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| | 99TH GENERAL ASSEMBLY
State of Illinois
2015 and 2016
HB0146 Introduced , by Rep. Rita Mayfield SYNOPSIS AS INTRODUCED:
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| 65 ILCS 5/11-74.4-4 | from Ch. 24, par. 11-74.4-4 |
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Amends the Tax Increment Allocation Redevelopment Act in the Illinois Municipal Code. Provides that the City of Waukegan may utilize revenues, other than State sales tax increment revenues, from redevelopment project area for eligible costs in another redevelopment project area. Effective immediately.
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| | A BILL FOR |
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| | HB0146 | | LRB099 03659 AWJ 23670 b |
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| 1 | | AN ACT concerning local government.
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| 2 | | Be it enacted by the People of the State of Illinois,
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| 3 | | represented in the General Assembly:
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| 4 | | Section 5. The Illinois Municipal Code is amended by |
| 5 | | changing Section 11-74.4-4 as follows:
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| 6 | | (65 ILCS 5/11-74.4-4) (from Ch. 24, par. 11-74.4-4)
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| 7 | | Sec. 11-74.4-4. Municipal powers and duties; redevelopment |
| 8 | | project
areas. The changes made by this amendatory Act of the |
| 9 | | 91st General Assembly
do not apply to a municipality that, (i) |
| 10 | | before the effective date of this
amendatory Act of the 91st |
| 11 | | General Assembly, has adopted an ordinance or
resolution fixing |
| 12 | | a time and place for a
public hearing under Section 11-74.4-5 |
| 13 | | or (ii) before July 1, 1999, has
adopted an ordinance or |
| 14 | | resolution providing for a feasibility study under
Section |
| 15 | | 11-74.4-4.1, but has not yet adopted an ordinance
approving |
| 16 | | redevelopment plans and redevelopment projects or designating
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| 17 | | redevelopment project areas under this Section, until after |
| 18 | | that
municipality adopts an ordinance
approving redevelopment |
| 19 | | plans and redevelopment projects or designating
redevelopment |
| 20 | | project areas under this Section; thereafter the changes made |
| 21 | | by
this amendatory Act of the 91st General Assembly apply to |
| 22 | | the same extent that
they apply to
redevelopment plans and |
| 23 | | redevelopment projects that were approved and
redevelopment |
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| 1 | | projects that were designated before the effective date of this
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| 2 | | amendatory Act of the 91st General Assembly.
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| 3 | | A municipality may: |
| 4 | | (a) By ordinance introduced in the
governing body of the |
| 5 | | municipality within 14 to 90 days from the completion
of the |
| 6 | | hearing specified in Section 11-74.4-5
approve redevelopment |
| 7 | | plans and redevelopment projects, and designate
redevelopment |
| 8 | | project areas pursuant to notice and hearing required by this
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| 9 | | Act. No redevelopment project area shall be designated unless a |
| 10 | | plan and
project are approved
prior to the designation of such |
| 11 | | area and such area
shall include only those contiguous parcels |
| 12 | | of real property and
improvements thereon substantially |
| 13 | | benefited by the proposed redevelopment
project improvements.
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| 14 | | Upon adoption of the ordinances, the municipality shall |
| 15 | | forthwith transmit to
the county clerk of the county or |
| 16 | | counties within which the redevelopment
project area is located |
| 17 | | a certified copy of the ordinances, a legal description
of the |
| 18 | | redevelopment project area, a map of the redevelopment project |
| 19 | | area,
identification of the year that the county clerk shall |
| 20 | | use for determining the
total initial equalized assessed value |
| 21 | | of the redevelopment project area
consistent with subsection |
| 22 | | (a) of Section 11-74.4-9, and a
list of the parcel or tax |
| 23 | | identification number of each parcel of property
included in |
| 24 | | the redevelopment project area.
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| 25 | | (b) Make and enter into all contracts with property owners, |
| 26 | | developers,
tenants, overlapping taxing bodies, and others |
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| 1 | | necessary or incidental to the
implementation and furtherance |
| 2 | | of its redevelopment plan and project.
Contract provisions |
| 3 | | concerning loan repayment obligations in contracts
entered |
| 4 | | into on or after the effective date of this amendatory Act
of
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| 5 | | the 93rd
General Assembly shall terminate no later than the |
| 6 | | last to occur of the
estimated dates of
completion of the
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| 7 | | redevelopment project and retirement of the obligations issued |
| 8 | | to finance
redevelopment
project costs as required by item (3) |
| 9 | | of subsection (n) of Section 11-74.4-3.
Payments received under
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| 10 | | contracts entered
into by the
municipality prior to the |
| 11 | | effective date of this amendatory Act of the 93rd
General
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| 12 | | Assembly that are received after the redevelopment project area |
| 13 | | has been
terminated by
municipal ordinance shall be deposited |
| 14 | | into a special fund of the municipality
to be used
for other |
| 15 | | community redevelopment needs within the redevelopment project
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| 16 | | area.
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| 17 | | (c) Within a redevelopment project area, acquire by |
| 18 | | purchase, donation,
lease or
eminent domain; own, convey, |
| 19 | | lease, mortgage or dispose of land
and other property, real or |
| 20 | | personal, or rights or interests therein, and
grant or acquire |
| 21 | | licenses, easements and options with respect thereto, all
in |
| 22 | | the manner and at such price the municipality determines is |
| 23 | | reasonably
necessary to achieve the objectives of the |
| 24 | | redevelopment plan and project.
No conveyance, lease, |
| 25 | | mortgage, disposition of land or other property owned
by a |
| 26 | | municipality, or
agreement relating to the development of such |
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| 1 | | municipal property
shall be
made except
upon the adoption of an |
| 2 | | ordinance by the corporate authorities of the
municipality. |
| 3 | | Furthermore, no conveyance, lease, mortgage, or other
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| 4 | | disposition of land owned by a municipality or agreement |
| 5 | | relating to the
development of such municipal property
shall be |
| 6 | | made without making public disclosure of the terms of the
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| 7 | | disposition and all bids and proposals made in response to the
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| 8 | | municipality's request. The procedures for obtaining such bids |
| 9 | | and
proposals shall provide reasonable opportunity for any |
| 10 | | person to submit
alternative proposals or bids.
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| 11 | | (d) Within a redevelopment project area, clear any area by
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| 12 | | demolition or removal of any existing buildings and structures.
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| 13 | | (e) Within a redevelopment project area, renovate or |
| 14 | | rehabilitate or
construct any structure or building, as |
| 15 | | permitted under this Act.
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| 16 | | (f) Install, repair, construct, reconstruct or relocate |
| 17 | | streets, utilities
and site improvements essential to the |
| 18 | | preparation of the redevelopment
area for use in accordance |
| 19 | | with a redevelopment plan.
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| 20 | | (g) Within a redevelopment project area, fix, charge and |
| 21 | | collect fees,
rents and charges for the use of any building or |
| 22 | | property owned or leased
by it or any part thereof, or facility |
| 23 | | therein.
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| 24 | | (h) Accept grants, guarantees and donations of property, |
| 25 | | labor, or other
things of value from a public or private source |
| 26 | | for use within a project
redevelopment area.
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| 1 | | (i) Acquire and construct public facilities within a |
| 2 | | redevelopment project
area, as permitted under this Act.
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| 3 | | (j) Incur project redevelopment costs and reimburse |
| 4 | | developers who incur
redevelopment project costs authorized by |
| 5 | | a redevelopment agreement; provided,
however, that on and
after |
| 6 | | the effective date of this amendatory
Act of the 91st General |
| 7 | | Assembly, no municipality shall incur redevelopment
project |
| 8 | | costs (except for planning costs and any other eligible costs
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| 9 | | authorized by municipal ordinance or resolution that are |
| 10 | | subsequently included
in the
redevelopment plan for the area |
| 11 | | and are incurred by the municipality after the
ordinance or |
| 12 | | resolution is adopted)
that are
not consistent with the program |
| 13 | | for
accomplishing the objectives of the
redevelopment plan as |
| 14 | | included in that plan and approved by the
municipality until |
| 15 | | the municipality has amended
the redevelopment plan as provided |
| 16 | | elsewhere in this Act.
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| 17 | | (k) Create a commission of not less than 5 or more than 15 |
| 18 | | persons to
be appointed by the mayor or president of the |
| 19 | | municipality with the consent
of the majority of the governing |
| 20 | | board of the municipality. Members of a
commission appointed |
| 21 | | after the effective date of this amendatory Act of
1987 shall |
| 22 | | be appointed for initial terms of 1, 2, 3, 4 and 5 years,
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| 23 | | respectively, in such numbers as to provide that the terms of |
| 24 | | not more than
1/3 of all such members shall expire in any one |
| 25 | | year. Their successors
shall be appointed for a term of 5 |
| 26 | | years. The commission, subject to
approval of the corporate |
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| 1 | | authorities may exercise the powers enumerated in
this Section. |
| 2 | | The commission shall also have the power to hold the public
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| 3 | | hearings required by this division and make recommendations to |
| 4 | | the
corporate authorities concerning the adoption of |
| 5 | | redevelopment plans,
redevelopment projects and designation of |
| 6 | | redevelopment project areas.
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| 7 | | (l) Make payment in lieu of taxes or a portion thereof to |
| 8 | | taxing districts.
If payments in lieu of taxes or a portion |
| 9 | | thereof are made to taxing districts,
those payments shall be |
| 10 | | made to all districts within a project redevelopment
area on a |
| 11 | | basis which is proportional to the current collections of |
| 12 | | revenue
which each taxing district receives from real property |
| 13 | | in the redevelopment
project area.
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| 14 | | (m) Exercise any and all other powers necessary to |
| 15 | | effectuate the purposes
of this Act.
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| 16 | | (n) If any member of the corporate authority, a member of a |
| 17 | | commission
established pursuant to Section 11-74.4-4(k) of |
| 18 | | this Act, or an employee
or consultant of the municipality |
| 19 | | involved in the planning and preparation
of a redevelopment |
| 20 | | plan, or project for a redevelopment project area or
proposed |
| 21 | | redevelopment project area, as defined in Sections |
| 22 | | 11-74.4-3(i)
through (k) of this Act, owns or controls an |
| 23 | | interest, direct or indirect,
in any property included in any |
| 24 | | redevelopment area, or proposed
redevelopment area, he or she |
| 25 | | shall disclose the same in writing to the
clerk of the |
| 26 | | municipality, and shall also so disclose the dates and terms
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| 1 | | and conditions of any disposition of any such interest, which |
| 2 | | disclosures
shall be acknowledged by the corporate authorities |
| 3 | | and entered upon the
minute books of the corporate authorities. |
| 4 | | If an individual
holds such an interest then that individual |
| 5 | | shall refrain from any further
official involvement in regard |
| 6 | | to such redevelopment plan, project or area,
from voting on any |
| 7 | | matter pertaining to such redevelopment plan, project
or area, |
| 8 | | or communicating with other members concerning corporate |
| 9 | | authorities,
commission or employees concerning any matter |
| 10 | | pertaining to said redevelopment
plan, project or area. |
| 11 | | Furthermore, no such member or employee shall acquire
of any |
| 12 | | interest direct, or indirect, in any property in a |
| 13 | | redevelopment
area or proposed redevelopment area after either |
| 14 | | (a) such individual obtains
knowledge of such plan, project or |
| 15 | | area or (b) first public notice of such
plan, project or area |
| 16 | | pursuant to Section 11-74.4-6 of this Division, whichever
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| 17 | | occurs first.
For the
purposes of this subsection, a property |
| 18 | | interest
acquired in a
single parcel of property by a member of |
| 19 | | the corporate authority, which
property
is used
exclusively as |
| 20 | | the member's primary residence, shall not be deemed to
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| 21 | | constitute an
interest in any property included in a |
| 22 | | redevelopment area or proposed
redevelopment area
that was |
| 23 | | established before December 31, 1989, but the member must |
| 24 | | disclose the
acquisition to the municipal clerk under the |
| 25 | | provisions of this subsection.
A single property interest
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| 26 | | acquired within one year after the effective date of this |
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| 1 | | amendatory Act of the 94th General Assembly or 2 years after |
| 2 | | the effective date of this amendatory Act of the 95th General |
| 3 | | Assembly by a member of the corporate authority does not
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| 4 | | constitute an
interest in any property included in any |
| 5 | | redevelopment area or proposed
redevelopment area, regardless |
| 6 | | of when the redevelopment area was established, if (i) the
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| 7 | | property
is used
exclusively as the member's primary residence, |
| 8 | | (ii) the member discloses the acquisition to the municipal |
| 9 | | clerk under the provisions of this subsection, (iii) the |
| 10 | | acquisition is for fair market value, (iv) the member acquires |
| 11 | | the property as a result of the property being publicly |
| 12 | | advertised for sale, and (v) the member refrains from voting |
| 13 | | on, and communicating with other members concerning, any matter |
| 14 | | when the benefits to the redevelopment project or area would be |
| 15 | | significantly greater than the benefits to the municipality as |
| 16 | | a whole. For the purposes of this subsection, a month-to-month |
| 17 | | leasehold interest
in a single parcel of property by a member |
| 18 | | of the corporate authority
shall not be deemed to constitute an |
| 19 | | interest in any property included in any
redevelopment area or |
| 20 | | proposed redevelopment area, but the member must disclose
the |
| 21 | | interest to the municipal clerk under the provisions of this |
| 22 | | subsection.
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| 23 | | (o) Create a Tax Increment Economic Development Advisory |
| 24 | | Committee to
be appointed by the Mayor or President of the |
| 25 | | municipality with the consent
of the majority of the governing |
| 26 | | board of the municipality, the members of
which Committee shall |
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| 1 | | be appointed for initial terms of 1, 2, 3, 4 and 5
years |
| 2 | | respectively, in such numbers as to provide that the terms of |
| 3 | | not
more than 1/3 of all such members shall expire in any one |
| 4 | | year. Their
successors shall be appointed for a term of 5 |
| 5 | | years. The Committee shall
have none of the powers enumerated |
| 6 | | in this Section. The Committee shall
serve in an advisory |
| 7 | | capacity only. The Committee may advise the governing
Board of |
| 8 | | the municipality and other municipal officials regarding
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| 9 | | development issues and opportunities within the redevelopment |
| 10 | | project area
or the area within the State Sales Tax Boundary. |
| 11 | | The Committee may also
promote and publicize development |
| 12 | | opportunities in the redevelopment
project area or the area |
| 13 | | within the State Sales Tax Boundary.
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| 14 | | (p) Municipalities may jointly undertake and perform |
| 15 | | redevelopment plans
and projects and utilize the provisions of |
| 16 | | the Act wherever they have
contiguous redevelopment project |
| 17 | | areas or they determine to adopt tax
increment financing with |
| 18 | | respect to a redevelopment project area which
includes |
| 19 | | contiguous real property within the boundaries of the
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| 20 | | municipalities, and in doing so, they may, by agreement between
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| 21 | | municipalities, issue obligations, separately or jointly, and |
| 22 | | expend
revenues received under the Act for eligible expenses |
| 23 | | anywhere within
contiguous redevelopment project areas or as |
| 24 | | otherwise permitted in the Act.
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| 25 | | (q) Utilize revenues, other than State sales tax increment |
| 26 | | revenues,
received under this Act from one redevelopment |
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| 1 | | project area for
eligible
costs in another redevelopment |
| 2 | | project area that is:
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| 3 | | (i) contiguous to the redevelopment project area from |
| 4 | | which the revenues are received; |
| 5 | | (ii) separated only by a public right of way from the |
| 6 | | redevelopment project area from which the revenues are |
| 7 | | received; or |
| 8 | | (iii) separated only by forest preserve property from |
| 9 | | the redevelopment project
area from which the revenues are |
| 10 | | received if the closest boundaries of the redevelopment |
| 11 | | project areas that are separated by the forest preserve |
| 12 | | property are less than one mile apart.
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| 13 | | Utilize tax increment revenues for eligible costs that are |
| 14 | | received from a
redevelopment project area created under the |
| 15 | | Industrial Jobs Recovery Law that
is either contiguous to, or |
| 16 | | is separated only by a public right of way from,
the |
| 17 | | redevelopment project area created under this Act which |
| 18 | | initially receives
these revenues. Utilize revenues, other |
| 19 | | than State sales tax increment
revenues, by transferring or |
| 20 | | loaning such revenues to a redevelopment project
area created |
| 21 | | under the Industrial Jobs Recovery Law that is either |
| 22 | | contiguous
to, or separated only by a public right of way from |
| 23 | | the redevelopment project
area that initially produced and |
| 24 | | received those revenues; and, if the
redevelopment
project area |
| 25 | | (i) was established before the effective date of this |
| 26 | | amendatory
Act of the 91st General Assembly and (ii) is located |
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| 1 | | within a municipality with
a population of more than 100,000,
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| 2 | | utilize revenues or proceeds of obligations authorized by |
| 3 | | Section 11-74.4-7 of
this
Act, other than use or occupation tax |
| 4 | | revenues, to pay for any redevelopment
project costs as defined |
| 5 | | by subsection (q) of Section 11-74.4-3 to the extent
that the |
| 6 | | redevelopment project costs involve public property that is |
| 7 | | either
contiguous to, or separated only by a public right of |
| 8 | | way from, a redevelopment
project area whether or not |
| 9 | | redevelopment project costs or the source of
payment for the |
| 10 | | costs are specifically set forth in the redevelopment plan for
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| 11 | | the redevelopment project area.
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| 12 | | (q-5) Utilize revenues, other than the State sales tax |
| 13 | | increment revenues, received under this Act from one |
| 14 | | redevelopment project area located within the City of Waukegan |
| 15 | | for eligible costs in another redevelopment project area |
| 16 | | located within the City of Waukegan. |
| 17 | | (r) If no redevelopment project has been initiated in a
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| 18 | | redevelopment
project area within 7 years after the area was |
| 19 | | designated by ordinance under
subsection (a), the municipality |
| 20 | | shall adopt an ordinance repealing the area's
designation as a |
| 21 | | redevelopment project area; provided, however, that if an area
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| 22 | | received its
designation more than 3 years before the effective |
| 23 | | date of this amendatory Act
of 1994 and no redevelopment |
| 24 | | project has been initiated
within 4 years after the effective |
| 25 | | date of this amendatory Act of 1994, the
municipality shall |
| 26 | | adopt an ordinance repealing its designation as a
redevelopment |
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| 1 | | project area. Initiation of a redevelopment project shall be
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| 2 | | evidenced by either a signed redevelopment agreement or |
| 3 | | expenditures on
eligible redevelopment project costs |
| 4 | | associated with a redevelopment project. |
| 5 | | Notwithstanding any other provision of this Section to the |
| 6 | | contrary, with respect to a redevelopment project area |
| 7 | | designated by an ordinance that was adopted on July 29, 1998 by |
| 8 | | the City of Chicago, the City of Chicago shall adopt an |
| 9 | | ordinance repealing the area's designation as a redevelopment |
| 10 | | project area if no redevelopment project has been initiated in |
| 11 | | the redevelopment project area within 15 years after the |
| 12 | | designation of the area. The City of Chicago may retroactively |
| 13 | | repeal any ordinance adopted by the City of Chicago, pursuant |
| 14 | | to this subsection (r), that repealed the designation of a |
| 15 | | redevelopment project area designated by an ordinance that was |
| 16 | | adopted by the City of Chicago on July 29, 1998. The City of |
| 17 | | Chicago has 90 days after the effective date of this amendatory |
| 18 | | Act to repeal the ordinance. The changes to this Section made |
| 19 | | by this amendatory Act of the 96th General Assembly apply |
| 20 | | retroactively to July 27, 2005.
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| 21 | | (Source: P.A. 96-1555, eff. 3-18-11; 97-333, eff. 8-12-11.)
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| 22 | | Section 99. Effective date. This Act takes effect upon |
| 23 | | becoming law.
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