HB 3850 — TIF EXTEND-OGLESBY

HB3850 EngrossedEnrolled LRB094 11541 BDD 42516 b AN ACT concerning municipalities.

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 HB3850 EngrossedEnrolled - 2 - LRB094 11541 BDD 42516 b condition analysis determines that major repair is required or the defects are so serious and so extensive that the buildings must be removed.

HB3850 EngrossedEnrolled - 3 - LRB094 11541 BDD 42516 b 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.

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 HB3850 EngrossedEnrolled - 4 - LRB094 11541 BDD 42516 b inadequate provision for loading and service.

(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 HB3850 EngrossedEnrolled - 5 - LRB094 11541 BDD 42516 b 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.

(E) The area has incurred Illinois Environmental HB3850 EngrossedEnrolled - 6 - LRB094 11541 BDD 42516 b 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.

(C) The area, prior to its designation, is subject HB3850 EngrossedEnrolled - 7 - LRB094 11541 BDD 42516 b 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.

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 HB3850 EngrossedEnrolled - 8 - LRB094 11541 BDD 42516 b have an age of 35 years or more.

The presence of buildings that are unoccupied or under-utilized and that represent an adverse influence on the area because of the frequency, HB3850 EngrossedEnrolled - 9 - LRB094 11541 BDD 42516 b extent, or duration of the vacancies.

insufficient provision for light and air within or around buildings, increased threat of spread of HB3850 EngrossedEnrolled - 10 - LRB094 11541 BDD 42516 b 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.

(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 HB3850 EngrossedEnrolled - 11 - LRB094 11541 BDD 42516 b 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 for which information is available.

For the purpose of this subsection, if unemployment rate statistics for the municipality are not available, the unemployment rate in the HB3850 EngrossedEnrolled - 12 - LRB094 11541 BDD 42516 b municipality shall be deemed to be the same as the unemployment rate in the principal county in which the municipality is located.

For purposes of computing the aggregate amount of such taxes for base years occurring prior to 1985, the HB3850 EngrossedEnrolled - 13 - LRB094 11541 BDD 42516 b 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 of 12%.

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 HB3850 EngrossedEnrolled - 14 - LRB094 11541 BDD 42516 b 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.

30% HB3850 EngrossedEnrolled - 15 - LRB094 11541 BDD 42516 b in the State Fiscal Year 2005;

(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 HB3850 EngrossedEnrolled - 16 - LRB094 11541 BDD 42516 b 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.

HB3850 EngrossedEnrolled - 17 - LRB094 11541 BDD 42516 b Refunding of any bonds issued prior to June 1, 1988, shall not alter the revised Net State Utility Tax Increment payments set forth above.

For the purpose of this subsection, "recreational activities" is limited to mean HB3850 EngrossedEnrolled - 18 - LRB094 11541 BDD 42516 b camping and hunting.

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 HB3850 EngrossedEnrolled - 19 - LRB094 11541 BDD 42516 b 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.

Those dates shall 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 twenty-third calendar year after the year in which the ordinance approving the redevelopment project area is adopted if the ordinance was adopted on or after January 15, 1981, and not 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 thirty-fifth calendar year HB3850 EngrossedEnrolled - 20 - LRB094 11541 BDD 42516 b after the year in which the ordinance approving the redevelopment project area is adopted:

Louis, or (I) if the ordinance was adopted on November 12, 1991 by the Village of Sauget, or (J) if the ordinance was adopted on February 11, 1985 by the City of Rock Island, or (K) if the ordinance was adopted before December 18, 1986 by the City of Moline, or (L) if the ordinance was adopted in September 1988 by Sauk Village, or HB3850 EngrossedEnrolled - 21 - LRB094 11541 BDD 42516 b (M) if the ordinance was adopted in October 1993 by Sauk Village, or (N) if the ordinance was adopted on December 29, 1986 by the City of Galva, or (O) if the ordinance was adopted in March 1991 by the City of Centreville, or (P) if the ordinance was adopted on January 23, 1991 by the City of East St.

Louis, or (Q) if the ordinance was adopted on December 22, 1986 by the City of Aledo, or (R) if the ordinance was adopted on February 5, 1990 by the City of Clinton, or (S) if the ordinance was adopted on September 6, 1994 by the City of Freeport, or (T) if the ordinance was adopted on December 22, 1986 by the City of Tuscola, or (U) if the ordinance was adopted on December 23, 1986 by the City of Sparta, or (V) if the ordinance was adopted on December 23, 1986 by the City of Beardstown, or (W) if the ordinance was adopted on April 27, 1981, October 21, 1985, or December 30, 1986 by the City of Belleville, or (X) if the ordinance was adopted on December 29, 1986 by the City of Collinsville, or (Y) if the ordinance was adopted on September 14, 1994 by the City of Alton, or (Z) if the ordinance was adopted on November 11, 1996 by the City of Lexington, or (AA) if the ordinance was adopted on November 5, 1984 by the City of LeRoy, or (BB) if the ordinance was adopted on April 3, 1991 or June 3, 1992 by the City of Markham, or (CC) if the ordinance was adopted on November 11, 1986 by the City of Pekin, or (DD) (CC) if the ordinance was adopted on December HB3850 EngrossedEnrolled - 22 - LRB094 11541 BDD 42516 b 15, 1981 by the City of Champaign, or (EE) (CC) if the ordinance was adopted on December 15, 1986 by the City of Urbana, or (FF) (CC) if the ordinance was adopted on December 15, 1986 by the Village of Heyworth, or (GG) (CC) if the ordinance was adopted on February 24, 1992 by the Village of Heyworth, or (HH) (CC) if the ordinance was adopted on March 16, 1995 by the Village of Heyworth, or (II) (CC) if the ordinance was adopted on December 23, 1986 by the Town of Cicero, or (JJ) (CC) if the ordinance was adopted on December 30, 1986 by the City of Effingham, or (KK) (CC) if the ordinance was adopted on May 9, 1991 by the Village of Tilton, or (LL) (CC) if the ordinance was adopted on October 20, 1986 by the City of Elmhurst, or (MM) (CC) if the ordinance was adopted on January 19, 1988 by the City of Waukegan, or (NN) (DD) if the ordinance was adopted on September 21, 1998 by the City of Waukegan, or.

The extension allowed by this amendatory Act of 1993 shall not apply to real property tax increment allocation financing under HB3850 EngrossedEnrolled - 23 - LRB094 11541 BDD 42516 b Section 11-74.4-8.

HB3850 EngrossedEnrolled - 24 - LRB094 11541 BDD 42516 b (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.

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 HB3850 EngrossedEnrolled - 25 - LRB094 11541 BDD 42516 b and ethnic composition of the residents in the inhabited residential units.

For purposes of this paragraph (7), "low-income HB3850 EngrossedEnrolled - 26 - LRB094 11541 BDD 42516 b households", "very low-income households", and "affordable housing" have the meanings set forth in the Illinois Affordable Housing Act.

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 HB3850 EngrossedEnrolled - 27 - LRB094 11541 BDD 42516 b within 5 years prior to the adoption of the redevelopment plan.

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 HB3850 EngrossedEnrolled - 28 - LRB094 11541 BDD 42516 b area with respect to which the consultant or advisor has performed, or will be performing, service for the municipality.

(4) Costs of the construction of public works or improvements, except that on and after November 1, 1999, redevelopment project costs shall not include the cost of constructing a new municipal public building principally HB3850 EngrossedEnrolled - 29 - LRB094 11541 BDD 42516 b 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;

(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) HB3850 EngrossedEnrolled - 30 - LRB094 11541 BDD 42516 b 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:

(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 HB3850 EngrossedEnrolled - 31 - LRB094 11541 BDD 42516 b increment finance assistance under this Act;

(i) for unit school districts, no more than 40% of the total amount of property tax increment HB3850 EngrossedEnrolled - 32 - LRB094 11541 BDD 42516 b revenue produced by those housing units that have received tax increment finance assistance under this Act;

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 HB3850 EngrossedEnrolled - 33 - LRB094 11541 BDD 42516 b district.

The amount paid to a library district under this paragraph (7.7) shall be calculated by multiplying (i) the HB3850 EngrossedEnrolled - 34 - LRB094 11541 BDD 42516 b 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.

Library districts may adopt a resolution waiving the HB3850 EngrossedEnrolled - 35 - LRB094 11541 BDD 42516 b right to all or a portion of the reimbursement otherwise required by this paragraph (7.7).

HB3850 EngrossedEnrolled - 36 - LRB094 11541 BDD 42516 b (11) Interest cost incurred by a redeveloper related to the construction, renovation or rehabilitation of a redevelopment project provided that:

(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 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 HB3850 EngrossedEnrolled - 37 - LRB094 11541 BDD 42516 b low-income households as defined in Section 3 of the Illinois Affordable Housing Act.

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 HB3850 EngrossedEnrolled - 38 - LRB094 11541 BDD 42516 b units.

(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 HB3850 EngrossedEnrolled - 39 - LRB094 11541 BDD 42516 b terminating operations at another Illinois location within 10 miles of the redevelopment project area but outside the boundaries of the redevelopment project area municipality.

(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 portion of such increase that is paid into the State and Local HB3850 EngrossedEnrolled - 40 - LRB094 11541 BDD 42516 b 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.