Bill Text: IL HB3418 | 2017-2018 | 100th General Assembly | Chaptered


Bill Title: Amends the Counties Code and Illinois Municipal Code. Provides that a county or municipality may create an urban agricultural zone composed of organizations or persons: who grow produce or other agricultural products; who raise livestock or poultry; who process livestock or poultry; or that sell a minimum of 75% locally grown food. Provides for the creation of an urban agricultural zone board to advise the county board, county board of commissioners, or corporate authorities of a municipality on urban agricultural zones. Provides for urban agricultural zone application requirements, including the number of jobs to be created, the types of products to be produced, and, if applying for a vending urban agricultural zone, the ability to accept food stamps under the provisions of the Supplemental Nutrition Assistance Program if selling products to consumers. Provides for county and municipal public hearing and notice requirements before adoption of an ordinance to establish an urban agricultural zone. Provides that property taxes on property located within an urban agricultural zone shall not be increased, if so provided in the urban agricultural zone ordinance, for a period of up to 25 years. Provides that sales tax amounts received from the sale of agricultural products sold in an urban agricultural zone shall be deposited in the Urban Agricultural Zone Fund and specifies distribution to the county, municipality, or school districts under specified circumstances. Allows for wholesale water rates and a reduction in water connection charges for property in an urban agricultural zone. Amends the State Finance Act making conforming changes.

Spectrum: Partisan Bill (Democrat 28-1)

Status: (Passed) 2018-11-30 - Public Act . . . . . . . . . 100-1133 [HB3418 Detail]

Download: Illinois-2017-HB3418-Chaptered.html



Public Act 100-1133
HB3418 EnrolledLRB100 10990 AWJ 21229 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 Department of Agriculture Law of the Civil
Administrative Code of Illinois is amended by adding Section
205-65 as follows:
(20 ILCS 205/205-65 new)
Sec. 205-65. Municipal Urban Agricultural Areas. The
Department shall adopt rules consistent with the purposes of
Division 15.4 of the Illinois Municipal Code. The Department
shall adopt, at a minimum, rules defining "small or medium
sized farmer", "beginning farmer", "limited resource farmer",
and "socially-disadvantaged farmer" as used in Section
11-15.4-5 of the Illinois Municipal Code and shall consider
definitions of these terms set forth in the Agricultural Act of
2014 or the most recent federal Agricultural Act and the use of
those terms by the United States Department of Agriculture.
Upon request from a municipality, the Department shall issue
opinions regarding the consistency of applicants covered under
these definitions.
Section 10. The Property Tax Code is amended by changing
Section 18-165 as follows:
(35 ILCS 200/18-165)
Sec. 18-165. Abatement of taxes.
(a) Any taxing district, upon a majority vote of its
governing authority, may, after the determination of the
assessed valuation of its property, order the clerk of that
county to abate any portion of its taxes on the following types
of property:
(1) Commercial and industrial.
(A) The property of any commercial or industrial
firm, including but not limited to the property of (i)
any firm that is used for collecting, separating,
storing, or processing recyclable materials, locating
within the taxing district during the immediately
preceding year from another state, territory, or
country, or having been newly created within this State
during the immediately preceding year, or expanding an
existing facility, or (ii) any firm that is used for
the generation and transmission of electricity
locating within the taxing district during the
immediately preceding year or expanding its presence
within the taxing district during the immediately
preceding year by construction of a new electric
generating facility that uses natural gas as its fuel,
or any firm that is used for production operations at a
new, expanded, or reopened coal mine within the taxing
district, that has been certified as a High Impact
Business by the Illinois Department of Commerce and
Economic Opportunity. The property of any firm used for
the generation and transmission of electricity shall
include all property of the firm used for transmission
facilities as defined in Section 5.5 of the Illinois
Enterprise Zone Act. The abatement shall not exceed a
period of 10 years and the aggregate amount of abated
taxes for all taxing districts combined shall not
exceed $4,000,000.
(A-5) Any property in the taxing district of a new
electric generating facility, as defined in Section
605-332 of the Department of Commerce and Economic
Opportunity Law of the Civil Administrative Code of
Illinois. The abatement shall not exceed a period of 10
years. The abatement shall be subject to the following
limitations:
(i) if the equalized assessed valuation of the
new electric generating facility is equal to or
greater than $25,000,000 but less than
$50,000,000, then the abatement may not exceed (i)
over the entire term of the abatement, 5% of the
taxing district's aggregate taxes from the new
electric generating facility and (ii) in any one
year of abatement, 20% of the taxing district's
taxes from the new electric generating facility;
(ii) if the equalized assessed valuation of
the new electric generating facility is equal to or
greater than $50,000,000 but less than
$75,000,000, then the abatement may not exceed (i)
over the entire term of the abatement, 10% of the
taxing district's aggregate taxes from the new
electric generating facility and (ii) in any one
year of abatement, 35% of the taxing district's
taxes from the new electric generating facility;
(iii) if the equalized assessed valuation of
the new electric generating facility is equal to or
greater than $75,000,000 but less than
$100,000,000, then the abatement may not exceed
(i) over the entire term of the abatement, 20% of
the taxing district's aggregate taxes from the new
electric generating facility and (ii) in any one
year of abatement, 50% of the taxing district's
taxes from the new electric generating facility;
(iv) if the equalized assessed valuation of
the new electric generating facility is equal to or
greater than $100,000,000 but less than
$125,000,000, then the abatement may not exceed
(i) over the entire term of the abatement, 30% of
the taxing district's aggregate taxes from the new
electric generating facility and (ii) in any one
year of abatement, 60% of the taxing district's
taxes from the new electric generating facility;
(v) if the equalized assessed valuation of the
new electric generating facility is equal to or
greater than $125,000,000 but less than
$150,000,000, then the abatement may not exceed
(i) over the entire term of the abatement, 40% of
the taxing district's aggregate taxes from the new
electric generating facility and (ii) in any one
year of abatement, 60% of the taxing district's
taxes from the new electric generating facility;
(vi) if the equalized assessed valuation of
the new electric generating facility is equal to or
greater than $150,000,000, then the abatement may
not exceed (i) over the entire term of the
abatement, 50% of the taxing district's aggregate
taxes from the new electric generating facility
and (ii) in any one year of abatement, 60% of the
taxing district's taxes from the new electric
generating facility.
The abatement is not effective unless the owner of
the new electric generating facility agrees to repay to
the taxing district all amounts previously abated,
together with interest computed at the rate and in the
manner provided for delinquent taxes, in the event that
the owner of the new electric generating facility
closes the new electric generating facility before the
expiration of the entire term of the abatement.
The authorization of taxing districts to abate
taxes under this subdivision (a)(1)(A-5) expires on
January 1, 2010.
(B) The property of any commercial or industrial
development of at least (i) 500 acres or (ii) 225 acres
in the case of a commercial or industrial development
that applies for and is granted designation as a High
Impact Business under paragraph (F) of item (3) of
subsection (a) of Section 5.5 of the Illinois
Enterprise Zone Act, having been created within the
taxing district. The abatement shall not exceed a
period of 20 years and the aggregate amount of abated
taxes for all taxing districts combined shall not
exceed $12,000,000.
(C) The property of any commercial or industrial
firm currently located in the taxing district that
expands a facility or its number of employees. The
abatement shall not exceed a period of 10 years and the
aggregate amount of abated taxes for all taxing
districts combined shall not exceed $4,000,000. The
abatement period may be renewed at the option of the
taxing districts.
(2) Horse racing. Any property in the taxing district
which is used for the racing of horses and upon which
capital improvements consisting of expansion, improvement
or replacement of existing facilities have been made since
July 1, 1987. The combined abatements for such property
from all taxing districts in any county shall not exceed
$5,000,000 annually and shall not exceed a period of 10
years.
(3) Auto racing. Any property designed exclusively for
the racing of motor vehicles. Such abatement shall not
exceed a period of 10 years.
(4) Academic or research institute. The property of any
academic or research institute in the taxing district that
(i) is an exempt organization under paragraph (3) of
Section 501(c) of the Internal Revenue Code, (ii) operates
for the benefit of the public by actually and exclusively
performing scientific research and making the results of
the research available to the interested public on a
non-discriminatory basis, and (iii) employs more than 100
employees. An abatement granted under this paragraph shall
be for at least 15 years and the aggregate amount of abated
taxes for all taxing districts combined shall not exceed
$5,000,000.
(5) Housing for older persons. Any property in the
taxing district that is devoted exclusively to affordable
housing for older households. For purposes of this
paragraph, "older households" means those households (i)
living in housing provided under any State or federal
program that the Department of Human Rights determines is
specifically designed and operated to assist elderly
persons and is solely occupied by persons 55 years of age
or older and (ii) whose annual income does not exceed 80%
of the area gross median income, adjusted for family size,
as such gross income and median income are determined from
time to time by the United States Department of Housing and
Urban Development. The abatement shall not exceed a period
of 15 years, and the aggregate amount of abated taxes for
all taxing districts shall not exceed $3,000,000.
(6) Historical society. For assessment years 1998
through 2018, the property of an historical society
qualifying as an exempt organization under Section
501(c)(3) of the federal Internal Revenue Code.
(7) Recreational facilities. Any property in the
taxing district (i) that is used for a municipal airport,
(ii) that is subject to a leasehold assessment under
Section 9-195 of this Code and (iii) which is sublet from a
park district that is leasing the property from a
municipality, but only if the property is used exclusively
for recreational facilities or for parking lots used
exclusively for those facilities. The abatement shall not
exceed a period of 10 years.
(8) Relocated corporate headquarters. If approval
occurs within 5 years after the effective date of this
amendatory Act of the 92nd General Assembly, any property
or a portion of any property in a taxing district that is
used by an eligible business for a corporate headquarters
as defined in the Corporate Headquarters Relocation Act.
Instead of an abatement under this paragraph (8), a taxing
district may enter into an agreement with an eligible
business to make annual payments to that eligible business
in an amount not to exceed the property taxes paid directly
or indirectly by that eligible business to the taxing
district and any other taxing districts for premises
occupied pursuant to a written lease and may make those
payments without the need for an annual appropriation. No
school district, however, may enter into an agreement with,
or abate taxes for, an eligible business unless the
municipality in which the corporate headquarters is
located agrees to provide funding to the school district in
an amount equal to the amount abated or paid by the school
district as provided in this paragraph (8). Any abatement
ordered or agreement entered into under this paragraph (8)
may be effective for the entire term specified by the
taxing district, except the term of the abatement or annual
payments may not exceed 20 years.
(9) United States Military Public/Private Residential
Developments. Each building, structure, or other
improvement designed, financed, constructed, renovated,
managed, operated, or maintained after January 1, 2006
under a "PPV Lease", as set forth under Division 14 of
Article 10, and any such PPV Lease.
(10) Property located in a business corridor that
qualifies for an abatement under Section 18-184.10.
(11) Under Section 11-15.4-25 of the Illinois
Municipal Code, property located within an urban
agricultural area that is used by a qualifying farmer for
processing, growing, raising, or otherwise producing
agricultural products.
(b) Upon a majority vote of its governing authority, any
municipality may, after the determination of the assessed
valuation of its property, order the county clerk to abate any
portion of its taxes on any property that is located within the
corporate limits of the municipality in accordance with Section
8-3-18 of the Illinois Municipal Code.
(Source: P.A. 97-577, eff. 1-1-12; 97-636, eff. 6-1-12; 98-109,
eff. 7-25-13.)
Section 15. The Illinois Municipal Code is amended by
changing Section 11-74.4-3 and by adding Division 15.4 to
Article 11 as follows:
(65 ILCS 5/Art. 11 Div. 15.4 heading new)
DIVISION 15.4. MUNICIPAL URBAN AGRICULTURAL AREAS
(65 ILCS 5/11-15.4-5 new)
Sec. 11-15.4-5. Definitions. As used in this Division:
"Agricultural product" means an agricultural,
horticultural, viticultural, aquacultural, or vegetable
product, either in its natural or processed state, that has
been produced, processed, or otherwise had value added to it in
this State. "Agricultural product" includes, but is not limited
to, growing of grapes that will be processed into wine; bees;
honey; fish or other aquacultural product; planting seed;
livestock or livestock product; forestry product; and poultry
or poultry product.
"Aquaculture" and "aquatic products" have the meanings
given to those terms in Section 4 of the Aquaculture
Development Act.
"Department" means the Department of Agriculture.
"Livestock" means cattle; calves; sheep; swine; ratite
birds, including, but not limited to, ostrich and emu; aquatic
products obtained through aquaculture; llamas; alpaca;
buffalo; elk documented as obtained from a legal source and not
from the wild; goats; horses and other equines; or rabbits
raised in confinement for human consumption.
"Locally grown" means a product that was grown or raised in
the same county or adjoining county in which the urban
agricultural area is located.
"Partner organization" means a nonprofit organization that
meets standards set forth by Section 501(c)(3) of the Internal
Revenue Code and whose mission includes supporting small,
beginning, limited resource, or socially-disadvantaged farmers
within municipalities.
"Poultry" means any domesticated bird intended for human
consumption.
"Qualifying farmer" means an individual or entity that
meets at least one of the following:
(1) is a small or medium sized farmer;
(2) is a beginning farmer;
(3) is a limited resource farmer; or
(4) is a socially-disadvantaged farmer.
"Small or medium sized farmer", "beginning farmer",
"limited resource farmer", and "socially-disadvantaged farmer"
have the meanings given to those terms in rules adopted by the
Department as provided in Section 205-65 of the Department of
Agriculture Law.
"Urban agricultural area" means an area defined by a
municipality and entirely within that municipality's
boundaries within which one or more qualifying farmers are
processing, growing, raising, or otherwise producing
locally-grown agricultural products.
(65 ILCS 5/11-15.4-10 new)
Sec. 11-15.4-10. Urban agricultural area committee.
(a) The corporate authorities of a municipality that seek
to establish an urban agricultural area shall first establish
an urban agricultural area committee after it receives an
application to establish an urban agricultural area under
Section 11-15.4-15. There shall be 5 members on the committee.
One member of the committee shall be a member of the
municipality's board and shall be appointed by the board. The
remaining 4 members shall be appointed by the president or
mayor of the municipality. The 4 members chosen by the
president or mayor shall all be residents of the municipality
in which the urban agricultural area is to be located, and at
least one of the 4 members shall have experience in or
represent an organization associated with sustainable
agriculture, urban farming, community gardening, or any of the
activities or products authorized by this Division for urban
agricultural areas.
(b) The members of the committee annually shall elect a
chair from among the members. The members shall serve without
compensation, but may be reimbursed for actual and necessary
expenses incurred in the performance of their official duties.
(c) A majority of the members shall constitute a quorum of
the committee for the purpose of conducting business and
exercising the powers of the committee and for all other
purposes. Action may be taken by the committee upon a vote of a
majority of the members present.
(d) The role of the committee shall be to conduct the
activities necessary to advise the corporate authorities of the
municipality on the designation, modification, and termination
of an urban agricultural area and any other advisory duties as
determined by the corporate authorities of the municipality.
The role of the committee after the designation of an urban
agricultural area shall be review and assessment of an urban
agricultural area's activities.
(65 ILCS 5/11-15.4-15 new)
Sec. 11-15.4-15. Application for an urban agricultural
area; review; dissolution.
(a) A qualified farmer or partner organization may submit
to the municipal clerk an application to establish an urban
agricultural area. The application shall demonstrate or
identify:
(1) that the applicant is a qualified farmer;
(2) the number of jobs to be created, maintained, or
supported within the proposed urban agricultural area;
(3) the types of products to be produced; and
(4) the geographic description of the area that will be
included in the urban agricultural area.
(b) An urban agricultural area committee shall review and
modify the application as necessary before the municipality
either approves or denies the request to establish an urban
agricultural area.
(c) Approval of the urban agricultural area by a
municipality shall be reviewed every 5 years after the
development of the urban agricultural area. After 25 years, the
urban agricultural area shall dissolve. If the municipality
finds during its review that the urban agricultural area is not
meeting the requirements set out in this Division, the
municipality may dissolve the urban agricultural area by
ordinance or resolution.
(65 ILCS 5/11-15.4-20 new)
Sec. 11-15.4-20. Notice and public hearing; urban
agricultural area ordinance. Prior to the adoption of an
ordinance designating an urban agricultural area, the urban
agricultural area committee shall fix a time and place for a
public hearing and notify each taxing unit of local government
located wholly or partially within the boundaries of the
proposed urban agricultural area. The committee shall publish
notice of the hearing in a newspaper of general circulation in
the area to be affected by the designation at least 20 days
prior to the hearing but not more than 30 days prior to the
hearing. The notice shall state the time, location, date, and
purpose of the hearing. At the public hearing, any interested
person or affected taxing unit of local government may file
with the committee written objections or comments and may be
heard orally in respect to, any issues embodied in the notice.
The committee shall hear and consider all objections, comments,
and other evidence presented at the hearing. The hearing may be
continued to another date without further notice other than a
motion to be entered upon the minutes fixing the time and place
of the subsequent hearing.
Following the conclusion of the public hearing required
under this Section, the corporate authorities of the
municipality may adopt an ordinance establishing and
designating an urban agricultural area.
(65 ILCS 5/11-15.4-25 new)
Sec. 11-15.4-25. Taxation of property; water rates and
charges.
(a) If authorized by the ordinance that establishes an
urban agricultural area under Section 11-15.4-20, a
municipality may provide for the abatement of taxes it levies
upon real property located within an urban agricultural area
that is used by a qualifying farmer for processing, growing,
raising, or otherwise producing agricultural products under
item (11) of subsection (a) of Section 18-165 of the Property
Tax Code. Parcels of property assessed under Section 10-110 of
the Property Tax Code are not eligible for the abatements
provided in this subsection; except that if real property
assessed under Section 10-110 is reassessed and is subsequently
no longer assessed under Section 10-110, that property becomes
eligible for the abatements provided for in this Section. Real
property located in a redevelopment area created under the Tax
Increment Allocation Redevelopment Act and an urban
agricultural area created under this Division may be eligible
for an abatement under this Section, but only with respect to
the initial equalized assessed value of the real property.
(b) A municipality may authorize an entity providing water,
electricity, or other utilities to an urban agricultural area
to allow qualified farmers and partner organizations in the
urban agricultural area to: (1) pay wholesale or otherwise
reduced rates for service to property within the urban
agricultural area that is used for processing, growing,
raising, or otherwise producing agricultural products; or (2)
pay reduced or waived connection charges for service to
property within the urban agricultural area that is used for
processing, growing, raising, or otherwise producing
agricultural products.
(65 ILCS 5/11-15.4-30 new)
Sec. 11-15.4-30. Unreasonable restrictions and
regulations; special assessments and levies.
(a) A municipality may not exercise any of its powers to
enact ordinances within an urban agricultural area in a manner
that would unreasonably restrict or regulate farming practices
in contravention of the purposes of this Act unless the
restrictions or regulations bear a direct relationship to
public health or safety.
(b) A unit of local government providing public services,
such as sewer, water, lights, or non-farm drainage, may not
impose benefit assessments or special ad valorem levies on land
within an urban agricultural area on the basis of frontage,
acreage, or value unless the benefit assessments or special ad
valorem levies were imposed prior to the formation of the urban
agricultural area or unless the service is provided to the
landowner on the same basis as others having the service.
(65 ILCS 5/11-74.4-3) (from Ch. 24, par. 11-74.4-3)
Sec. 11-74.4-3. Definitions. The following terms, wherever
used or referred to in this Division 74.4 shall have the
following respective meanings, unless in any case a different
meaning clearly appears from the context.
(a) For any redevelopment project area that has been
designated pursuant to this Section by an ordinance adopted
prior to November 1, 1999 (the effective date of Public Act
91-478), "blighted area" shall have the meaning set forth in
this Section prior to that date.
On and after November 1, 1999, "blighted area" means any
improved or vacant area within the boundaries of a
redevelopment project area located within the territorial
limits of the municipality where:
(1) If improved, industrial, commercial, and
residential buildings or improvements are detrimental to
the public safety, health, or welfare because of a
combination of 5 or more of the following factors, each of
which is (i) present, with that presence documented, to a
meaningful extent so that a municipality may reasonably
find that the factor is clearly present within the intent
of the Act and (ii) reasonably distributed throughout the
improved part of the redevelopment project area:
(A) Dilapidation. An advanced state of disrepair
or neglect of necessary repairs to the primary
structural components of buildings or improvements in
such a combination that a documented building
condition analysis determines that major repair is
required or the defects are so serious and so extensive
that the buildings must be removed.
(B) Obsolescence. The condition or process of
falling into disuse. Structures have become ill-suited
for the original use.
(C) Deterioration. With respect to buildings,
defects including, but not limited to, major defects in
the secondary building components such as doors,
windows, porches, gutters and downspouts, and fascia.
With respect to surface improvements, that the
condition of roadways, alleys, curbs, gutters,
sidewalks, off-street parking, and surface storage
areas evidence deterioration, including, but not
limited to, surface cracking, crumbling, potholes,
depressions, loose paving material, and weeds
protruding through paved surfaces.
(D) Presence of structures below minimum code
standards. All structures that do not meet the
standards of zoning, subdivision, building, fire, and
other governmental codes applicable to property, but
not including housing and property maintenance codes.
(E) Illegal use of individual structures. The use
of structures in violation of applicable federal,
State, or local laws, exclusive of those applicable to
the presence of structures below minimum code
standards.
(F) Excessive vacancies. The presence of buildings
that are unoccupied or under-utilized and that
represent an adverse influence on the area because of
the frequency, extent, or duration of the vacancies.
(G) Lack of ventilation, light, or sanitary
facilities. The absence of adequate ventilation for
light or air circulation in spaces or rooms without
windows, or that require the removal of dust, odor,
gas, smoke, or other noxious airborne materials.
Inadequate natural light and ventilation means the
absence of skylights or windows for interior spaces or
rooms and improper window sizes and amounts by room
area to window area ratios. Inadequate sanitary
facilities refers to the absence or inadequacy of
garbage storage and enclosure, bathroom facilities,
hot water and kitchens, and structural inadequacies
preventing ingress and egress to and from all rooms and
units within a building.
(H) Inadequate utilities. Underground and overhead
utilities such as storm sewers and storm drainage,
sanitary sewers, water lines, and gas, telephone, and
electrical services that are shown to be inadequate.
Inadequate utilities are those that are: (i) of
insufficient capacity to serve the uses in the
redevelopment project area, (ii) deteriorated,
antiquated, obsolete, or in disrepair, or (iii)
lacking within the redevelopment project area.
(I) Excessive land coverage and overcrowding of
structures and community facilities. The
over-intensive use of property and the crowding of
buildings and accessory facilities onto a site.
Examples of problem conditions warranting the
designation of an area as one exhibiting excessive land
coverage are: (i) the presence of buildings either
improperly situated on parcels or located on parcels of
inadequate size and shape in relation to present-day
standards of development for health and safety and (ii)
the presence of multiple buildings on a single parcel.
For there to be a finding of excessive land coverage,
these parcels must exhibit one or more of the following
conditions: insufficient provision for light and air
within or around buildings, increased threat of spread
of fire due to the close proximity of buildings, lack
of adequate or proper access to a public right-of-way,
lack of reasonably required off-street parking, or
inadequate provision for loading and service.
(J) Deleterious land use or layout. The existence
of incompatible land-use relationships, buildings
occupied by inappropriate mixed-uses, or uses
considered to be noxious, offensive, or unsuitable for
the surrounding area.
(K) Environmental clean-up. The proposed
redevelopment project area has 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 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 redevelopment project area.
(L) Lack of community planning. The proposed
redevelopment project area was developed prior to or
without the benefit or guidance of a community plan.
This means that the development occurred prior to the
adoption by the municipality of a comprehensive or
other community plan or that the plan was not followed
at the time of the area's development. This factor must
be documented by evidence of adverse or incompatible
land-use relationships, inadequate street layout,
improper subdivision, parcels of inadequate shape and
size to meet contemporary development standards, or
other evidence demonstrating an absence of effective
community planning.
(M) The total equalized assessed value of the
proposed redevelopment project area has declined for 3
of the last 5 calendar years prior to the year in which
the redevelopment project area is designated or is
increasing at an annual rate that is less than the
balance of the municipality for 3 of the last 5
calendar years for which information is available or is
increasing at an annual rate that is less than the
Consumer Price Index for All Urban Consumers published
by the United States Department of Labor or successor
agency for 3 of the last 5 calendar years prior to the
year in which the redevelopment project area is
designated.
(2) If vacant, the sound growth of the redevelopment
project area is impaired by a combination of 2 or more of
the following factors, each of which is (i) present, with
that presence documented, to a meaningful extent so that a
municipality may reasonably find that the factor is clearly
present within the intent of the Act and (ii) reasonably
distributed throughout the vacant part of the
redevelopment project area to which it pertains:
(A) Obsolete platting of vacant land that results
in parcels of limited or narrow size or configurations
of parcels of irregular size or shape that would be
difficult to develop on a planned basis and in a manner
compatible with contemporary standards and
requirements, or platting that failed to create
rights-of-ways for streets or alleys or that created
inadequate right-of-way widths for streets, alleys, or
other public rights-of-way or that omitted easements
for public utilities.
(B) Diversity of ownership of parcels of vacant
land sufficient in number to retard or impede the
ability to assemble the land for development.
(C) Tax and special assessment delinquencies exist
or the property has been the subject of tax sales under
the Property Tax Code within the last 5 years.
(D) Deterioration of structures or site
improvements in neighboring areas adjacent to the
vacant land.
(E) The area has 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 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 redevelopment
project area.
(F) The total equalized assessed value of the
proposed redevelopment project area has declined for 3
of the last 5 calendar years prior to the year in which
the redevelopment project area is designated or is
increasing at an annual rate that is less than the
balance of the municipality for 3 of the last 5
calendar years for which information is available or is
increasing at an annual rate that is less than the
Consumer Price Index for All Urban Consumers published
by the United States Department of Labor or successor
agency for 3 of the last 5 calendar years prior to the
year in which the redevelopment project area is
designated.
(3) If vacant, the sound growth of the redevelopment
project area is impaired by one of the following factors
that (i) is present, with that presence documented, to a
meaningful extent so that a municipality may reasonably
find that the factor is clearly present within the intent
of the Act and (ii) is reasonably distributed throughout
the vacant part of the redevelopment project area to which
it pertains:
(A) The area consists of one or more unused
quarries, mines, or strip mine ponds.
(B) The area consists of unused rail yards, rail
tracks, or railroad rights-of-way.
(C) The area, prior to its designation, is subject
to (i) chronic flooding that adversely impacts on real
property in the area as certified by a registered
professional engineer or appropriate regulatory agency
or (ii) surface water that discharges from all or a
part of the area and contributes to flooding within the
same watershed, but only if the redevelopment project
provides for facilities or improvements to contribute
to the alleviation of all or part of the flooding.
(D) The area consists of an unused or illegal
disposal site containing earth, stone, building
debris, or similar materials that were removed from
construction, demolition, excavation, or dredge sites.
(E) Prior to November 1, 1999, the area is not less
than 50 nor more than 100 acres and 75% of which is
vacant (notwithstanding that the area has been used for
commercial agricultural purposes within 5 years prior
to the designation of the redevelopment project area),
and the area meets at least one of the factors itemized
in paragraph (1) of this subsection, the area has been
designated as a town or village center by ordinance or
comprehensive plan adopted prior to January 1, 1982,
and the area has not been developed for that designated
purpose.
(F) The area qualified as a blighted improved area
immediately prior to becoming vacant, unless there has
been substantial private investment in the immediately
surrounding area.
(b) For any redevelopment project area that has been
designated pursuant to this Section by an ordinance adopted
prior to November 1, 1999 (the effective date of Public Act
91-478), "conservation area" shall have the meaning set forth
in this Section prior to that date.
On and after November 1, 1999, "conservation area" means
any improved area within the boundaries of a redevelopment
project area located within the territorial limits of the
municipality in which 50% or more of the structures in the area
have an age of 35 years or more. Such an area is not yet a
blighted area but because of a combination of 3 or more of the
following factors is detrimental to the public safety, health,
morals or welfare and such an area may become a blighted area:
(1) Dilapidation. An advanced state of disrepair or
neglect of necessary repairs to the primary structural
components of buildings or improvements in such a
combination that a documented building condition analysis
determines that major repair is required or the defects are
so serious and so extensive that the buildings must be
removed.
(2) Obsolescence. The condition or process of falling
into disuse. Structures have become ill-suited for the
original use.
(3) Deterioration. With respect to buildings, defects
including, but not limited to, major defects in the
secondary building components such as doors, windows,
porches, gutters and downspouts, and fascia. With respect
to surface improvements, that the condition of roadways,
alleys, curbs, gutters, sidewalks, off-street parking, and
surface storage areas evidence deterioration, including,
but not limited to, surface cracking, crumbling, potholes,
depressions, loose paving material, and weeds protruding
through paved surfaces.
(4) Presence of structures below minimum code
standards. All structures that do not meet the standards of
zoning, subdivision, building, fire, and other
governmental codes applicable to property, but not
including housing and property maintenance codes.
(5) Illegal use of individual structures. The use of
structures in violation of applicable federal, State, or
local laws, exclusive of those applicable to the presence
of structures below minimum code standards.
(6) Excessive vacancies. The presence of buildings
that are unoccupied or under-utilized and that represent an
adverse influence on the area because of the frequency,
extent, or duration of the vacancies.
(7) Lack of ventilation, light, or sanitary
facilities. The absence of adequate ventilation for light
or air circulation in spaces or rooms without windows, or
that require the removal of dust, odor, gas, smoke, or
other noxious airborne materials. Inadequate natural light
and ventilation means the absence or inadequacy of
skylights or windows for interior spaces or rooms and
improper window sizes and amounts by room area to window
area ratios. Inadequate sanitary facilities refers to the
absence or inadequacy of garbage storage and enclosure,
bathroom facilities, hot water and kitchens, and
structural inadequacies preventing ingress and egress to
and from all rooms and units within a building.
(8) Inadequate utilities. Underground and overhead
utilities such as storm sewers and storm drainage, sanitary
sewers, water lines, and gas, telephone, and electrical
services that are shown to be inadequate. Inadequate
utilities are those that are: (i) of insufficient capacity
to serve the uses in the redevelopment project area, (ii)
deteriorated, antiquated, obsolete, or in disrepair, or
(iii) lacking within the redevelopment project area.
(9) Excessive land coverage and overcrowding of
structures and community facilities. The over-intensive
use of property and the crowding of buildings and accessory
facilities onto a site. Examples of problem conditions
warranting the designation of an area as one exhibiting
excessive land coverage are: the presence of buildings
either improperly situated on parcels or located on parcels
of inadequate size and shape in relation to present-day
standards of development for health and safety and the
presence of multiple buildings on a single parcel. For
there to be a finding of excessive land coverage, these
parcels must exhibit one or more of the following
conditions: insufficient provision for light and air
within or around buildings, increased threat of spread of
fire due to the close proximity of buildings, lack of
adequate or proper access to a public right-of-way, lack of
reasonably required off-street parking, or inadequate
provision for loading and service.
(10) Deleterious land use or layout. The existence of
incompatible land-use relationships, buildings occupied by
inappropriate mixed-uses, or uses considered to be
noxious, offensive, or unsuitable for the surrounding
area.
(11) Lack of community planning. The proposed
redevelopment project area was developed prior to or
without the benefit or guidance of a community plan. This
means that the development occurred prior to the adoption
by the municipality of a comprehensive or other community
plan or that the plan was not followed at the time of the
area's development. This factor must be documented by
evidence of adverse or incompatible land-use
relationships, inadequate street layout, improper
subdivision, parcels of inadequate shape and size to meet
contemporary development standards, or other evidence
demonstrating an absence of effective community planning.
(12) The area has 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 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 redevelopment project
area.
(13) The total equalized assessed value of the proposed
redevelopment project area has declined for 3 of the last 5
calendar years for which information is available or is
increasing at an annual rate that is less than the balance
of the municipality for 3 of the last 5 calendar years for
which information is available or is increasing at an
annual rate that is less than the Consumer Price Index for
All Urban Consumers published by the United States
Department of Labor or successor agency for 3 of the last 5
calendar years for which information is available.
(c) "Industrial park" means an area in a blighted or
conservation area suitable for use by any manufacturing,
industrial, research or transportation enterprise, of
facilities to include but not be limited to factories, mills,
processing plants, assembly plants, packing plants,
fabricating plants, industrial distribution centers,
warehouses, repair overhaul or service facilities, freight
terminals, research facilities, test facilities or railroad
facilities.
(d) "Industrial park conservation area" means an area
within the boundaries of a redevelopment project area located
within the territorial limits of a municipality that is a labor
surplus municipality or within 1 1/2 miles of the territorial
limits of a municipality that is a labor surplus municipality
if the area is annexed to the municipality; which area is zoned
as industrial no later than at the time the municipality by
ordinance designates the redevelopment project area, and which
area includes both vacant land suitable for use as an
industrial park and a blighted area or conservation area
contiguous to such vacant land.
(e) "Labor surplus municipality" means a municipality in
which, at any time during the 6 months before the municipality
by ordinance designates an industrial park conservation area,
the unemployment rate was over 6% and was also 100% or more of
the national average unemployment rate for that same time as
published in the United States Department of Labor Bureau of
Labor Statistics publication entitled "The Employment
Situation" or its successor publication. For the purpose of
this subsection, if unemployment rate statistics for the
municipality are not available, the unemployment rate in the
municipality shall be deemed to be the same as the unemployment
rate in the principal county in which the municipality is
located.
(f) "Municipality" shall mean a city, village,
incorporated town, or a township that is located in the
unincorporated portion of a county with 3 million or more
inhabitants, if the county adopted an ordinance that approved
the township's redevelopment plan.
(g) "Initial Sales Tax Amounts" means the amount of taxes
paid under the Retailers' Occupation Tax Act, Use Tax Act,
Service Use Tax Act, the Service Occupation Tax Act, the
Municipal Retailers' Occupation Tax Act, and the Municipal
Service Occupation Tax Act by retailers and servicemen on
transactions at places located in a State Sales Tax Boundary
during the calendar year 1985.
(g-1) "Revised Initial Sales Tax Amounts" means the amount
of taxes paid under the Retailers' Occupation Tax Act, Use Tax
Act, Service Use Tax Act, the Service Occupation Tax Act, the
Municipal Retailers' Occupation Tax Act, and the Municipal
Service Occupation Tax Act by retailers and servicemen on
transactions at places located within the State Sales Tax
Boundary revised pursuant to Section 11-74.4-8a(9) of this Act.
(h) "Municipal Sales Tax Increment" means an amount equal
to the increase in the aggregate amount of taxes paid to a
municipality from the Local Government Tax Fund arising from
sales by retailers and servicemen within the redevelopment
project area or State Sales Tax Boundary, as the case may be,
for as long as the redevelopment project area or State Sales
Tax Boundary, as the case may be, exist over and above the
aggregate amount of taxes as certified by the Illinois
Department of Revenue and paid under the Municipal Retailers'
Occupation Tax Act and the Municipal Service Occupation Tax Act
by retailers and servicemen, on transactions at places of
business located in the redevelopment project area or State
Sales Tax Boundary, as the case may be, during the base year
which shall be the calendar year immediately prior to the year
in which the municipality adopted tax increment allocation
financing. For purposes of computing the aggregate amount of
such taxes for base years occurring prior to 1985, the
Department of Revenue shall determine the Initial Sales Tax
Amounts for such taxes and deduct therefrom an amount equal to
4% of the aggregate amount of taxes per year for each year the
base year is prior to 1985, but not to exceed a total deduction
of 12%. The amount so determined shall be known as the
"Adjusted Initial Sales Tax Amounts". For purposes of
determining the Municipal Sales Tax Increment, the Department
of Revenue shall for each period subtract from the amount paid
to the municipality from the Local Government Tax Fund arising
from sales by retailers and servicemen on transactions located
in the redevelopment project area or the State Sales Tax
Boundary, as the case may be, the certified Initial Sales Tax
Amounts, the Adjusted Initial Sales Tax Amounts or the Revised
Initial Sales Tax Amounts for the Municipal Retailers'
Occupation Tax Act and the Municipal Service Occupation Tax
Act. For the State Fiscal Year 1989, this calculation shall be
made by utilizing the calendar year 1987 to determine the tax
amounts received. For the State Fiscal Year 1990, this
calculation shall be made by utilizing the period from January
1, 1988, until September 30, 1988, to determine the tax amounts
received from retailers and servicemen pursuant to the
Municipal Retailers' Occupation Tax and the Municipal Service
Occupation Tax Act, which shall have deducted therefrom
nine-twelfths of the certified Initial Sales Tax Amounts, the
Adjusted Initial Sales Tax Amounts or the Revised Initial Sales
Tax Amounts as appropriate. For the State Fiscal Year 1991,
this calculation shall be made by utilizing the period from
October 1, 1988, to June 30, 1989, to determine the tax amounts
received from retailers and servicemen pursuant to the
Municipal Retailers' Occupation Tax and the Municipal Service
Occupation Tax Act which shall have deducted therefrom
nine-twelfths of the certified Initial Sales Tax Amounts,
Adjusted Initial Sales Tax Amounts or the Revised Initial Sales
Tax Amounts as appropriate. For every State Fiscal Year
thereafter, the applicable period shall be the 12 months
beginning July 1 and ending June 30 to determine the tax
amounts received which shall have deducted therefrom the
certified Initial Sales Tax Amounts, the Adjusted Initial Sales
Tax Amounts or the Revised Initial Sales Tax Amounts, as the
case may be.
(i) "Net State Sales Tax Increment" means the sum of the
following: (a) 80% of the first $100,000 of State Sales Tax
Increment annually generated within a State Sales Tax Boundary;
(b) 60% of the amount in excess of $100,000 but not exceeding
$500,000 of State Sales Tax Increment annually generated within
a State Sales Tax Boundary; and (c) 40% of all amounts in
excess of $500,000 of State Sales Tax Increment annually
generated within a State Sales Tax Boundary. If, however, a
municipality established a tax increment financing district in
a county with a population in excess of 3,000,000 before
January 1, 1986, and the municipality entered into a contract
or issued bonds after January 1, 1986, but before December 31,
1986, to finance redevelopment project costs within a State
Sales Tax Boundary, then the Net State Sales Tax Increment
means, for the fiscal years beginning July 1, 1990, and July 1,
1991, 100% of the State Sales Tax Increment annually generated
within a State Sales Tax Boundary; and notwithstanding any
other provision of this Act, for those fiscal years the
Department of Revenue shall distribute to those municipalities
100% of their Net State Sales Tax Increment before any
distribution to any other municipality and regardless of
whether or not those other municipalities will receive 100% of
their Net State Sales Tax Increment. For Fiscal Year 1999, and
every year thereafter until the year 2007, for any municipality
that has not entered into a contract or has not issued bonds
prior to June 1, 1988 to finance redevelopment project costs
within a State Sales Tax Boundary, the Net State Sales Tax
Increment shall be calculated as follows: By multiplying the
Net State Sales Tax Increment by 90% in the State Fiscal Year
1999; 80% in the State Fiscal Year 2000; 70% in the State
Fiscal Year 2001; 60% in the State Fiscal Year 2002; 50% in the
State Fiscal Year 2003; 40% in the State Fiscal Year 2004; 30%
in the State Fiscal Year 2005; 20% in the State Fiscal Year
2006; and 10% in the State Fiscal Year 2007. No payment shall
be made for State Fiscal Year 2008 and thereafter.
Municipalities that issued bonds in connection with a
redevelopment project in a redevelopment project area within
the State Sales Tax Boundary prior to July 29, 1991, or that
entered into contracts in connection with a redevelopment
project in a redevelopment project area before June 1, 1988,
shall continue to receive their proportional share of the
Illinois Tax Increment Fund distribution until the date on
which the redevelopment project is completed or terminated. If,
however, a municipality that issued bonds in connection with a
redevelopment project in a redevelopment project area within
the State Sales Tax Boundary prior to July 29, 1991 retires the
bonds prior to June 30, 2007 or a municipality that entered
into contracts in connection with a redevelopment project in a
redevelopment project area before June 1, 1988 completes the
contracts prior to June 30, 2007, then so long as the
redevelopment project is not completed or is not terminated,
the Net State Sales Tax Increment shall be calculated,
beginning on the date on which the bonds are retired or the
contracts are completed, as follows: By multiplying the Net
State Sales Tax Increment by 60% in the State Fiscal Year 2002;
50% in the State Fiscal Year 2003; 40% in the State Fiscal Year
2004; 30% in the State Fiscal Year 2005; 20% in the State
Fiscal Year 2006; and 10% in the State Fiscal Year 2007. No
payment shall be made for State Fiscal Year 2008 and
thereafter. Refunding of any bonds issued prior to July 29,
1991, shall not alter the Net State Sales Tax Increment.
(j) "State Utility Tax Increment Amount" means an amount
equal to the aggregate increase in State electric and gas tax
charges imposed on owners and tenants, other than residential
customers, of properties located within the redevelopment
project area under Section 9-222 of the Public Utilities Act,
over and above the aggregate of such charges as certified by
the Department of Revenue and paid by owners and tenants, other
than residential customers, of properties within the
redevelopment project area during the base year, which shall be
the calendar year immediately prior to the year of the adoption
of the ordinance authorizing tax increment allocation
financing.
(k) "Net State Utility Tax Increment" means the sum of the
following: (a) 80% of the first $100,000 of State Utility Tax
Increment annually generated by a redevelopment project area;
(b) 60% of the amount in excess of $100,000 but not exceeding
$500,000 of the State Utility Tax Increment annually generated
by a redevelopment project area; and (c) 40% of all amounts in
excess of $500,000 of State Utility Tax Increment annually
generated by a redevelopment project area. For the State Fiscal
Year 1999, and every year thereafter until the year 2007, for
any municipality that has not entered into a contract or has
not issued bonds prior to June 1, 1988 to finance redevelopment
project costs within a redevelopment project area, the Net
State Utility Tax Increment shall be calculated as follows: By
multiplying the Net State Utility Tax Increment by 90% in the
State Fiscal Year 1999; 80% in the State Fiscal Year 2000; 70%
in the State Fiscal Year 2001; 60% in the State Fiscal Year
2002; 50% in the State Fiscal Year 2003; 40% in the State
Fiscal Year 2004; 30% in the State Fiscal Year 2005; 20% in the
State Fiscal Year 2006; and 10% in the State Fiscal Year 2007.
No payment shall be made for the State Fiscal Year 2008 and
thereafter.
Municipalities that issue bonds in connection with the
redevelopment project during the period from June 1, 1988 until
3 years after the effective date of this Amendatory Act of 1988
shall receive the Net State Utility Tax Increment, subject to
appropriation, for 15 State Fiscal Years after the issuance of
such bonds. For the 16th through the 20th State Fiscal Years
after issuance of the bonds, the Net State Utility Tax
Increment shall be calculated as follows: By multiplying the
Net State Utility Tax Increment by 90% in year 16; 80% in year
17; 70% in year 18; 60% in year 19; and 50% in year 20.
Refunding of any bonds issued prior to June 1, 1988, shall not
alter the revised Net State Utility Tax Increment payments set
forth above.
(l) "Obligations" mean bonds, loans, debentures, notes,
special certificates or other evidence of indebtedness issued
by the municipality to carry out a redevelopment project or to
refund outstanding obligations.
(m) "Payment in lieu of taxes" means those estimated tax
revenues from real property in a redevelopment project area
derived from real property that has been acquired by a
municipality which according to the redevelopment project or
plan is to be used for a private use which taxing districts
would have received had a municipality not acquired the real
property and adopted tax increment allocation financing and
which would result from levies made after the time of the
adoption of tax increment allocation financing to the time the
current equalized value of real property in the redevelopment
project area exceeds the total initial equalized value of real
property in said area.
(n) "Redevelopment plan" means the comprehensive program
of the municipality for development or redevelopment intended
by the payment of redevelopment project costs to reduce or
eliminate those conditions the existence of which qualified the
redevelopment project area as a "blighted area" or
"conservation area" or combination thereof or "industrial park
conservation area," and thereby to enhance the tax bases of the
taxing districts which extend into the redevelopment project
area, provided that, with respect to redevelopment project
areas described in subsections (p-1) and (p-2), "redevelopment
plan" means the comprehensive program of the affected
municipality for the development of qualifying transit
facilities. On and after November 1, 1999 (the effective date
of Public Act 91-478), no redevelopment plan may be approved or
amended that includes the development of vacant land (i) with a
golf course and related clubhouse and other facilities or (ii)
designated by federal, State, county, or municipal government
as public land for outdoor recreational activities or for
nature preserves and used for that purpose within 5 years prior
to the adoption of the redevelopment plan. For the purpose of
this subsection, "recreational activities" is limited to mean
camping and hunting. Each redevelopment plan shall set forth in
writing the program to be undertaken to accomplish the
objectives and shall include but not be limited to:
(A) an itemized list of estimated redevelopment
project costs;
(B) evidence indicating that the redevelopment project
area on the whole has not been subject to growth and
development through investment by private enterprise,
provided that such evidence shall not be required for any
redevelopment project area located within a transit
facility improvement area established pursuant to Section
11-74.4-3.3;
(C) an assessment of any financial impact of the
redevelopment project area on or any increased demand for
services from any taxing district affected by the plan and
any program to address such financial impact or increased
demand;
(D) the sources of funds to pay costs;
(E) the nature and term of the obligations to be
issued;
(F) the most recent equalized assessed valuation of the
redevelopment project area;
(G) an estimate as to the equalized assessed valuation
after redevelopment and the general land uses to apply in
the redevelopment project area;
(H) a commitment to fair employment practices and an
affirmative action plan;
(I) if it concerns an industrial park conservation
area, the plan shall also include a general description of
any proposed developer, user and tenant of any property, a
description of the type, structure and general character of
the facilities to be developed, a description of the type,
class and number of new employees to be employed in the
operation of the facilities to be developed; and
(J) if property is to be annexed to the municipality,
the plan shall include the terms of the annexation
agreement.
The provisions of items (B) and (C) of this subsection (n)
shall not apply to a municipality that before March 14, 1994
(the effective date of Public Act 88-537) had fixed, either by
its corporate authorities or by a commission designated under
subsection (k) of Section 11-74.4-4, a time and place for a
public hearing as required by subsection (a) of Section
11-74.4-5. No redevelopment plan shall be adopted unless a
municipality complies with all of the following requirements:
(1) The municipality finds that the redevelopment
project area on the whole has not been subject to growth
and development through investment by private enterprise
and would not reasonably be anticipated to be developed
without the adoption of the redevelopment plan, provided,
however, that such a finding shall not be required with
respect to any redevelopment project area located within a
transit facility improvement area established pursuant to
Section 11-74.4-3.3.
(2) The municipality finds that the redevelopment plan
and project conform to the comprehensive plan for the
development of the municipality as a whole, or, for
municipalities with a population of 100,000 or more,
regardless of when the redevelopment plan and project was
adopted, the redevelopment plan and project either: (i)
conforms to the strategic economic development or
redevelopment plan issued by the designated planning
authority of the municipality, or (ii) includes land uses
that have been approved by the planning commission of the
municipality.
(3) The redevelopment plan establishes the estimated
dates of completion of the redevelopment project and
retirement of obligations issued to finance redevelopment
project costs. Those dates may not be later than the dates
set forth under Section 11-74.4-3.5.
A municipality may by municipal ordinance amend an
existing redevelopment plan to conform to this paragraph
(3) as amended by Public Act 91-478, which municipal
ordinance may be adopted without further hearing or notice
and without complying with the procedures provided in this
Act pertaining to an amendment to or the initial approval
of a redevelopment plan and project and designation of a
redevelopment project area.
(3.5) The municipality finds, in the case of an
industrial park conservation area, also that the
municipality is a labor surplus municipality and that the
implementation of the redevelopment plan will reduce
unemployment, create new jobs and by the provision of new
facilities enhance the tax base of the taxing districts
that extend into the redevelopment project area.
(4) If any incremental revenues are being utilized
under Section 8(a)(1) or 8(a)(2) of this Act in
redevelopment project areas approved by ordinance after
January 1, 1986, the municipality finds: (a) that the
redevelopment project area would not reasonably be
developed without the use of such incremental revenues, and
(b) that such incremental revenues will be exclusively
utilized for the development of the redevelopment project
area.
(5) If: (a) the redevelopment plan will not result in
displacement of residents from 10 or more inhabited
residential units, and the municipality certifies in the
plan that such displacement will not result from the plan;
or (b) the redevelopment plan is for a redevelopment
project area located within a transit facility improvement
area established pursuant to Section 11-74.4-3.3, and the
applicable project is subject to the process for evaluation
of environmental effects under the National Environmental
Policy Act of 1969, 42 U.S.C. 4321 et seq., then a housing
impact study need not be performed. If, however, the
redevelopment plan would result in the displacement of
residents from 10 or more inhabited residential units, or
if the redevelopment project area contains 75 or more
inhabited residential units and no certification is made,
then the municipality shall prepare, as part of the
separate feasibility report required by subsection (a) of
Section 11-74.4-5, a housing impact study.
Part I of the housing impact study shall include (i)
data as to whether the residential units are single family
or multi-family units, (ii) the number and type of rooms
within the units, if that information is available, (iii)
whether the units are inhabited or uninhabited, as
determined not less than 45 days before the date that the
ordinance or resolution required by subsection (a) of
Section 11-74.4-5 is passed, and (iv) data as to the racial
and ethnic composition of the residents in the inhabited
residential units. The data requirement as to the racial
and ethnic composition of the residents in the inhabited
residential units shall be deemed to be fully satisfied by
data from the most recent federal census.
Part II of the housing impact study shall identify the
inhabited residential units in the proposed redevelopment
project area that are to be or may be removed. If inhabited
residential units are to be removed, then the housing
impact study shall identify (i) the number and location of
those units that will or may be removed, (ii) the
municipality's plans for relocation assistance for those
residents in the proposed redevelopment project area whose
residences are to be removed, (iii) the availability of
replacement housing for those residents whose residences
are to be removed, and shall identify the type, location,
and cost of the housing, and (iv) the type and extent of
relocation assistance to be provided.
(6) On and after November 1, 1999, the housing impact
study required by paragraph (5) shall be incorporated in
the redevelopment plan for the redevelopment project area.
(7) On and after November 1, 1999, no redevelopment
plan shall be adopted, nor an existing plan amended, nor
shall residential housing that is occupied by households of
low-income and very low-income persons in currently
existing redevelopment project areas be removed after
November 1, 1999 unless the redevelopment plan provides,
with respect to inhabited housing units that are to be
removed for households of low-income and very low-income
persons, affordable housing and relocation assistance not
less than that which would be provided under the federal
Uniform Relocation Assistance and Real Property
Acquisition Policies Act of 1970 and the regulations under
that Act, including the eligibility criteria. Affordable
housing may be either existing or newly constructed
housing. For purposes of this paragraph (7), "low-income
households", "very low-income households", and "affordable
housing" have the meanings set forth in the Illinois
Affordable Housing Act. The municipality shall make a good
faith effort to ensure that this affordable housing is
located in or near the redevelopment project area within
the municipality.
(8) On and after November 1, 1999, if, after the
adoption of the redevelopment plan for the redevelopment
project area, any municipality desires to amend its
redevelopment plan to remove more inhabited residential
units than specified in its original redevelopment plan,
that change shall be made in accordance with the procedures
in subsection (c) of Section 11-74.4-5.
(9) For redevelopment project areas designated prior
to November 1, 1999, the redevelopment plan may be amended
without further joint review board meeting or hearing,
provided that the municipality shall give notice of any
such changes by mail to each affected taxing district and
registrant on the interested party registry, to authorize
the municipality to expend tax increment revenues for
redevelopment project costs defined by paragraphs (5) and
(7.5), subparagraphs (E) and (F) of paragraph (11), and
paragraph (11.5) of subsection (q) of Section 11-74.4-3, so
long as the changes do not increase the total estimated
redevelopment project costs set out in the redevelopment
plan by more than 5% after adjustment for inflation from
the date the plan was adopted.
(o) "Redevelopment project" means any public and private
development project in furtherance of the objectives of a
redevelopment plan. On and after November 1, 1999 (the
effective date of Public Act 91-478), no redevelopment plan may
be approved or amended that includes the development of vacant
land (i) with a golf course and related clubhouse and other
facilities or (ii) designated by federal, State, county, or
municipal government as public land for outdoor recreational
activities or for nature preserves and used for that purpose
within 5 years prior to the adoption of the redevelopment plan.
For the purpose of this subsection, "recreational activities"
is limited to mean camping and hunting.
(p) "Redevelopment project area" means an area designated
by the municipality, which is not less in the aggregate than 1
1/2 acres and in respect to which the municipality has made a
finding that there exist conditions which cause the area to be
classified as an industrial park conservation area or a
blighted area or a conservation area, or a combination of both
blighted areas and conservation areas.
(p-1) Notwithstanding any provision of this Act to the
contrary, on and after August 25, 2009 (the effective date of
Public Act 96-680), a redevelopment project area may include
areas within a one-half mile radius of an existing or proposed
Regional Transportation Authority Suburban Transit Access
Route (STAR Line) station without a finding that the area is
classified as an industrial park conservation area, a blighted
area, a conservation area, or a combination thereof, but only
if the municipality receives unanimous consent from the joint
review board created to review the proposed redevelopment
project area.
(p-2) Notwithstanding any provision of this Act to the
contrary, on and after the effective date of this amendatory
Act of the 99th General Assembly, a redevelopment project area
may include areas within a transit facility improvement area
that has been established pursuant to Section 11-74.4-3.3
without a finding that the area is classified as an industrial
park conservation area, a blighted area, a conservation area,
or any combination thereof.
(q) "Redevelopment project costs", except for
redevelopment project areas created pursuant to subsection
(p-1) or (p-2), means and includes the sum total of all
reasonable or necessary costs incurred or estimated to be
incurred, and any such costs incidental to a redevelopment plan
and a redevelopment project. Such costs include, without
limitation, the following:
(1) Costs of studies, surveys, development of plans,
and specifications, implementation and administration of
the redevelopment plan including but not limited to staff
and professional service costs for architectural,
engineering, legal, financial, planning or other services,
provided however that no charges for professional services
may be based on a percentage of the tax increment
collected; except that on and after November 1, 1999 (the
effective date of Public Act 91-478), no contracts for
professional services, excluding architectural and
engineering services, may be entered into if the terms of
the contract extend beyond a period of 3 years. In
addition, "redevelopment project costs" shall not include
lobbying expenses. After consultation with the
municipality, each tax increment consultant or advisor to a
municipality that plans to designate or has designated a
redevelopment project area shall inform the municipality
in writing of any contracts that the consultant or advisor
has entered into with entities or individuals that have
received, or are receiving, payments financed by tax
increment revenues produced by the redevelopment project
area with respect to which the consultant or advisor has
performed, or will be performing, service for the
municipality. This requirement shall be satisfied by the
consultant or advisor before the commencement of services
for the municipality and thereafter whenever any other
contracts with those individuals or entities are executed
by the consultant or advisor;
(1.5) After July 1, 1999, annual administrative costs
shall not include general overhead or administrative costs
of the municipality that would still have been incurred by
the municipality if the municipality had not designated a
redevelopment project area or approved a redevelopment
plan;
(1.6) The cost of marketing sites within the
redevelopment project area to prospective businesses,
developers, and investors;
(2) Property assembly costs, including but not limited
to acquisition of land and other property, real or
personal, or rights or interests therein, demolition of
buildings, site preparation, site improvements that serve
as an engineered barrier addressing ground level or below
ground environmental contamination, including, but not
limited to parking lots and other concrete or asphalt
barriers, and the clearing and grading of land;
(3) Costs of rehabilitation, reconstruction or repair
or remodeling of existing public or private buildings,
fixtures, and leasehold improvements; and the cost of
replacing an existing public building if pursuant to the
implementation of a redevelopment project the existing
public building is to be demolished to use the site for
private investment or devoted to a different use requiring
private investment; including any direct or indirect costs
relating to Green Globes or LEED certified construction
elements or construction elements with an equivalent
certification;
(4) Costs of the construction of public works or
improvements, including any direct or indirect costs
relating to Green Globes or LEED certified construction
elements or construction elements with an equivalent
certification, except that on and after November 1, 1999,
redevelopment project costs shall not include the cost of
constructing a new municipal public building principally
used to provide offices, storage space, or conference
facilities or vehicle storage, maintenance, or repair for
administrative, public safety, or public works personnel
and that is not intended to replace an existing public
building as provided under paragraph (3) of subsection (q)
of Section 11-74.4-3 unless either (i) the construction of
the new municipal building implements a redevelopment
project that was included in a redevelopment plan that was
adopted by the municipality prior to November 1, 1999, (ii)
the municipality makes a reasonable determination in the
redevelopment plan, supported by information that provides
the basis for that determination, that the new municipal
building is required to meet an increase in the need for
public safety purposes anticipated to result from the
implementation of the redevelopment plan, or (iii) the new
municipal public building is for the storage, maintenance,
or repair of transit vehicles and is located in a transit
facility improvement area that has been established
pursuant to Section 11-74.4-3.3;
(5) Costs of job training and retraining projects,
including the cost of "welfare to work" programs
implemented by businesses located within the redevelopment
project area;
(6) Financing costs, including but not limited to all
necessary and incidental expenses related to the issuance
of obligations and which may include payment of interest on
any obligations issued hereunder including interest
accruing during the estimated period of construction of any
redevelopment project for which such obligations are
issued and for not exceeding 36 months thereafter and
including reasonable reserves related thereto;
(7) To the extent the municipality by written agreement
accepts and approves the same, all or a portion of a taxing
district's capital costs resulting from the redevelopment
project necessarily incurred or to be incurred within a
taxing district in furtherance of the objectives of the
redevelopment plan and project;
(7.5) For redevelopment project areas designated (or
redevelopment project areas amended to add or increase the
number of tax-increment-financing assisted housing units)
on or after November 1, 1999, an elementary, secondary, or
unit school district's increased costs attributable to
assisted housing units located within the redevelopment
project area for which the developer or redeveloper
receives financial assistance through an agreement with
the municipality or because the municipality incurs the
cost of necessary infrastructure improvements within the
boundaries of the assisted housing sites necessary for the
completion of that housing as authorized by this Act, and
which costs shall be paid by the municipality from the
Special Tax Allocation Fund when the tax increment revenue
is received as a result of the assisted housing units and
shall be calculated annually as follows:
(A) for foundation districts, excluding any school
district in a municipality with a population in excess
of 1,000,000, by multiplying the district's increase
in attendance resulting from the net increase in new
students enrolled in that school district who reside in
housing units within the redevelopment project area
that have received financial assistance through an
agreement with the municipality or because the
municipality incurs the cost of necessary
infrastructure improvements within the boundaries of
the housing sites necessary for the completion of that
housing as authorized by this Act since the designation
of the redevelopment project area by the most recently
available per capita tuition cost as defined in Section
10-20.12a of the School Code less any increase in
general State aid as defined in Section 18-8.05 of the
School Code or evidence-based funding as defined in
Section 18-8.15 of the School Code attributable to
these added new students subject to the following
annual limitations:
(i) for unit school districts with a district
average 1995-96 Per Capita Tuition Charge of less
than $5,900, no more than 25% of the total amount
of property tax increment revenue produced by
those housing units that have received tax
increment finance assistance under this Act;
(ii) for elementary school districts with a
district average 1995-96 Per Capita Tuition Charge
of less than $5,900, no more than 17% of the total
amount of property tax increment revenue produced
by those housing units that have received tax
increment finance assistance under this Act; and
(iii) for secondary school districts with a
district average 1995-96 Per Capita Tuition Charge
of less than $5,900, no more than 8% of the total
amount of property tax increment revenue produced
by those housing units that have received tax
increment finance assistance under this Act.
(B) For alternate method districts, flat grant
districts, and foundation districts with a district
average 1995-96 Per Capita Tuition Charge equal to or
more than $5,900, excluding any school district with a
population in excess of 1,000,000, by multiplying the
district's increase in attendance resulting from the
net increase in new students enrolled in that school
district who reside in housing units within the
redevelopment project area that have received
financial assistance through an agreement with the
municipality or because the municipality incurs the
cost of necessary infrastructure improvements within
the boundaries of the housing sites necessary for the
completion of that housing as authorized by this Act
since the designation of the redevelopment project
area by the most recently available per capita tuition
cost as defined in Section 10-20.12a of the School Code
less any increase in general state aid as defined in
Section 18-8.05 of the School Code or evidence-based
funding as defined in Section 18-8.15 of the School
Code attributable to these added new students subject
to the following annual limitations:
(i) for unit school districts, no more than 40%
of the total amount of property tax increment
revenue produced by those housing units that have
received tax increment finance assistance under
this Act;
(ii) for elementary school districts, no more
than 27% of the total amount of property tax
increment revenue produced by those housing units
that have received tax increment finance
assistance under this Act; and
(iii) for secondary school districts, no more
than 13% of the total amount of property tax
increment revenue produced by those housing units
that have received tax increment finance
assistance under this Act.
(C) For any school district in a municipality with
a population in excess of 1,000,000, the following
restrictions shall apply to the reimbursement of
increased costs under this paragraph (7.5):
(i) no increased costs shall be reimbursed
unless the school district certifies that each of
the schools affected by the assisted housing
project is at or over its student capacity;
(ii) the amount reimbursable shall be reduced
by the value of any land donated to the school
district by the municipality or developer, and by
the value of any physical improvements made to the
schools by the municipality or developer; and
(iii) the amount reimbursed may not affect
amounts otherwise obligated by the terms of any
bonds, notes, or other funding instruments, or the
terms of any redevelopment agreement.
Any school district seeking payment under this
paragraph (7.5) shall, after July 1 and before
September 30 of each year, provide the municipality
with reasonable evidence to support its claim for
reimbursement before the municipality shall be
required to approve or make the payment to the school
district. If the school district fails to provide the
information during this period in any year, it shall
forfeit any claim to reimbursement for that year.
School districts may adopt a resolution waiving the
right to all or a portion of the reimbursement
otherwise required by this paragraph (7.5). By
acceptance of this reimbursement the school district
waives the right to directly or indirectly set aside,
modify, or contest in any manner the establishment of
the redevelopment project area or projects;
(7.7) For redevelopment project areas designated (or
redevelopment project areas amended to add or increase the
number of tax-increment-financing assisted housing units)
on or after January 1, 2005 (the effective date of Public
Act 93-961), a public library district's increased costs
attributable to assisted housing units located within the
redevelopment project area for which the developer or
redeveloper receives financial assistance through an
agreement with the municipality or because the
municipality incurs the cost of necessary infrastructure
improvements within the boundaries of the assisted housing
sites necessary for the completion of that housing as
authorized by this Act shall be paid to the library
district by the municipality from the Special Tax
Allocation Fund when the tax increment revenue is received
as a result of the assisted housing units. This paragraph
(7.7) applies only if (i) the library district is located
in a county that is subject to the Property Tax Extension
Limitation Law or (ii) the library district is not located
in a county that is subject to the Property Tax Extension
Limitation Law but the district is prohibited by any other
law from increasing its tax levy rate without a prior voter
referendum.
The amount paid to a library district under this
paragraph (7.7) shall be calculated by multiplying (i) the
net increase in the number of persons eligible to obtain a
library card in that district who reside in housing units
within the redevelopment project area that have received
financial assistance through an agreement with the
municipality or because the municipality incurs the cost of
necessary infrastructure improvements within the
boundaries of the housing sites necessary for the
completion of that housing as authorized by this Act since
the designation of the redevelopment project area by (ii)
the per-patron cost of providing library services so long
as it does not exceed $120. The per-patron cost shall be
the Total Operating Expenditures Per Capita for the library
in the previous fiscal year. The municipality may deduct
from the amount that it must pay to a library district
under this paragraph any amount that it has voluntarily
paid to the library district from the tax increment
revenue. The amount paid to a library district under this
paragraph (7.7) shall be no more than 2% of the amount
produced by the assisted housing units and deposited into
the Special Tax Allocation Fund.
A library district is not eligible for any payment
under this paragraph (7.7) unless the library district has
experienced an increase in the number of patrons from the
municipality that created the tax-increment-financing
district since the designation of the redevelopment
project area.
Any library district seeking payment under this
paragraph (7.7) shall, after July 1 and before September 30
of each year, provide the municipality with convincing
evidence to support its claim for reimbursement before the
municipality shall be required to approve or make the
payment to the library district. If the library district
fails to provide the information during this period in any
year, it shall forfeit any claim to reimbursement for that
year. Library districts may adopt a resolution waiving the
right to all or a portion of the reimbursement otherwise
required by this paragraph (7.7). By acceptance of such
reimbursement, the library district shall forfeit any
right to directly or indirectly set aside, modify, or
contest in any manner whatsoever the establishment of the
redevelopment project area or projects;
(8) Relocation costs to the extent that a municipality
determines that relocation costs shall be paid or is
required to make payment of relocation costs by federal or
State law or in order to satisfy subparagraph (7) of
subsection (n);
(9) Payment in lieu of taxes;
(10) Costs of job training, retraining, advanced
vocational education or career education, 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
(i) 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 a redevelopment project
area; and (ii) when incurred by a taxing district or taxing
districts other than the municipality, are set forth in a
written agreement by or among the municipality 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 available or to be
available, itemized costs of the program and sources of
funds to pay for the same, and the term of the agreement.
Such costs include, specifically, the payment by community
college districts of costs pursuant to Sections 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 10-22.20a
and 10-23.3a of the School Code;
(11) Interest cost incurred by a redeveloper related to
the construction, renovation or rehabilitation of a
redevelopment project provided that:
(A) such costs are to be paid directly from the
special tax allocation fund established pursuant to
this Act;
(B) such payments in any one year may not exceed
30% of the annual interest costs incurred by the
redeveloper with regard to the redevelopment project
during that year;
(C) if there are not sufficient funds available in
the special tax allocation fund to make the payment
pursuant to this paragraph (11) then the amounts so due
shall accrue and be payable when sufficient funds are
available in the special tax allocation fund;
(D) the total of such interest payments paid
pursuant to this Act may not exceed 30% of the total
(i) cost paid or incurred by the redeveloper for the
redevelopment project plus (ii) redevelopment project
costs excluding any property assembly costs and any
relocation costs incurred by a municipality pursuant
to this Act;
(E) the cost limits set forth in subparagraphs (B)
and (D) of paragraph (11) shall be modified for the
financing of rehabilitated or new housing units for
low-income households and very low-income households,
as defined in Section 3 of the Illinois Affordable
Housing Act. The percentage of 75% shall be substituted
for 30% in subparagraphs (B) and (D) of paragraph (11);
and
(F) instead of the eligible costs provided by
subparagraphs (B) and (D) of paragraph (11), as
modified by this subparagraph, and notwithstanding any
other provisions of this Act to the contrary, the
municipality may pay from tax increment revenues up to
50% of the cost of construction of new housing units to
be occupied by low-income households and very
low-income households as defined in Section 3 of the
Illinois Affordable Housing Act. The cost of
construction of those units may be derived from the
proceeds of bonds issued by the municipality under this
Act or other constitutional or statutory authority or
from other sources of municipal revenue that may be
reimbursed from tax increment revenues or the proceeds
of bonds issued to finance the construction of that
housing.
The eligible costs provided under this
subparagraph (F) of paragraph (11) shall be an eligible
cost for the construction, renovation, and
rehabilitation of all low and very low-income housing
units, as defined in Section 3 of the Illinois
Affordable Housing Act, within the redevelopment
project area. If the low and very low-income units are
part of a residential redevelopment project that
includes units not affordable to low and very
low-income households, only the low and very
low-income units shall be eligible for benefits under
this subparagraph (F) of paragraph (11). The standards
for maintaining the occupancy by low-income households
and very low-income households, as defined in Section 3
of the Illinois Affordable Housing Act, of those units
constructed with eligible costs made available under
the provisions of this subparagraph (F) of paragraph
(11) shall be established by guidelines adopted by the
municipality. The responsibility for annually
documenting the initial occupancy of the units by
low-income households and very low-income households,
as defined in Section 3 of the Illinois Affordable
Housing Act, shall be that of the then current owner of
the property. For ownership units, the guidelines will
provide, at a minimum, for a reasonable recapture of
funds, or other appropriate methods designed to
preserve the original affordability of the ownership
units. For rental units, the guidelines will provide,
at a minimum, for the affordability of rent to low and
very low-income households. As units become available,
they shall be rented to income-eligible tenants. The
municipality may modify these guidelines from time to
time; the guidelines, however, shall be in effect for
as long as tax increment revenue is being used to pay
for costs associated with the units or for the
retirement of bonds issued to finance the units or for
the life of the redevelopment project area, whichever
is later;
(11.5) If the redevelopment project area is located
within a municipality with a population of more than
100,000, the cost of day care services for children of
employees from low-income families working for businesses
located within the redevelopment project area and all or a
portion of the cost of operation of day care centers
established by redevelopment project area businesses to
serve employees from low-income families working in
businesses located in the redevelopment project area. For
the purposes of this paragraph, "low-income families"
means families whose annual income does not exceed 80% of
the municipal, county, or regional median income, adjusted
for family size, as the annual income and municipal,
county, or regional median income are determined from time
to time by the United States Department of Housing and
Urban Development.
(12) Costs relating to the development of urban
agricultural areas under Division 15.2 of the Illinois
Municipal Code.
Unless explicitly stated herein the cost of construction of
new privately-owned buildings shall not be an eligible
redevelopment project cost.
After November 1, 1999 (the effective date of Public Act
91-478), none of the redevelopment project costs enumerated in
this subsection shall be eligible redevelopment project costs
if those costs would provide direct financial support to a
retail entity initiating operations in the redevelopment
project area while terminating operations at another Illinois
location within 10 miles of the redevelopment project area but
outside the boundaries of the redevelopment project area
municipality. For purposes of this paragraph, termination
means a closing of a retail operation that is directly related
to the opening of the same operation or like retail entity
owned or operated by more than 50% of the original ownership in
a redevelopment project area, but it does not mean closing an
operation for reasons beyond the control of the retail entity,
as documented by the retail entity, subject to a reasonable
finding by the municipality that the current location contained
inadequate space, had become economically obsolete, or was no
longer a viable location for the retailer or serviceman.
No cost shall be a redevelopment project cost in a
redevelopment project area if used to demolish, remove, or
substantially modify a historic resource, after August 26, 2008
(the effective date of Public Act 95-934), unless no prudent
and feasible alternative exists. "Historic resource" for the
purpose of this paragraph means (i) a place or structure that
is included or eligible for inclusion on the National Register
of Historic Places or (ii) a contributing structure in a
district on the National Register of Historic Places. This
paragraph does not apply to a place or structure for which
demolition, removal, or modification is subject to review by
the preservation agency of a Certified Local Government
designated as such by the National Park Service of the United
States Department of the Interior.
If a special service area has been established pursuant to
the Special Service Area Tax Act or Special Service Area Tax
Law, then any tax increment revenues derived from the tax
imposed pursuant to the Special Service Area Tax Act or Special
Service Area Tax Law may be used within the redevelopment
project area for the purposes permitted by that Act or Law as
well as the purposes permitted by this Act.
(q-1) For redevelopment project areas created pursuant to
subsection (p-1), redevelopment project costs are limited to
those costs in paragraph (q) that are related to the existing
or proposed Regional Transportation Authority Suburban Transit
Access Route (STAR Line) station.
(q-2) For a redevelopment project area located within a
transit facility improvement area established pursuant to
Section 11-74.4-3.3, redevelopment project costs means those
costs described in subsection (q) that are related to the
construction, reconstruction, rehabilitation, remodeling, or
repair of any existing or proposed transit facility.
(r) "State Sales Tax Boundary" means the redevelopment
project area or the amended redevelopment project area
boundaries which are determined pursuant to subsection (9) of
Section 11-74.4-8a of this Act. The Department of Revenue shall
certify pursuant to subsection (9) of Section 11-74.4-8a the
appropriate boundaries eligible for the determination of State
Sales Tax Increment.
(s) "State Sales Tax Increment" means an amount equal to
the increase in the aggregate amount of taxes paid by retailers
and servicemen, other than retailers and servicemen subject to
the Public Utilities Act, on transactions at places of business
located within a State Sales Tax Boundary pursuant to the
Retailers' Occupation Tax Act, the Use Tax Act, the Service Use
Tax Act, and the Service Occupation Tax Act, except such
portion of such increase that is paid into the State and Local
Sales Tax Reform Fund, the Local Government Distributive Fund,
the Local Government Tax Fund and the County and Mass Transit
District Fund, for as long as State participation exists, over
and above the Initial Sales Tax Amounts, Adjusted Initial Sales
Tax Amounts or the Revised Initial Sales Tax Amounts for such
taxes as certified by the Department of Revenue and paid under
those Acts by retailers and servicemen on transactions at
places of business located within the State Sales Tax Boundary
during the base year which shall be the calendar year
immediately prior to the year in which the municipality adopted
tax increment allocation financing, less 3.0% of such amounts
generated under the Retailers' Occupation Tax Act, Use Tax Act
and Service Use Tax Act and the Service Occupation Tax Act,
which sum shall be appropriated to the Department of Revenue to
cover its costs of administering and enforcing this Section.
For purposes of computing the aggregate amount of such taxes
for base years occurring prior to 1985, the Department of
Revenue shall compute the Initial Sales Tax Amount for such
taxes and deduct therefrom an amount equal to 4% of the
aggregate amount of taxes per year for each year the base year
is prior to 1985, but not to exceed a total deduction of 12%.
The amount so determined shall be known as the "Adjusted
Initial Sales Tax Amount". For purposes of determining the
State Sales Tax Increment the Department of Revenue shall for
each period subtract from the tax amounts received from
retailers and servicemen on transactions located in the State
Sales Tax Boundary, the certified Initial Sales Tax Amounts,
Adjusted Initial Sales Tax Amounts or Revised Initial Sales Tax
Amounts for the Retailers' Occupation Tax Act, the Use Tax Act,
the Service Use Tax Act and the Service Occupation Tax Act. For
the State Fiscal Year 1989 this calculation shall be made by
utilizing the calendar year 1987 to determine the tax amounts
received. For the State Fiscal Year 1990, this calculation
shall be made by utilizing the period from January 1, 1988,
until September 30, 1988, to determine the tax amounts received
from retailers and servicemen, which shall have deducted
therefrom nine-twelfths of the certified Initial Sales Tax
Amounts, Adjusted Initial Sales Tax Amounts or the Revised
Initial Sales Tax Amounts as appropriate. For the State Fiscal
Year 1991, this calculation shall be made by utilizing the
period from October 1, 1988, until June 30, 1989, to determine
the tax amounts received from retailers and servicemen, which
shall have deducted therefrom nine-twelfths of the certified
Initial State Sales Tax Amounts, Adjusted Initial Sales Tax
Amounts or the Revised Initial Sales Tax Amounts as
appropriate. For every State Fiscal Year thereafter, the
applicable period shall be the 12 months beginning July 1 and
ending on June 30, to determine the tax amounts received which
shall have deducted therefrom the certified Initial Sales Tax
Amounts, Adjusted Initial Sales Tax Amounts or the Revised
Initial Sales Tax Amounts. Municipalities intending to receive
a distribution of State Sales Tax Increment must report a list
of retailers to the Department of Revenue by October 31, 1988
and by July 31, of each year thereafter.
(t) "Taxing districts" means counties, townships, cities
and incorporated towns and villages, school, road, park,
sanitary, mosquito abatement, forest preserve, public health,
fire protection, river conservancy, tuberculosis sanitarium
and any other municipal corporations or districts with the
power to levy taxes.
(u) "Taxing districts' capital costs" means those costs of
taxing districts for capital improvements that are found by the
municipal corporate authorities to be necessary and directly
result from the redevelopment project.
(v) As used in subsection (a) of Section 11-74.4-3 of this
Act, "vacant land" means any parcel or combination of parcels
of real property without industrial, commercial, and
residential buildings which has not been used for commercial
agricultural purposes within 5 years prior to the designation
of the redevelopment project area, unless the parcel is
included in an industrial park conservation area or the parcel
has been subdivided; provided that if the parcel was part of a
larger tract that has been divided into 3 or more smaller
tracts that were accepted for recording during the period from
1950 to 1990, then the parcel shall be deemed to have been
subdivided, and all proceedings and actions of the municipality
taken in that connection with respect to any previously
approved or designated redevelopment project area or amended
redevelopment project area are hereby validated and hereby
declared to be legally sufficient for all purposes of this Act.
For purposes of this Section and only for land subject to the
subdivision requirements of the Plat Act, land is subdivided
when the original plat of the proposed Redevelopment Project
Area or relevant portion thereof has been properly certified,
acknowledged, approved, and recorded or filed in accordance
with the Plat Act and a preliminary plat, if any, for any
subsequent phases of the proposed Redevelopment Project Area or
relevant portion thereof has been properly approved and filed
in accordance with the applicable ordinance of the
municipality.
(w) "Annual Total Increment" means the sum of each
municipality's annual Net Sales Tax Increment and each
municipality's annual Net Utility Tax Increment. The ratio of
the Annual Total Increment of each municipality to the Annual
Total Increment for all municipalities, as most recently
calculated by the Department, shall determine the proportional
shares of the Illinois Tax Increment Fund to be distributed to
each municipality.
(x) "LEED certified" means any certification level of
construction elements by a qualified Leadership in Energy and
Environmental Design Accredited Professional as determined by
the U.S. Green Building Council.
(y) "Green Globes certified" means any certification level
of construction elements by a qualified Green Globes
Professional as determined by the Green Building Initiative.
(Source: P.A. 99-792, eff. 8-12-16; 100-201, eff. 8-18-17;
100-465, eff. 8-31-17.)
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