Illinois Compiled Statutes
Chapter 20 - EXECUTIVE BRANCH
20 ILCS 620/ - Economic Development Area Tax Increment Allocation Act.

(20 ILCS 620/1) (from Ch. 67 1/2, par. 1001)
Sec. 1.
Short title.
This Act shall be known and may be cited as the
Economic Development Area Tax Increment Allocation Act.

(Source: P.A. 86-38.)
 
(20 ILCS 620/2) (from Ch. 67 1/2, par. 1002)
Sec. 2.
Legislative declaration of public purpose.
The General
Assembly hereby finds, determines and declares:
(a) that the loss of job opportunities for the residents of the State is
a serious menace to the health, safety, morals and general welfare of the
people of the entire State;
(b) that a vigorous, growing economy is the basic source of job opportunities;
(c) that protection against the economic burdens associated with the
loss of job opportunities, the consequent spread of economic stagnation and
the resulting harm to the tax base of the State can best be provided by
promoting, attracting, stimulating, retaining and revitalizing industry,
manufacturing, and commerce within the State;
(d) that the continual encouragement, development, growth and expansion
of commercial businesses and industrial and manufacturing facilities within
the State requires a cooperative and continuous partnership between
government and the public sector;
(e) that the State has a responsibility to help create a favorable
climate for new and improved job opportunities for its citizens and to
increase the tax base of the State and its political subdivisions by
encouraging the development by the private sector of new commercial
businesses and industrial and manufacturing facilities and the retention of
existing commercial businesses and industrial and manufacturing facilities
within the State;
(f) that loss of job opportunities within the State has persisted
despite efforts of State and local authorities and private organizations to
attract new commercial businesses and industrial and manufacturing
facilities to the State and to retain existing commercial businesses and
industrial and manufacturing facilities within the State;
(g) that persistent loss of job opportunities in the State may continue
and worsen if the State and its political subdivisions are not able to
provide additional incentives to commercial businesses and industrial and
manufacturing facilities to locate or to remain in the State; and
(h) that the provision of such additional incentives by the State and
its political subdivisions will relieve conditions of unemployment,
maintain existing levels of employment, create new job opportunities,
retain jobs within the State, increase industry and commerce within the
State, thereby creating job opportunities for the residents of the State
and reducing the evils attendant upon unemployment, and increase the tax
base of the State and its political subdivisions.
It is hereby declared to be the policy of the State, in the interest of
promoting the health, safety, morals and general welfare of all the people
of the State, to provide incentives which will create new
job opportunities and retain existing commercial businesses and industrial
and manufacturing facilities within the State and related job
opportunities, and it is further determined
and declared that the relief of conditions of unemployment, the maintenance
of existing levels of employment, the creation of new job opportunities,
the retention of existing commercial businesses and industrial and
manufacturing facilities within the State and related job opportunities,
the increase of industry and
commerce within the State, the reduction of the evils attendant upon
unemployment, and the increase and the maintenance of the tax base of the State and its
political subdivisions are public purposes and for the public safety,
benefit, and welfare of the residents of this State.

(Source: P.A. 86-38.)
 
(20 ILCS 620/3) (from Ch. 67 1/2, par. 1003)
Sec. 3. Definitions. In this Act, words or terms shall have the
following meanings unless the context or usage clearly indicates that another
meaning is intended.
(a) "Department" means the Department of Commerce and Economic Opportunity.
(b) "Economic development plan" means the written plan of a municipality
which sets forth an economic development program for an economic
development project area. Each economic development plan shall include but
not be limited to (1) estimated economic development project costs, (2)
the sources of funds to pay such costs, (3) the nature and term of any
obligations to be issued by the municipality to pay such costs, (4) the
most recent equalized assessed valuation of the economic development project
area,
(5) an estimate of the equalized assessed valuation of the economic
development project area after completion of an economic development project,
(6) the estimated date of completion of any economic development project
proposed to be undertaken, (7) a general description of any proposed
developer, user, or tenant of any property to be located or improved
within the economic development project area, (8) a description of the
type, structure and general character of the facilities to be developed or
improved in the economic development project area, (9) a description of the
general land uses to apply in the
economic development project area, (10) a description of the type, class and
number of employees to be employed in the operation of the facilities to be
developed or improved in the economic development project area, and (11) a
commitment by the municipality to fair
employment practices and an affirmative action plan with respect to any
economic development program to be undertaken by the municipality.
(c) "Economic development project" means any development project in
furtherance of the objectives of this Act.
(d) "Economic development project area" means any improved or vacant
area which (1) is located within or partially within or partially without
the territorial limits of a municipality, provided that no area without the
territorial limits of a municipality shall be included in an economic
development project area without the express consent of the Department,
acting as agent for the State, (2) is contiguous, (3) is not less in the
aggregate than three hundred twenty acres, (4) is suitable for siting by any
commercial, manufacturing, industrial, research or transportation
enterprise of facilities to include but not be limited to commercial
businesses, offices, factories, mills, processing plants, assembly plants,
packing plants, fabricating plants, industrial or commercial distribution
centers, warehouses, repair overhaul or service facilities, freight
terminals, research facilities, test facilities or transportation
facilities, whether or not such area has been used at any time for such
facilities and whether or not the area has been used or is suitable for
other uses, including commercial agricultural purposes, and (5) which has
been approved and certified by the Department pursuant to this Act.
(e) "Economic development project costs" mean and include the sum total
of all reasonable or necessary costs incurred by a municipality incidental
to an economic development project, including, without limitation, the following:
(f) "Municipality" means a city, village or incorporated town.
(g) "Obligations" means any instrument evidencing the obligation of a
municipality to pay money, including without limitation, bonds, notes,
installment or financing contracts, certificates, tax anticipation warrants
or notes, vouchers, and any other evidence of indebtedness.
(h) "Taxing districts" means counties, townships, municipalities, and
school, road, park, sanitary, mosquito abatement, forest preserve, public
health, fire protection, river conservancy, tuberculosis sanitarium and any
other municipal corporations or districts with the power to levy taxes upon property located within the economic development project area.

(Source: P.A. 97-636, eff. 6-1-12.)
 
(20 ILCS 620/4) (from Ch. 67 1/2, par. 1004)
Sec. 4. Establishment of economic development project areas;
ordinance; notice; hearing; changes in economic development plan. Economic
development project areas shall be established as follows:
(a) The corporate authorities of a municipality shall by ordinance
propose the establishment of an economic development project area
and fix a
time and place for a public hearing, and shall submit a certified copy of
the ordinance as adopted to the Department.
(b)(1) Notice of the public hearing shall be given by publication and
mailing. Notice by publication shall be given by publication at least
twice, the first publication to be not more than 30 nor less than 10 days
prior to the hearing in a newspaper of general circulation within the taxing
districts having property in the proposed economic development project
area. Notice by mailing shall be given by depositing such notice together
with a copy of the
proposed economic development plan in the United States mails by
certified mail addressed to the person or persons in whose name the general
taxes for the last preceding year were paid on each lot, block, tract, or
parcel of land lying within the economic development project area. The
notice shall be mailed not less than 10 days prior to the date set for the
public hearing. In the event taxes for the last preceding year were not
paid, the notice shall also be sent to the persons last listed on the tax
rolls within the preceding 3 years as the owners of such property.
(2) The notices issued pursuant to this Section shall include the following:
(3) Not less than 30 days prior to the date set for hearing, the
municipality shall give notice by mail as provided in this subsection (b)
to all taxing districts, of which taxable property is included in the
economic development project area, and to the Department. In addition to
the other requirements under this subsection (b), the notice shall include
an invitation to the Department and each taxing district to submit comments
to the municipality concerning the subject matter of the hearing prior to
the date of hearing.
(c) At the public hearing any interested person, the Department or any
affected taxing district may file written objections with the municipal clerk
and may be heard orally with respect to any issues embodied in
the notice. The municipality shall hear and determine all alternate
proposals or bids for any proposed conveyance, lease, mortgage or other
disposition of land and all protests and
objections at the hearing, and the hearing may be adjourned to another date
without further notice other than a motion to be entered upon the minutes
fixing the time and place of the adjourned hearing.
Public hearings with regard to an economic development plan, economic
development project area, or economic development project may be held simultaneously.
(d) At the public hearing or at any time prior to the adoption by the
municipality of an ordinance approving an economic development plan, the
municipality may make changes in the economic development plan.
Changes which (1) alter the
exterior boundaries of the proposed economic development project area,
(2) substantially affect the general land uses established in the proposed
economic development plan, (3) substantially change the nature of the
proposed economic development project, (4) change the general description of
any proposed developer, user or tenant of any property to be located or
improved within the economic development project area, or (5) change the
description of the type, class and number of employees to be employed in
the operation of the facilities to be developed or improved within the
economic development project area shall be made only after notice and
hearing pursuant to the procedures set forth in this Section.
Changes which
do not (1) alter the exterior boundaries of a proposed economic development project area,
(2) substantially affect the general land uses established in the proposed
economic development plan, (3) substantially change the nature of the proposed economic
development project, (4) change the general description of any proposed
developer, user or tenant of any property to be located or improved within
the economic development project area, or (5) change the description of the
type, class and number of employees to be employed in the operation of the
facilities to be
developed or improved within the economic development project area may be
made without further hearing, provided that
the municipality shall give notice of its changes by mail to the Department
and to each affected taxing district and by publication in a newspaper or
newspapers of general circulation within the affected taxing districts.
Such notice by mail and by publication shall each occur not later than 10
days following the adoption by ordinance of such changes.
(e) At any time within 30 days of the final adjournment of the
public hearing, a municipality may, by ordinance, approve the economic
development plan, establish the economic development project area, and
authorize tax increment
allocation financing for such economic development project area. Any
ordinance adopted which approves an economic development plan shall
contain findings that the developer or any of its successor entities and its subsidiaries
shall create or retain
not less than 4,250 full-time equivalent jobs, that private investment in an
amount not less than $100,000,000 shall occur in the
economic development project area, that the economic development project
will encourage the increase of commerce and industry within the State,
thereby reducing the evils attendant upon unemployment and increasing
opportunities for personal income, and that the economic
development project will increase or maintain the property, sales and
income tax bases of the municipality and of the State. Any ordinance
adopted which establishes an economic development project area shall
contain the boundaries of such area by legal description and, where
possible, by street location. Any ordinance adopted which authorizes tax
increment allocation financing shall provide that the ad valorem taxes, if
any, arising from the levies upon taxable real property in such economic
development project area by taxing districts and tax rates determined in
the manner provided in subsection (b) of Section 6 of this Act each year
after the effective date of the ordinance until economic development
project costs and all municipal obligations financing economic development
project costs incurred under this Act have been paid shall be divided as follows:
(f) After a municipality has by ordinance approved an economic
development plan and established an economic development project area,
the plan may be amended and the
boundaries of the area may be altered only as herein provided.
Amendments which (1) alter the exterior boundaries of an economic development
project area, (2) substantially affect the general land uses established pursuant to the
economic development plan, (3) substantially change the
nature of the economic development project, (4) change
the general description
of any proposed developer, user, or tenant of any property to be located or
improved within the economic development project area, or (5) change the description
of the type, class and number of employees to be employed in the operation
of the facilities to be developed or improved within the economic
development project area, shall be made only after
notice and hearing pursuant to the procedures set forth in this Section.
Amendments which do not
(1) alter the boundaries of the economic
development project area,
(2) substantially affect the general land uses established in the economic
development plan, (3) substantially change the nature of the economic development
project, (4) change the general description of any proposed developer, user, or tenant
of any property to be located or improved within the economic development
project area, or (5) change the description of the type, class and number of employees
to be employed in the operation of the facilities
to be developed or improved within the economic development project area
may be made without further hearing, provided that
the municipality shall give
notice of any amendment by mail to the Department and to each taxing
district and by publication in a newspaper or newspapers of
general circulation within the affected taxing districts. Such notice by
mail and by publication shall each occur not later than 10 days following
the adoption by ordinance of any amendments.
(g) Extension of economic development project area; allocations; payment of outstanding claims; changes in equalized assessed valuation.
(h) Beginning on the effective date of this amendatory Act of the 97th General Assembly, the taxing districts shall meet annually 180 days after the close of the municipal fiscal year, or as soon as the economic development project audit for that fiscal year becomes available, to review the effectiveness and status of the economic development project area up to that date.
(Source: P.A. 97-636, eff. 6-1-12.)
 
(20 ILCS 620/4.5)
Sec. 4.5. Recapture.
(a) In the event that the developer terminates all of its operations and vacates the redevelopment area within 60 months after the effective date of this amendatory Act of the 97th General Assembly, the developer shall be required to remit to the Department an amount equal to the payments disbursed to the developer in 2014 and subsequent years under the Agreement. Within 30 days after receipt, the Department shall remit such funds to the county collector. The county collector shall thereafter make distribution to the respective taxing districts in the same manner and proportion as the most recent distribution by the county collector to those taxing districts of real property taxes from real property in the economic development project area.
(b) In the event the developer fails to maintain 4,250 jobs at any time before the termination of the economic development project area, except as provided in subsection (c), the developer shall forfeit an amount of its allocations from the special tax allocation fund for that time period in which the developer failed to maintain 4,250 jobs. The amount forfeited shall equal the percentage of the year that the developer failed to maintain 4,250 jobs multiplied by the amount the developer would have received if they maintained 4,250 jobs for the entire year. Any funds that are forfeited shall be distributed to the taxing districts in the same manner and proportion as the most recent distribution by the county collector to those taxing districts (inclusive of the municipality) in the economic development project area.
(c) In the event that the developer maintains no jobs at any time before the termination of the economic development project area, the municipality shall adopt an ordinance dissolving the special tax allocation fund for the economic development project area and terminating the economic development project area as an economic development project area. That ordinance shall be adopted no later than one year after the date that the developer maintains no jobs within the economic development project area. All excess moneys in the special tax allocation fund shall be distributed to the taxing districts in the same manner and proportion as the most recent distribution by the county collector to those taxing districts in the economic development project area.

(Source: P.A. 97-636, eff. 6-1-12.)
 
(20 ILCS 620/4.7)
Sec. 4.7. Municipal reports. After the effective date of this amendatory Act of the 97th General Assembly, a municipality shall submit in an electronic format all of the following information for each economic development project area (i) to the State Comptroller and (ii) to all taxing districts overlapping the economic development project area no later than 180 days after the close of each municipal fiscal year or as soon thereafter as the audited financial statements become available:
(Source: P.A. 97-636, eff. 6-1-12.)
 
(20 ILCS 620/5) (from Ch. 67 1/2, par. 1005)
Sec. 5. Submission to Department; certification by Department;
limitation on number of permissible economic development project areas.
(a) The municipality shall submit certified copies of any ordinances
adopted approving an economic development plan, establishing an
economic development project area, and authorizing tax increment allocation
financing for such economic development project area to the Department,
together with (1) a map of the economic
development project area, (2) a copy of the economic development plan as
approved, (3) an analysis, and any supporting documents and statistics,
demonstrating that the developer or any of its successor entities and its subsidiaries shall
create or retain
not less than 4,250 full-time equivalent jobs and that private investment
in the amount of not less than $100,000,000 shall occur
in the economic development project area, (4) an estimate of the economic
impact of the economic development project and the use of tax increment
allocation financing upon the revenues of the municipality and the affected
taxing districts, (5) a record of all public hearings had in connection
with the establishment of the economic development project area, and (6)
such other information as the Department by regulation may require.
(b) Upon receipt of an application from a municipality the Department
shall review the application to determine whether the economic development
project area qualifies as an economic development project area under this
Act. At its discretion, the Department may accept or reject the
application or may request such additional information as it deems
necessary or advisable to aid its review. If any such area is found to be
qualified to be an economic development project area, the Department shall
approve and certify such economic development project area and shall
provide written notice of its approval and certification to the municipality and
to the county clerk. In determining whether an economic development
project area shall be approved and certified, the Department shall consider
(1) whether, without public intervention, the State would suffer
substantial economic dislocation, such as relocation of a commercial
business or industrial or manufacturing facility to another state,
territory or country, or would not otherwise benefit from private
investment offering substantial employment opportunities and economic
growth, and (2) the impact on the revenues of the municipality and the
affected taxing districts of the use of tax increment allocation financing
in connection with the economic development project.
(c) On or before the date which is 18 months following the date on which
this Act becomes law, the Department shall submit to the General Assembly a
report detailing the number of economic development project areas it has
approved and certified, the number and type of jobs created or retained
therein, the aggregate amount of private investment therein, the impact on
the revenues of municipalities and affected taxing districts of the use of
tax increment allocation financing therein, and such additional information
as the Department may determine to be relevant. On or after the date which
is 20 months following the date on which this Act becomes law the authority
granted hereunder to municipalities to establish economic development
project areas and to adopt tax increment allocation financing in connection
therewith and to the Department to approve and certify economic development
project areas shall expire unless the General Assembly shall have
authorized municipalities and the Department to continue to exercise the
powers granted to them hereunder.

(Source: P.A. 97-636, eff. 6-1-12.)
 
(20 ILCS 620/6)
(from Ch. 67 1/2, par. 1006)
Sec. 6. Filing with county clerk; certification of initial equalized
assessed value.
(a) The municipality shall file a certified copy of any ordinance
authorizing tax increment allocation financing for an economic development
project area with the county clerk, and the county clerk shall immediately
thereafter determine (1) the most recently ascertained equalized assessed
value of each lot, block, tract or parcel of real property within the economic
development project area from which shall be deducted the homestead exemptions
provided by Sections 15-170, 15-175, and 15-176 of the Property
Tax Code, which value
shall be the "initial equalized assessed value" of each such piece of property,
and (2) the total equalized assessed value of all taxable real property within
the economic development project area by adding together the most recently
ascertained equalized assessed value of each taxable lot, block, tract, or
parcel of real property within such economic development project area, from
which shall be deducted the homestead exemptions provided under Article 15 of the Property Tax Code, and shall certify such
amount as the
"total initial equalized assessed value" of the taxable real property within
the economic development project area.
(b) After the county clerk has certified the "total initial equalized
assessed value" of the taxable real property in the economic development
project area, then in respect to every taxing district containing an
economic development project area, the county clerk or any other official
required by law to ascertain the amount of the equalized assessed value of
all taxable property within that taxing district for the purpose of
computing the rate per cent of tax to be extended upon taxable property
within that taxing district, shall in every year that tax increment
allocation financing is in effect ascertain the amount of value of taxable
property in an economic development project area by including in that
amount the lower of the current equalized assessed value or the certified
"total initial equalized assessed value" of all taxable real property in
such area. The rate per cent of tax determined shall be extended to the current
equalized assessed value of all property in the economic development project
area in the same manner as the rate per cent of tax is extended to all other
taxable property in the taxing district. The method of allocating taxes
established under this Section shall terminate when the municipality adopts an
ordinance dissolving the special tax allocation fund for the economic
development project area, terminating the economic development project area,
and terminating the use of tax increment allocation financing for the economic
development project area. This Act shall not be construed as relieving
property owners within an economic development project area from paying a
uniform rate of taxes upon the current equalized assessed value of their
taxable property as provided in the Property Tax Code.

(Source: P.A. 95-644, eff. 10-12-07.)
 
(20 ILCS 620/7) (from Ch. 67 1/2, par. 1007)
Sec. 7. Creation of special tax allocation fund. If a municipality
has adopted tax increment allocation financing for an economic development
project area by ordinance, the county clerk has thereafter certified the "total
initial equalized assessed value" of the taxable real property within such
economic development project area in the manner provided in Section 6 of this
Act, and the Department has approved and certified the economic development
project area, each year after the date of the certification by the county clerk
of the "total initial equalized assessed value" until economic development
project costs and all municipal obligations financing economic development
project costs have been paid, the ad valorem taxes, if any, arising from the
levies upon the taxable real property in the economic development project area
by taxing districts and tax rates determined in the manner provided in
subsection (b) of Section 6 of this Act shall be divided as follows:
(1) That portion of the taxes levied upon each taxable lot, block, tract
or parcel of real property which is attributable to the lower of the current
equalized assessed value or the initial equalized assessed value of each such
taxable lot, block, tract, or parcel of real property existing at the time tax
increment allocation financing was adopted, shall be allocated to and when
collected shall be paid by the county collector to the respective affected
taxing districts in the manner required by law in the absence of the adoption
of tax increment allocation financing.
(2) That portion, if any, of those taxes which is attributable to the
increase in the current equalized assessed valuation of each taxable lot,
block, tract, or parcel of real property in the economic development project
area, over and above the initial equalized assessed value of each property
existing at the time tax increment allocation financing was adopted,
shall be allocated to and when collected shall be paid to the municipal
treasurer, who shall deposit those taxes into a special fund called the special
tax allocation fund of the municipality for the purpose of paying economic
development project costs and obligations incurred in the payment thereof.
The municipality, by an ordinance adopting tax increment allocation
financing, may pledge the funds in and to be deposited in the special tax
allocation fund for the payment of obligations issued under this Act and for
the payment of economic development project costs. No part of the current
equalized assessed valuation of each property in the economic development
project area attributable to any increase above the total initial equalized
assessed value, of such properties shall be used in calculating the general
State school aid formula, provided for in Section 18-8 of the School Code, or the evidence-based funding formula, provided for in Section 18-8.15 of the School Code,
until such time as all economic development projects costs have been paid as
provided for in this Section.
When the economic development project costs, including without
limitation all municipal obligations financing economic development project
costs incurred under this Act, have been paid, all surplus funds then
remaining in the special tax allocation fund shall be distributed by being
paid by the municipal treasurer to the county collector, who shall
immediately thereafter pay those funds to the taxing districts having
taxable property in the economic development project area in the same
manner and proportion as the most recent distribution by the county
collector to those taxing districts of real property taxes from real
property in the economic development project area.
Upon the payment of all economic development project costs, retirement of
obligations and the distribution of any excess monies pursuant to this
Section the municipality shall adopt an ordinance dissolving the special
tax allocation fund for the economic development project area,
terminating the economic development project area, and terminating the use
of tax increment allocation financing for the economic development project
area. Thereafter the rates of the taxing districts shall be extended and taxes
levied, collected and distributed in the manner applicable in the absence of
the adoption of tax increment allocation financing.
Nothing in this Section shall be construed as relieving property in
economic development project areas from being assessed as provided in the
Property Tax Code, or as relieving
owners of that property from paying a uniform rate of taxes, as required by
Section 4 of Article IX of the Illinois Constitution.

(Source: P.A. 100-465, eff. 8-31-17.)
 
(20 ILCS 620/8) (from Ch. 67 1/2, par. 1008)
Sec. 8. Issuance of obligations for economic development project
costs.
Obligations secured by the special tax allocation fund provided for in
Section 7 of this Act for an economic development project area may be issued to
provide for economic development project costs. Those obligations, when so
issued, shall be retired in the manner provided in the ordinance
authorizing the issuance of the obligations by the receipts of taxes
levied as specified in Section 6 of this Act against the taxable property
included in
the economic development project area and by other revenue designated or
pledged by the municipality. A municipality may in the ordinance pledge
all or any part of the funds in and to be deposited in the special tax
allocation fund created pursuant to Section 7 of this Act to the payment of the
economic development project costs and obligations.
Whenever a municipality pledges all of the funds to the credit of a
special tax allocation fund to secure obligations issued or to be issued to
pay economic development project costs, the municipality may specifically
provide that funds remaining to the credit of such special tax allocation
fund after the payment of such obligations shall be accounted for annually
and shall be deemed to be "surplus" funds, and such "surplus" funds shall be
distributed as hereinafter provided. Whenever a municipality pledges less
than all of the monies to the credit of a special tax allocation fund to
secure obligations issued or to be issued to pay economic development
project costs, the municipality shall provide that monies to the credit of
the special tax allocation fund and not subject to such pledge or
otherwise encumbered or required for payment of contractual obligations
for specific economic development project costs shall be calculated
annually and shall be deemed to be "surplus" funds, and such "surplus"
funds shall be distributed as hereinafter provided. All funds to the
credit of a special tax allocation fund which are deemed to be "surplus"
funds shall be distributed annually within 180 days of the close of the
municipality's fiscal year by being paid by the municipal treasurer to the
county collector.
The county collector shall
thereafter make distribution to the respective taxing districts in the same
manner and proportion as the most recent distribution by the county
collector to those taxing districts of real property taxes from real
property in the economic development project area.
Without limiting the foregoing in this Section the municipality may, in
addition to obligations secured by the special tax allocation fund, pledge
for a period not greater than the term of the obligations towards payment
of those obligations any part or any combination of the following: (i) net
revenues of all or part of any economic development project; (ii) taxes
levied and collected on any or all property in the municipality, including,
specifically, taxes levied or imposed by the municipality in a special
service area pursuant to "An Act to provide the manner of levying or
imposing taxes for the provision of special services to areas within the
boundaries of home rule units and non-home rule municipalities and
counties", approved September 21, 1973, as now or hereafter amended; (iii) the
full faith and credit of the municipality; (iv) a mortgage on part or all
of the economic development project; or (v) any other taxes or anticipated
receipts that the municipality may lawfully pledge.
Such obligations may be issued in one or more series bearing interest at
such rate or rates as the corporate authorities of the municipality shall
determine by ordinance, which rate or rates may be variable or fixed,
without regard to any limitations contained in any law now in effect or
hereafter adopted. Such obligations shall bear such date or dates, mature
at such time or times not exceeding 38 years from their respective dates,
but in no event exceeding 38 years from the date of establishment of the
economic development project area, be in such denomination, be in such
form, whether coupon, registered or book-entry, carry such registration,
conversion and exchange privileges, be executed in such manner, be payable
in such medium of payment at such place or places within or without the
State of Illinois, contain such covenants, terms and conditions, be subject
to redemption with or without premium, be subject to defeasance upon such
terms, and have such rank or priority, as such ordinance shall provide.
Obligations issued pursuant to this Act may be sold at public or private
sale at such price as shall be determined by the corporate authorities of
the municipalities. Such obligations may, but need not, be issued utilizing
the provisions of any one or more of the omnibus bond Acts
specified in Section 1.33 of "An Act to revise the law in relation to the
construction of the statutes", approved March 5, 1874, as now or hereafter
amended. No referendum approval of the electors shall be required as a condition to
the issuance of obligations pursuant to this Act except as provided in this Section.
Whenever a municipality issues bonds for the purpose of financing
economic development project costs, the municipality may provide by
ordinance for the appointment of a trustee, which may be any trust company
within the State, and for the establishment of the funds or accounts to be
maintained by such trustee as the municipality shall deem necessary to
provide for the security and payment of the bonds. If the municipality
provides for the appointment of a trustee, the trustee shall be considered
the assignee of any payments assigned by the municipality pursuant to the
ordinance and this Section. Any amounts paid to the trustee as assignee
shall be deposited in the funds or accounts established pursuant to the
trust agreement, and shall be held by the trustee in trust for the benefit of
the holders
of the bonds, and the holders shall have a lien on and a security interest
in those bonds or accounts so long as the bonds remain outstanding and
unpaid. Upon retirement of the bonds, the trustee shall pay over any excess
amounts held to the municipality for deposit in the special tax allocation
fund.
In the event the municipality authorizes the issuance of obligations
pursuant to the authority of this Act secured by the full faith and
credit of the municipality, or pledges ad valorem taxes pursuant to clause
(ii) of the second paragraph of this Section, which obligations are other than
obligations
which may be issued under home rule powers provided by Article VII,
Section 6 of the Illinois Constitution or which ad valorem taxes are other than
ad valorem
taxes which may be pledged under home rule powers provided by Article VII, Section
6 of the Illinois Constitution or which are levied in a special service
area pursuant to "An Act to provide the manner of levying or imposing taxes
for the provision of special services to areas within the boundaries of
home rule units and non-home rule municipalities and counties", approved
September 21, 1973, as now or hereafter amended,
the ordinance authorizing the
issuance of those obligations or pledging those taxes shall be published
within 10 days after the ordinance has been adopted, in one or more
newspapers having a general circulation within the municipality. The
publication of the ordinance shall be accompanied by a notice of (1) the
specific number of voters required to sign a petition requesting the
question of the issuance of the obligations or pledging such ad valorem taxes
to be submitted to the electors; (2) the time within which the petition must
be filed; and (3) the date of the prospective referendum. The municipal
clerk shall provide a petition form to any individual requesting one.
If no petition is filed with the municipal clerk, as hereinafter provided
in this Section, within 21 days after the publication of the ordinance, the
ordinance shall be in effect. However, if within that 21 day period a petition
is filed with the municipal clerk, signed by electors numbering not less
than 15% of the number of electors voting for the mayor or president at the
last general municipal election, asking that the question of issuing
obligations using full faith and credit of the municipality as security for
the cost of paying for economic development project costs, or of pledging
such ad valorem taxes for the payment of those obligations, or both, be submitted
to the electors of the municipality, the municipality shall not be
authorized to issue obligations of the municipality using the full faith and
credit of the municipality as security or pledging such ad valorem taxes for the
payment of those obligations, or both, until the proposition
has been submitted to and approved by a majority of the voters voting on
the proposition at a regularly scheduled election. The municipality shall
certify the proposition to the proper election authorities for submission
in accordance with the general election law.
The ordinance authorizing the obligations may provide that the
obligations shall contain a recital that they are issued pursuant to this
Act, which recital shall be conclusive evidence of their validity and of
the regularity of their issuance.
In the event the municipality authorizes issuance of obligations pursuant
to this Act secured by the full faith and credit of the municipality, the
ordinance authorizing the obligations may provide for the levy and
collection of a direct annual tax upon all taxable property within the
municipality sufficient to pay the principal thereof and interest thereon
as it matures, which levy may be in addition to and exclusive of the
maximum of all other taxes authorized to be levied by the municipality,
which levy, however, shall be abated to the extent that monies from other
sources are available for payment of the obligations and the municipality
certifies the amount of those monies available to the county clerk.
A certified copy of the ordinance shall be filed with the county clerk
of each county in which any portion of the municipality is situated, and
shall constitute the authority for the extension and collection of the taxes
to be deposited in the special tax allocation fund.
A municipality may also issue its obligations to refund, in whole or in
part, obligations theretofore issued by the municipality under the
authority of this Act, whether at or prior to maturity. However,
the last maturity of the refunding obligations shall not be expressed
to mature later than 38 years from the date of the ordinance establishing
the economic development project area.
In the event a municipality issues obligations under home rule powers or
other legislative authority, the proceeds of which are pledged to pay for
economic development project costs, the municipality may, if it has
followed the procedures in conformance with this Act, retire those
obligations from funds in the special tax allocation fund in amounts and in
such manner as if those obligations had been issued pursuant to the
provisions of this Act.
No obligations issued pursuant to this Act shall be regarded as
indebtedness of the municipality issuing those obligations or any other
taxing district for the purpose of any limitation imposed by law.
Obligations issued pursuant to this Act shall not be subject to the
provisions of "An Act to authorize public corporations to issue bonds,
other evidences of indebtedness and tax anticipation warrants subject to
interest rate limitations set forth therein", approved May 26, 1970, as amended.

(Source: P.A. 97-636, eff. 6-1-12.)
 
(20 ILCS 620/8a)
Sec. 8a.
Cancellation and repayment of tax benefits.
Any tax abatement or
benefit granted by a taxing district under an agreement entered into under this
Act to a private individual or entity for the purpose of originating, locating,
maintaining, rehabilitating, or expanding a business facility shall be
cancelled if the individual or entity relocated its entire facility in
violation of the agreement, and the amount of the abatements or tax benefits
granted before the cancellation shall be repaid to the taxing district within
30 days, as provided in Section 18-183 of the Property Tax Code.

(Source: P.A. 89-591, eff. 8-1-96.)
 
(20 ILCS 620/9) (from Ch. 67 1/2, par. 1009)
Sec. 9. Powers of municipalities. In addition to powers which it may
now
have, any municipality has the power under this Act:
(a) To make and enter into all contracts necessary or incidental to the
implementation and furtherance of an economic development plan.
(b) Within an economic development project area, to acquire by purchase,
donation, lease or eminent domain, and to own, convey, lease, mortgage or
dispose of land and other real or personal property or rights or interests
therein; and to grant or acquire licenses, easements and options with
respect thereto, all in the manner and at such price the municipality
determines is reasonably necessary to achieve the objectives of the
economic development project. No conveyance, lease, mortgage, disposition
of land or other property acquired by the municipality, or agreement
relating to the development of property, shall be made or executed except
pursuant to prior official action of the municipality.
No conveyance, lease, mortgage or other disposition of land, and no
agreement relating to the development of property, shall be made without
making public disclosure of the terms and disposition of all bids and
proposals submitted to the municipality in connection therewith.
(c) To clear any area within an economic development project area by
demolition or removal of any existing buildings, structures, fixtures,
utilities or improvements, and to clear and grade land.
(d) To install, repair, construct, reconstruct or relocate public
streets, public utilities, and other public site improvements within or
without an economic development project area which are essential to the
preparation of an economic development project area for use in accordance
with an economic development plan.
(e) To renovate, rehabilitate, reconstruct, relocate, repair or remodel
any existing buildings, improvements, and fixtures within an economic
development project area.
(f) To construct, acquire, and operate public improvements, including but not limited to,
publicly owned buildings, structures, works, utilities or fixtures within any economic
development project area, subject to the restrictions of item (5) of subsection (e) of Section 3 of this Act.
(g) To issue obligations as provided in this Act.
(h) To fix, charge and collect fees, rents and charges for the use of
any building, facility or property or any portion thereof owned or leased
by the municipality within an economic development project area.
(i) To accept grants, guarantees, donations of property or labor, or any
other thing of value for use in connection with an economic development project.
(j) To pay or cause to be paid economic development project costs. Any
payments to be made by the municipality to developers or other
nongovernmental persons for economic development project costs incurred by
such developer or other nongovernmental person shall be made only pursuant
to the prior official action of the municipality evidencing an intent to
pay or cause to be paid such economic development project costs. A
municipality is not required to obtain any right, title or interest in any
real or personal property in order to pay economic development project
costs associated with such property. The municipality shall adopt such
accounting procedures as may be necessary to determine that such economic
development project costs are properly paid.
(k) To exercise any and all other powers necessary to effectuate the
purposes of this Act.
(l) To create a commission of not less than 5 or more than 15 persons to be
appointed by the mayor or president of the municipality with the consent of
the majority of the corporate authorities of the municipality. Members of a
commission shall be appointed for initial terms of 1, 2, 3, 4, and 5 years,
respectively, in such numbers as to provide that the terms of not more than
1/3 of all such members shall expire in any one year. Their successors
shall be appointed for a term of 5 years. The commission, subject to
approval of the corporate authorities, may exercise the powers enumerated in
this Section. The commission shall also have the power to hold the public
hearings required by this Act and make recommendations to the corporate
authorities concerning the approval of economic development plans, the
establishment of economic development project areas, and the adoption of
tax increment allocation financing for economic development project areas.

(Source: P.A. 97-636, eff. 6-1-12.)
 
(20 ILCS 620/9.5)
Sec. 9.5. Eminent domain. Notwithstanding any other provision of this Act, any power granted under this Act to acquire property by condemnation or eminent domain is subject to, and shall be exercised in accordance with, the Eminent Domain Act.

(Source: P.A. 94-1055, eff. 1-1-07.)
 
(20 ILCS 620/10) (from Ch. 67 1/2, par. 1010)
Sec. 10.
Conflicts of interest; disclosure.
If any member of the
corporate authorities of a municipality, or any employee or consultant of the
municipality involved in the planning, analysis, preparation or
administration of an economic development plan or an economic development
project, or any proposed economic development plan or any proposed economic
development project, owns or controls any interest, direct or indirect, in
any property included in any economic development project area or proposed
economic development project area, he or she shall disclose the same in
writing to the municipal clerk, which disclosure shall include the dates,
terms and conditions of any disposition of any such interest. The
disclosures shall be acknowledged by the corporate authorities of the
municipality and entered upon the official records and files of the
corporate authorities. Any such individual holding any such interest shall
refrain from any further official involvement regarding such established or
proposed economic development project area, economic development plan or
economic development project, and shall also refrain from voting on any
matter pertaining to that project, plan or area and from communicating with
any members of the corporate authorities or any employees or consultants of
the municipality regarding any matter relating to that project, plan or
area. No member of the corporate authorities of the municipality
and no employee of the municipality shall
acquire any interest, direct or indirect, in any real or personal property or
rights or interest therein within an economic development project area or a
proposed economic development project area after that person obtains
knowledge of the project, plan or area or after the first public notice of
the project, plan or area is given by the municipality, whichever shall first occur.

(Source: P.A. 86-38.)
 
(20 ILCS 620/11) (from Ch. 67 1/2, par. 1011)
Sec. 11. Payment of project costs; revenues from governmental property. Revenues received by a taxing district from any property, building or
facility owned, leased or operated by the taxing district or any agency or
authority established by the taxing district may be used to pay economic
development project costs, or reduce outstanding obligations of the
taxing district incurred under this Act for economic development project
costs. The taxing district may place those revenues in the special tax
allocation fund which shall be held by the treasurer of the taxing district or other
person designated by the taxing district. Revenue received by a taxing district
from the sale or other disposition of real or personal property or rights
or interests therein acquired by a taxing district with the proceeds of obligations funded by tax increment
allocation financing may be used to acquire and operate other governmental property that is within the economic development project area or that provides services within the economic development project area, subject to the restrictions of item (5) of subsection (e) of Section 3 of this Act.

(Source: P.A. 97-636, eff. 6-1-12.)

Structure Illinois Compiled Statutes