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HB4335 • 2026

TIF-VETERAN ORGANIZATIONS

TIF-VETERAN ORGANIZATIONS

Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor
Kevin Schmidt
Last action
2026-03-27
Official status
Rule 19(a) / Re-referred to Rules Committee
Effective date
Not listed

Plain English Breakdown

Using official source text because the generated explanation was unavailable or could not be confirmed against the official bill text.

TIF-VETERAN ORGANIZATIONS

TIF-VETERAN ORGANIZATIONS

What This Bill Does

  • TIF-VETERAN ORGANIZATIONS

Limits and Unknowns

  • This entry is temporarily using official source text because the generated explanation could not be confirmed against the official bill text during the last sync.

Bill History

  1. 2026-03-27 Illinois General Assembly

    Rule 19(a) / Re-referred to Rules Committee

  2. 2026-02-26 Illinois General Assembly

    To Tax Policy: Other Taxes Subcommittee

  3. 2026-02-11 Illinois General Assembly

    Assigned to Revenue & Finance Committee

  4. 2026-01-14 Illinois General Assembly

    First Reading

  5. 2026-01-14 Illinois General Assembly

    Referred to Rules Committee

  6. 2026-01-07 Illinois General Assembly

    Filed with the Clerk by Rep. Kevin Schmidt

Official Summary Text

TIF-VETERAN ORGANIZATIONS

Current Bill Text

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Illinois General Assembly - Full Text of HB4335

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Introduced

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104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026
HB4335

Introduced 1/14/2026, by Rep. Kevin Schmidt

SYNOPSIS AS INTRODUCED:

65 ILCS 5/11-74.4-3

from Ch. 24, par. 11-74.4-3

Amends the Tax Increment Allocation Redevelopment Act in the Illinois
Municipal Code. Provides that "redevelopment project costs" includes,
among other things, costs of operations, infrastructure, and programming
of not-for-profit veterans and military organizations located within the
redevelopment project area, including organizations designated as
tax-exempt organizations under Section 501(c)(19) of the federal Internal
Revenue Code.
LRB104 17075 RTM 30492 b

A BILL FOR

HB4335
LRB104 17075 RTM 30492 b
1

AN ACT concerning local government.

2

Be it enacted by the People of the State of Illinois,
3
represented in the General Assembly:

4

Section 5.
The Illinois Municipal Code is amended by
5
changing Section 11-74.4-3 as follows:

6

(65 ILCS 5/11-74.4-3)

(from Ch. 24, par. 11-74.4-3)
7

Sec. 11-74.4-3.
Definitions.
The following terms, wherever
8
used or referred to in this Division 74.4 shall have the
9
following respective meanings, unless in any case a different
10
meaning clearly appears from the context.
11

(a) For any redevelopment project area that has been
12
designated pursuant to this Section by an ordinance adopted
13
prior to November 1, 1999 (the effective date of Public Act
14
91-478), "blighted area" shall have the meaning set forth in
15
this Section prior to that date.
16

On and after November 1, 1999, "blighted area" means any
17
improved or vacant area within the boundaries of a
18
redevelopment project area located within the territorial
19
limits of the municipality where:
20

(1) If improved, industrial, commercial, and
21

residential buildings or improvements are detrimental to
22

the public safety, health, or welfare because of a
23

combination of 5 or more of the following factors, each of

HB4335
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LRB104 17075 RTM 30492 b
1

which is (i) present, with that presence documented, to a
2

meaningful extent so that a municipality may reasonably
3

find that the factor is clearly present within the intent
4

of the Act and (ii) reasonably distributed throughout the
5

improved part of the redevelopment project area:
6

(A) Dilapidation. An advanced state of disrepair
7

or neglect of necessary repairs to the primary
8

structural components of buildings or improvements in
9

such a combination that a documented building
10

condition analysis determines that major repair is
11

required or the defects are so serious and so
12

extensive that the buildings must be removed.
13

(B) Obsolescence. The condition or process of
14

falling into disuse. Structures have become ill-suited
15

for the original use.
16

(C) Deterioration. With respect to buildings,
17

defects including, but not limited to, major defects
18

in the secondary building components such as doors,
19

windows, porches, gutters and downspouts, and fascia.
20

With respect to surface improvements, that the
21

condition of roadways, alleys, curbs, gutters,
22

sidewalks, off-street parking, and surface storage
23

areas evidence deterioration, including, but not
24

limited to, surface cracking, crumbling, potholes,
25

depressions, loose paving material, and weeds
26

protruding through paved surfaces.

HB4335
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LRB104 17075 RTM 30492 b
1

(D) Presence of structures below minimum code
2

standards. All structures that do not meet the
3

standards of zoning, subdivision, building, fire, and
4

other governmental codes applicable to property, but
5

not including housing and property maintenance codes.
6

(E) Illegal use of individual structures. The use
7

of structures in violation of applicable federal,
8

State, or local laws, exclusive of those applicable to
9

the presence of structures below minimum code
10

standards.
11

(F) Excessive vacancies. The presence of buildings
12

that are unoccupied or under-utilized and that
13

represent an adverse influence on the area because of
14

the frequency, extent, or duration of the vacancies.
15

(G) Lack of ventilation, light, or sanitary
16

facilities. The absence of adequate ventilation for
17

light or air circulation in spaces or rooms without
18

windows, or that require the removal of dust, odor,
19

gas, smoke, or other noxious airborne materials.
20

Inadequate natural light and ventilation means the
21

absence of skylights or windows for interior spaces or
22

rooms and improper window sizes and amounts by room
23

area to window area ratios. Inadequate sanitary
24

facilities refers to the absence or inadequacy of
25

garbage storage and enclosure, bathroom facilities,
26

hot water and kitchens, and structural inadequacies

HB4335
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LRB104 17075 RTM 30492 b
1

preventing ingress and egress to and from all rooms
2

and units within a building.
3

(H) Inadequate utilities. Underground and overhead
4

utilities such as storm sewers and storm drainage,
5

sanitary sewers, water lines, and gas, telephone, and
6

electrical services that are shown to be inadequate.
7

Inadequate utilities are those that are: (i) of
8

insufficient capacity to serve the uses in the
9

redevelopment project area, (ii) deteriorated,
10

antiquated, obsolete, or in disrepair, or (iii)
11

lacking within the redevelopment project area.
12

(I) Excessive land coverage and overcrowding of
13

structures and community facilities. The
14

over-intensive use of property and the crowding of
15

buildings and accessory facilities onto a site.
16

Examples of problem conditions warranting the
17

designation of an area as one exhibiting excessive
18

land coverage are: (i) the presence of buildings
19

either improperly situated on parcels or located on
20

parcels of inadequate size and shape in relation to
21

present-day standards of development for health and
22

safety and (ii) the presence of multiple buildings on
23

a single parcel. For there to be a finding of excessive
24

land coverage, these parcels must exhibit one or more
25

of the following conditions: insufficient provision
26

for light and air within or around buildings,

HB4335
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LRB104 17075 RTM 30492 b
1

increased threat of spread of fire due to the close
2

proximity of buildings, lack of adequate or proper
3

access to a public right-of-way, lack of reasonably
4

required off-street parking, or inadequate provision
5

for loading and service.
6

(J) Deleterious land use or layout. The existence
7

of incompatible land-use relationships, buildings
8

occupied by inappropriate mixed-uses, or uses
9

considered to be noxious, offensive, or unsuitable for
10

the surrounding area.
11

(K) Environmental clean-up. The proposed
12

redevelopment project area has incurred Illinois
13

Environmental Protection Agency or United States
14

Environmental Protection Agency remediation costs for,
15

or a study conducted by an independent consultant
16

recognized as having expertise in environmental
17

remediation has determined a need for, the clean-up of
18

hazardous waste, hazardous substances, or underground
19

storage tanks required by State or federal law,
20

provided that the remediation costs constitute a
21

material impediment to the development or
22

redevelopment of the redevelopment project area.
23

(L) Lack of community planning. The proposed
24

redevelopment project area was developed prior to or
25

without the benefit or guidance of a community plan.
26

This means that the development occurred prior to the

HB4335
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LRB104 17075 RTM 30492 b
1

adoption by the municipality of a comprehensive or
2

other community plan or that the plan was not followed
3

at the time of the area's development. This factor
4

must be documented by evidence of adverse or
5

incompatible land-use relationships, inadequate street
6

layout, improper subdivision, parcels of inadequate
7

shape and size to meet contemporary development
8

standards, or other evidence demonstrating an absence
9

of effective community planning.
10

(M) The total equalized assessed value of the
11

proposed redevelopment project area has declined for 3
12

of the last 5 calendar years prior to the year in which
13

the redevelopment project area is designated or is
14

increasing at an annual rate that is less than the
15

balance of the municipality for 3 of the last 5
16

calendar years for which information is available or
17

is increasing at an annual rate that is less than the
18

Consumer Price Index for All Urban Consumers published
19

by the United States Department of Labor or successor
20

agency for 3 of the last 5 calendar years prior to the
21

year in which the redevelopment project area is
22

designated.
23

(2) If vacant, the sound growth of the redevelopment
24

project area is impaired by a combination of 2 or more of
25

the following factors, each of which is (i) present, with
26

that presence documented, to a meaningful extent so that a

HB4335
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LRB104 17075 RTM 30492 b
1

municipality may reasonably find that the factor is
2

clearly present within the intent of the Act and (ii)
3

reasonably distributed throughout the vacant part of the
4

redevelopment project area to which it pertains:
5

(A) Obsolete platting of vacant land that results
6

in parcels of limited or narrow size or configurations
7

of parcels of irregular size or shape that would be
8

difficult to develop on a planned basis and in a manner
9

compatible with contemporary standards and
10

requirements, or platting that failed to create
11

rights-of-ways for streets or alleys or that created
12

inadequate right-of-way widths for streets, alleys, or
13

other public rights-of-way or that omitted easements
14

for public utilities.
15

(B) Diversity of ownership of parcels of vacant
16

land sufficient in number to retard or impede the
17

ability to assemble the land for development.
18

(C) Tax and special assessment delinquencies exist
19

or the property has been the subject of tax sales under
20

the Property Tax Code within the last 5 years.
21

(D) Deterioration of structures or site
22

improvements in neighboring areas adjacent to the
23

vacant land.
24

(E) The area has incurred Illinois Environmental
25

Protection Agency or United States Environmental
26

Protection Agency remediation costs for, or a study

HB4335
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LRB104 17075 RTM 30492 b
1

conducted by an independent consultant recognized as
2

having expertise in environmental remediation has
3

determined a need for, the clean-up of hazardous
4

waste, hazardous substances, or underground storage
5

tanks required by State or federal law, provided that
6

the remediation costs constitute a material impediment
7

to the development or redevelopment of the
8

redevelopment project area.
9

(F) The total equalized assessed value of the
10

proposed redevelopment project area has declined for 3
11

of the last 5 calendar years prior to the year in which
12

the redevelopment project area is designated or is
13

increasing at an annual rate that is less than the
14

balance of the municipality for 3 of the last 5
15

calendar years for which information is available or
16

is increasing at an annual rate that is less than the
17

Consumer Price Index for All Urban Consumers published
18

by the United States Department of Labor or successor
19

agency for 3 of the last 5 calendar years prior to the
20

year in which the redevelopment project area is
21

designated.
22

(3) If vacant, the sound growth of the redevelopment
23

project area is impaired by one of the following factors
24

that (i) is present, with that presence documented, to a
25

meaningful extent so that a municipality may reasonably
26

find that the factor is clearly present within the intent

HB4335
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LRB104 17075 RTM 30492 b
1

of the Act and (ii) is reasonably distributed throughout
2

the vacant part of the redevelopment project area to which
3

it pertains:
4

(A) The area consists of one or more unused
5

quarries, mines, or strip mine ponds.
6

(B) The area consists of unused rail yards, rail
7

tracks, or railroad rights-of-way.
8

(C) The area, prior to its designation, is subject
9

to (i) chronic flooding that adversely impacts on real
10

property in the area as certified by a registered
11

professional engineer or appropriate regulatory agency
12

or (ii) surface water that discharges from all or a
13

part of the area and contributes to flooding within
14

the same watershed, but only if the redevelopment
15

project provides for facilities or improvements to
16

contribute to the alleviation of all or part of the
17

flooding.
18

(D) The area consists of an unused or illegal
19

disposal site containing earth, stone, building
20

debris, or similar materials that were removed from
21

construction, demolition, excavation, or dredge sites.
22

(E) Prior to November 1, 1999, the area is not less
23

than 50 nor more than 100 acres and 75% of which is
24

vacant (notwithstanding that the area has been used
25

for commercial agricultural purposes within 5 years
26

prior to the designation of the redevelopment project

HB4335
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LRB104 17075 RTM 30492 b
1

area), and the area meets at least one of the factors
2

itemized in paragraph (1) of this subsection, the area
3

has been designated as a town or village center by
4

ordinance or comprehensive plan adopted prior to
5

January 1, 1982, and the area has not been developed
6

for that designated purpose.
7

(F) The area qualified as a blighted improved area
8

immediately prior to becoming vacant, unless there has
9

been substantial private investment in the immediately
10

surrounding area.
11

(b) For any redevelopment project area that has been
12
designated pursuant to this Section by an ordinance adopted
13
prior to November 1, 1999 (the effective date of Public Act
14
91-478), "conservation area" shall have the meaning set forth
15
in this Section prior to that date.
16

On and after November 1, 1999, "conservation area" means
17
any improved area within the boundaries of a redevelopment
18
project area located within the territorial limits of the
19
municipality in which 50% or more of the structures in the area
20
have an age of 35 years or more. Such an area is not yet a
21
blighted area but because of a combination of 3 or more of the
22
following factors is detrimental to the public safety, health,
23
morals or welfare and such an area may become a blighted area:
24

(1) Dilapidation. An advanced state of disrepair or
25

neglect of necessary repairs to the primary structural
26

components of buildings or improvements in such a

HB4335
- 11 -
LRB104 17075 RTM 30492 b
1

combination that a documented building condition analysis
2

determines that major repair is required or the defects
3

are so serious and so extensive that the buildings must be
4

removed.
5

(2) Obsolescence. The condition or process of falling
6

into disuse. Structures have become ill-suited for the
7

original use.
8

(3) Deterioration. With respect to buildings, defects
9

including, but not limited to, major defects in the
10

secondary building components such as doors, windows,
11

porches, gutters and downspouts, and fascia. With respect
12

to surface improvements, that the condition of roadways,
13

alleys, curbs, gutters, sidewalks, off-street parking, and
14

surface storage areas evidence deterioration, including,
15

but not limited to, surface cracking, crumbling, potholes,
16

depressions, loose paving material, and weeds protruding
17

through paved surfaces.
18

(4) Presence of structures below minimum code
19

standards. All structures that do not meet the standards
20

of zoning, subdivision, building, fire, and other
21

governmental codes applicable to property, but not
22

including housing and property maintenance codes.
23

(5) Illegal use of individual structures. The use of
24

structures in violation of applicable federal, State, or
25

local laws, exclusive of those applicable to the presence
26

of structures below minimum code standards.

HB4335
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LRB104 17075 RTM 30492 b
1

(6) Excessive vacancies. The presence of buildings
2

that are unoccupied or under-utilized and that represent
3

an adverse influence on the area because of the frequency,
4

extent, or duration of the vacancies.
5

(7) Lack of ventilation, light, or sanitary
6

facilities. The absence of adequate ventilation for light
7

or air circulation in spaces or rooms without windows, or
8

that require the removal of dust, odor, gas, smoke, or
9

other noxious airborne materials. Inadequate natural light
10

and ventilation means the absence or inadequacy of
11

skylights or windows for interior spaces or rooms and
12

improper window sizes and amounts by room area to window
13

area ratios. Inadequate sanitary facilities refers to the
14

absence or inadequacy of garbage storage and enclosure,
15

bathroom facilities, hot water and kitchens, and
16

structural inadequacies preventing ingress and egress to
17

and from all rooms and units within a building.
18

(8) Inadequate utilities. Underground and overhead
19

utilities such as storm sewers and storm drainage,
20

sanitary sewers, water lines, and gas, telephone, and
21

electrical services that are shown to be inadequate.
22

Inadequate utilities are those that are: (i) of
23

insufficient capacity to serve the uses in the
24

redevelopment project area, (ii) deteriorated, antiquated,
25

obsolete, or in disrepair, or (iii) lacking within the
26

redevelopment project area.

HB4335
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LRB104 17075 RTM 30492 b
1

(9) Excessive land coverage and overcrowding of
2

structures and community facilities. The over-intensive
3

use of property and the crowding of buildings and
4

accessory facilities onto a site. Examples of problem
5

conditions warranting the designation of an area as one
6

exhibiting excessive land coverage are: the presence of
7

buildings either improperly situated on parcels or located
8

on parcels of inadequate size and shape in relation to
9

present-day standards of development for health and safety
10

and the presence of multiple buildings on a single parcel.
11

For there to be a finding of excessive land coverage,
12

these parcels must exhibit one or more of the following
13

conditions: insufficient provision for light and air
14

within or around buildings, increased threat of spread of
15

fire due to the close proximity of buildings, lack of
16

adequate or proper access to a public right-of-way, lack
17

of reasonably required off-street parking, or inadequate
18

provision for loading and service.
19

(10) Deleterious land use or layout. The existence of
20

incompatible land-use relationships, buildings occupied by
21

inappropriate mixed-uses, or uses considered to be
22

noxious, offensive, or unsuitable for the surrounding
23

area.
24

(11) Lack of community planning. The proposed
25

redevelopment project area was developed prior to or
26

without the benefit or guidance of a community plan. This

HB4335
- 14 -
LRB104 17075 RTM 30492 b
1

means that the development occurred prior to the adoption
2

by the municipality of a comprehensive or other community
3

plan or that the plan was not followed at the time of the
4

area's development. This factor must be documented by
5

evidence of adverse or incompatible land-use
6

relationships, inadequate street layout, improper
7

subdivision, parcels of inadequate shape and size to meet
8

contemporary development standards, or other evidence
9

demonstrating an absence of effective community planning.
10

(12) The area has incurred Illinois Environmental
11

Protection Agency or United States Environmental
12

Protection Agency remediation costs for, or a study
13

conducted by an independent consultant recognized as
14

having expertise in environmental remediation has
15

determined a need for, the clean-up of hazardous waste,
16

hazardous substances, or underground storage tanks
17

required by State or federal law, provided that the
18

remediation costs constitute a material impediment to the
19

development or redevelopment of the redevelopment project
20

area.
21

(13) The total equalized assessed value of the
22

proposed redevelopment project area has declined for 3 of
23

the last 5 calendar years for which information is
24

available or is increasing at an annual rate that is less
25

than the balance of the municipality for 3 of the last 5
26

calendar years for which information is available or is

HB4335
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LRB104 17075 RTM 30492 b
1

increasing at an annual rate that is less than the
2

Consumer Price Index for All Urban Consumers published by
3

the United States Department of Labor or successor agency
4

for 3 of the last 5 calendar years for which information is
5

available.
6

(c) "Industrial park" means an area in a blighted or
7
conservation area suitable for use by any manufacturing,
8
industrial, research or transportation enterprise, of
9
facilities to include but not be limited to factories, mills,
10
processing plants, assembly plants, packing plants,
11
fabricating plants, industrial distribution centers,
12
warehouses, repair overhaul or service facilities, freight
13
terminals, research facilities, test facilities or railroad
14
facilities.
15

(d) "Industrial park conservation area" means an area
16
within the boundaries of a redevelopment project area located
17
within the territorial limits of a municipality that is a
18
labor surplus municipality or within 1 1/2 miles of the
19
territorial limits of a municipality that is a labor surplus
20
municipality if the area is annexed to the municipality; which
21
area is zoned as industrial no later than at the time the
22
municipality by ordinance designates the redevelopment project
23
area, and which area includes both vacant land suitable for
24
use as an industrial park and a blighted area or conservation
25
area contiguous to such vacant land.
26

(e) "Labor surplus municipality" means a municipality in

HB4335
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LRB104 17075 RTM 30492 b
1
which, at any time during the 6 months before the municipality
2
by ordinance designates an industrial park conservation area,
3
the unemployment rate was over 6% and was also 100% or more of
4
the national average unemployment rate for that same time as
5
published in the United States Department of Labor Bureau of
6
Labor Statistics publication entitled "The Employment
7
Situation" or its successor publication. For the purpose of
8
this subsection, if unemployment rate statistics for the
9
municipality are not available, the unemployment rate in the
10
municipality shall be deemed to be the same as the
11
unemployment rate in the principal county in which the
12
municipality is located.
13

(f) "Municipality" shall mean a city, village,
14
incorporated town, or a township that is located in the
15
unincorporated portion of a county with 3 million or more
16
inhabitants, if the county adopted an ordinance that approved
17
the township's redevelopment plan.
18

(g) "Initial Sales Tax Amounts" means the amount of taxes
19
paid under the Retailers' Occupation Tax Act, Use Tax Act,
20
Service Use Tax Act, the Service Occupation Tax Act, the
21
Municipal Retailers' Occupation Tax Act, and the Municipal
22
Service Occupation Tax Act by retailers and servicemen on
23
transactions at places located in a State Sales Tax Boundary
24
during the calendar year 1985.
25

(g-1) "Revised Initial Sales Tax Amounts" means the amount
26
of taxes paid under the Retailers' Occupation Tax Act, Use Tax

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Act, Service Use Tax Act, the Service Occupation Tax Act, the
2
Municipal Retailers' Occupation Tax Act, and the Municipal
3
Service Occupation Tax Act by retailers and servicemen on
4
transactions at places located within the State Sales Tax
5
Boundary revised pursuant to Section 11-74.4-8a(9) of this
6
Act.
7

(h) "Municipal Sales Tax Increment" means an amount equal
8
to the increase in the aggregate amount of taxes paid to a
9
municipality from the Local Government Tax Fund arising from
10
sales by retailers and servicemen within the redevelopment
11
project area or State Sales Tax Boundary, as the case may be,
12
for as long as the redevelopment project area or State Sales
13
Tax Boundary, as the case may be, exist over and above the
14
aggregate amount of taxes as certified by the Illinois
15
Department of Revenue and paid under the Municipal Retailers'
16
Occupation Tax Act and the Municipal Service Occupation Tax
17
Act by retailers and servicemen, on transactions at places of
18
business located in the redevelopment project area or State
19
Sales Tax Boundary, as the case may be, during the base year
20
which shall be the calendar year immediately prior to the year
21
in which the municipality adopted tax increment allocation
22
financing. For purposes of computing the aggregate amount of
23
such taxes for base years occurring prior to 1985, the
24
Department of Revenue shall determine the Initial Sales Tax
25
Amounts for such taxes and deduct therefrom an amount equal to
26
4% of the aggregate amount of taxes per year for each year the

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base year is prior to 1985, but not to exceed a total deduction
2
of 12%. The amount so determined shall be known as the
3
"Adjusted Initial Sales Tax Amounts". For purposes of
4
determining the Municipal Sales Tax Increment, the Department
5
of Revenue shall for each period subtract from the amount paid
6
to the municipality from the Local Government Tax Fund arising
7
from sales by retailers and servicemen on transactions located
8
in the redevelopment project area or the State Sales Tax
9
Boundary, as the case may be, the certified Initial Sales Tax
10
Amounts, the Adjusted Initial Sales Tax Amounts or the Revised
11
Initial Sales Tax Amounts for the Municipal Retailers'
12
Occupation Tax Act and the Municipal Service Occupation Tax
13
Act. For the State Fiscal Year 1989, this calculation shall be
14
made by utilizing the calendar year 1987 to determine the tax
15
amounts received. For the State Fiscal Year 1990, this
16
calculation shall be made by utilizing the period from January
17
1, 1988, until September 30, 1988, to determine the tax
18
amounts received from retailers and servicemen pursuant to the
19
Municipal Retailers' Occupation Tax and the Municipal Service
20
Occupation Tax Act, which shall have deducted therefrom
21
nine-twelfths of the certified Initial Sales Tax Amounts, the
22
Adjusted Initial Sales Tax Amounts or the Revised Initial
23
Sales Tax Amounts as appropriate. For the State Fiscal Year
24
1991, this calculation shall be made by utilizing the period
25
from October 1, 1988, to June 30, 1989, to determine the tax
26
amounts received from retailers and servicemen pursuant to the

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Municipal Retailers' Occupation Tax and the Municipal Service
2
Occupation Tax Act which shall have deducted therefrom
3
nine-twelfths of the certified Initial Sales Tax Amounts,
4
Adjusted Initial Sales Tax Amounts or the Revised Initial
5
Sales Tax Amounts as appropriate. For every State Fiscal Year
6
thereafter, the applicable period shall be the 12 months
7
beginning July 1 and ending June 30 to determine the tax
8
amounts received which shall have deducted therefrom the
9
certified Initial Sales Tax Amounts, the Adjusted Initial
10
Sales Tax Amounts or the Revised Initial Sales Tax Amounts, as
11
the case may be.
12

(i) "Net State Sales Tax Increment" means the sum of the
13
following: (a) 80% of the first $100,000 of State Sales Tax
14
Increment annually generated within a State Sales Tax
15
Boundary; (b) 60% of the amount in excess of $100,000 but not
16
exceeding $500,000 of State Sales Tax Increment annually
17
generated within a State Sales Tax Boundary; and (c) 40% of all
18
amounts in excess of $500,000 of State Sales Tax Increment
19
annually generated within a State Sales Tax Boundary. If,
20
however, a municipality established a tax increment financing
21
district in a county with a population in excess of 3,000,000
22
before January 1, 1986, and the municipality entered into a
23
contract or issued bonds after January 1, 1986, but before
24
December 31, 1986, to finance redevelopment project costs
25
within a State Sales Tax Boundary, then the Net State Sales Tax
26
Increment means, for the fiscal years beginning July 1, 1990,

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and July 1, 1991, 100% of the State Sales Tax Increment
2
annually generated within a State Sales Tax Boundary; and
3
notwithstanding any other provision of this Act, for those
4
fiscal years the Department of Revenue shall distribute to
5
those municipalities 100% of their Net State Sales Tax
6
Increment before any distribution to any other municipality
7
and regardless of whether or not those other municipalities
8
will receive 100% of their Net State Sales Tax Increment. For
9
Fiscal Year 1999, and every year thereafter until the year
10
2007, for any municipality that has not entered into a
11
contract or has not issued bonds prior to June 1, 1988 to
12
finance redevelopment project costs within a State Sales Tax
13
Boundary, the Net State Sales Tax Increment shall be
14
calculated as follows: By multiplying the Net State Sales Tax
15
Increment by 90% in the State Fiscal Year 1999; 80% in the
16
State Fiscal Year 2000; 70% in the State Fiscal Year 2001; 60%
17
in the State Fiscal Year 2002; 50% in the State Fiscal Year
18
2003; 40% in the State Fiscal Year 2004; 30% in the State
19
Fiscal Year 2005; 20% in the State Fiscal Year 2006; and 10% in
20
the State Fiscal Year 2007. No payment shall be made for State
21
Fiscal Year 2008 and thereafter.
22

Municipalities that issued bonds in connection with a
23
redevelopment project in a redevelopment project area within
24
the State Sales Tax Boundary prior to July 29, 1991, or that
25
entered into contracts in connection with a redevelopment
26
project in a redevelopment project area before June 1, 1988,

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shall continue to receive their proportional share of the
2
Illinois Tax Increment Fund distribution until the date on
3
which the redevelopment project is completed or terminated.
4
If, however, a municipality that issued bonds in connection
5
with a redevelopment project in a redevelopment project area
6
within the State Sales Tax Boundary prior to July 29, 1991
7
retires the bonds prior to June 30, 2007 or a municipality that
8
entered into contracts in connection with a redevelopment
9
project in a redevelopment project area before June 1, 1988
10
completes the contracts prior to June 30, 2007, then so long as
11
the redevelopment project is not completed or is not
12
terminated, the Net State Sales Tax Increment shall be
13
calculated, beginning on the date on which the bonds are
14
retired or the contracts are completed, as follows: By
15
multiplying the Net State Sales Tax Increment by 60% in the
16
State Fiscal Year 2002; 50% in the State Fiscal Year 2003; 40%
17
in the State Fiscal Year 2004; 30% in the State Fiscal Year
18
2005; 20% in the State Fiscal Year 2006; and 10% in the State
19
Fiscal Year 2007. No payment shall be made for State Fiscal
20
Year 2008 and thereafter. Refunding of any bonds issued prior
21
to July 29, 1991, shall not alter the Net State Sales Tax
22
Increment.
23

(j) "State Utility Tax Increment Amount" means an amount
24
equal to the aggregate increase in State electric and gas tax
25
charges imposed on owners and tenants, other than residential
26
customers, of properties located within the redevelopment

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project area under Section 9-222 of the Public Utilities Act,
2
over and above the aggregate of such charges as certified by
3
the Department of Revenue and paid by owners and tenants,
4
other than residential customers, of properties within the
5
redevelopment project area during the base year, which shall
6
be the calendar year immediately prior to the year of the
7
adoption of the ordinance authorizing tax increment allocation
8
financing.
9

(k) "Net State Utility Tax Increment" means the sum of the
10
following: (a) 80% of the first $100,000 of State Utility Tax
11
Increment annually generated by a redevelopment project area;
12
(b) 60% of the amount in excess of $100,000 but not exceeding
13
$500,000 of the State Utility Tax Increment annually generated
14
by a redevelopment project area; and (c) 40% of all amounts in
15
excess of $500,000 of State Utility Tax Increment annually
16
generated by a redevelopment project area. For the State
17
Fiscal Year 1999, and every year thereafter until the year
18
2007, for any municipality that has not entered into a
19
contract or has not issued bonds prior to June 1, 1988 to
20
finance redevelopment project costs within a redevelopment
21
project area, the Net State Utility Tax Increment shall be
22
calculated as follows: By multiplying the Net State Utility
23
Tax Increment by 90% in the State Fiscal Year 1999; 80% in the
24
State Fiscal Year 2000; 70% in the State Fiscal Year 2001; 60%
25
in the State Fiscal Year 2002; 50% in the State Fiscal Year
26
2003; 40% in the State Fiscal Year 2004; 30% in the State

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Fiscal Year 2005; 20% in the State Fiscal Year 2006; and 10% in
2
the State Fiscal Year 2007. No payment shall be made for the
3
State Fiscal Year 2008 and thereafter.
4

Municipalities that issue bonds in connection with the
5
redevelopment project during the period from June 1, 1988
6
until 3 years after the effective date of this Amendatory Act
7
of 1988 shall receive the Net State Utility Tax Increment,
8
subject to appropriation, for 15 State Fiscal Years after the
9
issuance of such bonds. For the 16th through the 20th State
10
Fiscal Years after issuance of the bonds, the Net State
11
Utility Tax Increment shall be calculated as follows: By
12
multiplying the Net State Utility Tax Increment by 90% in year
13
16; 80% in year 17; 70% in year 18; 60% in year 19; and 50% in
14
year 20. Refunding of any bonds issued prior to June 1, 1988,
15
shall not alter the revised Net State Utility Tax Increment
16
payments set forth above.
17

(l) "Obligations" mean bonds, loans, debentures, notes,
18
special certificates or other evidence of indebtedness issued
19
by the municipality to carry out a redevelopment project or to
20
refund outstanding obligations.
21

(m) "Payment in lieu of taxes" means those estimated tax
22
revenues from real property in a redevelopment project area
23
derived from real property that has been acquired by a
24
municipality which according to the redevelopment project or
25
plan is to be used for a private use which taxing districts
26
would have received had a municipality not acquired the real

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property and adopted tax increment allocation financing and
2
which would result from levies made after the time of the
3
adoption of tax increment allocation financing to the time the
4
current equalized value of real property in the redevelopment
5
project area exceeds the total initial equalized value of real
6
property in said area.
7

(n) "Redevelopment plan" means the comprehensive program
8
of the municipality for development or redevelopment intended
9
by the payment of redevelopment project costs to reduce or
10
eliminate those conditions the existence of which qualified
11
the redevelopment project area as a "blighted area" or
12
"conservation area" or combination thereof or "industrial park
13
conservation area," and thereby to enhance the tax bases of
14
the taxing districts which extend into the redevelopment
15
project area, provided that, with respect to redevelopment
16
project areas described in subsections (p-1) and (p-2),
17
"redevelopment plan" means the comprehensive program of the
18
affected municipality for the development of qualifying
19
transit facilities. On and after November 1, 1999 (the
20
effective date of Public Act 91-478), no redevelopment plan
21
may be approved or amended that includes the development of
22
vacant land (i) with a golf course and related clubhouse and
23
other facilities or (ii) designated by federal, State, county,
24
or municipal government as public land for outdoor
25
recreational activities or for nature preserves and used for
26
that purpose within 5 years prior to the adoption of the

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redevelopment plan. For the purpose of this subsection,
2
"recreational activities" is limited to mean camping and
3
hunting. Each redevelopment plan shall set forth in writing
4
the program to be undertaken to accomplish the objectives and
5
shall include but not be limited to:
6

(A) an itemized list of estimated redevelopment
7

project costs;
8

(B) evidence indicating that the redevelopment project
9

area on the whole has not been subject to growth and
10

development through investment by private enterprise,
11

provided that such evidence shall not be required for any
12

redevelopment project area located within a transit
13

facility improvement area established pursuant to Section
14

11-74.4-3.3;
15

(C) an assessment of any financial impact of the
16

redevelopment project area on or any increased demand for
17

services from any taxing district affected by the plan and
18

any program to address such financial impact or increased
19

demand;
20

(D) the sources of funds to pay costs;
21

(E) the nature and term of the obligations to be
22

issued;
23

(F) the most recent equalized assessed valuation of
24

the redevelopment project area;
25

(G) an estimate as to the equalized assessed valuation
26

after redevelopment and the general land uses to apply in

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the redevelopment project area;
2

(H) a commitment to fair employment practices and an
3

affirmative action plan;
4

(I) if it concerns an industrial park conservation
5

area, the plan shall also include a general description of
6

any proposed developer, user and tenant of any property, a
7

description of the type, structure and general character
8

of the facilities to be developed, a description of the
9

type, class and number of new employees to be employed in
10

the operation of the facilities to be developed; and
11

(J) if property is to be annexed to the municipality,
12

the plan shall include the terms of the annexation
13

agreement.
14

The provisions of items (B) and (C) of this subsection (n)
15
shall not apply to a municipality that before March 14, 1994
16
(the effective date of Public Act 88-537) had fixed, either by
17
its corporate authorities or by a commission designated under
18
subsection (k) of Section 11-74.4-4, a time and place for a
19
public hearing as required by subsection (a) of Section
20
11-74.4-5. No redevelopment plan shall be adopted unless a
21
municipality complies with all of the following requirements:
22

(1) The municipality finds that the redevelopment
23

project area on the whole has not been subject to growth
24

and development through investment by private enterprise
25

and would not reasonably be anticipated to be developed
26

without the adoption of the redevelopment plan, provided,

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however, that such a finding shall not be required with
2

respect to any redevelopment project area located within a
3

transit facility improvement area established pursuant to
4

Section 11-74.4-3.3.
5

(2) The municipality finds that the redevelopment plan
6

and project conform to the comprehensive plan for the
7

development of the municipality as a whole, or, for
8

municipalities with a population of 100,000 or more,
9

regardless of when the redevelopment plan and project was
10

adopted, the redevelopment plan and project either: (i)
11

conforms to the strategic economic development or
12

redevelopment plan issued by the designated planning
13

authority of the municipality, or (ii) includes land uses
14

that have been approved by the planning commission of the
15

municipality.
16

(3) The redevelopment plan establishes the estimated
17

dates of completion of the redevelopment project and
18

retirement of obligations issued to finance redevelopment
19

project costs. Those dates may not be later than the dates
20

set forth under Section 11-74.4-3.5.
21

A municipality may by municipal ordinance amend an
22

existing redevelopment plan to conform to this paragraph
23

(3) as amended by Public Act 91-478, which municipal
24

ordinance may be adopted without further hearing or notice
25

and without complying with the procedures provided in this
26

Act pertaining to an amendment to or the initial approval

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of a redevelopment plan and project and designation of a
2

redevelopment project area.
3

(3.5) The municipality finds, in the case of an
4

industrial park conservation area, also that the
5

municipality is a labor surplus municipality and that the
6

implementation of the redevelopment plan will reduce
7

unemployment, create new jobs and by the provision of new
8

facilities enhance the tax base of the taxing districts
9

that extend into the redevelopment project area.
10

(4) If any incremental revenues are being utilized
11

under Section 8(a)(1) or 8(a)(2) of this Act in
12

redevelopment project areas approved by ordinance after
13

January 1, 1986, the municipality finds: (a) that the
14

redevelopment project area would not reasonably be
15

developed without the use of such incremental revenues,
16

and (b) that such incremental revenues will be exclusively
17

utilized for the development of the redevelopment project
18

area.
19

(5) If: (a) the redevelopment plan will not result in
20

displacement of residents from 10 or more inhabited
21

residential units, and the municipality certifies in the
22

plan that such displacement will not result from the plan;
23

or (b) the redevelopment plan is for a redevelopment
24

project area or a qualifying transit facility located
25

within a transit facility improvement area established
26

pursuant to Section 11-74.4-3.3, and the applicable

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1

project is subject to the process for evaluation of
2

environmental effects under the National Environmental
3

Policy Act of 1969, 42 U.S.C. 4321 et seq., then a housing
4

impact study need not be performed. If, however, the
5

redevelopment plan would result in the displacement of
6

residents from 10 or more inhabited residential units, or
7

if the redevelopment project area contains 75 or more
8

inhabited residential units and no certification is made,
9

then the municipality shall prepare, as part of the
10

separate feasibility report required by subsection (a) of
11

Section 11-74.4-5, a housing impact study.
12

Part I of the housing impact study shall include (i)
13

data as to whether the residential units are single family
14

or multi-family units, (ii) the number and type of rooms
15

within the units, if that information is available, (iii)
16

whether the units are inhabited or uninhabited, as
17

determined not less than 45 days before the date that the
18

ordinance or resolution required by subsection (a) of
19

Section 11-74.4-5 is passed, and (iv) data as to the
20

racial and ethnic composition of the residents in the
21

inhabited residential units. The data requirement as to
22

the racial and ethnic composition of the residents in the
23

inhabited residential units shall be deemed to be fully
24

satisfied by data from the most recent federal census.
25

Part II of the housing impact study shall identify the
26

inhabited residential units in the proposed redevelopment

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1

project area that are to be or may be removed. If inhabited
2

residential units are to be removed, then the housing
3

impact study shall identify (i) the number and location of
4

those units that will or may be removed, (ii) the
5

municipality's plans for relocation assistance for those
6

residents in the proposed redevelopment project area whose
7

residences are to be removed, (iii) the availability of
8

replacement housing for those residents whose residences
9

are to be removed, and shall identify the type, location,
10

and cost of the housing, and (iv) the type and extent of
11

relocation assistance to be provided.
12

(6) On and after November 1, 1999, the housing impact
13

study required by paragraph (5) shall be incorporated in
14

the redevelopment plan for the redevelopment project area.
15

(7) On and after November 1, 1999, no redevelopment
16

plan shall be adopted, nor an existing plan amended, nor
17

shall residential housing that is occupied by households
18

of low-income and very low-income persons in currently
19

existing redevelopment project areas be removed after
20

November 1, 1999 unless the redevelopment plan provides,
21

with respect to inhabited housing units that are to be
22

removed for households of low-income and very low-income
23

persons, affordable housing and relocation assistance not
24

less than that which would be provided under the federal
25

Uniform Relocation Assistance and Real Property
26

Acquisition Policies Act of 1970 and the regulations under

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that Act, including the eligibility criteria. Affordable
2

housing may be either existing or newly constructed
3

housing. For purposes of this paragraph (7), "low-income
4

households", "very low-income households", and "affordable
5

housing" have the meanings set forth in the Illinois
6

Affordable Housing Act. The municipality shall make a good
7

faith effort to ensure that this affordable housing is
8

located in or near the redevelopment project area within
9

the municipality.
10

(8) On and after November 1, 1999, if, after the
11

adoption of the redevelopment plan for the redevelopment
12

project area, any municipality desires to amend its
13

redevelopment plan to remove more inhabited residential
14

units than specified in its original redevelopment plan,
15

that change shall be made in accordance with the
16

procedures in subsection (c) of Section 11-74.4-5.
17

(9) For redevelopment project areas designated prior
18

to November 1, 1999, the redevelopment plan may be amended
19

without further joint review board meeting or hearing,
20

provided that the municipality shall give notice of any
21

such changes by mail to each affected taxing district and
22

registrant on the interested party registry, to authorize
23

the municipality to expend tax increment revenues for
24

redevelopment project costs defined by paragraphs (5) and
25

(7.5), subparagraphs (E) and (F) of paragraph (11), and
26

paragraph (11.5) of subsection (q) of Section 11-74.4-3,

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so long as the changes do not increase the total estimated
2

redevelopment project costs set out in the redevelopment
3

plan by more than 5% after adjustment for inflation from
4

the date the plan was adopted.
5

(o) "Redevelopment project" means any public and private
6
development project in furtherance of the objectives of a
7
redevelopment plan. On and after November 1, 1999 (the
8
effective date of Public Act 91-478), no redevelopment plan
9
may be approved or amended that includes the development of
10
vacant land (i) with a golf course and related clubhouse and
11
other facilities or (ii) designated by federal, State, county,
12
or municipal government as public land for outdoor
13
recreational activities or for nature preserves and used for
14
that purpose within 5 years prior to the adoption of the
15
redevelopment plan. For the purpose of this subsection,
16
"recreational activities" is limited to mean camping and
17
hunting.
18

(p) "Redevelopment project area" means an area designated
19
by the municipality, which is not less in the aggregate than 1
20
1/2 acres and in respect to which the municipality has made a
21
finding that there exist conditions which cause the area to be
22
classified as an industrial park conservation area or a
23
blighted area or a conservation area, or a combination of both
24
blighted areas and conservation areas.
25

(p-1) Notwithstanding any provision of this Act to the
26
contrary, on and after August 25, 2009 (the effective date of

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1
Public Act 96-680), a redevelopment project area may include
2
areas within a one-half mile radius of an existing or proposed
3
Regional Transportation Authority Suburban Transit Access
4
Route (STAR Line) station without a finding that the area is
5
classified as an industrial park conservation area, a blighted
6
area, a conservation area, or a combination thereof, but only
7
if the municipality receives unanimous consent from the joint
8
review board created to review the proposed redevelopment
9
project area.
10

(p-2) Notwithstanding any provision of this Act to the
11
contrary, on and after the effective date of this amendatory
12
Act of the 99th General Assembly, a redevelopment project area
13
may include areas within a transit facility improvement area
14
that has been established pursuant to Section 11-74.4-3.3
15
without a finding that the area is classified as an industrial
16
park conservation area, a blighted area, a conservation area,
17
or any combination thereof.
18

(q) "Redevelopment project costs", except for
19
redevelopment project areas created pursuant to subsection
20
(p-1) or (p-2), means and includes the sum total of all
21
reasonable or necessary costs incurred or estimated to be
22
incurred, and any such costs incidental to a redevelopment
23
plan and a redevelopment project. Such costs include, without
24
limitation, the following:
25

(1) Costs of studies, surveys, development of plans,
26

and specifications, implementation and administration of

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1

the redevelopment plan including but not limited to staff
2

and professional service costs for architectural,
3

engineering, legal, financial, planning or other services,
4

provided however that no charges for professional services
5

may be based on a percentage of the tax increment
6

collected; except that on and after November 1, 1999 (the
7

effective date of Public Act 91-478), no contracts for
8

professional services, excluding architectural and
9

engineering services, may be entered into if the terms of
10

the contract extend beyond a period of 3 years. In
11

addition, "redevelopment project costs" shall not include
12

lobbying expenses. After consultation with the
13

municipality, each tax increment consultant or advisor to
14

a municipality that plans to designate or has designated a
15

redevelopment project area shall inform the municipality
16

in writing of any contracts that the consultant or advisor
17

has entered into with entities or individuals that have
18

received, or are receiving, payments financed by tax
19

increment revenues produced by the redevelopment project
20

area with respect to which the consultant or advisor has
21

performed, or will be performing, service for the
22

municipality. This requirement shall be satisfied by the
23

consultant or advisor before the commencement of services
24

for the municipality and thereafter whenever any other
25

contracts with those individuals or entities are executed
26

by the consultant or advisor;

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1

(1.5) After July 1, 1999, annual administrative costs
2

shall not include general overhead or administrative costs
3

of the municipality that would still have been incurred by
4

the municipality if the municipality had not designated a
5

redevelopment project area or approved a redevelopment
6

plan;
7

(1.6) The cost of marketing sites within the
8

redevelopment project area to prospective businesses,
9

developers, and investors;
10

(2) Property assembly costs, including but not limited
11

to acquisition of land and other property, real or
12

personal, or rights or interests therein, demolition of
13

buildings, site preparation, site improvements that serve
14

as an engineered barrier addressing ground level or below
15

ground environmental contamination, including, but not
16

limited to parking lots and other concrete or asphalt
17

barriers, and the clearing and grading of land;
18

(3) Costs of rehabilitation, reconstruction or repair
19

or remodeling of existing public or private buildings,
20

fixtures, and leasehold improvements; and the cost of
21

replacing an existing public building if pursuant to the
22

implementation of a redevelopment project the existing
23

public building is to be demolished to use the site for
24

private investment or devoted to a different use requiring
25

private investment; including any direct or indirect costs
26

relating to Green Globes or LEED certified construction

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elements or construction elements with an equivalent
2

certification;
3

(4) Costs of the construction of public works or
4

improvements, including any direct or indirect costs
5

relating to Green Globes or LEED certified construction
6

elements or construction elements with an equivalent
7

certification, except that on and after November 1, 1999,
8

redevelopment project costs shall not include the cost of
9

constructing a new municipal public building principally
10

used to provide offices, storage space, or conference
11

facilities or vehicle storage, maintenance, or repair for
12

administrative, public safety, or public works personnel
13

and that is not intended to replace an existing public
14

building as provided under paragraph (3) of subsection (q)
15

of Section 11-74.4-3 unless either (i) the construction of
16

the new municipal building implements a redevelopment
17

project that was included in a redevelopment plan that was
18

adopted by the municipality prior to November 1, 1999,
19

(ii) the municipality makes a reasonable determination in
20

the redevelopment plan, supported by information that
21

provides the basis for that determination, that the new
22

municipal building is required to meet an increase in the
23

need for public safety purposes anticipated to result from
24

the implementation of the redevelopment plan, or (iii) the
25

new municipal public building is for the storage,
26

maintenance, or repair of transit vehicles and is located

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in a transit facility improvement area that has been
2

established pursuant to Section 11-74.4-3.3;
3

(5) Costs of job training and retraining projects,
4

including the cost of "welfare to work" programs
5

implemented by businesses located within the redevelopment
6

project area;
7

(6) Financing costs, including but not limited to all
8

necessary and incidental expenses related to the issuance
9

of obligations and which may include payment of interest
10

on any obligations issued hereunder including interest
11

accruing during the estimated period of construction of
12

any redevelopment project for which such obligations are
13

issued and for not exceeding 36 months thereafter and
14

including reasonable reserves related thereto;
15

(7) To the extent the municipality by written
16

agreement accepts and approves the same, all or a portion
17

of a taxing district's capital costs resulting from the
18

redevelopment project necessarily incurred or to be
19

incurred within a taxing district in furtherance of the
20

objectives of the redevelopment plan and project;
21

(7.5) For redevelopment project areas designated (or
22

redevelopment project areas amended to add or increase the
23

number of tax-increment-financing assisted housing units)
24

on or after November 1, 1999, an elementary, secondary, or
25

unit school district's increased costs attributable to
26

assisted housing units located within the redevelopment

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project area for which the developer or redeveloper
2

receives financial assistance through an agreement with
3

the municipality or because the municipality incurs the
4

cost of necessary infrastructure improvements within the
5

boundaries of the assisted housing sites necessary for the
6

completion of that housing as authorized by this Act, and
7

which costs shall be paid by the municipality from the
8

Special Tax Allocation Fund when the tax increment revenue
9

is received as a result of the assisted housing units and
10

shall be calculated annually as follows:
11

(A) for foundation districts, excluding any school
12

district in a municipality with a population in excess
13

of 1,000,000, by multiplying the district's increase
14

in attendance resulting from the net increase in new
15

students enrolled in that school district who reside
16

in housing units within the redevelopment project area
17

that have received financial assistance through an
18

agreement with the municipality or because the
19

municipality incurs the cost of necessary
20

infrastructure improvements within the boundaries of
21

the housing sites necessary for the completion of that
22

housing as authorized by this Act since the
23

designation of the redevelopment project area by the
24

most recently available per capita tuition cost as
25

defined in Section 10-20.12a of the School Code less
26

any increase in general State aid as defined in

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Section 18-8.05 of the School Code or evidence-based
2

funding as defined in Section 18-8.15 of the School
3

Code attributable to these added new students subject
4

to the following annual limitations:
5

(i) for unit school districts with a district
6

average 1995-96 Per Capita Tuition Charge of less
7

than $5,900, no more than 25% of the total amount
8

of property tax increment revenue produced by
9

those housing units that have received tax
10

increment finance assistance under this Act;
11

(ii) for elementary school districts with a
12

district average 1995-96 Per Capita Tuition Charge
13

of less than $5,900, no more than 17% of the total
14

amount of property tax increment revenue produced
15

by those housing units that have received tax
16

increment finance assistance under this Act; and
17

(iii) for secondary school districts with a
18

district average 1995-96 Per Capita Tuition Charge
19

of less than $5,900, no more than 8% of the total
20

amount of property tax increment revenue produced
21

by those housing units that have received tax
22

increment finance assistance under this Act.
23

(B) For alternate method districts, flat grant
24

districts, and foundation districts with a district
25

average 1995-96 Per Capita Tuition Charge equal to or
26

more than $5,900, excluding any school district with a

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population in excess of 1,000,000, by multiplying the
2

district's increase in attendance resulting from the
3

net increase in new students enrolled in that school
4

district who reside in housing units within the
5

redevelopment project area that have received
6

financial assistance through an agreement with the
7

municipality or because the municipality incurs the
8

cost of necessary infrastructure improvements within
9

the boundaries of the housing sites necessary for the
10

completion of that housing as authorized by this Act
11

since the designation of the redevelopment project
12

area by the most recently available per capita tuition
13

cost as defined in Section 10-20.12a of the School
14

Code less any increase in general state aid as defined
15

in Section 18-8.05 of the School Code or
16

evidence-based funding as defined in Section 18-8.15
17

of the School Code attributable to these added new
18

students subject to the following annual limitations:
19

(i) for unit school districts, no more than
20

40% of the total amount of property tax increment
21

revenue produced by those housing units that have
22

received tax increment finance assistance under
23

this Act;
24

(ii) for elementary school districts, no more
25

than 27% of the total amount of property tax
26

increment revenue produced by those housing units

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that have received tax increment finance
2

assistance under this Act; and
3

(iii) for secondary school districts, no more
4

than 13% of the total amount of property tax
5

increment revenue produced by those housing units
6

that have received tax increment finance
7

assistance under this Act.
8

(C) For any school district in a municipality with
9

a population in excess of 1,000,000, the following
10

restrictions shall apply to the reimbursement of
11

increased costs under this paragraph (7.5):
12

(i) no increased costs shall be reimbursed
13

unless the school district certifies that each of
14

the schools affected by the assisted housing
15

project is at or over its student capacity;
16

(ii) the amount reimbursable shall be reduced
17

by the value of any land donated to the school
18

district by the municipality or developer, and by
19

the value of any physical improvements made to the
20

schools by the municipality or developer; and
21

(iii) the amount reimbursed may not affect
22

amounts otherwise obligated by the terms of any
23

bonds, notes, or other funding instruments, or the
24

terms of any redevelopment agreement.
25

Any school district seeking payment under this
26

paragraph (7.5) shall, after July 1 and before

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September 30 of each year, provide the municipality
2

with reasonable evidence to support its claim for
3

reimbursement before the municipality shall be
4

required to approve or make the payment to the school
5

district. If the school district fails to provide the
6

information during this period in any year, it shall
7

forfeit any claim to reimbursement for that year.
8

School districts may adopt a resolution waiving the
9

right to all or a portion of the reimbursement
10

otherwise required by this paragraph (7.5). By
11

acceptance of this reimbursement the school district
12

waives the right to directly or indirectly set aside,
13

modify, or contest in any manner the establishment of
14

the redevelopment project area or projects;
15

(7.7) For redevelopment project areas designated (or
16

redevelopment project areas amended to add or increase the
17

number of tax-increment-financing assisted housing units)
18

on or after January 1, 2005 (the effective date of Public
19

Act 93-961), a public library district's increased costs
20

attributable to assisted housing units located within the
21

redevelopment project area for which the developer or
22

redeveloper receives financial assistance through an
23

agreement with the municipality or because the
24

municipality incurs the cost of necessary infrastructure
25

improvements within the boundaries of the assisted housing
26

sites necessary for the completion of that housing as

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authorized by this Act shall be paid to the library
2

district by the municipality from the Special Tax
3

Allocation Fund when the tax increment revenue is received
4

as a result of the assisted housing units. This paragraph
5

(7.7) applies only if (i) the library district is located
6

in a county that is subject to the Property Tax Extension
7

Limitation Law or (ii) the library district is not located
8

in a county that is subject to the Property Tax Extension
9

Limitation Law but the district is prohibited by any other
10

law from increasing its tax levy rate without a prior
11

voter referendum.
12

The amount paid to a library district under this
13

paragraph (7.7) shall be calculated by multiplying (i) the
14

net increase in the number of persons eligible to obtain a
15

library card in that district who reside in housing units
16

within the redevelopment project area that have received
17

financial assistance through an agreement with the
18

municipality or because the municipality incurs the cost
19

of necessary infrastructure improvements within the
20

boundaries of the housing sites necessary for the
21

completion of that housing as authorized by this Act since
22

the designation of the redevelopment project area by (ii)
23

the per-patron cost of providing library services so long
24

as it does not exceed $120. The per-patron cost shall be
25

the Total Operating Expenditures Per Capita for the
26

library in the previous fiscal year. The municipality may

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deduct from the amount that it must pay to a library
2

district under this paragraph any amount that it has
3

voluntarily paid to the library district from the tax
4

increment revenue. The amount paid to a library district
5

under this paragraph (7.7) shall be no more than 2% of the
6

amount produced by the assisted housing units and
7

deposited into the Special Tax Allocation Fund.
8

A library district is not eligible for any payment
9

under this paragraph (7.7) unless the library district has
10

experienced an increase in the number of patrons from the
11

municipality that created the tax-increment-financing
12

district since the designation of the redevelopment
13

project area.
14

Any library district seeking payment under this
15

paragraph (7.7) shall, after July 1 and before September
16

30 of each year, provide the municipality with convincing
17

evidence to support its claim for reimbursement before the
18

municipality shall be required to approve or make the
19

payment to the library district. If the library district
20

fails to provide the information during this period in any
21

year, it shall forfeit any claim to reimbursement for that
22

year. Library districts may adopt a resolution waiving the
23

right to all or a portion of the reimbursement otherwise
24

required by this paragraph (7.7). By acceptance of such
25

reimbursement, the library district shall forfeit any
26

right to directly or indirectly set aside, modify, or

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contest in any manner whatsoever the establishment of the
2

redevelopment project area or projects;
3

(8) Relocation costs to the extent that a municipality
4

determines that relocation costs shall be paid or is
5

required to make payment of relocation costs by federal or
6

State law or in order to satisfy subparagraph (7) of
7

subsection (n);
8

(9) Payment in lieu of taxes;
9

(10) Costs of job training, retraining, advanced
10

vocational education or career education, including but
11

not limited to courses in occupational, semi-technical or
12

technical fields leading directly to employment, incurred
13

by one or more taxing districts, provided that such costs
14

(i) are related to the establishment and maintenance of
15

additional job training, advanced vocational education or
16

career education programs for persons employed or to be
17

employed by employers located in a redevelopment project
18

area; and (ii) when incurred by a taxing district or
19

taxing districts other than the municipality, are set
20

forth in a written agreement by or among the municipality
21

and the taxing district or taxing districts, which
22

agreement describes the program to be undertaken,
23

including but not limited to the number of employees to be
24

trained, a description of the training and services to be
25

provided, the number and type of positions available or to
26

be available, itemized costs of the program and sources of

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funds to pay for the same, and the term of the agreement.
2

Such costs include, specifically, the payment by community
3

college districts of costs pursuant to Sections 3-37,
4

3-38, 3-40 and 3-40.1 of the Public Community College Act
5

and by school districts of costs pursuant to Sections
6

10-22.20a and 10-23.3a of the School Code;
7

(11) Interest cost incurred by a redeveloper related
8

to the construction, renovation or rehabilitation of a
9

redevelopment project provided that:
10

(A) such costs are to be paid directly from the
11

special tax allocation fund established pursuant to
12

this Act;
13

(B) such payments in any one year may not exceed
14

30% of the annual interest costs incurred by the
15

redeveloper with regard to the redevelopment project
16

during that year;
17

(C) if there are not sufficient funds available in
18

the special tax allocation fund to make the payment
19

pursuant to this paragraph (11) then the amounts so
20

due shall accrue and be payable when sufficient funds
21

are available in the special tax allocation fund;
22

(D) the total of such interest payments paid
23

pursuant to this Act may not exceed 30% of the total
24

(i) cost paid or incurred by the redeveloper for the
25

redevelopment project plus (ii) redevelopment project
26

costs excluding any property assembly costs and any

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relocation costs incurred by a municipality pursuant
2

to this Act;
3

(E) the cost limits set forth in subparagraphs (B)
4

and (D) of paragraph (11) shall be modified for the
5

financing of rehabilitated or new housing units for
6

low-income households and very low-income households,
7

as defined in Section 3 of the Illinois Affordable
8

Housing Act. The percentage of 75% shall be
9

substituted for 30% in subparagraphs (B) and (D) of
10

paragraph (11); and
11

(F) instead of the eligible costs provided by
12

subparagraphs (B) and (D) of paragraph (11), as
13

modified by this subparagraph, and notwithstanding any
14

other provisions of this Act to the contrary, the
15

municipality may pay from tax increment revenues up to
16

50% of the cost of construction of new housing units to
17

be occupied by low-income households and very
18

low-income households as defined in Section 3 of the
19

Illinois Affordable Housing Act. The cost of
20

construction of those units may be derived from the
21

proceeds of bonds issued by the municipality under
22

this Act or other constitutional or statutory
23

authority or from other sources of municipal revenue
24

that may be reimbursed from tax increment revenues or
25

the proceeds of bonds issued to finance the
26

construction of that housing.

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The eligible costs provided under this
2

subparagraph (F) of paragraph (11) shall be an
3

eligible cost for the construction, renovation, and
4

rehabilitation of all low and very low-income housing
5

units, as defined in Section 3 of the Illinois
6

Affordable Housing Act, within the redevelopment
7

project area. If the low and very low-income units are
8

part of a residential redevelopment project that
9

includes units not affordable to low and very
10

low-income households, only the low and very
11

low-income units shall be eligible for benefits under
12

this subparagraph (F) of paragraph (11). The standards
13

for maintaining the occupancy by low-income households
14

and very low-income households, as defined in Section
15

3 of the Illinois Affordable Housing Act, of those
16

units constructed with eligible costs made available
17

under the provisions of this subparagraph (F) of
18

paragraph (11) shall be established by guidelines
19

adopted by the municipality. The responsibility for
20

annually documenting the initial occupancy of the
21

units by low-income households and very low-income
22

households, as defined in Section 3 of the Illinois
23

Affordable Housing Act, shall be that of the then
24

current owner of the property. For ownership units,
25

the guidelines will provide, at a minimum, for a
26

reasonable recapture of funds, or other appropriate

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methods designed to preserve the original
2

affordability of the ownership units. For rental
3

units, the guidelines will provide, at a minimum, for
4

the affordability of rent to low and very low-income
5

households. As units become available, they shall be
6

rented to income-eligible tenants. The municipality
7

may modify these guidelines from time to time; the
8

guidelines, however, shall be in effect for as long as
9

tax increment revenue is being used to pay for costs
10

associated with the units or for the retirement of
11

bonds issued to finance the units or for the life of
12

the redevelopment project area, whichever is later;
13

(11.5) If the redevelopment project area is located
14

within a municipality with a population of more than
15

100,000, the cost of day care services for children of
16

employees from low-income families working for businesses
17

located within the redevelopment project area and all or a
18

portion of the cost of operation of day care centers
19

established by redevelopment project area businesses to
20

serve employees from low-income families working in
21

businesses located in the redevelopment project area. For
22

the purposes of this paragraph, "low-income families"
23

means families whose annual income does not exceed 80% of
24

the municipal, county, or regional median income, adjusted
25

for family size, as the annual income and municipal,
26

county, or regional median income are determined from time

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1

to time by the United States Department of Housing and
2

Urban Development.
3

(12) Costs relating to the development of urban
4

agricultural areas under Division 15.2 of the Illinois
5

Municipal Code.
6

(13) Costs of operations, infrastructure, and
7

programming of not-for-profit veterans and military
8

organizations located within the redevelopment project
9

area, including organizations designated as tax-exempt
10

organizations under Section 501(c)(19) of the federal
11

Internal Revenue Code.

12

Unless explicitly stated herein the cost of construction
13
of new privately-owned buildings shall not be an eligible
14
redevelopment project cost.
15

After November 1, 1999 (the effective date of Public Act
16
91-478), none of the redevelopment project costs enumerated in
17
this subsection shall be eligible redevelopment project costs
18
if those costs would provide direct financial support to a
19
retail entity initiating operations in the redevelopment
20
project area while terminating operations at another Illinois
21
location within 10 miles of the redevelopment project area but
22
outside the boundaries of the redevelopment project area
23
municipality. For purposes of this paragraph, termination
24
means a closing of a retail operation that is directly related
25
to the opening of the same operation or like retail entity
26
owned or operated by more than 50% of the original ownership in

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a redevelopment project area, but it does not mean closing an
2
operation for reasons beyond the control of the retail entity,
3
as documented by the retail entity, subject to a reasonable
4
finding by the municipality that the current location
5
contained inadequate space, had become economically obsolete,
6
or was no longer a viable location for the retailer or
7
serviceman.
8

No cost shall be a redevelopment project cost in a
9
redevelopment project area if used to demolish, remove, or
10
substantially modify a historic resource, after August 26,
11
2008 (the effective date of Public Act 95-934), unless no
12
prudent and feasible alternative exists. "Historic resource"
13
for the purpose of this paragraph means (i) a place or
14
structure that is included or eligible for inclusion on the
15
National Register of Historic Places or (ii) a contributing
16
structure in a district on the National Register of Historic
17
Places. This paragraph does not apply to a place or structure
18
for which demolition, removal, or modification is subject to
19
review by the preservation agency of a Certified Local
20
Government designated as such by the National Park Service of
21
the United States Department of the Interior.
22

If a special service area has been established pursuant to
23
the Special Service Area Tax Act or Special Service Area Tax
24
Law, then any tax increment revenues derived from the tax
25
imposed pursuant to the Special Service Area Tax Act or
26
Special Service Area Tax Law may be used within the

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redevelopment project area for the purposes permitted by that
2
Act or Law as well as the purposes permitted by this Act.
3

(q-1) For redevelopment project areas created pursuant to
4
subsection (p-1), redevelopment project costs are limited to
5
those costs in paragraph (q) that are related to the existing
6
or proposed Regional Transportation Authority Suburban Transit
7
Access Route (STAR Line) station.
8

(q-2) For a transit facility improvement area established
9
prior to, on, or after the effective date of this amendatory
10
Act of the 102nd General Assembly: (i) "redevelopment project
11
costs" means those costs described in subsection (q) that are
12
related to the construction, reconstruction, rehabilitation,
13
remodeling, or repair of any existing or proposed transit
14
facility, whether that facility is located within or outside
15
the boundaries of a redevelopment project area established
16
within that transit facility improvement area (and, to the
17
extent a redevelopment project cost is described in subsection
18
(q) as incurred or estimated to be incurred with respect to a
19
redevelopment project area, then it shall apply with respect
20
to such transit facility improvement area); and (ii) the
21
provisions of Section 11-74.4-8 regarding tax increment
22
allocation financing for a redevelopment project area located
23
in a transit facility improvement area shall apply only to the
24
lots, blocks, tracts and parcels of real property that are
25
located within the boundaries of that redevelopment project
26
area and not to the lots, blocks, tracts, and parcels of real

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property that are located outside the boundaries of that
2
redevelopment project area.
3

(r) "State Sales Tax Boundary" means the redevelopment
4
project area or the amended redevelopment project area
5
boundaries which are determined pursuant to subsection (9) of
6
Section 11-74.4-8a of this Act. The Department of Revenue
7
shall certify pursuant to subsection (9) of Section 11-74.4-8a
8
the appropriate boundaries eligible for the determination of
9
State Sales Tax Increment.
10

(s) "State Sales Tax Increment" means an amount equal to
11
the increase in the aggregate amount of taxes paid by
12
retailers and servicemen, other than retailers and servicemen
13
subject to the Public Utilities Act, on transactions at places
14
of business located within a State Sales Tax Boundary pursuant
15
to the Retailers' Occupation Tax Act, the Use Tax Act, the
16
Service Use Tax Act, and the Service Occupation Tax Act,
17
except such portion of such increase that is paid into the
18
State and Local Sales Tax Reform Fund, the Local Government
19
Distributive Fund, the Local Government Tax Fund and the
20
County and Mass Transit District Fund, for as long as State
21
participation exists, over and above the Initial Sales Tax
22
Amounts, Adjusted Initial Sales Tax Amounts or the Revised
23
Initial Sales Tax Amounts for such taxes as certified by the
24
Department of Revenue and paid under those Acts by retailers
25
and servicemen on transactions at places of business located
26
within the State Sales Tax Boundary during the base year which

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shall be the calendar year immediately prior to the year in
2
which the municipality adopted tax increment allocation
3
financing, less 3.0% of such amounts generated under the
4
Retailers' Occupation Tax Act, Use Tax Act and Service Use Tax
5
Act and the Service Occupation Tax Act, which sum shall be
6
appropriated to the Department of Revenue to cover its costs
7
of administering and enforcing this Section. For purposes of
8
computing the aggregate amount of such taxes for base years
9
occurring prior to 1985, the Department of Revenue shall
10
compute the Initial Sales Tax Amount for such taxes and deduct
11
therefrom an amount equal to 4% of the aggregate amount of
12
taxes per year for each year the base year is prior to 1985,
13
but not to exceed a total deduction of 12%. The amount so
14
determined shall be known as the "Adjusted Initial Sales Tax
15
Amount". For purposes of determining the State Sales Tax
16
Increment the Department of Revenue shall for each period
17
subtract from the tax amounts received from retailers and
18
servicemen on transactions located in the State Sales Tax
19
Boundary, the certified Initial Sales Tax Amounts, Adjusted
20
Initial Sales Tax Amounts or Revised Initial Sales Tax Amounts
21
for the Retailers' Occupation Tax Act, the Use Tax Act, the
22
Service Use Tax Act and the Service Occupation Tax Act. For the
23
State Fiscal Year 1989 this calculation shall be made by
24
utilizing the calendar year 1987 to determine the tax amounts
25
received. For the State Fiscal Year 1990, this calculation
26
shall be made by utilizing the period from January 1, 1988,

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1
until September 30, 1988, to determine the tax amounts
2
received from retailers and servicemen, which shall have
3
deducted therefrom nine-twelfths of the certified Initial
4
Sales Tax Amounts, Adjusted Initial Sales Tax Amounts or the
5
Revised Initial Sales Tax Amounts as appropriate. For the
6
State Fiscal Year 1991, this calculation shall be made by
7
utilizing the period from October 1, 1988, until June 30,
8
1989, to determine the tax amounts received from retailers and
9
servicemen, which shall have deducted therefrom nine-twelfths
10
of the certified Initial State Sales Tax Amounts, Adjusted
11
Initial Sales Tax Amounts or the Revised Initial Sales Tax
12
Amounts as appropriate. For every State Fiscal Year
13
thereafter, the applicable period shall be the 12 months
14
beginning July 1 and ending on June 30, to determine the tax
15
amounts received which shall have deducted therefrom the
16
certified Initial Sales Tax Amounts, Adjusted Initial Sales
17
Tax Amounts or the Revised Initial Sales Tax Amounts.
18
Municipalities intending to receive a distribution of State
19
Sales Tax Increment must report a list of retailers to the
20
Department of Revenue by October 31, 1988 and by July 31, of
21
each year thereafter.
22

(t) "Taxing districts" means counties, townships, cities
23
and incorporated towns and villages, school, road, park,
24
sanitary, mosquito abatement, forest preserve, public health,
25
fire protection, river conservancy, tuberculosis sanitarium
26
and any other municipal corporations or districts with the

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1
power to levy taxes.
2

(u) "Taxing districts' capital costs" means those costs of
3
taxing districts for capital improvements that are found by
4
the municipal corporate authorities to be necessary and
5
directly result from the redevelopment project.
6

(v) As used in subsection (a) of Section 11-74.4-3 of this
7
Act, "vacant land" means any parcel or combination of parcels
8
of real property without industrial, commercial, and
9
residential buildings which has not been used for commercial
10
agricultural purposes within 5 years prior to the designation
11
of the redevelopment project area, unless the parcel is
12
included in an industrial park conservation area or the parcel
13
has been subdivided; provided that if the parcel was part of a
14
larger tract that has been divided into 3 or more smaller
15
tracts that were accepted for recording during the period from
16
1950 to 1990, then the parcel shall be deemed to have been
17
subdivided, and all proceedings and actions of the
18
municipality taken in that connection with respect to any
19
previously approved or designated redevelopment project area
20
or amended redevelopment project area are hereby validated and
21
hereby declared to be legally sufficient for all purposes of
22
this Act. For purposes of this Section and only for land
23
subject to the subdivision requirements of the Plat Act, land
24
is subdivided when the original plat of the proposed
25
Redevelopment Project Area or relevant portion thereof has
26
been properly certified, acknowledged, approved, and recorded

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LRB104 17075 RTM 30492 b
1
or filed in accordance with the Plat Act and a preliminary
2
plat, if any, for any subsequent phases of the proposed
3
Redevelopment Project Area or relevant portion thereof has
4
been properly approved and filed in accordance with the
5
applicable ordinance of the municipality.
6

(w) "Annual Total Increment" means the sum of each
7
municipality's annual Net Sales Tax Increment and each
8
municipality's annual Net Utility Tax Increment. The ratio of
9
the Annual Total Increment of each municipality to the Annual
10
Total Increment for all municipalities, as most recently
11
calculated by the Department, shall determine the proportional
12
shares of the Illinois Tax Increment Fund to be distributed to
13
each municipality.
14

(x) "LEED certified" means any certification level of
15
construction elements by a qualified Leadership in Energy and
16
Environmental Design Accredited Professional as determined by
17
the U.S. Green Building Council.
18

(y) "Green Globes certified" means any certification level
19
of construction elements by a qualified Green Globes
20
Professional as determined by the Green Building Initiative.
21
(Source: P.A. 102-627, eff. 8-27-21.)

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