Bill Text: IL SB0277 | 2015-2016 | 99th General Assembly | Engrossed

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Bill Title: Amends the Small Business Contracts Act. Makes a technical change in a Section concerning the short title.

Spectrum: Moderate Partisan Bill (Democrat 4-1)

Status: (Engrossed - Dead) 2015-05-12 - Referred to Rules Committee [SB0277 Detail]

Download: Illinois-2015-SB0277-Engrossed.html

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AN ACT concerning finance.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Illinois Municipal Code is amended by
changing Sections 11-74.4-3, 11-74.4-3.5, 11-74.4-4, and
11-74.4-8 and by adding Section 11-74.4-3.3 as follows:
(65 ILCS 5/11-74.4-3) (from Ch. 24, par. 11-74.4-3)
Sec. 11-74.4-3. Definitions. The following terms, wherever
used or referred to in this Division 74.4 shall have the
following respective meanings, unless in any case a different
meaning clearly appears from the context.
(a) For any redevelopment project area that has been
designated pursuant to this Section by an ordinance adopted
prior to November 1, 1999 (the effective date of Public Act
91-478), "blighted area" shall have the meaning set forth in
this Section prior to that date.
On and after November 1, 1999, "blighted area" means any
improved or vacant area within the boundaries of a
redevelopment project area located within the territorial
limits of the municipality where:
(1) If improved, industrial, commercial, and
residential buildings or improvements are detrimental to
the public safety, health, or welfare because of a

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combination of 5 or more of the following factors, each of
which is (i) present, with that presence documented, to a
meaningful extent so that a municipality may reasonably
find that the factor is clearly present within the intent
of the Act and (ii) reasonably distributed throughout the
improved part of the redevelopment project area:
(A) Dilapidation. An advanced state of disrepair
or neglect of necessary repairs to the primary
structural components of buildings or improvements in
such a combination that a documented building
condition analysis determines that major repair is
required or the defects are so serious and so extensive
that the buildings must be removed.
(B) Obsolescence. The condition or process of
falling into disuse. Structures have become ill-suited
for the original use.
(C) Deterioration. With respect to buildings,
defects including, but not limited to, major defects in
the secondary building components such as doors,
windows, porches, gutters and downspouts, and fascia.
With respect to surface improvements, that the
condition of roadways, alleys, curbs, gutters,
sidewalks, off-street parking, and surface storage
areas evidence deterioration, including, but not
limited to, surface cracking, crumbling, potholes,
depressions, loose paving material, and weeds

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protruding through paved surfaces.
(D) Presence of structures below minimum code
standards. All structures that do not meet the
standards of zoning, subdivision, building, fire, and
other governmental codes applicable to property, but
not including housing and property maintenance codes.
(E) Illegal use of individual structures. The use
of structures in violation of applicable federal,
State, or local laws, exclusive of those applicable to
the presence of structures below minimum code
standards.
(F) Excessive vacancies. The presence of buildings
that are unoccupied or under-utilized and that
represent an adverse influence on the area because of
the frequency, extent, or duration of the vacancies.
(G) Lack of ventilation, light, or sanitary
facilities. The absence of adequate ventilation for
light or air circulation in spaces or rooms without
windows, or that require the removal of dust, odor,
gas, smoke, or other noxious airborne materials.
Inadequate natural light and ventilation means the
absence of skylights or windows for interior spaces or
rooms and improper window sizes and amounts by room
area to window area ratios. Inadequate sanitary
facilities refers to the absence or inadequacy of
garbage storage and enclosure, bathroom facilities,

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hot water and kitchens, and structural inadequacies
preventing ingress and egress to and from all rooms and
units within a building.
(H) Inadequate utilities. Underground and overhead
utilities such as storm sewers and storm drainage,
sanitary sewers, water lines, and gas, telephone, and
electrical services that are shown to be inadequate.
Inadequate utilities are those that are: (i) of
insufficient capacity to serve the uses in the
redevelopment project area, (ii) deteriorated,
antiquated, obsolete, or in disrepair, or (iii)
lacking within the redevelopment project area.
(I) Excessive land coverage and overcrowding of
structures and community facilities. The
over-intensive use of property and the crowding of
buildings and accessory facilities onto a site.
Examples of problem conditions warranting the
designation of an area as one exhibiting excessive land
coverage are: (i) the presence of buildings either
improperly situated on parcels or located on parcels of
inadequate size and shape in relation to present-day
standards of development for health and safety and (ii)
the presence of multiple buildings on a single parcel.
For there to be a finding of excessive land coverage,
these parcels must exhibit one or more of the following
conditions: insufficient provision for light and air

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

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

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

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

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

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in paragraph (1) of this subsection, the area has been
designated as a town or village center by ordinance or
comprehensive plan adopted prior to January 1, 1982,
and the area has not been developed for that designated
purpose.
(F) The area qualified as a blighted improved area
immediately prior to becoming vacant, unless there has
been substantial private investment in the immediately
surrounding area.
(4) A redevelopment project area within a transit
facility improvement area that has been designated under
Section 11-74.4-3.3 of this Code.
(b) For any redevelopment project area that has been
designated pursuant to this Section by an ordinance adopted
prior to November 1, 1999 (the effective date of Public Act
91-478), "conservation area" shall have the meaning set forth
in this Section prior to that date.
On and after November 1, 1999, "conservation area" means
any improved area within the boundaries of a redevelopment
project area located within the territorial limits of the
municipality in which 50% or more of the structures in the area
have an age of 35 years or more. Such an area is not yet a
blighted area but because of a combination of 3 or more of the
following factors is detrimental to the public safety, health,
morals or welfare and such an area may become a blighted area:
(1) Dilapidation. An advanced state of disrepair or

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neglect of necessary repairs to the primary structural
components of buildings or improvements in such a
combination that a documented building condition analysis
determines that major repair is required or the defects are
so serious and so extensive that the buildings must be
removed.
(2) Obsolescence. The condition or process of falling
into disuse. Structures have become ill-suited for the
original use.
(3) Deterioration. With respect to buildings, defects
including, but not limited to, major defects in the
secondary building components such as doors, windows,
porches, gutters and downspouts, and fascia. With respect
to surface improvements, that the condition of roadways,
alleys, curbs, gutters, sidewalks, off-street parking, and
surface storage areas evidence deterioration, including,
but not limited to, surface cracking, crumbling, potholes,
depressions, loose paving material, and weeds protruding
through paved surfaces.
(4) Presence of structures below minimum code
standards. All structures that do not meet the standards of
zoning, subdivision, building, fire, and other
governmental codes applicable to property, but not
including housing and property maintenance codes.
(5) Illegal use of individual structures. The use of
structures in violation of applicable federal, State, or

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local laws, exclusive of those applicable to the presence
of structures below minimum code standards.
(6) Excessive vacancies. The presence of buildings
that are unoccupied or under-utilized and that represent an
adverse influence on the area because of the frequency,
extent, or duration of the vacancies.
(7) Lack of ventilation, light, or sanitary
facilities. The absence of adequate ventilation for light
or air circulation in spaces or rooms without windows, or
that require the removal of dust, odor, gas, smoke, or
other noxious airborne materials. Inadequate natural light
and ventilation means the absence or inadequacy of
skylights or windows for interior spaces or rooms and
improper window sizes and amounts by room area to window
area ratios. Inadequate sanitary facilities refers to the
absence or inadequacy of garbage storage and enclosure,
bathroom facilities, hot water and kitchens, and
structural inadequacies preventing ingress and egress to
and from all rooms and units within a building.
(8) Inadequate utilities. Underground and overhead
utilities such as storm sewers and storm drainage, sanitary
sewers, water lines, and gas, telephone, and electrical
services that are shown to be inadequate. Inadequate
utilities are those that are: (i) of insufficient capacity
to serve the uses in the redevelopment project area, (ii)
deteriorated, antiquated, obsolete, or in disrepair, or

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(iii) lacking within the redevelopment project area.
(9) Excessive land coverage and overcrowding of
structures and community facilities. The over-intensive
use of property and the crowding of buildings and accessory
facilities onto a site. Examples of problem conditions
warranting the designation of an area as one exhibiting
excessive land coverage are: the presence of buildings
either improperly situated on parcels or located on parcels
of inadequate size and shape in relation to present-day
standards of development for health and safety and the
presence of multiple buildings on a single parcel. For
there to be a finding of excessive land coverage, these
parcels must exhibit one or more of the following
conditions: insufficient provision for light and air
within or around buildings, increased threat of spread of
fire due to the close proximity of buildings, lack of
adequate or proper access to a public right-of-way, lack of
reasonably required off-street parking, or inadequate
provision for loading and service.
(10) Deleterious land use or layout. The existence of
incompatible land-use relationships, buildings occupied by
inappropriate mixed-uses, or uses considered to be
noxious, offensive, or unsuitable for the surrounding
area.
(11) Lack of community planning. The proposed
redevelopment project area was developed prior to or

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without the benefit or guidance of a community plan. This
means that the development occurred prior to the adoption
by the municipality of a comprehensive or other community
plan or that the plan was not followed at the time of the
area's development. This factor must be documented by
evidence of adverse or incompatible land-use
relationships, inadequate street layout, improper
subdivision, parcels of inadequate shape and size to meet
contemporary development standards, or other evidence
demonstrating an absence of effective community planning.
(12) The area has incurred Illinois Environmental
Protection Agency or United States Environmental
Protection Agency remediation costs for, or a study
conducted by an independent consultant recognized as
having expertise in environmental remediation has
determined a need for, the clean-up of hazardous waste,
hazardous substances, or underground storage tanks
required by State or federal law, provided that the
remediation costs constitute a material impediment to the
development or redevelopment of the redevelopment project
area.
(13) The total equalized assessed value of the proposed
redevelopment project area has declined for 3 of the last 5
calendar years for which information is available or is
increasing at an annual rate that is less than the balance
of the municipality for 3 of the last 5 calendar years for

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

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

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Act, Service Use Tax Act, the Service Occupation Tax Act, the
Municipal Retailers' Occupation Tax Act, and the Municipal
Service Occupation Tax Act by retailers and servicemen on
transactions at places located within the State Sales Tax
Boundary revised pursuant to Section 11-74.4-8a(9) of this Act.
(h) "Municipal Sales Tax Increment" means an amount equal
to the increase in the aggregate amount of taxes paid to a
municipality from the Local Government Tax Fund arising from
sales by retailers and servicemen within the redevelopment
project area or State Sales Tax Boundary, as the case may be,
for as long as the redevelopment project area or State Sales
Tax Boundary, as the case may be, exist over and above the
aggregate amount of taxes as certified by the Illinois
Department of Revenue and paid under the Municipal Retailers'
Occupation Tax Act and the Municipal Service Occupation Tax Act
by retailers and servicemen, on transactions at places of
business located in the redevelopment project area or State
Sales Tax Boundary, as the case may be, during the base year
which shall be the calendar year immediately prior to the year
in which the municipality adopted tax increment allocation
financing. For purposes of computing the aggregate amount of
such taxes for base years occurring prior to 1985, the
Department of Revenue shall determine the Initial Sales Tax
Amounts for such taxes and deduct therefrom an amount equal to
4% of the aggregate amount of taxes per year for each year the
base year is prior to 1985, but not to exceed a total deduction

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of 12%. The amount so determined shall be known as the
"Adjusted Initial Sales Tax Amounts". For purposes of
determining the Municipal Sales Tax Increment, the Department
of Revenue shall for each period subtract from the amount paid
to the municipality from the Local Government Tax Fund arising
from sales by retailers and servicemen on transactions located
in the redevelopment project area or the State Sales Tax
Boundary, as the case may be, the certified Initial Sales Tax
Amounts, the Adjusted Initial Sales Tax Amounts or the Revised
Initial Sales Tax Amounts for the Municipal Retailers'
Occupation Tax Act and the Municipal Service Occupation Tax
Act. For the State Fiscal Year 1989, this calculation shall be
made by utilizing the calendar year 1987 to determine the tax
amounts received. For the State Fiscal Year 1990, this
calculation shall be made by utilizing the period from January
1, 1988, until September 30, 1988, to determine the tax amounts
received from retailers and servicemen pursuant to the
Municipal Retailers' Occupation Tax and the Municipal Service
Occupation Tax Act, which shall have deducted therefrom
nine-twelfths of the certified Initial Sales Tax Amounts, the
Adjusted Initial Sales Tax Amounts or the Revised Initial Sales
Tax Amounts as appropriate. For the State Fiscal Year 1991,
this calculation shall be made by utilizing the period from
October 1, 1988, to June 30, 1989, to determine the tax amounts
received from retailers and servicemen pursuant to the
Municipal Retailers' Occupation Tax and the Municipal Service

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Occupation Tax Act which shall have deducted therefrom
nine-twelfths of the certified Initial Sales Tax Amounts,
Adjusted Initial Sales Tax Amounts or the Revised Initial Sales
Tax Amounts as appropriate. For every State Fiscal Year
thereafter, the applicable period shall be the 12 months
beginning July 1 and ending June 30 to determine the tax
amounts received which shall have deducted therefrom the
certified Initial Sales Tax Amounts, the Adjusted Initial Sales
Tax Amounts or the Revised Initial Sales Tax Amounts, as the
case may be.
(i) "Net State Sales Tax Increment" means the sum of the
following: (a) 80% of the first $100,000 of State Sales Tax
Increment annually generated within a State Sales Tax Boundary;
(b) 60% of the amount in excess of $100,000 but not exceeding
$500,000 of State Sales Tax Increment annually generated within
a State Sales Tax Boundary; and (c) 40% of all amounts in
excess of $500,000 of State Sales Tax Increment annually
generated within a State Sales Tax Boundary. If, however, a
municipality established a tax increment financing district in
a county with a population in excess of 3,000,000 before
January 1, 1986, and the municipality entered into a contract
or issued bonds after January 1, 1986, but before December 31,
1986, to finance redevelopment project costs within a State
Sales Tax Boundary, then the Net State Sales Tax Increment
means, for the fiscal years beginning July 1, 1990, and July 1,
1991, 100% of the State Sales Tax Increment annually generated

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within a State Sales Tax Boundary; and notwithstanding any
other provision of this Act, for those fiscal years the
Department of Revenue shall distribute to those municipalities
100% of their Net State Sales Tax Increment before any
distribution to any other municipality and regardless of
whether or not those other municipalities will receive 100% of
their Net State Sales Tax Increment. For Fiscal Year 1999, and
every year thereafter until the year 2007, for any municipality
that has not entered into a contract or has not issued bonds
prior to June 1, 1988 to finance redevelopment project costs
within a State Sales Tax Boundary, the Net State Sales Tax
Increment shall be calculated as follows: By multiplying the
Net State Sales Tax Increment by 90% in the State Fiscal Year
1999; 80% in the State Fiscal Year 2000; 70% in the State
Fiscal Year 2001; 60% in the State Fiscal Year 2002; 50% in the
State Fiscal Year 2003; 40% in the State Fiscal Year 2004; 30%
in the State Fiscal Year 2005; 20% in the State Fiscal Year
2006; and 10% in the State Fiscal Year 2007. No payment shall
be made for State Fiscal Year 2008 and thereafter.
Municipalities that issued bonds in connection with a
redevelopment project in a redevelopment project area within
the State Sales Tax Boundary prior to July 29, 1991, or that
entered into contracts in connection with a redevelopment
project in a redevelopment project area before June 1, 1988,
shall continue to receive their proportional share of the
Illinois Tax Increment Fund distribution until the date on

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which the redevelopment project is completed or terminated. If,
however, a municipality that issued bonds in connection with a
redevelopment project in a redevelopment project area within
the State Sales Tax Boundary prior to July 29, 1991 retires the
bonds prior to June 30, 2007 or a municipality that entered
into contracts in connection with a redevelopment project in a
redevelopment project area before June 1, 1988 completes the
contracts prior to June 30, 2007, then so long as the
redevelopment project is not completed or is not terminated,
the Net State Sales Tax Increment shall be calculated,
beginning on the date on which the bonds are retired or the
contracts are completed, as follows: By multiplying the Net
State Sales Tax Increment by 60% in the State Fiscal Year 2002;
50% in the State Fiscal Year 2003; 40% in the State Fiscal Year
2004; 30% in the State Fiscal Year 2005; 20% in the State
Fiscal Year 2006; and 10% in the State Fiscal Year 2007. No
payment shall be made for State Fiscal Year 2008 and
thereafter. Refunding of any bonds issued prior to July 29,
1991, shall not alter the Net State Sales Tax Increment.
(j) "State Utility Tax Increment Amount" means an amount
equal to the aggregate increase in State electric and gas tax
charges imposed on owners and tenants, other than residential
customers, of properties located within the redevelopment
project area under Section 9-222 of the Public Utilities Act,
over and above the aggregate of such charges as certified by
the Department of Revenue and paid by owners and tenants, other

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than residential customers, of properties within the
redevelopment project area during the base year, which shall be
the calendar year immediately prior to the year of the adoption
of the ordinance authorizing tax increment allocation
financing.
(k) "Net State Utility Tax Increment" means the sum of the
following: (a) 80% of the first $100,000 of State Utility Tax
Increment annually generated by a redevelopment project area;
(b) 60% of the amount in excess of $100,000 but not exceeding
$500,000 of the State Utility Tax Increment annually generated
by a redevelopment project area; and (c) 40% of all amounts in
excess of $500,000 of State Utility Tax Increment annually
generated by a redevelopment project area. For the State Fiscal
Year 1999, and every year thereafter until the year 2007, for
any municipality that has not entered into a contract or has
not issued bonds prior to June 1, 1988 to finance redevelopment
project costs within a redevelopment project area, the Net
State Utility Tax Increment shall be calculated as follows: By
multiplying the Net State Utility Tax Increment by 90% in the
State Fiscal Year 1999; 80% in the State Fiscal Year 2000; 70%
in the State Fiscal Year 2001; 60% in the State Fiscal Year
2002; 50% in the State Fiscal Year 2003; 40% in the State
Fiscal Year 2004; 30% in the State Fiscal Year 2005; 20% in the
State Fiscal Year 2006; and 10% in the State Fiscal Year 2007.
No payment shall be made for the State Fiscal Year 2008 and
thereafter.

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Municipalities that issue bonds in connection with the
redevelopment project during the period from June 1, 1988 until
3 years after the effective date of this Amendatory Act of 1988
shall receive the Net State Utility Tax Increment, subject to
appropriation, for 15 State Fiscal Years after the issuance of
such bonds. For the 16th through the 20th State Fiscal Years
after issuance of the bonds, the Net State Utility Tax
Increment shall be calculated as follows: By multiplying the
Net State Utility Tax Increment by 90% in year 16; 80% in year
17; 70% in year 18; 60% in year 19; and 50% in year 20.
Refunding of any bonds issued prior to June 1, 1988, shall not
alter the revised Net State Utility Tax Increment payments set
forth above.
(l) "Obligations" mean bonds, loans, debentures, notes,
special certificates or other evidence of indebtedness issued
by the municipality to carry out a redevelopment project or to
refund outstanding obligations.
(m) "Payment in lieu of taxes" means those estimated tax
revenues from real property in a redevelopment project area
derived from real property that has been acquired by a
municipality which according to the redevelopment project or
plan is to be used for a private use which taxing districts
would have received had a municipality not acquired the real
property and adopted tax increment allocation financing and
which would result from levies made after the time of the
adoption of tax increment allocation financing to the time the

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current equalized value of real property in the redevelopment
project area exceeds the total initial equalized value of real
property in said area.
(n) "Redevelopment plan" means the comprehensive program
of the municipality for development or redevelopment intended
by the payment of redevelopment project costs to reduce or
eliminate those conditions the existence of which qualified the
redevelopment project area as a "blighted area" or
"conservation area" or combination thereof or "industrial park
conservation area," and thereby to enhance the tax bases of the
taxing districts which extend into the redevelopment project
area. On and after November 1, 1999 (the effective date of
Public Act 91-478), no redevelopment plan may be approved or
amended that includes the development of vacant land (i) with a
golf course and related clubhouse and other facilities or (ii)
designated by federal, State, county, or municipal government
as public land for outdoor recreational activities or for
nature preserves and used for that purpose within 5 years prior
to the adoption of the redevelopment plan. For the purpose of
this subsection, "recreational activities" is limited to mean
camping and hunting. Each redevelopment plan shall set forth in
writing the program to be undertaken to accomplish the
objectives and shall include but not be limited to:
(A) an itemized list of estimated redevelopment
project costs;
(B) evidence indicating that the redevelopment project

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area on the whole has not been subject to growth and
development through investment by private enterprise;
(C) an assessment of any financial impact of the
redevelopment project area on or any increased demand for
services from any taxing district affected by the plan and
any program to address such financial impact or increased
demand;
(D) the sources of funds to pay costs;
(E) the nature and term of the obligations to be
issued;
(F) the most recent equalized assessed valuation of the
redevelopment project area;
(G) an estimate as to the equalized assessed valuation
after redevelopment and the general land uses to apply in
the redevelopment project area;
(H) a commitment to fair employment practices and an
affirmative action plan;
(I) if it concerns an industrial park conservation
area, the plan shall also include a general description of
any proposed developer, user and tenant of any property, a
description of the type, structure and general character of
the facilities to be developed, a description of the type,
class and number of new employees to be employed in the
operation of the facilities to be developed; and
(J) if property is to be annexed to the municipality,
the plan shall include the terms of the annexation

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agreement.
The provisions of items (B) and (C) of this subsection (n)
shall not apply to a municipality that before March 14, 1994
(the effective date of Public Act 88-537) had fixed, either by
its corporate authorities or by a commission designated under
subsection (k) of Section 11-74.4-4, a time and place for a
public hearing as required by subsection (a) of Section
11-74.4-5. No redevelopment plan shall be adopted unless a
municipality complies with all of the following requirements:
(1) The municipality finds that the redevelopment
project area on the whole has not been subject to growth
and development through investment by private enterprise
and would not reasonably be anticipated to be developed
without the adoption of the redevelopment plan.
(2) The municipality finds that the redevelopment plan
and project conform to the comprehensive plan for the
development of the municipality as a whole, or, for
municipalities with a population of 100,000 or more,
regardless of when the redevelopment plan and project was
adopted, the redevelopment plan and project either: (i)
conforms to the strategic economic development or
redevelopment plan issued by the designated planning
authority of the municipality, or (ii) includes land uses
that have been approved by the planning commission of the
municipality.
(3) The redevelopment plan establishes the estimated

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dates of completion of the redevelopment project and
retirement of obligations issued to finance redevelopment
project costs. Those dates may not be later than the dates
set forth under Section 11-74.4-3.5.
A municipality may by municipal ordinance amend an
existing redevelopment plan to conform to this paragraph
(3) as amended by Public Act 91-478, which municipal
ordinance may be adopted without further hearing or notice
and without complying with the procedures provided in this
Act pertaining to an amendment to or the initial approval
of a redevelopment plan and project and designation of a
redevelopment project area.
(3.5) The municipality finds, in the case of an
industrial park conservation area, also that the
municipality is a labor surplus municipality and that the
implementation of the redevelopment plan will reduce
unemployment, create new jobs and by the provision of new
facilities enhance the tax base of the taxing districts
that extend into the redevelopment project area.
(4) If any incremental revenues are being utilized
under Section 8(a)(1) or 8(a)(2) of this Act in
redevelopment project areas approved by ordinance after
January 1, 1986, the municipality finds: (a) that the
redevelopment project area would not reasonably be
developed without the use of such incremental revenues, and
(b) that such incremental revenues will be exclusively

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utilized for the development of the redevelopment project
area.
(5) If the redevelopment plan will not result in
displacement of residents from 10 or more inhabited
residential units, and the municipality certifies in the
plan that such displacement will not result from the plan,
a housing impact study need not be performed. If, however,
the redevelopment plan would result in the displacement of
residents from 10 or more inhabited residential units, or
if the redevelopment project area contains 75 or more
inhabited residential units and no certification is made,
then the municipality shall prepare, as part of the
separate feasibility report required by subsection (a) of
Section 11-74.4-5, a housing impact study.
Part I of the housing impact study shall include (i)
data as to whether the residential units are single family
or multi-family units, (ii) the number and type of rooms
within the units, if that information is available, (iii)
whether the units are inhabited or uninhabited, as
determined not less than 45 days before the date that the
ordinance or resolution required by subsection (a) of
Section 11-74.4-5 is passed, and (iv) data as to the racial
and ethnic composition of the residents in the inhabited
residential units. The data requirement as to the racial
and ethnic composition of the residents in the inhabited
residential units shall be deemed to be fully satisfied by

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data from the most recent federal census.
Part II of the housing impact study shall identify the
inhabited residential units in the proposed redevelopment
project area that are to be or may be removed. If inhabited
residential units are to be removed, then the housing
impact study shall identify (i) the number and location of
those units that will or may be removed, (ii) the
municipality's plans for relocation assistance for those
residents in the proposed redevelopment project area whose
residences are to be removed, (iii) the availability of
replacement housing for those residents whose residences
are to be removed, and shall identify the type, location,
and cost of the housing, and (iv) the type and extent of
relocation assistance to be provided.
(6) On and after November 1, 1999, the housing impact
study required by paragraph (5) shall be incorporated in
the redevelopment plan for the redevelopment project area.
(7) On and after November 1, 1999, no redevelopment
plan shall be adopted, nor an existing plan amended, nor
shall residential housing that is occupied by households of
low-income and very low-income persons in currently
existing redevelopment project areas be removed after
November 1, 1999 unless the redevelopment plan provides,
with respect to inhabited housing units that are to be
removed for households of low-income and very low-income
persons, affordable housing and relocation assistance not

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less than that which would be provided under the federal
Uniform Relocation Assistance and Real Property
Acquisition Policies Act of 1970 and the regulations under
that Act, including the eligibility criteria. Affordable
housing may be either existing or newly constructed
housing. For purposes of this paragraph (7), "low-income
households", "very low-income households", and "affordable
housing" have the meanings set forth in the Illinois
Affordable Housing Act. The municipality shall make a good
faith effort to ensure that this affordable housing is
located in or near the redevelopment project area within
the municipality.
(8) On and after November 1, 1999, if, after the
adoption of the redevelopment plan for the redevelopment
project area, any municipality desires to amend its
redevelopment plan to remove more inhabited residential
units than specified in its original redevelopment plan,
that change shall be made in accordance with the procedures
in subsection (c) of Section 11-74.4-5.
(9) For redevelopment project areas designated prior
to November 1, 1999, the redevelopment plan may be amended
without further joint review board meeting or hearing,
provided that the municipality shall give notice of any
such changes by mail to each affected taxing district and
registrant on the interested party registry, to authorize
the municipality to expend tax increment revenues for

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redevelopment project costs defined by paragraphs (5) and
(7.5), subparagraphs (E) and (F) of paragraph (11), and
paragraph (11.5) of subsection (q) of Section 11-74.4-3, so
long as the changes do not increase the total estimated
redevelopment project costs set out in the redevelopment
plan by more than 5% after adjustment for inflation from
the date the plan was adopted.
(o) "Redevelopment project" means any public and private
development project in furtherance of the objectives of a
redevelopment plan. On and after November 1, 1999 (the
effective date of Public Act 91-478), no redevelopment plan may
be approved or amended that includes the development of vacant
land (i) with a golf course and related clubhouse and other
facilities or (ii) designated by federal, State, county, or
municipal government as public land for outdoor recreational
activities or for nature preserves and used for that purpose
within 5 years prior to the adoption of the redevelopment plan.
For the purpose of this subsection, "recreational activities"
is limited to mean camping and hunting.
(p) "Redevelopment project area" means an area designated
by the municipality, which is not less in the aggregate than 1
1/2 acres and in respect to which the municipality has made a
finding that there exist conditions which cause the area to be
classified as an industrial park conservation area or a
blighted area or a conservation area, or a combination of both
blighted areas and conservation areas.

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(p-1) Notwithstanding any provision of this Act to the
contrary, on and after August 25, 2009 (the effective date of
Public Act 96-680), a redevelopment project area may include
areas within a one-half mile radius of an existing or proposed
Regional Transportation Authority Suburban Transit Access
Route (STAR Line) station without a finding that the area is
classified as an industrial park conservation area, a blighted
area, a conservation area, or a combination thereof, but only
if the municipality receives unanimous consent from the joint
review board created to review the proposed redevelopment
project area.
(q) "Redevelopment project costs", except for
redevelopment project areas created pursuant to subsection
(p-1), means and includes the sum total of all reasonable or
necessary costs incurred or estimated to be incurred, and any
such costs incidental to a redevelopment plan and a
redevelopment project. Such costs include, without limitation,
the following:
(1) Costs of studies, surveys, development of plans,
and specifications, implementation and administration of
the redevelopment plan including but not limited to staff
and professional service costs for architectural,
engineering, legal, financial, planning or other services,
provided however that no charges for professional services
may be based on a percentage of the tax increment
collected; except that on and after November 1, 1999 (the

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effective date of Public Act 91-478), no contracts for
professional services, excluding architectural and
engineering services, may be entered into if the terms of
the contract extend beyond a period of 3 years. In
addition, "redevelopment project costs" shall not include
lobbying expenses. After consultation with the
municipality, each tax increment consultant or advisor to a
municipality that plans to designate or has designated a
redevelopment project area shall inform the municipality
in writing of any contracts that the consultant or advisor
has entered into with entities or individuals that have
received, or are receiving, payments financed by tax
increment revenues produced by the redevelopment project
area with respect to which the consultant or advisor has
performed, or will be performing, service for the
municipality. This requirement shall be satisfied by the
consultant or advisor before the commencement of services
for the municipality and thereafter whenever any other
contracts with those individuals or entities are executed
by the consultant or advisor;
(1.5) After July 1, 1999, annual administrative costs
shall not include general overhead or administrative costs
of the municipality that would still have been incurred by
the municipality if the municipality had not designated a
redevelopment project area or approved a redevelopment
plan;

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(1.6) The cost of marketing sites within the
redevelopment project area to prospective businesses,
developers, and investors;
(2) Property assembly costs, including but not limited
to acquisition of land and other property, real or
personal, or rights or interests therein, demolition of
buildings, site preparation, site improvements that serve
as an engineered barrier addressing ground level or below
ground environmental contamination, including, but not
limited to parking lots and other concrete or asphalt
barriers, and the clearing and grading of land;
(3) Costs of rehabilitation, reconstruction or repair
or remodeling of existing public or private buildings,
fixtures, and leasehold improvements; and the cost of
replacing an existing public building if pursuant to the
implementation of a redevelopment project the existing
public building is to be demolished to use the site for
private investment or devoted to a different use requiring
private investment; including any direct or indirect costs
relating to Green Globes or LEED certified construction
elements or construction elements with an equivalent
certification;
(4) Costs of the construction of public works or
improvements, including any direct or indirect costs
relating to Green Globes or LEED certified construction
elements or construction elements with an equivalent

SB0277 Engrossed - 35 - LRB099 03029 SXM 23037 b
certification, except that on and after November 1, 1999,
redevelopment project costs shall not include the cost of
constructing a new municipal public building principally
used to provide offices, storage space, or conference
facilities or vehicle storage, maintenance, or repair for
administrative, public safety, or public works personnel
and that is not intended to replace an existing public
building as provided under paragraph (3) of subsection (q)
of Section 11-74.4-3 unless either (i) the construction of
the new municipal building implements a redevelopment
project that was included in a redevelopment plan that was
adopted by the municipality prior to November 1, 1999 or
(ii) the municipality makes a reasonable determination in
the redevelopment plan, supported by information that
provides the basis for that determination, that the new
municipal building is required to meet an increase in the
need for public safety purposes anticipated to result from
the implementation of the redevelopment plan;
(5) Costs of job training and retraining projects,
including the cost of "welfare to work" programs
implemented by businesses located within the redevelopment
project area;
(6) Financing costs, including but not limited to all
necessary and incidental expenses related to the issuance
of obligations and which may include payment of interest on
any obligations issued hereunder including interest

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accruing during the estimated period of construction of any
redevelopment project for which such obligations are
issued and for not exceeding 36 months thereafter and
including reasonable reserves related thereto;
(7) To the extent the municipality by written agreement
accepts and approves the same, all or a portion of a taxing
district's capital costs resulting from the redevelopment
project necessarily incurred or to be incurred within a
taxing district in furtherance of the objectives of the
redevelopment plan and project.
(7.5) For redevelopment project areas designated (or
redevelopment project areas amended to add or increase the
number of tax-increment-financing assisted housing units)
on or after November 1, 1999, an elementary, secondary, or
unit school district's increased costs attributable to
assisted housing units located within the redevelopment
project area for which the developer or redeveloper
receives financial assistance through an agreement with
the municipality or because the municipality incurs the
cost of necessary infrastructure improvements within the
boundaries of the assisted housing sites necessary for the
completion of that housing as authorized by this Act, and
which costs shall be paid by the municipality from the
Special Tax Allocation Fund when the tax increment revenue
is received as a result of the assisted housing units and
shall be calculated annually as follows:

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(A) for foundation districts, excluding any school
district in a municipality with a population in excess
of 1,000,000, by multiplying the district's increase
in attendance resulting from the net increase in new
students enrolled in that school district who reside in
housing units within the redevelopment project area
that have received financial assistance through an
agreement with the municipality or because the
municipality incurs the cost of necessary
infrastructure improvements within the boundaries of
the housing sites necessary for the completion of that
housing as authorized by this Act since the designation
of the redevelopment project area by the most recently
available per capita tuition cost as defined in Section
10-20.12a of the School Code less any increase in
general State aid as defined in Section 18-8.05 of the
School Code attributable to these added new students
subject to the following annual limitations:
(i) for unit school districts with a district
average 1995-96 Per Capita Tuition Charge of less
than $5,900, no more than 25% of the total amount
of property tax increment revenue produced by
those housing units that have received tax
increment finance assistance under this Act;
(ii) for elementary school districts with a
district average 1995-96 Per Capita Tuition Charge

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of less than $5,900, no more than 17% of the total
amount of property tax increment revenue produced
by those housing units that have received tax
increment finance assistance under this Act; and
(iii) for secondary school districts with a
district average 1995-96 Per Capita Tuition Charge
of less than $5,900, no more than 8% of the total
amount of property tax increment revenue produced
by those housing units that have received tax
increment finance assistance under this Act.
(B) For alternate method districts, flat grant
districts, and foundation districts with a district
average 1995-96 Per Capita Tuition Charge equal to or
more than $5,900, excluding any school district with a
population in excess of 1,000,000, by multiplying the
district's increase in attendance resulting from the
net increase in new students enrolled in that school
district who reside in housing units within the
redevelopment project area that have received
financial assistance through an agreement with the
municipality or because the municipality incurs the
cost of necessary infrastructure improvements within
the boundaries of the housing sites necessary for the
completion of that housing as authorized by this Act
since the designation of the redevelopment project
area by the most recently available per capita tuition

SB0277 Engrossed - 39 - LRB099 03029 SXM 23037 b
cost as defined in Section 10-20.12a of the School Code
less any increase in general state aid as defined in
Section 18-8.05 of the School Code attributable to
these added new students subject to the following
annual limitations:
(i) for unit school districts, no more than 40%
of the total amount of property tax increment
revenue produced by those housing units that have
received tax increment finance assistance under
this Act;
(ii) for elementary school districts, no more
than 27% of the total amount of property tax
increment revenue produced by those housing units
that have received tax increment finance
assistance under this Act; and
(iii) for secondary school districts, no more
than 13% of the total amount of property tax
increment revenue produced by those housing units
that have received tax increment finance
assistance under this Act.
(C) For any school district in a municipality with
a population in excess of 1,000,000, the following
restrictions shall apply to the reimbursement of
increased costs under this paragraph (7.5):
(i) no increased costs shall be reimbursed
unless the school district certifies that each of

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the schools affected by the assisted housing
project is at or over its student capacity;
(ii) the amount reimbursable shall be reduced
by the value of any land donated to the school
district by the municipality or developer, and by
the value of any physical improvements made to the
schools by the municipality or developer; and
(iii) the amount reimbursed may not affect
amounts otherwise obligated by the terms of any
bonds, notes, or other funding instruments, or the
terms of any redevelopment agreement.
Any school district seeking payment under this
paragraph (7.5) shall, after July 1 and before
September 30 of each year, provide the municipality
with reasonable evidence to support its claim for
reimbursement before the municipality shall be
required to approve or make the payment to the school
district. If the school district fails to provide the
information during this period in any year, it shall
forfeit any claim to reimbursement for that year.
School districts may adopt a resolution waiving the
right to all or a portion of the reimbursement
otherwise required by this paragraph (7.5). By
acceptance of this reimbursement the school district
waives the right to directly or indirectly set aside,
modify, or contest in any manner the establishment of

SB0277 Engrossed - 41 - LRB099 03029 SXM 23037 b
the redevelopment project area or projects;
(7.7) For redevelopment project areas designated (or
redevelopment project areas amended to add or increase the
number of tax-increment-financing assisted housing units)
on or after January 1, 2005 (the effective date of Public
Act 93-961), a public library district's increased costs
attributable to assisted housing units located within the
redevelopment project area for which the developer or
redeveloper receives financial assistance through an
agreement with the municipality or because the
municipality incurs the cost of necessary infrastructure
improvements within the boundaries of the assisted housing
sites necessary for the completion of that housing as
authorized by this Act shall be paid to the library
district by the municipality from the Special Tax
Allocation Fund when the tax increment revenue is received
as a result of the assisted housing units. This paragraph
(7.7) applies only if (i) the library district is located
in a county that is subject to the Property Tax Extension
Limitation Law or (ii) the library district is not located
in a county that is subject to the Property Tax Extension
Limitation Law but the district is prohibited by any other
law from increasing its tax levy rate without a prior voter
referendum.
The amount paid to a library district under this
paragraph (7.7) shall be calculated by multiplying (i) the

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net increase in the number of persons eligible to obtain a
library card in that district who reside in housing units
within the redevelopment project area that have received
financial assistance through an agreement with the
municipality or because the municipality incurs the cost of
necessary infrastructure improvements within the
boundaries of the housing sites necessary for the
completion of that housing as authorized by this Act since
the designation of the redevelopment project area by (ii)
the per-patron cost of providing library services so long
as it does not exceed $120. The per-patron cost shall be
the Total Operating Expenditures Per Capita for the library
in the previous fiscal year. The municipality may deduct
from the amount that it must pay to a library district
under this paragraph any amount that it has voluntarily
paid to the library district from the tax increment
revenue. The amount paid to a library district under this
paragraph (7.7) shall be no more than 2% of the amount
produced by the assisted housing units and deposited into
the Special Tax Allocation Fund.
A library district is not eligible for any payment
under this paragraph (7.7) unless the library district has
experienced an increase in the number of patrons from the
municipality that created the tax-increment-financing
district since the designation of the redevelopment
project area.

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Any library district seeking payment under this
paragraph (7.7) shall, after July 1 and before September 30
of each year, provide the municipality with convincing
evidence to support its claim for reimbursement before the
municipality shall be required to approve or make the
payment to the library district. If the library district
fails to provide the information during this period in any
year, it shall forfeit any claim to reimbursement for that
year. Library districts may adopt a resolution waiving the
right to all or a portion of the reimbursement otherwise
required by this paragraph (7.7). By acceptance of such
reimbursement, the library district shall forfeit any
right to directly or indirectly set aside, modify, or
contest in any manner whatsoever the establishment of the
redevelopment project area or projects;
(8) Relocation costs to the extent that a municipality
determines that relocation costs shall be paid or is
required to make payment of relocation costs by federal or
State law or in order to satisfy subparagraph (7) of
subsection (n);
(9) Payment in lieu of taxes;
(10) Costs of job training, retraining, advanced
vocational education or career education, including but
not limited to courses in occupational, semi-technical or
technical fields leading directly to employment, incurred
by one or more taxing districts, provided that such costs

SB0277 Engrossed - 44 - LRB099 03029 SXM 23037 b
(i) are related to the establishment and maintenance of
additional job training, advanced vocational education or
career education programs for persons employed or to be
employed by employers located in a redevelopment project
area; and (ii) when incurred by a taxing district or taxing
districts other than the municipality, are set forth in a
written agreement by or among the municipality and the
taxing district or taxing districts, which agreement
describes the program to be undertaken, including but not
limited to the number of employees to be trained, a
description of the training and services to be provided,
the number and type of positions available or to be
available, itemized costs of the program and sources of
funds to pay for the same, and the term of the agreement.
Such costs include, specifically, the payment by community
college districts of costs pursuant to Sections 3-37, 3-38,
3-40 and 3-40.1 of the Public Community College Act and by
school districts of costs pursuant to Sections 10-22.20a
and 10-23.3a of The School Code;
(11) Interest cost incurred by a redeveloper related to
the construction, renovation or rehabilitation of a
redevelopment project provided that:
(A) such costs are to be paid directly from the
special tax allocation fund established pursuant to
this Act;
(B) such payments in any one year may not exceed

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30% of the annual interest costs incurred by the
redeveloper with regard to the redevelopment project
during that year;
(C) if there are not sufficient funds available in
the special tax allocation fund to make the payment
pursuant to this paragraph (11) then the amounts so due
shall accrue and be payable when sufficient funds are
available in the special tax allocation fund;
(D) the total of such interest payments paid
pursuant to this Act may not exceed 30% of the total
(i) cost paid or incurred by the redeveloper for the
redevelopment project plus (ii) redevelopment project
costs excluding any property assembly costs and any
relocation costs incurred by a municipality pursuant
to this Act; and
(E) the cost limits set forth in subparagraphs (B)
and (D) of paragraph (11) shall be modified for the
financing of rehabilitated or new housing units for
low-income households and very low-income households,
as defined in Section 3 of the Illinois Affordable
Housing Act. The percentage of 75% shall be substituted
for 30% in subparagraphs (B) and (D) of paragraph (11).
(F) Instead of the eligible costs provided by
subparagraphs (B) and (D) of paragraph (11), as
modified by this subparagraph, and notwithstanding any
other provisions of this Act to the contrary, the

SB0277 Engrossed - 46 - LRB099 03029 SXM 23037 b
municipality may pay from tax increment revenues up to
50% of the cost of construction of new housing units to
be occupied by low-income households and very
low-income households as defined in Section 3 of the
Illinois Affordable Housing Act. The cost of
construction of those units may be derived from the
proceeds of bonds issued by the municipality under this
Act or other constitutional or statutory authority or
from other sources of municipal revenue that may be
reimbursed from tax increment revenues or the proceeds
of bonds issued to finance the construction of that
housing.
The eligible costs provided under this
subparagraph (F) of paragraph (11) shall be an eligible
cost for the construction, renovation, and
rehabilitation of all low and very low-income housing
units, as defined in Section 3 of the Illinois
Affordable Housing Act, within the redevelopment
project area. If the low and very low-income units are
part of a residential redevelopment project that
includes units not affordable to low and very
low-income households, only the low and very
low-income units shall be eligible for benefits under
subparagraph (F) of paragraph (11). The standards for
maintaining the occupancy by low-income households and
very low-income households, as defined in Section 3 of

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the Illinois Affordable Housing Act, of those units
constructed with eligible costs made available under
the provisions of this subparagraph (F) of paragraph
(11) shall be established by guidelines adopted by the
municipality. The responsibility for annually
documenting the initial occupancy of the units by
low-income households and very low-income households,
as defined in Section 3 of the Illinois Affordable
Housing Act, shall be that of the then current owner of
the property. For ownership units, the guidelines will
provide, at a minimum, for a reasonable recapture of
funds, or other appropriate methods designed to
preserve the original affordability of the ownership
units. For rental units, the guidelines will provide,
at a minimum, for the affordability of rent to low and
very low-income households. As units become available,
they shall be rented to income-eligible tenants. The
municipality may modify these guidelines from time to
time; the guidelines, however, shall be in effect for
as long as tax increment revenue is being used to pay
for costs associated with the units or for the
retirement of bonds issued to finance the units or for
the life of the redevelopment project area, whichever
is later.
(11.5) If the redevelopment project area is located
within a municipality with a population of more than

SB0277 Engrossed - 48 - LRB099 03029 SXM 23037 b
100,000, the cost of day care services for children of
employees from low-income families working for businesses
located within the redevelopment project area and all or a
portion of the cost of operation of day care centers
established by redevelopment project area businesses to
serve employees from low-income families working in
businesses located in the redevelopment project area. For
the purposes of this paragraph, "low-income families"
means families whose annual income does not exceed 80% of
the municipal, county, or regional median income, adjusted
for family size, as the annual income and municipal,
county, or regional median income are determined from time
to time by the United States Department of Housing and
Urban Development.
(12) Unless explicitly stated herein the cost of
construction of new privately-owned buildings shall not be
an eligible redevelopment project cost.
(13) After November 1, 1999 (the effective date of
Public Act 91-478), none of the redevelopment project costs
enumerated in this subsection shall be eligible
redevelopment project costs if those costs would provide
direct financial support to a retail entity initiating
operations in the redevelopment project area while
terminating operations at another Illinois location within
10 miles of the redevelopment project area but outside the
boundaries of the redevelopment project area municipality.

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For purposes of this paragraph, termination means a closing
of a retail operation that is directly related to the
opening of the same operation or like retail entity owned
or operated by more than 50% of the original ownership in a
redevelopment project area, but it does not mean closing an
operation for reasons beyond the control of the retail
entity, as documented by the retail entity, subject to a
reasonable finding by the municipality that the current
location contained inadequate space, had become
economically obsolete, or was no longer a viable location
for the retailer or serviceman.
(14) No cost shall be a redevelopment project cost in a
redevelopment project area if used to demolish, remove, or
substantially modify a historic resource, after August 26,
2008 (the effective date of Public Act 95-934), unless no
prudent and feasible alternative exists. "Historic
resource" for the purpose of this item (14) means (i) a
place or structure that is included or eligible for
inclusion on the National Register of Historic Places or
(ii) a contributing structure in a district on the National
Register of Historic Places. This item (14) does not apply
to a place or structure for which demolition, removal, or
modification is subject to review by the preservation
agency of a Certified Local Government designated as such
by the National Park Service of the United States
Department of the Interior.

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If a special service area has been established pursuant to
the Special Service Area Tax Act or Special Service Area Tax
Law, then any tax increment revenues derived from the tax
imposed pursuant to the Special Service Area Tax Act or Special
Service Area Tax Law may be used within the redevelopment
project area for the purposes permitted by that Act or Law as
well as the purposes permitted by this Act.
(q-1) For redevelopment project areas created pursuant to
subsection (p-1), redevelopment project costs are limited to
those costs in paragraph (q) that are related to the existing
or proposed Regional Transportation Authority Suburban Transit
Access Route (STAR Line) station.
(r) "State Sales Tax Boundary" means the redevelopment
project area or the amended redevelopment project area
boundaries which are determined pursuant to subsection (9) of
Section 11-74.4-8a of this Act. The Department of Revenue shall
certify pursuant to subsection (9) of Section 11-74.4-8a the
appropriate boundaries eligible for the determination of State
Sales Tax Increment.
(s) "State Sales Tax Increment" means an amount equal to
the increase in the aggregate amount of taxes paid by retailers
and servicemen, other than retailers and servicemen subject to
the Public Utilities Act, on transactions at places of business
located within a State Sales Tax Boundary pursuant to the
Retailers' Occupation Tax Act, the Use Tax Act, the Service Use
Tax Act, and the Service Occupation Tax Act, except such

SB0277 Engrossed - 51 - LRB099 03029 SXM 23037 b
portion of such increase that is paid into the State and Local
Sales Tax Reform Fund, the Local Government Distributive Fund,
the Local Government Tax Fund and the County and Mass Transit
District Fund, for as long as State participation exists, over
and above the Initial Sales Tax Amounts, Adjusted Initial Sales
Tax Amounts or the Revised Initial Sales Tax Amounts for such
taxes as certified by the Department of Revenue and paid under
those Acts by retailers and servicemen on transactions at
places of business located within the State Sales Tax Boundary
during the base year which shall be the calendar year
immediately prior to the year in which the municipality adopted
tax increment allocation financing, less 3.0% of such amounts
generated under the Retailers' Occupation Tax Act, Use Tax Act
and Service Use Tax Act and the Service Occupation Tax Act,
which sum shall be appropriated to the Department of Revenue to
cover its costs of administering and enforcing this Section.
For purposes of computing the aggregate amount of such taxes
for base years occurring prior to 1985, the Department of
Revenue shall compute the Initial Sales Tax Amount for such
taxes and deduct therefrom an amount equal to 4% of the
aggregate amount of taxes per year for each year the base year
is prior to 1985, but not to exceed a total deduction of 12%.
The amount so determined shall be known as the "Adjusted
Initial Sales Tax Amount". For purposes of determining the
State Sales Tax Increment the Department of Revenue shall for
each period subtract from the tax amounts received from

SB0277 Engrossed - 52 - LRB099 03029 SXM 23037 b
retailers and servicemen on transactions located in the State
Sales Tax Boundary, the certified Initial Sales Tax Amounts,
Adjusted Initial Sales Tax Amounts or Revised Initial Sales Tax
Amounts for the Retailers' Occupation Tax Act, the Use Tax Act,
the Service Use Tax Act and the Service Occupation Tax Act. For
the State Fiscal Year 1989 this calculation shall be made by
utilizing the calendar year 1987 to determine the tax amounts
received. For the State Fiscal Year 1990, this calculation
shall be made by utilizing the period from January 1, 1988,
until September 30, 1988, to determine the tax amounts received
from retailers and servicemen, which shall have deducted
therefrom nine-twelfths of the certified Initial Sales Tax
Amounts, Adjusted Initial Sales Tax Amounts or the Revised
Initial Sales Tax Amounts as appropriate. For the State Fiscal
Year 1991, this calculation shall be made by utilizing the
period from October 1, 1988, until June 30, 1989, to determine
the tax amounts received from retailers and servicemen, which
shall have deducted therefrom nine-twelfths of the certified
Initial State Sales Tax Amounts, Adjusted Initial Sales Tax
Amounts or the Revised Initial Sales Tax Amounts as
appropriate. For every State Fiscal Year thereafter, the
applicable period shall be the 12 months beginning July 1 and
ending on June 30, to determine the tax amounts received which
shall have deducted therefrom the certified Initial Sales Tax
Amounts, Adjusted Initial Sales Tax Amounts or the Revised
Initial Sales Tax Amounts. Municipalities intending to receive

SB0277 Engrossed - 53 - LRB099 03029 SXM 23037 b
a distribution of State Sales Tax Increment must report a list
of retailers to the Department of Revenue by October 31, 1988
and by July 31, of each year thereafter.
(t) "Taxing districts" means counties, townships, cities
and incorporated towns and villages, school, road, park,
sanitary, mosquito abatement, forest preserve, public health,
fire protection, river conservancy, tuberculosis sanitarium
and any other municipal corporations or districts with the
power to levy taxes.
(u) "Taxing districts' capital costs" means those costs of
taxing districts for capital improvements that are found by the
municipal corporate authorities to be necessary and directly
result from the redevelopment project.
(v) As used in subsection (a) of Section 11-74.4-3 of this
Act, "vacant land" means any parcel or combination of parcels
of real property without industrial, commercial, and
residential buildings which has not been used for commercial
agricultural purposes within 5 years prior to the designation
of the redevelopment project area, unless the parcel is
included in an industrial park conservation area or the parcel
has been subdivided; provided that if the parcel was part of a
larger tract that has been divided into 3 or more smaller
tracts that were accepted for recording during the period from
1950 to 1990, then the parcel shall be deemed to have been
subdivided, and all proceedings and actions of the municipality
taken in that connection with respect to any previously

SB0277 Engrossed - 54 - LRB099 03029 SXM 23037 b
approved or designated redevelopment project area or amended
redevelopment project area are hereby validated and hereby
declared to be legally sufficient for all purposes of this Act.
For purposes of this Section and only for land subject to the
subdivision requirements of the Plat Act, land is subdivided
when the original plat of the proposed Redevelopment Project
Area or relevant portion thereof has been properly certified,
acknowledged, approved, and recorded or filed in accordance
with the Plat Act and a preliminary plat, if any, for any
subsequent phases of the proposed Redevelopment Project Area or
relevant portion thereof has been properly approved and filed
in accordance with the applicable ordinance of the
municipality.
(w) "Annual Total Increment" means the sum of each
municipality's annual Net Sales Tax Increment and each
municipality's annual Net Utility Tax Increment. The ratio of
the Annual Total Increment of each municipality to the Annual
Total Increment for all municipalities, as most recently
calculated by the Department, shall determine the proportional
shares of the Illinois Tax Increment Fund to be distributed to
each municipality.
(x) "LEED certified" means any certification level of
construction elements by a qualified Leadership in Energy and
Environmental Design Accredited Professional as determined by
the U.S. Green Building Council.
(y) "Green Globes certified" means any certification level

SB0277 Engrossed - 55 - LRB099 03029 SXM 23037 b
of construction elements by a qualified Green Globes
Professional as determined by the Green Building Initiative.
(Source: P.A. 96-328, eff. 8-11-09; 96-630, eff. 1-1-10;
96-680, eff. 8-25-09; 96-1000, eff. 7-2-10; 97-101, eff.
1-1-12.)
(65 ILCS 5/11-74.4-3.3 new)
Sec. 11-74.4-3.3. Redevelopment project area within a
transit facility improvement area.
(a) As used in this Section:
"Transit" means any or more of the following transportation
services provided to passengers: bus rapid transit service;
inter-city passenger rail service; commuter rail service; and
urban mass transit rail service, whether elevated,
underground, or running at grade, and whether provided through
rolling stock generally referred to as heavy rail or light
rail.
"Transit facility" means an existing or proposed transit
passenger station, an existing or proposed transit
maintenance, storage or service facility, or an existing or
proposed right of way for use in providing commuter rail or
urban mass transit service.
"Transit facility improvement area" means an area whose
boundaries are no more than one-half mile in any direction from
the location of a mass transit facility; provided that the
length of any existing or proposed right of way included in any

SB0277 Engrossed - 56 - LRB099 03029 SXM 23037 b
transit facility improvement area shall not exceed 6 miles.
"Transit facility improvement area redevelopment project
costs" means those costs described in subsection (q) of Section
11-74.4-3 of this Act that are related to the construction,
reconstruction, rehabilitation, remodeling or repair of any
existing or proposed transit facility, whether publicly or
privately-owned.
(b) Notwithstanding any other provision of law to the
contrary, if the corporate authorities of a municipality
designate an area within the territorial limits of the
municipality as a transit facility improvement area, then that
municipality may establish a redevelopment project area within
that transit facility improvement area for the purpose of
developing new transit facilities, expanding or rehabilitating
existing transit facilities, or both.
(c) As used in this Section, a redevelopment project area
is limited to the Chicago Union Station Master Plan, the
Chicago Transit Authority's Red and Purple Modernization
Program, Chicago Transit Authority's Blue Line Modernization
and Extension, and the Chicago Transit Authority's Red Line
Extension.
(65 ILCS 5/11-74.4-3.5)
Sec. 11-74.4-3.5. Completion dates for redevelopment
projects.
(a) Unless otherwise stated in this Section, the estimated

SB0277 Engrossed - 57 - LRB099 03029 SXM 23037 b
dates of completion of the redevelopment project and retirement
of obligations issued to finance redevelopment project costs
(including refunding bonds under Section 11-74.4-7) may not be
later than December 31 of the year in which the payment to the
municipal treasurer, as provided in subsection (b) of Section
11-74.4-8 of this Act, is to be made with respect to ad valorem
taxes levied in the 23rd calendar year after the year in which
the ordinance approving the redevelopment project area was
adopted if the ordinance was adopted on or after January 15,
1981.
(a-5) The estimated dates of completion of the
redevelopment project and retirement of obligations issued to
finance redevelopment project costs (including refunding bonds
under Section 11-74.4-7) may not be later than December 31 of
the year in which the payment to the municipal treasurer, as
provided in subsection (b) of Section 11-74.4-8 of this
amendatory Act of the 99th General Assembly, is to be made with
respect to ad valorem taxes levied in the 50th calendar year
after the year in which the ordinance approving the
redevelopment project area was adopted if the redevelopment
project area is located within a transit facility improvement
area.
(a-7) A municipality may adopt tax increment financing for
a redevelopment project area located in a transit facility
improvement area that also includes real property located
within an existing redevelopment project area established

SB0277 Engrossed - 58 - LRB099 03029 SXM 23037 b
prior to the effective date of this amendatory Act of 99th
General Assembly. In such case: (i) the provisions of this
Division shall apply with respect to the previously established
redevelopment project area until the municipality adopts, as
required in accordance with applicable provisions of this
Division, an ordinance dissolving the special tax allocation
fund for such redevelopment project area and terminating the
designation of such redevelopment project area as a
redevelopment project area; and (ii) after the effective date
of the ordinance described in (i), the provisions of this
Division shall apply with respect to the subsequently
established redevelopment project area located in a transit
facility improvement area.
(b) The estimated dates of completion of the redevelopment
project and retirement of obligations issued to finance
redevelopment project costs (including refunding bonds under
Section 11-74.4-7) may not be later than December 31 of the
year in which the payment to the municipal treasurer as
provided in subsection (b) of Section 11-74.4-8 of this Act is
to be made with respect to ad valorem taxes levied in the 32nd
calendar year after the year in which the ordinance approving
the redevelopment project area was adopted if the ordinance was
adopted on September 9, 1999 by the Village of Downs.
The estimated dates of completion of the redevelopment
project and retirement of obligations issued to finance
redevelopment project costs (including refunding bonds under

SB0277 Engrossed - 59 - LRB099 03029 SXM 23037 b
Section 11-74.4-7) may not be later than December 31 of the
year in which the payment to the municipal treasurer as
provided in subsection (b) of Section 11-74.4-8 of this Act is
to be made with respect to ad valorem taxes levied in the 33rd
calendar year after the year in which the ordinance approving
the redevelopment project area was adopted if the ordinance was
adopted on May 20, 1985 by the Village of Wheeling.
The estimated dates of completion of the redevelopment
project and retirement of obligations issued to finance
redevelopment project costs (including refunding bonds under
Section 11-74.4-7) may not be later than December 31 of the
year in which the payment to the municipal treasurer as
provided in subsection (b) of Section 11-74.4-8 of this Act is
to be made with respect to ad valorem taxes levied in the 28th
calendar year after the year in which the ordinance approving
the redevelopment project area was adopted if the ordinance was
adopted on October 12, 1989 by the City of Lawrenceville.
(c) The estimated dates of completion of the redevelopment
project and retirement of obligations issued to finance
redevelopment project costs (including refunding bonds under
Section 11-74.4-7) may not be later than December 31 of the
year in which the payment to the municipal treasurer as
provided in subsection (b) of Section 11-74.4-8 of this Act is
to be made with respect to ad valorem taxes levied in the 35th
calendar year after the year in which the ordinance approving
the redevelopment project area was adopted:

SB0277 Engrossed - 60 - LRB099 03029 SXM 23037 b
(1) If if the ordinance was adopted before January 15,
1981. ;
(2) If if the ordinance was adopted in December 1983,
April 1984, July 1985, or December 1989. ;
(3) If if the ordinance was adopted in December 1987
and the redevelopment project is located within one mile of
Midway Airport. ;
(4) If if the ordinance was adopted before January 1,
1987 by a municipality in Mason County. ;
(5) If if the municipality is subject to the Local
Government Financial Planning and Supervision Act or the
Financially Distressed City Law. ;
(6) If if the ordinance was adopted in December 1984 by
the Village of Rosemont. ;
(7) If if the ordinance was adopted on December 31,
1986 by a municipality located in Clinton County for which
at least $250,000 of tax increment bonds were authorized on
June 17, 1997, or if the ordinance was adopted on December
31, 1986 by a municipality with a population in 1990 of
less than 3,600 that is located in a county with a
population in 1990 of less than 34,000 and for which at
least $250,000 of tax increment bonds were authorized on
June 17, 1997. ;
(8) If if the ordinance was adopted on October 5, 1982
by the City of Kankakee, or if the ordinance was adopted on
December 29, 1986 by East St. Louis. ;

SB0277 Engrossed - 61 - LRB099 03029 SXM 23037 b
(9) If if the ordinance was adopted on November 12,
1991 by the Village of Sauget. ;
(10) If if the ordinance was adopted on February 11,
1985 by the City of Rock Island. ;
(11) If if the ordinance was adopted before December
18, 1986 by the City of Moline. ;
(12) If if the ordinance was adopted in September 1988
by Sauk Village. ;
(13) If if the ordinance was adopted in October 1993 by
Sauk Village. ;
(14) If if the ordinance was adopted on December 29,
1986 by the City of Galva. ;
(15) If if the ordinance was adopted in March 1991 by
the City of Centreville. ;
(16) If if the ordinance was adopted on January 23,
1991 by the City of East St. Louis. ;
(17) If if the ordinance was adopted on December 22,
1986 by the City of Aledo. ;
(18) If if the ordinance was adopted on February 5,
1990 by the City of Clinton. ;
(19) If if the ordinance was adopted on September 6,
1994 by the City of Freeport. ;
(20) If if the ordinance was adopted on December 22,
1986 by the City of Tuscola. ;
(21) If if the ordinance was adopted on December 23,
1986 by the City of Sparta. ;

SB0277 Engrossed - 62 - LRB099 03029 SXM 23037 b
(22) If if the ordinance was adopted on December 23,
1986 by the City of Beardstown. ;
(23) If if the ordinance was adopted on April 27, 1981,
October 21, 1985, or December 30, 1986 by the City of
Belleville. ;
(24) If if the ordinance was adopted on December 29,
1986 by the City of Collinsville. ;
(25) If if the ordinance was adopted on September 14,
1994 by the City of Alton. ;
(26) If if the ordinance was adopted on November 11,
1996 by the City of Lexington. ;
(27) If if the ordinance was adopted on November 5,
1984 by the City of LeRoy. ;
(28) If if the ordinance was adopted on April 3, 1991
or June 3, 1992 by the City of Markham. ;
(29) If if the ordinance was adopted on November 11,
1986 by the City of Pekin. ;
(30) If if the ordinance was adopted on December 15,
1981 by the City of Champaign. ;
(31) If if the ordinance was adopted on December 15,
1986 by the City of Urbana. ;
(32) If if the ordinance was adopted on December 15,
1986 by the Village of Heyworth. ;
(33) If if the ordinance was adopted on February 24,
1992 by the Village of Heyworth. ;
(34) If if the ordinance was adopted on March 16, 1995

SB0277 Engrossed - 63 - LRB099 03029 SXM 23037 b
by the Village of Heyworth. ;
(35) If if the ordinance was adopted on December 23,
1986 by the Town of Cicero. ;
(36) If if the ordinance was adopted on December 30,
1986 by the City of Effingham. ;
(37) If if the ordinance was adopted on May 9, 1991 by
the Village of Tilton. ;
(38) If if the ordinance was adopted on October 20,
1986 by the City of Elmhurst. ;
(39) If if the ordinance was adopted on January 19,
1988 by the City of Waukegan. ;
(40) If if the ordinance was adopted on September 21,
1998 by the City of Waukegan. ;
(41) If if the ordinance was adopted on December 31,
1986 by the City of Sullivan. ;
(42) If if the ordinance was adopted on December 23,
1991 by the City of Sullivan. ;
(43) If if the ordinance was adopted on December 31,
1986 by the City of Oglesby. ;
(44) If if the ordinance was adopted on July 28, 1987
by the City of Marion. ;
(45) If if the ordinance was adopted on April 23, 1990
by the City of Marion. ;
(46) If if the ordinance was adopted on August 20, 1985
by the Village of Mount Prospect. ;
(47) If if the ordinance was adopted on February 2,

SB0277 Engrossed - 64 - LRB099 03029 SXM 23037 b
1998 by the Village of Woodhull. ;
(48) If if the ordinance was adopted on April 20, 1993
by the Village of Princeville. ;
(49) If if the ordinance was adopted on July 1, 1986 by
the City of Granite City. ;
(50) If if the ordinance was adopted on February 2,
1989 by the Village of Lombard. ;
(51) If if the ordinance was adopted on December 29,
1986 by the Village of Gardner. ;
(52) If if the ordinance was adopted on July 14, 1999
by the Village of Paw Paw. ;
(53) If if the ordinance was adopted on November 17,
1986 by the Village of Franklin Park. ;
(54) If if the ordinance was adopted on November 20,
1989 by the Village of South Holland. ;
(55) If if the ordinance was adopted on July 14, 1992
by the Village of Riverdale. ;
(56) If if the ordinance was adopted on December 29,
1986 by the City of Galesburg. ;
(57) If if the ordinance was adopted on April 1, 1985
by the City of Galesburg. ;
(58) If if the ordinance was adopted on May 21, 1990 by
the City of West Chicago. ;
(59) If if the ordinance was adopted on December 16,
1986 by the City of Oak Forest. ;
(60) If if the ordinance was adopted in 1999 by the

SB0277 Engrossed - 65 - LRB099 03029 SXM 23037 b
City of Villa Grove. ;
(61) If if the ordinance was adopted on January 13,
1987 by the Village of Mt. Zion. ;
(62) If if the ordinance was adopted on December 30,
1986 by the Village of Manteno. ;
(63) If if the ordinance was adopted on April 3, 1989
by the City of Chicago Heights. ;
(64) If if the ordinance was adopted on January 6, 1999
by the Village of Rosemont. ;
(65) If if the ordinance was adopted on December 19,
2000 by the Village of Stone Park. ;
(66) If if the ordinance was adopted on December 22,
1986 by the City of DeKalb. ;
(67) If if the ordinance was adopted on December 2,
1986 by the City of Aurora. ;
(68) If if the ordinance was adopted on December 31,
1986 by the Village of Milan. ;
(69) If if the ordinance was adopted on September 8,
1994 by the City of West Frankfort. ;
(70) If if the ordinance was adopted on December 23,
1986 by the Village of Libertyville. ;
(71) If if the ordinance was adopted on December 22,
1986 by the Village of Hoffman Estates. ;
(72) If if the ordinance was adopted on September 17,
1986 by the Village of Sherman. ;
(73) If if the ordinance was adopted on December 16,

SB0277 Engrossed - 66 - LRB099 03029 SXM 23037 b
1986 by the City of Macomb. ;
(74) If if the ordinance was adopted on June 11, 2002
by the City of East Peoria to create the West Washington
Street TIF. ;
(75) If if the ordinance was adopted on June 11, 2002
by the City of East Peoria to create the Camp Street TIF. ;
(76) If if the ordinance was adopted on August 7, 2000
by the City of Des Plaines. ;
(77) If if the ordinance was adopted on December 22,
1986 by the City of Washington to create the Washington
Square TIF #2. ;
(78) If if the ordinance was adopted on December 29,
1986 by the City of Morris. ;
(79) If if the ordinance was adopted on July 6, 1998 by
the Village of Steeleville. ;
(80) If if the ordinance was adopted on December 29,
1986 by the City of Pontiac to create TIF I (the Main St
TIF). ;
(81) If if the ordinance was adopted on December 29,
1986 by the City of Pontiac to create TIF II (the
Interstate TIF). ;
(82) If if the ordinance was adopted on November 6,
2002 by the City of Chicago to create the Madden/Wells TIF
District. ;
(83) If if the ordinance was adopted on November 4,
1998 by the City of Chicago to create the Roosevelt/Racine

SB0277 Engrossed - 67 - LRB099 03029 SXM 23037 b
TIF District. ;
(84) If if the ordinance was adopted on June 10, 1998
by the City of Chicago to create the Stony Island
Commercial/Burnside Industrial Corridors TIF District. ;
(85) If if the ordinance was adopted on November 29,
1989 by the City of Chicago to create the Englewood Mall
TIF District. ;
(86) If if the ordinance was adopted on December 27,
1986 by the City of Mendota. ;
(87) If if the ordinance was adopted on December 31,
1986 by the Village of Cahokia. ;
(88) If if the ordinance was adopted on September 20,
1999 by the City of Belleville. ;
(89) If if the ordinance was adopted on December 30,
1986 by the Village of Bellevue to create the Bellevue TIF
District 1. ;
(90) If if the ordinance was adopted on December 13,
1993 by the Village of Crete. ;
(91) If if the ordinance was adopted on February 12,
2001 by the Village of Crete. ;
(92) If if the ordinance was adopted on April 23, 2001
by the Village of Crete. ;
(93) If if the ordinance was adopted on December 16,
1986 by the City of Champaign. ;
(94) If if the ordinance was adopted on December 20,
1986 by the City of Charleston. ;

SB0277 Engrossed - 68 - LRB099 03029 SXM 23037 b
(95) If if the ordinance was adopted on June 6, 1989 by
the Village of Romeoville. ;
(96) If if the ordinance was adopted on October 14,
1993 and amended on August 2, 2010 by the City of Venice. ;
(97) If if the ordinance was adopted on June 1, 1994 by
the City of Markham. ;
(98) If if the ordinance was adopted on May 19, 1998 by
the Village of Bensenville. ;
(99) If if the ordinance was adopted on November 12,
1987 by the City of Dixon. ;
(100) If if the ordinance was adopted on December 20,
1988 by the Village of Lansing. ;
(101) If if the ordinance was adopted on October 27,
1998 by the City of Moline. ;
(102) If if the ordinance was adopted on May 21, 1991
by the Village of Glenwood. ;
(103) If if the ordinance was adopted on January 28,
1992 by the City of East Peoria. ;
(104) If if the ordinance was adopted on December 14,
1998 by the City of Carlyle. ;
(105) If if the ordinance was adopted on May 17, 2000,
as subsequently amended, by the City of Chicago to create
the Midwest Redevelopment TIF District. ;
(106) If if the ordinance was adopted on September 13,
1989 by the City of Chicago to create the Michigan/Cermak
Area TIF District. ;

SB0277 Engrossed - 69 - LRB099 03029 SXM 23037 b
(107) If if the ordinance was adopted on March 30, 1992
by the Village of Ohio. ;
(108) If if the ordinance was adopted on July 6, 1998
by the Village of Orangeville. ;
(109) If if the ordinance was adopted on December 16,
1997 by the Village of Germantown. ;
(110) If if the ordinance was adopted on April 28, 2003
by Gibson City. ;
(111) If if the ordinance was adopted on December 18,
1990 by the Village of Washington Park, but only after the
Village of Washington Park becomes compliant with the
reporting requirements under subsection (d) of Section
11-74.4-5, and after the State Comptroller's certification
of such compliance. ;
(112) If if the ordinance was adopted on February 28,
2000 by the City of Harvey. ; or
(113) If if the ordinance was adopted on January 11,
1991 by the City of Chicago to create the Read/Dunning TIF
District. ;
(114) If if the ordinance was adopted on July 24, 1991
by the City of Chicago to create the Sanitary and Ship
Canal TIF District. ;
(115) If if the ordinance was adopted on December 4,
2007 by the City of Naperville. ;
(116) If if the ordinance was adopted on July 1, 2002
by the Village of Arlington Heights. ;

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(117) If if the ordinance was adopted on February 11,
1991 by the Village of Machesney Park. ;
(118) If if the ordinance was adopted on December 29,
1993 by the City of Ottawa. ; or
(119) If if the ordinance was adopted on June 4, 1991
by the Village of Lansing.
(120) If (119) if the ordinance was adopted on February
10, 2004 by the Village of Fox Lake. ;
(121) If (120) if the ordinance was adopted on December
22, 1992 by the City of Fairfield. ; or
(122) If (121) if the ordinance was adopted on February
10, 1992 by the City of Mt. Sterling.
(123) If (113) if the ordinance was adopted on March
15, 2004 by the City of Batavia.
(124) If (119) if the ordinance was adopted on March
18, 2002 by the Village of Lake Zurich.
(d) For redevelopment project areas for which bonds were
issued before July 29, 1991, or for which contracts were
entered into before June 1, 1988, in connection with a
redevelopment project in the area within the State Sales Tax
Boundary, the estimated dates of completion of the
redevelopment project and retirement of obligations to finance
redevelopment project costs (including refunding bonds under
Section 11-74.4-7) may be extended by municipal ordinance to
December 31, 2013. The termination procedures of subsection (b)
of Section 11-74.4-8 are not required for these redevelopment

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project areas in 2009 but are required in 2013. The extension
allowed by Public Act 87-1272 shall not apply to real property
tax increment allocation financing under Section 11-74.4-8.
(e) Those dates, for purposes of real property tax
increment allocation financing pursuant to Section 11-74.4-8
only, shall be not more than 35 years for redevelopment project
areas that were adopted on or after December 16, 1986 and for
which at least $8 million worth of municipal bonds were
authorized on or after December 19, 1989 but before January 1,
1990; provided that the municipality elects to extend the life
of the redevelopment project area to 35 years by the adoption
of an ordinance after at least 14 but not more than 30 days'
written notice to the taxing bodies, that would otherwise
constitute the joint review board for the redevelopment project
area, before the adoption of the ordinance.
(f) Those dates, for purposes of real property tax
increment allocation financing pursuant to Section 11-74.4-8
only, shall be not more than 35 years for redevelopment project
areas that were established on or after December 1, 1981 but
before January 1, 1982 and for which at least $1,500,000 worth
of tax increment revenue bonds were authorized on or after
September 30, 1990 but before July 1, 1991; provided that the
municipality elects to extend the life of the redevelopment
project area to 35 years by the adoption of an ordinance after
at least 14 but not more than 30 days' written notice to the
taxing bodies, that would otherwise constitute the joint review

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board for the redevelopment project area, before the adoption
of the ordinance.
(g) In consolidating the material relating to completion
dates from Sections 11-74.4-3 and 11-74.4-7 into this Section,
it is not the intent of the General Assembly to make any
substantive change in the law, except for the extension of the
completion dates for the City of Aurora, the Village of Milan,
the City of West Frankfort, the Village of Libertyville, and
the Village of Hoffman Estates set forth under items (67),
(68), (69), (70), and (71) of subsection (c) of this Section.
(Source: P.A. 97-93, eff. 1-1-12; 97-372, eff. 8-15-11; 97-600,
eff. 8-26-11; 97-633, eff. 12-16-11; 97-635, eff. 12-16-11;
97-807, eff. 7-13-12; 97-1114, eff. 8-27-12; 98-109, eff.
7-25-13; 98-135, eff. 8-2-13; 98-230, eff. 8-9-13; 98-463, eff.
8-16-13; 98-614, eff. 12-27-13; 98-667, eff. 6-25-14; 98-889,
eff. 8-15-14; 98-893, eff. 8-15-14; 98-1064, eff. 8-26-14;
98-1136, eff. 12-29-14; 98-1153, eff. 1-9-15; 98-1157, eff.
1-9-15; 98-1159, eff. 1-9-15; revised 3-19-15.)
(65 ILCS 5/11-74.4-4) (from Ch. 24, par. 11-74.4-4)
Sec. 11-74.4-4. Municipal powers and duties; redevelopment
project areas. The changes made by this amendatory Act of the
91st General Assembly do not apply to a municipality that, (i)
before the effective date of this amendatory Act of the 91st
General Assembly, has adopted an ordinance or resolution fixing
a time and place for a public hearing under Section 11-74.4-5

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or (ii) before July 1, 1999, has adopted an ordinance or
resolution providing for a feasibility study under Section
11-74.4-4.1, but has not yet adopted an ordinance approving
redevelopment plans and redevelopment projects or designating
redevelopment project areas under this Section, until after
that municipality adopts an ordinance approving redevelopment
plans and redevelopment projects or designating redevelopment
project areas under this Section; thereafter the changes made
by this amendatory Act of the 91st General Assembly apply to
the same extent that they apply to redevelopment plans and
redevelopment projects that were approved and redevelopment
projects that were designated before the effective date of this
amendatory Act of the 91st General Assembly.
A municipality may:
(a) By ordinance introduced in the governing body of the
municipality within 14 to 90 days from the completion of the
hearing specified in Section 11-74.4-5 approve redevelopment
plans and redevelopment projects, and designate redevelopment
project areas pursuant to notice and hearing required by this
Act. No redevelopment project area shall be designated unless a
plan and project are approved prior to the designation of such
area and such area shall include only those contiguous parcels
of real property and improvements thereon substantially
benefited by the proposed redevelopment project improvements.
Upon adoption of the ordinances, the municipality shall
forthwith transmit to the county clerk of the county or

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counties within which the redevelopment project area is located
a certified copy of the ordinances, a legal description of the
redevelopment project area, a map of the redevelopment project
area, identification of the year that the county clerk shall
use for determining the total initial equalized assessed value
of the redevelopment project area consistent with subsection
(a) of Section 11-74.4-9, and a list of the parcel or tax
identification number of each parcel of property included in
the redevelopment project area.
(b) Make and enter into all contracts with property owners,
developers, tenants, overlapping taxing bodies, and others
necessary or incidental to the implementation and furtherance
of its redevelopment plan and project. Contract provisions
concerning loan repayment obligations in contracts entered
into on or after the effective date of this amendatory Act of
the 93rd General Assembly shall terminate no later than the
last to occur of the estimated dates of completion of the
redevelopment project and retirement of the obligations issued
to finance redevelopment project costs as required by item (3)
of subsection (n) of Section 11-74.4-3. Payments received under
contracts entered into by the municipality prior to the
effective date of this amendatory Act of the 93rd General
Assembly that are received after the redevelopment project area
has been terminated by municipal ordinance shall be deposited
into a special fund of the municipality to be used for other
community redevelopment needs within the redevelopment project

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area.
(c) Within a redevelopment project area, acquire by
purchase, donation, lease or eminent domain; own, convey,
lease, mortgage or dispose of land and other property, real or
personal, or rights or interests therein, and grant or acquire
licenses, easements and options with respect thereto, all in
the manner and at such price the municipality determines is
reasonably necessary to achieve the objectives of the
redevelopment plan and project. No conveyance, lease,
mortgage, disposition of land or other property owned by a
municipality, or agreement relating to the development of such
municipal property shall be made except upon the adoption of an
ordinance by the corporate authorities of the municipality.
Furthermore, no conveyance, lease, mortgage, or other
disposition of land owned by a municipality or agreement
relating to the development of such municipal property shall be
made without making public disclosure of the terms of the
disposition and all bids and proposals made in response to the
municipality's request. The procedures for obtaining such bids
and proposals shall provide reasonable opportunity for any
person to submit alternative proposals or bids.
(d) Within a redevelopment project area, clear any area by
demolition or removal of any existing buildings and structures.
(e) Within a redevelopment project area, renovate or
rehabilitate or construct any structure or building, as
permitted under this Act.

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

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elsewhere in this Act.
(k) Create a commission of not less than 5 or more than 15
persons to be appointed by the mayor or president of the
municipality with the consent of the majority of the governing
board of the municipality. Members of a commission appointed
after the effective date of this amendatory Act of 1987 shall
be appointed for initial terms of 1, 2, 3, 4 and 5 years,
respectively, in such numbers as to provide that the terms of
not more than 1/3 of all such members shall expire in any one
year. Their successors shall be appointed for a term of 5
years. The commission, subject to approval of the corporate
authorities may exercise the powers enumerated in this Section.
The commission shall also have the power to hold the public
hearings required by this division and make recommendations to
the corporate authorities concerning the adoption of
redevelopment plans, redevelopment projects and designation of
redevelopment project areas.
(l) Make payment in lieu of taxes or a portion thereof to
taxing districts. If payments in lieu of taxes or a portion
thereof are made to taxing districts, those payments shall be
made to all districts within a project redevelopment area on a
basis which is proportional to the current collections of
revenue which each taxing district receives from real property
in the redevelopment project area.
(m) Exercise any and all other powers necessary to
effectuate the purposes of this Act.

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

SB0277 Engrossed - 79 - LRB099 03029 SXM 23037 b
pursuant to Section 11-74.4-6 of this Division, whichever
occurs first. For the purposes of this subsection, a property
interest acquired in a single parcel of property by a member of
the corporate authority, which property is used exclusively as
the member's primary residence, shall not be deemed to
constitute an interest in any property included in a
redevelopment area or proposed redevelopment area that was
established before December 31, 1989, but the member must
disclose the acquisition to the municipal clerk under the
provisions of this subsection. A single property interest
acquired within one year after the effective date of this
amendatory Act of the 94th General Assembly or 2 years after
the effective date of this amendatory Act of the 95th General
Assembly by a member of the corporate authority does not
constitute an interest in any property included in any
redevelopment area or proposed redevelopment area, regardless
of when the redevelopment area was established, if (i) the
property is used exclusively as the member's primary residence,
(ii) the member discloses the acquisition to the municipal
clerk under the provisions of this subsection, (iii) the
acquisition is for fair market value, (iv) the member acquires
the property as a result of the property being publicly
advertised for sale, and (v) the member refrains from voting
on, and communicating with other members concerning, any matter
when the benefits to the redevelopment project or area would be
significantly greater than the benefits to the municipality as

SB0277 Engrossed - 80 - LRB099 03029 SXM 23037 b
a whole. For the purposes of this subsection, a month-to-month
leasehold interest in a single parcel of property by a member
of the corporate authority shall not be deemed to constitute an
interest in any property included in any redevelopment area or
proposed redevelopment area, but the member must disclose the
interest to the municipal clerk under the provisions of this
subsection.
(o) Create a Tax Increment Economic Development Advisory
Committee to be appointed by the Mayor or President of the
municipality with the consent of the majority of the governing
board of the municipality, the members of which Committee shall
be appointed for initial terms of 1, 2, 3, 4 and 5 years
respectively, in such numbers as to provide that the terms of
not more than 1/3 of all such members shall expire in any one
year. Their successors shall be appointed for a term of 5
years. The Committee shall have none of the powers enumerated
in this Section. The Committee shall serve in an advisory
capacity only. The Committee may advise the governing Board of
the municipality and other municipal officials regarding
development issues and opportunities within the redevelopment
project area or the area within the State Sales Tax Boundary.
The Committee may also promote and publicize development
opportunities in the redevelopment project area or the area
within the State Sales Tax Boundary.
(p) Municipalities may jointly undertake and perform
redevelopment plans and projects and utilize the provisions of

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the Act wherever they have contiguous redevelopment project
areas or they determine to adopt tax increment financing with
respect to a redevelopment project area which includes
contiguous real property within the boundaries of the
municipalities, and in doing so, they may, by agreement between
municipalities, issue obligations, separately or jointly, and
expend revenues received under the Act for eligible expenses
anywhere within contiguous redevelopment project areas or as
otherwise permitted in the Act. With respect to redevelopment
project areas that are established within a transit facility
improvement area, the provisions of this subsection apply only
with respect to such redevelopment project areas that are
contiguous to each other.
(q) Utilize revenues, other than State sales tax increment
revenues, received under this Act from one redevelopment
project area for eligible costs in another redevelopment
project area that is:
(i) contiguous to the redevelopment project area from
which the revenues are received;
(ii) separated only by a public right of way from the
redevelopment project area from which the revenues are
received; or
(iii) separated only by forest preserve property from
the redevelopment project area from which the revenues are
received if the closest boundaries of the redevelopment
project areas that are separated by the forest preserve

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

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

SB0277 Engrossed - 84 - LRB099 03029 SXM 23037 b
Chicago has 90 days after the effective date of this amendatory
Act to repeal the ordinance. The changes to this Section made
by this amendatory Act of the 96th General Assembly apply
retroactively to July 27, 2005.
(Source: P.A. 96-1555, eff. 3-18-11; 97-333, eff. 8-12-11.)
(65 ILCS 5/11-74.4-8) (from Ch. 24, par. 11-74.4-8)
Sec. 11-74.4-8. Tax increment allocation financing. A
municipality may not adopt tax increment financing in a
redevelopment project area after the effective date of this
amendatory Act of 1997 that will encompass an area that is
currently included in an enterprise zone created under the
Illinois Enterprise Zone Act unless that municipality,
pursuant to Section 5.4 of the Illinois Enterprise Zone Act,
amends the enterprise zone designating ordinance to limit the
eligibility for tax abatements as provided in Section 5.4.1 of
the Illinois Enterprise Zone Act. A municipality, at the time a
redevelopment project area is designated, may adopt tax
increment allocation financing by passing an ordinance
providing that the ad valorem taxes, if any, arising from the
levies upon taxable real property in such redevelopment project
area by taxing districts and tax rates determined in the manner
provided in paragraph (c) of Section 11-74.4-9 each year after
the effective date of the ordinance until redevelopment project
costs and all municipal obligations financing redevelopment
project costs incurred under this Division have been paid shall

SB0277 Engrossed - 85 - LRB099 03029 SXM 23037 b
be divided as follows, provided, however, that with respect to
any redevelopment project area located within a transit
facility improvement area established pursuant to Section
11-74.4-3.3 in a municipality with a population of 1,000,000 or
more, ad valorem taxes, if any, arising from the levies upon
taxable real property in such redevelopment project area shall
be allocated as specifically provided in this Section:
(a) That portion of taxes levied upon each taxable lot,
block, tract or parcel of real property which is attributable
to the lower of the current equalized assessed value or the
initial equalized assessed value of each such taxable lot,
block, tract or parcel of real property in the redevelopment
project area shall be allocated to and when collected shall be
paid by the county collector to the respective affected taxing
districts in the manner required by law in the absence of the
adoption of tax increment allocation financing.
(b) Except from a tax levied by a township to retire bonds
issued to satisfy court-ordered damages, that portion, if any,
of such taxes which is attributable to the increase in the
current equalized assessed valuation of each taxable lot,
block, tract or parcel of real property in the redevelopment
project area over and above the initial equalized assessed
value of each property in the project area shall be allocated
to and when collected shall be paid to the municipal treasurer
who shall deposit said taxes into a special fund called the
special tax allocation fund of the municipality for the purpose

SB0277 Engrossed - 86 - LRB099 03029 SXM 23037 b
of paying redevelopment project costs and obligations incurred
in the payment thereof. In any county with a population of
3,000,000 or more that has adopted a procedure for collecting
taxes that provides for one or more of the installments of the
taxes to be billed and collected on an estimated basis, the
municipal treasurer shall be paid for deposit in the special
tax allocation fund of the municipality, from the taxes
collected from estimated bills issued for property in the
redevelopment project area, the difference between the amount
actually collected from each taxable lot, block, tract, or
parcel of real property within the redevelopment project area
and an amount determined by multiplying the rate at which taxes
were last extended against the taxable lot, block, track, or
parcel of real property in the manner provided in subsection
(c) of Section 11-74.4-9 by the initial equalized assessed
value of the property divided by the number of installments in
which real estate taxes are billed and collected within the
county; provided that the payments on or before December 31,
1999 to a municipal treasurer shall be made only if each of the
following conditions are met:
(1) The total equalized assessed value of the
redevelopment project area as last determined was not less
than 175% of the total initial equalized assessed value.
(2) Not more than 50% of the total equalized assessed
value of the redevelopment project area as last determined
is attributable to a piece of property assigned a single

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real estate index number.
(3) The municipal clerk has certified to the county
clerk that the municipality has issued its obligations to
which there has been pledged the incremental property taxes
of the redevelopment project area or taxes levied and
collected on any or all property in the municipality or the
full faith and credit of the municipality to pay or secure
payment for all or a portion of the redevelopment project
costs. The certification shall be filed annually no later
than September 1 for the estimated taxes to be distributed
in the following year; however, for the year 1992 the
certification shall be made at any time on or before March
31, 1992.
(4) The municipality has not requested that the total
initial equalized assessed value of real property be
adjusted as provided in subsection (b) of Section
11-74.4-9.
The conditions of paragraphs (1) through (4) do not apply
after December 31, 1999 to payments to a municipal treasurer
made by a county with 3,000,000 or more inhabitants that has
adopted an estimated billing procedure for collecting taxes. If
a county that has adopted the estimated billing procedure makes
an erroneous overpayment of tax revenue to the municipal
treasurer, then the county may seek a refund of that
overpayment. The county shall send the municipal treasurer a
notice of liability for the overpayment on or before the

SB0277 Engrossed - 88 - LRB099 03029 SXM 23037 b
mailing date of the next real estate tax bill within the
county. The refund shall be limited to the amount of the
overpayment.
It is the intent of this Division that after the effective
date of this amendatory Act of 1988 a municipality's own ad
valorem tax arising from levies on taxable real property be
included in the determination of incremental revenue in the
manner provided in paragraph (c) of Section 11-74.4-9. If the
municipality does not extend such a tax, it shall annually
deposit in the municipality's Special Tax Increment Fund an
amount equal to 10% of the total contributions to the fund from
all other taxing districts in that year. The annual 10% deposit
required by this paragraph shall be limited to the actual
amount of municipally produced incremental tax revenues
available to the municipality from taxpayers located in the
redevelopment project area in that year if: (a) the plan for
the area restricts the use of the property primarily to
industrial purposes, (b) the municipality establishing the
redevelopment project area is a home-rule community with a 1990
population of between 25,000 and 50,000, (c) the municipality
is wholly located within a county with a 1990 population of
over 750,000 and (d) the redevelopment project area was
established by the municipality prior to June 1, 1990. This
payment shall be in lieu of a contribution of ad valorem taxes
on real property. If no such payment is made, any redevelopment
project area of the municipality shall be dissolved.

SB0277 Engrossed - 89 - LRB099 03029 SXM 23037 b
If a municipality has adopted tax increment allocation
financing by ordinance and the County Clerk thereafter
certifies the "total initial equalized assessed value as
adjusted" of the taxable real property within such
redevelopment project area in the manner provided in paragraph
(b) of Section 11-74.4-9, each year after the date of the
certification of the total initial equalized assessed value as
adjusted until redevelopment project costs and all municipal
obligations financing redevelopment project costs have been
paid the ad valorem taxes, if any, arising from the levies upon
the taxable real property in such redevelopment project area by
taxing districts and tax rates determined in the manner
provided in paragraph (c) of Section 11-74.4-9 shall be divided
as follows, provided, however, that with respect to any
redevelopment project area located within a transit facility
improvement area established pursuant to Section 11-74.4-3.3
in a municipality with a population of 1,000,000 or more, ad
valorem taxes, if any, arising from the levies upon the taxable
real property in such redevelopment project area shall be
allocated as specifically provided in this Section:
(1) That portion of the taxes levied upon each taxable
lot, block, tract or parcel of real property which is
attributable to the lower of the current equalized assessed
value or "current equalized assessed value as adjusted" or
the initial equalized assessed value of each such taxable
lot, block, tract, or parcel of real property existing at

SB0277 Engrossed - 90 - LRB099 03029 SXM 23037 b
the time tax increment financing was adopted, minus the
total current homestead exemptions under Article 15 of the
Property Tax Code in the redevelopment project area shall
be allocated to and when collected shall be paid by the
county collector to the respective affected taxing
districts in the manner required by law in the absence of
the adoption of tax increment allocation financing.
(2) That portion, if any, of such taxes which is
attributable to the increase in the current equalized
assessed valuation of each taxable lot, block, tract, or
parcel of real property in the redevelopment project area,
over and above the initial equalized assessed value of each
property existing at the time tax increment financing was
adopted, minus the total current homestead exemptions
pertaining to each piece of property provided by Article 15
of the Property Tax Code in the redevelopment project area,
shall be allocated to and when collected shall be paid to
the municipal Treasurer, who shall deposit said taxes into
a special fund called the special tax allocation fund of
the municipality for the purpose of paying redevelopment
project costs and obligations incurred in the payment
thereof.
The municipality may pledge in the ordinance the funds in
and to be deposited in the special tax allocation fund for the
payment of such costs and obligations. No part of the current
equalized assessed valuation of each property in the

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redevelopment project area attributable to any increase above
the total initial equalized assessed value, or the total
initial equalized assessed value as adjusted, of such
properties shall be used in calculating the general State
school aid formula, provided for in Section 18-8 of the School
Code, until such time as all redevelopment project costs have
been paid as provided for in this Section.
Whenever a municipality issues bonds for the purpose of
financing redevelopment project costs, such municipality may
provide by ordinance for the appointment of a trustee, which
may be any trust company within the State, and for the
establishment of such funds or accounts to be maintained by
such trustee as the municipality shall deem necessary to
provide for the security and payment of the bonds. If such
municipality provides for the appointment of a trustee, such
trustee shall be considered the assignee of any payments
assigned by the municipality pursuant to such ordinance and
this Section. Any amounts paid to such trustee as assignee
shall be deposited in the funds or accounts established
pursuant to such trust agreement, and shall be held by such
trustee in trust for the benefit of the holders of the bonds,
and such holders shall have a lien on and a security interest
in such funds or accounts so long as the bonds remain
outstanding and unpaid. Upon retirement of the bonds, the
trustee shall pay over any excess amounts held to the
municipality for deposit in the special tax allocation fund.

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When such redevelopment projects costs, including without
limitation all municipal obligations financing redevelopment
project costs incurred under this Division, have been paid, all
surplus funds then remaining in the special tax allocation fund
shall be distributed by being paid by the municipal treasurer
to the Department of Revenue, the municipality and the county
collector; first to the Department of Revenue and the
municipality in direct proportion to the tax incremental
revenue received from the State and the municipality, but not
to exceed the total incremental revenue received from the State
or the municipality less any annual surplus distribution of
incremental revenue previously made; with any remaining funds
to be paid to the County Collector who shall immediately
thereafter pay said funds to the taxing districts in the
redevelopment project area in the same manner and proportion as
the most recent distribution by the county collector to the
affected districts of real property taxes from real property in
the redevelopment project area.
Upon the payment of all redevelopment project costs, the
retirement of obligations, the distribution of any excess
monies pursuant to this Section, and final closing of the books
and records of the redevelopment project area, the municipality
shall adopt an ordinance dissolving the special tax allocation
fund for the redevelopment project area and terminating the
designation of the redevelopment project area as a
redevelopment project area. Title to real or personal property

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and public improvements acquired by or for the municipality as
a result of the redevelopment project and plan shall vest in
the municipality when acquired and shall continue to be held by
the municipality after the redevelopment project area has been
terminated. Municipalities shall notify affected taxing
districts prior to November 1 if the redevelopment project area
is to be terminated by December 31 of that same year. If a
municipality extends estimated dates of completion of a
redevelopment project and retirement of obligations to finance
a redevelopment project, as allowed by this amendatory Act of
1993, that extension shall not extend the property tax
increment allocation financing authorized by this Section.
Thereafter the rates of the taxing districts shall be extended
and taxes levied, collected and distributed in the manner
applicable in the absence of the adoption of tax increment
allocation financing.
If a municipality with a population of 1,000,000 or more
has adopted by ordinance tax increment allocation financing for
a redevelopment project area located in a transit facility
improvement area established pursuant to Section 11-74.4-3.3,
for each year after the effective date of the ordinance until
redevelopment project costs and all municipal obligations
financing redevelopment project costs have been paid, the ad
valorem taxes, if any, arising from the levies upon the taxable
real property in that redevelopment project area by taxing
districts and tax rates determined in the manner provided in

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paragraph (c) of Section 11-74.4-9 shall be divided as follows:
(1) That portion of the taxes levied upon each taxable
lot, block, tract or parcel of real property which is
attributable to the lower of (i) the current equalized
assessed value or "current equalized assessed value as
adjusted" or (ii) the initial equalized assessed value of
each such taxable lot, block, tract, or parcel of real
property existing at the time tax increment financing was
adopted, minus the total current homestead exemptions
under Article 15 of the Property Tax Code in the
redevelopment project area shall be allocated to and when
collected shall be paid by the county collector to the
respective affected taxing districts in the manner
required by law in the absence of the adoption of tax
increment allocation financing.
(2) That portion, if any, of such taxes which is
attributable to the increase in the current equalized
assessed valuation of each taxable lot, block, tract, or
parcel of real property in the redevelopment project area,
over and above the initial equalized assessed value of each
property existing at the time tax increment financing was
adopted, minus the total current homestead exemptions
pertaining to each piece of property provided by Article 15
of the Property Tax Code in the redevelopment project area,
shall be allocated to and when collected shall be paid by
the county collector as follows:

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(A) First, that portion which would be payable to a
school district whose boundaries are coterminous with
such municipality in the absence of the adoption of tax
increment allocation financing, shall be paid to such
school district in the manner required by law in the
absence of the adoption of tax increment allocation
financing; then
(B) 80% of the remaining portion shall be paid to
the municipal Treasurer, who shall deposit said taxes
into a special fund called the special tax allocation
fund of the municipality for the purpose of paying
redevelopment project costs and obligations incurred
in the payment thereof; and then
(C) 20% of the remaining portion shall be paid to
the respective affected taxing districts, other than
the school district described in clause (a) above, in
the manner required by law in the absence of the
adoption of tax increment allocation financing.
Nothing in this Section shall be construed as relieving
property in such redevelopment project areas from being
assessed as provided in the Property Tax Code or as relieving
owners of such property from paying a uniform rate of taxes, as
required by Section 4 of Article IX of the Illinois
Constitution.
(Source: P.A. 98-463, eff. 8-16-13.)