Bill Text: IL HB5724 | 2017-2018 | 100th General Assembly | Introduced

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Bill Title: Amends the Tax Increment Allocation Redevelopment Act of the Illinois Municipal Code. Provides that on or after the effective date of the amendatory Act, tax increment revenues may be utilized for jointly undertaken and performed redevelopment projects only in an amount equal to the percentage of eligible costs undertaken within the redevelopment project area that received the revenue. Provides that tax increment revenues received in one redevelopment project area may not be used for eligible costs in another redevelopment project area and tax increment revenues may not be transferred to another redevelopment project area. Provides that if there are any contracts or agreements in force on the effective date of the amendatory Act, tax increment revenues may continue to be used or transferred to another redevelopment project area or utilized for jointly undertaken and performed redevelopment projects only to the extent necessary to comply with the contract or agreement. Provides that a municipality must post on its website, at least quarterly, how all revenue received under this Act was expended, including to whom each expense was paid.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Failed) 2019-01-08 - Session Sine Die [HB5724 Detail]

Download: Illinois-2017-HB5724-Introduced.html

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100TH GENERAL ASSEMBLY State of Illinois 2017 and 2018 HB5724 Introduced , by Rep. Sonya M. Harper SYNOPSIS AS INTRODUCED:
65 ILCS 5/11-74.4-4 from Ch. 24, par. 11-74.4-4
65 ILCS 5/11-74.4-4.3 new
65 ILCS 5/11-74.4-8e new
Amends the Tax Increment Allocation Redevelopment Act of the Illinois Municipal Code. Provides that on or after the effective date of the amendatory Act, tax increment revenues may be utilized for jointly undertaken and performed redevelopment projects only in an amount equal to the percentage of eligible costs undertaken within the redevelopment project area that received the revenue. Provides that tax increment revenues received in one redevelopment project area may not be used for eligible costs in another redevelopment project area and tax increment revenues may not be transferred to another redevelopment project area. Provides that if there are any contracts or agreements in force on the effective date of the amendatory Act, tax increment revenues may continue to be used or transferred to another redevelopment project area or utilized for jointly undertaken and performed redevelopment projects only to the extent necessary to comply with the contract or agreement. Provides that a municipality must post on its website, at least quarterly, how all revenue received under this Act was expended, including to whom each expense was paid.
LRB100 20239 AWJ 35524 b
FISCAL NOTE ACT MAY APPLY
A BILL FOR
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AN ACT concerning local government.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Illinois Municipal Code is amended by
changing Section 11-74.4-4 and by adding Sections 11-74.4-4.3
and 11-74.4-8e as follows:
(65 ILCS 5/11-74.4-4) (from Ch. 24, par. 11-74.4-4)
Sec. 11-74.4-4. Municipal powers and duties; redevelopment
project areas. The changes made by this amendatory Act of the
91st General Assembly do not apply to a municipality that, (i)
before the effective date of this amendatory Act of the 91st
General Assembly, has adopted an ordinance or resolution fixing
a time and place for a public hearing under Section 11-74.4-5
or (ii) before July 1, 1999, has adopted an ordinance or
resolution providing for a feasibility study under Section
11-74.4-4.1, but has not yet adopted an ordinance approving
redevelopment plans and redevelopment projects or designating
redevelopment project areas under this Section, until after
that municipality adopts an ordinance approving redevelopment
plans and redevelopment projects or designating redevelopment
project areas under this Section; thereafter the changes made
by this amendatory Act of the 91st General Assembly apply to
the same extent that they apply to redevelopment plans and

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redevelopment projects that were approved and redevelopment
projects that were designated before the effective date of this
amendatory Act of the 91st General Assembly.
A municipality may:
(a) By ordinance introduced in the governing body of
the municipality within 14 to 90 days from the completion
of the hearing specified in Section 11-74.4-5 approve
redevelopment plans and redevelopment projects, and
designate redevelopment project areas pursuant to notice
and hearing required by this Act. No redevelopment project
area shall be designated unless a plan and project are
approved prior to the designation of such area and such
area shall include only those contiguous parcels of real
property and improvements thereon substantially benefited
by the proposed redevelopment project improvements. Upon
adoption of the ordinances, the municipality shall
forthwith transmit to the county clerk of the county or
counties within which the redevelopment project area is
located a certified copy of the ordinances, a legal
description of the redevelopment project area, a map of the
redevelopment project area, identification of the year
that the county clerk shall use for determining the total
initial equalized assessed value of the redevelopment
project area consistent with subsection (a) of Section
11-74.4-9, and a list of the parcel or tax identification
number of each parcel of property included in the

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redevelopment project area.
(b) Make and enter into all contracts with property
owners, developers, tenants, overlapping taxing bodies,
and others necessary or incidental to the implementation
and furtherance of its redevelopment plan and project.
Contract provisions concerning loan repayment obligations
in contracts entered into on or after the effective date of
this amendatory Act of the 93rd General Assembly shall
terminate no later than the last to occur of the estimated
dates of completion of the redevelopment project and
retirement of the obligations issued to finance
redevelopment project costs as required by item (3) of
subsection (n) of Section 11-74.4-3. Payments received
under contracts entered into by the municipality prior to
the effective date of this amendatory Act of the 93rd
General Assembly that are received after the redevelopment
project area has been terminated by municipal ordinance
shall be deposited into a special fund of the municipality
to be used for other community redevelopment needs within
the redevelopment project area.
(c) Within a redevelopment project area, acquire by
purchase, donation, lease or eminent domain; own, convey,
lease, mortgage or dispose of land and other property, real
or personal, or rights or interests therein, and grant or
acquire licenses, easements and options with respect
thereto, all in the manner and at such price the

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municipality determines is reasonably necessary to achieve
the objectives of the redevelopment plan and project. No
conveyance, lease, mortgage, disposition of land or other
property owned by a municipality, or agreement relating to
the development of such municipal property shall be made
except upon the adoption of an ordinance by the corporate
authorities of the municipality. Furthermore, no
conveyance, lease, mortgage, or other disposition of land
owned by a municipality or agreement relating to the
development of such municipal property shall be made
without making public disclosure of the terms of the
disposition and all bids and proposals made in response to
the municipality's request. The procedures for obtaining
such bids and proposals shall provide reasonable
opportunity for any person to submit alternative proposals
or bids.
(d) Within a redevelopment project area, clear any area
by demolition or removal of any existing buildings and
structures.
(e) Within a redevelopment project area, renovate or
rehabilitate or construct any structure or building, as
permitted under this Act.
(f) Install, repair, construct, reconstruct or
relocate streets, utilities and site improvements
essential to the preparation of the redevelopment area for
use in accordance with a redevelopment plan.

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(g) Within a redevelopment project area, fix, charge
and collect fees, rents and charges for the use of any
building or property owned or leased by it or any part
thereof, or facility therein.
(h) Accept grants, guarantees and donations of
property, labor, or other things of value from a public or
private source for use within a project redevelopment area.
(i) Acquire and construct public facilities within a
redevelopment project area, as permitted under this Act.
(j) Incur project redevelopment costs and reimburse
developers who incur redevelopment project costs
authorized by a redevelopment agreement; provided,
however, that on and after the effective date of this
amendatory Act of the 91st General Assembly, no
municipality shall incur redevelopment project costs
(except for planning costs and any other eligible costs
authorized by municipal ordinance or resolution that are
subsequently included in the redevelopment plan for the
area and are incurred by the municipality after the
ordinance or resolution is adopted) that are not consistent
with the program for accomplishing the objectives of the
redevelopment plan as included in that plan and approved by
the municipality until the municipality has amended the
redevelopment plan as provided elsewhere in this Act.
(k) Create a commission of not less than 5 or more than
15 persons to be appointed by the mayor or president of the

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municipality with the consent of the majority of the
governing board of the municipality. Members of a
commission appointed after the effective date of this
amendatory Act of 1987 shall be appointed for initial terms
of 1, 2, 3, 4 and 5 years, respectively, in such numbers as
to provide that the terms of not more than 1/3 of all such
members shall expire in any one year. Their successors
shall be appointed for a term of 5 years. The commission,
subject to approval of the corporate authorities may
exercise the powers enumerated in this Section. The
commission shall also have the power to hold the public
hearings required by this division and make
recommendations to the corporate authorities concerning
the adoption of redevelopment plans, redevelopment
projects and designation of redevelopment project areas.
(l) Make payment in lieu of taxes or a portion thereof
to taxing districts. If payments in lieu of taxes or a
portion thereof are made to taxing districts, those
payments shall be made to all districts within a project
redevelopment area on a basis which is proportional to the
current collections of revenue which each taxing district
receives from real property in the redevelopment project
area.
(m) Exercise any and all other powers necessary to
effectuate the purposes of this Act.
(n) If any member of the corporate authority, a member

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of a commission established pursuant to Section
11-74.4-4(k) of this Act, or an employee or consultant of
the municipality involved in the planning and preparation
of a redevelopment plan, or project for a redevelopment
project area or proposed redevelopment project area, as
defined in Sections 11-74.4-3(i) through (k) of this Act,
owns or controls an interest, direct or indirect, in any
property included in any redevelopment area, or proposed
redevelopment area, he or she shall disclose the same in
writing to the clerk of the municipality, and shall also so
disclose the dates and terms and conditions of any
disposition of any such interest, which disclosures shall
be acknowledged by the corporate authorities and entered
upon the minute books of the corporate authorities. If an
individual holds such an interest then that individual
shall refrain from any further official involvement in
regard to such redevelopment plan, project or area, from
voting on any matter pertaining to such redevelopment plan,
project or area, or communicating with other members
concerning corporate authorities, commission or employees
concerning any matter pertaining to said redevelopment
plan, project or area. Furthermore, no such member or
employee shall acquire of any interest direct, or indirect,
in any property in a redevelopment area or proposed
redevelopment area after either (a) such individual
obtains knowledge of such plan, project or area or (b)

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first public notice of such plan, project or area pursuant
to Section 11-74.4-6 of this Division, whichever occurs
first. For the purposes of this subsection, a property
interest acquired in a single parcel of property by a
member of the corporate authority, which property is used
exclusively as the member's primary residence, shall not be
deemed to constitute an interest in any property included
in a redevelopment area or proposed redevelopment area that
was established before December 31, 1989, but the member
must disclose the acquisition to the municipal clerk under
the provisions of this subsection. A single property
interest acquired within one year after the effective date
of this amendatory Act of the 94th General Assembly or 2
years after the effective date of this amendatory Act of
the 95th General Assembly by a member of the corporate
authority does not constitute an interest in any property
included in any redevelopment area or proposed
redevelopment area, regardless of when the redevelopment
area was established, if (i) the property is used
exclusively as the member's primary residence, (ii) the
member discloses the acquisition to the municipal clerk
under the provisions of this subsection, (iii) the
acquisition is for fair market value, (iv) the member
acquires the property as a result of the property being
publicly advertised for sale, and (v) the member refrains
from voting on, and communicating with other members

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concerning, any matter when the benefits to the
redevelopment project or area would be significantly
greater than the benefits to the municipality as a whole.
For the purposes of this subsection, a month-to-month
leasehold interest in a single parcel of property by a
member of the corporate authority shall not be deemed to
constitute an interest in any property included in any
redevelopment area or proposed redevelopment area, but the
member must disclose the interest to the municipal clerk
under the provisions of this subsection.
(o) Create a Tax Increment Economic Development
Advisory Committee to be appointed by the Mayor or
President of the municipality with the consent of the
majority of the governing board of the municipality, the
members of which Committee shall be appointed for initial
terms of 1, 2, 3, 4 and 5 years respectively, in such
numbers as to provide that the terms of not more than 1/3
of all such members shall expire in any one year. Their
successors shall be appointed for a term of 5 years. The
Committee shall have none of the powers enumerated in this
Section. The Committee shall serve in an advisory capacity
only. The Committee may advise the governing Board of the
municipality and other municipal officials regarding
development issues and opportunities within the
redevelopment project area or the area within the State
Sales Tax Boundary. The Committee may also promote and

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publicize development opportunities in the redevelopment
project area or the area within the State Sales Tax
Boundary.
(p) Municipalities may jointly undertake and perform
redevelopment plans and projects and utilize the
provisions of the Act wherever they have contiguous
redevelopment project areas or they determine to adopt tax
increment financing with respect to a redevelopment
project area which includes contiguous real property
within the boundaries of the municipalities, and in doing
so, they may, by agreement between municipalities, issue
obligations, separately or jointly, and expend revenues
received under the Act for eligible expenses anywhere
within contiguous redevelopment project areas or as
otherwise permitted in the Act. With respect to
redevelopment project areas that are established within a
transit facility improvement area, the provisions of this
subsection apply only with respect to such redevelopment
project areas that are contiguous to each other.
On or after the effective date of this amendatory Act
of the 100th General Assembly, revenues received under this
Act may be utilized under this subsection (p) for jointly
undertaken and performed redevelopment plans and projects
only in an amount equal to the percentage of eligible costs
undertaken within the redevelopment project area that
received the revenue. However, if there are any contracts

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or agreements in force on the effective date of this
amendatory Act of the 100th General Assembly consistent
with the provisions of this subsection (p), revenues
received under this Act may continue to be used in
accordance with the contract or agreement after the
effective date of this amendatory Act of the 100th General
Assembly only to the extent necessary to comply with the
contract or agreement. The contract or agreement may not be
modified, renewed, or extended after the effective date of
this amendatory Act of the 100th General Assembly unless
the contract or agreement complies with the provisions of
this subsection (p) of the time the contract is executed.
(q) Before the effective date of this amendatory Act of
the 100th General Assembly, utilize Utilize revenues,
other than State sales tax increment revenues, received
under this Act from one redevelopment project area for
eligible costs in another redevelopment project area that
is:
(i) contiguous to the redevelopment project area
from which the revenues are received;
(ii) separated only by a public right of way from
the redevelopment project area from which the revenues
are received; or
(iii) separated only by forest preserve property
from the redevelopment project area from which the
revenues are received if the closest boundaries of the

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redevelopment project areas that are separated by the
forest preserve property are less than one mile apart.
Utilize tax increment revenues for eligible costs that
are received from a redevelopment project area created
under the Industrial Jobs Recovery Law that is either
contiguous to, or is separated only by a public right of
way from, the redevelopment project area created under this
Act which initially receives these revenues. Utilize
revenues, other than State sales tax increment revenues, by
transferring or loaning such revenues to a redevelopment
project area created under the Industrial Jobs Recovery Law
that is either contiguous to, or separated only by a public
right of way from the redevelopment project area that
initially produced and received those revenues; and, if the
redevelopment project area (i) was established before the
effective date of this amendatory Act of the 91st General
Assembly and (ii) is located within a municipality with a
population of more than 100,000, utilize revenues or
proceeds of obligations authorized by Section 11-74.4-7 of
this Act, other than use or occupation tax revenues, to pay
for any redevelopment project costs as defined by
subsection (q) of Section 11-74.4-3 to the extent that the
redevelopment project costs involve public property that
is either contiguous to, or separated only by a public
right of way from, a redevelopment project area whether or
not redevelopment project costs or the source of payment

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for the costs are specifically set forth in the
redevelopment plan for the redevelopment project area.
(r) If no redevelopment project has been initiated in a
redevelopment project area within 7 years after the area
was designated by ordinance under subsection (a), the
municipality shall adopt an ordinance repealing the area's
designation as a redevelopment project area; provided,
however, that if an area received its designation more than
3 years before the effective date of this amendatory Act of
1994 and no redevelopment project has been initiated within
4 years after the effective date of this amendatory Act of
1994, the municipality shall adopt an ordinance repealing
its designation as a redevelopment project area.
Initiation of a redevelopment project shall be evidenced by
either a signed redevelopment agreement or expenditures on
eligible redevelopment project costs associated with a
redevelopment project.
Notwithstanding any other provision of this Section to
the contrary, with respect to a redevelopment project area
designated by an ordinance that was adopted on July 29,
1998 by the City of Chicago, the City of Chicago shall
adopt an ordinance repealing the area's designation as a
redevelopment project area if no redevelopment project has
been initiated in the redevelopment project area within 15
years after the designation of the area. The City of
Chicago may retroactively repeal any ordinance adopted by

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the City of Chicago, pursuant to this subsection (r), that
repealed the designation of a redevelopment project area
designated by an ordinance that was adopted by the City of
Chicago on July 29, 1998. The City of Chicago has 90 days
after the effective date of this amendatory Act to repeal
the ordinance. The changes to this Section made by this
amendatory Act of the 96th General Assembly apply
retroactively to July 27, 2005.
(Source: P.A. 99-792, eff. 8-12-16.)
(65 ILCS 5/11-74.4-4.3 new)
Sec. 11-74.4-4.3. Use or transfer of revenues to another
redevelopment project area.
(a) Notwithstanding any other provision of law other than
subsection (b), revenues received under this Act in one
redevelopment project area may not be used for eligible costs
in another redevelopment project area on or after the effective
date of this amendatory Act of the 100th General Assembly and
revenues received under this Act may not be transferred to
another redevelopment project area on or after the effective
date of this amendatory Act of the 100th General Assembly.
(b) If there are any contracts or agreements in force on
the effective date of this amendatory Act of the 100th General
Assembly, including contracts or agreements for the purposes
described in subsection (p) or (q) of Section 11-74.4-4 of this
Act, revenues received under this Act may be continue to be

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used for eligible costs in another redevelopment project area
or transferred to another redevelopment project area after the
effective date of this amendatory Act of the 100th General
Assembly only to the extent necessary to comply with the
contract or agreement. The contract or agreement may not be
renewed or extended after the effective date of this amendatory
Act of the 100th General Assembly unless the contract or
agreement complies with the provisions of this Act at the time
the contract is executed.
(65 ILCS 5/11-74.4-8e new)
Sec. 11-74.4-8e. Website posting of revenues received. A
municipality must post on its website, at least quarterly, how
all revenue received under this Act was expended, including to
whom each expense was paid.