Bill Text: IL SB2880 | 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 for redevelopment project areas created on and after the effective date of the amendatory Act, "blighted areas" must have a household median income of 100% or less of the area median income, as defined by the U.S. Department of Housing and Urban Development, in addition to the other requirements for "blighted areas". Provides that on or after January 1, 2019, 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 on or after January 1, 2019 and tax increment revenues may not be transferred to another redevelopment project area on or after January 1, 2019. 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 after January 1, 2019 only to the extent necessary to comply with the contract or agreement.

Spectrum: Partisan Bill (Republican 2-0)

Status: (Failed) 2019-01-09 - Session Sine Die [SB2880 Detail]

Download: Illinois-2017-SB2880-Introduced.html

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100TH GENERAL ASSEMBLY State of Illinois 2017 and 2018 SB2880 Introduced 2/14/2018, by Sen. John F. Curran SYNOPSIS AS INTRODUCED:
65 ILCS 5/11-74.4-3 from Ch. 24, par. 11-74.4-3
65 ILCS 5/11-74.4-3.1
65 ILCS 5/11-74.4-4 from Ch. 24, par. 11-74.4-4
65 ILCS 5/11-74.4-4.3 new
Amends the Tax Increment Allocation Redevelopment Act of the Illinois Municipal Code. Provides that for redevelopment project areas created on and after the effective date of the amendatory Act, "blighted areas" must have a household median income of 100% or less of the area median income, as defined by the U.S. Department of Housing and Urban Development, in addition to the other requirements for "blighted areas". Provides that on or after January 1, 2019, 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 on or after January 1, 2019 and tax increment revenues may not be transferred to another redevelopment project area on or after January 1, 2019. 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 after January 1, 2019 only to the extent necessary to comply with the contract or agreement.
LRB100 15567 AWJ 30647 b
FISCAL NOTE ACT MAY APPLY
A BILL FOR
SB2880 LRB100 15567 AWJ 30647 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 Illinois Municipal Code is amended by
changing Sections 11-74.4-3, 11-74.4-3.1, and 11-74.4-4 and by
adding Section 11-74.4-4.3 as follows:
(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

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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

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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,

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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

SB2880 - 5 - LRB100 15567 AWJ 30647 b
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

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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

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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

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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

SB2880 - 9 - LRB100 15567 AWJ 30647 b
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

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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.
In addition to the requirements of this definition, for
redevelopment project areas created on and after the effective
date of this amendatory Act of the 100th General Assembly, a
blighted area must have a median household income of 100% or
less of the area median income, as determined by the United
States Department of Housing and Urban Development. If the area
does not contain any residents, the census tracts adjoining the
blighted area must have a median household income of 100% or
less of the area median income.
(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

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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

SB2880 - 12 - LRB100 15567 AWJ 30647 b
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

SB2880 - 13 - LRB100 15567 AWJ 30647 b
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

SB2880 - 14 - LRB100 15567 AWJ 30647 b
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

SB2880 - 15 - LRB100 15567 AWJ 30647 b
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

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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

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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

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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

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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

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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

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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

SB2880 - 22 - LRB100 15567 AWJ 30647 b
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%

SB2880 - 23 - LRB100 15567 AWJ 30647 b
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

SB2880 - 24 - LRB100 15567 AWJ 30647 b
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

SB2880 - 25 - LRB100 15567 AWJ 30647 b
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;

SB2880 - 26 - LRB100 15567 AWJ 30647 b
(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

SB2880 - 27 - LRB100 15567 AWJ 30647 b
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

SB2880 - 28 - LRB100 15567 AWJ 30647 b
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

SB2880 - 29 - LRB100 15567 AWJ 30647 b
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

SB2880 - 30 - LRB100 15567 AWJ 30647 b
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

SB2880 - 31 - LRB100 15567 AWJ 30647 b
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

SB2880 - 32 - LRB100 15567 AWJ 30647 b
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

SB2880 - 33 - LRB100 15567 AWJ 30647 b
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

SB2880 - 34 - LRB100 15567 AWJ 30647 b
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;

SB2880 - 35 - LRB100 15567 AWJ 30647 b
(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

SB2880 - 36 - LRB100 15567 AWJ 30647 b
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

SB2880 - 37 - LRB100 15567 AWJ 30647 b
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

SB2880 - 38 - LRB100 15567 AWJ 30647 b
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

SB2880 - 39 - LRB100 15567 AWJ 30647 b
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

SB2880 - 40 - LRB100 15567 AWJ 30647 b
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

SB2880 - 41 - LRB100 15567 AWJ 30647 b
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

SB2880 - 42 - LRB100 15567 AWJ 30647 b
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

SB2880 - 43 - LRB100 15567 AWJ 30647 b
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

SB2880 - 44 - LRB100 15567 AWJ 30647 b
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

SB2880 - 45 - LRB100 15567 AWJ 30647 b
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

SB2880 - 46 - LRB100 15567 AWJ 30647 b
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

SB2880 - 47 - LRB100 15567 AWJ 30647 b
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.

SB2880 - 48 - LRB100 15567 AWJ 30647 b
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

SB2880 - 49 - LRB100 15567 AWJ 30647 b
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

SB2880 - 50 - LRB100 15567 AWJ 30647 b
to time by the United States Department of Housing and
Urban Development.
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

SB2880 - 51 - LRB100 15567 AWJ 30647 b
(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

SB2880 - 52 - LRB100 15567 AWJ 30647 b
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

SB2880 - 53 - LRB100 15567 AWJ 30647 b
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,

SB2880 - 54 - LRB100 15567 AWJ 30647 b
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.

SB2880 - 55 - LRB100 15567 AWJ 30647 b
(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

SB2880 - 56 - LRB100 15567 AWJ 30647 b
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.)
(65 ILCS 5/11-74.4-3.1)
Sec. 11-74.4-3.1. Redevelopment project area within an
intermodal terminal facility area.
(a) Notwithstanding any other provision of law to the

SB2880 - 57 - LRB100 15567 AWJ 30647 b
contrary, if a municipality designates an area within the
territorial limits of the municipality as an intermodal
terminal facility area, then that municipality may establish a
redevelopment project area within the intermodal terminal
facility area for the purpose of developing new intermodal
terminal facilities, rehabilitating obsolete intermodal
terminal facilities, or both. If there is no existing
intermodal terminal facility within the redevelopment project
area, then the municipality must establish a new intermodal
terminal facility within the redevelopment project area. If
there is an obsolete intermodal terminal facility within the
redevelopment project area, then the municipality may
establish a new intermodal terminal facility, rehabilitate the
existing intermodal terminal facility for use as an intermodal
terminal facility or for any other commercial purpose, or both.
(b) For purposes of this Division, an intermodal terminal
facility area is deemed to be a blighted area and no proof of
blight other than the median household income requirement of
Section 11-74.4-3 need be shown in establishing a redevelopment
project area in accordance with this Section.
(c) As used in this Section:
"Intermodal terminal facility area" means an area that: (i)
does not include any existing intermodal terminal facility or
includes an obsolete intermodal terminal facility; (ii)
comprises a minimum of 150 acres and not more than 2 square
miles in total area, exclusive of lakes and waterways; (iii)

SB2880 - 58 - LRB100 15567 AWJ 30647 b
has at least one Class 1 railroad right-of-way located within
it or within one quarter mile of it; and (iv) has no boundary
limit further than 3 miles from the right-of-way.
"Intermodal terminal facility" means land, improvements to
land, equipment, and appliances necessary for the receipt and
transfer of goods between one mode of transportation and
another, at least one of which must be transportation by rail.
(Source: P.A. 94-546, eff. 1-1-06.)
(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

SB2880 - 59 - LRB100 15567 AWJ 30647 b
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

SB2880 - 60 - LRB100 15567 AWJ 30647 b
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

SB2880 - 61 - LRB100 15567 AWJ 30647 b
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.

SB2880 - 62 - LRB100 15567 AWJ 30647 b
(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

SB2880 - 63 - LRB100 15567 AWJ 30647 b
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

SB2880 - 64 - LRB100 15567 AWJ 30647 b
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)

SB2880 - 65 - LRB100 15567 AWJ 30647 b
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

SB2880 - 66 - LRB100 15567 AWJ 30647 b
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

SB2880 - 67 - LRB100 15567 AWJ 30647 b
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 January 1, 2019, 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 or agreements in force on the effective date of

SB2880 - 68 - LRB100 15567 AWJ 30647 b
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 January 1,
2019 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
subsection (p) of the time the contract is executed.
(q) Before January 1, 2019, 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
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

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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
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

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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
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

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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) 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 January 1, 2019 and
revenues received under this Act may not be transferred to
another redevelopment project area on or after January 1, 2019.
(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 (q) of Section 11-74.4-4 of this Act,
revenues received under this Act may be continue to be used for
eligible costs in another redevelopment project area or
transferred to another redevelopment project area after
January 1, 2019 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

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agreement complies with the provisions of this Act at the time
the contract is executed.