Illinois Compiled Statutes
Chapter 70 - SPECIAL DISTRICTS
70 ILCS 506/ - Eastern Illinois Economic Development Authority Act.

(70 ILCS 506/1)
Sec. 1. Short title. This Act may be cited as the Eastern Illinois
Economic Development Authority
Act.


(Source: P.A. 94-203, eff. 7-13-05.)
 
(70 ILCS 506/5)
Sec. 5. Findings. The General Assembly determines and declares the
following:
(Source: P.A. 94-203, eff. 7-13-05.)
 
(70 ILCS 506/10)
Sec. 10. Definitions. In this Act:
"Authority" means the Eastern Illinois Economic Development Authority.
"Governmental agency" means any federal, State, or local governmental body
and any agency or
instrumentality thereof, corporate or otherwise.
"Person" means any natural person, firm, partnership, corporation, both
domestic and foreign,
company, association or joint stock association and includes any trustee,
receiver, assignee or personal
representative thereof.
"Revenue bond" means any bond issued by the Authority, the principal and
interest of which is payable
solely from revenues or income derived from any project or activity of the
Authority.
"Board" means the Board of Directors of the Eastern Illinois Economic
Development Authority.
"Governor" means the Governor of the State of Illinois.
"City" means any city, village, incorporated town, or township within the
geographical territory of the
Authority.
"Industrial project" means the following:
"Housing project" or "residential project" includes a specific work or improvement undertaken to provide dwelling accommodations, including the acquisition, construction, or rehabilitation of lands, buildings, and community facilities, and to provide non-housing facilities which are an integral part of a planned large-scale project or new community.
"Commercial project" means any project, including, but not limited to, one or
more buildings and other
structures, improvements, machinery, and equipment, whether or not on the same
site or sites now existing
or hereafter acquired, suitable for use by any retail or wholesale concern,
distributorship, or agency.
"Project" means an industrial, housing, residential, commercial, or service
project, or any combination
thereof, provided that all uses fall within one of the categories described
above. Any project automatically
includes all site improvements and new construction involving sidewalks,
sewers, solid waste and
wastewater treatment and disposal sites and other pollution control facilities,
resource or waste reduction,
recovery, treatment and disposal facilities, parks, open spaces, wildlife
sanctuaries, streets, highways, and
runways.
"Lease agreement" means an agreement in which a project acquired by the
Authority by purchase, gift,
or lease is leased to any person or corporation that will use, or cause the
project to be used, as a project,
upon terms providing for lease rental payments at least sufficient to pay, when due, all principal of and
interest and premium, if any, on any bonds, notes, or other evidences of indebtedness of the Authority,
issued with respect to the project, providing for the maintenance, insurance, and operation of the project on
terms satisfactory to the Authority and providing for disposition of the project upon termination of the lease
term, including purchase options or abandonment of the premises, with other terms as may be deemed
desirable by the Authority.
"Loan agreement" means any agreement in which the Authority agrees to loan
the proceeds of its bonds,
notes, or other evidences of indebtedness, issued with respect to a project, to
any person or corporation
which will use or cause the project to be used as a project, upon terms
providing for loan repayment
installments at least sufficient to pay, when due, all principal of and
interest and premium, if any, on any
bonds, notes, or other evidences of indebtedness of the Authority issued with
respect to the project,
providing for maintenance, insurance, and operation of the project on terms
satisfactory to the Authority
and providing for other terms deemed advisable by the Authority.
"Financial aid" means the expenditure of Authority funds or funds provided by
the Authority for the
development, construction, acquisition or improvement of a project, through the
issuance of revenue bonds,
notes, or other evidences of indebtedness.
"Costs incurred in connection with
the development, construction, acquisition or improvement of a
project" means the following:
(Source: P.A. 98-750, eff. 1-1-15.)
 
(70 ILCS 506/15)
Sec. 15. Creation.
(a) There is created a political subdivision, body politic, and municipal
corporation named the Eastern
Illinois Economic Development Authority. The territorial jurisdiction of the
Authority is that geographic
area within the boundaries of the following counties: Ford, Iroquois, Piatt, Champaign, Vermilion, Douglas, Moultrie, Shelby, Coles, and Edgar and any
navigable waters and
air space located therein.
(b) The governing and administrative powers of the Authority shall be vested
in a body consisting of 14
members as follows:
(c) A majority of the members appointed under item (2) of subsection (b) of this Section shall constitute a quorum.
(d) The chairperson of the Authority shall be elected annually by the Board and must be a public member that resides within the territorial jurisdiction of the Authority.
(e) The terms of all initial members of the Authority shall begin 30 days
after the effective date of this
Act.
Of the 3 original public members appointed by the Governor, 1
shall serve until the third Monday in January, 2006; 1 shall serve until the
third Monday in January, 2007; 1 shall serve until the third Monday in January,
2008. The initial terms of the original public members appointed by the county board chairpersons shall be determined by lot, according to the following schedule: (i) 2 shall serve until the third Monday in January, 2006, (ii) 2 shall serve until the third Monday in January, 2007, (iii) 2 shall serve until the third Monday in January, 2008, (iv) 2 shall serve until the third Monday in January, 2009, and (v) 2 shall serve until the third Monday in January, 2010. All successors to these original
public
members shall be appointed by the original appointing authority and all appointments made by the Governor shall be made with the advice and consent of the Senate, pursuant to subsection (b), and shall hold office for a term of 6 years
commencing the third Monday in January of the year in which their term
commences, except in the case of an appointment to fill a vacancy.
Vacancies occurring among the public members shall be filled for the
remainder of the term. In case of
vacancy in a Governor-appointed membership when the Senate is not in session,
the Governor may make a
temporary appointment until the next meeting of the Senate when a person shall
be nominated to fill the
office and, upon confirmation by the Senate, he or she shall hold office during
the remainder of the term
and until a successor is appointed and qualified. Members of the Authority are
not entitled to
compensation for their services as members but are entitled to reimbursement
for all necessary expenses
incurred in connection with the performance of their duties as members.
(f) The Governor or a county board chairperson, as the case may be, may remove any public member of the Authority in case of
incompetence, neglect of
duty, or malfeasance in office. The chairperson of a county board may remove any
public member appointed
by that chairperson in the case of incompetence, neglect of duty, or malfeasance
in office.
(g) The Board shall appoint an Executive Director who shall have a
background in finance, including
familiarity with the legal and procedural requirements of issuing bonds, real
estate, or economic
development and administration. The Executive Director shall hold office at the
discretion of the Board.
The Executive Director shall be the chief administrative and operational
officer of the Authority, shall
direct and supervise its administrative affairs and general management, perform
such other duties as may
be prescribed from time to time by the members, and receive compensation fixed
by the Authority. The Department of Commerce and Economic Opportunity shall pay
the compensation of the Executive Director from appropriations received for
that purpose. The
Executive Director shall attend all meetings of the Authority. However, no
action of the Authority shall be
invalid on account of the absence of the Executive Director from a meeting. The
Authority may engage
the services of
the Illinois Finance Authority, attorneys, appraisers, engineers, accountants,
credit analysts, and other consultants if the Eastern Illinois Economic
Development Authority deems it advisable.

(Source: P.A. 94-203, eff. 7-13-05; 95-854, eff. 8-18-08.)
 
(70 ILCS 506/20)
Sec. 20. Duty. All official acts of the Authority shall require the
approval of at least 8 members. It
shall be the duty of the Authority to promote development within the geographic
confines of
Ford, Iroquois, Piatt, Champaign, Vermilion, Douglas, Moultrie, Shelby, Coles, and Edgar
counties. The Authority shall use the powers conferred upon it to assist in the
development, construction,
and acquisition of industrial, commercial, housing, or residential projects
within its territorial jurisdiction.

(Source: P.A. 94-203, eff. 7-13-05; 95-854, eff. 8-18-08.)
 
(70 ILCS 506/25)
Sec. 25. Powers.
(a) The Authority possesses all the powers of a body corporate necessary and
convenient to accomplish
the purposes of this Act, including, without any intended limitation upon the
general powers hereby
conferred, the following powers:
(b) The Authority shall not issue any bonds relating to the financing of a
project located within the
planning and subdivision control jurisdiction of any municipality or county
unless: (i) notice, including a
description of the proposed project and the financing for that project, is
submitted to the corporate
authorities of the municipality or, in the case of a proposed project in an
unincorporated area, to the county
board and (ii) the corporate authorities of the municipality do not, or the
county board does not, adopt a
resolution disapproving the project within 45 days after receipt of the notice.
(c) If any of the powers set forth in this Act are exercised within the
jurisdictional limits of any
municipality, all ordinances of the municipality remain in full force and
effect and are controlling.


(Source: P.A. 94-203, eff. 7-13-05.)
 
(70 ILCS 506/30)
Sec. 30. Tax avoidance. Notwithstanding any other provision of law, the
Authority shall not enter into
any agreement providing for the purchase and lease of tangible personal
property which results in the
avoidance of taxation under the Retailers' Occupation Tax Act, the Use Tax Act,
the Service Use Tax Act,
or the Service Occupation Tax Act, without the prior written consent of the
Governor.


(Source: P.A. 94-203, eff. 7-13-05.)
 
(70 ILCS 506/35)
Sec. 35. Bonds.
(a) The Authority, with the written approval of the Governor, shall have the
continuing power to issue
bonds, notes, or other evidences of indebtedness in an aggregate amount outstanding not to
exceed $500,000,000 for the
following purposes: (i) development, construction, acquisition, or improvement
of projects, including those
established by business entities locating or expanding property within the
territorial jurisdiction of the
Authority; (ii) entering into venture capital agreements with businesses
locating or expanding within the
territorial jurisdiction of the Authority; (iii) acquisition and improvement of
any property necessary and
useful in connection therewith; and (iv) for the purposes of the Employee
Ownership Assistance Act. For
the purpose of evidencing the obligations of the Authority to repay any money
borrowed, the Authority
may, pursuant to resolution, from time to time, issue and dispose of its interest-bearing revenue bonds,
notes, or other evidences of indebtedness and may also from time to time issue and dispose of such bonds,
notes, or other evidences of indebtedness to refund, at maturity, at a redemption date or in advance of
either, any bonds, notes, or other evidences of indebtedness pursuant to redemption provisions or at any
time before maturity. All such bonds, notes, or other evidences of indebtedness shall be payable solely and
only from the revenues or income to be derived from loans made with respect to projects, from the leasing
or sale of the projects, or from any other funds available to the Authority for such purposes. The bonds,
notes, or other evidences of indebtedness may bear such date or dates, may mature at such time or times not
exceeding 40 years from their respective dates, may bear interest at such rate or rates not exceeding the
maximum rate permitted by the Bond Authorization Act, may be in such form, may carry such registration
privileges, may be executed in such manner, may be payable at such place or places, may be made subject
to redemption in such manner and upon such terms, with or without premium, as is stated on the face
thereof, may be authenticated in such manner and may contain such terms and
covenants as may be
provided by an applicable resolution.
(b) The holder or holders of any bonds, notes, or other evidences of
indebtedness issued by the
Authority may bring suits at law or proceedings in equity to compel the
performance and observance by
any corporation or person or by the Authority or any of its agents or employees
of any contract or covenant
made with the holders of the bonds, notes, or other evidences of indebtedness,
to compel such corporation,
person, the Authority, and any of its agents or employees to perform any duties
required to be performed
for the benefit of the holders of the bonds, notes, or other evidences of
indebtedness by the provision of the
resolution authorizing their issuance and to enjoin the corporation, person,
the Authority, and any of its
agents or employees from taking any action in conflict with any contract or
covenant.
(c) If the Authority fails to pay the principal of or interest on any of the
bonds or premium, if any, as the
bond becomes due, a civil action to compel payment may be instituted in the
appropriate circuit court by
the holder or holders of the bonds on which the default of payment exists or by
an indenture trustee acting
on behalf of the holders. Delivery of a summons and a copy of the complaint to
the chairman of the Board
shall constitute sufficient service to give the circuit court jurisdiction over
the subject matter of the suit and
jurisdiction over the Authority and its officers named as defendants for the
purpose of compelling such
payment. Any case, controversy, or cause of action concerning the validity of
this Act relates to the
revenue of the State of Illinois.
(d) Notwithstanding the form and tenor of any bond, note, or other evidence
of indebtedness and in
the absence of any express recital on its face that it is non-negotiable, all
such bonds, notes, and other
evidences of indebtedness shall be negotiable instruments. Pending the
preparation and execution of any
bonds, notes, or other evidences of indebtedness, temporary bonds, notes, or
evidences of indebtedness may
be issued as provided by ordinance.
(e) To secure the payment of any or all of such bonds, notes, or other
evidences of indebtedness, the
revenues to be received by the Authority from a lease agreement or loan
agreement shall be pledged, and,
for the purpose of setting forth the covenants and undertakings of the
Authority in connection with the
issuance of the bonds, notes, or other evidences of indebtedness and the
issuance of any additional bonds,
notes or other evidences of indebtedness payable from such revenues, income, or other funds to be derived
from projects, the Authority may execute and deliver a mortgage or trust agreement. A remedy for any
breach or default of the terms of any mortgage or trust agreement by the Authority may be by mandamus
proceeding in the appropriate circuit court to compel performance and compliance under the terms of the
mortgage or trust agreement, but the trust agreement may prescribe by whom or on whose behalf the action
may be instituted.
(f) Bonds or notes shall be secured as provided in the authorizing ordinance which may include,
notwithstanding any other provision of this Act, in addition to any other security, a specific pledge,
assignment of and lien on, or security interest in any or all revenues or money of the Authority, from
whatever source, which may, by law, be used for debt service purposes and a
specific pledge, or assignment
of and lien on, or security interest in any funds or accounts established or
provided for by ordinance of the
Authority authorizing the issuance of the bonds or notes.
(g) The State of Illinois pledges to and agrees with the holders of the
bonds and notes of the Authority
issued pursuant to this Section that the State will not limit or alter the rights and powers vested in the
Authority by this Act so as to impair the terms of any contract made by the Authority with the holders of
bonds or notes or in any way impair the rights and remedies of those holders until the bonds and notes,
together with interest thereon, with interest on any unpaid installments of interest, and all costs and
expenses in connection with any action or proceedings by or on behalf of the holders, are fully met and
discharged. In addition, the State pledges to and agrees with the holders of the bonds and notes of the
Authority issued pursuant to this Section that the State will not limit or alter the basis on which State funds
are to be paid to the Authority as provided in this Act, or the use of such funds, so as to impair the terms of
any such contract. The Authority is authorized to include these pledges and agreements of the State in any
contract with the holders of bonds or notes issued pursuant to this Section.
(h) (Blank).


(Source: P.A. 100-573, eff. 12-29-17.)
 
(70 ILCS 506/40)
Sec. 40. Bonds and notes; exemption from taxation. The creation of the
Authority is in all respects for
the benefit of the people of Illinois and for the improvement of their health,
safety, welfare, comfort, and
security, and its purposes are public purposes. In consideration thereof, the
notes and bonds of the
Authority issued pursuant to this Act and the income from these notes and bonds
may be free from all
taxation by the State or its political subdivisions, except for

estate,
transfer, and inheritance taxes. The
exemption from taxation provided by the preceding sentence shall apply to the
income on any notes or
bonds of the Authority only if the Authority in its sole judgment determines
that the exemption enhances
the marketability of the bonds or notes or reduces the interest rates that
would otherwise be borne by the
bonds or notes. For purposes of Section 250 of the Illinois Income Tax Act, the
exemption of the Authority
shall terminate after all of the bonds have been paid. The amount of such income that shall be added and
then subtracted on the Illinois income tax return of a taxpayer, subject to Section 203 of the Illinois Income
Tax Act, from federal adjusted gross income or federal taxable income in computing Illinois base income
shall be the interest net of any bond premium amortization.

(Source: P.A. 94-203, eff. 7-13-05; 95-331, eff. 8-21-07.)
 
(70 ILCS 506/45)
Sec. 45. Acquisition.
(a) The Authority may, but need not, acquire title to any project with
respect to which it exercises its
authority.
(b) The Authority shall have power to acquire by purchase, lease, gift, or
otherwise any property or
rights therein from any person or persons, the State of Illinois, any municipal
corporation, any local unit of
government, the government of the United States and any agency or
instrumentality of the United States,
any body politic, or any county useful for its purposes, whether improved for
the purposes of any
prospective project or unimproved. The Authority may also accept any donation
of funds for its purposes
from any of these sources.
(c) The Authority shall have power to develop, construct, and improve,
either under its own direction or
through collaboration with any approved applicant, or to acquire, through
purchase or otherwise, any
project, using for this purpose the proceeds derived from its sale of revenue
bonds, notes, or other
evidences of indebtedness or governmental loans or grants and shall have the
power to hold title to those
projects in the name of the Authority.
(d) The Authority shall have the power to enter into intergovernmental
agreements with the State of
Illinois, the counties of Ford, Iroquois, Piatt, Champaign, Vermilion, Douglas, Moultrie, Shelby, Coles, or Edgar, the Illinois
Development Finance Authority, the Illinois Housing
Development Authority, the Illinois Education Facilities Authority, the
Illinois
Farm
Development Authority, the Rural Bond Bank,
the United States government and any agency or instrumentality of the United
States, any unit
of local government located within the territory of the Authority, or any other
unit of government to the
extent allowed by Article VII, Section 10 of the Illinois Constitution and the
Intergovernmental
Cooperation Act.
(e) The Authority shall have the power to share employees with other units
of government, including
agencies of the United States, agencies of the State of Illinois, and agencies
or personnel of any unit of
local government.
(f) The Authority shall have the power to exercise powers and issue bonds as
if it were a municipality so
authorized in Divisions 12.1, 74, 74.1, 74.3, and 74.5 of Article 11 of the
Illinois Municipal Code.


(Source: P.A. 94-203, eff. 7-13-05.)
 
(70 ILCS 506/55)
Sec. 55. Designation of depository. The Authority shall biennially
designate a national or State bank or
banks as depositories of its money. Such depositories shall be designated only
within the State and upon
condition that bonds approved as to form and surety by the Authority and at
least equal in amount to the
maximum sum expected to be on deposit at any one time shall be first given by
such depositories to the
Authority, such bonds to be conditioned for the safe keeping and prompt
repayment of such deposits.
When any of the funds of the Authority shall be deposited by the treasurer in
any such depository, the
treasurer and the sureties on his or her official bond shall, to such extent, be
exempt from liability for the loss of
any such deposited funds by reason of the failure, bankruptcy, or any other act
or default of such depository;
provided that the Authority may accept assignments of collateral by any
depository of its funds to secure
such deposits to the same extent and conditioned in the same manner as
assignments of collateral are
permitted by law to secure deposits of the funds of any city.


(Source: P.A. 94-203, eff. 7-13-05.)
 
(70 ILCS 506/60)
Sec. 60. Taxation prohibited. The Authority shall have no right or
authority to levy any tax or special
assessment, to pledge the credit of the State or any other subdivision or
municipal corporation thereof, or to
incur any obligation enforceable upon any property, either within or without
the territory of the Authority.


(Source: P.A. 94-203, eff. 7-13-05.)
 
(70 ILCS 506/65)
Sec. 65. Fees. The Authority may collect fees and charges in connection
with its loans, commitments,
and servicing and may provide technical assistance in the development of the
region.


(Source: P.A. 94-203, eff. 7-13-05.)
 
(70 ILCS 506/70)
Sec. 70. Reports. The Authority shall annually submit a report of its
finances to the Auditor General.
The Authority shall annually submit a report of its activities to the Governor
and to the General Assembly.


(Source: P.A. 94-203, eff. 7-13-05.)
 
(70 ILCS 506/999)
Sec. 999. Effective date. This Act takes effect upon becoming law.

(Source: P.A. 94-203, eff. 7-13-05.)

Structure Illinois Compiled Statutes