SB3086 94TH GENERAL ASSEMBLY

94TH GENERAL ASSEMBLY State of Illinois 2005 and 2006
SB3086

Introduced 1/20/2006, by Sen. Susan Garrett

SYNOPSIS AS INTRODUCED:

`5 ILCS 70/10 new`
`65 ILCS 5/11-74.4-3`	`from Ch. 24, par. 11-74.4-3`
`735 ILCS 5/7-115.5 new`
`735 ILCS 5/7-121`	`from Ch. 110, par. 7-121`
`735 ILCS 5/7-122`	`from Ch. 110, par. 7-122`
`30 ILCS 805/8.30 new`

Amends the Statute on Statutes. Prohibits all takings under the power of eminent domain by the State or a unit of local government for private development unless the property is within an area that is a "blighted area" and the condemning authority has entered into a written agreement with a private person or entity that agrees to undertake a development project within the blighted area that specifically details the reasons for which the property or rights in the property are necessary for the success of the development project. Defines "private development". Amends the Tax Increment Allocation Redevelopment Act in the Illinois Municipal Code. Provides that in all eminent domain actions in which a property owner is displaced, the displacing entity must pay certain costs related to the relocation and displacement of the property owner's residence, business, or farm operation. Amends the Eminent Domain Article in the Code of Civil Procedure. Provides that, in a condemnation proceeding in which the property has been designated by the condemning authority by ordinance as blighted, the condemning authority must demonstrate and prove by a preponderance of the evidence that the property is blighted property. Provides that the existence of an ordinance designating property as blighted is not prima facie evidence of blight. Provides that an ordinance designating property as "blighted property" shall not be presumed to be valid for purposes of the condemnation proceeding. Makes changes concerning the valuation of condemned property. Requires reimbursement of the property owner for certain relocation costs. Establishes guidelines for determining reasonable attorney's fees (i) if the court awards just compensation that exceeds the initial written offer of the condemning authority and (ii) if the court determines that the taking is not warranted. Preempts home rule powers. Amends the State Mandates Act to require implementation without reimbursement by the State. Makes other changes. Effective immediately.

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FISCAL NOTE ACT MAY APPLY	HOME RULE NOTE ACT MAY APPLY	HOUSING AFFORDABILITY IMPACT NOTE ACT MAY APPLY
	STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT MAY APPLY

A BILL FOR

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1 AN ACT concerning government, which may be referred to as

2 the Equity in Eminent Domain Act.

3 Be it enacted by the People of the State of Illinois,

4 represented in the General Assembly:

5 Section 5. The Statute on Statutes is amended by adding

6 Section 10 as follows:

7 (5 ILCS 70/10 new)

8 Sec. 10. Exercise of the power of eminent domain for

9 private development purposes; blighted property.

10 (a) Neither the State nor a unit of local government may

11 take or damage property for private development through the

12 exercise of the power of eminent domain unless the property is

13 in an area that is a "blighted area", as defined in Section

14 11-74.4-3 of the Illinois Municipal Code or, alternatively, in

15 the applicable law authorizing the entity to exercise the power

16 of eminent domain, and the State or unit of local government

17 has entered into an express written agreement in which a

18 private person or entity agrees to undertake a development

19 project within the blighted area that specifically details the

20 reasons for which the property or rights in that property are

21 necessary for the success of the development project.

22 (b) The State or a unit of local government exercises the

23 power of eminent domain for private development if:

24 (1) the taking confers a private benefit on a

25 particular private party through the use of the property;

26 or

27 (2) the taking is for a public use that is merely a

28 pretext in order to confer a private benefit on a

29 particular private party.

30 A State or unit of local government does not exercise the

31 power of eminent domain for private development if the economic

32 development is a secondary purpose resulting from municipal

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1 community development or municipal urban renewal activities to

2 eliminate an existing affirmative harm on society from slums or

3 blighted areas.

4 (c) "Private development" does not include any of the

5 following:

6 (1) Transportation projects, including, but not

7 limited to, railroads, airports, or public roads or

8 highways.

9 (2) Development that benefits the State, a unit of

10 local government, or a school district.

11 (3) Water supply, wastewater, flood control, and

12 drainage projects.

13 (4) Public buildings, hospitals, and parks.

14 (5) The provision of utility service.

15 (6) Development for any purpose for which the exercise

16 of the power of eminent domain is authorized under the

17 Public Utilities Act.

18 (7) Libraries, museums, and related facilities and any

19 infrastructure related to those facilities.

20 (8) Development for any other entity or purpose for

21 which the exercise of eminent domain is authorized by law

22 on or after the effective date of this amendatory Act of

23 the 94th General Assembly.

24 (d) This Section does not affect the authority of a

25 governmental entity to condemn a leasehold estate on property

26 owned by the governmental entity.

27 (e) The determination by the State or a unit of local

28 government that is proposing the exercise of the power of

29 eminent domain that the taking does not involve an act or

30 circumstance prohibited under this Section does not create a

31 presumption with respect to whether the taking involves that

32 act or circumstance.

33 (f) This Section is a limitation on the exercise of the

34 power of eminent domain, but is not an independent grant of

35 authority to exercise the power of eminent domain.

36 (g) The authorization of the use of eminent domain

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1 proceedings to take or damage property is an exclusive power

2 and function of the State. Neither the State nor a unit of

3 local government, including a home rule unit, may exercise the

4 power of eminent domain for private development purposes

5 otherwise than as provided in this Section. This Section is a

6 denial and limitation of home rule powers and functions under

7 subsection (h) of Section 6 of Article VII of the Illinois

8 Constitution.

9 (h) Neither the State nor a unit of local government may

10 take or damage property used for production agriculture for

11 private development through the exercise of the power of

12 eminent domain. For purposes of this subsection (h),

13 "production agriculture" means that term as it is defined in

14 Section 3-35 of the Use Tax Act.

15 Section 10. The Illinois Municipal Code is amended by

16 changing Section 11-74.4-3 as follows:

17 (65 ILCS 5/11-74.4-3) (from Ch. 24, par. 11-74.4-3)

18 (Text of Section before amendment by P.A. 94-702 and

19 94-711)

20 Sec. 11-74.4-3. Definitions. The following terms, wherever

21 used or referred to in this Division 74.4 shall have the

22 following respective meanings, unless in any case a different

23 meaning clearly appears from the context.

24 (a) For any redevelopment project area that has been

25 designated pursuant to this Section by an ordinance adopted

26 prior to November 1, 1999 (the effective date of Public Act

27 91-478), "blighted area" shall have the meaning set forth in

28 this Section prior to that date.

29 On and after November 1, 1999, "blighted area" means any

30 improved or vacant area within the boundaries of a

31 redevelopment project area located within the territorial

32 limits of the municipality where:

33 (1) If improved, industrial, commercial, and

34 residential buildings or improvements are detrimental to

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1 the public safety, health, or welfare because of a

2 combination of 5 or more of the following factors, each of

3 which is (i) present, with that presence documented, to a

4 meaningful extent so that a municipality may reasonably

5 find that the factor is clearly present within the intent

6 of the Act and (ii) reasonably distributed throughout the

7 improved part of the redevelopment project area:

8 (A) Dilapidation. An advanced state of disrepair

9 or neglect of necessary repairs to the primary

10 structural components of buildings or improvements in

11 such a combination that a documented building

12 condition analysis determines that major repair is

13 required or the defects are so serious and so extensive

14 that the buildings must be removed.

15 (B) Obsolescence. The condition or process of

16 falling into disuse. Structures have become ill-suited

17 for the original use.

18 (C) Deterioration. With respect to buildings,

19 defects including, but not limited to, major defects in

20 the secondary building components such as doors,

21 windows, porches, gutters and downspouts, and fascia.

22 With respect to surface improvements, that the

23 condition of roadways, alleys, curbs, gutters,

24 sidewalks, off-street parking, and surface storage

25 areas evidence deterioration, including, but not

26 limited to, surface cracking, crumbling, potholes,

27 depressions, loose paving material, and weeds

28 protruding through paved surfaces.

29 (D) Presence of structures below minimum code

30 standards. All structures that do not meet the

31 standards of zoning, subdivision, building, fire, and

32 other governmental codes applicable to property, but

33 not including housing and property maintenance codes.

34 (E) Illegal use of individual structures. The use

35 of structures in violation of applicable federal,

36 State, or local laws, exclusive of those applicable to

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1 the presence of structures below minimum code

2 standards.

3 (F) Excessive vacancies. The presence of buildings

4 that are unoccupied or under-utilized and that

5 represent an adverse influence on the area because of

6 the frequency, extent, or duration of the vacancies.

7 (G) Lack of ventilation, light, or sanitary

8 facilities. The absence of adequate ventilation for

9 light or air circulation in spaces or rooms without

10 windows, or that require the removal of dust, odor,

11 gas, smoke, or other noxious airborne materials.

12 Inadequate natural light and ventilation means the

13 absence of skylights or windows for interior spaces or

14 rooms and improper window sizes and amounts by room

15 area to window area ratios. Inadequate sanitary

16 facilities refers to the absence or inadequacy of

17 garbage storage and enclosure, bathroom facilities,

18 hot water and kitchens, and structural inadequacies

19 preventing ingress and egress to and from all rooms and

20 units within a building.

21 (H) Inadequate utilities. Underground and overhead

22 utilities such as storm sewers and storm drainage,

23 sanitary sewers, water lines, and gas, telephone, and

24 electrical services that are shown to be inadequate.

25 Inadequate utilities are those that are: (i) of

26 insufficient capacity to serve the uses in the

27 redevelopment project area, (ii) deteriorated,

28 antiquated, obsolete, or in disrepair, or (iii)

29 lacking within the redevelopment project area.

30 (I) Excessive land coverage and overcrowding of

31 structures and community facilities. The

32 over-intensive use of property and the crowding of

33 buildings and accessory facilities onto a site.

34 Examples of problem conditions warranting the

35 designation of an area as one exhibiting excessive land

36 coverage are: (i) the presence of buildings either

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1 improperly situated on parcels or located on parcels of

2 inadequate size and shape in relation to present-day

3 standards of development for health and safety and (ii)

4 the presence of multiple buildings on a single parcel.

5 For there to be a finding of excessive land coverage,

6 these parcels must exhibit one or more of the following

7 conditions: insufficient provision for light and air

8 within or around buildings, increased threat of spread

9 of fire due to the close proximity of buildings, lack

10 of adequate or proper access to a public right-of-way,

11 lack of reasonably required off-street parking, or

12 inadequate provision for loading and service.

13 (J) Deleterious land use or layout. The existence

14 of incompatible land-use relationships, buildings

15 occupied by inappropriate mixed-uses, or uses

16 considered to be noxious, offensive, or unsuitable for

17 the surrounding area.

18 (K) Environmental clean-up. The proposed

19 redevelopment project area has incurred Illinois

20 Environmental Protection Agency or United States

21 Environmental Protection Agency remediation costs for,

22 or a study conducted by an independent consultant

23 recognized as having expertise in environmental

24 remediation has determined a need for, the clean-up of

25 hazardous waste, hazardous substances, or underground

26 storage tanks required by State or federal law,

27 provided that the remediation costs constitute a

28 material impediment to the development or

29 redevelopment of the redevelopment project area.

30 (L) Lack of community planning. The proposed

31 redevelopment project area was developed prior to or

32 without the benefit or guidance of a community plan.

33 This means that the development occurred prior to the

34 adoption by the municipality of a comprehensive or

35 other community plan or that the plan was not followed

36 at the time of the area's development. This factor must

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1 be documented by evidence of adverse or incompatible

2 land-use relationships, inadequate street layout,

3 improper subdivision, parcels of inadequate shape and

4 size to meet contemporary development standards, or

5 other evidence demonstrating an absence of effective

6 community planning.

7 (M) The total equalized assessed value of the

8 proposed redevelopment project area has declined for 3

9 of the last 5 calendar years prior to the year in which

10 the redevelopment project area is designated or is

11 increasing at an annual rate that is less than the

12 balance of the municipality for 3 of the last 5

13 calendar years for which information is available or is

14 increasing at an annual rate that is less than the

15 Consumer Price Index for All Urban Consumers published

16 by the United States Department of Labor or successor

17 agency for 3 of the last 5 calendar years prior to the

18 year in which the redevelopment project area is

19 designated.

20 (2) If vacant, the sound growth of the redevelopment

21 project area is impaired by a combination of 2 or more of

22 the following factors, each of which is (i) present, with

23 that presence documented, to a meaningful extent so that a

24 municipality may reasonably find that the factor is clearly

25 present within the intent of the Act and (ii) reasonably

26 distributed throughout the vacant part of the

27 redevelopment project area to which it pertains:

28 (A) Obsolete platting of vacant land that results

29 in parcels of limited or narrow size or configurations

30 of parcels of irregular size or shape that would be

31 difficult to develop on a planned basis and in a manner

32 compatible with contemporary standards and

33 requirements, or platting that failed to create

34 rights-of-ways for streets or alleys or that created

35 inadequate right-of-way widths for streets, alleys, or

36 other public rights-of-way or that omitted easements

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1 for public utilities.

2 (B) Diversity of ownership of parcels of vacant

3 land sufficient in number to retard or impede the

4 ability to assemble the land for development.

5 (C) Tax and special assessment delinquencies exist

6 or the property has been the subject of tax sales under

7 the Property Tax Code within the last 5 years.

8 (D) Deterioration of structures or site

9 improvements in neighboring areas adjacent to the

10 vacant land.

11 (E) The area has incurred Illinois Environmental

12 Protection Agency or United States Environmental

13 Protection Agency remediation costs for, or a study

14 conducted by an independent consultant recognized as

15 having expertise in environmental remediation has

16 determined a need for, the clean-up of hazardous waste,

17 hazardous substances, or underground storage tanks

18 required by State or federal law, provided that the

19 remediation costs constitute a material impediment to

20 the development or redevelopment of the redevelopment

21 project area.

22 (F) The total equalized assessed value of the

23 proposed redevelopment project area has declined for 3

24 of the last 5 calendar years prior to the year in which

25 the redevelopment project area is designated or is

26 increasing at an annual rate that is less than the

27 balance of the municipality for 3 of the last 5

28 calendar years for which information is available or is

29 increasing at an annual rate that is less than the

30 Consumer Price Index for All Urban Consumers published

31 by the United States Department of Labor or successor

32 agency for 3 of the last 5 calendar years prior to the

33 year in which the redevelopment project area is

34 designated.

35 (3) If vacant, the sound growth of the redevelopment

36 project area is impaired by one of the following factors

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1 that (i) is present, with that presence documented, to a

2 meaningful extent so that a municipality may reasonably

3 find that the factor is clearly present within the intent

4 of the Act and (ii) is reasonably distributed throughout

5 the vacant part of the redevelopment project area to which

6 it pertains:

7 (A) The area consists of one or more unused

8 quarries, mines, or strip mine ponds.

9 (B) The area consists of unused rail yards, rail

10 tracks, or railroad rights-of-way.

11 (C) The area, prior to its designation, is subject

12 to (i) chronic flooding that adversely impacts on real

13 property in the area as certified by a registered

14 professional engineer or appropriate regulatory agency

15 or (ii) surface water that discharges from all or a

16 part of the area and contributes to flooding within the

17 same watershed, but only if the redevelopment project

18 provides for facilities or improvements to contribute

19 to the alleviation of all or part of the flooding.

20 (D) The area consists of an unused or illegal

21 disposal site containing earth, stone, building

22 debris, or similar materials that were removed from

23 construction, demolition, excavation, or dredge sites.

24 (E) Prior to November 1, 1999, the area is not less

25 than 50 nor more than 100 acres and 75% of which is

26 vacant (notwithstanding that the area has been used for

27 commercial agricultural purposes within 5 years prior

28 to the designation of the redevelopment project area),

29 and the area meets at least one of the factors itemized

30 in paragraph (1) of this subsection, the area has been

31 designated as a town or village center by ordinance or

32 comprehensive plan adopted prior to January 1, 1982,

33 and the area has not been developed for that designated

34 purpose.

35 (F) The area qualified as a blighted improved area

36 immediately prior to becoming vacant, unless there has

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1 been substantial private investment in the immediately

2 surrounding area.

3 (b) For any redevelopment project area that has been

4 designated pursuant to this Section by an ordinance adopted

5 prior to November 1, 1999 (the effective date of Public Act

6 91-478), "conservation area" shall have the meaning set forth

7 in this Section prior to that date.

8 On and after November 1, 1999, "conservation area" means

9 any improved area within the boundaries of a redevelopment

10 project area located within the territorial limits of the

11 municipality in which 50% or more of the structures in the area

12 have an age of 35 years or more. Such an area is not yet a

13 blighted area but because of a combination of 3 or more of the

14 following factors is detrimental to the public safety, health,

15 morals or welfare and such an area may become a blighted area:

16 (1) Dilapidation. An advanced state of disrepair or

17 neglect of necessary repairs to the primary structural

18 components of buildings or improvements in such a

19 combination that a documented building condition analysis

20 determines that major repair is required or the defects are

21 so serious and so extensive that the buildings must be

22 removed.

23 (2) Obsolescence. The condition or process of falling

24 into disuse. Structures have become ill-suited for the

25 original use.

26 (3) Deterioration. With respect to buildings, defects

27 including, but not limited to, major defects in the

28 secondary building components such as doors, windows,

29 porches, gutters and downspouts, and fascia. With respect

30 to surface improvements, that the condition of roadways,

31 alleys, curbs, gutters, sidewalks, off-street parking, and

32 surface storage areas evidence deterioration, including,

33 but not limited to, surface cracking, crumbling, potholes,

34 depressions, loose paving material, and weeds protruding

35 through paved surfaces.

36 (4) Presence of structures below minimum code

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1 standards. All structures that do not meet the standards of

2 zoning, subdivision, building, fire, and other

3 governmental codes applicable to property, but not

4 including housing and property maintenance codes.

5 (5) Illegal use of individual structures. The use of

6 structures in violation of applicable federal, State, or

7 local laws, exclusive of those applicable to the presence

8 of structures below minimum code standards.

9 (6) Excessive vacancies. The presence of buildings

10 that are unoccupied or under-utilized and that represent an

11 adverse influence on the area because of the frequency,

12 extent, or duration of the vacancies.

13 (7) Lack of ventilation, light, or sanitary

14 facilities. The absence of adequate ventilation for light

15 or air circulation in spaces or rooms without windows, or

16 that require the removal of dust, odor, gas, smoke, or

17 other noxious airborne materials. Inadequate natural light

18 and ventilation means the absence or inadequacy of

19 skylights or windows for interior spaces or rooms and

20 improper window sizes and amounts by room area to window

21 area ratios. Inadequate sanitary facilities refers to the

22 absence or inadequacy of garbage storage and enclosure,

23 bathroom facilities, hot water and kitchens, and

24 structural inadequacies preventing ingress and egress to

25 and from all rooms and units within a building.

26 (8) Inadequate utilities. Underground and overhead

27 utilities such as storm sewers and storm drainage, sanitary

28 sewers, water lines, and gas, telephone, and electrical

29 services that are shown to be inadequate. Inadequate

30 utilities are those that are: (i) of insufficient capacity

31 to serve the uses in the redevelopment project area, (ii)

32 deteriorated, antiquated, obsolete, or in disrepair, or

33 (iii) lacking within the redevelopment project area.

34 (9) Excessive land coverage and overcrowding of

35 structures and community facilities. The over-intensive

36 use of property and the crowding of buildings and accessory

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1 facilities onto a site. Examples of problem conditions

2 warranting the designation of an area as one exhibiting

3 excessive land coverage are: the presence of buildings

4 either improperly situated on parcels or located on parcels

5 of inadequate size and shape in relation to present-day

6 standards of development for health and safety and the

7 presence of multiple buildings on a single parcel. For

8 there to be a finding of excessive land coverage, these

9 parcels must exhibit one or more of the following

10 conditions: insufficient provision for light and air

11 within or around buildings, increased threat of spread of

12 fire due to the close proximity of buildings, lack of

13 adequate or proper access to a public right-of-way, lack of

14 reasonably required off-street parking, or inadequate

15 provision for loading and service.

16 (10) Deleterious land use or layout. The existence of

17 incompatible land-use relationships, buildings occupied by

18 inappropriate mixed-uses, or uses considered to be

19 noxious, offensive, or unsuitable for the surrounding

20 area.

21 (11) Lack of community planning. The proposed

22 redevelopment project area was developed prior to or

23 without the benefit or guidance of a community plan. This

24 means that the development occurred prior to the adoption

25 by the municipality of a comprehensive or other community

26 plan or that the plan was not followed at the time of the

27 area's development. This factor must be documented by

28 evidence of adverse or incompatible land-use

29 relationships, inadequate street layout, improper

30 subdivision, parcels of inadequate shape and size to meet

31 contemporary development standards, or other evidence

32 demonstrating an absence of effective community planning.

33 (12) The area has incurred Illinois Environmental

34 Protection Agency or United States Environmental

35 Protection Agency remediation costs for, or a study

36 conducted by an independent consultant recognized as

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1 having expertise in environmental remediation has

2 determined a need for, the clean-up of hazardous waste,

3 hazardous substances, or underground storage tanks

4 required by State or federal law, provided that the

5 remediation costs constitute a material impediment to the

6 development or redevelopment of the redevelopment project

7 area.

8 (13) The total equalized assessed value of the proposed

9 redevelopment project area has declined for 3 of the last 5

10 calendar years for which information is available or is

11 increasing at an annual rate that is less than the balance

12 of the municipality for 3 of the last 5 calendar years for

13 which information is available or is increasing at an

14 annual rate that is less than the Consumer Price Index for

15 All Urban Consumers published by the United States

16 Department of Labor or successor agency for 3 of the last 5

17 calendar years for which information is available.

18 (c) "Industrial park" means an area in a blighted or

19 conservation area suitable for use by any manufacturing,

20 industrial, research or transportation enterprise, of

21 facilities to include but not be limited to factories, mills,

22 processing plants, assembly plants, packing plants,

23 fabricating plants, industrial distribution centers,

24 warehouses, repair overhaul or service facilities, freight

25 terminals, research facilities, test facilities or railroad

26 facilities.

27 (d) "Industrial park conservation area" means an area

28 within the boundaries of a redevelopment project area located

29 within the territorial limits of a municipality that is a labor

30 surplus municipality or within 1 1/2 miles of the territorial

31 limits of a municipality that is a labor surplus municipality

32 if the area is annexed to the municipality; which area is zoned

33 as industrial no later than at the time the municipality by

34 ordinance designates the redevelopment project area, and which

35 area includes both vacant land suitable for use as an

36 industrial park and a blighted area or conservation area

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1 contiguous to such vacant land.

2 (e) "Labor surplus municipality" means a municipality in

3 which, at any time during the 6 months before the municipality

4 by ordinance designates an industrial park conservation area,

5 the unemployment rate was over 6% and was also 100% or more of

6 the national average unemployment rate for that same time as

7 published in the United States Department of Labor Bureau of

8 Labor Statistics publication entitled "The Employment

9 Situation" or its successor publication. For the purpose of

10 this subsection, if unemployment rate statistics for the

11 municipality are not available, the unemployment rate in the

12 municipality shall be deemed to be the same as the unemployment

13 rate in the principal county in which the municipality is

14 located.

15 (f) "Municipality" shall mean a city, village,

16 incorporated town, or a township that is located in the

17 unincorporated portion of a county with 3 million or more

18 inhabitants, if the county adopted an ordinance that approved

19 the township's redevelopment plan.

20 (g) "Initial Sales Tax Amounts" means the amount of taxes

21 paid under the Retailers' Occupation Tax Act, Use Tax Act,

22 Service Use Tax Act, the Service Occupation Tax Act, the

23 Municipal Retailers' Occupation Tax Act, and the Municipal

24 Service Occupation Tax Act by retailers and servicemen on

25 transactions at places located in a State Sales Tax Boundary

26 during the calendar year 1985.

27 (g-1) "Revised Initial Sales Tax Amounts" means the amount

28 of taxes paid under the Retailers' Occupation Tax Act, Use Tax

29 Act, Service Use Tax Act, the Service Occupation Tax Act, the

30 Municipal Retailers' Occupation Tax Act, and the Municipal

31 Service Occupation Tax Act by retailers and servicemen on

32 transactions at places located within the State Sales Tax

33 Boundary revised pursuant to Section 11-74.4-8a(9) of this Act.

34 (h) "Municipal Sales Tax Increment" means an amount equal

35 to the increase in the aggregate amount of taxes paid to a

36 municipality from the Local Government Tax Fund arising from

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1 sales by retailers and servicemen within the redevelopment

2 project area or State Sales Tax Boundary, as the case may be,

3 for as long as the redevelopment project area or State Sales

4 Tax Boundary, as the case may be, exist over and above the

5 aggregate amount of taxes as certified by the Illinois

6 Department of Revenue and paid under the Municipal Retailers'

7 Occupation Tax Act and the Municipal Service Occupation Tax Act

8 by retailers and servicemen, on transactions at places of

9 business located in the redevelopment project area or State

10 Sales Tax Boundary, as the case may be, during the base year

11 which shall be the calendar year immediately prior to the year

12 in which the municipality adopted tax increment allocation

13 financing. For purposes of computing the aggregate amount of

14 such taxes for base years occurring prior to 1985, the

15 Department of Revenue shall determine the Initial Sales Tax

16 Amounts for such taxes and deduct therefrom an amount equal to

17 4% of the aggregate amount of taxes per year for each year the

18 base year is prior to 1985, but not to exceed a total deduction

19 of 12%. The amount so determined shall be known as the

20 "Adjusted Initial Sales Tax Amounts". For purposes of

21 determining the Municipal Sales Tax Increment, the Department

22 of Revenue shall for each period subtract from the amount paid

23 to the municipality from the Local Government Tax Fund arising

24 from sales by retailers and servicemen on transactions located

25 in the redevelopment project area or the State Sales Tax

26 Boundary, as the case may be, the certified Initial Sales Tax

27 Amounts, the Adjusted Initial Sales Tax Amounts or the Revised

28 Initial Sales Tax Amounts for the Municipal Retailers'

29 Occupation Tax Act and the Municipal Service Occupation Tax

30 Act. For the State Fiscal Year 1989, this calculation shall be

31 made by utilizing the calendar year 1987 to determine the tax

32 amounts received. For the State Fiscal Year 1990, this

33 calculation shall be made by utilizing the period from January

34 1, 1988, until September 30, 1988, to determine the tax amounts

35 received from retailers and servicemen pursuant to the

36 Municipal Retailers' Occupation Tax and the Municipal Service

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1 Occupation Tax Act, which shall have deducted therefrom

2 nine-twelfths of the certified Initial Sales Tax Amounts, the

3 Adjusted Initial Sales Tax Amounts or the Revised Initial Sales

4 Tax Amounts as appropriate. For the State Fiscal Year 1991,

5 this calculation shall be made by utilizing the period from

6 October 1, 1988, to June 30, 1989, to determine the tax amounts

7 received from retailers and servicemen pursuant to the

8 Municipal Retailers' Occupation Tax and the Municipal Service

9 Occupation Tax Act which shall have deducted therefrom

10 nine-twelfths of the certified Initial Sales Tax Amounts,

11 Adjusted Initial Sales Tax Amounts or the Revised Initial Sales

12 Tax Amounts as appropriate. For every State Fiscal Year

13 thereafter, the applicable period shall be the 12 months

14 beginning July 1 and ending June 30 to determine the tax

15 amounts received which shall have deducted therefrom the

16 certified Initial Sales Tax Amounts, the Adjusted Initial Sales

17 Tax Amounts or the Revised Initial Sales Tax Amounts, as the

18 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 Boundary;

22 (b) 60% of the amount in excess of $100,000 but not exceeding

23 $500,000 of State Sales Tax Increment annually generated within

24 a State Sales Tax Boundary; and (c) 40% of all amounts in

25 excess of $500,000 of State Sales Tax Increment annually

26 generated within a State Sales Tax Boundary. If, however, a

27 municipality established a tax increment financing district in

28 a county with a population in excess of 3,000,000 before

29 January 1, 1986, and the municipality entered into a contract

30 or issued bonds after January 1, 1986, but before December 31,

31 1986, to finance redevelopment project costs within a State

32 Sales Tax Boundary, then the Net State Sales Tax Increment

33 means, for the fiscal years beginning July 1, 1990, and July 1,

34 1991, 100% of the State Sales Tax Increment annually generated

35 within a State Sales Tax Boundary; and notwithstanding any

36 other provision of this Act, for those fiscal years the

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1 Department of Revenue shall distribute to those municipalities

2 100% of their Net State Sales Tax Increment before any

3 distribution to any other municipality and regardless of

4 whether or not those other municipalities will receive 100% of

5 their Net State Sales Tax Increment. For Fiscal Year 1999, and

6 every year thereafter until the year 2007, for any municipality

7 that has not entered into a contract or has not issued bonds

8 prior to June 1, 1988 to finance redevelopment project costs

9 within a State Sales Tax Boundary, the Net State Sales Tax

10 Increment shall be calculated as follows: By multiplying the

11 Net State Sales Tax Increment by 90% in the State Fiscal Year

12 1999; 80% in the State Fiscal Year 2000; 70% in the State

13 Fiscal Year 2001; 60% in the State Fiscal Year 2002; 50% in the

14 State Fiscal Year 2003; 40% in the State Fiscal Year 2004; 30%

15 in the State Fiscal Year 2005; 20% in the State Fiscal Year

16 2006; and 10% in the State Fiscal Year 2007. No payment shall

17 be made for State Fiscal Year 2008 and thereafter.

18 Municipalities that issued bonds in connection with a

19 redevelopment project in a redevelopment project area within

20 the State Sales Tax Boundary prior to July 29, 1991, or that

21 entered into contracts in connection with a redevelopment

22 project in a redevelopment project area before June 1, 1988,

23 shall continue to receive their proportional share of the

24 Illinois Tax Increment Fund distribution until the date on

25 which the redevelopment project is completed or terminated. If,

26 however, a municipality that issued bonds in connection with a

27 redevelopment project in a redevelopment project area within

28 the State Sales Tax Boundary prior to July 29, 1991 retires the

29 bonds prior to June 30, 2007 or a municipality that entered

30 into contracts in connection with a redevelopment project in a

31 redevelopment project area before June 1, 1988 completes the

32 contracts prior to June 30, 2007, then so long as the

33 redevelopment project is not completed or is not terminated,

34 the Net State Sales Tax Increment shall be calculated,

35 beginning on the date on which the bonds are retired or the

36 contracts are completed, as follows: By multiplying the Net

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1 State Sales Tax Increment by 60% in the State Fiscal Year 2002;

2 50% in the State Fiscal Year 2003; 40% in the State Fiscal Year

3 2004; 30% in the State Fiscal Year 2005; 20% in the State

4 Fiscal Year 2006; and 10% in the State Fiscal Year 2007. No

5 payment shall be made for State Fiscal Year 2008 and

6 thereafter. Refunding of any bonds issued prior to July 29,

7 1991, shall not alter the Net State Sales Tax Increment.

8 (j) "State Utility Tax Increment Amount" means an amount

9 equal to the aggregate increase in State electric and gas tax

10 charges imposed on owners and tenants, other than residential

11 customers, of properties located within the redevelopment

12 project area under Section 9-222 of the Public Utilities Act,

13 over and above the aggregate of such charges as certified by

14 the Department of Revenue and paid by owners and tenants, other

15 than residential customers, of properties within the

16 redevelopment project area during the base year, which shall be

17 the calendar year immediately prior to the year of the adoption

18 of the ordinance authorizing tax increment allocation

19 financing.

20 (k) "Net State Utility Tax Increment" means the sum of the

21 following: (a) 80% of the first $100,000 of State Utility Tax

22 Increment annually generated by a redevelopment project area;

23 (b) 60% of the amount in excess of $100,000 but not exceeding

24 $500,000 of the State Utility Tax Increment annually generated

25 by a redevelopment project area; and (c) 40% of all amounts in

26 excess of $500,000 of State Utility Tax Increment annually

27 generated by a redevelopment project area. For the State Fiscal

28 Year 1999, and every year thereafter until the year 2007, for

29 any municipality that has not entered into a contract or has

30 not issued bonds prior to June 1, 1988 to finance redevelopment

31 project costs within a redevelopment project area, the Net

32 State Utility Tax Increment shall be calculated as follows: By

33 multiplying the Net State Utility Tax Increment by 90% in the

34 State Fiscal Year 1999; 80% in the State Fiscal Year 2000; 70%

35 in the State Fiscal Year 2001; 60% in the State Fiscal Year

36 2002; 50% in the State Fiscal Year 2003; 40% in the State

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1 Fiscal Year 2004; 30% in the State Fiscal Year 2005; 20% in the

2 State Fiscal Year 2006; and 10% in the State Fiscal Year 2007.

3 No payment shall be made for the State Fiscal Year 2008 and

4 thereafter.

5 Municipalities that issue bonds in connection with the

6 redevelopment project during the period from June 1, 1988 until

7 3 years after the effective date of this Amendatory Act of 1988

8 shall receive the Net State Utility Tax Increment, subject to

9 appropriation, for 15 State Fiscal Years after the issuance of

10 such bonds. For the 16th through the 20th State Fiscal Years

11 after issuance of the bonds, the Net State Utility Tax

12 Increment shall be calculated as follows: By multiplying the

13 Net State Utility Tax Increment by 90% in year 16; 80% in year

14 17; 70% in year 18; 60% in year 19; and 50% in year 20.

15 Refunding of any bonds issued prior to June 1, 1988, shall not

16 alter the revised Net State Utility Tax Increment payments set

17 forth above.

18 (l) "Obligations" mean bonds, loans, debentures, notes,

19 special certificates or other evidence of indebtedness issued

20 by the municipality to carry out a redevelopment project or to

21 refund outstanding obligations.

22 (m) "Payment in lieu of taxes" means those estimated tax

23 revenues from real property in a redevelopment project area

24 derived from real property that has been acquired by a

25 municipality which according to the redevelopment project or

26 plan is to be used for a private use which taxing districts

27 would have received had a municipality not acquired the real

28 property and adopted tax increment allocation financing and

29 which would result from levies made after the time of the

30 adoption of tax increment allocation financing to the time the

31 current equalized value of real property in the redevelopment

32 project area exceeds the total initial equalized value of real

33 property in said area.

34 (n) "Redevelopment plan" means the comprehensive program

35 of the municipality for development or redevelopment intended

36 by the payment of redevelopment project costs to reduce or

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1 eliminate those conditions the existence of which qualified the

2 redevelopment project area as a "blighted area" or

3 "conservation area" or combination thereof or "industrial park

4 conservation area," and thereby to enhance the tax bases of the

5 taxing districts which extend into the redevelopment project

6 area. On and after November 1, 1999 (the effective date of

7 Public Act 91-478), no redevelopment plan may be approved or

8 amended that includes the development of vacant land (i) with a

9 golf course and related clubhouse and other facilities or (ii)

10 designated by federal, State, county, or municipal government

11 as public land for outdoor recreational activities or for

12 nature preserves and used for that purpose within 5 years prior

13 to the adoption of the redevelopment plan. For the purpose of

14 this subsection, "recreational activities" is limited to mean

15 camping and hunting. Each redevelopment plan shall set forth in

16 writing the program to be undertaken to accomplish the

17 objectives and shall include but not be limited to:

18 (A) an itemized list of estimated redevelopment

19 project costs;

20 (B) evidence indicating that the redevelopment project

21 area on the whole has not been subject to growth and

22 development through investment by private enterprise;

23 (C) an assessment of any financial impact of the

24 redevelopment project area on or any increased demand for

25 services from any taxing district affected by the plan and

26 any program to address such financial impact or increased

27 demand;

28 (D) the sources of funds to pay costs;

29 (E) the nature and term of the obligations to be

30 issued;

31 (F) the most recent equalized assessed valuation of the

32 redevelopment project area;

33 (G) an estimate as to the equalized assessed valuation

34 after redevelopment and the general land uses to apply in

35 the redevelopment project area;

36 (H) a commitment to fair employment practices and an

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1 affirmative action plan;

2 (I) if it concerns an industrial park conservation

3 area, the plan shall also include a general description of

4 any proposed developer, user and tenant of any property, a

5 description of the type, structure and general character of

6 the facilities to be developed, a description of the type,

7 class and number of new employees to be employed in the

8 operation of the facilities to be developed; and

9 (J) if property is to be annexed to the municipality,

10 the plan shall include the terms of the annexation

11 agreement.

12 The provisions of items (B) and (C) of this subsection (n)

13 shall not apply to a municipality that before March 14, 1994

14 (the effective date of Public Act 88-537) had fixed, either by

15 its corporate authorities or by a commission designated under

16 subsection (k) of Section 11-74.4-4, a time and place for a

17 public hearing as required by subsection (a) of Section

18 11-74.4-5. No redevelopment plan shall be adopted unless a

19 municipality complies with all of the following requirements:

20 (1) The municipality finds that the redevelopment

21 project area on the whole has not been subject to growth

22 and development through investment by private enterprise

23 and would not reasonably be anticipated to be developed

24 without the adoption of the redevelopment plan.

25 (2) The municipality finds that the redevelopment plan

26 and project conform to the comprehensive plan for the

27 development of the municipality as a whole, or, for

28 municipalities with a population of 100,000 or more,

29 regardless of when the redevelopment plan and project was

30 adopted, the redevelopment plan and project either: (i)

31 conforms to the strategic economic development or

32 redevelopment plan issued by the designated planning

33 authority of the municipality, or (ii) includes land uses

34 that have been approved by the planning commission of the

35 municipality.

36 (3) The redevelopment plan establishes the estimated

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1 dates of completion of the redevelopment project and

2 retirement of obligations issued to finance redevelopment

3 project costs. Those dates: shall not be later than

4 December 31 of the year in which the payment to the

5 municipal treasurer as provided in subsection (b) of

6 Section 11-74.4-8 of this Act is to be made with respect to

7 ad valorem taxes levied in the twenty-third calendar year

8 after the year in which the ordinance approving the

9 redevelopment project area is adopted if the ordinance was

10 adopted on or after January 15, 1981; shall not be later

11 than December 31 of the year in which the payment to the

12 municipal treasurer as provided in subsection (b) of

13 Section 11-74.4-8 of this Act is to be made with respect to

14 ad valorem taxes levied in the thirty-third calendar year

15 after the year in which the ordinance approving the

16 redevelopment project area if the ordinance was adopted on

17 May 20, 1985 by the Village of Wheeling; and shall not be

18 later than December 31 of the year in which the payment to

19 the municipal treasurer as provided in subsection (b) of

20 Section 11-74.4-8 of this Act is to be made with respect to

21 ad valorem taxes levied in the thirty-fifth calendar year

22 after the year in which the ordinance approving the

23 redevelopment project area is adopted:

24 (A) if the ordinance was adopted before January 15,

25 1981, or

26 (B) if the ordinance was adopted in December 1983,

27 April 1984, July 1985, or December 1989, or

28 (C) if the ordinance was adopted in December 1987

29 and the redevelopment project is located within one

30 mile of Midway Airport, or

31 (D) if the ordinance was adopted before January 1,

32 1987 by a municipality in Mason County, or

33 (E) if the municipality is subject to the Local

34 Government Financial Planning and Supervision Act or

35 the Financially Distressed City Law, or

36 (F) if the ordinance was adopted in December 1984

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1 by the Village of Rosemont, or

2 (G) if the ordinance was adopted on December 31,

3 1986 by a municipality located in Clinton County for

4 which at least $250,000 of tax increment bonds were

5 authorized on June 17, 1997, or if the ordinance was

6 adopted on December 31, 1986 by a municipality with a

7 population in 1990 of less than 3,600 that is located

8 in a county with a population in 1990 of less than

9 34,000 and for which at least $250,000 of tax increment

10 bonds were authorized on June 17, 1997, or

11 (H) if the ordinance was adopted on October 5, 1982

12 by the City of Kankakee, or if the ordinance was

13 adopted on December 29, 1986 by East St. Louis, or

14 (I) if the ordinance was adopted on November 12,

15 1991 by the Village of Sauget, or

16 (J) if the ordinance was adopted on February 11,

17 1985 by the City of Rock Island, or

18 (K) if the ordinance was adopted before December

19 18, 1986 by the City of Moline, or

20 (L) if the ordinance was adopted in September 1988

21 by Sauk Village, or

22 (M) if the ordinance was adopted in October 1993 by

23 Sauk Village, or

24 (N) if the ordinance was adopted on December 29,

25 1986 by the City of Galva, or

26 (O) if the ordinance was adopted in March 1991 by

27 the City of Centreville, or

28 (P) if the ordinance was adopted on January 23,

29 1991 by the City of East St. Louis, or

30 (Q) if the ordinance was adopted on December 22,

31 1986 by the City of Aledo, or

32 (R) if the ordinance was adopted on February 5,

33 1990 by the City of Clinton, or

34 (S) if the ordinance was adopted on September 6,

35 1994 by the City of Freeport, or

36 (T) if the ordinance was adopted on December 22,

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1 1986 by the City of Tuscola, or

2 (U) if the ordinance was adopted on December 23,

3 1986 by the City of Sparta, or

4 (V) if the ordinance was adopted on December 23,

5 1986 by the City of Beardstown, or

6 (W) if the ordinance was adopted on April 27, 1981,

7 October 21, 1985, or December 30, 1986 by the City of

8 Belleville, or

9 (X) if the ordinance was adopted on December 29,

10 1986 by the City of Collinsville, or

11 (Y) if the ordinance was adopted on September 14,

12 1994 by the City of Alton, or

13 (Z) if the ordinance was adopted on November 11,

14 1996 by the City of Lexington, or

15 (AA) if the ordinance was adopted on November 5,

16 1984 by the City of LeRoy, or

17 (BB) if the ordinance was adopted on April 3, 1991

18 or June 3, 1992 by the City of Markham, or

19 (CC) if the ordinance was adopted on November 11,

20 1986 by the City of Pekin, or

21 (DD) if the ordinance was adopted on December 15,

22 1981 by the City of Champaign, or

23 (EE) if the ordinance was adopted on December 15,

24 1986 by the City of Urbana, or

25 (FF) if the ordinance was adopted on December 15,

26 1986 by the Village of Heyworth, or

27 (GG) if the ordinance was adopted on February 24,

28 1992 by the Village of Heyworth, or

29 (HH) if the ordinance was adopted on March 16, 1995

30 by the Village of Heyworth, or

31 (II) if the ordinance was adopted on December 23,

32 1986 by the Town of Cicero, or

33 (JJ) if the ordinance was adopted on December 30,

34 1986 by the City of Effingham, or

35 (KK) if the ordinance was adopted on May 9, 1991 by

36 the Village of Tilton, or

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1 (LL) if the ordinance was adopted on October 20,

2 1986 by the City of Elmhurst, or

3 (MM) if the ordinance was adopted on January 19,

4 1988 by the City of Waukegan, or

5 (NN) if the ordinance was adopted on September 21,

6 1998 by the City of Waukegan, or

7 (OO) if the ordinance was adopted on December 31,

8 1986 by the City of Sullivan, or

9 (PP) if the ordinance was adopted on December 23,

10 1991 by the City of Sullivan, or ~~.~~

11 (QQ)~~(OO)~~ if the ordinance was adopted on December

12 31, 1986 by the City of Oglesby, or ~~.~~

13 (RR)~~(OO)~~ if the ordinance was adopted on July 28,

14 1987 by the City of Marion, or

15 (SS)~~(PP)~~ if the ordinance was adopted on April 23,

16 1990 by the City of Marion.

17 However, for redevelopment project areas for which

18 bonds were issued before July 29, 1991, or for which

19 contracts were entered into before June 1, 1988, in

20 connection with a redevelopment project in the area within

21 the State Sales Tax Boundary, the estimated dates of

22 completion of the redevelopment project and retirement of

23 obligations to finance redevelopment project costs may be

24 extended by municipal ordinance to December 31, 2013. The

25 termination procedures of subsection (b) of Section

26 11-74.4-8 are not required for these redevelopment project

27 areas in 2009 but are required in 2013. The extension

28 allowed by this amendatory Act of 1993 shall not apply to

29 real property tax increment allocation financing under

30 Section 11-74.4-8.

31 A municipality may by municipal ordinance amend an

32 existing redevelopment plan to conform to this paragraph

33 (3) as amended by Public Act 91-478, which municipal

34 ordinance may be adopted without further hearing or notice

35 and without complying with the procedures provided in this

36 Act pertaining to an amendment to or the initial approval

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1 of a redevelopment plan and project and designation of a

2 redevelopment project area.

3 Those dates, for purposes of real property tax

4 increment allocation financing pursuant to Section

5 11-74.4-8 only, shall be not more than 35 years for

6 redevelopment project areas that were adopted on or after

7 December 16, 1986 and for which at least $8 million worth

8 of municipal bonds were authorized on or after December 19,

9 1989 but before January 1, 1990; provided that the

10 municipality elects to extend the life of the redevelopment

11 project area to 35 years by the adoption of an ordinance

12 after at least 14 but not more than 30 days' written notice

13 to the taxing bodies, that would otherwise constitute the

14 joint review board for the redevelopment project area,

15 before the adoption of the ordinance.

16 Those dates, for purposes of real property tax

17 increment allocation financing pursuant to Section

18 11-74.4-8 only, shall be not more than 35 years for

19 redevelopment project areas that were established on or

20 after December 1, 1981 but before January 1, 1982 and for

21 which at least $1,500,000 worth of tax increment revenue

22 bonds were authorized on or after September 30, 1990 but

23 before July 1, 1991; provided that the municipality elects

24 to extend the life of the redevelopment project area to 35

25 years by the adoption of an ordinance after at least 14 but

26 not more than 30 days' written notice to the taxing bodies,

27 that would otherwise constitute the joint review board for

28 the redevelopment project area, before the adoption of the

29 ordinance.

30 (3.5) The municipality finds, in the case of an

31 industrial park conservation area, also that the

32 municipality is a labor surplus municipality and that the

33 implementation of the redevelopment plan will reduce

34 unemployment, create new jobs and by the provision of new

35 facilities enhance the tax base of the taxing districts

36 that extend into the redevelopment project area.

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1 (4) If any incremental revenues are being utilized

2 under Section 8(a)(1) or 8(a)(2) of this Act in

3 redevelopment project areas approved by ordinance after

4 January 1, 1986, the municipality finds: (a) that the

5 redevelopment project area would not reasonably be

6 developed without the use of such incremental revenues, and

7 (b) that such incremental revenues will be exclusively

8 utilized for the development of the redevelopment project

9 area.

10 (5) If the redevelopment plan will not result in

11 displacement of residents from 10 or more inhabited

12 residential units, and the municipality certifies in the

13 plan that such displacement will not result from the plan,

14 a housing impact study need not be performed. If, however,

15 the redevelopment plan would result in the displacement of

16 residents from 10 or more inhabited residential units, or

17 if the redevelopment project area contains 75 or more

18 inhabited residential units and no certification is made,

19 then the municipality shall prepare, as part of the

20 separate feasibility report required by subsection (a) of

21 Section 11-74.4-5, a housing impact study.

22 Part I of the housing impact study shall include (i)

23 data as to whether the residential units are single family

24 or multi-family units, (ii) the number and type of rooms

25 within the units, if that information is available, (iii)

26 whether the units are inhabited or uninhabited, as

27 determined not less than 45 days before the date that the

28 ordinance or resolution required by subsection (a) of

29 Section 11-74.4-5 is passed, and (iv) data as to the racial

30 and ethnic composition of the residents in the inhabited

31 residential units. The data requirement as to the racial

32 and ethnic composition of the residents in the inhabited

33 residential units shall be deemed to be fully satisfied by

34 data from the most recent federal census.

35 Part II of the housing impact study shall identify the

36 inhabited residential units in the proposed redevelopment

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1 project area that are to be or may be removed. If inhabited

2 residential units are to be removed, then the housing

3 impact study shall identify (i) the number and location of

4 those units that will or may be removed, (ii) the

5 municipality's plans for relocation assistance for those

6 residents in the proposed redevelopment project area whose

7 residences are to be removed, (iii) the availability of

8 replacement housing for those residents whose residences

9 are to be removed, and shall identify the type, location,

10 and cost of the housing, and (iv) the type and extent of

11 relocation assistance to be provided.

12 (6) On and after November 1, 1999, the housing impact

13 study required by paragraph (5) shall be incorporated in

14 the redevelopment plan for the redevelopment project area.

15 (7) On and after November 1, 1999, no redevelopment

16 plan shall be adopted, nor an existing plan amended, nor

17 shall residential housing that is occupied by households of

18 low-income and very low-income persons in currently

19 existing redevelopment project areas be removed after

20 November 1, 1999 unless the redevelopment plan provides,

21 with respect to inhabited housing units that are to be

22 removed for households of low-income and very low-income

23 persons, affordable housing and relocation assistance not

24 less than that which would be provided under the federal

25 Uniform Relocation Assistance and Real Property

26 Acquisition Policies Act of 1970 and the regulations under

27 that Act, including the eligibility criteria. Affordable

28 housing may be either existing or newly constructed

29 housing. For purposes of this paragraph (7), "low-income

30 households", "very low-income households", and "affordable

31 housing" have the meanings set forth in the Illinois

32 Affordable Housing Act. The municipality shall make a good

33 faith effort to ensure that this affordable housing is

34 located in or near the redevelopment project area within

35 the municipality.

36 (8) On and after November 1, 1999, if, after the

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1 adoption of the redevelopment plan for the redevelopment

2 project area, any municipality desires to amend its

3 redevelopment plan to remove more inhabited residential

4 units than specified in its original redevelopment plan,

5 that change shall be made in accordance with the procedures

6 in subsection (c) of Section 11-74.4-5.

7 (9) For redevelopment project areas designated prior

8 to November 1, 1999, the redevelopment plan may be amended

9 without further joint review board meeting or hearing,

10 provided that the municipality shall give notice of any

11 such changes by mail to each affected taxing district and

12 registrant on the interested party registry, to authorize

13 the municipality to expend tax increment revenues for

14 redevelopment project costs defined by paragraphs (5) and

15 (7.5), subparagraphs (E) and (F) of paragraph (11), and

16 paragraph (11.5) of subsection (q) of Section 11-74.4-3, so

17 long as the changes do not increase the total estimated

18 redevelopment project costs set out in the redevelopment

19 plan by more than 5% after adjustment for inflation from

20 the date the plan was adopted.

21 (o) "Redevelopment project" means any public and private

22 development project in furtherance of the objectives of a

23 redevelopment plan. On and after November 1, 1999 (the

24 effective date of Public Act 91-478), no redevelopment plan may

25 be approved or amended that includes the development of vacant

26 land (i) with a golf course and related clubhouse and other

27 facilities or (ii) designated by federal, State, county, or

28 municipal government as public land for outdoor recreational

29 activities or for nature preserves and used for that purpose

30 within 5 years prior to the adoption of the redevelopment plan.

31 For the purpose of this subsection, "recreational activities"

32 is limited to mean camping and hunting.

33 (p) "Redevelopment project area" means an area designated

34 by the municipality, which is not less in the aggregate than 1

35 1/2 acres and in respect to which the municipality has made a

36 finding that there exist conditions which cause the area to be

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1 classified as an industrial park conservation area or a

2 blighted area or a conservation area, or a combination of both

3 blighted areas and conservation areas.

4 (q) "Redevelopment project costs" mean and include the sum

5 total of all reasonable or necessary costs incurred or

6 estimated to be incurred, and any such costs incidental to a

7 redevelopment plan and a redevelopment project. Such costs

8 include, without limitation, the following:

9 (1) Costs of studies, surveys, development of plans,

10 and specifications, implementation and administration of

11 the redevelopment plan including but not limited to staff

12 and professional service costs for architectural,

13 engineering, legal, financial, planning or other services,

14 provided however that no charges for professional services

15 may be based on a percentage of the tax increment

16 collected; except that on and after November 1, 1999 (the

17 effective date of Public Act 91-478), no contracts for

18 professional services, excluding architectural and

19 engineering services, may be entered into if the terms of

20 the contract extend beyond a period of 3 years. In

21 addition, "redevelopment project costs" shall not include

22 lobbying expenses. After consultation with the

23 municipality, each tax increment consultant or advisor to a

24 municipality that plans to designate or has designated a

25 redevelopment project area shall inform the municipality

26 in writing of any contracts that the consultant or advisor

27 has entered into with entities or individuals that have

28 received, or are receiving, payments financed by tax

29 increment revenues produced by the redevelopment project

30 area with respect to which the consultant or advisor has

31 performed, or will be performing, service for the

32 municipality. This requirement shall be satisfied by the

33 consultant or advisor before the commencement of services

34 for the municipality and thereafter whenever any other

35 contracts with those individuals or entities are executed

36 by the consultant or advisor;

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1 (1.5) After July 1, 1999, annual administrative costs

2 shall not include general overhead or administrative costs

3 of the municipality that would still have been incurred by

4 the municipality if the municipality had not designated a

5 redevelopment project area or approved a redevelopment

6 plan;

7 (1.6) The cost of marketing sites within the

8 redevelopment project area to prospective businesses,

9 developers, and investors;

10 (2) Property assembly costs, including but not limited

11 to acquisition of land and other property, real or

12 personal, or rights or interests therein, demolition of

13 buildings, site preparation, site improvements that serve

14 as an engineered barrier addressing ground level or below

15 ground environmental contamination, including, but not

16 limited to parking lots and other concrete or asphalt

17 barriers, and the clearing and grading of land;

18 (3) Costs of rehabilitation, reconstruction or repair

19 or remodeling of existing public or private buildings,

20 fixtures, and leasehold improvements; and the cost of

21 replacing an existing public building if pursuant to the

22 implementation of a redevelopment project the existing

23 public building is to be demolished to use the site for

24 private investment or devoted to a different use requiring

25 private investment;

26 (4) Costs of the construction of public works or

27 improvements, except that on and after November 1, 1999,

28 redevelopment project costs shall not include the cost of

29 constructing a new municipal public building principally

30 used to provide offices, storage space, or conference

31 facilities or vehicle storage, maintenance, or repair for

32 administrative, public safety, or public works personnel

33 and that is not intended to replace an existing public

34 building as provided under paragraph (3) of subsection (q)

35 of Section 11-74.4-3 unless either (i) the construction of

36 the new municipal building implements a redevelopment

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1 project that was included in a redevelopment plan that was

2 adopted by the municipality prior to November 1, 1999 or

3 (ii) the municipality makes a reasonable determination in

4 the redevelopment plan, supported by information that

5 provides the basis for that determination, that the new

6 municipal building is required to meet an increase in the

7 need for public safety purposes anticipated to result from

8 the implementation of the redevelopment plan;

9 (5) Costs of job training and retraining projects,

10 including the cost of "welfare to work" programs

11 implemented by businesses located within the redevelopment

12 project area;

13 (6) Financing costs, including but not limited to all

14 necessary and incidental expenses related to the issuance

15 of obligations and which may include payment of interest on

16 any obligations issued hereunder including interest

17 accruing during the estimated period of construction of any

18 redevelopment project for which such obligations are

19 issued and for not exceeding 36 months thereafter and

20 including reasonable reserves related thereto;

21 (7) To the extent the municipality by written agreement

22 accepts and approves the same, all or a portion of a taxing

23 district's capital costs resulting from the redevelopment

24 project necessarily incurred or to be incurred within a

25 taxing district in furtherance of the objectives of the

26 redevelopment plan and project.

27 (7.5) For redevelopment project areas designated (or

28 redevelopment project areas amended to add or increase the

29 number of tax-increment-financing assisted housing units)

30 on or after November 1, 1999, an elementary, secondary, or

31 unit school district's increased costs attributable to

32 assisted housing units located within the redevelopment

33 project area for which the developer or redeveloper

34 receives financial assistance through an agreement with

35 the municipality or because the municipality incurs the

36 cost of necessary infrastructure improvements within the

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1 boundaries of the assisted housing sites necessary for the

2 completion of that housing as authorized by this Act, and

3 which costs shall be paid by the municipality from the

4 Special Tax Allocation Fund when the tax increment revenue

5 is received as a result of the assisted housing units and

6 shall be calculated annually as follows:

7 (A) for foundation districts, excluding any school

8 district in a municipality with a population in excess

9 of 1,000,000, by multiplying the district's increase

10 in attendance resulting from the net increase in new

11 students enrolled in that school district who reside in

12 housing units within the redevelopment project area

13 that have received financial assistance through an

14 agreement with the municipality or because the

15 municipality incurs the cost of necessary

16 infrastructure improvements within the boundaries of

17 the housing sites necessary for the completion of that

18 housing as authorized by this Act since the designation

19 of the redevelopment project area by the most recently

20 available per capita tuition cost as defined in Section

21 10-20.12a of the School Code less any increase in

22 general State aid as defined in Section 18-8.05 of the

23 School Code attributable to these added new students

24 subject to the following annual limitations:

25 (i) for unit school districts with a district

26 average 1995-96 Per Capita Tuition Charge of less

27 than $5,900, no more than 25% of the total amount

28 of property tax increment revenue produced by

29 those housing units that have received tax

30 increment finance assistance under this Act;

31 (ii) for elementary school districts with a

32 district average 1995-96 Per Capita Tuition Charge

33 of less than $5,900, no more than 17% of the total

34 amount of property tax increment revenue produced

35 by those housing units that have received tax

36 increment finance assistance under this Act; and

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1 (iii) for secondary school districts with a

2 district average 1995-96 Per Capita Tuition Charge

3 of less than $5,900, no more than 8% of the total

4 amount of property tax increment revenue produced

5 by those housing units that have received tax

6 increment finance assistance under this Act.

7 (B) For alternate method districts, flat grant

8 districts, and foundation districts with a district

9 average 1995-96 Per Capita Tuition Charge equal to or

10 more than $5,900, excluding any school district with a

11 population in excess of 1,000,000, by multiplying the

12 district's increase in attendance resulting from the

13 net increase in new students enrolled in that school

14 district who reside in housing units within the

15 redevelopment project area that have received

16 financial assistance through an agreement with the

17 municipality or because the municipality incurs the

18 cost of necessary infrastructure improvements within

19 the boundaries of the housing sites necessary for the

20 completion of that housing as authorized by this Act

21 since the designation of the redevelopment project

22 area by the most recently available per capita tuition

23 cost as defined in Section 10-20.12a of the School Code

24 less any increase in general state aid as defined in

25 Section 18-8.05 of the School Code attributable to

26 these added new students subject to the following

27 annual limitations:

28 (i) for unit school districts, no more than 40%

29 of the total amount of property tax increment

30 revenue produced by those housing units that have

31 received tax increment finance assistance under

32 this Act;

33 (ii) for elementary school districts, no more

34 than 27% of the total amount of property tax

35 increment revenue produced by those housing units

36 that have received tax increment finance

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1 assistance under this Act; and

2 (iii) for secondary school districts, no more

3 than 13% of the total amount of property tax

4 increment revenue produced by those housing units

5 that have received tax increment finance

6 assistance under this Act.

7 (C) For any school district in a municipality with

8 a population in excess of 1,000,000, the following

9 restrictions shall apply to the reimbursement of

10 increased costs under this paragraph (7.5):

11 (i) no increased costs shall be reimbursed

12 unless the school district certifies that each of

13 the schools affected by the assisted housing

14 project is at or over its student capacity;

15 (ii) the amount reimbursable shall be reduced

16 by the value of any land donated to the school

17 district by the municipality or developer, and by

18 the value of any physical improvements made to the

19 schools by the municipality or developer; and

20 (iii) the amount reimbursed may not affect

21 amounts otherwise obligated by the terms of any

22 bonds, notes, or other funding instruments, or the

23 terms of any redevelopment agreement.

24 Any school district seeking payment under this

25 paragraph (7.5) shall, after July 1 and before

26 September 30 of each year, provide the municipality

27 with reasonable evidence to support its claim for

28 reimbursement before the municipality shall be

29 required to approve or make the payment to the school

30 district. If the school district fails to provide the

31 information during this period in any year, it shall

32 forfeit any claim to reimbursement for that year.

33 School districts may adopt a resolution waiving the

34 right to all or a portion of the reimbursement

35 otherwise required by this paragraph (7.5). By

36 acceptance of this reimbursement the school district

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1 waives the right to directly or indirectly set aside,

2 modify, or contest in any manner the establishment of

3 the redevelopment project area or projects;

4 (7.7) For redevelopment project areas designated (or

5 redevelopment project areas amended to add or increase the

6 number of tax-increment-financing assisted housing units)

7 on or after January 1, 2005 (the effective date of Public

8 Act 93-961), a public library district's increased costs

9 attributable to assisted housing units located within the

10 redevelopment project area for which the developer or

11 redeveloper receives financial assistance through an

12 agreement with the municipality or because the

13 municipality incurs the cost of necessary infrastructure

14 improvements within the boundaries of the assisted housing

15 sites necessary for the completion of that housing as

16 authorized by this Act shall be paid to the library

17 district by the municipality from the Special Tax

18 Allocation Fund when the tax increment revenue is received

19 as a result of the assisted housing units. This paragraph

20 (7.7) applies only if (i) the library district is located

21 in a county that is subject to the Property Tax Extension

22 Limitation Law or (ii) the library district is not located

23 in a county that is subject to the Property Tax Extension

24 Limitation Law but the district is prohibited by any other

25 law from increasing its tax levy rate without a prior voter

26 referendum.

27 The amount paid to a library district under this

28 paragraph (7.7) shall be calculated by multiplying (i) the

29 net increase in the number of persons eligible to obtain a

30 library card in that district who reside in housing units

31 within the redevelopment project area that have received

32 financial assistance through an agreement with the

33 municipality or because the municipality incurs the cost of

34 necessary infrastructure improvements within the

35 boundaries of the housing sites necessary for the

36 completion of that housing as authorized by this Act since

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1 the designation of the redevelopment project area by (ii)

2 the per-patron cost of providing library services so long

3 as it does not exceed $120. The per-patron cost shall be

4 the Total Operating Expenditures Per Capita as stated in

5 the most recent Illinois Public Library Statistics

6 produced by the Library Research Center at the University

7 of Illinois. The municipality may deduct from the amount

8 that it must pay to a library district under this paragraph

9 any amount that it has voluntarily paid to the library

10 district from the tax increment revenue. The amount paid to

11 a library district under this paragraph (7.7) shall be no

12 more than 2% of the amount produced by the assisted housing

13 units and deposited into the Special Tax Allocation Fund.

14 A library district is not eligible for any payment

15 under this paragraph (7.7) unless the library district has

16 experienced an increase in the number of patrons from the

17 municipality that created the tax-increment-financing

18 district since the designation of the redevelopment

19 project area.

20 Any library district seeking payment under this

21 paragraph (7.7) shall, after July 1 and before September 30

22 of each year, provide the municipality with convincing

23 evidence to support its claim for reimbursement before the

24 municipality shall be required to approve or make the

25 payment to the library district. If the library district

26 fails to provide the information during this period in any

27 year, it shall forfeit any claim to reimbursement for that

28 year. Library districts may adopt a resolution waiving the

29 right to all or a portion of the reimbursement otherwise

30 required by this paragraph (7.7). By acceptance of such

31 reimbursement, the library district shall forfeit any

32 right to directly or indirectly set aside, modify, or

33 contest in any manner whatsoever the establishment of the

34 redevelopment project area or projects;

35 (8) Relocation costs to the extent that a municipality

36 determines that relocation costs shall be paid or is

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1 required to make payment of relocation costs by federal or

2 State law or in order to satisfy subparagraph (7) of

3 subsection (n). In all eminent domain actions in which a

4 property owner is displaced, the displacing entity must pay

5 the owner all of the following: ~~;~~

6 (A) The actual reasonable relocation expenses of

7 the owner and the owner's family and the owner's

8 business, farm operation, or personal property.

9 (B) The amount of any direct losses of tangible

10 personal property incurred by the owner as a result of

11 relocating or discontinuing the owner's business or

12 farm operation, but not to exceed an amount equal to

13 the reasonable expenses that would have been required

14 to relocate the property.

15 (C) The actual reasonable expenses incurred by the

16 owner in searching for a replacement business or farm

17 operation.

18 (D) The actual reasonable expenses of the owner

19 that were necessary for the owner to reestablish the

20 owner's displaced farm operation, nonprofit

21 organization, or small business, but not to exceed

22 $10,000;

23 (9) Payment in lieu of taxes;

24 (10) Costs of job training, retraining, advanced

25 vocational education or career education, including but

26 not limited to courses in occupational, semi-technical or

27 technical fields leading directly to employment, incurred

28 by one or more taxing districts, provided that such costs

29 (i) are related to the establishment and maintenance of

30 additional job training, advanced vocational education or

31 career education programs for persons employed or to be

32 employed by employers located in a redevelopment project

33 area; and (ii) when incurred by a taxing district or taxing

34 districts other than the municipality, are set forth in a

35 written agreement by or among the municipality and the

36 taxing district or taxing districts, which agreement

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1 describes the program to be undertaken, including but not

2 limited to the number of employees to be trained, a

3 description of the training and services to be provided,

4 the number and type of positions available or to be

5 available, itemized costs of the program and sources of

6 funds to pay for the same, and the term of the agreement.

7 Such costs include, specifically, the payment by community

8 college districts of costs pursuant to Sections 3-37, 3-38,

9 3-40 and 3-40.1 of the Public Community College Act and by

10 school districts of costs pursuant to Sections 10-22.20a

11 and 10-23.3a of The School Code;

12 (11) Interest cost incurred by a redeveloper related to

13 the construction, renovation or rehabilitation of a

14 redevelopment project provided that:

15 (A) such costs are to be paid directly from the

16 special tax allocation fund established pursuant to

17 this Act;

18 (B) such payments in any one year may not exceed

19 30% of the annual interest costs incurred by the

20 redeveloper with regard to the redevelopment project

21 during that year;

22 (C) if there are not sufficient funds available in

23 the special tax allocation fund to make the payment

24 pursuant to this paragraph (11) then the amounts so due

25 shall accrue and be payable when sufficient funds are

26 available in the special tax allocation fund;

27 (D) the total of such interest payments paid

28 pursuant to this Act may not exceed 30% of the total

29 (i) cost paid or incurred by the redeveloper for the

30 redevelopment project plus (ii) redevelopment project

31 costs excluding any property assembly costs and any

32 relocation costs incurred by a municipality pursuant

33 to this Act; and

34 (E) the cost limits set forth in subparagraphs (B)

35 and (D) of paragraph (11) shall be modified for the

36 financing of rehabilitated or new housing units for

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1 low-income households and very low-income households,

2 as defined in Section 3 of the Illinois Affordable

3 Housing Act. The percentage of 75% shall be substituted

4 for 30% in subparagraphs (B) and (D) of paragraph (11).

5 (F) Instead of the eligible costs provided by

6 subparagraphs (B) and (D) of paragraph (11), as

7 modified by this subparagraph, and notwithstanding any

8 other provisions of this Act to the contrary, the

9 municipality may pay from tax increment revenues up to

10 50% of the cost of construction of new housing units to

11 be occupied by low-income households and very

12 low-income households as defined in Section 3 of the

13 Illinois Affordable Housing Act. The cost of

14 construction of those units may be derived from the

15 proceeds of bonds issued by the municipality under this

16 Act or other constitutional or statutory authority or

17 from other sources of municipal revenue that may be

18 reimbursed from tax increment revenues or the proceeds

19 of bonds issued to finance the construction of that

20 housing.

21 The eligible costs provided under this

22 subparagraph (F) of paragraph (11) shall be an eligible

23 cost for the construction, renovation, and

24 rehabilitation of all low and very low-income housing

25 units, as defined in Section 3 of the Illinois

26 Affordable Housing Act, within the redevelopment

27 project area. If the low and very low-income units are

28 part of a residential redevelopment project that

29 includes units not affordable to low and very

30 low-income households, only the low and very

31 low-income units shall be eligible for benefits under

32 subparagraph (F) of paragraph (11). The standards for

33 maintaining the occupancy by low-income households and

34 very low-income households, as defined in Section 3 of

35 the Illinois Affordable Housing Act, of those units

36 constructed with eligible costs made available under

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1 the provisions of this subparagraph (F) of paragraph

2 (11) shall be established by guidelines adopted by the

3 municipality. The responsibility for annually

4 documenting the initial occupancy of the units by

5 low-income households and very low-income households,

6 as defined in Section 3 of the Illinois Affordable

7 Housing Act, shall be that of the then current owner of

8 the property. For ownership units, the guidelines will

9 provide, at a minimum, for a reasonable recapture of

10 funds, or other appropriate methods designed to

11 preserve the original affordability of the ownership

12 units. For rental units, the guidelines will provide,

13 at a minimum, for the affordability of rent to low and

14 very low-income households. As units become available,

15 they shall be rented to income-eligible tenants. The

16 municipality may modify these guidelines from time to

17 time; the guidelines, however, shall be in effect for

18 as long as tax increment revenue is being used to pay

19 for costs associated with the units or for the

20 retirement of bonds issued to finance the units or for

21 the life of the redevelopment project area, whichever

22 is later.

23 (11.5) If the redevelopment project area is located

24 within a municipality with a population of more than

25 100,000, the cost of day care services for children of

26 employees from low-income families working for businesses

27 located within the redevelopment project area and all or a

28 portion of the cost of operation of day care centers

29 established by redevelopment project area businesses to

30 serve employees from low-income families working in

31 businesses located in the redevelopment project area. For

32 the purposes of this paragraph, "low-income families"

33 means families whose annual income does not exceed 80% of

34 the municipal, county, or regional median income, adjusted

35 for family size, as the annual income and municipal,

36 county, or regional median income are determined from time

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1 to time by the United States Department of Housing and

2 Urban Development.

3 (12) Unless explicitly stated herein the cost of

4 construction of new privately-owned buildings shall not be

5 an eligible redevelopment project cost.

6 (13) After November 1, 1999 (the effective date of

7 Public Act 91-478), none of the redevelopment project costs

8 enumerated in this subsection shall be eligible

9 redevelopment project costs if those costs would provide

10 direct financial support to a retail entity initiating

11 operations in the redevelopment project area while

12 terminating operations at another Illinois location within

13 10 miles of the redevelopment project area but outside the

14 boundaries of the redevelopment project area municipality.

15 For purposes of this paragraph, termination means a closing

16 of a retail operation that is directly related to the

17 opening of the same operation or like retail entity owned

18 or operated by more than 50% of the original ownership in a

19 redevelopment project area, but it does not mean closing an

20 operation for reasons beyond the control of the retail

21 entity, as documented by the retail entity, subject to a

22 reasonable finding by the municipality that the current

23 location contained inadequate space, had become

24 economically obsolete, or was no longer a viable location

25 for the retailer or serviceman.

26 If a special service area has been established pursuant to

27 the Special Service Area Tax Act or Special Service Area Tax

28 Law, then any tax increment revenues derived from the tax

29 imposed pursuant to the Special Service Area Tax Act or Special

30 Service Area Tax Law may be used within the redevelopment

31 project area for the purposes permitted by that Act or Law as

32 well as the purposes permitted by this Act.

33 (r) "State Sales Tax Boundary" means the redevelopment

34 project area or the amended redevelopment project area

35 boundaries which are determined pursuant to subsection (9) of

36 Section 11-74.4-8a of this Act. The Department of Revenue shall

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1 certify pursuant to subsection (9) of Section 11-74.4-8a the

2 appropriate boundaries eligible for the determination of State

3 Sales Tax Increment.

4 (s) "State Sales Tax Increment" means an amount equal to

5 the increase in the aggregate amount of taxes paid by retailers

6 and servicemen, other than retailers and servicemen subject to

7 the Public Utilities Act, on transactions at places of business

8 located within a State Sales Tax Boundary pursuant to the

9 Retailers' Occupation Tax Act, the Use Tax Act, the Service Use

10 Tax Act, and the Service Occupation Tax Act, except such

11 portion of such increase that is paid into the State and Local

12 Sales Tax Reform Fund, the Local Government Distributive Fund,

13 the Local Government Tax Fund and the County and Mass Transit

14 District Fund, for as long as State participation exists, over

15 and above the Initial Sales Tax Amounts, Adjusted Initial Sales

16 Tax Amounts or the Revised Initial Sales Tax Amounts for such

17 taxes as certified by the Department of Revenue and paid under

18 those Acts by retailers and servicemen on transactions at

19 places of business located within the State Sales Tax Boundary

20 during the base year which shall be the calendar year

21 immediately prior to the year in which the municipality adopted

22 tax increment allocation financing, less 3.0% of such amounts

23 generated under the Retailers' Occupation Tax Act, Use Tax Act

24 and Service Use Tax Act and the Service Occupation Tax Act,

25 which sum shall be appropriated to the Department of Revenue to

26 cover its costs of administering and enforcing this Section.

27 For purposes of computing the aggregate amount of such taxes

28 for base years occurring prior to 1985, the Department of

29 Revenue shall compute the Initial Sales Tax Amount for such

30 taxes and deduct therefrom an amount equal to 4% of the

31 aggregate amount of taxes per year for each year the base year

32 is prior to 1985, but not to exceed a total deduction of 12%.

33 The amount so determined shall be known as the "Adjusted

34 Initial Sales Tax Amount". For purposes of determining the

35 State Sales Tax Increment the Department of Revenue shall for

36 each period subtract from the tax amounts received from

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1 retailers and servicemen on transactions located in the State

2 Sales Tax Boundary, the certified Initial Sales Tax Amounts,

3 Adjusted Initial Sales Tax Amounts or Revised Initial Sales Tax

4 Amounts for the Retailers' Occupation Tax Act, the Use Tax Act,

5 the Service Use Tax Act and the Service Occupation Tax Act. For

6 the State Fiscal Year 1989 this calculation shall be made by

7 utilizing the calendar year 1987 to determine the tax amounts

8 received. For the State Fiscal Year 1990, this calculation

9 shall be made by utilizing the period from January 1, 1988,

10 until September 30, 1988, to determine the tax amounts received

11 from retailers and servicemen, which shall have deducted

12 therefrom nine-twelfths of the certified Initial Sales Tax

13 Amounts, Adjusted Initial Sales Tax Amounts or the Revised

14 Initial Sales Tax Amounts as appropriate. For the State Fiscal

15 Year 1991, this calculation shall be made by utilizing the

16 period from October 1, 1988, until June 30, 1989, to determine

17 the tax amounts received from retailers and servicemen, which

18 shall have deducted therefrom nine-twelfths of the certified

19 Initial State Sales Tax Amounts, Adjusted Initial Sales Tax

20 Amounts or the Revised Initial Sales Tax Amounts as

21 appropriate. For every State Fiscal Year thereafter, the

22 applicable period shall be the 12 months beginning July 1 and

23 ending on June 30, to determine the tax amounts received which

24 shall have deducted therefrom the certified Initial Sales Tax

25 Amounts, Adjusted Initial Sales Tax Amounts or the Revised

26 Initial Sales Tax Amounts. Municipalities intending to receive

27 a distribution of State Sales Tax Increment must report a list

28 of retailers to the Department of Revenue by October 31, 1988

29 and by July 31, of each year thereafter.

30 (t) "Taxing districts" means counties, townships, cities

31 and incorporated towns and villages, school, road, park,

32 sanitary, mosquito abatement, forest preserve, public health,

33 fire protection, river conservancy, tuberculosis sanitarium

34 and any other municipal corporations or districts with the

35 power to levy taxes.

36 (u) "Taxing districts' capital costs" means those costs of

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1 taxing districts for capital improvements that are found by the

2 municipal corporate authorities to be necessary and directly

3 result from the redevelopment project.

4 (v) As used in subsection (a) of Section 11-74.4-3 of this

5 Act, "vacant land" means any parcel or combination of parcels

6 of real property without industrial, commercial, and

7 residential buildings which has not been used for commercial

8 agricultural purposes within 5 years prior to the designation

9 of the redevelopment project area, unless the parcel is

10 included in an industrial park conservation area or the parcel

11 has been subdivided; provided that if the parcel was part of a

12 larger tract that has been divided into 3 or more smaller

13 tracts that were accepted for recording during the period from

14 1950 to 1990, then the parcel shall be deemed to have been

15 subdivided, and all proceedings and actions of the municipality

16 taken in that connection with respect to any previously

17 approved or designated redevelopment project area or amended

18 redevelopment project area are hereby validated and hereby

19 declared to be legally sufficient for all purposes of this Act.

20 For purposes of this Section and only for land subject to the

21 subdivision requirements of the Plat Act, land is subdivided

22 when the original plat of the proposed Redevelopment Project

23 Area or relevant portion thereof has been properly certified,

24 acknowledged, approved, and recorded or filed in accordance

25 with the Plat Act and a preliminary plat, if any, for any

26 subsequent phases of the proposed Redevelopment Project Area or

27 relevant portion thereof has been properly approved and filed

28 in accordance with the applicable ordinance of the

29 municipality.

30 (w) "Annual Total Increment" means the sum of each

31 municipality's annual Net Sales Tax Increment and each

32 municipality's annual Net Utility Tax Increment. The ratio of

33 the Annual Total Increment of each municipality to the Annual

34 Total Increment for all municipalities, as most recently

35 calculated by the Department, shall determine the proportional

36 shares of the Illinois Tax Increment Fund to be distributed to

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1 each municipality.

2 (Source: P.A. 93-298, eff. 7-23-03; 93-708, eff. 1-1-05;

3 93-747, eff. 7-15-04; 93-924, eff. 8-12-04; 93-961, eff.

4 1-1-05; 93-983, eff. 8-23-04; 93-984, eff. 8-23-04; 93-985,

5 eff. 8-23-04; 93-986, eff. 8-23-04; 93-987, eff. 8-23-04;

6 93-995, eff. 8-23-04; 93-1024, eff. 8-25-04; 93-1076, eff.

7 1-18-05; 94-260, eff. 7-19-05; 94-268, eff. 7-19-05; 94-297,

8 eff. 7-21-05; 94-302, eff. 7-21-05; 94-704, eff. 12-5-05;

9 revised 12-9-05.)

10 (Text of Section after amendment by P.A. 94-702 and 94-711)

11 Sec. 11-74.4-3. Definitions. The following terms, wherever

12 used or referred to in this Division 74.4 shall have the

13 following respective meanings, unless in any case a different

14 meaning clearly appears from the context.

15 (a) For any redevelopment project area that has been

16 designated pursuant to this Section by an ordinance adopted

17 prior to November 1, 1999 (the effective date of Public Act

18 91-478), "blighted area" shall have the meaning set forth in

19 this Section prior to that date.

20 On and after November 1, 1999, "blighted area" means any

21 improved or vacant area within the boundaries of a

22 redevelopment project area located within the territorial

23 limits of the municipality where:

24 (1) If improved, industrial, commercial, and

25 residential buildings or improvements are detrimental to

26 the public safety, health, or welfare because of a

27 combination of 5 or more of the following factors, each of

28 which is (i) present, with that presence documented, to a

29 meaningful extent so that a municipality may reasonably

30 find that the factor is clearly present within the intent

31 of the Act and (ii) reasonably distributed throughout the

32 improved part of the redevelopment project area:

33 (A) Dilapidation. An advanced state of disrepair

34 or neglect of necessary repairs to the primary

35 structural components of buildings or improvements in

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1 such a combination that a documented building

2 condition analysis determines that major repair is

3 required or the defects are so serious and so extensive

4 that the buildings must be removed.

5 (B) Obsolescence. The condition or process of

6 falling into disuse. Structures have become ill-suited

7 for the original use.

8 (C) Deterioration. With respect to buildings,

9 defects including, but not limited to, major defects in

10 the secondary building components such as doors,

11 windows, porches, gutters and downspouts, and fascia.

12 With respect to surface improvements, that the

13 condition of roadways, alleys, curbs, gutters,

14 sidewalks, off-street parking, and surface storage

15 areas evidence deterioration, including, but not

16 limited to, surface cracking, crumbling, potholes,

17 depressions, loose paving material, and weeds

18 protruding through paved surfaces.

19 (D) Presence of structures below minimum code

20 standards. All structures that do not meet the

21 standards of zoning, subdivision, building, fire, and

22 other governmental codes applicable to property, but

23 not including housing and property maintenance codes.

24 (E) Illegal use of individual structures. The use

25 of structures in violation of applicable federal,

26 State, or local laws, exclusive of those applicable to

27 the presence of structures below minimum code

28 standards.

29 (F) Excessive vacancies. The presence of buildings

30 that are unoccupied or under-utilized and that

31 represent an adverse influence on the area because of

32 the frequency, extent, or duration of the vacancies.

33 (G) Lack of ventilation, light, or sanitary

34 facilities. The absence of adequate ventilation for

35 light or air circulation in spaces or rooms without

36 windows, or that require the removal of dust, odor,

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1 gas, smoke, or other noxious airborne materials.

2 Inadequate natural light and ventilation means the

3 absence of skylights or windows for interior spaces or

4 rooms and improper window sizes and amounts by room

5 area to window area ratios. Inadequate sanitary

6 facilities refers to the absence or inadequacy of

7 garbage storage and enclosure, bathroom facilities,

8 hot water and kitchens, and structural inadequacies

9 preventing ingress and egress to and from all rooms and

10 units within a building.

11 (H) Inadequate utilities. Underground and overhead

12 utilities such as storm sewers and storm drainage,

13 sanitary sewers, water lines, and gas, telephone, and

14 electrical services that are shown to be inadequate.

15 Inadequate utilities are those that are: (i) of

16 insufficient capacity to serve the uses in the

17 redevelopment project area, (ii) deteriorated,

18 antiquated, obsolete, or in disrepair, or (iii)

19 lacking within the redevelopment project area.

20 (I) Excessive land coverage and overcrowding of

21 structures and community facilities. The

22 over-intensive use of property and the crowding of

23 buildings and accessory facilities onto a site.

24 Examples of problem conditions warranting the

25 designation of an area as one exhibiting excessive land

26 coverage are: (i) the presence of buildings either

27 improperly situated on parcels or located on parcels of

28 inadequate size and shape in relation to present-day

29 standards of development for health and safety and (ii)

30 the presence of multiple buildings on a single parcel.

31 For there to be a finding of excessive land coverage,

32 these parcels must exhibit one or more of the following

33 conditions: insufficient provision for light and air

34 within or around buildings, increased threat of spread

35 of fire due to the close proximity of buildings, lack

36 of adequate or proper access to a public right-of-way,

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1 lack of reasonably required off-street parking, or

2 inadequate provision for loading and service.

3 (J) Deleterious land use or layout. The existence

4 of incompatible land-use relationships, buildings

5 occupied by inappropriate mixed-uses, or uses

6 considered to be noxious, offensive, or unsuitable for

7 the surrounding area.

8 (K) Environmental clean-up. The proposed

9 redevelopment project area has incurred Illinois

10 Environmental Protection Agency or United States

11 Environmental Protection Agency remediation costs for,

12 or a study conducted by an independent consultant

13 recognized as having expertise in environmental

14 remediation has determined a need for, the clean-up of

15 hazardous waste, hazardous substances, or underground

16 storage tanks required by State or federal law,

17 provided that the remediation costs constitute a

18 material impediment to the development or

19 redevelopment of the redevelopment project area.

20 (L) Lack of community planning. The proposed

21 redevelopment project area was developed prior to or

22 without the benefit or guidance of a community plan.

23 This means that the development occurred prior to the

24 adoption by the municipality of a comprehensive or

25 other community plan or that the plan was not followed

26 at the time of the area's development. This factor must

27 be documented by evidence of adverse or incompatible

28 land-use relationships, inadequate street layout,

29 improper subdivision, parcels of inadequate shape and

30 size to meet contemporary development standards, or

31 other evidence demonstrating an absence of effective

32 community planning.

33 (M) The total equalized assessed value of the

34 proposed redevelopment project area has declined for 3

35 of the last 5 calendar years prior to the year in which

36 the redevelopment project area is designated or is

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1 increasing at an annual rate that is less than the

2 balance of the municipality for 3 of the last 5

3 calendar years for which information is available or is

4 increasing at an annual rate that is less than the

5 Consumer Price Index for All Urban Consumers published

6 by the United States Department of Labor or successor

7 agency for 3 of the last 5 calendar years prior to the

8 year in which the redevelopment project area is

9 designated.

10 (2) If vacant, the sound growth of the redevelopment

11 project area is impaired by a combination of 2 or more of

12 the following factors, each of which is (i) present, with

13 that presence documented, to a meaningful extent so that a

14 municipality may reasonably find that the factor is clearly

15 present within the intent of the Act and (ii) reasonably

16 distributed throughout the vacant part of the

17 redevelopment project area to which it pertains:

18 (A) Obsolete platting of vacant land that results

19 in parcels of limited or narrow size or configurations

20 of parcels of irregular size or shape that would be

21 difficult to develop on a planned basis and in a manner

22 compatible with contemporary standards and

23 requirements, or platting that failed to create

24 rights-of-ways for streets or alleys or that created

25 inadequate right-of-way widths for streets, alleys, or

26 other public rights-of-way or that omitted easements

27 for public utilities.

28 (B) Diversity of ownership of parcels of vacant

29 land sufficient in number to retard or impede the

30 ability to assemble the land for development.

31 (C) Tax and special assessment delinquencies exist

32 or the property has been the subject of tax sales under

33 the Property Tax Code within the last 5 years.

34 (D) Deterioration of structures or site

35 improvements in neighboring areas adjacent to the

36 vacant land.

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1 (E) The area has incurred Illinois Environmental

2 Protection Agency or United States Environmental

3 Protection Agency remediation costs for, or a study

4 conducted by an independent consultant recognized as

5 having expertise in environmental remediation has

6 determined a need for, the clean-up of hazardous waste,

7 hazardous substances, or underground storage tanks

8 required by State or federal law, provided that the

9 remediation costs constitute a material impediment to

10 the development or redevelopment of the redevelopment

11 project area.

12 (F) The total equalized assessed value of the

13 proposed redevelopment project area has declined for 3

14 of the last 5 calendar years prior to the year in which

15 the redevelopment project area is designated or is

16 increasing at an annual rate that is less than the

17 balance of the municipality for 3 of the last 5

18 calendar years for which information is available or is

19 increasing at an annual rate that is less than the

20 Consumer Price Index for All Urban Consumers published

21 by the United States Department of Labor or successor

22 agency for 3 of the last 5 calendar years prior to the

23 year in which the redevelopment project area is

24 designated.

25 (3) If vacant, the sound growth of the redevelopment

26 project area is impaired by one of the following factors

27 that (i) is present, with that presence documented, to a

28 meaningful extent so that a municipality may reasonably

29 find that the factor is clearly present within the intent

30 of the Act and (ii) is reasonably distributed throughout

31 the vacant part of the redevelopment project area to which

32 it pertains:

33 (A) The area consists of one or more unused

34 quarries, mines, or strip mine ponds.

35 (B) The area consists of unused rail yards, rail

36 tracks, or railroad rights-of-way.

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1 (C) The area, prior to its designation, is subject

2 to (i) chronic flooding that adversely impacts on real

3 property in the area as certified by a registered

4 professional engineer or appropriate regulatory agency

5 or (ii) surface water that discharges from all or a

6 part of the area and contributes to flooding within the

7 same watershed, but only if the redevelopment project

8 provides for facilities or improvements to contribute

9 to the alleviation of all or part of the flooding.

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 sites.

14 (E) Prior to November 1, 1999, the area is not less

15 than 50 nor more than 100 acres and 75% of which is

16 vacant (notwithstanding that the area has been used for

17 commercial agricultural purposes within 5 years prior

18 to the designation of the redevelopment project area),

19 and the area meets at least one of the factors itemized

20 in paragraph (1) of this subsection, the area has been

21 designated as a town or village center by ordinance or

22 comprehensive plan adopted prior to January 1, 1982,

23 and the area has not been developed for that designated

24 purpose.

25 (F) The area qualified as a blighted improved area

26 immediately prior to becoming vacant, unless there has

27 been substantial private investment in the immediately

28 surrounding area.

29 (b) For any redevelopment project area that has been

30 designated pursuant to this Section by an ordinance adopted

31 prior to November 1, 1999 (the effective date of Public Act

32 91-478), "conservation area" shall have the meaning set forth

33 in this Section prior to that date.

34 On and after November 1, 1999, "conservation area" means

35 any improved area within the boundaries of a redevelopment

36 project area located within the territorial limits of the

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1 municipality in which 50% or more of the structures in the area

2 have an age of 35 years or more. Such an area is not yet a

3 blighted area but because of a combination of 3 or more of the

4 following factors is detrimental to the public safety, health,

5 morals or welfare and such an area may become a blighted area:

6 (1) Dilapidation. An advanced state of disrepair or

7 neglect of necessary repairs to the primary structural

8 components of buildings or improvements in such a

9 combination that a documented building condition analysis

10 determines that major repair is required or the defects are

11 so serious and so extensive that the buildings must be

12 removed.

13 (2) Obsolescence. The condition or process of falling

14 into disuse. Structures have become ill-suited for the

15 original use.

16 (3) Deterioration. With respect to buildings, defects

17 including, but not limited to, major defects in the

18 secondary building components such as doors, windows,

19 porches, gutters and downspouts, and fascia. With respect

20 to surface improvements, that the condition of roadways,

21 alleys, curbs, gutters, sidewalks, off-street parking, and

22 surface storage areas evidence deterioration, including,

23 but not limited to, surface cracking, crumbling, potholes,

24 depressions, loose paving material, and weeds protruding

25 through paved surfaces.

26 (4) Presence of structures below minimum code

27 standards. All structures that do not meet the standards of

28 zoning, subdivision, building, fire, and other

29 governmental codes applicable to property, but not

30 including housing and property maintenance codes.

31 (5) Illegal use of individual structures. The use of

32 structures in violation of applicable federal, State, or

33 local laws, exclusive of those applicable to the presence

34 of structures below minimum code standards.

35 (6) Excessive vacancies. The presence of buildings

36 that are unoccupied or under-utilized and that represent an

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1 adverse influence on the area because of the frequency,

2 extent, or duration of the vacancies.

3 (7) Lack of ventilation, light, or sanitary

4 facilities. The absence of adequate ventilation for light

5 or air circulation in spaces or rooms without windows, or

6 that require the removal of dust, odor, gas, smoke, or

7 other noxious airborne materials. Inadequate natural light

8 and ventilation means the absence or inadequacy of

9 skylights or windows for interior spaces or rooms and

10 improper window sizes and amounts by room area to window

11 area ratios. Inadequate sanitary facilities refers to the

12 absence or inadequacy of garbage storage and enclosure,

13 bathroom facilities, hot water and kitchens, and

14 structural inadequacies preventing ingress and egress to

15 and from all rooms and units within a building.

16 (8) Inadequate utilities. Underground and overhead

17 utilities such as storm sewers and storm drainage, sanitary

18 sewers, water lines, and gas, telephone, and electrical

19 services that are shown to be inadequate. Inadequate

20 utilities are those that are: (i) of insufficient capacity

21 to serve the uses in the redevelopment project area, (ii)

22 deteriorated, antiquated, obsolete, or in disrepair, or

23 (iii) lacking within the redevelopment project area.

24 (9) Excessive land coverage and overcrowding of

25 structures and community facilities. The over-intensive

26 use of property and the crowding of buildings and accessory

27 facilities onto a site. Examples of problem conditions

28 warranting the designation of an area as one exhibiting

29 excessive land coverage are: the presence of buildings

30 either improperly situated on parcels or located on parcels

31 of inadequate size and shape in relation to present-day

32 standards of development for health and safety and the

33 presence of multiple buildings on a single parcel. For

34 there to be a finding of excessive land coverage, these

35 parcels must exhibit one or more of the following

36 conditions: insufficient provision for light and air

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1 within or around buildings, increased threat of spread of

2 fire due to the close proximity of buildings, lack of

3 adequate or proper access to a public right-of-way, lack of

4 reasonably required off-street parking, or inadequate

5 provision for loading and service.

6 (10) Deleterious land use or layout. The existence of

7 incompatible land-use relationships, buildings occupied by

8 inappropriate mixed-uses, or uses considered to be

9 noxious, offensive, or unsuitable for the surrounding

10 area.

11 (11) Lack of community planning. The proposed

12 redevelopment project area was developed prior to or

13 without the benefit or guidance of a community plan. This

14 means that the development occurred prior to the adoption

15 by the municipality of a comprehensive or other community

16 plan or that the plan was not followed at the time of the

17 area's development. This factor must be documented by

18 evidence of adverse or incompatible land-use

19 relationships, inadequate street layout, improper

20 subdivision, parcels of inadequate shape and size to meet

21 contemporary development standards, or other evidence

22 demonstrating an absence of effective community planning.

23 (12) The area has incurred Illinois Environmental

24 Protection Agency or United States Environmental

25 Protection Agency remediation costs for, or a study

26 conducted by an independent consultant recognized as

27 having expertise in environmental remediation has

28 determined a need for, the clean-up of hazardous waste,

29 hazardous substances, or underground storage tanks

30 required by State or federal law, provided that the

31 remediation costs constitute a material impediment to the

32 development or redevelopment of the redevelopment project

33 area.

34 (13) The total equalized assessed value of the proposed

35 redevelopment project area has declined for 3 of the last 5

36 calendar years for which information is available or is

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1 increasing at an annual rate that is less than the balance

2 of the municipality for 3 of the last 5 calendar years for

3 which information is available or is increasing at an

4 annual rate that is less than the Consumer Price Index for

5 All Urban Consumers published by the United States

6 Department of Labor or successor agency for 3 of the last 5

7 calendar years for which information is available.

8 (c) "Industrial park" means an area in a blighted or

9 conservation area suitable for use by any manufacturing,

10 industrial, research or transportation enterprise, of

11 facilities to include but not be limited to factories, mills,

12 processing plants, assembly plants, packing plants,

13 fabricating plants, industrial distribution centers,

14 warehouses, repair overhaul or service facilities, freight

15 terminals, research facilities, test facilities or railroad

16 facilities.

17 (d) "Industrial park conservation area" means an area

18 within the boundaries of a redevelopment project area located

19 within the territorial limits of a municipality that is a labor

20 surplus municipality or within 1 1/2 miles of the territorial

21 limits of a municipality that is a labor surplus municipality

22 if the area is annexed to the municipality; which area is zoned

23 as industrial no later than at the time the municipality by

24 ordinance designates the redevelopment project area, and which

25 area includes both vacant land suitable for use as an

26 industrial park and a blighted area or conservation area

27 contiguous to such vacant land.

28 (e) "Labor surplus municipality" means a municipality in

29 which, at any time during the 6 months before the municipality

30 by ordinance designates an industrial park conservation area,

31 the unemployment rate was over 6% and was also 100% or more of

32 the national average unemployment rate for that same time as

33 published in the United States Department of Labor Bureau of

34 Labor Statistics publication entitled "The Employment

35 Situation" or its successor publication. For the purpose of

36 this subsection, if unemployment rate statistics for the

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1 municipality are not available, the unemployment rate in the

2 municipality shall be deemed to be the same as the unemployment

3 rate in the principal county in which the municipality is

4 located.

5 (f) "Municipality" shall mean a city, village,

6 incorporated town, or a township that is located in the

7 unincorporated portion of a county with 3 million or more

8 inhabitants, if the county adopted an ordinance that approved

9 the township's redevelopment plan.

10 (g) "Initial Sales Tax Amounts" means the amount of taxes

11 paid under the Retailers' Occupation Tax Act, Use Tax Act,

12 Service Use Tax Act, the Service Occupation Tax Act, the

13 Municipal Retailers' Occupation Tax Act, and the Municipal

14 Service Occupation Tax Act by retailers and servicemen on

15 transactions at places located in a State Sales Tax Boundary

16 during the calendar year 1985.

17 (g-1) "Revised Initial Sales Tax Amounts" means the amount

18 of taxes paid under the Retailers' Occupation Tax Act, Use Tax

19 Act, Service Use Tax Act, the Service Occupation Tax Act, the

20 Municipal Retailers' Occupation Tax Act, and the Municipal

21 Service Occupation Tax Act by retailers and servicemen on

22 transactions at places located within the State Sales Tax

23 Boundary revised pursuant to Section 11-74.4-8a(9) of this Act.

24 (h) "Municipal Sales Tax Increment" means an amount equal

25 to the increase in the aggregate amount of taxes paid to a

26 municipality from the Local Government Tax Fund arising from

27 sales by retailers and servicemen within the redevelopment

28 project area or State Sales Tax Boundary, as the case may be,

29 for as long as the redevelopment project area or State Sales

30 Tax Boundary, as the case may be, exist over and above the

31 aggregate amount of taxes as certified by the Illinois

32 Department of Revenue and paid under the Municipal Retailers'

33 Occupation Tax Act and the Municipal Service Occupation Tax Act

34 by retailers and servicemen, on transactions at places of

35 business located in the redevelopment project area or State

36 Sales Tax Boundary, as the case may be, during the base year

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1 which shall be the calendar year immediately prior to the year

2 in which the municipality adopted tax increment allocation

3 financing. For purposes of computing the aggregate amount of

4 such taxes for base years occurring prior to 1985, the

5 Department of Revenue shall determine the Initial Sales Tax

6 Amounts for such taxes and deduct therefrom an amount equal to

7 4% of the aggregate amount of taxes per year for each year the

8 base year is prior to 1985, but not to exceed a total deduction

9 of 12%. The amount so determined shall be known as the

10 "Adjusted Initial Sales Tax Amounts". For purposes of

11 determining the Municipal Sales Tax Increment, the Department

12 of Revenue shall for each period subtract from the amount paid

13 to the municipality from the Local Government Tax Fund arising

14 from sales by retailers and servicemen on transactions located

15 in the redevelopment project area or the State Sales Tax

16 Boundary, as the case may be, the certified Initial Sales Tax

17 Amounts, the Adjusted Initial Sales Tax Amounts or the Revised

18 Initial Sales Tax Amounts for the Municipal Retailers'

19 Occupation Tax Act and the Municipal Service Occupation Tax

20 Act. For the State Fiscal Year 1989, this calculation shall be

21 made by utilizing the calendar year 1987 to determine the tax

22 amounts received. For the State Fiscal Year 1990, this

23 calculation shall be made by utilizing the period from January

24 1, 1988, until September 30, 1988, to determine the tax amounts

25 received from retailers and servicemen pursuant to the

26 Municipal Retailers' Occupation Tax and the Municipal Service

27 Occupation Tax Act, which shall have deducted therefrom

28 nine-twelfths of the certified Initial Sales Tax Amounts, the

29 Adjusted Initial Sales Tax Amounts or the Revised Initial Sales

30 Tax Amounts as appropriate. For the State Fiscal Year 1991,

31 this calculation shall be made by utilizing the period from

32 October 1, 1988, to June 30, 1989, to determine the tax amounts

33 received from retailers and servicemen pursuant to the

34 Municipal Retailers' Occupation Tax and the Municipal Service

35 Occupation Tax Act which shall have deducted therefrom

36 nine-twelfths of the certified Initial Sales Tax Amounts,

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1 Adjusted Initial Sales Tax Amounts or the Revised Initial Sales

2 Tax Amounts as appropriate. For every State Fiscal Year

3 thereafter, the applicable period shall be the 12 months

4 beginning July 1 and ending June 30 to determine the tax

5 amounts received which shall have deducted therefrom the

6 certified Initial Sales Tax Amounts, the Adjusted Initial Sales

7 Tax Amounts or the Revised Initial Sales Tax Amounts, as the

8 case may be.

9 (i) "Net State Sales Tax Increment" means the sum of the

10 following: (a) 80% of the first $100,000 of State Sales Tax

11 Increment annually generated within a State Sales Tax Boundary;

12 (b) 60% of the amount in excess of $100,000 but not exceeding

13 $500,000 of State Sales Tax Increment annually generated within

14 a State Sales Tax Boundary; and (c) 40% of all amounts in

15 excess of $500,000 of State Sales Tax Increment annually

16 generated within a State Sales Tax Boundary. If, however, a

17 municipality established a tax increment financing district in

18 a county with a population in excess of 3,000,000 before

19 January 1, 1986, and the municipality entered into a contract

20 or issued bonds after January 1, 1986, but before December 31,

21 1986, to finance redevelopment project costs within a State

22 Sales Tax Boundary, then the Net State Sales Tax Increment

23 means, for the fiscal years beginning July 1, 1990, and July 1,

24 1991, 100% of the State Sales Tax Increment annually generated

25 within a State Sales Tax Boundary; and notwithstanding any

26 other provision of this Act, for those fiscal years the

27 Department of Revenue shall distribute to those municipalities

28 100% of their Net State Sales Tax Increment before any

29 distribution to any other municipality and regardless of

30 whether or not those other municipalities will receive 100% of

31 their Net State Sales Tax Increment. For Fiscal Year 1999, and

32 every year thereafter until the year 2007, for any municipality

33 that has not entered into a contract or has not issued bonds

34 prior to June 1, 1988 to finance redevelopment project costs

35 within a State Sales Tax Boundary, the Net State Sales Tax

36 Increment shall be calculated as follows: By multiplying the

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1 Net State Sales Tax Increment by 90% in the State Fiscal Year

2 1999; 80% in the State Fiscal Year 2000; 70% in the State

3 Fiscal Year 2001; 60% in the State Fiscal Year 2002; 50% in the

4 State Fiscal Year 2003; 40% in the State Fiscal Year 2004; 30%

5 in the State Fiscal Year 2005; 20% in the State Fiscal Year

6 2006; and 10% in the State Fiscal Year 2007. No payment shall

7 be made for State Fiscal Year 2008 and thereafter.

8 Municipalities that issued bonds in connection with a

9 redevelopment project in a redevelopment project area within

10 the State Sales Tax Boundary prior to July 29, 1991, or that

11 entered into contracts in connection with a redevelopment

12 project in a redevelopment project area before June 1, 1988,

13 shall continue to receive their proportional share of the

14 Illinois Tax Increment Fund distribution until the date on

15 which the redevelopment project is completed or terminated. If,

16 however, a municipality that issued bonds in connection with a

17 redevelopment project in a redevelopment project area within

18 the State Sales Tax Boundary prior to July 29, 1991 retires the

19 bonds prior to June 30, 2007 or a municipality that entered

20 into contracts in connection with a redevelopment project in a

21 redevelopment project area before June 1, 1988 completes the

22 contracts prior to June 30, 2007, then so long as the

23 redevelopment project is not completed or is not terminated,

24 the Net State Sales Tax Increment shall be calculated,

25 beginning on the date on which the bonds are retired or the

26 contracts are completed, as follows: By multiplying the Net

27 State Sales Tax Increment by 60% in the State Fiscal Year 2002;

28 50% in the State Fiscal Year 2003; 40% in the State Fiscal Year

29 2004; 30% in the State Fiscal Year 2005; 20% in the State

30 Fiscal Year 2006; and 10% in the State Fiscal Year 2007. No

31 payment shall be made for State Fiscal Year 2008 and

32 thereafter. Refunding of any bonds issued prior to July 29,

33 1991, shall not alter the Net State Sales Tax Increment.

34 (j) "State Utility Tax Increment Amount" means an amount

35 equal to the aggregate increase in State electric and gas tax

36 charges imposed on owners and tenants, other than residential

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1 customers, of properties located within the redevelopment

2 project area under Section 9-222 of the Public Utilities Act,

3 over and above the aggregate of such charges as certified by

4 the Department of Revenue and paid by owners and tenants, other

5 than residential customers, of properties within the

6 redevelopment project area during the base year, which shall be

7 the calendar year immediately prior to the year of the adoption

8 of the ordinance authorizing tax increment allocation

9 financing.

10 (k) "Net State Utility Tax Increment" means the sum of the

11 following: (a) 80% of the first $100,000 of State Utility Tax

12 Increment annually generated by a redevelopment project area;

13 (b) 60% of the amount in excess of $100,000 but not exceeding

14 $500,000 of the State Utility Tax Increment annually generated

15 by a redevelopment project area; and (c) 40% of all amounts in

16 excess of $500,000 of State Utility Tax Increment annually

17 generated by a redevelopment project area. For the State Fiscal

18 Year 1999, and every year thereafter until the year 2007, for

19 any municipality that has not entered into a contract or has

20 not issued bonds prior to June 1, 1988 to finance redevelopment

21 project costs within a redevelopment project area, the Net

22 State Utility Tax Increment shall be calculated as follows: By

23 multiplying the Net State Utility Tax Increment by 90% in the

24 State Fiscal Year 1999; 80% in the State Fiscal Year 2000; 70%

25 in the State Fiscal Year 2001; 60% in the State Fiscal Year

26 2002; 50% in the State Fiscal Year 2003; 40% in the State

27 Fiscal Year 2004; 30% in the State Fiscal Year 2005; 20% in the

28 State Fiscal Year 2006; and 10% in the State Fiscal Year 2007.

29 No payment shall be made for the State Fiscal Year 2008 and

30 thereafter.

31 Municipalities that issue bonds in connection with the

32 redevelopment project during the period from June 1, 1988 until

33 3 years after the effective date of this Amendatory Act of 1988

34 shall receive the Net State Utility Tax Increment, subject to

35 appropriation, for 15 State Fiscal Years after the issuance of

36 such bonds. For the 16th through the 20th State Fiscal Years

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1 after issuance of the bonds, the Net State Utility Tax

2 Increment shall be calculated as follows: By multiplying the

3 Net State Utility Tax Increment by 90% in year 16; 80% in year

4 17; 70% in year 18; 60% in year 19; and 50% in year 20.

5 Refunding of any bonds issued prior to June 1, 1988, shall not

6 alter the revised Net State Utility Tax Increment payments set

7 forth above.

8 (l) "Obligations" mean bonds, loans, debentures, notes,

9 special certificates or other evidence of indebtedness issued

10 by the municipality to carry out a redevelopment project or to

11 refund outstanding obligations.

12 (m) "Payment in lieu of taxes" means those estimated tax

13 revenues from real property in a redevelopment project area

14 derived from real property that has been acquired by a

15 municipality which according to the redevelopment project or

16 plan is to be used for a private use which taxing districts

17 would have received had a municipality not acquired the real

18 property and adopted tax increment allocation financing and

19 which would result from levies made after the time of the

20 adoption of tax increment allocation financing to the time the

21 current equalized value of real property in the redevelopment

22 project area exceeds the total initial equalized value of real

23 property in said area.

24 (n) "Redevelopment plan" means the comprehensive program

25 of the municipality for development or redevelopment intended

26 by the payment of redevelopment project costs to reduce or

27 eliminate those conditions the existence of which qualified the

28 redevelopment project area as a "blighted area" or

29 "conservation area" or combination thereof or "industrial park

30 conservation area," and thereby to enhance the tax bases of the

31 taxing districts which extend into the redevelopment project

32 area. On and after November 1, 1999 (the effective date of

33 Public Act 91-478), no redevelopment plan may be approved or

34 amended that includes the development of vacant land (i) with a

35 golf course and related clubhouse and other facilities or (ii)

36 designated by federal, State, county, or municipal government

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1 as public land for outdoor recreational activities or for

2 nature preserves and used for that purpose within 5 years prior

3 to the adoption of the redevelopment plan. For the purpose of

4 this subsection, "recreational activities" is limited to mean

5 camping and hunting. Each redevelopment plan shall set forth in

6 writing the program to be undertaken to accomplish the

7 objectives and shall include but not be limited to:

8 (A) an itemized list of estimated redevelopment

9 project costs;

10 (B) evidence indicating that the redevelopment project

11 area on the whole has not been subject to growth and

12 development through investment by private enterprise;

13 (C) an assessment of any financial impact of the

14 redevelopment project area on or any increased demand for

15 services from any taxing district affected by the plan and

16 any program to address such financial impact or increased

17 demand;

18 (D) the sources of funds to pay costs;

19 (E) the nature and term of the obligations to be

20 issued;

21 (F) the most recent equalized assessed valuation of the

22 redevelopment project area;

23 (G) an estimate as to the equalized assessed valuation

24 after redevelopment and the general land uses to apply in

25 the redevelopment project area;

26 (H) a commitment to fair employment practices and an

27 affirmative action plan;

28 (I) if it concerns an industrial park conservation

29 area, the plan shall also include a general description of

30 any proposed developer, user and tenant of any property, a

31 description of the type, structure and general character of

32 the facilities to be developed, a description of the type,

33 class and number of new employees to be employed in the

34 operation of the facilities to be developed; and

35 (J) if property is to be annexed to the municipality,

36 the plan shall include the terms of the annexation

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1 agreement.

2 The provisions of items (B) and (C) of this subsection (n)

3 shall not apply to a municipality that before March 14, 1994

4 (the effective date of Public Act 88-537) had fixed, either by

5 its corporate authorities or by a commission designated under

6 subsection (k) of Section 11-74.4-4, a time and place for a

7 public hearing as required by subsection (a) of Section

8 11-74.4-5. No redevelopment plan shall be adopted unless a

9 municipality complies with all of the following requirements:

10 (1) The municipality finds that the redevelopment

11 project area on the whole has not been subject to growth

12 and development through investment by private enterprise

13 and would not reasonably be anticipated to be developed

14 without the adoption of the redevelopment plan.

15 (2) The municipality finds that the redevelopment plan

16 and project conform to the comprehensive plan for the

17 development of the municipality as a whole, or, for

18 municipalities with a population of 100,000 or more,

19 regardless of when the redevelopment plan and project was

20 adopted, the redevelopment plan and project either: (i)

21 conforms to the strategic economic development or

22 redevelopment plan issued by the designated planning

23 authority of the municipality, or (ii) includes land uses

24 that have been approved by the planning commission of the

25 municipality.

26 (3) The redevelopment plan establishes the estimated

27 dates of completion of the redevelopment project and

28 retirement of obligations issued to finance redevelopment

29 project costs. Those dates: shall not be later than

30 December 31 of the year in which the payment to the

31 municipal treasurer as provided in subsection (b) of

32 Section 11-74.4-8 of this Act is to be made with respect to

33 ad valorem taxes levied in the twenty-third calendar year

34 after the year in which the ordinance approving the

35 redevelopment project area is adopted if the ordinance was

36 adopted on or after January 15, 1981; shall not be later

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1 than December 31 of the year in which the payment to the

2 municipal treasurer as provided in subsection (b) of

3 Section 11-74.4-8 of this Act is to be made with respect to

4 ad valorem taxes levied in the thirty-third calendar year

5 after the year in which the ordinance approving the

6 redevelopment project area if the ordinance was adopted on

7 May 20, 1985 by the Village of Wheeling; and shall not be

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 thirty-fifth calendar year

12 after the year in which the ordinance approving the

13 redevelopment project area is adopted:

14 (A) if the ordinance was adopted before January 15,

15 1981, or

16 (B) if the ordinance was adopted in December 1983,

17 April 1984, July 1985, or December 1989, or

18 (C) if the ordinance was adopted in December 1987

19 and the redevelopment project is located within one

20 mile of Midway Airport, or

21 (D) if the ordinance was adopted before January 1,

22 1987 by a municipality in Mason County, or

23 (E) if the municipality is subject to the Local

24 Government Financial Planning and Supervision Act or

25 the Financially Distressed City Law, or

26 (F) if the ordinance was adopted in December 1984

27 by the Village of Rosemont, or

28 (G) if the ordinance was adopted on December 31,

29 1986 by a municipality located in Clinton County for

30 which at least $250,000 of tax increment bonds were

31 authorized on June 17, 1997, or if the ordinance was

32 adopted on December 31, 1986 by a municipality with a

33 population in 1990 of less than 3,600 that is located

34 in a county with a population in 1990 of less than

35 34,000 and for which at least $250,000 of tax increment

36 bonds were authorized on June 17, 1997, or

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1 (H) if the ordinance was adopted on October 5, 1982

2 by the City of Kankakee, or if the ordinance was

3 adopted on December 29, 1986 by East St. Louis, or

4 (I) if the ordinance was adopted on November 12,

5 1991 by the Village of Sauget, or

6 (J) if the ordinance was adopted on February 11,

7 1985 by the City of Rock Island, or

8 (K) if the ordinance was adopted before December

9 18, 1986 by the City of Moline, or

10 (L) if the ordinance was adopted in September 1988

11 by Sauk Village, or

12 (M) if the ordinance was adopted in October 1993 by

13 Sauk Village, or

14 (N) if the ordinance was adopted on December 29,

15 1986 by the City of Galva, or

16 (O) if the ordinance was adopted in March 1991 by

17 the City of Centreville, or

18 (P) if the ordinance was adopted on January 23,

19 1991 by the City of East St. Louis, or

20 (Q) if the ordinance was adopted on December 22,

21 1986 by the City of Aledo, or

22 (R) if the ordinance was adopted on February 5,

23 1990 by the City of Clinton, or

24 (S) if the ordinance was adopted on September 6,

25 1994 by the City of Freeport, or

26 (T) if the ordinance was adopted on December 22,

27 1986 by the City of Tuscola, or

28 (U) if the ordinance was adopted on December 23,

29 1986 by the City of Sparta, or

30 (V) if the ordinance was adopted on December 23,

31 1986 by the City of Beardstown, or

32 (W) if the ordinance was adopted on April 27, 1981,

33 October 21, 1985, or December 30, 1986 by the City of

34 Belleville, or

35 (X) if the ordinance was adopted on December 29,

36 1986 by the City of Collinsville, or

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1 (Y) if the ordinance was adopted on September 14,

2 1994 by the City of Alton, or

3 (Z) if the ordinance was adopted on November 11,

4 1996 by the City of Lexington, or

5 (AA) if the ordinance was adopted on November 5,

6 1984 by the City of LeRoy, or

7 (BB) if the ordinance was adopted on April 3, 1991

8 or June 3, 1992 by the City of Markham, or

9 (CC) if the ordinance was adopted on November 11,

10 1986 by the City of Pekin, or

11 (DD) if the ordinance was adopted on December 15,

12 1981 by the City of Champaign, or

13 (EE) if the ordinance was adopted on December 15,

14 1986 by the City of Urbana, or

15 (FF) if the ordinance was adopted on December 15,

16 1986 by the Village of Heyworth, or

17 (GG) if the ordinance was adopted on February 24,

18 1992 by the Village of Heyworth, or

19 (HH) if the ordinance was adopted on March 16, 1995

20 by the Village of Heyworth, or

21 (II) if the ordinance was adopted on December 23,

22 1986 by the Town of Cicero, or

23 (JJ) if the ordinance was adopted on December 30,

24 1986 by the City of Effingham, or

25 (KK) if the ordinance was adopted on May 9, 1991 by

26 the Village of Tilton, or

27 (LL) if the ordinance was adopted on October 20,

28 1986 by the City of Elmhurst, or

29 (MM) if the ordinance was adopted on January 19,

30 1988 by the City of Waukegan, or

31 (NN) if the ordinance was adopted on September 21,

32 1998 by the City of Waukegan, or

33 (OO) if the ordinance was adopted on December 31,

34 1986 by the City of Sullivan, or

35 (PP) if the ordinance was adopted on December 23,

36 1991 by the City of Sullivan, or ~~.~~

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1 (QQ)~~(OO)~~ if the ordinance was adopted on December

2 31, 1986 by the City of Oglesby, or ~~.~~

3 (RR)~~(OO)~~ if the ordinance was adopted on July 28,

4 1987 by the City of Marion, or

5 (SS)~~(PP)~~ if the ordinance was adopted on April 23,

6 1990 by the City of Marion, or ~~.~~

7 (TT)~~(OO)~~ if the ordinance was adopted on August

8 20, 1985 by the Village of Mount Prospect, or ~~.~~

9 (UU)~~(OO)~~ if the ordinance was adopted on February

10 2, 1998 by the Village of Woodhull.

11 However, for redevelopment project areas for which

12 bonds were issued before July 29, 1991, or for which

13 contracts were entered into before June 1, 1988, in

14 connection with a redevelopment project in the area within

15 the State Sales Tax Boundary, the estimated dates of

16 completion of the redevelopment project and retirement of

17 obligations to finance redevelopment project costs may be

18 extended by municipal ordinance to December 31, 2013. The

19 termination procedures of subsection (b) of Section

20 11-74.4-8 are not required for these redevelopment project

21 areas in 2009 but are required in 2013. The extension

22 allowed by this amendatory Act of 1993 shall not apply to

23 real property tax increment allocation financing under

24 Section 11-74.4-8.

25 A municipality may by municipal ordinance amend an

26 existing redevelopment plan to conform to this paragraph

27 (3) as amended by Public Act 91-478, which municipal

28 ordinance may be adopted without further hearing or notice

29 and without complying with the procedures provided in this

30 Act pertaining to an amendment to or the initial approval

31 of a redevelopment plan and project and designation of a

32 redevelopment project area.

33 Those dates, for purposes of real property tax

34 increment allocation financing pursuant to Section

35 11-74.4-8 only, shall be not more than 35 years for

36 redevelopment project areas that were adopted on or after

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1 December 16, 1986 and for which at least $8 million worth

2 of municipal bonds were authorized on or after December 19,

3 1989 but before January 1, 1990; provided that the

4 municipality elects to extend the life of the redevelopment

5 project area to 35 years by the adoption of an ordinance

6 after at least 14 but not more than 30 days' written notice

7 to the taxing bodies, that would otherwise constitute the

8 joint review board for the redevelopment project area,

9 before the adoption of the ordinance.

10 Those dates, for purposes of real property tax

11 increment allocation financing pursuant to Section

12 11-74.4-8 only, shall be not more than 35 years for

13 redevelopment project areas that were established on or

14 after December 1, 1981 but before January 1, 1982 and for

15 which at least $1,500,000 worth of tax increment revenue

16 bonds were authorized on or after September 30, 1990 but

17 before July 1, 1991; provided that the municipality elects

18 to extend the life of the redevelopment project area to 35

19 years by the adoption of an ordinance after at least 14 but

20 not more than 30 days' written notice to the taxing bodies,

21 that would otherwise constitute the joint review board for

22 the redevelopment project area, before the adoption of the

23 ordinance.

24 (3.5) The municipality finds, in the case of an

25 industrial park conservation area, also that the

26 municipality is a labor surplus municipality and that the

27 implementation of the redevelopment plan will reduce

28 unemployment, create new jobs and by the provision of new

29 facilities enhance the tax base of the taxing districts

30 that extend into the redevelopment project area.

31 (4) If any incremental revenues are being utilized

32 under Section 8(a)(1) or 8(a)(2) of this Act in

33 redevelopment project areas approved by ordinance after

34 January 1, 1986, the municipality finds: (a) that the

35 redevelopment project area would not reasonably be

36 developed without the use of such incremental revenues, and

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1 (b) that such incremental revenues will be exclusively

2 utilized for the development of the redevelopment project

3 area.

4 (5) If the redevelopment plan will not result in

5 displacement of residents from 10 or more inhabited

6 residential units, and the municipality certifies in the

7 plan that such displacement will not result from the plan,

8 a housing impact study need not be performed. If, however,

9 the redevelopment plan would result in the displacement of

10 residents from 10 or more inhabited residential units, or

11 if the redevelopment project area contains 75 or more

12 inhabited residential units and no certification is made,

13 then the municipality shall prepare, as part of the

14 separate feasibility report required by subsection (a) of

15 Section 11-74.4-5, a housing impact study.

16 Part I of the housing impact study shall include (i)

17 data as to whether the residential units are single family

18 or multi-family units, (ii) the number and type of rooms

19 within the units, if that information is available, (iii)

20 whether the units are inhabited or uninhabited, as

21 determined not less than 45 days before the date that the

22 ordinance or resolution required by subsection (a) of

23 Section 11-74.4-5 is passed, and (iv) data as to the racial

24 and ethnic composition of the residents in the inhabited

25 residential units. The data requirement as to the racial

26 and ethnic composition of the residents in the inhabited

27 residential units shall be deemed to be fully satisfied by

28 data from the most recent federal census.

29 Part II of the housing impact study shall identify the

30 inhabited residential units in the proposed redevelopment

31 project area that are to be or may be removed. If inhabited

32 residential units are to be removed, then the housing

33 impact study shall identify (i) the number and location of

34 those units that will or may be removed, (ii) the

35 municipality's plans for relocation assistance for those

36 residents in the proposed redevelopment project area whose

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1 residences are to be removed, (iii) the availability of

2 replacement housing for those residents whose residences

3 are to be removed, and shall identify the type, location,

4 and cost of the housing, and (iv) the type and extent of

5 relocation assistance to be provided.

6 (6) On and after November 1, 1999, the housing impact

7 study required by paragraph (5) shall be incorporated in

8 the redevelopment plan for the redevelopment project area.

9 (7) On and after November 1, 1999, no redevelopment

10 plan shall be adopted, nor an existing plan amended, nor

11 shall residential housing that is occupied by households of

12 low-income and very low-income persons in currently

13 existing redevelopment project areas be removed after

14 November 1, 1999 unless the redevelopment plan provides,

15 with respect to inhabited housing units that are to be

16 removed for households of low-income and very low-income

17 persons, affordable housing and relocation assistance not

18 less than that which would be provided under the federal

19 Uniform Relocation Assistance and Real Property

20 Acquisition Policies Act of 1970 and the regulations under

21 that Act, including the eligibility criteria. Affordable

22 housing may be either existing or newly constructed

23 housing. For purposes of this paragraph (7), "low-income

24 households", "very low-income households", and "affordable

25 housing" have the meanings set forth in the Illinois

26 Affordable Housing Act. The municipality shall make a good

27 faith effort to ensure that this affordable housing is

28 located in or near the redevelopment project area within

29 the municipality.

30 (8) On and after November 1, 1999, if, after the

31 adoption of the redevelopment plan for the redevelopment

32 project area, any municipality desires to amend its

33 redevelopment plan to remove more inhabited residential

34 units than specified in its original redevelopment plan,

35 that change shall be made in accordance with the procedures

36 in subsection (c) of Section 11-74.4-5.

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1 (9) For redevelopment project areas designated prior

2 to November 1, 1999, the redevelopment plan may be amended

3 without further joint review board meeting or hearing,

4 provided that the municipality shall give notice of any

5 such changes by mail to each affected taxing district and

6 registrant on the interested party registry, to authorize

7 the municipality to expend tax increment revenues for

8 redevelopment project costs defined by paragraphs (5) and

9 (7.5), subparagraphs (E) and (F) of paragraph (11), and

10 paragraph (11.5) of subsection (q) of Section 11-74.4-3, so

11 long as the changes do not increase the total estimated

12 redevelopment project costs set out in the redevelopment

13 plan by more than 5% after adjustment for inflation from

14 the date the plan was adopted.

15 (o) "Redevelopment project" means any public and private

16 development project in furtherance of the objectives of a

17 redevelopment plan. On and after November 1, 1999 (the

18 effective date of Public Act 91-478), no redevelopment plan may

19 be approved or amended that includes the development of vacant

20 land (i) with a golf course and related clubhouse and other

21 facilities or (ii) designated by federal, State, county, or

22 municipal government as public land for outdoor recreational

23 activities or for nature preserves and used for that purpose

24 within 5 years prior to the adoption of the redevelopment plan.

25 For the purpose of this subsection, "recreational activities"

26 is limited to mean camping and hunting.

27 (p) "Redevelopment project area" means an area designated

28 by the municipality, which is not less in the aggregate than 1

29 1/2 acres and in respect to which the municipality has made a

30 finding that there exist conditions which cause the area to be

31 classified as an industrial park conservation area or a

32 blighted area or a conservation area, or a combination of both

33 blighted areas and conservation areas.

34 (q) "Redevelopment project costs" mean and include the sum

35 total of all reasonable or necessary costs incurred or

36 estimated to be incurred, and any such costs incidental to a

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1 redevelopment plan and a redevelopment project. Such costs

2 include, without limitation, the following:

3 (1) Costs of studies, surveys, development of plans,

4 and specifications, implementation and administration of

5 the redevelopment plan including but not limited to staff

6 and professional service costs for architectural,

7 engineering, legal, financial, planning or other services,

8 provided however that no charges for professional services

9 may be based on a percentage of the tax increment

10 collected; except that on and after November 1, 1999 (the

11 effective date of Public Act 91-478), no contracts for

12 professional services, excluding architectural and

13 engineering services, may be entered into if the terms of

14 the contract extend beyond a period of 3 years. In

15 addition, "redevelopment project costs" shall not include

16 lobbying expenses. After consultation with the

17 municipality, each tax increment consultant or advisor to a

18 municipality that plans to designate or has designated a

19 redevelopment project area shall inform the municipality

20 in writing of any contracts that the consultant or advisor

21 has entered into with entities or individuals that have

22 received, or are receiving, payments financed by tax

23 increment revenues produced by the redevelopment project

24 area with respect to which the consultant or advisor has

25 performed, or will be performing, service for the

26 municipality. This requirement shall be satisfied by the

27 consultant or advisor before the commencement of services

28 for the municipality and thereafter whenever any other

29 contracts with those individuals or entities are executed

30 by the consultant or advisor;

31 (1.5) After July 1, 1999, annual administrative costs

32 shall not include general overhead or administrative costs

33 of the municipality that would still have been incurred by

34 the municipality if the municipality had not designated a

35 redevelopment project area or approved a redevelopment

36 plan;

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1 (1.6) The cost of marketing sites within the

2 redevelopment project area to prospective businesses,

3 developers, and investors;

4 (2) Property assembly costs, including but not limited

5 to acquisition of land and other property, real or

6 personal, or rights or interests therein, demolition of

7 buildings, site preparation, site improvements that serve

8 as an engineered barrier addressing ground level or below

9 ground environmental contamination, including, but not

10 limited to parking lots and other concrete or asphalt

11 barriers, and the clearing and grading of land;

12 (3) Costs of rehabilitation, reconstruction or repair

13 or remodeling of existing public or private buildings,

14 fixtures, and leasehold improvements; and the cost of

15 replacing an existing public building if pursuant to the

16 implementation of a redevelopment project the existing

17 public building is to be demolished to use the site for

18 private investment or devoted to a different use requiring

19 private investment;

20 (4) Costs of the construction of public works or

21 improvements, except that on and after November 1, 1999,

22 redevelopment project costs shall not include the cost of

23 constructing a new municipal public building principally

24 used to provide offices, storage space, or conference

25 facilities or vehicle storage, maintenance, or repair for

26 administrative, public safety, or public works personnel

27 and that is not intended to replace an existing public

28 building as provided under paragraph (3) of subsection (q)

29 of Section 11-74.4-3 unless either (i) the construction of

30 the new municipal building implements a redevelopment

31 project that was included in a redevelopment plan that was

32 adopted by the municipality prior to November 1, 1999 or

33 (ii) the municipality makes a reasonable determination in

34 the redevelopment plan, supported by information that

35 provides the basis for that determination, that the new

36 municipal building is required to meet an increase in the

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1 need for public safety purposes anticipated to result from

2 the implementation of the redevelopment plan;

3 (5) Costs of job training and retraining projects,

4 including the cost of "welfare to work" programs

5 implemented by businesses located within the redevelopment

6 project area;

7 (6) Financing costs, including but not limited to all

8 necessary and incidental expenses related to the issuance

9 of obligations and which may include payment of interest on

10 any obligations issued hereunder including interest

11 accruing during the estimated period of construction of any

12 redevelopment project for which such obligations are

13 issued and for not exceeding 36 months thereafter and

14 including reasonable reserves related thereto;

15 (7) To the extent the municipality by written agreement

16 accepts and approves the same, all or a portion of a taxing

17 district's capital costs resulting from the redevelopment

18 project necessarily incurred or to be incurred within a

19 taxing district in furtherance of the objectives of the

20 redevelopment plan and project.

21 (7.5) For redevelopment project areas designated (or

22 redevelopment project areas amended to add or increase the

23 number of tax-increment-financing assisted housing units)

24 on or after November 1, 1999, an elementary, secondary, or

25 unit school district's increased costs attributable to

26 assisted housing units located within the redevelopment

27 project area for which the developer or redeveloper

28 receives financial assistance through an agreement with

29 the municipality or because the municipality incurs the

30 cost of necessary infrastructure improvements within the

31 boundaries of the assisted housing sites necessary for the

32 completion of that housing as authorized by this Act, and

33 which costs shall be paid by the municipality from the

34 Special Tax Allocation Fund when the tax increment revenue

35 is received as a result of the assisted housing units and

36 shall be calculated annually as follows:

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1 (A) for foundation districts, excluding any school

2 district in a municipality with a population in excess

3 of 1,000,000, by multiplying the district's increase

4 in attendance resulting from the net increase in new

5 students enrolled in that school district who reside in

6 housing units within the redevelopment project area

7 that have received financial assistance through an

8 agreement with the municipality or because the

9 municipality incurs the cost of necessary

10 infrastructure improvements within the boundaries of

11 the housing sites necessary for the completion of that

12 housing as authorized by this Act since the designation

13 of the redevelopment project area by the most recently

14 available per capita tuition cost as defined in Section

15 10-20.12a of the School Code less any increase in

16 general State aid as defined in Section 18-8.05 of the

17 School Code attributable to these added new students

18 subject to the following annual limitations:

19 (i) for unit school districts with a district

20 average 1995-96 Per Capita Tuition Charge of less

21 than $5,900, no more than 25% of the total amount

22 of property tax increment revenue produced by

23 those housing units that have received tax

24 increment finance assistance under this Act;

25 (ii) for elementary school districts with a

26 district average 1995-96 Per Capita Tuition Charge

27 of less than $5,900, no more than 17% of the total

28 amount of property tax increment revenue produced

29 by those housing units that have received tax

30 increment finance assistance under this Act; and

31 (iii) for secondary school districts with a

32 district average 1995-96 Per Capita Tuition Charge

33 of less than $5,900, no more than 8% of the total

34 amount of property tax increment revenue produced

35 by those housing units that have received tax

36 increment finance assistance under this Act.

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1 (B) For alternate method districts, flat grant

2 districts, and foundation districts with a district

3 average 1995-96 Per Capita Tuition Charge equal to or

4 more than $5,900, excluding any school district with a

5 population in excess of 1,000,000, by multiplying the

6 district's increase in attendance resulting from the

7 net increase in new students enrolled in that school

8 district who reside in housing units within the

9 redevelopment project area that have received

10 financial assistance through an agreement with the

11 municipality or because the municipality incurs the

12 cost of necessary infrastructure improvements within

13 the boundaries of the housing sites necessary for the

14 completion of that housing as authorized by this Act

15 since the designation of the redevelopment project

16 area by the most recently available per capita tuition

17 cost as defined in Section 10-20.12a of the School Code

18 less any increase in general state aid as defined in

19 Section 18-8.05 of the School Code attributable to

20 these added new students subject to the following

21 annual limitations:

22 (i) for unit school districts, no more than 40%

23 of the total amount of property tax increment

24 revenue produced by those housing units that have

25 received tax increment finance assistance under

26 this Act;

27 (ii) for elementary school districts, no more

28 than 27% of the total amount of property tax

29 increment revenue produced by those housing units

30 that have received tax increment finance

31 assistance under this Act; and

32 (iii) for secondary school districts, no more

33 than 13% of the total amount of property tax

34 increment revenue produced by those housing units

35 that have received tax increment finance

36 assistance under this Act.

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1 (C) For any school district in a municipality with

2 a population in excess of 1,000,000, the following

3 restrictions shall apply to the reimbursement of

4 increased costs under this paragraph (7.5):

5 (i) no increased costs shall be reimbursed

6 unless the school district certifies that each of

7 the schools affected by the assisted housing

8 project is at or over its student capacity;

9 (ii) the amount reimbursable shall be reduced

10 by the value of any land donated to the school

11 district by the municipality or developer, and by

12 the value of any physical improvements made to the

13 schools by the municipality or developer; and

14 (iii) the amount reimbursed may not affect

15 amounts otherwise obligated by the terms of any

16 bonds, notes, or other funding instruments, or the

17 terms of any redevelopment agreement.

18 Any school district seeking payment under this

19 paragraph (7.5) shall, after July 1 and before

20 September 30 of each year, provide the municipality

21 with reasonable evidence to support its claim for

22 reimbursement before the municipality shall be

23 required to approve or make the payment to the school

24 district. If the school district fails to provide the

25 information during this period in any year, it shall

26 forfeit any claim to reimbursement for that year.

27 School districts may adopt a resolution waiving the

28 right to all or a portion of the reimbursement

29 otherwise required by this paragraph (7.5). By

30 acceptance of this reimbursement the school district

31 waives the right to directly or indirectly set aside,

32 modify, or contest in any manner the establishment of

33 the redevelopment project area or projects;

34 (7.7) For redevelopment project areas designated (or

35 redevelopment project areas amended to add or increase the

36 number of tax-increment-financing assisted housing units)

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1 on or after January 1, 2005 (the effective date of Public

2 Act 93-961), a public library district's increased costs

3 attributable to assisted housing units located within the

4 redevelopment project area for which the developer or

5 redeveloper receives financial assistance through an

6 agreement with the municipality or because the

7 municipality incurs the cost of necessary infrastructure

8 improvements within the boundaries of the assisted housing

9 sites necessary for the completion of that housing as

10 authorized by this Act shall be paid to the library

11 district by the municipality from the Special Tax

12 Allocation Fund when the tax increment revenue is received

13 as a result of the assisted housing units. This paragraph

14 (7.7) applies only if (i) the library district is located

15 in a county that is subject to the Property Tax Extension

16 Limitation Law or (ii) the library district is not located

17 in a county that is subject to the Property Tax Extension

18 Limitation Law but the district is prohibited by any other

19 law from increasing its tax levy rate without a prior voter

20 referendum.

21 The amount paid to a library district under this

22 paragraph (7.7) shall be calculated by multiplying (i) the

23 net increase in the number of persons eligible to obtain a

24 library card in that district who reside in housing units

25 within the redevelopment project area that have received

26 financial assistance through an agreement with the

27 municipality or because the municipality incurs the cost of

28 necessary infrastructure improvements within the

29 boundaries of the housing sites necessary for the

30 completion of that housing as authorized by this Act since

31 the designation of the redevelopment project area by (ii)

32 the per-patron cost of providing library services so long

33 as it does not exceed $120. The per-patron cost shall be

34 the Total Operating Expenditures Per Capita as stated in

35 the most recent Illinois Public Library Statistics

36 produced by the Library Research Center at the University

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1 of Illinois. The municipality may deduct from the amount

2 that it must pay to a library district under this paragraph

3 any amount that it has voluntarily paid to the library

4 district from the tax increment revenue. The amount paid to

5 a library district under this paragraph (7.7) shall be no

6 more than 2% of the amount produced by the assisted housing

7 units and deposited into the Special Tax Allocation Fund.

8 A library district is not eligible for any payment

9 under this paragraph (7.7) unless the library district has

10 experienced an increase in the number of patrons from the

11 municipality that created the tax-increment-financing

12 district since the designation of the redevelopment

13 project area.

14 Any library district seeking payment under this

15 paragraph (7.7) shall, after July 1 and before September 30

16 of each year, provide the municipality with convincing

17 evidence to support its claim for reimbursement before the

18 municipality shall be required to approve or make the

19 payment to the library district. If the library district

20 fails to provide the information during this period in any

21 year, it shall forfeit any claim to reimbursement for that

22 year. Library districts may adopt a resolution waiving the

23 right to all or a portion of the reimbursement otherwise

24 required by this paragraph (7.7). By acceptance of such

25 reimbursement, the library district shall forfeit any

26 right to directly or indirectly set aside, modify, or

27 contest in any manner whatsoever the establishment of the

28 redevelopment project area or projects;

29 (8) Relocation costs to the extent that a municipality

30 determines that relocation costs shall be paid or is

31 required to make payment of relocation costs by federal or

32 State law or in order to satisfy subparagraph (7) of

33 subsection (n). In all eminent domain actions in which a

34 property owner is displaced, the displacing entity must pay

35 the owner all of the following: ~~;~~

36 (A) The actual reasonable relocation expenses of

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1 the owner and the owner's family and the owner's

2 business, farm operation, or personal property.

3 (B) The amount of any direct losses of tangible

4 personal property incurred by the owner as a result of

5 relocating or discontinuing the owner's business or

6 farm operation, but not to exceed an amount equal to

7 the reasonable expenses that would have been required

8 to relocate the property.

9 (C) The actual reasonable expenses incurred by the

10 owner in searching for a replacement business or farm

11 operation.

12 (D) The actual reasonable expenses of the owner

13 that were necessary for the owner to reestablish the

14 owner's displaced farm operation, nonprofit

15 organization, or small business, but not to exceed

16 $10,000;

17 (9) Payment in lieu of taxes;

18 (10) Costs of job training, retraining, advanced

19 vocational education or career education, including but

20 not limited to courses in occupational, semi-technical or

21 technical fields leading directly to employment, incurred

22 by one or more taxing districts, provided that such costs

23 (i) are related to the establishment and maintenance of

24 additional job training, advanced vocational education or

25 career education programs for persons employed or to be

26 employed by employers located in a redevelopment project

27 area; and (ii) when incurred by a taxing district or taxing

28 districts other than the municipality, are set forth in a

29 written agreement by or among the municipality and the

30 taxing district or taxing districts, which agreement

31 describes the program to be undertaken, including but not

32 limited to the number of employees to be trained, a

33 description of the training and services to be provided,

34 the number and type of positions available or to be

35 available, itemized costs of the program and sources of

36 funds to pay for the same, and the term of the agreement.

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1 Such costs include, specifically, the payment by community

2 college districts of costs pursuant to Sections 3-37, 3-38,

3 3-40 and 3-40.1 of the Public Community College Act and by

4 school districts of costs pursuant to Sections 10-22.20a

5 and 10-23.3a of The School Code;

6 (11) Interest cost incurred by a redeveloper related to

7 the construction, renovation or rehabilitation of a

8 redevelopment project provided that:

9 (A) such costs are to be paid directly from the

10 special tax allocation fund established pursuant to

11 this Act;

12 (B) such payments in any one year may not exceed

13 30% of the annual interest costs incurred by the

14 redeveloper with regard to the redevelopment project

15 during that year;

16 (C) if there are not sufficient funds available in

17 the special tax allocation fund to make the payment

18 pursuant to this paragraph (11) then the amounts so due

19 shall accrue and be payable when sufficient funds are

20 available in the special tax allocation fund;

21 (D) the total of such interest payments paid

22 pursuant to this Act may not exceed 30% of the total

23 (i) cost paid or incurred by the redeveloper for the

24 redevelopment project plus (ii) redevelopment project

25 costs excluding any property assembly costs and any

26 relocation costs incurred by a municipality pursuant

27 to this Act; and

28 (E) the cost limits set forth in subparagraphs (B)

29 and (D) of paragraph (11) shall be modified for the

30 financing of rehabilitated or new housing units for

31 low-income households and very low-income households,

32 as defined in Section 3 of the Illinois Affordable

33 Housing Act. The percentage of 75% shall be substituted

34 for 30% in subparagraphs (B) and (D) of paragraph (11).

35 (F) Instead of the eligible costs provided by

36 subparagraphs (B) and (D) of paragraph (11), as

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1 modified by this subparagraph, and notwithstanding any

2 other provisions of this Act to the contrary, the

3 municipality may pay from tax increment revenues up to

4 50% of the cost of construction of new housing units to

5 be occupied by low-income households and very

6 low-income households as defined in Section 3 of the

7 Illinois Affordable Housing Act. The cost of

8 construction of those units may be derived from the

9 proceeds of bonds issued by the municipality under this

10 Act or other constitutional or statutory authority or

11 from other sources of municipal revenue that may be

12 reimbursed from tax increment revenues or the proceeds

13 of bonds issued to finance the construction of that

14 housing.

15 The eligible costs provided under this

16 subparagraph (F) of paragraph (11) shall be an eligible

17 cost for the construction, renovation, and

18 rehabilitation of all low and very low-income housing

19 units, as defined in Section 3 of the Illinois

20 Affordable Housing Act, within the redevelopment

21 project area. If the low and very low-income units are

22 part of a residential redevelopment project that

23 includes units not affordable to low and very

24 low-income households, only the low and very

25 low-income units shall be eligible for benefits under

26 subparagraph (F) of paragraph (11). The standards for

27 maintaining the occupancy by low-income households and

28 very low-income households, as defined in Section 3 of

29 the Illinois Affordable Housing Act, of those units

30 constructed with eligible costs made available under

31 the provisions of this subparagraph (F) of paragraph

32 (11) shall be established by guidelines adopted by the

33 municipality. The responsibility for annually

34 documenting the initial occupancy of the units by

35 low-income households and very low-income households,

36 as defined in Section 3 of the Illinois Affordable

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1 Housing Act, shall be that of the then current owner of

2 the property. For ownership units, the guidelines will

3 provide, at a minimum, for a reasonable recapture of

4 funds, or other appropriate methods designed to

5 preserve the original affordability of the ownership

6 units. For rental units, the guidelines will provide,

7 at a minimum, for the affordability of rent to low and

8 very low-income households. As units become available,

9 they shall be rented to income-eligible tenants. The

10 municipality may modify these guidelines from time to

11 time; the guidelines, however, shall be in effect for

12 as long as tax increment revenue is being used to pay

13 for costs associated with the units or for the

14 retirement of bonds issued to finance the units or for

15 the life of the redevelopment project area, whichever

16 is later.

17 (11.5) If the redevelopment project area is located

18 within a municipality with a population of more than

19 100,000, the cost of day care services for children of

20 employees from low-income families working for businesses

21 located within the redevelopment project area and all or a

22 portion of the cost of operation of day care centers

23 established by redevelopment project area businesses to

24 serve employees from low-income families working in

25 businesses located in the redevelopment project area. For

26 the purposes of this paragraph, "low-income families"

27 means families whose annual income does not exceed 80% of

28 the municipal, county, or regional median income, adjusted

29 for family size, as the annual income and municipal,

30 county, or regional median income are determined from time

31 to time by the United States Department of Housing and

32 Urban Development.

33 (12) Unless explicitly stated herein the cost of

34 construction of new privately-owned buildings shall not be

35 an eligible redevelopment project cost.

36 (13) After November 1, 1999 (the effective date of

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1 Public Act 91-478), none of the redevelopment project costs

2 enumerated in this subsection shall be eligible

3 redevelopment project costs if those costs would provide

4 direct financial support to a retail entity initiating

5 operations in the redevelopment project area while

6 terminating operations at another Illinois location within

7 10 miles of the redevelopment project area but outside the

8 boundaries of the redevelopment project area municipality.

9 For purposes of this paragraph, termination means a closing

10 of a retail operation that is directly related to the

11 opening of the same operation or like retail entity owned

12 or operated by more than 50% of the original ownership in a

13 redevelopment project area, but it does not mean closing an

14 operation for reasons beyond the control of the retail

15 entity, as documented by the retail entity, subject to a

16 reasonable finding by the municipality that the current

17 location contained inadequate space, had become

18 economically obsolete, or was no longer a viable location

19 for the retailer or serviceman.

20 If a special service area has been established pursuant to

21 the Special Service Area Tax Act or Special Service Area Tax

22 Law, then any tax increment revenues derived from the tax

23 imposed pursuant to the Special Service Area Tax Act or Special

24 Service Area Tax Law may be used within the redevelopment

25 project area for the purposes permitted by that Act or Law as

26 well as the purposes permitted by this Act.

27 (r) "State Sales Tax Boundary" means the redevelopment

28 project area or the amended redevelopment project area

29 boundaries which are determined pursuant to subsection (9) of

30 Section 11-74.4-8a of this Act. The Department of Revenue shall

31 certify pursuant to subsection (9) of Section 11-74.4-8a the

32 appropriate boundaries eligible for the determination of State

33 Sales Tax Increment.

34 (s) "State Sales Tax Increment" means an amount equal to

35 the increase in the aggregate amount of taxes paid by retailers

36 and servicemen, other than retailers and servicemen subject to

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1 the Public Utilities Act, on transactions at places of business

2 located within a State Sales Tax Boundary pursuant to the

3 Retailers' Occupation Tax Act, the Use Tax Act, the Service Use

4 Tax Act, and the Service Occupation Tax Act, except such

5 portion of such increase that is paid into the State and Local

6 Sales Tax Reform Fund, the Local Government Distributive Fund,

7 the Local Government Tax Fund and the County and Mass Transit

8 District Fund, for as long as State participation exists, over

9 and above the Initial Sales Tax Amounts, Adjusted Initial Sales

10 Tax Amounts or the Revised Initial Sales Tax Amounts for such

11 taxes as certified by the Department of Revenue and paid under

12 those Acts by retailers and servicemen on transactions at

13 places of business located within the State Sales Tax Boundary

14 during the base year which shall be the calendar year

15 immediately prior to the year in which the municipality adopted

16 tax increment allocation financing, less 3.0% of such amounts

17 generated under the Retailers' Occupation Tax Act, Use Tax Act

18 and Service Use Tax Act and the Service Occupation Tax Act,

19 which sum shall be appropriated to the Department of Revenue to

20 cover its costs of administering and enforcing this Section.

21 For purposes of computing the aggregate amount of such taxes

22 for base years occurring prior to 1985, the Department of

23 Revenue shall compute the Initial Sales Tax Amount for such

24 taxes and deduct therefrom an amount equal to 4% of the

25 aggregate amount of taxes per year for each year the base year

26 is prior to 1985, but not to exceed a total deduction of 12%.

27 The amount so determined shall be known as the "Adjusted

28 Initial Sales Tax Amount". For purposes of determining the

29 State Sales Tax Increment the Department of Revenue shall for

30 each period subtract from the tax amounts received from

31 retailers and servicemen on transactions located in the State

32 Sales Tax Boundary, the certified Initial Sales Tax Amounts,

33 Adjusted Initial Sales Tax Amounts or Revised Initial Sales Tax

34 Amounts for the Retailers' Occupation Tax Act, the Use Tax Act,

35 the Service Use Tax Act and the Service Occupation Tax Act. For

36 the State Fiscal Year 1989 this calculation shall be made by

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1 utilizing the calendar year 1987 to determine the tax amounts

2 received. For the State Fiscal Year 1990, this calculation

3 shall be made by utilizing the period from January 1, 1988,

4 until September 30, 1988, to determine the tax amounts received

5 from retailers and servicemen, which shall have deducted

6 therefrom nine-twelfths of the certified Initial Sales Tax

7 Amounts, Adjusted Initial Sales Tax Amounts or the Revised

8 Initial Sales Tax Amounts as appropriate. For the State Fiscal

9 Year 1991, this calculation shall be made by utilizing the

10 period from October 1, 1988, until June 30, 1989, to determine

11 the tax amounts received from retailers and servicemen, which

12 shall have deducted therefrom nine-twelfths of the certified

13 Initial State Sales Tax Amounts, Adjusted Initial Sales Tax

14 Amounts or the Revised Initial Sales Tax Amounts as

15 appropriate. For every State Fiscal Year thereafter, the

16 applicable period shall be the 12 months beginning July 1 and

17 ending on June 30, to determine the tax amounts received which

18 shall have deducted therefrom the certified Initial Sales Tax

19 Amounts, Adjusted Initial Sales Tax Amounts or the Revised

20 Initial Sales Tax Amounts. Municipalities intending to receive

21 a distribution of State Sales Tax Increment must report a list

22 of retailers to the Department of Revenue by October 31, 1988

23 and by July 31, of each year thereafter.

24 (t) "Taxing districts" means counties, townships, cities

25 and incorporated towns and villages, school, road, park,

26 sanitary, mosquito abatement, forest preserve, public health,

27 fire protection, river conservancy, tuberculosis sanitarium

28 and any other municipal corporations or districts with the

29 power to levy taxes.

30 (u) "Taxing districts' capital costs" means those costs of

31 taxing districts for capital improvements that are found by the

32 municipal corporate authorities to be necessary and directly

33 result from the redevelopment project.

34 (v) As used in subsection (a) of Section 11-74.4-3 of this

35 Act, "vacant land" means any parcel or combination of parcels

36 of real property without industrial, commercial, and

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1 residential buildings which has not been used for commercial

2 agricultural purposes within 5 years prior to the designation

3 of the redevelopment project area, unless the parcel is

4 included in an industrial park conservation area or the parcel

5 has been subdivided; provided that if the parcel was part of a

6 larger tract that has been divided into 3 or more smaller

7 tracts that were accepted for recording during the period from

8 1950 to 1990, then the parcel shall be deemed to have been

9 subdivided, and all proceedings and actions of the municipality

10 taken in that connection with respect to any previously

11 approved or designated redevelopment project area or amended

12 redevelopment project area are hereby validated and hereby

13 declared to be legally sufficient for all purposes of this Act.

14 For purposes of this Section and only for land subject to the

15 subdivision requirements of the Plat Act, land is subdivided

16 when the original plat of the proposed Redevelopment Project

17 Area or relevant portion thereof has been properly certified,

18 acknowledged, approved, and recorded or filed in accordance

19 with the Plat Act and a preliminary plat, if any, for any

20 subsequent phases of the proposed Redevelopment Project Area or

21 relevant portion thereof has been properly approved and filed

22 in accordance with the applicable ordinance of the

23 municipality.

24 (w) "Annual Total Increment" means the sum of each

25 municipality's annual Net Sales Tax Increment and each

26 municipality's annual Net Utility Tax Increment. The ratio of

27 the Annual Total Increment of each municipality to the Annual

28 Total Increment for all municipalities, as most recently

29 calculated by the Department, shall determine the proportional

30 shares of the Illinois Tax Increment Fund to be distributed to

31 each municipality.

32 (Source: P.A. 93-298, eff. 7-23-03; 93-708, eff. 1-1-05;

33 93-747, eff. 7-15-04; 93-924, eff. 8-12-04; 93-961, eff.

34 1-1-05; 93-983, eff. 8-23-04; 93-984, eff. 8-23-04; 93-985,

35 eff. 8-23-04; 93-986, eff. 8-23-04; 93-987, eff. 8-23-04;

36 93-995, eff. 8-23-04; 93-1024, eff. 8-25-04; 93-1076, eff.

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1 1-18-05; 94-260, eff. 7-19-05; 94-268, eff. 7-19-05; 94-297,

2 eff. 7-21-05; 94-302, eff. 7-21-05; 94-702, eff. 6-1-06;

3 94-704, eff. 12-5-05; 94-711, eff. 6-1-06; revised 12-9-05.)

4 Section 15. The Code of Civil Procedure is amended by

5 changing Sections 7-121 and 7-122 and by adding Section 7-115.5

6 as follows:

7 (735 ILCS 5/7-115.5 new)

8 Sec. 7-115.5. Blight. Notwithstanding any provision of law

9 to the contrary, in a condemnation proceeding in which the

10 property has been designated by the condemning authority by

11 ordinance as blighted, the condemning authority must

12 demonstrate and prove by a preponderance of the evidence that

13 the property is "blighted property" in accordance with Section

14 10 of the Statute on Statutes. The existence of an ordinance

15 designating property as blighted is not prima facie evidence of

16 blight. An ordinance designating property as "blighted

17 property" in accordance with Section 10 of the Statute on

18 Statutes shall not be presumed to be valid for purposes of the

19 condemnation proceeding.

20 (735 ILCS 5/7-121) (from Ch. 110, par. 7-121)

21 Sec. 7-121. Value. Except as to property designated as

22 possessing a special use, the fair cash market value of

23 property in a proceeding in eminent domain shall be the amount

24 of money which a purchaser, willing but not obligated to buy

25 the property, would pay to an owner willing but not obliged to

26 sell in a voluntary sale, which amount of money shall be

27 determined and ascertained as provided in subsection (b)~~as of~~

28 ~~the date of filing the complaint to condemn~~. In the

29 condemnation of property for a public improvement there shall

30 be excluded from such amount of money any appreciation in value

31 proximately caused by such improvement, and any depreciation in

32 value proximately caused by such improvement. However, such

33 appreciation or depreciation shall not be excluded where

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1 property is condemned for a separate project conceived

2 independently of and subsequent to the original project.

3 (b) If the trial or quick-take proceeding is commenced

4 within one year after the complaint for condemnation is filed,

5 then the fair cash market value of property in a proceeding in

6 eminent domain shall be determined and ascertained as of the

7 date of filing the complaint to condemn.

8 If the trial or quick-take proceeding is commenced later

9 than one year after the filing of the complaint to condemn, the

10 fair cash market value of the property shall be determined and

11 ascertained as of the 180th day before the date on which the

12 trial or quick-take proceeding was commenced.

13 The court may, in its discretion, require that the fair

14 cash market value of the property be determined and ascertained

15 as of the date of filing the complaint to condemn even if the

16 trial or quick-take proceeding is commenced later than one year

17 after the filing of the complaint to condemn if the court

18 determines that:

19 (i) the property owner caused an unreasonable delay and

20 the fair cash market value of the property increased

21 between the date that the complaint for condemnation was

22 filed and the 180th day before the trial or quick-take

23 proceeding was commenced; or

24 (ii) the condemning authority caused an unreasonable

25 delay and the fair cash market value of the property

26 decreased between the date that the complaint for

27 condemnation was filed and the 180th day before the trial

28 or quick-take proceeding was commenced.

29 If the property owner challenges the condemning

30 authority's right to exercise the power of eminent domain, the

31 challenge is not, in and of itself, an unreasonable delay on

32 the part of the property owner.

33 (Source: P.A. 82-280.)

34 (735 ILCS 5/7-122) (from Ch. 110, par. 7-122)

35 Sec. 7-122. Reimbursement.

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1 (a) In all~~Where the State of Illinois, a political~~

2 ~~subdivision of the State or a municipality is required by a~~

3 ~~court to initiate~~condemnation proceedings for the~~actual~~

4 ~~physical~~ taking or damagingof real property, the court

5 rendering judgment ~~for the property owner and awarding just~~

6 ~~compensation for such taking~~ shall determine and award or allow

7 to the~~such~~property owner, as part ofthat~~such~~ judgment or

8 award, such further sums, as will in the opinion of the court,

9 reimburse the~~such~~property owner for the owner's reasonable

10 costs, disbursements and expenses~~, including reasonable~~

11 ~~attorney, appraisal and engineering fees~~ actually incurred by

12 the property owner inthose~~such~~ proceedings, including:

13 (1) reasonable attorney's fees and appraisal fees;

14 (2) the actual reasonable relocation expenses of the

15 owner and the owner's family and the owner's business, farm

16 operation, or personal property;

17 (3) the amount of any direct losses of tangible

18 personal property incurred by the owner as a result of

19 relocating or discontinuing the owner's business or farm

20 operation, but not to exceed an amount equal to the

21 reasonable expenses that would have been required to

22 relocate the property;

23 (4) the actual reasonable expenses incurred by the

24 owner in searching for a replacement business or farm

25 operation;

26 (5) the actual reasonable expenses of the owner that

27 were necessary for the owner to reestablish the owner's

28 displaced farm operation, nonprofit organization, or small

29 business, but not to exceed $10,000; and

30 (6) any other reasonable costs incurred by the property

31 owner.

32 The property owner shall submit to the court a copy of any

33 fee agreement between the property owner and the owner's

34 attorney. The amount of attorney's fees due in accordance with

35 the fee agreement shall be reduced by the amount of attorney's

36 fees awarded under this Section.

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1 (b) Any award of attorney's fees as part of just

2 compensation shall be based solely on the net benefit achieved

3 for the property owner, except that the court may also consider

4 any non-monetary benefits obtained for the property owner

5 through the efforts of the attorney to the extent that the

6 non-monetary benefits are specifically identified by the court

7 and can be quantified by the court with a reasonable degree of

8 certainty. "Net benefit" means the difference, exclusive of

9 interest, between the final judgment or settlement and the last

10 written offer made by the condemning authority before the

11 property owner hires an attorney or, if the condemning

12 authority does not make a written offer before the property

13 owner hires an attorney, then "net benefit" means the

14 difference between the final judgment or settlement and the

15 first written offer. The award shall be calculated as follows:

16 (1) 33% of the net benefit if the net benefit is

17 $250,000 or less;

18 (2) 25% of the net benefit if the net benefit is more

19 than $250,000 but less than $1 million; or

20 (3) 20% of the net benefit of the net benefit is $1

21 million or more.

22 (c) In assessing attorney's fees incurred by the property

23 owner in defeating an order of taking or an order for

24 apportionment, or other supplemental proceedings, when not

25 otherwise provided for, the court shall consider:

26 (1) the novelty, difficulty, and importance of the

27 questions involved;

28 (2) the skill employed by the attorney in conducting

29 the cause;

30 (3) the amount of money involved;

31 (4) the responsibility incurred and fulfilled by the

32 attorney;

33 (5) the attorney's time and labor reasonably required

34 to adequately represent the client in relation to the

35 benefits obtained by the property owner; and

36 (6) the fee or rate customarily charged for legal

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1 services a comparable or similar nature.

2 In determining the amount of attorney's fees to be awarded

3 under this subsection (c), the court shall consider the fees

4 the property owner would ordinarily be expected to pay for

5 these services if the condemning authority were not responsible

6 for the payment of those fees. At least 30 days before any

7 hearing to assess attorney's fees in accordance with this

8 subsection (c), the attorney shall submit to the court and to

9 the condemning authority the attorney's complete time records

10 and a detailed statement of services indicating the date,

11 nature, and cost of the services rendered and accounting for

12 the time spent performing those services.

13 (Source: P.A. 82-280.)

14 Section 90. The State Mandates Act is amended by adding

15 Section 8.30 as follows:

16 (30 ILCS 805/8.30 new)

17 Sec. 8.30. Exempt mandate. Notwithstanding Sections 6 and 8

18 of this Act, no reimbursement by the State is required for the

19 implementation of any mandate created by this amendatory Act of

20 the 94th General Assembly.

21 Section 95. Home rule preemption. Except as otherwise

22 specifically provided, neither the State, a unit of local

23 government, including a home rule unit, nor a school district

24 may exercise the power of eminent domain in a manner that is

25 inconsistent with the amendatory changes of this amendatory Act

26 of the 94th General Assembly. This Section is a limitation

27 under subsection (i) of Section 6 of Article VII of the

28 Illinois Constitution on the concurrent exercise by home rule

29 units of powers and functions exercised by the State.

30 Section 97. No acceleration or delay. Where this Act makes

31 changes in a statute that is represented in this Act by text

32 that is not yet or no longer in effect (for example, a Section

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1 represented by multiple versions), the use of that text does

2 not accelerate or delay the taking effect of (i) the changes

3 made by this Act or (ii) provisions derived from any other

4 Public Act.

5 Section 99. Effective date. This Act takes effect upon

6 becoming law.