Bill Text: IL HB1307 | 2013-2014 | 98th General Assembly | Introduced

---

Bill Title: Amends the County Economic Development Project Area Property Tax Allocation Act. In a provision concerning economic development project costs, exempts certain ad valorem tax rebates for economic development project areas that are located in Grundy County from being considered in the sum total of all reasonable or necessary costs incurred by the county incidental to an economic development project. Effective immediately.

Spectrum: Slight Partisan Bill (Democrat 2-1)

Status: (Failed) 2014-12-03 - Session Sine Die [HB1307 Detail]

Download: Illinois-2013-HB1307-Introduced.html

---

98TH GENERAL ASSEMBLY State of Illinois 2013 and 2014 HB1307 Introduced , by Rep. Pam Roth - Frank J. Mautino SYNOPSIS AS INTRODUCED:
55 ILCS 85/3 from Ch. 34, par. 7003
Amends the County Economic Development Project Area Property Tax Allocation Act. In a provision concerning economic development project costs, exempts certain ad valorem tax rebates for economic development project areas that are located in Grundy County from being considered in the sum total of all reasonable or necessary costs incurred by the county incidental to an economic development project. Effective immediately.
LRB098 06661 OMW 36706 b
A BILL FOR
HB1307 LRB098 06661 OMW 36706 b
AN ACT concerning local government.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The County Economic Development Project Area
Property Tax Allocation Act is amended by changing Section 3 as
follows:
(55 ILCS 85/3) (from Ch. 34, par. 7003)
Sec. 3. Definitions. In this Act, words or terms shall have
the following meanings unless the context usage clearly
indicates that another meaning is intended.
(a) "Department" means the Department of Commerce and
Economic Opportunity.
(b) "Economic development plan" means the written plan of a
county which sets forth an economic development program for an
economic development project area. Each economic development
plan shall include but not be limited to (1) estimated economic
development project costs, (2) the sources of funds to pay such
costs, (3) the nature and term of any obligations to be issued
by the county to pay such costs, (4) the most recent equalized
assessed valuation of the economic development project area,
(5) an estimate of the equalized assessed valuation of the
economic development project area after completion of the
economic development plan, (6) the estimated date of completion

HB1307 - 2 - LRB098 06661 OMW 36706 b
of any economic development project proposed to be undertaken,
(7) a general description of any proposed developer, user, or
tenant of any property to be located or improved within the
economic development project area, (8) a description of the
type, structure and general character of the facilities to be
developed or improved in the economic development project area,
(9) a description of the general land uses to apply in the
economic development project area, (10) a description of the
type, class and number of employees to be employed in the
operation of the facilities to be developed or improved in the
economic development project area and (11) a commitment by the
county to fair employment practices and an affirmative action
plan with respect to any economic development program to be
undertaken by the county. The economic development plan for an
economic development project area authorized by subsection
(a-15) of Section 4 of this Act must additionally include (1)
evidence indicating that the redevelopment project area on the
whole has not been subject to growth and development through
investment by private enterprise and is not reasonably expected
to be subject to such growth and development without the
assistance provided through the implementation of the economic
development plan and (2) evidence that portions of the economic
development project area have incurred Illinois Environmental
Protection Agency or United States Environmental Protection
Agency remediation costs for, or a study conducted by an
independent consultant recognized as having expertise in

HB1307 - 3 - LRB098 06661 OMW 36706 b
environmental remediation has determined a need for, the
clean-up of hazardous waste, hazardous substances, or
underground storage tanks required by State or federal law,
provided that the remediation costs constitute a material
impediment to the development or redevelopment of the project
area.
(c) "Economic development project" means any development
project in furtherance of the objectives of this Act.
(d) "Economic development project area" means any improved
or vacant area which is located within the corporate limits of
a county and which (1) is within the unincorporated area of
such county, or, with the consent of any affected municipality,
is located partially within the unincorporated area of such
county and partially within one or more municipalities, (2) is
contiguous, (3) is not less in the aggregate than 100 acres
and, for an economic development project area authorized by
subsection (a-15) of Section 4 of this Act, not more than 2,000
acres, (4) is suitable for siting by any commercial,
manufacturing, industrial, research or transportation
enterprise of facilities to include but not be limited to
commercial businesses, offices, factories, mills, processing
plants, assembly plants, packing plants, fabricating plants,
industrial or commercial distribution centers, warehouses,
repair overhaul or service facilities, freight terminals,
research facilities, test facilities or transportation
facilities, whether or not such area has been used at any time

HB1307 - 4 - LRB098 06661 OMW 36706 b
for such facilities and whether or not the area has been used
or is suitable for such facilities and whether or not the area
has been used or is suitable for other uses, including
commercial agricultural purposes, and (5) which has been
certified by the Department pursuant to this Act.
(e) "Economic development project costs" means and
includes the sum total of all reasonable or necessary costs
incurred by a county incidental to an economic development
project, including, without limitation, the following:
(1) Costs of studies, surveys, development of plans and
specifications, implementation and administration of an
economic development plan, personnel and professional
service costs for architectural, engineering, legal,
marketing, financial, planning, sheriff, fire, public
works or other services, provided that no charges for
professional services may be based on a percentage of
incremental tax revenue;
(2) Property assembly costs within an economic
development project area, including but not limited to
acquisition of land and other real or personal property or
rights or interests therein, and specifically including
payments to developers or other non-governmental persons
as reimbursement for property assembly costs incurred by
such developer or other non-governmental person;
(3) Site preparation costs, including but not limited
to clearance of any area within an economic development

HB1307 - 5 - LRB098 06661 OMW 36706 b
project area by demolition or removal of any existing
buildings, structures, fixtures, utilities and
improvements and clearing and grading; site improvement
addressing ground level or below ground environmental
contamination; and including installation, repair,
construction, reconstruction, or relocation of public
streets, public utilities, and other public site
improvements within or without an economic development
project area which are essential to the preparation of the
economic development project area for use in accordance
with an economic development plan; and specifically
including payments to developers or other non-governmental
persons as reimbursement for site preparation costs
incurred by such developer or non-governmental person;
(4) Costs of renovation, rehabilitation,
reconstruction, relocation, repair or remodeling of any
existing buildings, improvements, and fixtures within an
economic development project area, and specifically
including payments to developers or other non-governmental
persons as reimbursement for such costs incurred by such
developer or non-governmental person;
(5) Costs of construction within an economic
development project area of public improvements, including
but not limited to, buildings, structures, works,
improvements, utilities or fixtures;
(6) Financing costs, including but not limited to all

HB1307 - 6 - LRB098 06661 OMW 36706 b
necessary and incidental expenses related to the issuance
of obligations, payment of any interest on any obligations
issued hereunder which accrues during the estimated period
of construction of any economic development project for
which such obligations are issued and for not exceeding 36
months thereafter, and any reasonable reserves related to
the issuance of such obligations;
(7) All or a portion of a taxing district's capital
costs resulting from an economic development project
necessarily incurred or estimated to be incurred by a
taxing district in the furtherance of the objectives of an
economic development project, to the extent that the county
by written agreement accepts, approves and agrees to incur
or to reimburse such costs;
(8) Relocation costs to the extent that a county
determines that relocation costs shall be paid or is
required to make payment of relocation costs by federal or
State law;
(9) The estimated tax revenues from real property in an
economic development project area acquired by a county
which, according to the economic development plan, is to be
used for a private use and which any taxing district would
have received had the county not adopted property tax
allocation financing for an economic development project
area and which would result from such taxing district's
levies made after the time of the adoption by the county of

HB1307 - 7 - LRB098 06661 OMW 36706 b
property tax allocation financing to the time the current
equalized assessed value of real property in the economic
development project area exceeds the total initial
equalized value of real property in that area;
(10) Costs of rebating ad valorem taxes paid by any
developer or other nongovernmental person in whose name the
general taxes were paid for the last preceding year on any
lot, block, tract or parcel of land in the economic
development project area, provided that:
(i) such economic development project area is
located in an enterprise zone created pursuant to the
Illinois Enterprise Zone Act. This provision does not
apply to economic development project areas that are
located in Grundy County;
(ii) such ad valorem taxes shall be rebated only in
such amounts and for such tax year or years as the
county and any one or more affected taxing districts
shall have agreed by prior written agreement. This
provision does not apply to economic development
project areas that are located in Grundy County;
(iii) any amount of rebate of taxes shall not
exceed the portion, if any, of taxes levied by the
county or such taxing district or districts which is
attributable to the increase in the current equalized
assessed valuation of each taxable lot, block, tract or
parcel of real property in the economic development

HB1307 - 8 - LRB098 06661 OMW 36706 b
project area over and above the initial equalized
assessed value of each property existing at the time
property tax allocation financing was adopted for said
economic development project area; and
(iv) costs of rebating ad valorem taxes shall be
paid by a county solely from the special tax allocation
fund established pursuant to this Act and shall be paid
from the proceeds of any obligations issued by a
county.
(11) Costs of job training, advanced vocational
education or career education programs, including but not
limited to courses in occupational, semi-technical or
technical fields leading directly to employment, incurred
by one or more taxing districts, provided that such costs
are related to the establishment and maintenance of
additional job training, advanced vocational education or
career education programs for persons employed or to be
employed by employers located in an economic development
project area, and further provided, that when such costs
are incurred by a taxing district or taxing districts other
than the county, they shall be set forth in a written
agreement by or among the county and the taxing district or
taxing districts, which agreement describes the program to
be undertaken, including, but not limited to, the number of
employees to be trained, a description of the training and
services to be provided, the number and type of positions

HB1307 - 9 - LRB098 06661 OMW 36706 b
available or to be available, itemized costs of the program
and sources of funds to pay the same, and the term of the
agreement. Such costs include, specifically, the payment
by community college districts of costs pursuant to Section
3-37, 3-38, 3-40 and 3-40.1 of the Public Community College
Act and by school districts of costs pursuant to Sections
10-22.20 and 10-23.3a of the School Code;
(12) Private financing costs incurred by developers or
other non-governmental persons in connection with an
economic development project, and specifically including
payments to developers or other non-governmental persons
as reimbursement for such costs incurred by such developer
or other non-governmental persons provided that:
(A) private financing costs shall be paid or
reimbursed by a county only pursuant to the prior
official action of the county evidencing an intent to
pay such private financing costs;
(B) except as provided in subparagraph (D) of this
Section, the aggregate amount of such costs paid or
reimbursed by a county in any one year shall not exceed
30% of such costs paid or incurred by such developer or
other non-governmental person in that year;
(C) private financing costs shall be paid or
reimbursed by a county solely from the special tax
allocation fund established pursuant to this Act and
shall not be paid or reimbursed from the proceeds of

HB1307 - 10 - LRB098 06661 OMW 36706 b
any obligations issued by a county;
(D) if there are not sufficient funds available in
the special tax allocation fund in any year to make
such payment or reimbursement in full, any amount of
such private financing costs remaining to be paid or
reimbursed by a county shall accrue and be payable when
funds are available in the special tax allocation fund
to make such payment; and
(E) in connection with its approval and
certification of an economic development project
pursuant to Section 5 of this Act, the Department shall
review any agreement authorizing the payment or
reimbursement by a county of private financing costs in
its consideration of the impact on the revenues of the
county and the affected taxing districts of the use of
property tax allocation financing.
(f) "Obligations" means any instrument evidencing the
obligation of a county to pay money, including without
limitation, bonds, notes, installment or financing contracts,
certificates, tax anticipation warrants or notes, vouchers,
and any other evidence of indebtedness.
(g) "Taxing districts" means municipalities, townships,
counties, and school, road, park, sanitary, mosquito
abatement, forest preserve, public health, fire protection,
river conservancy, tuberculosis sanitarium and any other
county corporations or districts with the power to levy taxes

HB1307 - 11 - LRB098 06661 OMW 36706 b
on real property.
(Source: P.A. 96-1262, eff. 7-26-10.)
Section 99. Effective date. This Act takes effect upon
becoming law.