SB0188 Engrossed LRB102 02806 AWJ 12814 b
1		AN ACT concerning local government.
2		Be it enacted by the People of the State of Illinois,
3		represented in the General Assembly:
4		Section 5. The Illinois Municipal Code is amended by
5		changing Section 11-74.4-3 as follows:
6		(65 ILCS 5/11-74.4-3) (from Ch. 24, par. 11-74.4-3)
7		Sec. 11-74.4-3. Definitions. The following terms, wherever
8		used or referred to in this Division 74.4 shall have the
9		following respective meanings, unless in any case a different
10		meaning clearly appears from the context.
11		(a) For any redevelopment project area that has been
12		designated pursuant to this Section by an ordinance adopted
13		prior to November 1, 1999 (the effective date of Public Act
14		91-478), "blighted area" shall have the meaning set forth in
15		this Section prior to that date.
16		On and after November 1, 1999, "blighted area" means any
17		improved or vacant area within the boundaries of a
18		redevelopment project area located within the territorial
19		limits of the municipality where:
20		(1) If improved, industrial, commercial, and
21		residential buildings or improvements are detrimental to
22		the public safety, health, or welfare because of a
23		combination of 5 or more of the following factors, each of

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1		which is (i) present, with that presence documented, to a
2		meaningful extent so that a municipality may reasonably
3		find that the factor is clearly present within the intent
4		of the Act and (ii) reasonably distributed throughout the
5		improved part of the redevelopment project area:
6		(A) Dilapidation. An advanced state of disrepair
7		or neglect of necessary repairs to the primary
8		structural components of buildings or improvements in
9		such a combination that a documented building
10		condition analysis determines that major repair is
11		required or the defects are so serious and so
12		extensive that the buildings must be removed.
13		(B) Obsolescence. The condition or process of
14		falling into disuse. Structures have become ill-suited
15		for the original use.
16		(C) Deterioration. With respect to buildings,
17		defects including, but not limited to, major defects
18		in the secondary building components such as doors,
19		windows, porches, gutters and downspouts, and fascia.
20		With respect to surface improvements, that the
21		condition of roadways, alleys, curbs, gutters,
22		sidewalks, off-street parking, and surface storage
23		areas evidence deterioration, including, but not
24		limited to, surface cracking, crumbling, potholes,
25		depressions, loose paving material, and weeds
26		protruding through paved surfaces.

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1		(D) Presence of structures below minimum code
2		standards. All structures that do not meet the
3		standards of zoning, subdivision, building, fire, and
4		other governmental codes applicable to property, but
5		not including housing and property maintenance codes.
6		(E) Illegal use of individual structures. The use
7		of structures in violation of applicable federal,
8		State, or local laws, exclusive of those applicable to
9		the presence of structures below minimum code
10		standards.
11		(F) Excessive vacancies. The presence of buildings
12		that are unoccupied or under-utilized and that
13		represent an adverse influence on the area because of
14		the frequency, extent, or duration of the vacancies.
15		(G) Lack of ventilation, light, or sanitary
16		facilities. The absence of adequate ventilation for
17		light or air circulation in spaces or rooms without
18		windows, or that require the removal of dust, odor,
19		gas, smoke, or other noxious airborne materials.
20		Inadequate natural light and ventilation means the
21		absence of skylights or windows for interior spaces or
22		rooms and improper window sizes and amounts by room
23		area to window area ratios. Inadequate sanitary
24		facilities refers to the absence or inadequacy of
25		garbage storage and enclosure, bathroom facilities,
26		hot water and kitchens, and structural inadequacies

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1		preventing ingress and egress to and from all rooms
2		and units within a building.
3		(H) Inadequate utilities. Underground and overhead
4		utilities such as storm sewers and storm drainage,
5		sanitary sewers, water lines, and gas, telephone, and
6		electrical services that are shown to be inadequate.
7		Inadequate utilities are those that are: (i) of
8		insufficient capacity to serve the uses in the
9		redevelopment project area, (ii) deteriorated,
10		antiquated, obsolete, or in disrepair, or (iii)
11		lacking within the redevelopment project area.
12		(I) Excessive land coverage and overcrowding of
13		structures and community facilities. The
14		over-intensive use of property and the crowding of
15		buildings and accessory facilities onto a site.
16		Examples of problem conditions warranting the
17		designation of an area as one exhibiting excessive
18		land coverage are: (i) the presence of buildings
19		either improperly situated on parcels or located on
20		parcels of inadequate size and shape in relation to
21		present-day standards of development for health and
22		safety and (ii) the presence of multiple buildings on
23		a single parcel. For there to be a finding of excessive
24		land coverage, these parcels must exhibit one or more
25		of the following conditions: insufficient provision
26		for light and air within or around buildings,

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1		increased threat of spread of fire due to the close
2		proximity of buildings, lack of adequate or proper
3		access to a public right-of-way, lack of reasonably
4		required off-street parking, or inadequate provision
5		for loading and service.
6		(J) Deleterious land use or layout. The existence
7		of incompatible land-use relationships, buildings
8		occupied by inappropriate mixed-uses, or uses
9		considered to be noxious, offensive, or unsuitable for
10		the surrounding area.
11		(K) Environmental clean-up. The proposed
12		redevelopment project area has incurred Illinois
13		Environmental Protection Agency or United States
14		Environmental Protection Agency remediation costs for,
15		or a study conducted by an independent consultant
16		recognized as having expertise in environmental
17		remediation has determined a need for, the clean-up of
18		hazardous waste, hazardous substances, or underground
19		storage tanks required by State or federal law,
20		provided that the remediation costs constitute a
21		material impediment to the development or
22		redevelopment of the redevelopment project area.
23		(L) Lack of community planning. The proposed
24		redevelopment project area was developed prior to or
25		without the benefit or guidance of a community plan.
26		This means that the development occurred prior to the

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1		adoption by the municipality of a comprehensive or
2		other community plan or that the plan was not followed
3		at the time of the area's development. This factor
4		must be documented by evidence of adverse or
5		incompatible land-use relationships, inadequate street
6		layout, improper subdivision, parcels of inadequate
7		shape and size to meet contemporary development
8		standards, or other evidence demonstrating an absence
9		of effective community planning.
10		(M) The total equalized assessed value of the
11		proposed redevelopment project area has declined for 3
12		of the last 5 calendar years prior to the year in which
13		the redevelopment project area is designated or is
14		increasing at an annual rate that is less than the
15		balance of the municipality for 3 of the last 5
16		calendar years for which information is available or
17		is increasing at an annual rate that is less than the
18		Consumer Price Index for All Urban Consumers published
19		by the United States Department of Labor or successor
20		agency for 3 of the last 5 calendar years prior to the
21		year in which the redevelopment project area is
22		designated.
23		(2) If vacant, the sound growth of the redevelopment
24		project area is impaired by a combination of 2 or more of
25		the following factors, each of which is (i) present, with
26		that presence documented, to a meaningful extent so that a

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1		municipality may reasonably find that the factor is
2		clearly present within the intent of the Act and (ii)
3		reasonably distributed throughout the vacant part of the
4		redevelopment project area to which it pertains:
5		(A) Obsolete platting of vacant land that results
6		in parcels of limited or narrow size or configurations
7		of parcels of irregular size or shape that would be
8		difficult to develop on a planned basis and in a manner
9		compatible with contemporary standards and
10		requirements, or platting that failed to create
11		rights-of-ways for streets or alleys or that created
12		inadequate right-of-way widths for streets, alleys, or
13		other public rights-of-way or that omitted easements
14		for public utilities.
15		(B) Diversity of ownership of parcels of vacant
16		land sufficient in number to retard or impede the
17		ability to assemble the land for development.
18		(C) Tax and special assessment delinquencies exist
19		or the property has been the subject of tax sales under
20		the Property Tax Code within the last 5 years.
21		(D) Deterioration of structures or site
22		improvements in neighboring areas adjacent to the
23		vacant land.
24		(E) The area has incurred Illinois Environmental
25		Protection Agency or United States Environmental
26		Protection Agency remediation costs for, or a study

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1		conducted by an independent consultant recognized as
2		having expertise in environmental remediation has
3		determined a need for, the clean-up of hazardous
4		waste, hazardous substances, or underground storage
5		tanks required by State or federal law, provided that
6		the remediation costs constitute a material impediment
7		to the development or redevelopment of the
8		redevelopment project area.
9		(F) The total equalized assessed value of the
10		proposed redevelopment project area has declined for 3
11		of the last 5 calendar years prior to the year in which
12		the redevelopment project area is designated or is
13		increasing at an annual rate that is less than the
14		balance of the municipality for 3 of the last 5
15		calendar years for which information is available or
16		is increasing at an annual rate that is less than the
17		Consumer Price Index for All Urban Consumers published
18		by the United States Department of Labor or successor
19		agency for 3 of the last 5 calendar years prior to the
20		year in which the redevelopment project area is
21		designated.
22		(3) If vacant, the sound growth of the redevelopment
23		project area is impaired by one of the following factors
24		that (i) is present, with that presence documented, to a
25		meaningful extent so that a municipality may reasonably
26		find that the factor is clearly present within the intent

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1		of the Act and (ii) is reasonably distributed throughout
2		the vacant part of the redevelopment project area to which
3		it pertains:
4		(A) The area consists of one or more unused
5		quarries, mines, or strip mine ponds.
6		(B) The area consists of unused rail yards, rail
7		tracks, or railroad rights-of-way.
8		(C) The area, prior to its designation, is subject
9		to (i) chronic flooding that adversely impacts on real
10		property in the area as certified by a registered
11		professional engineer or appropriate regulatory agency
12		or (ii) surface water that discharges from all or a
13		part of the area and contributes to flooding within
14		the same watershed, but only if the redevelopment
15		project provides for facilities or improvements to
16		contribute to the alleviation of all or part of the
17		flooding.
18		(D) The area consists of an unused or illegal
19		disposal site containing earth, stone, building
20		debris, or similar materials that were removed from
21		construction, demolition, excavation, or dredge sites.
22		(E) Prior to November 1, 1999, the area is not less
23		than 50 nor more than 100 acres and 75% of which is
24		vacant (notwithstanding that the area has been used
25		for commercial agricultural purposes within 5 years
26		prior to the designation of the redevelopment project

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1		area), and the area meets at least one of the factors
2		itemized in paragraph (1) of this subsection, the area
3		has been designated as a town or village center by
4		ordinance or comprehensive plan adopted prior to
5		January 1, 1982, and the area has not been developed
6		for that designated purpose.
7		(F) The area qualified as a blighted improved area
8		immediately prior to becoming vacant, unless there has
9		been substantial private investment in the immediately
10		surrounding area.
11		(b) For any redevelopment project area that has been
12		designated pursuant to this Section by an ordinance adopted
13		prior to November 1, 1999 (the effective date of Public Act
14		91-478), "conservation area" shall have the meaning set forth
15		in this Section prior to that date.
16		On and after November 1, 1999, "conservation area" means
17		any improved area within the boundaries of a redevelopment
18		project area located within the territorial limits of the
19		municipality in which 50% or more of the structures in the area
20		have an age of 35 years or more. Such an area is not yet a
21		blighted area but because of a combination of 3 or more of the
22		following factors is detrimental to the public safety, health,
23		morals or welfare and such an area may become a blighted area:
24		(1) Dilapidation. An advanced state of disrepair or
25		neglect of necessary repairs to the primary structural
26		components of buildings or improvements in such a

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1		combination that a documented building condition analysis
2		determines that major repair is required or the defects
3		are so serious and so extensive that the buildings must be
4		removed.
5		(2) Obsolescence. The condition or process of falling
6		into disuse. Structures have become ill-suited for the
7		original use.
8		(3) Deterioration. With respect to buildings, defects
9		including, but not limited to, major defects in the
10		secondary building components such as doors, windows,
11		porches, gutters and downspouts, and fascia. With respect
12		to surface improvements, that the condition of roadways,
13		alleys, curbs, gutters, sidewalks, off-street parking, and
14		surface storage areas evidence deterioration, including,
15		but not limited to, surface cracking, crumbling, potholes,
16		depressions, loose paving material, and weeds protruding
17		through paved surfaces.
18		(4) Presence of structures below minimum code
19		standards. All structures that do not meet the standards
20		of zoning, subdivision, building, fire, and other
21		governmental codes applicable to property, but not
22		including housing and property maintenance codes.
23		(5) Illegal use of individual structures. The use of
24		structures in violation of applicable federal, State, or
25		local laws, exclusive of those applicable to the presence
26		of structures below minimum code standards.

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1		(6) Excessive vacancies. The presence of buildings
2		that are unoccupied or under-utilized and that represent
3		an adverse influence on the area because of the frequency,
4		extent, or duration of the vacancies.
5		(7) Lack of ventilation, light, or sanitary
6		facilities. The absence of adequate ventilation for light
7		or air circulation in spaces or rooms without windows, or
8		that require the removal of dust, odor, gas, smoke, or
9		other noxious airborne materials. Inadequate natural light
10		and ventilation means the absence or inadequacy of
11		skylights or windows for interior spaces or rooms and
12		improper window sizes and amounts by room area to window
13		area ratios. Inadequate sanitary facilities refers to the
14		absence or inadequacy of garbage storage and enclosure,
15		bathroom facilities, hot water and kitchens, and
16		structural inadequacies preventing ingress and egress to
17		and from all rooms and units within a building.
18		(8) Inadequate utilities. Underground and overhead
19		utilities such as storm sewers and storm drainage,
20		sanitary sewers, water lines, and gas, telephone, and
21		electrical services that are shown to be inadequate.
22		Inadequate utilities are those that are: (i) of
23		insufficient capacity to serve the uses in the
24		redevelopment project area, (ii) deteriorated, antiquated,
25		obsolete, or in disrepair, or (iii) lacking within the
26		redevelopment project area.

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1		(9) Excessive land coverage and overcrowding of
2		structures and community facilities. The over-intensive
3		use of property and the crowding of buildings and
4		accessory facilities onto a site. Examples of problem
5		conditions warranting the designation of an area as one
6		exhibiting excessive land coverage are: the presence of
7		buildings either improperly situated on parcels or located
8		on parcels of inadequate size and shape in relation to
9		present-day standards of development for health and safety
10		and the presence of multiple buildings on a single parcel.
11		For there to be a finding of excessive land coverage,
12		these parcels must exhibit one or more of the following
13		conditions: insufficient provision for light and air
14		within or around buildings, increased threat of spread of
15		fire due to the close proximity of buildings, lack of
16		adequate or proper access to a public right-of-way, lack
17		of reasonably required off-street parking, or inadequate
18		provision for loading and service.
19		(10) Deleterious land use or layout. The existence of
20		incompatible land-use relationships, buildings occupied by
21		inappropriate mixed-uses, or uses considered to be
22		noxious, offensive, or unsuitable for the surrounding
23		area.
24		(11) Lack of community planning. The proposed
25		redevelopment project area was developed prior to or
26		without the benefit or guidance of a community plan. This

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1		means that the development occurred prior to the adoption
2		by the municipality of a comprehensive or other community
3		plan or that the plan was not followed at the time of the
4		area's development. This factor must be documented by
5		evidence of adverse or incompatible land-use
6		relationships, inadequate street layout, improper
7		subdivision, parcels of inadequate shape and size to meet
8		contemporary development standards, or other evidence
9		demonstrating an absence of effective community planning.
10		(12) The area has incurred Illinois Environmental
11		Protection Agency or United States Environmental
12		Protection Agency remediation costs for, or a study
13		conducted by an independent consultant recognized as
14		having expertise in environmental remediation has
15		determined a need for, the clean-up of hazardous waste,
16		hazardous substances, or underground storage tanks
17		required by State or federal law, provided that the
18		remediation costs constitute a material impediment to the
19		development or redevelopment of the redevelopment project
20		area.
21		(13) The total equalized assessed value of the
22		proposed redevelopment project area has declined for 3 of
23		the last 5 calendar years for which information is
24		available or is increasing at an annual rate that is less
25		than the balance of the municipality for 3 of the last 5
26		calendar years for which information is available or is

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1		increasing at an annual rate that is less than the
2		Consumer Price Index for All Urban Consumers published by
3		the United States Department of Labor or successor agency
4		for 3 of the last 5 calendar years for which information is
5		available.
6		(c) "Industrial park" means an area in a blighted or
7		conservation area suitable for use by any manufacturing,
8		industrial, research or transportation enterprise, of
9		facilities to include but not be limited to factories, mills,
10		processing plants, assembly plants, packing plants,
11		fabricating plants, industrial distribution centers,
12		warehouses, repair overhaul or service facilities, freight
13		terminals, research facilities, test facilities or railroad
14		facilities.
15		(d) "Industrial park conservation area" means an area
16		within the boundaries of a redevelopment project area located
17		within the territorial limits of a municipality that is a
18		labor surplus municipality or within 1 1/2 miles of the
19		territorial limits of a municipality that is a labor surplus
20		municipality if the area is annexed to the municipality; which
21		area is zoned as industrial no later than at the time the
22		municipality by ordinance designates the redevelopment project
23		area, and which area includes both vacant land suitable for
24		use as an industrial park and a blighted area or conservation
25		area contiguous to such vacant land.
26		(e) "Labor surplus municipality" means a municipality in

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1		which, at any time during the 6 months before the municipality
2		by ordinance designates an industrial park conservation area,
3		the unemployment rate was over 6% and was also 100% or more of
4		the national average unemployment rate for that same time as
5		published in the United States Department of Labor Bureau of
6		Labor Statistics publication entitled "The Employment
7		Situation" or its successor publication. For the purpose of
8		this subsection, if unemployment rate statistics for the
9		municipality are not available, the unemployment rate in the
10		municipality shall be deemed to be the same as the
11		unemployment rate in the principal county in which the
12		municipality is located.
13		(f) "Municipality" shall mean a city, village,
14		incorporated town, or a township that is located in the
15		unincorporated portion of a county with 3 million or more
16		inhabitants, if the county adopted an ordinance that approved
17		the township's redevelopment plan.
18		(g) "Initial Sales Tax Amounts" means the amount of taxes
19		paid under the Retailers' Occupation Tax Act, Use Tax Act,
20		Service Use Tax Act, the Service Occupation Tax Act, the
21		Municipal Retailers' Occupation Tax Act, and the Municipal
22		Service Occupation Tax Act by retailers and servicemen on
23		transactions at places located in a State Sales Tax Boundary
24		during the calendar year 1985.
25		(g-1) "Revised Initial Sales Tax Amounts" means the amount
26		of taxes paid under the Retailers' Occupation Tax Act, Use Tax

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1		Act, Service Use Tax Act, the Service Occupation Tax Act, the
2		Municipal Retailers' Occupation Tax Act, and the Municipal
3		Service Occupation Tax Act by retailers and servicemen on
4		transactions at places located within the State Sales Tax
5		Boundary revised pursuant to Section 11-74.4-8a(9) of this
6		Act.
7		(h) "Municipal Sales Tax Increment" means an amount equal
8		to the increase in the aggregate amount of taxes paid to a
9		municipality from the Local Government Tax Fund arising from
10		sales by retailers and servicemen within the redevelopment
11		project area or State Sales Tax Boundary, as the case may be,
12		for as long as the redevelopment project area or State Sales
13		Tax Boundary, as the case may be, exist over and above the
14		aggregate amount of taxes as certified by the Illinois
15		Department of Revenue and paid under the Municipal Retailers'
16		Occupation Tax Act and the Municipal Service Occupation Tax
17		Act by retailers and servicemen, on transactions at places of
18		business located in the redevelopment project area or State
19		Sales Tax Boundary, as the case may be, during the base year
20		which shall be the calendar year immediately prior to the year
21		in which the municipality adopted tax increment allocation
22		financing. For purposes of computing the aggregate amount of
23		such taxes for base years occurring prior to 1985, the
24		Department of Revenue shall determine the Initial Sales Tax
25		Amounts for such taxes and deduct therefrom an amount equal to
26		4% of the aggregate amount of taxes per year for each year the

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1		base year is prior to 1985, but not to exceed a total deduction
2		of 12%. The amount so determined shall be known as the
3		"Adjusted Initial Sales Tax Amounts". For purposes of
4		determining the Municipal Sales Tax Increment, the Department
5		of Revenue shall for each period subtract from the amount paid
6		to the municipality from the Local Government Tax Fund arising
7		from sales by retailers and servicemen on transactions located
8		in the redevelopment project area or the State Sales Tax
9		Boundary, as the case may be, the certified Initial Sales Tax
10		Amounts, the Adjusted Initial Sales Tax Amounts or the Revised
11		Initial Sales Tax Amounts for the Municipal Retailers'
12		Occupation Tax Act and the Municipal Service Occupation Tax
13		Act. For the State Fiscal Year 1989, this calculation shall be
14		made by utilizing the calendar year 1987 to determine the tax
15		amounts received. For the State Fiscal Year 1990, this
16		calculation shall be made by utilizing the period from January
17		1, 1988, until September 30, 1988, to determine the tax
18		amounts received from retailers and servicemen pursuant to the
19		Municipal Retailers' Occupation Tax and the Municipal Service
20		Occupation Tax Act, which shall have deducted therefrom
21		nine-twelfths of the certified Initial Sales Tax Amounts, the
22		Adjusted Initial Sales Tax Amounts or the Revised Initial
23		Sales Tax Amounts as appropriate. For the State Fiscal Year
24		1991, this calculation shall be made by utilizing the period
25		from October 1, 1988, to June 30, 1989, to determine the tax
26		amounts received from retailers and servicemen pursuant to the

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1		Municipal Retailers' Occupation Tax and the Municipal Service
2		Occupation Tax Act which shall have deducted therefrom
3		nine-twelfths of the certified Initial Sales Tax Amounts,
4		Adjusted Initial Sales Tax Amounts or the Revised Initial
5		Sales Tax Amounts as appropriate. For every State Fiscal Year
6		thereafter, the applicable period shall be the 12 months
7		beginning July 1 and ending June 30 to determine the tax
8		amounts received which shall have deducted therefrom the
9		certified Initial Sales Tax Amounts, the Adjusted Initial
10		Sales Tax Amounts or the Revised Initial Sales Tax Amounts, as
11		the case may be.
12		(i) "Net State Sales Tax Increment" means the sum of the
13		following: (a) 80% of the first $100,000 of State Sales Tax
14		Increment annually generated within a State Sales Tax
15		Boundary; (b) 60% of the amount in excess of $100,000 but not
16		exceeding $500,000 of State Sales Tax Increment annually
17		generated within a State Sales Tax Boundary; and (c) 40% of all
18		amounts in excess of $500,000 of State Sales Tax Increment
19		annually generated within a State Sales Tax Boundary. If,
20		however, a municipality established a tax increment financing
21		district in a county with a population in excess of 3,000,000
22		before January 1, 1986, and the municipality entered into a
23		contract or issued bonds after January 1, 1986, but before
24		December 31, 1986, to finance redevelopment project costs
25		within a State Sales Tax Boundary, then the Net State Sales Tax
26		Increment means, for the fiscal years beginning July 1, 1990,

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1		and July 1, 1991, 100% of the State Sales Tax Increment
2		annually generated within a State Sales Tax Boundary; and
3		notwithstanding any other provision of this Act, for those
4		fiscal years the Department of Revenue shall distribute to
5		those municipalities 100% of their Net State Sales Tax
6		Increment before any distribution to any other municipality
7		and regardless of whether or not those other municipalities
8		will receive 100% of their Net State Sales Tax Increment. For
9		Fiscal Year 1999, and every year thereafter until the year
10		2007, for any municipality that has not entered into a
11		contract or has not issued bonds prior to June 1, 1988 to
12		finance redevelopment project costs within a State Sales Tax
13		Boundary, the Net State Sales Tax Increment shall be
14		calculated as follows: By multiplying the Net State Sales Tax
15		Increment by 90% in the State Fiscal Year 1999; 80% in the
16		State Fiscal Year 2000; 70% in the State Fiscal Year 2001; 60%
17		in the State Fiscal Year 2002; 50% in the State Fiscal Year
18		2003; 40% in the State Fiscal Year 2004; 30% in the State
19		Fiscal Year 2005; 20% in the State Fiscal Year 2006; and 10% in
20		the State Fiscal Year 2007. No payment shall be made for State
21		Fiscal Year 2008 and thereafter.
22		Municipalities that issued bonds in connection with a
23		redevelopment project in a redevelopment project area within
24		the State Sales Tax Boundary prior to July 29, 1991, or that
25		entered into contracts in connection with a redevelopment
26		project in a redevelopment project area before June 1, 1988,

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1		shall continue to receive their proportional share of the
2		Illinois Tax Increment Fund distribution until the date on
3		which the redevelopment project is completed or terminated.
4		If, however, a municipality that issued bonds in connection
5		with a redevelopment project in a redevelopment project area
6		within the State Sales Tax Boundary prior to July 29, 1991
7		retires the bonds prior to June 30, 2007 or a municipality that
8		entered into contracts in connection with a redevelopment
9		project in a redevelopment project area before June 1, 1988
10		completes the contracts prior to June 30, 2007, then so long as
11		the redevelopment project is not completed or is not
12		terminated, the Net State Sales Tax Increment shall be
13		calculated, beginning on the date on which the bonds are
14		retired or the contracts are completed, as follows: By
15		multiplying the Net State Sales Tax Increment by 60% in the
16		State Fiscal Year 2002; 50% in the State Fiscal Year 2003; 40%
17		in the State Fiscal Year 2004; 30% in the State Fiscal Year
18		2005; 20% in the State Fiscal Year 2006; and 10% in the State
19		Fiscal Year 2007. No payment shall be made for State Fiscal
20		Year 2008 and thereafter. Refunding of any bonds issued prior
21		to July 29, 1991, shall not alter the Net State Sales Tax
22		Increment.
23		(j) "State Utility Tax Increment Amount" means an amount
24		equal to the aggregate increase in State electric and gas tax
25		charges imposed on owners and tenants, other than residential
26		customers, of properties located within the redevelopment

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1		project area under Section 9-222 of the Public Utilities Act,
2		over and above the aggregate of such charges as certified by
3		the Department of Revenue and paid by owners and tenants,
4		other than residential customers, of properties within the
5		redevelopment project area during the base year, which shall
6		be the calendar year immediately prior to the year of the
7		adoption of the ordinance authorizing tax increment allocation
8		financing.
9		(k) "Net State Utility Tax Increment" means the sum of the
10		following: (a) 80% of the first $100,000 of State Utility Tax
11		Increment annually generated by a redevelopment project area;
12		(b) 60% of the amount in excess of $100,000 but not exceeding
13		$500,000 of the State Utility Tax Increment annually generated
14		by a redevelopment project area; and (c) 40% of all amounts in
15		excess of $500,000 of State Utility Tax Increment annually
16		generated by a redevelopment project area. For the State
17		Fiscal Year 1999, and every year thereafter until the year
18		2007, for any municipality that has not entered into a
19		contract or has not issued bonds prior to June 1, 1988 to
20		finance redevelopment project costs within a redevelopment
21		project area, the Net State Utility Tax Increment shall be
22		calculated as follows: By multiplying the Net State Utility
23		Tax Increment by 90% in the State Fiscal Year 1999; 80% in the
24		State Fiscal Year 2000; 70% in the State Fiscal Year 2001; 60%
25		in the State Fiscal Year 2002; 50% in the State Fiscal Year
26		2003; 40% in the State Fiscal Year 2004; 30% in the State

SB0188 Engrossed - 23 - LRB102 02806 AWJ 12814 b
1		Fiscal Year 2005; 20% in the State Fiscal Year 2006; and 10% in
2		the State Fiscal Year 2007. No payment shall be made for the
3		State Fiscal Year 2008 and thereafter.
4		Municipalities that issue bonds in connection with the
5		redevelopment project during the period from June 1, 1988
6		until 3 years after the effective date of this Amendatory Act
7		of 1988 shall receive the Net State Utility Tax Increment,
8		subject to appropriation, for 15 State Fiscal Years after the
9		issuance of such bonds. For the 16th through the 20th State
10		Fiscal Years after issuance of the bonds, the Net State
11		Utility Tax Increment shall be calculated as follows: By
12		multiplying the Net State Utility Tax Increment by 90% in year
13		16; 80% in year 17; 70% in year 18; 60% in year 19; and 50% in
14		year 20. Refunding of any bonds issued prior to June 1, 1988,
15		shall not alter the revised Net State Utility Tax Increment
16		payments set forth above.
17		(l) "Obligations" mean bonds, loans, debentures, notes,
18		special certificates or other evidence of indebtedness issued
19		by the municipality to carry out a redevelopment project or to
20		refund outstanding obligations.
21		(m) "Payment in lieu of taxes" means those estimated tax
22		revenues from real property in a redevelopment project area
23		derived from real property that has been acquired by a
24		municipality which according to the redevelopment project or
25		plan is to be used for a private use which taxing districts
26		would have received had a municipality not acquired the real

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1		property and adopted tax increment allocation financing and
2		which would result from levies made after the time of the
3		adoption of tax increment allocation financing to the time the
4		current equalized value of real property in the redevelopment
5		project area exceeds the total initial equalized value of real
6		property in said area.
7		(n) "Redevelopment plan" means the comprehensive program
8		of the municipality for development or redevelopment intended
9		by the payment of redevelopment project costs to reduce or
10		eliminate those conditions the existence of which qualified
11		the redevelopment project area as a "blighted area" or
12		"conservation area" or combination thereof or "industrial park
13		conservation area," and thereby to enhance the tax bases of
14		the taxing districts which extend into the redevelopment
15		project area, provided that, with respect to redevelopment
16		project areas described in subsections (p-1) and (p-2),
17		"redevelopment plan" means the comprehensive program of the
18		affected municipality for the development of qualifying
19		transit facilities. On and after November 1, 1999 (the
20		effective date of Public Act 91-478), no redevelopment plan
21		may be approved or amended that includes the development of
22		vacant land (i) with a golf course and related clubhouse and
23		other facilities or (ii) designated by federal, State, county,
24		or municipal government as public land for outdoor
25		recreational activities or for nature preserves and used for
26		that purpose within 5 years prior to the adoption of the

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1		redevelopment plan. For the purpose of this subsection,
2		"recreational activities" is limited to mean camping and
3		hunting. Each redevelopment plan shall set forth in writing
4		the program to be undertaken to accomplish the objectives and
5		shall include but not be limited to:
6		(A) an itemized list of estimated redevelopment
7		project costs;
8		(B) evidence indicating that the redevelopment project
9		area on the whole has not been subject to growth and
10		development through investment by private enterprise,
11		provided that such evidence shall not be required for any
12		redevelopment project area located within a transit
13		facility improvement area established pursuant to Section
14		11-74.4-3.3;
15		(C) an assessment of any financial impact of the
16		redevelopment project area on or any increased demand for
17		services from any taxing district affected by the plan and
18		any program to address such financial impact or increased
19		demand;
20		(D) the sources of funds to pay costs;
21		(E) the nature and term of the obligations to be
22		issued;
23		(F) the most recent equalized assessed valuation of
24		the redevelopment project area;
25		(G) an estimate as to the equalized assessed valuation
26		after redevelopment and the general land uses to apply in

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1		the redevelopment project area;
2		(H) a commitment to fair employment practices and an
3		affirmative action plan;
4		(I) if it concerns an industrial park conservation
5		area, the plan shall also include a general description of
6		any proposed developer, user and tenant of any property, a
7		description of the type, structure and general character
8		of the facilities to be developed, a description of the
9		type, class and number of new employees to be employed in
10		the operation of the facilities to be developed; and
11		(J) if property is to be annexed to the municipality,
12		the plan shall include the terms of the annexation
13		agreement.
14		The provisions of items (B) and (C) of this subsection (n)
15		shall not apply to a municipality that before March 14, 1994
16		(the effective date of Public Act 88-537) had fixed, either by
17		its corporate authorities or by a commission designated under
18		subsection (k) of Section 11-74.4-4, a time and place for a
19		public hearing as required by subsection (a) of Section
20		11-74.4-5. No redevelopment plan shall be adopted unless a
21		municipality complies with all of the following requirements:
22		(1) The municipality finds that the redevelopment
23		project area on the whole has not been subject to growth
24		and development through investment by private enterprise
25		and would not reasonably be anticipated to be developed
26		without the adoption of the redevelopment plan, provided,

SB0188 Engrossed - 27 - LRB102 02806 AWJ 12814 b
1		however, that such a finding shall not be required with
2		respect to any redevelopment project area located within a
3		transit facility improvement area established pursuant to
4		Section 11-74.4-3.3.
5		(2) The municipality finds that the redevelopment plan
6		and project conform to the comprehensive plan for the
7		development of the municipality as a whole, or, for
8		municipalities with a population of 100,000 or more,
9		regardless of when the redevelopment plan and project was
10		adopted, the redevelopment plan and project either: (i)
11		conforms to the strategic economic development or
12		redevelopment plan issued by the designated planning
13		authority of the municipality, or (ii) includes land uses
14		that have been approved by the planning commission of the
15		municipality.
16		(3) The redevelopment plan establishes the estimated
17		dates of completion of the redevelopment project and
18		retirement of obligations issued to finance redevelopment
19		project costs. Those dates may not be later than the dates
20		set forth under Section 11-74.4-3.5.
21		A municipality may by municipal ordinance amend an
22		existing redevelopment plan to conform to this paragraph
23		(3) as amended by Public Act 91-478, which municipal
24		ordinance may be adopted without further hearing or notice
25		and without complying with the procedures provided in this
26		Act pertaining to an amendment to or the initial approval

SB0188 Engrossed - 28 - LRB102 02806 AWJ 12814 b
1		of a redevelopment plan and project and designation of a
2		redevelopment project area.
3		(3.5) The municipality finds, in the case of an
4		industrial park conservation area, also that the
5		municipality is a labor surplus municipality and that the
6		implementation of the redevelopment plan will reduce
7		unemployment, create new jobs and by the provision of new
8		facilities enhance the tax base of the taxing districts
9		that extend into the redevelopment project area.
10		(4) If any incremental revenues are being utilized
11		under Section 8(a)(1) or 8(a)(2) of this Act in
12		redevelopment project areas approved by ordinance after
13		January 1, 1986, the municipality finds: (a) that the
14		redevelopment project area would not reasonably be
15		developed without the use of such incremental revenues,
16		and (b) that such incremental revenues will be exclusively
17		utilized for the development of the redevelopment project
18		area.
19		(5) If: (a) the redevelopment plan will not result in
20		displacement of residents from 10 or more inhabited
21		residential units, and the municipality certifies in the
22		plan that such displacement will not result from the plan;
23		or (b) the redevelopment plan is for a redevelopment
24		project area located within a transit facility improvement
25		area established pursuant to Section 11-74.4-3.3, and the
26		applicable project is subject to the process for

SB0188 Engrossed - 29 - LRB102 02806 AWJ 12814 b
1		evaluation of environmental effects under the National
2		Environmental Policy Act of 1969, 42 U.S.C. 4321 et seq.,
3		then a housing impact study need not be performed. If,
4		however, the redevelopment plan would result in the
5		displacement of residents from 10 or more inhabited
6		residential units, or if the redevelopment project area
7		contains 75 or more inhabited residential units and no
8		certification is made, then the municipality shall
9		prepare, as part of the separate feasibility report
10		required by subsection (a) of Section 11-74.4-5, a housing
11		impact study.
12		Part I of the housing impact study shall include (i)
13		data as to whether the residential units are single family
14		or multi-family units, (ii) the number and type of rooms
15		within the units, if that information is available, (iii)
16		whether the units are inhabited or uninhabited, as
17		determined not less than 45 days before the date that the
18		ordinance or resolution required by subsection (a) of
19		Section 11-74.4-5 is passed, and (iv) data as to the
20		racial and ethnic composition of the residents in the
21		inhabited residential units. The data requirement as to
22		the racial and ethnic composition of the residents in the
23		inhabited residential units shall be deemed to be fully
24		satisfied by data from the most recent federal census.
25		Part II of the housing impact study shall identify the
26		inhabited residential units in the proposed redevelopment

SB0188 Engrossed - 30 - LRB102 02806 AWJ 12814 b
1		project area that are to be or may be removed. If inhabited
2		residential units are to be removed, then the housing
3		impact study shall identify (i) the number and location of
4		those units that will or may be removed, (ii) the
5		municipality's plans for relocation assistance for those
6		residents in the proposed redevelopment project area whose
7		residences are to be removed, (iii) the availability of
8		replacement housing for those residents whose residences
9		are to be removed, and shall identify the type, location,
10		and cost of the housing, and (iv) the type and extent of
11		relocation assistance to be provided.
12		(6) On and after November 1, 1999, the housing impact
13		study required by paragraph (5) shall be incorporated in
14		the redevelopment plan for the redevelopment project area.
15		(7) On and after November 1, 1999, no redevelopment
16		plan shall be adopted, nor an existing plan amended, nor
17		shall residential housing that is occupied by households
18		of low-income and very low-income persons in currently
19		existing redevelopment project areas be removed after
20		November 1, 1999 unless the redevelopment plan provides,
21		with respect to inhabited housing units that are to be
22		removed for households of low-income and very low-income
23		persons, affordable housing and relocation assistance not
24		less than that which would be provided under the federal
25		Uniform Relocation Assistance and Real Property
26		Acquisition Policies Act of 1970 and the regulations under

SB0188 Engrossed - 31 - LRB102 02806 AWJ 12814 b
1		that Act, including the eligibility criteria. Affordable
2		housing may be either existing or newly constructed
3		housing. For purposes of this paragraph (7), "low-income
4		households", "very low-income households", and "affordable
5		housing" have the meanings set forth in the Illinois
6		Affordable Housing Act. The municipality shall make a good
7		faith effort to ensure that this affordable housing is
8		located in or near the redevelopment project area within
9		the municipality.
10		(8) On and after November 1, 1999, if, after the
11		adoption of the redevelopment plan for the redevelopment
12		project area, any municipality desires to amend its
13		redevelopment plan to remove more inhabited residential
14		units than specified in its original redevelopment plan,
15		that change shall be made in accordance with the
16		procedures in subsection (c) of Section 11-74.4-5.
17		(9) For redevelopment project areas designated prior
18		to November 1, 1999, the redevelopment plan may be amended
19		without further joint review board meeting or hearing,
20		provided that the municipality shall give notice of any
21		such changes by mail to each affected taxing district and
22		registrant on the interested party registry, to authorize
23		the municipality to expend tax increment revenues for
24		redevelopment project costs defined by paragraphs (5) and
25		(7.5), subparagraphs (E) and (F) of paragraph (11), and
26		paragraph (11.5) of subsection (q) of Section 11-74.4-3,

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1		so long as the changes do not increase the total estimated
2		redevelopment project costs set out in the redevelopment
3		plan by more than 5% after adjustment for inflation from
4		the date the plan was adopted.
5		(o) "Redevelopment project" means any public and private
6		development project in furtherance of the objectives of a
7		redevelopment plan. On and after November 1, 1999 (the
8		effective date of Public Act 91-478), no redevelopment plan
9		may be approved or amended that includes the development of
10		vacant land (i) with a golf course and related clubhouse and
11		other facilities or (ii) designated by federal, State, county,
12		or municipal government as public land for outdoor
13		recreational activities or for nature preserves and used for
14		that purpose within 5 years prior to the adoption of the
15		redevelopment plan. For the purpose of this subsection,
16		"recreational activities" is limited to mean camping and
17		hunting.
18		(p) "Redevelopment project area" means an area designated
19		by the municipality, which is not less in the aggregate than 1
20		1/2 acres and in respect to which the municipality has made a
21		finding that there exist conditions which cause the area to be
22		classified as an industrial park conservation area or a
23		blighted area or a conservation area, or a combination of both
24		blighted areas and conservation areas.
25		(p-1) Notwithstanding any provision of this Act to the
26		contrary, on and after August 25, 2009 (the effective date of

SB0188 Engrossed - 33 - LRB102 02806 AWJ 12814 b
1		Public Act 96-680), a redevelopment project area may include
2		areas within a one-half mile radius of an existing or proposed
3		Regional Transportation Authority Suburban Transit Access
4		Route (STAR Line) station without a finding that the area is
5		classified as an industrial park conservation area, a blighted
6		area, a conservation area, or a combination thereof, but only
7		if the municipality receives unanimous consent from the joint
8		review board created to review the proposed redevelopment
9		project area.
10		(p-2) Notwithstanding any provision of this Act to the
11		contrary, on and after the effective date of this amendatory
12		Act of the 99th General Assembly, a redevelopment project area
13		may include areas within a transit facility improvement area
14		that has been established pursuant to Section 11-74.4-3.3
15		without a finding that the area is classified as an industrial
16		park conservation area, a blighted area, a conservation area,
17		or any combination thereof.
18		(q) "Redevelopment project costs", except for
19		redevelopment project areas created pursuant to subsection
20		(p-1) or (p-2), means and includes the sum total of all
21		reasonable or necessary costs incurred or estimated to be
22		incurred, and any such costs incidental to a redevelopment
23		plan and a redevelopment project. Such costs include, without
24		limitation, the following:
25		(1) Costs of studies, surveys, development of plans,
26		and specifications, implementation and administration of

SB0188 Engrossed - 34 - LRB102 02806 AWJ 12814 b
1		the redevelopment plan including but not limited to staff
2		and professional service costs for architectural,
3		engineering, legal, financial, planning or other services,
4		provided however that no charges for professional services
5		may be based on a percentage of the tax increment
6		collected; except that on and after November 1, 1999 (the
7		effective date of Public Act 91-478), no contracts for
8		professional services, excluding architectural and
9		engineering services, may be entered into if the terms of
10		the contract extend beyond a period of 3 years. In
11		addition, "redevelopment project costs" shall not include
12		lobbying expenses. After consultation with the
13		municipality, each tax increment consultant or advisor to
14		a municipality that plans to designate or has designated a
15		redevelopment project area shall inform the municipality
16		in writing of any contracts that the consultant or advisor
17		has entered into with entities or individuals that have
18		received, or are receiving, payments financed by tax
19		increment revenues produced by the redevelopment project
20		area with respect to which the consultant or advisor has
21		performed, or will be performing, service for the
22		municipality. This requirement shall be satisfied by the
23		consultant or advisor before the commencement of services
24		for the municipality and thereafter whenever any other
25		contracts with those individuals or entities are executed
26		by the consultant or advisor;

SB0188 Engrossed - 35 - LRB102 02806 AWJ 12814 b
1		(1.5) After July 1, 1999, annual administrative costs
2		shall not include general overhead or administrative costs
3		of the municipality that would still have been incurred by
4		the municipality if the municipality had not designated a
5		redevelopment project area or approved a redevelopment
6		plan;
7		(1.6) The cost of marketing sites within the
8		redevelopment project area to prospective businesses,
9		developers, and investors;
10		(2) Property assembly costs, including but not limited
11		to acquisition of land and other property, real or
12		personal, or rights or interests therein, demolition of
13		buildings, site preparation, site improvements that serve
14		as an engineered barrier addressing ground level or below
15		ground environmental contamination, including, but not
16		limited to parking lots and other concrete or asphalt
17		barriers, and the clearing and grading of land;
18		(3) Costs of rehabilitation, reconstruction or repair
19		or remodeling of existing public or private buildings,
20		fixtures, and leasehold improvements; and the cost of
21		replacing an existing public building if pursuant to the
22		implementation of a redevelopment project the existing
23		public building is to be demolished to use the site for
24		private investment or devoted to a different use requiring
25		private investment; including any direct or indirect costs
26		relating to Green Globes or LEED certified construction

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1		elements or construction elements with an equivalent
2		certification;
3		(4) Costs of the construction of public works or
4		improvements, including any direct or indirect costs
5		relating to Green Globes or LEED certified construction
6		elements or construction elements with an equivalent
7		certification, except that on and after November 1, 1999,
8		redevelopment project costs shall not include the cost of
9		constructing a new municipal public building principally
10		used to provide offices, storage space, or conference
11		facilities or vehicle storage, maintenance, or repair for
12		administrative, public safety, or public works personnel
13		and that is not intended to replace an existing public
14		building as provided under paragraph (3) of subsection (q)
15		of Section 11-74.4-3 unless either (i) the construction of
16		the new municipal building implements a redevelopment
17		project that was included in a redevelopment plan that was
18		adopted by the municipality prior to November 1, 1999,
19		(ii) the municipality makes a reasonable determination in
20		the redevelopment plan, supported by information that
21		provides the basis for that determination, that the new
22		municipal building is required to meet an increase in the
23		need for public safety purposes anticipated to result from
24		the implementation of the redevelopment plan, or (iii) the
25		new municipal public building is for the storage,
26		maintenance, or repair of transit vehicles and is located

SB0188 Engrossed - 37 - LRB102 02806 AWJ 12814 b
1		in a transit facility improvement area that has been
2		established pursuant to Section 11-74.4-3.3;
3		(5) Costs of job training and retraining projects,
4		including the cost of "welfare to work" programs
5		implemented by businesses located within the redevelopment
6		project area;
7		(6) Financing costs, including but not limited to all
8		necessary and incidental expenses related to the issuance
9		of obligations and which may include payment of interest
10		on any obligations issued hereunder including interest
11		accruing during the estimated period of construction of
12		any redevelopment project for which such obligations are
13		issued and for not exceeding 36 months thereafter and
14		including reasonable reserves related thereto;
15		(7) To the extent the municipality by written
16		agreement accepts and approves the same, all or a portion
17		of a taxing district's capital costs resulting from the
18		redevelopment project necessarily incurred or to be
19		incurred within a taxing district in furtherance of the
20		objectives of the redevelopment plan and project;
21		(7.5) For redevelopment project areas designated (or
22		redevelopment project areas amended to add or increase the
23		number of tax-increment-financing assisted housing units)
24		on or after November 1, 1999, an elementary, secondary, or
25		unit school district's increased costs attributable to
26		assisted housing units located within the redevelopment

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1		project area for which the developer or redeveloper
2		receives financial assistance through an agreement with
3		the municipality or because the municipality incurs the
4		cost of necessary infrastructure improvements within the
5		boundaries of the assisted housing sites necessary for the
6		completion of that housing as authorized by this Act, and
7		which costs shall be paid by the municipality from the
8		Special Tax Allocation Fund when the tax increment revenue
9		is received as a result of the assisted housing units and
10		shall be calculated annually as follows:
11		(A) for foundation districts, excluding any school
12		district in a municipality with a population in excess
13		of 1,000,000, by multiplying the district's increase
14		in attendance resulting from the net increase in new
15		students enrolled in that school district who reside
16		in housing units within the redevelopment project area
17		that have received financial assistance through an
18		agreement with the municipality or because the
19		municipality incurs the cost of necessary
20		infrastructure improvements within the boundaries of
21		the housing sites necessary for the completion of that
22		housing as authorized by this Act since the
23		designation of the redevelopment project area by the
24		most recently available per capita tuition cost as
25		defined in Section 10-20.12a of the School Code less
26		any increase in general State aid as defined in

SB0188 Engrossed - 39 - LRB102 02806 AWJ 12814 b
1		Section 18-8.05 of the School Code or evidence-based
2		funding as defined in Section 18-8.15 of the School
3		Code attributable to these added new students subject
4		to the following annual limitations:
5		(i) for unit school districts with a district
6		average 1995-96 Per Capita Tuition Charge of less
7		than $5,900, no more than 25% of the total amount
8		of property tax increment revenue produced by
9		those housing units that have received tax
10		increment finance assistance under this Act;
11		(ii) for elementary school districts with a
12		district average 1995-96 Per Capita Tuition Charge
13		of less than $5,900, no more than 17% of the total
14		amount of property tax increment revenue produced
15		by those housing units that have received tax
16		increment finance assistance under this Act; and
17		(iii) for secondary school districts with a
18		district average 1995-96 Per Capita Tuition Charge
19		of less than $5,900, no more than 8% of the total
20		amount of property tax increment revenue produced
21		by those housing units that have received tax
22		increment finance assistance under this Act.
23		(B) For alternate method districts, flat grant
24		districts, and foundation districts with a district
25		average 1995-96 Per Capita Tuition Charge equal to or
26		more than $5,900, excluding any school district with a

SB0188 Engrossed - 40 - LRB102 02806 AWJ 12814 b
1		population in excess of 1,000,000, by multiplying the
2		district's increase in attendance resulting from the
3		net increase in new students enrolled in that school
4		district who reside in housing units within the
5		redevelopment project area that have received
6		financial assistance through an agreement with the
7		municipality or because the municipality incurs the
8		cost of necessary infrastructure improvements within
9		the boundaries of the housing sites necessary for the
10		completion of that housing as authorized by this Act
11		since the designation of the redevelopment project
12		area by the most recently available per capita tuition
13		cost as defined in Section 10-20.12a of the School
14		Code less any increase in general state aid as defined
15		in Section 18-8.05 of the School Code or
16		evidence-based funding as defined in Section 18-8.15
17		of the School Code attributable to these added new
18		students subject to the following annual limitations:
19		(i) for unit school districts, no more than
20		40% of the total amount of property tax increment
21		revenue produced by those housing units that have
22		received tax increment finance assistance under
23		this Act;
24		(ii) for elementary school districts, no more
25		than 27% of the total amount of property tax
26		increment revenue produced by those housing units

SB0188 Engrossed - 41 - LRB102 02806 AWJ 12814 b
1		that have received tax increment finance
2		assistance under this Act; and
3		(iii) for secondary school districts, no more
4		than 13% of the total amount of property tax
5		increment revenue produced by those housing units
6		that have received tax increment finance
7		assistance under this Act.
8		(C) For any school district in a municipality with
9		a population in excess of 1,000,000, the following
10		restrictions shall apply to the reimbursement of
11		increased costs under this paragraph (7.5):
12		(i) no increased costs shall be reimbursed
13		unless the school district certifies that each of
14		the schools affected by the assisted housing
15		project is at or over its student capacity;
16		(ii) the amount reimbursable shall be reduced
17		by the value of any land donated to the school
18		district by the municipality or developer, and by
19		the value of any physical improvements made to the
20		schools by the municipality or developer; and
21		(iii) the amount reimbursed may not affect
22		amounts otherwise obligated by the terms of any
23		bonds, notes, or other funding instruments, or the
24		terms of any redevelopment agreement.
25		Any school district seeking payment under this
26		paragraph (7.5) shall, after July 1 and before

SB0188 Engrossed - 42 - LRB102 02806 AWJ 12814 b
1		September 30 of each year, provide the municipality
2		with reasonable evidence to support its claim for
3		reimbursement before the municipality shall be
4		required to approve or make the payment to the school
5		district. If the school district fails to provide the
6		information during this period in any year, it shall
7		forfeit any claim to reimbursement for that year.
8		School districts may adopt a resolution waiving the
9		right to all or a portion of the reimbursement
10		otherwise required by this paragraph (7.5). By
11		acceptance of this reimbursement the school district
12		waives the right to directly or indirectly set aside,
13		modify, or contest in any manner the establishment of
14		the redevelopment project area or projects;
15		(7.7) For redevelopment project areas designated (or
16		redevelopment project areas amended to add or increase the
17		number of tax-increment-financing assisted housing units)
18		on or after January 1, 2005 (the effective date of Public
19		Act 93-961), a public library district's increased costs
20		attributable to assisted housing units located within the
21		redevelopment project area for which the developer or
22		redeveloper receives financial assistance through an
23		agreement with the municipality or because the
24		municipality incurs the cost of necessary infrastructure
25		improvements within the boundaries of the assisted housing
26		sites necessary for the completion of that housing as

SB0188 Engrossed - 43 - LRB102 02806 AWJ 12814 b
1		authorized by this Act shall be paid to the library
2		district by the municipality from the Special Tax
3		Allocation Fund when the tax increment revenue is received
4		as a result of the assisted housing units. This paragraph
5		(7.7) applies only if (i) the library district is located
6		in a county that is subject to the Property Tax Extension
7		Limitation Law or (ii) the library district is not located
8		in a county that is subject to the Property Tax Extension
9		Limitation Law but the district is prohibited by any other
10		law from increasing its tax levy rate without a prior
11		voter referendum.
12		The amount paid to a library district under this
13		paragraph (7.7) shall be calculated by multiplying (i) the
14		net increase in the number of persons eligible to obtain a
15		library card in that district who reside in housing units
16		within the redevelopment project area that have received
17		financial assistance through an agreement with the
18		municipality or because the municipality incurs the cost
19		of necessary infrastructure improvements within the
20		boundaries of the housing sites necessary for the
21		completion of that housing as authorized by this Act since
22		the designation of the redevelopment project area by (ii)
23		the per-patron cost of providing library services so long
24		as it does not exceed $120. The per-patron cost shall be
25		the Total Operating Expenditures Per Capita for the
26		library in the previous fiscal year. The municipality may

SB0188 Engrossed - 44 - LRB102 02806 AWJ 12814 b
1		deduct from the amount that it must pay to a library
2		district under this paragraph any amount that it has
3		voluntarily paid to the library district from the tax
4		increment revenue. The amount paid to a library district
5		under this paragraph (7.7) shall be no more than 2% of the
6		amount produced by the assisted housing units and
7		deposited into the Special Tax Allocation Fund.
8		A library district is not eligible for any payment
9		under this paragraph (7.7) unless the library district has
10		experienced an increase in the number of patrons from the
11		municipality that created the tax-increment-financing
12		district since the designation of the redevelopment
13		project area.
14		Any library district seeking payment under this
15		paragraph (7.7) shall, after July 1 and before September
16		30 of each year, provide the municipality with convincing
17		evidence to support its claim for reimbursement before the
18		municipality shall be required to approve or make the
19		payment to the library district. If the library district
20		fails to provide the information during this period in any
21		year, it shall forfeit any claim to reimbursement for that
22		year. Library districts may adopt a resolution waiving the
23		right to all or a portion of the reimbursement otherwise
24		required by this paragraph (7.7). By acceptance of such
25		reimbursement, the library district shall forfeit any
26		right to directly or indirectly set aside, modify, or

SB0188 Engrossed - 45 - LRB102 02806 AWJ 12814 b
1		contest in any manner whatsoever the establishment of the
2		redevelopment project area or projects;
3		(8) Relocation costs to the extent that a municipality
4		determines that relocation costs shall be paid or is
5		required to make payment of relocation costs by federal or
6		State law or in order to satisfy subparagraph (7) of
7		subsection (n);
8		(9) Payment in lieu of taxes;
9		(10) Costs of job training, retraining, advanced
10		vocational education or career education, including but
11		not limited to courses in occupational, semi-technical or
12		technical fields leading directly to employment, incurred
13		by one or more taxing districts, provided that such costs
14		(i) are related to the establishment and maintenance of
15		additional job training, advanced vocational education or
16		career education programs for persons employed or to be
17		employed by employers located in a redevelopment project
18		area; and (ii) when incurred by a taxing district or
19		taxing districts other than the municipality, are set
20		forth in a written agreement by or among the municipality
21		and the taxing district or taxing districts, which
22		agreement describes the program to be undertaken,
23		including but not limited to the number of employees to be
24		trained, a description of the training and services to be
25		provided, the number and type of positions available or to
26		be available, itemized costs of the program and sources of

SB0188 Engrossed - 46 - LRB102 02806 AWJ 12814 b
1		funds to pay for the same, and the term of the agreement.
2		Such costs include, specifically, the payment by community
3		college districts of costs pursuant to Sections 3-37,
4		3-38, 3-40 and 3-40.1 of the Public Community College Act
5		and by school districts of costs pursuant to Sections
6		10-22.20a and 10-23.3a of the School Code;
7		(11) Interest cost incurred by a redeveloper related
8		to the construction, renovation or rehabilitation of a
9		redevelopment project provided that:
10		(A) such costs are to be paid directly from the
11		special tax allocation fund established pursuant to
12		this Act;
13		(B) such payments in any one year may not exceed
14		30% of the annual interest costs incurred by the
15		redeveloper with regard to the redevelopment project
16		during that year;
17		(C) if there are not sufficient funds available in
18		the special tax allocation fund to make the payment
19		pursuant to this paragraph (11) then the amounts so
20		due shall accrue and be payable when sufficient funds
21		are available in the special tax allocation fund;
22		(D) the total of such interest payments paid
23		pursuant to this Act may not exceed 30% of the total
24		(i) cost paid or incurred by the redeveloper for the
25		redevelopment project plus (ii) redevelopment project
26		costs excluding any property assembly costs and any

SB0188 Engrossed - 47 - LRB102 02806 AWJ 12814 b
1		relocation costs incurred by a municipality pursuant
2		to this Act;
3		(E) the cost limits set forth in subparagraphs (B)
4		and (D) of paragraph (11) shall be modified for the
5		financing of rehabilitated or new housing units for
6		low-income households and very low-income households,
7		as defined in Section 3 of the Illinois Affordable
8		Housing Act. The percentage of 75% shall be
9		substituted for 30% in subparagraphs (B) and (D) of
10		paragraph (11); and
11		(F) instead of the eligible costs provided by
12		subparagraphs (B) and (D) of paragraph (11), as
13		modified by this subparagraph, and notwithstanding any
14		other provisions of this Act to the contrary, the
15		municipality may pay from tax increment revenues up to
16		50% of the cost of construction of new housing units to
17		be occupied by low-income households and very
18		low-income households as defined in Section 3 of the
19		Illinois Affordable Housing Act. The cost of
20		construction of those units may be derived from the
21		proceeds of bonds issued by the municipality under
22		this Act or other constitutional or statutory
23		authority or from other sources of municipal revenue
24		that may be reimbursed from tax increment revenues or
25		the proceeds of bonds issued to finance the
26		construction of that housing.

SB0188 Engrossed - 48 - LRB102 02806 AWJ 12814 b
1		The eligible costs provided under this
2		subparagraph (F) of paragraph (11) shall be an
3		eligible cost for the construction, renovation, and
4		rehabilitation of all low and very low-income housing
5		units, as defined in Section 3 of the Illinois
6		Affordable Housing Act, within the redevelopment
7		project area. If the low and very low-income units are
8		part of a residential redevelopment project that
9		includes units not affordable to low and very
10		low-income households, only the low and very
11		low-income units shall be eligible for benefits under
12		this subparagraph (F) of paragraph (11). The standards
13		for maintaining the occupancy by low-income households
14		and very low-income households, as defined in Section
15		3 of the Illinois Affordable Housing Act, of those
16		units constructed with eligible costs made available
17		under the provisions of this subparagraph (F) of
18		paragraph (11) shall be established by guidelines
19		adopted by the municipality. The responsibility for
20		annually documenting the initial occupancy of the
21		units by low-income households and very low-income
22		households, as defined in Section 3 of the Illinois
23		Affordable Housing Act, shall be that of the then
24		current owner of the property. For ownership units,
25		the guidelines will provide, at a minimum, for a
26		reasonable recapture of funds, or other appropriate

SB0188 Engrossed - 49 - LRB102 02806 AWJ 12814 b
1		methods designed to preserve the original
2		affordability of the ownership units. For rental
3		units, the guidelines will provide, at a minimum, for
4		the affordability of rent to low and very low-income
5		households. As units become available, they shall be
6		rented to income-eligible tenants. The municipality
7		may modify these guidelines from time to time; the
8		guidelines, however, shall be in effect for as long as
9		tax increment revenue is being used to pay for costs
10		associated with the units or for the retirement of
11		bonds issued to finance the units or for the life of
12		the redevelopment project area, whichever is later;
13		(11.5) If the redevelopment project area is located
14		within a municipality with a population of more than
15		100,000, the cost of day care services for children of
16		employees from low-income families working for businesses
17		located within the redevelopment project area and all or a
18		portion of the cost of operation of day care centers
19		established by redevelopment project area businesses to
20		serve employees from low-income families working in
21		businesses located in the redevelopment project area. For
22		the purposes of this paragraph, "low-income families"
23		means families whose annual income does not exceed 80% of
24		the municipal, county, or regional median income, adjusted
25		for family size, as the annual income and municipal,
26		county, or regional median income are determined from time

SB0188 Engrossed - 50 - LRB102 02806 AWJ 12814 b
1		to time by the United States Department of Housing and
2		Urban Development.
3		(12) Costs relating to the development of urban
4		agricultural areas under Division 15.2 of the Illinois
5		Municipal Code.
6		(13) Costs of business interruption or closures. Such
7		costs are payable to businesses located within the
8		redevelopment area that have experienced business
9		interruption or other adverse conditions directly or
10		indirectly attributable to the COVID-19 public health
11		emergency. These costs may be reimbursed in the form of
12		grants, subsidies, or loans.
13		The municipality may establish, by ordinance or
14		resolution, procedures for the payment of such costs,
15		including application procedures, grant or loan
16		agreements, certifications, payment methodologies, and
17		other accountability measures that may be imposed upon
18		participating businesses.
19		As used in this subsection, "costs of business
20		interruption" means either of the following: decreases in
21		revenue caused by closing or limiting access to the
22		business establishment to comply with COVID-19 public
23		health emergency prevention directives or to otherwise
24		prevent the spread of COVID-19 within the business
25		establishment; or decreases in revenue caused by decreased
26		customer demand as a result of the COVID-19 public health

SB0188 Engrossed - 51 - LRB102 02806 AWJ 12814 b
1		emergency.
2		Unless explicitly stated herein the cost of construction
3		of new privately-owned buildings shall not be an eligible
4		redevelopment project cost.
5		After November 1, 1999 (the effective date of Public Act
6		91-478), none of the redevelopment project costs enumerated in
7		this subsection shall be eligible redevelopment project costs
8		if those costs would provide direct financial support to a
9		retail entity initiating operations in the redevelopment
10		project area while terminating operations at another Illinois
11		location within 10 miles of the redevelopment project area but
12		outside the boundaries of the redevelopment project area
13		municipality. For purposes of this paragraph, termination
14		means a closing of a retail operation that is directly related
15		to the opening of the same operation or like retail entity
16		owned or operated by more than 50% of the original ownership in
17		a redevelopment project area, but it does not mean closing an
18		operation for reasons beyond the control of the retail entity,
19		as documented by the retail entity, subject to a reasonable
20		finding by the municipality that the current location
21		contained inadequate space, had become economically obsolete,
22		or was no longer a viable location for the retailer or
23		serviceman.
24		No cost shall be a redevelopment project cost in a
25		redevelopment project area if used to demolish, remove, or
26		substantially modify a historic resource, after August 26,

SB0188 Engrossed - 52 - LRB102 02806 AWJ 12814 b
1		2008 (the effective date of Public Act 95-934), unless no
2		prudent and feasible alternative exists. "Historic resource"
3		for the purpose of this paragraph means (i) a place or
4		structure that is included or eligible for inclusion on the
5		National Register of Historic Places or (ii) a contributing
6		structure in a district on the National Register of Historic
7		Places. This paragraph does not apply to a place or structure
8		for which demolition, removal, or modification is subject to
9		review by the preservation agency of a Certified Local
10		Government designated as such by the National Park Service of
11		the United States Department of the Interior.
12		If a special service area has been established pursuant to
13		the Special Service Area Tax Act or Special Service Area Tax
14		Law, then any tax increment revenues derived from the tax
15		imposed pursuant to the Special Service Area Tax Act or
16		Special Service Area Tax Law may be used within the
17		redevelopment project area for the purposes permitted by that
18		Act or Law as well as the purposes permitted by this Act.
19		(q-1) For redevelopment project areas created pursuant to
20		subsection (p-1), redevelopment project costs are limited to
21		those costs in paragraph (q) that are related to the existing
22		or proposed Regional Transportation Authority Suburban Transit
23		Access Route (STAR Line) station.
24		(q-2) For a redevelopment project area located within a
25		transit facility improvement area established pursuant to
26		Section 11-74.4-3.3, redevelopment project costs means those

SB0188 Engrossed - 53 - LRB102 02806 AWJ 12814 b
1		costs described in subsection (q) that are related to the
2		construction, reconstruction, rehabilitation, remodeling, or
3		repair of any existing or proposed transit facility.
4		(r) "State Sales Tax Boundary" means the redevelopment
5		project area or the amended redevelopment project area
6		boundaries which are determined pursuant to subsection (9) of
7		Section 11-74.4-8a of this Act. The Department of Revenue
8		shall certify pursuant to subsection (9) of Section 11-74.4-8a
9		the appropriate boundaries eligible for the determination of
10		State Sales Tax Increment.
11		(s) "State Sales Tax Increment" means an amount equal to
12		the increase in the aggregate amount of taxes paid by
13		retailers and servicemen, other than retailers and servicemen
14		subject to the Public Utilities Act, on transactions at places
15		of business located within a State Sales Tax Boundary pursuant
16		to the Retailers' Occupation Tax Act, the Use Tax Act, the
17		Service Use Tax Act, and the Service Occupation Tax Act,
18		except such portion of such increase that is paid into the
19		State and Local Sales Tax Reform Fund, the Local Government
20		Distributive Fund, the Local Government Tax Fund and the
21		County and Mass Transit District Fund, for as long as State
22		participation exists, over and above the Initial Sales Tax
23		Amounts, Adjusted Initial Sales Tax Amounts or the Revised
24		Initial Sales Tax Amounts for such taxes as certified by the
25		Department of Revenue and paid under those Acts by retailers
26		and servicemen on transactions at places of business located

SB0188 Engrossed - 54 - LRB102 02806 AWJ 12814 b
1		within the State Sales Tax Boundary during the base year which
2		shall be the calendar year immediately prior to the year in
3		which the municipality adopted tax increment allocation
4		financing, less 3.0% of such amounts generated under the
5		Retailers' Occupation Tax Act, Use Tax Act and Service Use Tax
6		Act and the Service Occupation Tax Act, which sum shall be
7		appropriated to the Department of Revenue to cover its costs
8		of administering and enforcing this Section. For purposes of
9		computing the aggregate amount of such taxes for base years
10		occurring prior to 1985, the Department of Revenue shall
11		compute the Initial Sales Tax Amount for such taxes and deduct
12		therefrom an amount equal to 4% of the aggregate amount of
13		taxes per year for each year the base year is prior to 1985,
14		but not to exceed a total deduction of 12%. The amount so
15		determined shall be known as the "Adjusted Initial Sales Tax
16		Amount". For purposes of determining the State Sales Tax
17		Increment the Department of Revenue shall for each period
18		subtract from the tax amounts received from retailers and
19		servicemen on transactions located in the State Sales Tax
20		Boundary, the certified Initial Sales Tax Amounts, Adjusted
21		Initial Sales Tax Amounts or Revised Initial Sales Tax Amounts
22		for the Retailers' Occupation Tax Act, the Use Tax Act, the
23		Service Use Tax Act and the Service Occupation Tax Act. For the
24		State Fiscal Year 1989 this calculation shall be made by
25		utilizing the calendar year 1987 to determine the tax amounts
26		received. For the State Fiscal Year 1990, this calculation

SB0188 Engrossed - 55 - LRB102 02806 AWJ 12814 b
1		shall be made by utilizing the period from January 1, 1988,
2		until September 30, 1988, to determine the tax amounts
3		received from retailers and servicemen, which shall have
4		deducted therefrom nine-twelfths of the certified Initial
5		Sales Tax Amounts, Adjusted Initial Sales Tax Amounts or the
6		Revised Initial Sales Tax Amounts as appropriate. For the
7		State Fiscal Year 1991, this calculation shall be made by
8		utilizing the period from October 1, 1988, until June 30,
9		1989, to determine the tax amounts received from retailers and
10		servicemen, which shall have deducted therefrom nine-twelfths
11		of the certified Initial State Sales Tax Amounts, Adjusted
12		Initial Sales Tax Amounts or the Revised Initial Sales Tax
13		Amounts as appropriate. For every State Fiscal Year
14		thereafter, the applicable period shall be the 12 months
15		beginning July 1 and ending on June 30, to determine the tax
16		amounts received which shall have deducted therefrom the
17		certified Initial Sales Tax Amounts, Adjusted Initial Sales
18		Tax Amounts or the Revised Initial Sales Tax Amounts.
19		Municipalities intending to receive a distribution of State
20		Sales Tax Increment must report a list of retailers to the
21		Department of Revenue by October 31, 1988 and by July 31, of
22		each year thereafter.
23		(t) "Taxing districts" means counties, townships, cities
24		and incorporated towns and villages, school, road, park,
25		sanitary, mosquito abatement, forest preserve, public health,
26		fire protection, river conservancy, tuberculosis sanitarium

SB0188 Engrossed - 56 - LRB102 02806 AWJ 12814 b
1		and any other municipal corporations or districts with the
2		power to levy taxes.
3		(u) "Taxing districts' capital costs" means those costs of
4		taxing districts for capital improvements that are found by
5		the municipal corporate authorities to be necessary and
6		directly result from the redevelopment project.
7		(v) As used in subsection (a) of Section 11-74.4-3 of this
8		Act, "vacant land" means any parcel or combination of parcels
9		of real property without industrial, commercial, and
10		residential buildings which has not been used for commercial
11		agricultural purposes within 5 years prior to the designation
12		of the redevelopment project area, unless the parcel is
13		included in an industrial park conservation area or the parcel
14		has been subdivided; provided that if the parcel was part of a
15		larger tract that has been divided into 3 or more smaller
16		tracts that were accepted for recording during the period from
17		1950 to 1990, then the parcel shall be deemed to have been
18		subdivided, and all proceedings and actions of the
19		municipality taken in that connection with respect to any
20		previously approved or designated redevelopment project area
21		or amended redevelopment project area are hereby validated and
22		hereby declared to be legally sufficient for all purposes of
23		this Act. For purposes of this Section and only for land
24		subject to the subdivision requirements of the Plat Act, land
25		is subdivided when the original plat of the proposed
26		Redevelopment Project Area or relevant portion thereof has

SB0188 Engrossed - 57 - LRB102 02806 AWJ 12814 b
1		been properly certified, acknowledged, approved, and recorded
2		or filed in accordance with the Plat Act and a preliminary
3		plat, if any, for any subsequent phases of the proposed
4		Redevelopment Project Area or relevant portion thereof has
5		been properly approved and filed in accordance with the
6		applicable ordinance of the municipality.
7		(w) "Annual Total Increment" means the sum of each
8		municipality's annual Net Sales Tax Increment and each
9		municipality's annual Net Utility Tax Increment. The ratio of
10		the Annual Total Increment of each municipality to the Annual
11		Total Increment for all municipalities, as most recently
12		calculated by the Department, shall determine the proportional
13		shares of the Illinois Tax Increment Fund to be distributed to
14		each municipality.
15		(x) "LEED certified" means any certification level of
16		construction elements by a qualified Leadership in Energy and
17		Environmental Design Accredited Professional as determined by
18		the U.S. Green Building Council.
19		(y) "Green Globes certified" means any certification level
20		of construction elements by a qualified Green Globes
21		Professional as determined by the Green Building Initiative.
22		(Source: P.A. 99-792, eff. 8-12-16; 100-201, eff. 8-18-17;
23		100-465, eff. 8-31-17; 100-1133, eff. 1-1-19.)