SB 833 — LOCAL GOVERNMENT-TECH

SB0833 EngrossedEnrolled LRB094 04449 MKM 34478 b AN ACT concerning local government.

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 SB0833 EngrossedEnrolled - 2 - LRB094 04449 MKM 34478 b condition analysis determines that major repair is required or the defects are so serious and so extensive that the buildings must be removed.

SB0833 EngrossedEnrolled - 3 - LRB094 04449 MKM 34478 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 SB0833 EngrossedEnrolled - 4 - LRB094 04449 MKM 34478 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 SB0833 EngrossedEnrolled - 5 - LRB094 04449 MKM 34478 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 SB0833 EngrossedEnrolled - 6 - LRB094 04449 MKM 34478 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 SB0833 EngrossedEnrolled - 7 - LRB094 04449 MKM 34478 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 SB0833 EngrossedEnrolled - 8 - LRB094 04449 MKM 34478 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, SB0833 EngrossedEnrolled - 9 - LRB094 04449 MKM 34478 b extent, or duration of the vacancies.

insufficient provision for light and air within or around buildings, increased threat of spread of SB0833 EngrossedEnrolled - 10 - LRB094 04449 MKM 34478 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 SB0833 EngrossedEnrolled - 11 - LRB094 04449 MKM 34478 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 SB0833 EngrossedEnrolled - 12 - LRB094 04449 MKM 34478 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 SB0833 EngrossedEnrolled - 13 - LRB094 04449 MKM 34478 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 SB0833 EngrossedEnrolled - 14 - LRB094 04449 MKM 34478 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% SB0833 EngrossedEnrolled - 15 - LRB094 04449 MKM 34478 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 SB0833 EngrossedEnrolled - 16 - LRB094 04449 MKM 34478 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.

SB0833 EngrossedEnrolled - 17 - LRB094 04449 MKM 34478 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 SB0833 EngrossedEnrolled - 18 - LRB094 04449 MKM 34478 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 SB0833 EngrossedEnrolled - 19 - LRB094 04449 MKM 34478 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.

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 thirty-third calendar year SB0833 EngrossedEnrolled - 20 - LRB094 04449 MKM 34478 b after the year in which the ordinance approving the redevelopment project area if the ordinance was adopted on May 20, 1985 by the Village of Wheeling;, and 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 thirty-fifth calendar year 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, SB0833 EngrossedEnrolled - 21 - LRB094 04449 MKM 34478 b 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 (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 SB0833 EngrossedEnrolled - 22 - LRB094 04449 MKM 34478 b (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 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.

The SB0833 EngrossedEnrolled - 23 - LRB094 04449 MKM 34478 b termination procedures of subsection (b) of Section 11-74.4-8 are not required for these redevelopment project areas in 2009 but are required in 2013.

provided that the municipality elects to extend the life of the redevelopment project area to 35 SB0833 EngrossedEnrolled - 24 - LRB094 04449 MKM 34478 b 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.

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 SB0833 EngrossedEnrolled - 25 - LRB094 04449 MKM 34478 b 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.

(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 less than that which would be provided under the federal SB0833 EngrossedEnrolled - 26 - LRB094 04449 MKM 34478 b Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 and the regulations under that Act, including the eligibility criteria.

On and after November 1, 1999 (the effective date of Public Act 91-478), no redevelopment plan may SB0833 EngrossedEnrolled - 27 - LRB094 04449 MKM 34478 b 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.

After consultation with the municipality, each tax increment consultant or advisor to a municipality that plans to designate or has designated a SB0833 EngrossedEnrolled - 28 - LRB094 04449 MKM 34478 b 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.

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 SB0833 EngrossedEnrolled - 29 - LRB094 04449 MKM 34478 b private investment;

(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 SB0833 EngrossedEnrolled - 30 - LRB094 04449 MKM 34478 b taxing district in furtherance of the objectives of the redevelopment plan and project.

SB0833 EngrossedEnrolled - 31 - LRB094 04449 MKM 34478 b (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;

(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 cost as defined in Section 10-20.12a of the School Code less any increase in general state aid as defined in SB0833 EngrossedEnrolled - 32 - LRB094 04449 MKM 34478 b Section 18-8.05 of the School Code attributable to these added new students subject to the following annual limitations:

Any school district seeking payment under this SB0833 EngrossedEnrolled - 33 - LRB094 04449 MKM 34478 b 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.

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 SB0833 EngrossedEnrolled - 34 - LRB094 04449 MKM 34478 b Limitation Law but the district is prohibited by any other law from increasing its tax levy rate without a prior voter referendum.

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 SB0833 EngrossedEnrolled - 35 - LRB094 04449 MKM 34478 b municipality shall be required to approve or make the payment to the library district.

SB0833 EngrossedEnrolled - 36 - LRB094 04449 MKM 34478 b 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;

(F) Instead of the eligible costs provided by subparagraphs (B) and (D) of paragraph (11), as SB0833 EngrossedEnrolled - 37 - LRB094 04449 MKM 34478 b 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 low-income households as defined in Section 3 of the Illinois Affordable Housing Act.

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 SB0833 EngrossedEnrolled - 38 - LRB094 04449 MKM 34478 b Housing Act, shall be that of the then current owner of the property.

(13) After November 1, 1999 (the effective date of SB0833 EngrossedEnrolled - 39 - LRB094 04449 MKM 34478 b 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.

(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 SB0833 EngrossedEnrolled - 40 - LRB094 04449 MKM 34478 b 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 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.