in the annual report shall be designated
23 as surplus. No funds may be held in the Special Tax
24 Allocation Fund for more than 36 months from the date of
25 receipt unless the money is required for payment of
26 contractual obligations for specific development project
27 costs. If held for more than 36 months in violation of the
28 preceding sentence, such funds shall be designated as
29 surplus. Any funds designated as surplus must first be used
30 for early redemption of any bond obligations. Any funds
31 designated as surplus which are not disposed of as otherwise
32 provided in this paragraph, shall be distributed as surplus
33 as provided in Section 11-74.4-7.
34 (7) Any appropriation made pursuant to this Section for
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1 the 1987 State fiscal year shall not exceed the amount of $7
2 million and for the 1988 State fiscal year the amount of $10
3 million. The amount which shall be distributed to each
4 municipality shall be the incremental revenue to which each
5 municipality is entitled as calculated by the Department of
6 Revenue, unless the requests of the municipality exceed the
7 appropriation, then the amount to which each municipality
8 shall be entitled shall be prorated among the municipalities
9 in the same proportion as the increment to which the
10 municipality would be entitled bears to the total increment
11 which all municipalities would receive in the absence of this
12 limitation, provided that no municipality may receive an
13 amount in excess of 15% of the appropriation. For the 1987
14 Net State Sales Tax Increment payable in Fiscal Year 1989, no
15 municipality shall receive more than 7.5% of the total
16 appropriation; provided, however, that any of the
17 appropriation remaining after such distribution shall be
18 prorated among municipalities on the basis of their pro rata
19 share of the total increment. Beginning on January 1, 1993,
20 each municipality's proportional share of the Illinois Tax
21 Increment Fund shall be determined by adding the annual Net
22 State Sales Tax Increment and the annual Net Utility Tax
23 Increment to determine the Annual Total Increment. The ratio
24 of the Annual Total Increment of each municipality to the
25 Annual Total Increment for all municipalities, as most
26 recently calculated by the Department, shall determine the
27 proportional shares of the Illinois Tax Increment Fund to be
28 distributed to each municipality.
29 (7.1) No distribution of Net State Sales Tax Increment
30 to a municipality for an area within a State Sales Tax
31 Boundary shall exceed in any State Fiscal Year an amount
32 equal to 3 times the sum of the Municipal Sales Tax
33 Increment, the real property tax increment and deposits of
34 funds from other sources, excluding state and federal funds,
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1 as certified by the city treasurer to the Department of
2 Revenue for an area within a State Sales Tax Boundary. After
3 July 29, 1988, for those municipalities which issue bonds
4 between June 1, 1988 and 3 years from July 29, 1988 to
5 finance redevelopment projects within the area in a State
6 Sales Tax Boundary, the distribution of Net State Sales Tax
7 Increment during the 16th through 20th years from the date of
8 issuance of the bonds shall not exceed in any State Fiscal
9 Year an amount equal to 2 times the sum of the Municipal
10 Sales Tax Increment, the real property tax increment and
11 deposits of funds from other sources, excluding State and
12 federal funds.
13 (8) Any person who knowingly files or causes to be filed
14 false information for the purpose of increasing the amount of
15 any State tax incremental revenue commits a Class A
16 misdemeanor.
17 (9) The following procedures shall be followed to
18 determine whether municipalities have complied with the Act
19 for the purpose of receiving distributions after July 1, 1989
20 pursuant to subsection (1) of this Section 11-74.4-8a.
21 (a) The Department of Revenue shall conduct a
22 preliminary review of the redevelopment project areas and
23 redevelopment plans pertaining to those municipalities
24 receiving payments from the State pursuant to subsection
25 (1) of Section 8a of this Act for the purpose of
26 determining compliance with the following standards:
27 (1) For any municipality with a population of
28 more than 12,000 as determined by the 1980 U.S.
29 Census: (a) the redevelopment project area, or in
30 the case of a municipality which has more than one
31 redevelopment project area, each such area, must be
32 contiguous and the total of all such areas shall not
33 comprise more than 25% of the area within the
34 municipal boundaries nor more than 20% of the
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1 equalized assessed value of the municipality; (b)
2 the aggregate amount of 1985 taxes in the
3 redevelopment project area, or in the case of a
4 municipality which has more than one redevelopment
5 project area, the total of all such areas, shall be
6 not more than 25% of the total base year taxes paid
7 by retailers and servicemen on transactions at
8 places of business located within the municipality
9 under the Retailers' Occupation Tax Act, the Use Tax
10 Act, the Service Use Tax Act, and the Service
11 Occupation Tax Act. Redevelopment project areas
12 created prior to 1986 are not subject to the above
13 standards if their boundaries were not amended in
14 1986.
15 (2) For any municipality with a population of
16 12,000 or less as determined by the 1980 U.S.
17 Census: (a) the redevelopment project area, or in
18 the case of a municipality which has more than one
19 redevelopment project area, each such area, must be
20 contiguous and the total of all such areas shall not
21 comprise more than 35% of the area within the
22 municipal boundaries nor more than 30% of the
23 equalized assessed value of the municipality; (b)
24 the aggregate amount of 1985 taxes in the
25 redevelopment project area, or in the case of a
26 municipality which has more than one redevelopment
27 project area, the total of all such areas, shall not
28 be more than 35% of the total base year taxes paid
29 by retailers and servicemen on transactions at
30 places of business located within the municipality
31 under the Retailers' Occupation Tax Act, the Use Tax
32 Act, the Service Use Tax Act, and the Service
33 Occupation Tax Act. Redevelopment project areas
34 created prior to 1986 are not subject to the above
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1 standards if their boundaries were not amended in
2 1986.
3 (3) Such preliminary review of the
4 redevelopment project areas applying the above
5 standards shall be completed by November 1, 1988,
6 and on or before November 1, 1988, the Department
7 shall notify each municipality by certified mail,
8 return receipt requested that either (1) the
9 Department requires additional time in which to
10 complete its preliminary review; or (2) the
11 Department is issuing either (a) a Certificate of
12 Eligibility or (b) a Notice of Review. If the
13 Department notifies a municipality that it requires
14 additional time to complete its preliminary
15 investigation, it shall complete its preliminary
16 investigation no later than February 1, 1989, and by
17 February 1, 1989 shall issue to each municipality
18 either (a) a Certificate of Eligibility or (b) a
19 Notice of Review. A redevelopment project area for
20 which a Certificate of Eligibility has been issued
21 shall be deemed a "State Sales Tax Boundary."
22 (4) The Department of Revenue shall also issue
23 a Notice of Review if the Department has received a
24 request by November 1, 1988 to conduct such a review
25 from taxpayers in the municipality, local taxing
26 districts located in the municipality or the State
27 of Illinois, or if the redevelopment project area
28 has more than 5 retailers and has had growth in
29 State sales tax revenue of more than 15% from
30 calendar year 1985 to 1986.
31 (b) For those municipalities receiving a Notice of
32 Review, the Department will conduct a secondary review
33 consisting of: (i) application of the above standards
34 contained in subsection (9)(a)(1)(a) and (b) or
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1 (9)(a)(2)(a) and (b), and (ii) the definitions of
2 blighted and conservation area provided for in Section
3 11-74.4-3. Such secondary review shall be completed by
4 July 1, 1989.
5 Upon completion of the secondary review, the
6 Department will issue (a) a Certificate of Eligibility or
7 (b) a Preliminary Notice of Deficiency. Any municipality
8 receiving a Preliminary Notice of Deficiency may amend
9 its redevelopment project area to meet the standards and
10 definitions set forth in this paragraph (b). This amended
11 redevelopment project area shall become the "State Sales
12 Tax Boundary" for purposes of determining the State Sales
13 Tax Increment.
14 (c) If the municipality advises the Department of
15 its intent to comply with the requirements of paragraph
16 (b) of this subsection outlined in the Preliminary Notice
17 of Deficiency, within 120 days of receiving such notice
18 from the Department, the municipality shall submit
19 documentation to the Department of the actions it has
20 taken to cure any deficiencies. Thereafter, within 30
21 days of the receipt of the documentation, the Department
22 shall either issue a Certificate of Eligibility or a
23 Final Notice of Deficiency. If the municipality fails to
24 advise the Department of its intent to comply or fails to
25 submit adequate documentation of such cure of
26 deficiencies the Department shall issue a Final Notice of
27 Deficiency that provides that the municipality is
28 ineligible for payment of the Net State Sales Tax
29 Increment.
30 (d) If the Department issues a final determination
31 of ineligibility, the municipality shall have 30 days
32 from the receipt of determination to protest and request
33 a hearing. Such hearing shall be conducted in accordance
34 with Sections 10-25, 10-35, 10-40, and 10-50 of the
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1 Illinois Administrative Procedure Act. The decision
2 following the hearing shall be subject to review under
3 the Administrative Review Law.
4 (e) Any Certificate of Eligibility issued pursuant
5 to this subsection 9 shall be binding only on the State
6 for the purposes of establishing municipal eligibility to
7 receive revenue pursuant to subsection (1) of this
8 Section 11-74.4-8a.
9 (f) It is the intent of this subsection that the
10 periods of time to cure deficiencies shall be in addition
11 to all other periods of time permitted by this Section,
12 regardless of the date by which plans were originally
13 required to be adopted. To cure said deficiencies,
14 however, the municipality shall be required to follow the
15 procedures and requirements pertaining to amendments, as
16 provided in Sections 11-74.4-5 and 11-74.4-6 of this Act.
17 (10) If a municipality adopts a State Sales Tax Boundary
18 in accordance with the provisions of subsection (9) of this
19 Section, such boundaries shall subsequently be utilized to
20 determine Revised Initial Sales Tax Amounts and the Net State
21 Sales Tax Increment; provided, however, that such revised
22 State Sales Tax Boundary shall not have any effect upon the
23 boundary of the redevelopment project area established for
24 the purposes of determining the ad valorem taxes on real
25 property pursuant to Sections 11-74.4-7 and 11-74.4-8 of this
26 Act nor upon the municipality's authority to implement the
27 redevelopment plan for that redevelopment project area. For
28 any redevelopment project area with a smaller State Sales Tax
29 Boundary within its area, the municipality may annually elect
30 to deposit the Municipal Sales Tax Increment for the
31 redevelopment project area in the special tax allocation fund
32 and shall certify the amount to the Department prior to
33 receipt of the Net State Sales Tax Increment. Any
34 municipality required by subsection (9) to establish a State
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1 Sales Tax Boundary for one or more of its redevelopment
2 project areas shall submit all necessary information required
3 by the Department concerning such boundary and the retailers
4 therein, by October 1, 1989, after complying with the
5 procedures for amendment set forth in Sections 11-74.4-5 and
6 11-74.4-6 of this Act. Net State Sales Tax Increment
7 produced within the State Sales Tax Boundary shall be spent
8 only within that area. However expenditures of all municipal
9 property tax increment and municipal sales tax increment in a
10 redevelopment project area are not required to be spent
11 within the smaller State Sales Tax Boundary within such
12 redevelopment project area.
13 (11) The Department of Revenue shall have the authority
14 to issue rules and regulations for purposes of this Section.
15 and regulations for purposes of this Section.
16 (12) If, under Section 5.4.1 of the Illinois Enterprise
17 Zone Act, a municipality determines that property that lies
18 within a State Sales Tax Boundary has an improvement,
19 rehabilitation, or renovation that is entitled to a property
20 tax abatement, then that property along with any
21 improvements, rehabilitation, or renovations shall be
22 immediately removed from any State Sales Tax Boundary. The
23 municipality that made the determination shall notify the
24 Department of Revenue within 30 days after the determination.
25 Once a property is removed from the State Sales Tax Boundary
26 because of the existence of a property tax abatement
27 resulting from an enterprise zone, then that property shall
28 not be permitted to be amended into a State Sales Tax
29 Boundary.
30 (Source: P.A. 90-258, eff. 7-30-97.)
31 Section 90. The State Mandates Act is amended by adding
32 Section 8.23 as follows:
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1 (30 ILCS 805/8.23 new)
2 Sec. 8.23. Exempt mandate. Notwithstanding Sections 6
3 and 8 of this Act, no reimbursement by the State is required
4 for the implementation of any mandate created by this
5 amendatory Act of the 91st General Assembly.
6 Section 99. Effective date. This Act takes effect on
7 the first day of the third month after becoming law.".