Bill Text: IL HB3303 | 2023-2024 | 103rd General Assembly | Introduced
Bill Title: Creates the Business Improvement District Law. Provides for the establishment of business improvement districts by a county or municipality by ordinance after petition of a percentage of property owners or business owners, creation of a district plan, notice, and hearings. Provides that a business improvement district may impose district charges on property owners whose real properties are located within the business improvement district or on businesses within a business improvement district. Provides that the county or municipality shall contract with a district management association to administer or implement activities and improvements specified in the district plan. Contains provisions relating to district plans, formation of a district, district boundaries, issuance of bonds, terms and renewal of districts, amendment to district plans, governance of the district, reports of a district management association, dissolution, and legislative purpose. Limits the concurrent exercise of home rule powers. Defines terms. Effective 120 days after becoming law.
Spectrum: Partisan Bill (Democrat 3-0)
Status: (Introduced) 2023-09-11 - Added Co-Sponsor Rep. Kimberly Du Buclet [HB3303 Detail]
Download: Illinois-2023-HB3303-Introduced.html
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1 | AN ACT concerning local government.
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2 | Be it enacted by the People of the State of Illinois,
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3 | represented in the General Assembly:
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4 | Section 1. Short title. This Act may be cited as the | |||||||||||||||||||
5 | Business Improvement District Law.
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6 | Section 5. Purpose. The General Assembly finds that it is | |||||||||||||||||||
7 | in the interest of the State of Illinois to promote the | |||||||||||||||||||
8 | economic revitalization and physical maintenance of business | |||||||||||||||||||
9 | districts in order to create jobs, attract new businesses, | |||||||||||||||||||
10 | retain existing businesses, reduce crime, and spur new | |||||||||||||||||||
11 | investments. The General Assembly finds that this purpose may | |||||||||||||||||||
12 | best be accomplished by allowing business improvement | |||||||||||||||||||
13 | districts to fund business-related activities and improvements | |||||||||||||||||||
14 | through the levy of district charges upon the owners of real | |||||||||||||||||||
15 | property that receive benefits from those activities and | |||||||||||||||||||
16 | improvements.
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17 | Section 10. Definitions. As used in this Act: | |||||||||||||||||||
18 | "Activities" means services provided for the purpose of | |||||||||||||||||||
19 | conferring benefit upon owners of property located within a | |||||||||||||||||||
20 | business improvement district, including, but not limited to: | |||||||||||||||||||
21 | (1) promotion of events taking place within the | |||||||||||||||||||
22 | business improvement district; |
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1 | (2) furnishing of music; | ||||||
2 | (3) promotion of tourism within the business | ||||||
3 | improvement district; | ||||||
4 | (4) marketing and economic development, including | ||||||
5 | retail retention and recruitment; | ||||||
6 | (5) providing security, sanitation, graffiti removal, | ||||||
7 | street and sidewalk cleaning, and other services | ||||||
8 | supplemental to base services; and | ||||||
9 | (6) other services provided for the purpose of | ||||||
10 | conferring benefit upon owners of property located within | ||||||
11 | the business improvement district. | ||||||
12 | "Activities" does not include lobbying, as that term is | ||||||
13 | defined in Section 2 of the Lobbyist Registration Act and | ||||||
14 | Chapter 2-156 of the Municipal Code of Chicago. | ||||||
15 | "Base services" means services provided by any public | ||||||
16 | entity, or paid for wholly or in part out of public funds, | ||||||
17 | generally throughout a governmental unit to real property | ||||||
18 | within the governmental unit. | ||||||
19 | "Business improvement district" means a contiguous area | ||||||
20 | within a governmental unit in which activities, improvements, | ||||||
21 | or activities and improvements are provided in addition to | ||||||
22 | base services. Territory shall be considered contiguous for | ||||||
23 | purposes of this Act even though certain completely surrounded | ||||||
24 | portions of the territory are excluded from the business | ||||||
25 | improvement district. For purposes of this Act, parcels are | ||||||
26 | within the same contiguous area if they touch or join one |
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1 | another in a reasonably substantial physical sense or if they | ||||||
2 | meet the criteria for annexation to a municipality under | ||||||
3 | Section 7-1-1 of the Illinois Municipal Code. | ||||||
4 | "Clerk" means the county clerk or municipal clerk, as the | ||||||
5 | case may be. | ||||||
6 | "District charge" means a charge levied on behalf of a | ||||||
7 | business improvement district for the purpose of acquiring, | ||||||
8 | constructing, installing, or maintaining improvements or | ||||||
9 | providing activities that will confer special benefits upon | ||||||
10 | assessed property owners within the business improvement | ||||||
11 | district. District charges levied for the purpose of | ||||||
12 | conferring special benefits upon assessed property owners | ||||||
13 | within a business improvement district are not taxes for the | ||||||
14 | general benefit of a governmental unit, even if real property | ||||||
15 | or persons not charged receive incidental or collateral | ||||||
16 | beneficial effects. | ||||||
17 | "District management association" means a private or | ||||||
18 | not-for-profit entity that enters into a contract with a | ||||||
19 | governmental unit to administer or implement activities and | ||||||
20 | improvements specified in the district plan for a business | ||||||
21 | improvement district. A district management association shall | ||||||
22 | not be considered a public entity for any purpose. | ||||||
23 | "District plan" means a proposal for a business | ||||||
24 | improvement district that contains the information described | ||||||
25 | in Section 15. | ||||||
26 | "Downtown area" has the meaning given to that term in |
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1 | Section 17-1-1500-A of the Chicago Zoning Ordinance. | ||||||
2 | "Governing body" means the corporate authorities of a | ||||||
3 | municipality or a county board or board of county | ||||||
4 | commissioners, as the case may be. | ||||||
5 | "Governmental unit" means a county or municipality, as the | ||||||
6 | case may be. | ||||||
7 | "Improvements" means the acquisition, construction, | ||||||
8 | installation, or maintenance of any tangible property provided | ||||||
9 | for the purpose of conferring benefit upon assessed property | ||||||
10 | owners located within a business improvement district. | ||||||
11 | "Property owner" or "owner" means the record owner of fee | ||||||
12 | simple interest in a real property subject to assessment, | ||||||
13 | which will be deemed to be the person or entity that pays | ||||||
14 | property taxes on the real property according to county | ||||||
15 | records, unless another person or entity establishes to the | ||||||
16 | governmental unit by clear and convincing evidence that they | ||||||
17 | are the record owner of the fee simple interest. | ||||||
18 | "Public entity" means (i) the State or any agency, board, | ||||||
19 | or commission of the State, (ii) any school district, or (iii) | ||||||
20 | any unit of local government.
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21 | Section 15. District plan. | ||||||
22 | (a) A business improvement district established under this | ||||||
23 | Act is subject to and governed by a district plan, as may be | ||||||
24 | amended as set forth in Section 65, and filed with the clerk. | ||||||
25 | (b) The district plan shall include, but need not be |
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1 | limited to, the following: | ||||||
2 | (1) The name of the business improvement district. | ||||||
3 | (2) A map of the business improvement district in | ||||||
4 | sufficient detail to allow a property owner to reasonably | ||||||
5 | determine whether a parcel of real property is located | ||||||
6 | within the boundaries of the business improvement | ||||||
7 | district. | ||||||
8 | (3) A description of the boundaries of the business | ||||||
9 | improvement district in a manner sufficient to identify | ||||||
10 | the real property included in the business improvement | ||||||
11 | district. | ||||||
12 | (4) The initial term of the business improvement | ||||||
13 | district. | ||||||
14 | (5) A statement identifying the activities and | ||||||
15 | improvements within the business improvement district that | ||||||
16 | may be provided from time to time for which property | ||||||
17 | owners will be charged and that the activities and | ||||||
18 | improvements that are provided may vary from year to year | ||||||
19 | and may differ by class. | ||||||
20 | (6) A statement identifying the maximum amount of the | ||||||
21 | annual district charge to be levied and that the maximum | ||||||
22 | amount of the annual district charge levied may vary from | ||||||
23 | year to year. | ||||||
24 | (7) A statement identifying the maximum amount of | ||||||
25 | total district charges to be levied for the term of the | ||||||
26 | business improvement district. |
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1 | (8) A statement identifying the proposed source or | ||||||
2 | sources of financing, including the proposed method and | ||||||
3 | basis of levying an assessment, in sufficient detail to | ||||||
4 | allow each property owner to calculate (i) the estimated | ||||||
5 | amount of the district charge to be levied upon the | ||||||
6 | property owner annually, (ii) the maximum amount of the | ||||||
7 | district charge that could be levied upon the property | ||||||
8 | owner annually, and (iii) the total amount of the district | ||||||
9 | charges that could be levied upon the property owner for | ||||||
10 | the term of the business improvement district. The | ||||||
11 | statement shall specify whether bonds may be issued to | ||||||
12 | finance activities and improvements, and the anticipated | ||||||
13 | term for the bonds. | ||||||
14 | (9) Any interest or penalties that may be imposed for | ||||||
15 | delinquent payment of a district charge. | ||||||
16 | (10) A list of the real property subject to a district | ||||||
17 | charge, and a statement of any proposed classifications. | ||||||
18 | The list shall include the permanent tax index number of | ||||||
19 | each parcel located within the business improvement | ||||||
20 | district. | ||||||
21 | (11) A statement of the real property classes exempt | ||||||
22 | from charge, and a list of the real property to be | ||||||
23 | exempted. | ||||||
24 | (12) A statement identifying the proposed procedures | ||||||
25 | for renewal, subject to the limitations under Section 60. | ||||||
26 | (13) A statement identifying the district management |
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1 | association, the district management association's | ||||||
2 | governance structure, and the district management | ||||||
3 | association's anticipated liability insurance coverage | ||||||
4 | limits. | ||||||
5 | (14) A statement identifying how unspent revenue | ||||||
6 | collected from district charges may be allocated, carried | ||||||
7 | over year to year, or returned to the property owners at | ||||||
8 | the end of each year by applying the same method and basis | ||||||
9 | that was used to calculate the district charges levied | ||||||
10 | throughout the term of the business improvement district. | ||||||
11 | (15) The manner by which a property owner may contest | ||||||
12 | the calculation of a specific district charge. | ||||||
13 | (16) Any proposed rules and regulations to be applied | ||||||
14 | to the business improvement district.
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15 | Section 20. Assessments and district charges. | ||||||
16 | (a) Each district plan shall provide for an assessment | ||||||
17 | levied upon property owners owning property within the | ||||||
18 | business improvement district upon which district charges are | ||||||
19 | based. District charges shall be levied at a rate or amount | ||||||
20 | sufficient to produce revenues required to provide the | ||||||
21 | activities and improvements specified in the district plan. | ||||||
22 | The revenue from the levy of district charges within a | ||||||
23 | business improvement district shall not be used to provide | ||||||
24 | services outside the business improvement district or for any | ||||||
25 | purpose other than the purposes set forth in the ordinance |
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1 | adopting the district plan. | ||||||
2 | (b) District charges shall be levied on the basis of the | ||||||
3 | estimated benefit to the real property located within the | ||||||
4 | business improvement district. In determining the assessment, | ||||||
5 | the district management association may reasonably classify | ||||||
6 | real property for purposes of determining benefit if so | ||||||
7 | provided in the district plan. The classification may be based | ||||||
8 | on various factors, including, as applicable, square footage, | ||||||
9 | geography, or any other factor reasonably relating to the | ||||||
10 | benefit received. Certain classes may be specified in the | ||||||
11 | district plan as exempted from being charged if they would not | ||||||
12 | receive a special benefit from the activities and | ||||||
13 | improvements. District charges need not be imposed on | ||||||
14 | different classes on the same basis or the same rate. | ||||||
15 | (c) District charges levied upon property owners owning | ||||||
16 | property within the business improvement district may be | ||||||
17 | billed and collected as follows: | ||||||
18 | (1) a county that has established a business | ||||||
19 | improvement district may include district charges in the | ||||||
20 | regular property tax bills of the county. The county | ||||||
21 | collector of the county in which a business improvement | ||||||
22 | district is located may also bill and collect district | ||||||
23 | charges with the regular property tax bills of the county | ||||||
24 | if requested by a municipality within its jurisdiction | ||||||
25 | that has established a business improvement district; | ||||||
26 | however, no municipality is required to make this request |
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1 | of its county collector. If the county collector agrees to | ||||||
2 | bill and collect district charges with the regular | ||||||
3 | property tax bills of the county, then the applicable | ||||||
4 | district plan shall be filed with the county collector and | ||||||
5 | the annual amount due as set forth by the district | ||||||
6 | management association shall become due in installments at | ||||||
7 | the times property taxes shall become due in accordance | ||||||
8 | with each regular property tax bill payable during the | ||||||
9 | year in which the assessment comes due; or | ||||||
10 | (2) if the county collector does not agree to bill and | ||||||
11 | collect district charges with the regular property tax | ||||||
12 | bills of the county or the governmental unit that has | ||||||
13 | established the business improvement district declines to | ||||||
14 | request the county collector to do so, then the | ||||||
15 | governmental unit shall bill and collect the assessments, | ||||||
16 | either directly or through a third party, and the annual | ||||||
17 | amount due as set forth by the district management | ||||||
18 | association in accordance with the district plan shall | ||||||
19 | become due in installments on or about the times property | ||||||
20 | taxes would otherwise become due in accordance with each | ||||||
21 | regular property tax bill payable during the year in which | ||||||
22 | the assessment comes due. | ||||||
23 | (d) District charges shall be payable at the times and in | ||||||
24 | the manner set forth in the applicable bill. Delinquent | ||||||
25 | payments for district charges levied pursuant to this Act may | ||||||
26 | be charged interest and penalties as may be set forth in the |
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1 | district plan. | ||||||
2 | (e) District charges shall promptly, and in no case later | ||||||
3 | than 90 days after collection, be remitted by the governmental | ||||||
4 | unit to the district management association.
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5 | Section 25. Boundaries of business improvement district. | ||||||
6 | (a) The boundaries of a proposed business improvement | ||||||
7 | district shall not overlap with the boundaries of another | ||||||
8 | business improvement district or with the boundaries of a | ||||||
9 | special service area established pursuant to the Special | ||||||
10 | Service Area Tax Law. | ||||||
11 | (b) The boundaries of any proposed business improvement | ||||||
12 | district may overlap with the boundaries of a tax increment | ||||||
13 | financing district. | ||||||
14 | (C) A county may establish a business improvement district | ||||||
15 | within a municipality or municipalities only when the | ||||||
16 | municipality or municipalities consent to the establishment of | ||||||
17 | the business improvement district. A municipality may | ||||||
18 | establish a business improvement district within the | ||||||
19 | municipality and the unincorporated area of a county or within | ||||||
20 | another municipality only when the county or other | ||||||
21 | municipality consents to the establishment of the business | ||||||
22 | improvement district.
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23 | Section 30. Proposals to establish a business improvement | ||||||
24 | district. |
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1 | (a) To propose a business improvement district, a written | ||||||
2 | petition shall be filed with the clerk and shall include the | ||||||
3 | name and legal status of the filing party, information | ||||||
4 | specifying where the complete district plan can be obtained, | ||||||
5 | and a summary of the district plan that includes: the | ||||||
6 | boundaries of the proposed business improvement district; the | ||||||
7 | proposed activities and improvements, and estimated amount of | ||||||
8 | annual funding required; the method of assessment; and the | ||||||
9 | total amount of the proposed district charges. The information | ||||||
10 | contained in the summary shall be sufficient if it enables a | ||||||
11 | property owner to generally identify the location and extent | ||||||
12 | of the proposed business improvement district, the nature and | ||||||
13 | extent of the activities and improvements, the estimated | ||||||
14 | annual district charge that the property owner would pay, and | ||||||
15 | the maximum annual district charge that the property owner | ||||||
16 | would pay. | ||||||
17 | (b) Upon receiving a written petition to establish a | ||||||
18 | business improvement district and concluding that the petition | ||||||
19 | meets the requirements of Section 80, the clerk shall submit | ||||||
20 | the petition to the governing body.
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21 | Section 35. Resolution of intent to consider establishment | ||||||
22 | of a business improvement district. After receiving a verified | ||||||
23 | petition from the clerk, the governing body shall adopt a | ||||||
24 | resolution of intention to consider the establishment of a | ||||||
25 | business improvement district. The resolution shall state the |
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1 | time and place of a public hearing to be held by the governing | ||||||
2 | body to consider establishment of a business improvement | ||||||
3 | district and shall restate all the information contained in | ||||||
4 | the petition regarding the boundaries of the proposed business | ||||||
5 | improvement district, the proposed activities and | ||||||
6 | improvements, and estimated amount of annual funding required, | ||||||
7 | the method of assessment, and the total amount of the proposed | ||||||
8 | district charges anticipated for the initial term of the | ||||||
9 | business improvement district.
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10 | Section 40. Establishment. | ||||||
11 | (a) Within 30 days after the public hearing to consider | ||||||
12 | establishment of a business improvement district, the party | ||||||
13 | who filed the district plan with the clerk may modify the | ||||||
14 | district plan, including to satisfy any applicable legal | ||||||
15 | requirements or remedy any deficiencies, prior to the adoption | ||||||
16 | of an ordinance establishing a business improvement district. | ||||||
17 | Any modification to the district plan that changes the source | ||||||
18 | or sources of financing, including the method and basis of | ||||||
19 | levying the assessment or an increase or reduction in the | ||||||
20 | maximum annual amount or maximum total amount of the | ||||||
21 | assessment against one or more properties within the business | ||||||
22 | improvement district, the procedures for renewal, the | ||||||
23 | boundaries of a business improvement district, the district | ||||||
24 | management association's governance structure, the activities | ||||||
25 | and improvements to be provided within the business |
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1 | improvement district, or a change to the filing party must be | ||||||
2 | approved by a written petition that conforms to the petition | ||||||
3 | signature requirements set forth in Section 80. If the | ||||||
4 | district plan is so modified, the governing body shall call an | ||||||
5 | additional public hearing to hear and consider objections to | ||||||
6 | the modified district plan prior to the adoption of an | ||||||
7 | ordinance establishing a business improvement district. | ||||||
8 | (b) If, following all required public hearings, the | ||||||
9 | governing body decides to establish a business improvement | ||||||
10 | district, the governing body shall adopt an ordinance | ||||||
11 | establishing the business improvement district that shall | ||||||
12 | include, but is not limited to, all the following information: | ||||||
13 | (1) A detailed description of: the boundaries of the | ||||||
14 | proposed business improvement district, which may be made | ||||||
15 | by reference to a plan or map; the proposed activities and | ||||||
16 | improvements, and an estimated amount of annual funding | ||||||
17 | required; the method of assessment; the maximum amount of | ||||||
18 | annual district charges; and the total amount of the | ||||||
19 | proposed district charges for the initial term of the | ||||||
20 | business improvement district. The descriptions shall be | ||||||
21 | sufficient if the descriptions enable a property owner to | ||||||
22 | generally identify the location and extent of the proposed | ||||||
23 | business improvement district, the nature and extent of | ||||||
24 | the activities and improvements, and the maximum annual | ||||||
25 | district charge that the property owner would pay. | ||||||
26 | (2) The time and place where any public hearing |
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1 | concerning the establishment of the business improvement | ||||||
2 | district was held. | ||||||
3 | (3) A statement that the activities and improvements | ||||||
4 | to be conferred upon property owners will be funded by the | ||||||
5 | levy of district charges. | ||||||
6 | (4) A statement on whether bonds will be issued. | ||||||
7 | (5) A finding that each item in the district plan | ||||||
8 | satisfies all applicable legal requirements and that | ||||||
9 | establishing the business improvement district is in the | ||||||
10 | public interest. | ||||||
11 | (6) The adoption of the district plan, as may be | ||||||
12 | modified pursuant to subsection (a), including each item | ||||||
13 | set forth in Section 15. | ||||||
14 | (7) A statement identifying the entity that will be | ||||||
15 | responsible for administering district charges, including | ||||||
16 | the functions of billing, collecting, and enforcement, | ||||||
17 | pursuant to Section 20. | ||||||
18 | (8) Authorization for the governmental unit to remit | ||||||
19 | district charges to the district management association | ||||||
20 | for the provision of activities and improvement. | ||||||
21 | (9) The deadline and manner for submitting the annual | ||||||
22 | report required in Section 70.
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23 | Section 45. Activities and improvements. | ||||||
24 | (a) Upon establishment of a business improvement district, | ||||||
25 | the governing body may levy and collect the district charge |
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1 | pursuant to Section 20 as allowed by the district plan and the | ||||||
2 | ordinance adopting the district plan. | ||||||
3 | (b) Activities and improvements provided pursuant to this | ||||||
4 | Act shall be provided in addition to base services. The | ||||||
5 | appropriate governmental unit shall continue to provide the | ||||||
6 | same level of base services in any business improvement | ||||||
7 | district as is provided to other real property within the | ||||||
8 | governmental unit. The district management association shall | ||||||
9 | not be expected or required to supplement any base services, | ||||||
10 | but the district management association may supplement any | ||||||
11 | base services within the business improvement district in | ||||||
12 | accordance with the district plan.
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13 | Section 50. Governance. | ||||||
14 | (a) For each business improvement district, the | ||||||
15 | governmental unit shall contract with the district management | ||||||
16 | association designated in the district plan to administer the | ||||||
17 | operation of and provide for and maintain activities and | ||||||
18 | improvements in and for a business improvement district. The | ||||||
19 | contract may provide for the provision and maintenance of | ||||||
20 | activities and improvements by one or more subcontractors of a | ||||||
21 | district management association. | ||||||
22 | (b) The certificate of incorporation or bylaws of a | ||||||
23 | district management association shall provide for voting | ||||||
24 | representation of owners whose real property is located within | ||||||
25 | the business improvement district, and may provide that the |
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1 | votes be weighted in proportion to the district charge levied | ||||||
2 | or to be levied upon property owners within the business | ||||||
3 | improvement district, except in no case shall the total number | ||||||
4 | of votes assigned to one owner exceed 20% of the total number | ||||||
5 | of votes which may be cast. Not less than 80% of a district | ||||||
6 | management association's board of directors shall be composed | ||||||
7 | of property owners or representatives of property owners | ||||||
8 | within the business improvement district, and the composition | ||||||
9 | shall generally be described in the statement identifying the | ||||||
10 | district management association's governance structure in the | ||||||
11 | district plan. | ||||||
12 | (c) In addition to other powers as are conferred on it by | ||||||
13 | law, the district management association may make | ||||||
14 | recommendations to the governing body with respect to any | ||||||
15 | matter involving or relating to the business improvement | ||||||
16 | district. | ||||||
17 | (d) For consideration as it may deem appropriate, the | ||||||
18 | governing body may license or grant to the district management | ||||||
19 | association the right to undertake or permit commercial | ||||||
20 | activities or other private uses of the streets or other parts | ||||||
21 | of the business improvement district in which the governmental | ||||||
22 | unit has any real property interest.
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23 | Section 55. Issuance of bonds. A governmental unit may | ||||||
24 | issue bonds in the amounts and for the periods necessary to | ||||||
25 | finance activities and improvements if authorized by the |
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1 | ordinance establishing the business improvement district. | ||||||
2 | District charges levied in a business district shall be | ||||||
3 | pledged to secure the bonds and district charges levied in 2 or | ||||||
4 | more business improvement districts may be pledged to secure a | ||||||
5 | single bond issue benefiting the business improvement | ||||||
6 | districts. The district charge shall be levied on a basis that | ||||||
7 | provides a rational relationship between the amount of the | ||||||
8 | district charge against each property owner in each business | ||||||
9 | improvement district and the benefit received. Bonds issued | ||||||
10 | pursuant to this Act shall not be regarded as indebtedness of | ||||||
11 | the governmental unit for the purpose of any limitation | ||||||
12 | imposed by any law. The term of any bonds issued pursuant to | ||||||
13 | this Act shall be limited to the term of the business | ||||||
14 | improvement district, including any renewal period. A | ||||||
15 | governmental unit may set forth additional requirements by | ||||||
16 | ordinance prior to bond issuance.
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17 | Section 60. Term; renewal. | ||||||
18 | (a) The initial term for a business improvement district | ||||||
19 | shall be a maximum of 5 years or, if bonds are authorized to be | ||||||
20 | issued for the business improvement district, until the | ||||||
21 | maximum maturity of those bonds. Any business improvement | ||||||
22 | district may be renewed one or more times by following the | ||||||
23 | procedures for renewal as provided in the district plan if | ||||||
24 | each property owner that is subject to assessment is notified | ||||||
25 | of a pending renewal. A renewal shall not go into effect when, |
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1 | prior to the effective date of the renewal, a written petition | ||||||
2 | seeking termination of the renewal that conforms to the | ||||||
3 | petition signature requirements set forth in Section 80 is | ||||||
4 | delivered to the clerk. | ||||||
5 | (b) Upon each renewal, a business improvement district | ||||||
6 | shall have an additional term not to exceed 15 years, or, if | ||||||
7 | bonds are authorized to be issued for the business improvement | ||||||
8 | district, until the maximum maturity of those bonds. Prior to | ||||||
9 | renewal, the ordinance adopting the district plan may be | ||||||
10 | amended pursuant to Section 65, with the amendments to take | ||||||
11 | effect upon renewal. | ||||||
12 | (c) Upon renewal, any remaining revenues derived from the | ||||||
13 | levy of district charges, or any revenues derived from the | ||||||
14 | sale of assets acquired with the revenues, shall be | ||||||
15 | transferred to the district management association of the | ||||||
16 | renewed business improvement district. If the renewed business | ||||||
17 | improvement district includes additional real property not | ||||||
18 | included within the prior business improvement district, the | ||||||
19 | remaining revenues shall be spent to benefit only the real | ||||||
20 | property within the boundaries of the prior business | ||||||
21 | improvement district. If the renewed business improvement | ||||||
22 | district does not include real property included in the prior | ||||||
23 | business improvement district, the remaining revenues | ||||||
24 | attributable to that real property shall be refunded to the | ||||||
25 | property owners of that real property.
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1 | Section 65. Amendments. | ||||||
2 | (a) Upon the written request of the district management | ||||||
3 | association, the governing body may amend the ordinance | ||||||
4 | adopting the district plan upon which the establishment or | ||||||
5 | renewal of the business improvement district was based as set | ||||||
6 | forth in this Section. | ||||||
7 | (b) Amendments that provide for any change to the source | ||||||
8 | or sources of financing, including the method and basis of | ||||||
9 | levying the assessment or an increase in the maximum annual | ||||||
10 | district charge or the maximum total district charges for the | ||||||
11 | term of the business improvement district, or that provide for | ||||||
12 | any change to the procedures for renewal may be adopted by the | ||||||
13 | governing body by ordinance if, after a public hearing, the | ||||||
14 | governing body determines that it is in the public interest to | ||||||
15 | authorize the change to the source or sources of financing or | ||||||
16 | to authorize the change to the procedures for renewal. | ||||||
17 | (c) Amendments that provide for a change to the boundaries | ||||||
18 | of a business improvement district may be adopted by the | ||||||
19 | governing body by ordinance if, after a public hearing, the | ||||||
20 | governing body determines that it is in the public interest to | ||||||
21 | authorize the change to the boundaries of the business | ||||||
22 | improvement district and, if applicable, that all newly | ||||||
23 | included property will benefit from the activities and | ||||||
24 | improvements provided. The governing body may change the | ||||||
25 | boundaries of a business improvement district by either | ||||||
26 | expanding or reducing the existing boundaries. If the change |
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1 | to the boundaries is an expansion to existing boundaries, the | ||||||
2 | expansion area must be contiguous with an existing boundary | ||||||
3 | and the assessments upon property owners in the expansion area | ||||||
4 | shall be established pursuant to Section 20. The governing | ||||||
5 | body may consider an expansion to the boundaries of a business | ||||||
6 | improvement district only upon receipt of a written petition | ||||||
7 | of property owners within the proposed expansion area that | ||||||
8 | conforms to the petition signature requirements set forth in | ||||||
9 | Section 80. Any revenues that are unspent at the time of an | ||||||
10 | amendment expanding the boundaries of a business improvement | ||||||
11 | district shall be spent to benefit only the real property | ||||||
12 | within the prior boundaries of the business improvement | ||||||
13 | district. If the change to the boundaries is a reduction to | ||||||
14 | existing boundaries, any revenues that are unspent at the time | ||||||
15 | of the amendment and are associated with real property that is | ||||||
16 | being removed from the business improvement district, then | ||||||
17 | those remaining revenues shall be refunded to the property | ||||||
18 | owners of the real property. Any amendment that changes the | ||||||
19 | boundaries of a business improvement district shall provide an | ||||||
20 | updated map of the business improvement district that reflects | ||||||
21 | the expansion or reduction of its boundaries. | ||||||
22 | (d) Notice shall be given and public hearings shall be | ||||||
23 | held in accordance with Sections 85 and 90. | ||||||
24 | (e) Amendments not provided for in subsection (b) or (c) | ||||||
25 | may be adopted by the governing body by ordinance without | ||||||
26 | notice and a public hearing if the governing body determines |
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| |||||||
1 | that the amendments are consistent with the objectives of the | ||||||
2 | district plan and are in the public interest to approve the | ||||||
3 | amendment.
| ||||||
4 | Section 70. Reports. | ||||||
5 | (a) The district management association shall prepare or | ||||||
6 | have prepared a report for each fiscal year, except the first | ||||||
7 | fiscal year, for which district charges are to be levied and | ||||||
8 | collected to pay the costs of activities and improvements. The | ||||||
9 | district management association's first report shall be | ||||||
10 | submitted after the first year of operation of the business | ||||||
11 | improvement district. | ||||||
12 | (b) The report shall be submitted to the governing body, | ||||||
13 | and to each property owner subject to a district charge upon | ||||||
14 | request, and shall be made available for public inspection. | ||||||
15 | The report shall refer to the business improvement district by | ||||||
16 | name, specify the fiscal year to which the report applies, | ||||||
17 | and, with respect to that fiscal year, shall contain, but is | ||||||
18 | not limited to, all the following information: | ||||||
19 | (1) The anticipated activities and improvements to be | ||||||
20 | provided in that fiscal year. | ||||||
21 | (2) An estimate of the cost of providing the | ||||||
22 | anticipated activities and improvements in that fiscal | ||||||
23 | year. | ||||||
24 | (3) The estimated amount of any surplus or deficit | ||||||
25 | revenues to be carried over from a previous fiscal year. |
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1 | (c) In addition to the annual reporting requirement, the | ||||||
2 | district management association shall notify the governing | ||||||
3 | body of any proposed infrastructure or capital project in | ||||||
4 | excess of $50,000 within a reasonable time.
| ||||||
5 | Section 75. Dissolution. | ||||||
6 | (a) After a public hearing on the subject of dissolution, | ||||||
7 | the governing body may dissolve by ordinance any business | ||||||
8 | improvement district in either of the following circumstances: | ||||||
9 | (1) If the governing body finds there has been | ||||||
10 | misappropriation of funds, malfeasance, or a violation of | ||||||
11 | law in connection with the management of the business | ||||||
12 | improvement district; or | ||||||
13 | (2) Each year during the term of the business | ||||||
14 | improvement district, there shall be a 60-day period in | ||||||
15 | which property owners who paid more than 50% of the total | ||||||
16 | of district charges levied in the prior year may request | ||||||
17 | dissolution of a business improvement district by a | ||||||
18 | written petition that conforms to the petition signature | ||||||
19 | requirements set forth in Section 80. The first period | ||||||
20 | shall begin 60 days prior to one year after the date of | ||||||
21 | establishment of the district and shall continue for 60 | ||||||
22 | days. The next 60-day period shall begin 60 days prior to 2 | ||||||
23 | years after the date of the establishment of the district. | ||||||
24 | Each successive year during the term of the district shall | ||||||
25 | have a 60-day period beginning 60 days after the |
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| |||||||
1 | anniversary of the date of the establishment of the | ||||||
2 | district. | ||||||
3 | (b) The governing body shall adopt a resolution of | ||||||
4 | intention to dissolve the business improvement district prior | ||||||
5 | to a public hearing required by this section. The resolution | ||||||
6 | shall state the reason for the dissolution, shall state the | ||||||
7 | time and place of the public hearing, and shall contain a | ||||||
8 | proposal to dispose of any assets acquired with the revenues | ||||||
9 | of district charges levied on behalf of the business | ||||||
10 | improvement district in accordance with subsection (d).
| ||||||
11 | (c) Notice shall be given and public hearings shall be | ||||||
12 | held in accordance with Sections 85 and 90. | ||||||
13 | (d) Upon the dissolution or expiration without renewal of | ||||||
14 | a district, and after all outstanding debts are paid, any | ||||||
15 | remaining revenues derived from the levy of district charges, | ||||||
16 | including any remaining revenues from district charges | ||||||
17 | collected after dissolution, or derived from the sale of | ||||||
18 | assets acquired with these revenues or from bond reserve or | ||||||
19 | construction funds, shall be either: (i) refunded to the | ||||||
20 | property owners then located or operating within the business | ||||||
21 | improvement district in which district charges were levied by | ||||||
22 | applying the same method and basis that was used to calculate | ||||||
23 | the district charges levied in the fiscal year in which the | ||||||
24 | district dissolves or expires; or (ii) spent on activities or | ||||||
25 | improvements specified in the district plan under a valid and | ||||||
26 | enforceable contract executed by the district management |
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| |||||||
1 | association prior to the dissolution. If the dissolution | ||||||
2 | occurs before district charges are levied for the fiscal year, | ||||||
3 | the method and basis that was used to calculate district | ||||||
4 | charges levied in the immediate prior fiscal year shall be | ||||||
5 | used to calculate the amount of any refund.
| ||||||
6 | Section 80. Petition signature requirements. Any petition | ||||||
7 | required by this Act must be signed by property owners in the | ||||||
8 | proposed business improvement district or proposed expanded | ||||||
9 | area of a business improvement district, as the case may be, | ||||||
10 | who cumulatively are expected to pay more than 20% of the total | ||||||
11 | of the district charges proposed to be levied. However, where | ||||||
12 | the proposed business improvement district or proposed | ||||||
13 | expanded area of a business improvement district is located | ||||||
14 | wholly or in part in the downtown area, then the petition must | ||||||
15 | be signed by property owners in the proposed business | ||||||
16 | improvement district or expanded area of a business | ||||||
17 | improvement district, as the case may be, who are expected to | ||||||
18 | cumulatively pay more than 50% of the total of the district | ||||||
19 | charges proposed to be levied. All signatures for a petition | ||||||
20 | to establish or expand a business improvement district must be | ||||||
21 | collected within a period ending no more than 120 days from the | ||||||
22 | initiation of the petition, which date shall be specified on | ||||||
23 | the petition.
| ||||||
24 | Section 85. Manner of notice. The notice of any public |
| |||||||
| |||||||
1 | hearing required under this Act shall be given by publication | ||||||
2 | and mailing. Notice by publication shall be given by | ||||||
3 | publication at least once not less than 15 days prior to the | ||||||
4 | public hearing in a newspaper of general circulation within | ||||||
5 | the governmental unit. Notice by mailing shall be given by | ||||||
6 | depositing the notice in the United States mail addressed to | ||||||
7 | each owner subject to a district charge. Notice shall be | ||||||
8 | mailed not less than 10 days prior to the time set for the | ||||||
9 | public hearing. The mailed notice shall enclose, or include | ||||||
10 | information allowing a property owner to obtain, a copy of the | ||||||
11 | proposed district plan.
| ||||||
12 | Section 90. Public hearings. At a public hearing held | ||||||
13 | pursuant to this Act, any interested person, including all | ||||||
14 | property owners owning real property located within a proposed | ||||||
15 | or existing business improvement district, may file with the | ||||||
16 | clerk written objections to or statements in support of, and | ||||||
17 | may be heard orally, with respect to any matter embodied in the | ||||||
18 | district plan or concerning the management of the business | ||||||
19 | improvement district. The governing body shall hear and | ||||||
20 | consider all statements and objections at the public hearing. | ||||||
21 | The governing body may adjourn a public hearing to another | ||||||
22 | date without further notice other than a motion fixing the | ||||||
23 | time and place the public hearing will reconvene.
| ||||||
24 | Section 95. Existing law. This Act provides an alternative |
| |||||||
| |||||||
1 | method of financing certain activities and improvements. The | ||||||
2 | provisions of this Act do not affect or limit any other | ||||||
3 | provisions of law authorizing or providing for the furnishing | ||||||
4 | of activities or improvements or the raising of revenue for | ||||||
5 | these purposes. Every special service area established | ||||||
6 | pursuant to the Special Service Area Tax Law is unaffected by | ||||||
7 | this Act.
| ||||||
8 | Section 97. Local authority. A governmental unit may not | ||||||
9 | establish or regulate business improvement districts in a | ||||||
10 | manner inconsistent with this Act. This section is a denial | ||||||
11 | and limitation of home rule powers and functions under | ||||||
12 | subsection (h) of Section 6 of Article VII of the Illinois | ||||||
13 | Constitution.
| ||||||
14 | Section 99. Effective date. This Act takes effect 120 days | ||||||
15 | after becoming law.
|