Bill Text: IL SB3402 | 2011-2012 | 97th General Assembly | Engrossed

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Bill Title: Creates the Technology Development District Act. Defines terms. Provides that a municipality may, by ordinance, establish a technology development district. Sets forth requirements concerning the development plan, notices, public meetings, and financing of development projects. Sets forth the powers of a municipality concerning the creation of a technology development district.

Spectrum: Partisan Bill (Republican 3-0)

Status: (Failed) 2013-01-08 - Session Sine Die [SB3402 Detail]

Download: Illinois-2011-SB3402-Engrossed.html

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AN ACT concerning local government.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 1. Short title. This Act may be cited as the
Technology Development District Act.
Section 3. Purpose. In order to better utilize community
resources, including those of schools and libraries,
municipalities may develop technology development districts.
These districts would aid in the redevelopment of older
communities that use antiquated technology infrastructure,
educational development, and make communities more competitive
and technologically inviting.
The use of tax revenues derived from the tax rates of
various taxing districts in development project areas for the
payment of development project costs is of benefit to said
taxing districts, all surplus tax revenues are turned over to
the taxing districts in development project areas, and all said
districts benefit from the development of technology
infrastructure.
Section 5. Definitions.
"Development district" means a technology development
district.

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"Development plan" means a development plan required for
the creation of a technology development district pursuant to
Section 10 of this Act.
"Development project" means any public or private
development project in furtherance of the objectives of a
development plan.
"Development project area" means an area designated by the
municipality for a development project.
"Development project costs" means and includes the sum
total of all reasonable or necessary costs incurred or
estimated to be incurred, and any costs incidental to a
development plan and a development project.
"Municipality" means a city, village, or township.
"Obligations" mean bonds, loans, debentures, notes,
special certificates, or other evidence of indebtedness issued
by the municipality to carry out a development project or to
refund outstanding obligations.
"Services" means any improvements and facilities provided
for in the development plan of a development district as
approved by the corporate authorities of a municipality,
including both on-site improvements and off-site improvements
that directly or indirectly benefit the development district,
and necessary or incidental work, whether newly constructed,
renovated, or existing. "Services" includes electrical and
energy generation facilities and upgrades, inspection,
construction management, and program management costs,

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high-tech manufacturing facilities, community outreach
programs and facilities, educational equipment, and technology
parks. "Services" also includes equipment and inside wiring or
cable used and controlled by a property owner for the purchase
of broadband services, but only to the extent that the
equipment and inside wiring or cable is located on the premises
of the customer for broadband services. "Services" does not
include equipment located outside of a property owner's
premises, such as high speed cable, telecommunications lines,
fiber optic transmission facilities, and related equipment
designed to carry communications signals such as voice, data,
and video to the premises.
Section 10. Creation of technology development district. A
municipality may, by ordinance, establish a technology
development district. The district may be entirely within, or
partly within and partly without, one or more municipalities,
and a development district may consist of noncontiguous tracts
or parcels of property within 3 miles of each other. The
municipality shall submit a development plan that shall be
available for public viewing.
(a) The development plan for a district shall include:
(1) a description of the proposed services;
(2) a financial plan showing how the proposed services
are to be financed, including the proposed operating
revenue derived from property taxes for the first fiscal

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year of the proposed development district;
(3) a schedule of the proposed indebtedness for the
proposed development district indicating the year or years
in which the debt is scheduled to be issued;
(4) a preliminary engineering or architectural survey
showing how the proposed services are to be provided;
(5) a map of the proposed development district
boundaries and an estimate of the population and valuation
for assessment of the proposed development district;
(6) a general description of the facilities to be
constructed and the standards of the construction,
including a statement of how the facility and service
standards of the proposed development district are
compatible with the facility and service standards of any
municipality within the zoning jurisdiction where all or
any portion of the proposed development district is to be
located;
(7) a general description of the estimated cost of
acquiring any land, engineering services, legal services,
administrative services, initial proposed indebtedness and
estimated proposed maximum interest rates and discounts,
and other major expenses related to the organization and
initial operation of the proposed development district;
(8) a description of any arrangement or proposed
agreement with any political subdivision for the
performance of any services between the proposed

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development district and the other political subdivision,
including, if the form contract to be used is available, a
copy of the contract; and
(9) any additional information as the corporate
authorities of the municipality may find necessary.
(b) A municipality may:
(1) install, repair, construct, reconstruct, or
relocate streets, utilities, and site improvements
essential to the preparation of the development area for
use in accordance with a development plan;
(2) accept grants, guarantees, and donations of
property, labor, or other things of value from a public or
private source for use within a project development area;
(3) incur project development costs and reimburse
developers who incur development project costs authorized
by a development agreement; provided, however, that no
municipality shall incur development project costs that
are not consistent with the program for accomplishing the
objectives of the development plan;
(4) jointly undertake and perform development plans
and projects wherever they have contiguous development
project areas that 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

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within contiguous development project areas; and
(5) issue bonds, provided that the bonds amount to no
more than 50% of the annual revenue received from the
development district.
Section 15. Notice and meeting.
(a) After receiving a development plan, the corporate
authorities shall set a date within 90 days for a public
hearing on the development plan of the proposed development
district. The corporate authorities shall provide written
notice of the date, time, and location of the hearing to each
resident or property owner of record within the boundaries of
the development district and the governing body of any existing
county, municipality, school district or other political
subdivision that has levied an ad valorem tax within the next
preceding tax year and that has boundaries within a radius of 3
miles of the proposed development district boundaries. Notice
shall also be given to any person who has requested that notice
be given for any development plan filed pursuant to this Act.
The corporate authorities shall make publication of the date,
time, location and purpose of the hearing, the first of which
shall be at least 20 days before the hearing date. The notice
shall also include: (i) a general description of the land
contained within the boundaries of the proposed development
district, (ii) information outlining methods and procedures
for excluding territory from the proposed development

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district, and (iii) places, including web sites, where
interested persons may obtain a copy of the development plan.
(b) Not more than 30 days nor less than 20 days before the
hearing held pursuant to this Section, the petitioners for the
organization of the proposed development district shall send
notification by certified mail of the hearing to the property
owners within the proposed development district as listed on
the records of the county clerk on the date requested unless
the petitioners represent 100% of the property owners. The
notification shall indicate that it is a notice of a hearing
for the organization of a development district and shall
indicate the date, time, location and purpose of the hearing,
and a general description of the type of services that are
included in the development plan. The mailing of the
notification by certified mail to all addresses within the
proposed development district shall constitute a good-faith
effort to comply with this subsection, and failure to notify
all property owners by certified mail shall not provide grounds
for a challenge to the hearing being held.
(c) The hearing held by the governing body shall be open to
the public, and a record of the proceedings shall be made at
the expense of the petitioners. All interested parties shall be
afforded an opportunity to be heard under applicable rules of
procedure as may be established by the corporate authorities.
Any testimony or evidence that in the discretion of the
governing body is relevant to the organization of the proposed

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development district shall be considered.
(d) After a municipality has by ordinance approved a
development plan and designated a development project area, the
plan may be amended and additional properties may be added to
the development project area. The municipality shall give
notice and hold a hearing, as provided in this Section, prior
to amending a plan.
(e) Beginning in fiscal year 2013 and in each fiscal year
thereafter, a municipality must detail in its annual budget (i)
the revenues generated from development project areas by source
and (ii) the expenditures made by the municipality for
development project areas.
Section 30. Revenue.
The projects to be constructed or acquired as shown in the
development plan may be financed from the following sources of
revenue:
(1) proceeds received from the sale of bonds of the
development district;
(2) money of the municipality or county contributed to
the development district;
(3) annual property taxes or special assessments;
(4) State or federal grants or contributions;
(5) private contributions;
(6) user, landowner and other fees, tolls and charges;
(7) proceeds of loans or advances; and

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(8) any other money available to the development
district by law.
No revenues from one technology development district may be
transferred to another district.