HB 2918 — LOCAL GOVERNMENT-TECH

HB2918 EngrossedEnrolled LRB095 06283 HLH 26378 b AN ACT concerning local government.

(1) If improved, industrial, commercial, and residential buildings or improvements are detrimental to the public safety, health, or welfare because of a combination of 5 or more of the following factors, each of HB2918 EngrossedEnrolled - 2 - LRB095 06283 HLH 26378 b 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:

HB2918 EngrossedEnrolled - 3 - LRB095 06283 HLH 26378 b (D) Presence of structures below minimum code standards.

Inadequate sanitary facilities refers to the absence or inadequacy of garbage storage and enclosure, bathroom facilities, hot water and kitchens, and structural inadequacies HB2918 EngrossedEnrolled - 4 - LRB095 06283 HLH 26378 b preventing ingress and egress to and from all rooms and units within a building.

insufficient provision for light and air within or around buildings, increased threat of spread HB2918 EngrossedEnrolled - 5 - LRB095 06283 HLH 26378 b 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.

This means that the development occurred prior to the adoption by the municipality of a comprehensive or HB2918 EngrossedEnrolled - 6 - LRB095 06283 HLH 26378 b other community plan or that the plan was not followed at the time of the area’s development.

(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 municipality may reasonably find that the factor is clearly HB2918 EngrossedEnrolled - 7 - LRB095 06283 HLH 26378 b present within the intent of the Act and (ii) reasonably distributed throughout the vacant part of the redevelopment project area to which it pertains:

(E) 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 HB2918 EngrossedEnrolled - 8 - LRB095 06283 HLH 26378 b 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.

(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 of the Act and (ii) is reasonably distributed throughout HB2918 EngrossedEnrolled - 9 - LRB095 06283 HLH 26378 b the vacant part of the redevelopment project area to which it pertains:

(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 in paragraph (1) of this subsection, the area has been HB2918 EngrossedEnrolled - 10 - LRB095 06283 HLH 26378 b 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.

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 HB2918 EngrossedEnrolled - 11 - LRB095 06283 HLH 26378 b so serious and so extensive that the buildings must be removed.

The presence of buildings that are unoccupied or under-utilized and that represent an HB2918 EngrossedEnrolled - 12 - LRB095 06283 HLH 26378 b adverse influence on the area because of the frequency, extent, or duration of the vacancies.

The over-intensive use of property and the crowding of buildings and accessory HB2918 EngrossedEnrolled - 13 - LRB095 06283 HLH 26378 b facilities onto a site.

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 HB2918 EngrossedEnrolled - 14 - LRB095 06283 HLH 26378 b area’s development.

(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 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 HB2918 EngrossedEnrolled - 15 - LRB095 06283 HLH 26378 b calendar years for which information is available.

(e) "Labor surplus municipality" means a municipality in 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 HB2918 EngrossedEnrolled - 16 - LRB095 06283 HLH 26378 b published in the United States Department of Labor Bureau of Labor Statistics publication entitled "The Employment Situation" or its successor publication.

(g-1) "Revised 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 within the State Sales Tax HB2918 EngrossedEnrolled - 17 - LRB095 06283 HLH 26378 b Boundary revised pursuant to Section 11-74.4-8a(9) of this Act.

For purposes of determining the Municipal Sales Tax Increment, the Department of Revenue shall for each period subtract from the amount paid HB2918 EngrossedEnrolled - 18 - LRB095 06283 HLH 26378 b 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 every State Fiscal Year HB2918 EngrossedEnrolled - 19 - LRB095 06283 HLH 26378 b 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.

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 HB2918 EngrossedEnrolled - 20 - LRB095 06283 HLH 26378 b distribution to any other municipality and regardless of whether or not those other municipalities will receive 100% of their Net State Sales Tax Increment.

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 HB2918 EngrossedEnrolled - 21 - LRB095 06283 HLH 26378 b 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:

(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 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 HB2918 EngrossedEnrolled - 22 - LRB095 06283 HLH 26378 b financing.

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 HB2918 EngrossedEnrolled - 23 - LRB095 06283 HLH 26378 b appropriation, for 15 State Fiscal Years after the issuance of such bonds.

(n) "Redevelopment plan" means the comprehensive program HB2918 EngrossedEnrolled - 24 - LRB095 06283 HLH 26378 b 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.

(C) an assessment of any financial impact of the redevelopment project area on or any increased demand for HB2918 EngrossedEnrolled - 25 - LRB095 06283 HLH 26378 b services from any taxing district affected by the plan and any program to address such financial impact or increased demand;

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 HB2918 EngrossedEnrolled - 26 - LRB095 06283 HLH 26378 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 HB2918 EngrossedEnrolled - 27 - LRB095 06283 HLH 26378 b 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;

(A) if the ordinance was adopted before January 15, 1981, or (B) if the ordinance was adopted in December 1983, April 1984, July 1985, or December 1989, or (C) if the ordinance was adopted in December 1987 and the redevelopment project is located within one mile of Midway Airport, or HB2918 EngrossedEnrolled - 28 - LRB095 06283 HLH 26378 b (D) if the ordinance was adopted before January 1, 1987 by a municipality in Mason County, or (E) if the municipality is subject to the Local Government Financial Planning and Supervision Act or the Financially Distressed City Law, or (F) if the ordinance was adopted in December 1984 by the Village of Rosemont, or (G) 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, or (H) 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, 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 HB2918 EngrossedEnrolled - 29 - LRB095 06283 HLH 26378 b 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 HB2918 EngrossedEnrolled - 30 - LRB095 06283 HLH 26378 b (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) if the ordinance was adopted on December 15, 1981 by the City of Champaign, or (EE) if the ordinance was adopted on December 15, 1986 by the City of Urbana, or (FF) if the ordinance was adopted on December 15, 1986 by the Village of Heyworth, or (GG) if the ordinance was adopted on February 24, 1992 by the Village of Heyworth, or (HH) if the ordinance was adopted on March 16, 1995 by the Village of Heyworth, or (II) if the ordinance was adopted on December 23, 1986 by the Town of Cicero, or (JJ) if the ordinance was adopted on December 30, 1986 by the City of Effingham, or (KK) if the ordinance was adopted on May 9, 1991 by the Village of Tilton, or HB2918 EngrossedEnrolled - 31 - LRB095 06283 HLH 26378 b (LL) if the ordinance was adopted on October 20, 1986 by the City of Elmhurst, or (MM) if the ordinance was adopted on January 19, 1988 by the City of Waukegan, or (NN) if the ordinance was adopted on September 21, 1998 by the City of Waukegan, or (OO) if the ordinance was adopted on December 31, 1986 by the City of Sullivan, or (PP) if the ordinance was adopted on December 23, 1991 by the City of Sullivan, or (QQ) if the ordinance was adopted on December 31, 1986 by the City of Oglesby, or (RR) if the ordinance was adopted on July 28, 1987 by the City of Marion, or (SS) if the ordinance was adopted on April 23, 1990 by the City of Marion, or (TT) if the ordinance was adopted on August 20, 1985 by the Village of Mount Prospect, or (UU) if the ordinance was adopted on February 2, 1998 by the Village of Woodhull, or (VV) if the ordinance was adopted on April 20, 1993 by the Village of Princeville , or.

(XX) (RR) if the ordinance was adopted on February 2, 1989 by the Village of Lombard, or HB2918 EngrossedEnrolled - 32 - LRB095 06283 HLH 26378 b (YY) (VV) if the ordinance was adopted on December 29, 1986 by the Village of Gardner, or (ZZ) (VV) if the ordinance was adopted on July 14, 1999 by the Village of Paw Paw, or.

HB2918 EngrossedEnrolled - 33 - LRB095 06283 HLH 26378 b 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.

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 HB2918 EngrossedEnrolled - 34 - LRB095 06283 HLH 26378 b 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;

(5) If the redevelopment plan will not result in HB2918 EngrossedEnrolled - 35 - LRB095 06283 HLH 26378 b 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.

Part II of the housing impact study shall identify the inhabited residential units in the proposed redevelopment HB2918 EngrossedEnrolled - 36 - LRB095 06283 HLH 26378 b project area that are to be or may be removed.

(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 Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 and the regulations under HB2918 EngrossedEnrolled - 37 - LRB095 06283 HLH 26378 b that Act, including the eligibility criteria.

(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 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 HB2918 EngrossedEnrolled - 38 - LRB095 06283 HLH 26378 b 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.

(q) "Redevelopment project costs" mean and include the sum total of all reasonable or necessary costs incurred or estimated to be incurred, and any such costs incidental to a HB2918 EngrossedEnrolled - 39 - LRB095 06283 HLH 26378 b redevelopment plan and a redevelopment project.

This requirement shall be satisfied by the HB2918 EngrossedEnrolled - 40 - LRB095 06283 HLH 26378 b 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;

and the cost of replacing an existing public building if pursuant to the implementation of a redevelopment project the existing HB2918 EngrossedEnrolled - 41 - LRB095 06283 HLH 26378 b public building is to be demolished to use the site for private investment or devoted to a different use requiring private investment;