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1 | - | Public Act 103-0646 | |
2 | 1 | SB3679 EnrolledLRB103 39381 AWJ 69554 b SB3679 Enrolled LRB103 39381 AWJ 69554 b | |
3 | 2 | SB3679 Enrolled LRB103 39381 AWJ 69554 b | |
4 | - | AN ACT concerning local government. | |
5 | - | Be it enacted by the People of the State of Illinois, | |
6 | - | represented in the General Assembly: | |
7 | - | Section 1. Short title. This Act may be cited as the | |
8 | - | Business Improvement District Law. | |
9 | - | Section 5. Purpose. The General Assembly finds that it is | |
10 | - | in the interest of the State of Illinois to promote the | |
11 | - | economic revitalization and physical maintenance of business | |
12 | - | districts in order to create jobs, attract new businesses, | |
13 | - | retain existing businesses, increase public safety, and spur | |
14 | - | new investments. The General Assembly finds that this purpose | |
15 | - | may best be accomplished by allowing business improvement | |
16 | - | districts to fund business-related activities and improvements | |
17 | - | through the levy of district charges upon the owners of real | |
18 | - | property that receive benefits from those activities and | |
19 | - | improvements. | |
20 | - | Section 7. Applicability. This Act applies only to | |
21 | - | municipalities having a population exceeding 500,000. | |
22 | - | Section 10. Definitions. As used in this Act: | |
23 | - | "Activities" means services provided for the purpose of | |
24 | - | conferring benefit upon assessed owners of property located | |
3 | + | 1 AN ACT concerning local government. | |
4 | + | 2 Be it enacted by the People of the State of Illinois, | |
5 | + | 3 represented in the General Assembly: | |
6 | + | 4 Section 1. Short title. This Act may be cited as the | |
7 | + | 5 Business Improvement District Law. | |
8 | + | 6 Section 5. Purpose. The General Assembly finds that it is | |
9 | + | 7 in the interest of the State of Illinois to promote the | |
10 | + | 8 economic revitalization and physical maintenance of business | |
11 | + | 9 districts in order to create jobs, attract new businesses, | |
12 | + | 10 retain existing businesses, increase public safety, and spur | |
13 | + | 11 new investments. The General Assembly finds that this purpose | |
14 | + | 12 may best be accomplished by allowing business improvement | |
15 | + | 13 districts to fund business-related activities and improvements | |
16 | + | 14 through the levy of district charges upon the owners of real | |
17 | + | 15 property that receive benefits from those activities and | |
18 | + | 16 improvements. | |
19 | + | 17 Section 7. Applicability. This Act applies only to | |
20 | + | 18 municipalities having a population exceeding 500,000. | |
21 | + | 19 Section 10. Definitions. As used in this Act: | |
22 | + | 20 "Activities" means services provided for the purpose of | |
23 | + | 21 conferring benefit upon assessed owners of property located | |
25 | 24 | ||
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31 | - | within a business improvement district, including, but not | |
32 | - | limited to: | |
33 | - | (1) promotion of events taking place within the | |
34 | - | business improvement district; | |
35 | - | (2) furnishing of music; | |
36 | - | (3) marketing and economic development, including | |
37 | - | retail retention and recruitment; | |
38 | - | (4) providing security, sanitation, graffiti removal, | |
39 | - | street and sidewalk cleaning, and other services | |
40 | - | supplemental to base services; and | |
41 | - | (5) other services provided for the purpose of | |
42 | - | conferring benefit upon assessed owners of property | |
43 | - | located within the business improvement district. | |
44 | - | "Activities" does not include lobbying, as that term is | |
45 | - | defined in Section 2 of the Lobbyist Registration Act and | |
46 | - | Chapter 2-156 of the Municipal Code of Chicago. | |
47 | - | "Base services" means services provided by any public | |
48 | - | entity, or paid for wholly or in part out of public funds, | |
49 | - | generally throughout a municipality to real property within | |
50 | - | the municipality. | |
51 | - | "Business improvement district" means a contiguous area | |
52 | - | within a municipality in which activities, improvements, or | |
53 | - | activities and improvements are provided in addition to base | |
54 | - | services. Territory shall be considered contiguous for | |
55 | - | purposes of this Act even though certain completely surrounded | |
56 | - | portions of the territory are excluded from the business | |
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32 | + | 1 within a business improvement district, including, but not | |
33 | + | 2 limited to: | |
34 | + | 3 (1) promotion of events taking place within the | |
35 | + | 4 business improvement district; | |
36 | + | 5 (2) furnishing of music; | |
37 | + | 6 (3) marketing and economic development, including | |
38 | + | 7 retail retention and recruitment; | |
39 | + | 8 (4) providing security, sanitation, graffiti removal, | |
40 | + | 9 street and sidewalk cleaning, and other services | |
41 | + | 10 supplemental to base services; and | |
42 | + | 11 (5) other services provided for the purpose of | |
43 | + | 12 conferring benefit upon assessed owners of property | |
44 | + | 13 located within the business improvement district. | |
45 | + | 14 "Activities" does not include lobbying, as that term is | |
46 | + | 15 defined in Section 2 of the Lobbyist Registration Act and | |
47 | + | 16 Chapter 2-156 of the Municipal Code of Chicago. | |
48 | + | 17 "Base services" means services provided by any public | |
49 | + | 18 entity, or paid for wholly or in part out of public funds, | |
50 | + | 19 generally throughout a municipality to real property within | |
51 | + | 20 the municipality. | |
52 | + | 21 "Business improvement district" means a contiguous area | |
53 | + | 22 within a municipality in which activities, improvements, or | |
54 | + | 23 activities and improvements are provided in addition to base | |
55 | + | 24 services. Territory shall be considered contiguous for | |
56 | + | 25 purposes of this Act even though certain completely surrounded | |
57 | + | 26 portions of the territory are excluded from the business | |
57 | 58 | ||
58 | 59 | ||
59 | - | improvement district. For purposes of this Act, parcels are | |
60 | - | within the same contiguous area if they touch or join one | |
61 | - | another in a reasonably substantial physical sense or if they | |
62 | - | meet the criteria for annexation to a municipality under | |
63 | - | Section 7-1-1 of the Illinois Municipal Code. | |
64 | - | "Clerk" means the municipal clerk. | |
65 | - | "District charge" means a charge levied on behalf of a | |
66 | - | business improvement district for the purpose of acquiring, | |
67 | - | constructing, installing, or maintaining improvements or | |
68 | - | providing activities that will confer special benefits upon | |
69 | - | assessed property owners within the business improvement | |
70 | - | district. District charges levied for the purpose of | |
71 | - | conferring special benefits upon assessed property owners | |
72 | - | within a business improvement district are not taxes for the | |
73 | - | general benefit of a municipality, even if real property or | |
74 | - | persons not charged receive incidental or collateral | |
75 | - | beneficial effects. | |
76 | - | "District management association" means a private or | |
77 | - | not-for-profit entity that enters into a contract with a board | |
78 | - | of directors of a business improvement district to administer | |
79 | - | or implement activities and improvements specified in the | |
80 | - | district plan for a business improvement district. A district | |
81 | - | management association shall not be considered a public entity | |
82 | - | for any purpose. | |
83 | - | "District plan" means a proposal for a business | |
84 | - | improvement district that contains the information described | |
85 | 60 | ||
86 | 61 | ||
87 | - | in Section 15. | |
88 | - | "Governing body" means the corporate authorities of a | |
89 | - | municipality. | |
90 | - | "Improvements" means the acquisition, construction, | |
91 | - | installation, or maintenance of any tangible property provided | |
92 | - | for the purpose of conferring benefit upon assessed property | |
93 | - | owners located within a business improvement district. | |
94 | - | "Property owner" or "owner" means the record owner of fee | |
95 | - | simple interest in a real property subject to assessment, | |
96 | - | which will be deemed to be the person or entity that pays | |
97 | - | property taxes on the real property according to county | |
98 | - | records, unless another person or entity establishes to the | |
99 | - | municipality by clear and convincing evidence that they are | |
100 | - | the record owner of the fee simple interest. | |
101 | - | "Public entity" means (i) the State or any agency, board, | |
102 | - | or commission of the State, (ii) any school district, or (iii) | |
103 | - | any unit of local government. | |
104 | - | Section 15. District plan. | |
105 | - | (a) A business improvement district established under this | |
106 | - | Act is subject to and governed by a district plan, as may be | |
107 | - | amended as set forth in Section 60, and filed with the clerk. A | |
108 | - | district plan shall be prepared by the property owner or | |
109 | - | owners who submit the written petition to the clerk under | |
110 | - | Section 30. | |
111 | - | (b) The district plan shall include, but need not be | |
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113 | 65 | ||
114 | - | limited to, the following: | |
115 | - | (1) The name of the business improvement district. | |
116 | - | (2) A map of the business improvement district in | |
117 | - | sufficient detail to allow a property owner to reasonably | |
118 | - | determine whether a parcel of real property is located | |
119 | - | within the boundaries of the business improvement | |
120 | - | district. | |
121 | - | (3) A description of the boundaries of the business | |
122 | - | improvement district in a manner sufficient to identify | |
123 | - | the real property included in the business improvement | |
124 | - | district. | |
125 | - | (4) The initial term of the business improvement | |
126 | - | district. | |
127 | - | (5) A statement identifying the activities and | |
128 | - | improvements within the business improvement district that | |
129 | - | may be provided from time to time for which property | |
130 | - | owners will be charged and that the activities and | |
131 | - | improvements that are provided may vary from year to year | |
132 | - | and may differ by class. | |
133 | - | (6) A statement identifying the maximum amount of the | |
134 | - | annual district charge to be levied and that the maximum | |
135 | - | amount of the annual district charge levied may vary from | |
136 | - | year to year. | |
137 | - | (7) A statement identifying the maximum amount of | |
138 | - | total district charges to be levied for the term of the | |
139 | - | business improvement district. | |
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68 | + | 1 improvement district. For purposes of this Act, parcels are | |
69 | + | 2 within the same contiguous area if they touch or join one | |
70 | + | 3 another in a reasonably substantial physical sense or if they | |
71 | + | 4 meet the criteria for annexation to a municipality under | |
72 | + | 5 Section 7-1-1 of the Illinois Municipal Code. | |
73 | + | 6 "Clerk" means the municipal clerk. | |
74 | + | 7 "District charge" means a charge levied on behalf of a | |
75 | + | 8 business improvement district for the purpose of acquiring, | |
76 | + | 9 constructing, installing, or maintaining improvements or | |
77 | + | 10 providing activities that will confer special benefits upon | |
78 | + | 11 assessed property owners within the business improvement | |
79 | + | 12 district. District charges levied for the purpose of | |
80 | + | 13 conferring special benefits upon assessed property owners | |
81 | + | 14 within a business improvement district are not taxes for the | |
82 | + | 15 general benefit of a municipality, even if real property or | |
83 | + | 16 persons not charged receive incidental or collateral | |
84 | + | 17 beneficial effects. | |
85 | + | 18 "District management association" means a private or | |
86 | + | 19 not-for-profit entity that enters into a contract with a board | |
87 | + | 20 of directors of a business improvement district to administer | |
88 | + | 21 or implement activities and improvements specified in the | |
89 | + | 22 district plan for a business improvement district. A district | |
90 | + | 23 management association shall not be considered a public entity | |
91 | + | 24 for any purpose. | |
92 | + | 25 "District plan" means a proposal for a business | |
93 | + | 26 improvement district that contains the information described | |
140 | 94 | ||
141 | 95 | ||
142 | - | (8) A statement identifying the proposed source or | |
143 | - | sources of financing, including the proposed method and | |
144 | - | basis of levying an assessment, in sufficient detail to | |
145 | - | allow each property owner to calculate (i) the estimated | |
146 | - | amount of the district charge to be levied upon the | |
147 | - | property owner annually, (ii) the maximum amount of the | |
148 | - | district charge that could be levied upon the property | |
149 | - | owner annually, and (iii) the total amount of the district | |
150 | - | charges that could be levied upon the property owner for | |
151 | - | the term of the business improvement district. | |
152 | - | (9) Any interest or penalties that may be imposed for | |
153 | - | delinquent payment of a district charge. | |
154 | - | (10) A list of the real property subject to a district | |
155 | - | charge, and a statement of any proposed classifications. | |
156 | - | The list shall include the permanent tax index number of | |
157 | - | each parcel located within the business improvement | |
158 | - | district. | |
159 | - | (11) A statement of the real property classes exempt | |
160 | - | from charge, and a list of the real property to be | |
161 | - | exempted. | |
162 | - | (12) A statement identifying the proposed procedures | |
163 | - | for renewal, subject to the limitations under Section 55. | |
164 | - | (13) A statement identifying the district management | |
165 | - | association and the district management association's | |
166 | - | anticipated liability insurance coverage limits if the | |
167 | - | business improvement district will be contracting with a | |
168 | 96 | ||
169 | 97 | ||
170 | - | district management association. | |
171 | - | (14) A statement identifying how unspent revenue | |
172 | - | collected from district charges may be allocated, carried | |
173 | - | over year to year, or returned to the assessed property | |
174 | - | owners at the end of each year by applying the same method | |
175 | - | and basis that was used to calculate the district charges | |
176 | - | levied throughout the term of the business improvement | |
177 | - | district. | |
178 | - | (15) The manner by which an assessed property owner | |
179 | - | may contest the calculation of a specific district charge. | |
180 | - | (16) A statement identifying the business improvement | |
181 | - | district's governance structure. The governance structure | |
182 | - | shall include a board of directors, and the statement | |
183 | - | shall identify the size of the board, the manner in which | |
184 | - | directors are elected or appointed to serve on the board, | |
185 | - | the term of the board members, and any other details | |
186 | - | required under Section 50 of this Act. | |
187 | - | (17) The anticipated annual percentage of total | |
188 | - | district charges that will be allocated for administrative | |
189 | - | expenses to operate and maintain the business improvement | |
190 | - | district. | |
191 | - | (18) A statement identifying if a class or classes of | |
192 | - | real property exempt from district charges may elect to | |
193 | - | have a district charge levied against the property for the | |
194 | - | purposes of receiving benefits from the business | |
195 | - | improvement district. If the district plan authorizes this | |
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196 | 100 | ||
197 | 101 | ||
198 | - | elective participation, the district plan must also | |
199 | - | identify the process by which the property owner | |
200 | - | affirmatively elects to participate, the maximum annual | |
201 | - | amount of district charges to be levied against the | |
202 | - | property owner, and the maximum amount of total district | |
203 | - | charges to be levied against the property owner for the | |
204 | - | term of the business improvement district. | |
205 | - | (19) Any proposed rules and regulations to be applied | |
206 | - | to the business improvement district. | |
207 | - | Section 20. Assessments and district charges. | |
208 | - | (a) Each district plan shall provide for an assessment | |
209 | - | levied upon property owners owning property within the | |
210 | - | business improvement district upon which district charges are | |
211 | - | based, except an assessment may not be levied against a public | |
212 | - | entity even if the public entity owns property within the | |
213 | - | business improvement district. Unless the district plan | |
214 | - | provides for elective participation and the property owner | |
215 | - | elects to have a district charge assessed and levied upon the | |
216 | - | property owner, assessments may not be levied upon property | |
217 | - | owners owning property within the business improvement | |
218 | - | district that is classified for purposes of taxation under | |
219 | - | established ordinance by the local county board as residential | |
220 | - | or exempt from taxation, except that for properties located in | |
221 | - | Cook County, this only applies to properties granted Class 0 | |
222 | - | and Class 2 classification under the classification system for | |
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104 | + | 1 in Section 15. | |
105 | + | 2 "Governing body" means the corporate authorities of a | |
106 | + | 3 municipality. | |
107 | + | 4 "Improvements" means the acquisition, construction, | |
108 | + | 5 installation, or maintenance of any tangible property provided | |
109 | + | 6 for the purpose of conferring benefit upon assessed property | |
110 | + | 7 owners located within a business improvement district. | |
111 | + | 8 "Property owner" or "owner" means the record owner of fee | |
112 | + | 9 simple interest in a real property subject to assessment, | |
113 | + | 10 which will be deemed to be the person or entity that pays | |
114 | + | 11 property taxes on the real property according to county | |
115 | + | 12 records, unless another person or entity establishes to the | |
116 | + | 13 municipality by clear and convincing evidence that they are | |
117 | + | 14 the record owner of the fee simple interest. | |
118 | + | 15 "Public entity" means (i) the State or any agency, board, | |
119 | + | 16 or commission of the State, (ii) any school district, or (iii) | |
120 | + | 17 any unit of local government. | |
121 | + | 18 Section 15. District plan. | |
122 | + | 19 (a) A business improvement district established under this | |
123 | + | 20 Act is subject to and governed by a district plan, as may be | |
124 | + | 21 amended as set forth in Section 60, and filed with the clerk. A | |
125 | + | 22 district plan shall be prepared by the property owner or | |
126 | + | 23 owners who submit the written petition to the clerk under | |
127 | + | 24 Section 30. | |
128 | + | 25 (b) The district plan shall include, but need not be | |
223 | 129 | ||
224 | 130 | ||
225 | - | assessment in effect when the assessment is levied. District | |
226 | - | charges shall be levied at a rate or amount sufficient to | |
227 | - | produce revenues required to provide the activities and | |
228 | - | improvements specified in the district plan, except a district | |
229 | - | charge may not be levied against a single property owner that | |
230 | - | exceeds 20% of the total district charges assessed in the | |
231 | - | business improvement district. The revenue from the levy of | |
232 | - | district charges within a business improvement district may | |
233 | - | not be used to provide services outside the business | |
234 | - | improvement district or for any purpose other than the | |
235 | - | purposes set forth in the ordinance adopting the district | |
236 | - | plan. The business improvement district is not required to use | |
237 | - | revenue from the levy of district charges within a business | |
238 | - | improvement district to provide services to any property | |
239 | - | wherein a district charge is not levied against the property | |
240 | - | owner. | |
241 | - | (b) District charges shall be levied on the basis of the | |
242 | - | estimated benefit to the real property located within the | |
243 | - | business improvement district. In determining the assessment, | |
244 | - | the board of directors of a business improvement district may | |
245 | - | reasonably classify real property for purposes of determining | |
246 | - | benefit if so provided in the district plan. The | |
247 | - | classification may be based on various factors, including, as | |
248 | - | applicable, square footage, geography, or any other factor | |
249 | - | reasonably relating to the benefit received. Certain classes | |
250 | - | may be specified in the district plan as exempted from being | |
251 | 131 | ||
252 | 132 | ||
253 | - | charged if they would not receive a special benefit from the | |
254 | - | activities and improvements. District charges need not be | |
255 | - | imposed on different classes on the same basis or the same | |
256 | - | rate. | |
257 | - | (c) District charges levied upon property owners owning | |
258 | - | property within the business improvement district may be | |
259 | - | billed and collected as follows: | |
260 | - | (1) the county collector of the county in which a | |
261 | - | business improvement district is located may bill and | |
262 | - | collect district charges with the regular property tax | |
263 | - | bills of the county if requested by a municipality within | |
264 | - | its jurisdiction that has established a business | |
265 | - | improvement district; however, no municipality is required | |
266 | - | to make this request of its county collector. If the | |
267 | - | county collector agrees to bill and collect district | |
268 | - | charges with the regular property tax bills of the county, | |
269 | - | then the applicable district plan shall be filed with the | |
270 | - | county collector and the annual amount due as set forth by | |
271 | - | the board of directors of a business improvement district | |
272 | - | shall become due in installments at the times property | |
273 | - | taxes shall become due in accordance with each regular | |
274 | - | property tax bill payable during the year in which the | |
275 | - | district charge comes due. The county collector shall | |
276 | - | promptly remit the district charges collected to the | |
277 | - | municipality; or | |
278 | - | (2) if the county collector does not agree to bill and | |
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279 | 135 | ||
280 | 136 | ||
281 | - | collect district charges with the regular property tax | |
282 | - | bills of the county or the municipality that has | |
283 | - | established the business improvement district declines to | |
284 | - | request the county collector to do so, then the | |
285 | - | municipality shall bill and collect the district charges, | |
286 | - | either directly or through a third party, and the annual | |
287 | - | amount due as set forth by the board of directors of the | |
288 | - | business improvement district in accordance with the | |
289 | - | district plan shall become due in installments on or about | |
290 | - | the times property taxes would otherwise become due in | |
291 | - | accordance with each regular property tax bill payable | |
292 | - | during the year in which the district charge comes due. | |
293 | - | The governmental unit shall not bill the business | |
294 | - | improvement district for the cost of billing and | |
295 | - | collecting the district charges, but may pass on the | |
296 | - | actual costs incurred if using a third party to bill and | |
297 | - | collect the district charges. | |
298 | - | (d) District charges shall be payable at the times and in | |
299 | - | the manner set forth in the applicable bill. Delinquent | |
300 | - | payments for district charges levied pursuant to this Act may | |
301 | - | be charged interest and penalties as may be set forth in the | |
302 | - | district plan. | |
303 | - | (e) District charges shall promptly, and in no case later | |
304 | - | than 90 days after collection, be remitted by the municipality | |
305 | - | to the board of directors of a business improvement district. | |
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139 | + | 1 limited to, the following: | |
140 | + | 2 (1) The name of the business improvement district. | |
141 | + | 3 (2) A map of the business improvement district in | |
142 | + | 4 sufficient detail to allow a property owner to reasonably | |
143 | + | 5 determine whether a parcel of real property is located | |
144 | + | 6 within the boundaries of the business improvement | |
145 | + | 7 district. | |
146 | + | 8 (3) A description of the boundaries of the business | |
147 | + | 9 improvement district in a manner sufficient to identify | |
148 | + | 10 the real property included in the business improvement | |
149 | + | 11 district. | |
150 | + | 12 (4) The initial term of the business improvement | |
151 | + | 13 district. | |
152 | + | 14 (5) A statement identifying the activities and | |
153 | + | 15 improvements within the business improvement district that | |
154 | + | 16 may be provided from time to time for which property | |
155 | + | 17 owners will be charged and that the activities and | |
156 | + | 18 improvements that are provided may vary from year to year | |
157 | + | 19 and may differ by class. | |
158 | + | 20 (6) A statement identifying the maximum amount of the | |
159 | + | 21 annual district charge to be levied and that the maximum | |
160 | + | 22 amount of the annual district charge levied may vary from | |
161 | + | 23 year to year. | |
162 | + | 24 (7) A statement identifying the maximum amount of | |
163 | + | 25 total district charges to be levied for the term of the | |
164 | + | 26 business improvement district. | |
306 | 165 | ||
307 | 166 | ||
308 | - | Section 25. Boundaries of business improvement district. | |
309 | - | (a) The boundaries of a proposed business improvement | |
310 | - | district may not overlap with the boundaries of another | |
311 | - | business improvement district or with the boundaries of a | |
312 | - | special service area established pursuant to the Special | |
313 | - | Service Area Tax Law. | |
314 | - | (b) The boundaries of any proposed business improvement | |
315 | - | district may overlap with the boundaries of a tax increment | |
316 | - | financing district. | |
317 | - | Section 30. Proposals to establish a business improvement | |
318 | - | district. | |
319 | - | (a) To propose a business improvement district, a written | |
320 | - | petition satisfying the requirements of Section 75 shall be | |
321 | - | filed with the clerk and shall include the name and legal | |
322 | - | status of the filing party, information specifying where the | |
323 | - | complete district plan can be obtained, and a summary of the | |
324 | - | district plan that includes: the boundaries of the proposed | |
325 | - | business improvement district; the proposed activities and | |
326 | - | improvements and estimated amount of annual funding required; | |
327 | - | the method of assessment; the business improvement district's | |
328 | - | governance structure; and the total amount of the proposed | |
329 | - | district charges. The information contained in the summary | |
330 | - | shall be sufficient if it enables a property owner to | |
331 | - | generally identify the location and extent of the proposed | |
332 | - | business improvement district, the nature and extent of the | |
333 | 167 | ||
334 | 168 | ||
335 | - | activities and improvements, the estimated annual district | |
336 | - | charge that the property owner would pay, and the maximum | |
337 | - | annual district charge that the property owner would pay. | |
338 | - | (b) Upon receiving a written petition to establish a | |
339 | - | business improvement district and concluding that the petition | |
340 | - | meets the requirements of Section 75, the clerk shall submit | |
341 | - | the petition to the governing body. | |
342 | - | Section 35. Resolution of intent to consider establishment | |
343 | - | of a business improvement district. After receiving a verified | |
344 | - | petition from the clerk, the governing body shall, within 90 | |
345 | - | days, adopt a resolution of intention to consider the | |
346 | - | establishment of a business improvement district. The | |
347 | - | resolution shall state the time and place of a public hearing | |
348 | - | to be held by the governing body to consider establishment of a | |
349 | - | business improvement district and shall restate all the | |
350 | - | information contained in the petition regarding the boundaries | |
351 | - | of the proposed business improvement district, the proposed | |
352 | - | activities and improvements, and estimated amount of annual | |
353 | - | funding required, the method of assessment, the governance | |
354 | - | structure, and the total amount of the proposed district | |
355 | - | charges anticipated for the initial term of the business | |
356 | - | improvement district. | |
357 | - | Section 40. Establishment. | |
358 | - | (a) Within 30 days after the public hearing to consider | |
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360 | 172 | ||
361 | - | establishment of a business improvement district, the party | |
362 | - | who filed the district plan with the clerk may modify the | |
363 | - | district plan, including to satisfy any applicable legal | |
364 | - | requirements or remedy any deficiencies, prior to the adoption | |
365 | - | of an ordinance establishing a business improvement district. | |
366 | - | Any modification to the district plan that changes the source | |
367 | - | or sources of financing, including the method and basis of | |
368 | - | levying the district charge or an increase or reduction in the | |
369 | - | maximum annual amount or maximum total amount of the district | |
370 | - | charge against one or more properties within the business | |
371 | - | improvement district, the procedures for renewal, the | |
372 | - | boundaries of a business improvement district, the business | |
373 | - | improvement district's board of director's governance | |
374 | - | structure, the activities and improvements to be provided | |
375 | - | within the business improvement district, or a change to the | |
376 | - | filing party must be approved by a written petition that | |
377 | - | conforms to the petition signature requirements set forth in | |
378 | - | Section 75. If the district plan is so modified, the governing | |
379 | - | body shall call an additional public hearing to hear and | |
380 | - | consider objections to the modified district plan prior to the | |
381 | - | adoption of an ordinance establishing a business improvement | |
382 | - | district. | |
383 | - | (b) If, following all required public hearings, the | |
384 | - | governing body decides to establish a business improvement | |
385 | - | district, the governing body shall adopt an ordinance | |
386 | - | establishing the business improvement district that shall | |
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175 | + | 1 (8) A statement identifying the proposed source or | |
176 | + | 2 sources of financing, including the proposed method and | |
177 | + | 3 basis of levying an assessment, in sufficient detail to | |
178 | + | 4 allow each property owner to calculate (i) the estimated | |
179 | + | 5 amount of the district charge to be levied upon the | |
180 | + | 6 property owner annually, (ii) the maximum amount of the | |
181 | + | 7 district charge that could be levied upon the property | |
182 | + | 8 owner annually, and (iii) the total amount of the district | |
183 | + | 9 charges that could be levied upon the property owner for | |
184 | + | 10 the term of the business improvement district. | |
185 | + | 11 (9) Any interest or penalties that may be imposed for | |
186 | + | 12 delinquent payment of a district charge. | |
187 | + | 13 (10) A list of the real property subject to a district | |
188 | + | 14 charge, and a statement of any proposed classifications. | |
189 | + | 15 The list shall include the permanent tax index number of | |
190 | + | 16 each parcel located within the business improvement | |
191 | + | 17 district. | |
192 | + | 18 (11) A statement of the real property classes exempt | |
193 | + | 19 from charge, and a list of the real property to be | |
194 | + | 20 exempted. | |
195 | + | 21 (12) A statement identifying the proposed procedures | |
196 | + | 22 for renewal, subject to the limitations under Section 55. | |
197 | + | 23 (13) A statement identifying the district management | |
198 | + | 24 association and the district management association's | |
199 | + | 25 anticipated liability insurance coverage limits if the | |
200 | + | 26 business improvement district will be contracting with a | |
387 | 201 | ||
388 | 202 | ||
389 | - | include, but is not limited to, all the following information: | |
390 | - | (1) A detailed description of: the boundaries of the | |
391 | - | proposed business improvement district, which may be made | |
392 | - | by reference to a plan or map; the proposed activities and | |
393 | - | improvements, and an estimated amount of annual funding | |
394 | - | required; the method of assessment; the maximum amount of | |
395 | - | annual district charges; and the total amount of the | |
396 | - | proposed district charges for the initial term of the | |
397 | - | business improvement district. The descriptions shall be | |
398 | - | sufficient if the descriptions enable a property owner to | |
399 | - | generally identify the location and extent of the proposed | |
400 | - | business improvement district, the nature and extent of | |
401 | - | the activities and improvements, and the maximum annual | |
402 | - | district charge that the property owner would pay. | |
403 | - | (2) The time and place where any public hearing | |
404 | - | concerning the establishment of the business improvement | |
405 | - | district was held. | |
406 | - | (3) A statement that the activities and improvements | |
407 | - | to be conferred upon property owners will be funded by the | |
408 | - | levy of district charges. | |
409 | - | (4) A finding that each item in the district plan | |
410 | - | satisfies all applicable legal requirements and that | |
411 | - | establishing the business improvement district is in the | |
412 | - | public interest. | |
413 | - | (5) The adoption of the district plan, as may be | |
414 | - | modified pursuant to subsection (a), including each item | |
415 | 203 | ||
416 | 204 | ||
417 | - | set forth in Section 15. | |
418 | - | (6) A statement identifying the entity that will be | |
419 | - | responsible for administering district charges, including | |
420 | - | the functions of billing, collecting, and enforcement, | |
421 | - | pursuant to Section 20. | |
422 | - | (7) Authorization for the municipality to remit | |
423 | - | district charges to the board of directors of a business | |
424 | - | improvement district for the provision of activities and | |
425 | - | improvement. | |
426 | - | (8) The deadline and manner for submitting the annual | |
427 | - | report required in Section 65. | |
428 | - | (c) The ordinance establishing the business improvement | |
429 | - | district may not create additional obligations, burdens, | |
430 | - | requirements, liabilities, or restrictions for the business | |
431 | - | improvement district, board of directors of a business | |
432 | - | improvement district, or, when applicable, district management | |
433 | - | association other than those that are expressly contemplated | |
434 | - | by the district plan. | |
435 | - | Section 45. Activities and improvements. | |
436 | - | (a) Upon establishment of a business improvement district, | |
437 | - | the municipality or county collector may levy and collect the | |
438 | - | district charge pursuant to Section 20 as allowed by the | |
439 | - | district plan and the ordinance adopting the district plan. | |
440 | - | (b) Activities and improvements provided pursuant to this | |
441 | - | Act shall be provided in addition to base services. The | |
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443 | 208 | ||
444 | - | appropriate municipality shall continue to provide the same | |
445 | - | level of base services in any business improvement district as | |
446 | - | is provided to other real property within the municipality. | |
447 | - | The business improvement district is not expected or required | |
448 | - | to supplement any base services, but the board of directors of | |
449 | - | a business improvement district or the district management | |
450 | - | association, whichever may be applicable, may cause activities | |
451 | - | and improvements that supplement any base services within the | |
452 | - | business improvement district in accordance with the district | |
453 | - | plan. | |
454 | - | Section 50. Governance. | |
455 | - | (a) The board of directors of a business improvement | |
456 | - | district shall be established as a not-for-profit corporation | |
457 | - | subject to all applicable State and federal laws or | |
458 | - | regulations. | |
459 | - | (b) The bylaws of a board of directors of a business | |
460 | - | improvement district shall provide for voting representation | |
461 | - | of owners whose real property is located within the business | |
462 | - | improvement district and may provide that the votes be | |
463 | - | weighted in proportion to the district charge levied or to be | |
464 | - | levied upon property owners within the business improvement | |
465 | - | district, except the total number of votes assigned to one | |
466 | - | owner may not exceed 20% of the total number of votes which may | |
467 | - | be cast. | |
468 | - | (c) In the initial year of the first term of a business | |
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211 | + | 1 district management association. | |
212 | + | 2 (14) A statement identifying how unspent revenue | |
213 | + | 3 collected from district charges may be allocated, carried | |
214 | + | 4 over year to year, or returned to the assessed property | |
215 | + | 5 owners at the end of each year by applying the same method | |
216 | + | 6 and basis that was used to calculate the district charges | |
217 | + | 7 levied throughout the term of the business improvement | |
218 | + | 8 district. | |
219 | + | 9 (15) The manner by which an assessed property owner | |
220 | + | 10 may contest the calculation of a specific district charge. | |
221 | + | 11 (16) A statement identifying the business improvement | |
222 | + | 12 district's governance structure. The governance structure | |
223 | + | 13 shall include a board of directors, and the statement | |
224 | + | 14 shall identify the size of the board, the manner in which | |
225 | + | 15 directors are elected or appointed to serve on the board, | |
226 | + | 16 the term of the board members, and any other details | |
227 | + | 17 required under Section 50 of this Act. | |
228 | + | 18 (17) The anticipated annual percentage of total | |
229 | + | 19 district charges that will be allocated for administrative | |
230 | + | 20 expenses to operate and maintain the business improvement | |
231 | + | 21 district. | |
232 | + | 22 (18) A statement identifying if a class or classes of | |
233 | + | 23 real property exempt from district charges may elect to | |
234 | + | 24 have a district charge levied against the property for the | |
235 | + | 25 purposes of receiving benefits from the business | |
236 | + | 26 improvement district. If the district plan authorizes this | |
469 | 237 | ||
470 | 238 | ||
471 | - | improvement district, unless a lower threshold is expressly | |
472 | - | provided for in the district plan, all serving on the board of | |
473 | - | directors shall be property owners, their property management | |
474 | - | agents, or their tenant designees whose real property is | |
475 | - | located within the business improvement district. After the | |
476 | - | initial year of the first term of a business improvement | |
477 | - | district, at least 25% of the members of the board of directors | |
478 | - | must consist of tenant designees of property owners whose real | |
479 | - | property is located within the business improvement district. | |
480 | - | In order to satisfy the 25% tenant designee requirement, the | |
481 | - | board may increase in size if permitted under the district | |
482 | - | plan and bylaws of the board of directors pursuant to | |
483 | - | subsection (b). As used in this subsection, "tenant designee" | |
484 | - | includes (i) an individual, partnership, corporation, | |
485 | - | association, joint venture, or other commercial entity that | |
486 | - | maintains a tenancy agreement with a property owner for real | |
487 | - | property located within the business improvement district or | |
488 | - | (ii) a private or not-for-profit entity that represents the | |
489 | - | interests of an individual partnership, corporation, | |
490 | - | association, joint venture, or other commercial entity that | |
491 | - | maintains a tenancy agreement with a property owner for real | |
492 | - | property located within the business improvement district, and | |
493 | - | who is required to pay some portion of the district charge | |
494 | - | assessed against the property owner pursuant to the tenancy | |
495 | - | agreement or some other written agreement maintained with the | |
496 | - | property owner. In order for a tenant designee to be eligible | |
497 | 239 | ||
498 | 240 | ||
499 | - | to serve on the board of directors of a business improvement | |
500 | - | district, the tenant designee's tenancy agreement with the | |
501 | - | property owner must cover leased space that constitutes a | |
502 | - | substantial percentage of the total leasable area within the | |
503 | - | property owner's property located inside the business | |
504 | - | improvement district and whose presence substantially | |
505 | - | contributes to the property's overall economic viability. A | |
506 | - | tenant designee may be deemed to substantially contribute to | |
507 | - | the property's overall economic viability based on factors | |
508 | - | such as leased square footage, revenue contribution, industry | |
509 | - | prominence, or other considerations relevant to the property's | |
510 | - | commercial dynamics. The determination of a tenant designee as | |
511 | - | substantially contributing to the property's overall economic | |
512 | - | viability shall be at the sole discretion of the property | |
513 | - | owner. Failure to fill vacancies allocated to a tenant | |
514 | - | designee do not prevent the board of directors from continuing | |
515 | - | operations if the board of directors is operating consistent | |
516 | - | with the bylaws of the board of directors and any applicable | |
517 | - | State or federal law. | |
518 | - | (d) The composition of the board of directors shall be | |
519 | - | described in the statement identifying the governance | |
520 | - | structure of the business improvement district in the district | |
521 | - | plan. If allowed by the district plan, the bylaws of a board of | |
522 | - | directors of a business improvement district may establish a | |
523 | - | variable range for the size of the board by prescribing a | |
524 | - | minimum and maximum number of directors. If a variable range | |
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527 | - | is established, unless the district plan otherwise provides, | |
528 | - | the number of directors may be fixed or changed from time to | |
529 | - | time, within the minimum and maximum, by the directors without | |
530 | - | further amendment to the bylaws. | |
531 | - | (e) For each business improvement district, the board of | |
532 | - | directors of the business improvement district may contract | |
533 | - | with a district management association if so designated in the | |
534 | - | district plan to administer the operation of and provide for | |
535 | - | and maintain activities and improvements in and for a business | |
536 | - | improvement district. The contract may provide for the | |
537 | - | provision and maintenance of activities and improvements by | |
538 | - | one or more subcontractors of a district management | |
539 | - | association. | |
540 | - | (f) In addition to other powers as are conferred on it by | |
541 | - | law, the board of directors of a business improvement district | |
542 | - | may make recommendations to the governing body with respect to | |
543 | - | any matter involving or relating to the business improvement | |
544 | - | district. | |
545 | - | (g) For consideration as it may deem appropriate, the | |
546 | - | governing body may license or grant to the board of directors | |
547 | - | of a business improvement district the right to undertake or | |
548 | - | permit commercial activities or other private uses of the | |
549 | - | streets or other parts of the business improvement district in | |
550 | - | which the municipality has any real property interest. | |
551 | - | Section 55. Term; renewal. | |
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247 | + | 1 elective participation, the district plan must also | |
248 | + | 2 identify the process by which the property owner | |
249 | + | 3 affirmatively elects to participate, the maximum annual | |
250 | + | 4 amount of district charges to be levied against the | |
251 | + | 5 property owner, and the maximum amount of total district | |
252 | + | 6 charges to be levied against the property owner for the | |
253 | + | 7 term of the business improvement district. | |
254 | + | 8 (19) Any proposed rules and regulations to be applied | |
255 | + | 9 to the business improvement district. | |
256 | + | 10 Section 20. Assessments and district charges. | |
257 | + | 11 (a) Each district plan shall provide for an assessment | |
258 | + | 12 levied upon property owners owning property within the | |
259 | + | 13 business improvement district upon which district charges are | |
260 | + | 14 based, except an assessment may not be levied against a public | |
261 | + | 15 entity even if the public entity owns property within the | |
262 | + | 16 business improvement district. Unless the district plan | |
263 | + | 17 provides for elective participation and the property owner | |
264 | + | 18 elects to have a district charge assessed and levied upon the | |
265 | + | 19 property owner, assessments may not be levied upon property | |
266 | + | 20 owners owning property within the business improvement | |
267 | + | 21 district that is classified for purposes of taxation under | |
268 | + | 22 established ordinance by the local county board as residential | |
269 | + | 23 or exempt from taxation, except that for properties located in | |
270 | + | 24 Cook County, this only applies to properties granted Class 0 | |
271 | + | 25 and Class 2 classification under the classification system for | |
552 | 272 | ||
553 | 273 | ||
554 | - | (a) The initial term for a business improvement district | |
555 | - | shall be a maximum of 5 years. Any business improvement | |
556 | - | district may be renewed one or more times by following the | |
557 | - | procedures for renewal as provided in the district plan if | |
558 | - | each property owner that is subject to assessment is notified | |
559 | - | of a pending renewal. A renewal may not go into effect when, | |
560 | - | prior to the effective date of the renewal, a written petition | |
561 | - | seeking termination of the renewal that conforms to the | |
562 | - | petition signature requirements set forth in Section 75 is | |
563 | - | delivered to the clerk. | |
564 | - | (b) Upon each renewal, a business improvement district | |
565 | - | shall have an additional term not to exceed 10 years. Prior to | |
566 | - | renewal, the ordinance adopting the district plan may be | |
567 | - | amended pursuant to Section 60, with the amendments to take | |
568 | - | effect upon renewal. | |
569 | - | (c) Upon renewal, any remaining revenues derived from the | |
570 | - | levy of district charges, or any revenues derived from the | |
571 | - | sale of assets acquired with the revenues, shall be | |
572 | - | transferred to the board of directors of the renewed business | |
573 | - | improvement district. If the renewed business improvement | |
574 | - | district includes additional real property not included within | |
575 | - | the prior business improvement district, the remaining | |
576 | - | revenues shall be spent to benefit only the real property | |
577 | - | within the boundaries of the prior business improvement | |
578 | - | district. If the renewed business improvement district does | |
579 | - | not include real property included in the prior business | |
580 | 274 | ||
581 | 275 | ||
582 | - | improvement district, the remaining revenues attributable to | |
583 | - | that real property shall be refunded to the property owners of | |
584 | - | that real property. | |
585 | - | Section 60. Amendments. | |
586 | - | (a) Only upon the written request of the board of | |
587 | - | directors of a business improvement district may the governing | |
588 | - | body amend the ordinance adopting the district plan upon which | |
589 | - | the establishment or renewal of the business improvement | |
590 | - | district was based as set forth in this Section. | |
591 | - | (b) Amendments that provide for any change to the source | |
592 | - | or sources of financing, including the method and basis of | |
593 | - | levying the district charge or an increase in the maximum | |
594 | - | annual district charge or the maximum total district charges | |
595 | - | for the term of the business improvement district, or that | |
596 | - | provide for any change to the procedures for renewal may be | |
597 | - | adopted by the governing body by ordinance if, after a public | |
598 | - | hearing, the governing body determines that it is in the | |
599 | - | public interest to authorize the change to the source or | |
600 | - | sources of financing or to authorize the change to the | |
601 | - | procedures for renewal. | |
602 | - | (c) Amendments that provide for a change to the boundaries | |
603 | - | of a business improvement district may be adopted by the | |
604 | - | governing body by ordinance if, after a public hearing, the | |
605 | - | governing body determines that it is in the public interest to | |
606 | - | authorize the change to the boundaries of the business | |
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609 | - | improvement district and, if applicable, that all newly | |
610 | - | included property will benefit from the activities and | |
611 | - | improvements provided. The governing body may change the | |
612 | - | boundaries of a business improvement district by either | |
613 | - | expanding or reducing the existing boundaries. If the change | |
614 | - | to the boundaries is an expansion to existing boundaries, the | |
615 | - | expansion area must be contiguous with an existing boundary | |
616 | - | and the district charges upon property owners in the expansion | |
617 | - | area shall comply with the requirements of Section 20. The | |
618 | - | governing body may consider an expansion to the boundaries of | |
619 | - | a business improvement district only upon receipt of a written | |
620 | - | petition of property owners within the proposed expansion area | |
621 | - | that conforms to the petition signature requirements set forth | |
622 | - | in Section 75. Any revenues that are unspent at the time of an | |
623 | - | amendment expanding the boundaries of a business improvement | |
624 | - | district shall be spent to benefit only the real property | |
625 | - | within the prior boundaries of the business improvement | |
626 | - | district. If the change to the boundaries is a reduction to | |
627 | - | existing boundaries, any revenues that are unspent at the time | |
628 | - | of the amendment and are associated with real property that is | |
629 | - | being removed from the business improvement district, then | |
630 | - | those remaining revenues shall be refunded to the assessed | |
631 | - | property owners of the real property. Any amendment that | |
632 | - | changes the boundaries of a business improvement district | |
633 | - | shall provide an updated map of the business improvement | |
634 | - | district that reflects the expansion or reduction of its | |
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282 | + | 1 assessment in effect when the assessment is levied. District | |
283 | + | 2 charges shall be levied at a rate or amount sufficient to | |
284 | + | 3 produce revenues required to provide the activities and | |
285 | + | 4 improvements specified in the district plan, except a district | |
286 | + | 5 charge may not be levied against a single property owner that | |
287 | + | 6 exceeds 20% of the total district charges assessed in the | |
288 | + | 7 business improvement district. The revenue from the levy of | |
289 | + | 8 district charges within a business improvement district may | |
290 | + | 9 not be used to provide services outside the business | |
291 | + | 10 improvement district or for any purpose other than the | |
292 | + | 11 purposes set forth in the ordinance adopting the district | |
293 | + | 12 plan. The business improvement district is not required to use | |
294 | + | 13 revenue from the levy of district charges within a business | |
295 | + | 14 improvement district to provide services to any property | |
296 | + | 15 wherein a district charge is not levied against the property | |
297 | + | 16 owner. | |
298 | + | 17 (b) District charges shall be levied on the basis of the | |
299 | + | 18 estimated benefit to the real property located within the | |
300 | + | 19 business improvement district. In determining the assessment, | |
301 | + | 20 the board of directors of a business improvement district may | |
302 | + | 21 reasonably classify real property for purposes of determining | |
303 | + | 22 benefit if so provided in the district plan. The | |
304 | + | 23 classification may be based on various factors, including, as | |
305 | + | 24 applicable, square footage, geography, or any other factor | |
306 | + | 25 reasonably relating to the benefit received. Certain classes | |
307 | + | 26 may be specified in the district plan as exempted from being | |
635 | 308 | ||
636 | 309 | ||
637 | - | boundaries. | |
638 | - | (d) Notice shall be given and public hearings shall be | |
639 | - | held in accordance with Sections 80 and 85. | |
640 | - | (e) An amendment not provided for in subsection (b) or (c) | |
641 | - | may be adopted by the governing body by ordinance without | |
642 | - | notice and a public hearing if the governing body determines | |
643 | - | that the amendment is consistent with the objectives of the | |
644 | - | district plan and is in the public interest to approve the | |
645 | - | amendment, but the amendment may not create any additional | |
646 | - | obligations, burdens, requirements, liabilities, or | |
647 | - | restrictions for the business improvement district or the | |
648 | - | board of directors of a business improvement district other | |
649 | - | than those that are expressly allowed by the district plan. | |
650 | - | Section 65. Reports. | |
651 | - | (a) The board of directors of a business improvement | |
652 | - | district or the district management association, whichever may | |
653 | - | be applicable, shall prepare or have prepared a report for | |
654 | - | each fiscal year, except the first fiscal year, for which | |
655 | - | district charges are to be levied and collected to pay the | |
656 | - | costs of activities and improvements. The first report shall | |
657 | - | be submitted after the first year of operation of the business | |
658 | - | improvement district. | |
659 | - | (b) The report shall be submitted to the governing body, | |
660 | - | and to each property owner subject to a district charge upon | |
661 | - | request, and shall be made available for public inspection. | |
662 | 310 | ||
663 | 311 | ||
664 | - | The report shall refer to the business improvement district by | |
665 | - | name, specify the fiscal year to which the report applies, | |
666 | - | and, with respect to that fiscal year, shall contain, but is | |
667 | - | not limited to, all the following information: | |
668 | - | (1) The activities and improvements provided in the | |
669 | - | previous fiscal year. | |
670 | - | (2) The cost of the activities and improvements | |
671 | - | provided in the previous fiscal year. | |
672 | - | (3) Administrative expenses incurred in connection | |
673 | - | with the activities and improvements provided in the | |
674 | - | previous fiscal year. | |
675 | - | (4) All other administrative expenses incurred in the | |
676 | - | previous fiscal year not contemplated by paragraph (3). | |
677 | - | (5) The amount of any surplus or deficit revenues to | |
678 | - | be carried over from the previous fiscal year. | |
679 | - | (6) A comparison of the projected budget to the actual | |
680 | - | expenditures of the business improvement district for the | |
681 | - | previous fiscal year. | |
682 | - | (7) Planned activities and improvements and projected | |
683 | - | costs and administrative expenses for the upcoming fiscal | |
684 | - | year. | |
685 | - | (8) When applicable, the annual performance evaluation | |
686 | - | of the district management association to be conducted by | |
687 | - | the board of directors for the business improvement | |
688 | - | district. | |
689 | - | (9) Applicable annual milestones and metrics for the | |
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691 | 315 | ||
692 | - | purposes of measuring the success of the business | |
693 | - | improvement district, including the impacts of the | |
694 | - | activities and improvements contemplated by the district | |
695 | - | plan on economic activity, labor market, public and | |
696 | - | community safety statistics, and property values within | |
697 | - | the business improvement district. | |
698 | - | (10) Clear instructions on how to access any other | |
699 | - | publicly available report or filing submitted by the | |
700 | - | business improvement district under applicable State or | |
701 | - | federal laws or regulations. | |
702 | - | (c) In addition to the annual reporting requirement, the | |
703 | - | board of directors of a business improvement district shall | |
704 | - | notify the governing body of any proposed infrastructure or | |
705 | - | capital project in excess of $50,000 within a reasonable time. | |
706 | - | Section 70. Dissolution. | |
707 | - | (a) After a public hearing on the subject of dissolution, | |
708 | - | the governing body may dissolve by ordinance any business | |
709 | - | improvement district in either of the following circumstances: | |
710 | - | (1) If the governing body finds there has been | |
711 | - | misappropriation of funds, malfeasance, or a violation of | |
712 | - | law in connection with the management of the business | |
713 | - | improvement district; or | |
714 | - | (2) Each year during the term of the business | |
715 | - | improvement district, there shall be a 60-day period in | |
716 | - | which property owners who paid more than 50% of the total | |
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318 | + | 1 charged if they would not receive a special benefit from the | |
319 | + | 2 activities and improvements. District charges need not be | |
320 | + | 3 imposed on different classes on the same basis or the same | |
321 | + | 4 rate. | |
322 | + | 5 (c) District charges levied upon property owners owning | |
323 | + | 6 property within the business improvement district may be | |
324 | + | 7 billed and collected as follows: | |
325 | + | 8 (1) the county collector of the county in which a | |
326 | + | 9 business improvement district is located may bill and | |
327 | + | 10 collect district charges with the regular property tax | |
328 | + | 11 bills of the county if requested by a municipality within | |
329 | + | 12 its jurisdiction that has established a business | |
330 | + | 13 improvement district; however, no municipality is required | |
331 | + | 14 to make this request of its county collector. If the | |
332 | + | 15 county collector agrees to bill and collect district | |
333 | + | 16 charges with the regular property tax bills of the county, | |
334 | + | 17 then the applicable district plan shall be filed with the | |
335 | + | 18 county collector and the annual amount due as set forth by | |
336 | + | 19 the board of directors of a business improvement district | |
337 | + | 20 shall become due in installments at the times property | |
338 | + | 21 taxes shall become due in accordance with each regular | |
339 | + | 22 property tax bill payable during the year in which the | |
340 | + | 23 district charge comes due. The county collector shall | |
341 | + | 24 promptly remit the district charges collected to the | |
342 | + | 25 municipality; or | |
343 | + | 26 (2) if the county collector does not agree to bill and | |
717 | 344 | ||
718 | 345 | ||
719 | - | of district charges levied in the prior year may request | |
720 | - | dissolution of a business improvement district by a | |
721 | - | written petition that conforms to the petition signature | |
722 | - | requirements set forth in Section 75. The first period | |
723 | - | shall begin 60 days prior to one year after the date of | |
724 | - | establishment of the district and shall continue for 60 | |
725 | - | days. The next 60-day period shall begin 60 days prior to 2 | |
726 | - | years after the date of the establishment of the district. | |
727 | - | Each successive year during the term of the district shall | |
728 | - | have a 60-day period beginning 60 days after the | |
729 | - | anniversary of the date of the establishment of the | |
730 | - | district. | |
731 | - | (b) The governing body shall adopt a resolution of | |
732 | - | intention to dissolve the business improvement district prior | |
733 | - | to a public hearing required by this section. The resolution | |
734 | - | shall state the reason for the dissolution, shall state the | |
735 | - | time and place of the public hearing, and shall contain a | |
736 | - | proposal to dispose of any assets acquired with the revenues | |
737 | - | of district charges levied on behalf of the business | |
738 | - | improvement district in accordance with subsection (d). | |
739 | - | (c) Notice shall be given and public hearings shall be | |
740 | - | held in accordance with Sections 80 and 85. | |
741 | - | (d) Upon the dissolution or expiration without renewal of | |
742 | - | a district, and after all outstanding debts are paid, any | |
743 | - | remaining revenues derived from the levy of district charges, | |
744 | - | including any remaining revenues from district charges | |
745 | 346 | ||
746 | 347 | ||
747 | - | collected after dissolution, or derived from the sale of | |
748 | - | assets acquired with these revenues or construction funds, | |
749 | - | shall be either: (i) refunded to the property owners then | |
750 | - | located or operating within the business improvement district | |
751 | - | in which district charges were levied by applying the same | |
752 | - | method and basis that was used to calculate the district | |
753 | - | charges levied in the fiscal year in which the district | |
754 | - | dissolves or expires; or (ii) spent on activities or | |
755 | - | improvements specified in the district plan under a valid and | |
756 | - | enforceable contract executed by the board of directors of a | |
757 | - | business improvement district or the district management | |
758 | - | association, whichever may be applicable, prior to the | |
759 | - | dissolution. If the dissolution occurs before district charges | |
760 | - | are levied for the fiscal year, the method and basis that was | |
761 | - | used to calculate district charges levied in the immediate | |
762 | - | prior fiscal year shall be used to calculate the amount of any | |
763 | - | refund. | |
764 | - | Section 75. Petition signature requirements. Any petition | |
765 | - | required by this Act must be signed by property owners in the | |
766 | - | proposed business improvement district or proposed expanded | |
767 | - | area of a business improvement district, as the case may be, | |
768 | - | who cumulatively are expected to pay more than 50% of the total | |
769 | - | amount of the district charges proposed to be levied. All | |
770 | - | signatures for a petition to establish or expand a business | |
771 | - | improvement district must be collected within a period ending | |
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773 | 351 | ||
774 | - | no more than 120 days from the initiation of the petition, | |
775 | - | which date shall be specified on the petition. | |
776 | - | Section 80. Manner of notice. In addition to any notice of | |
777 | - | a public hearing issued by a governing body, the property | |
778 | - | owner or owners who submit the written petition to the clerk | |
779 | - | under Section 30 or, after a business improvement district is | |
780 | - | established, the board of directors of a business improvement | |
781 | - | district shall also provide notice of a public hearing | |
782 | - | required under this Act. The notice of the public hearing | |
783 | - | shall be given by publication and mailing. When notice by | |
784 | - | publication is required, it shall be provided in both physical | |
785 | - | and online form in a newspaper of general circulation within | |
786 | - | the business improvement district at least once not less than | |
787 | - | 15 days prior to the public hearing. The notice must, in | |
788 | - | addition, be published on the website of the business | |
789 | - | improvement district or its district management association, | |
790 | - | if the district or association has a website. Notice by | |
791 | - | mailing shall be given by depositing the notice in the United | |
792 | - | States mail addressed to each property owner subject to a | |
793 | - | district charge, as well as all members of the board of | |
794 | - | directors. The notice must, in addition, be electronically | |
795 | - | mailed if an electronic mailing address is known for each | |
796 | - | owner subject to a district charge as well as all members of | |
797 | - | the board of directors. Notice shall be mailed and | |
798 | - | electronically mailed not less than 14 days prior to the time | |
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354 | + | 1 collect district charges with the regular property tax | |
355 | + | 2 bills of the county or the municipality that has | |
356 | + | 3 established the business improvement district declines to | |
357 | + | 4 request the county collector to do so, then the | |
358 | + | 5 municipality shall bill and collect the district charges, | |
359 | + | 6 either directly or through a third party, and the annual | |
360 | + | 7 amount due as set forth by the board of directors of the | |
361 | + | 8 business improvement district in accordance with the | |
362 | + | 9 district plan shall become due in installments on or about | |
363 | + | 10 the times property taxes would otherwise become due in | |
364 | + | 11 accordance with each regular property tax bill payable | |
365 | + | 12 during the year in which the district charge comes due. | |
366 | + | 13 The governmental unit shall not bill the business | |
367 | + | 14 improvement district for the cost of billing and | |
368 | + | 15 collecting the district charges, but may pass on the | |
369 | + | 16 actual costs incurred if using a third party to bill and | |
370 | + | 17 collect the district charges. | |
371 | + | 18 (d) District charges shall be payable at the times and in | |
372 | + | 19 the manner set forth in the applicable bill. Delinquent | |
373 | + | 20 payments for district charges levied pursuant to this Act may | |
374 | + | 21 be charged interest and penalties as may be set forth in the | |
375 | + | 22 district plan. | |
376 | + | 23 (e) District charges shall promptly, and in no case later | |
377 | + | 24 than 90 days after collection, be remitted by the municipality | |
378 | + | 25 to the board of directors of a business improvement district. | |
799 | 379 | ||
800 | 380 | ||
801 | - | set for the public hearing. The mailed and electronically | |
802 | - | mailed notice shall enclose or include information allowing a | |
803 | - | property owner to obtain a copy of any proposed district plan | |
804 | - | or proposed amended district plan. | |
805 | - | Section 85. Public hearings. At a public hearing held | |
806 | - | pursuant to this Act, any interested person, including all | |
807 | - | property owners owning real property located within a proposed | |
808 | - | or existing business improvement district, may file with the | |
809 | - | clerk written objections to or statements in support of, and | |
810 | - | may be heard orally, with respect to any matter embodied in the | |
811 | - | district plan or concerning the management of the business | |
812 | - | improvement district. The governing body shall hear and | |
813 | - | consider all statements and objections at the public hearing. | |
814 | - | The governing body may adjourn a public hearing to another | |
815 | - | date without further notice other than a motion fixing the | |
816 | - | time and place the public hearing will reconvene. | |
817 | - | Section 90. Existing law. This Act provides an alternative | |
818 | - | method of financing certain activities and improvements. The | |
819 | - | provisions of this Act do not affect or limit any other | |
820 | - | provisions of law authorizing or providing for the furnishing | |
821 | - | of activities or improvements or the raising of revenue for | |
822 | - | these purposes. Every special service area established | |
823 | - | pursuant to the Special Service Area Tax Law is unaffected by | |
824 | - | this Act. | |
825 | 381 | ||
826 | 382 | ||
827 | - | Section 95. Contesting validity. The validity of a | |
828 | - | business improvement district created or amended, district | |
829 | - | plan established, or district charge imposed under this Act | |
830 | - | may not be contested in any action or proceeding unless the | |
831 | - | action or proceeding is commenced: (1) within 30 days after | |
832 | - | the formation ordinance is adopted; (2) with respect to | |
833 | - | amendments under Section 60, within 30 days after an amendment | |
834 | - | has been approved; or (3) with respect to district charges | |
835 | - | imposed under this Act, within 30 days after receipt of the | |
836 | - | bill containing the district charge. If a party appeals a | |
837 | - | final judgment, the party filing the appeal shall request | |
838 | - | discretionary acceleration under Supreme Court Rule 311(b). | |
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389 | + | 1 Section 25. Boundaries of business improvement district. | |
390 | + | 2 (a) The boundaries of a proposed business improvement | |
391 | + | 3 district may not overlap with the boundaries of another | |
392 | + | 4 business improvement district or with the boundaries of a | |
393 | + | 5 special service area established pursuant to the Special | |
394 | + | 6 Service Area Tax Law. | |
395 | + | 7 (b) The boundaries of any proposed business improvement | |
396 | + | 8 district may overlap with the boundaries of a tax increment | |
397 | + | 9 financing district. | |
398 | + | 10 Section 30. Proposals to establish a business improvement | |
399 | + | 11 district. | |
400 | + | 12 (a) To propose a business improvement district, a written | |
401 | + | 13 petition satisfying the requirements of Section 75 shall be | |
402 | + | 14 filed with the clerk and shall include the name and legal | |
403 | + | 15 status of the filing party, information specifying where the | |
404 | + | 16 complete district plan can be obtained, and a summary of the | |
405 | + | 17 district plan that includes: the boundaries of the proposed | |
406 | + | 18 business improvement district; the proposed activities and | |
407 | + | 19 improvements and estimated amount of annual funding required; | |
408 | + | 20 the method of assessment; the business improvement district's | |
409 | + | 21 governance structure; and the total amount of the proposed | |
410 | + | 22 district charges. The information contained in the summary | |
411 | + | 23 shall be sufficient if it enables a property owner to | |
412 | + | 24 generally identify the location and extent of the proposed | |
413 | + | 25 business improvement district, the nature and extent of the | |
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424 | + | 1 activities and improvements, the estimated annual district | |
425 | + | 2 charge that the property owner would pay, and the maximum | |
426 | + | 3 annual district charge that the property owner would pay. | |
427 | + | 4 (b) Upon receiving a written petition to establish a | |
428 | + | 5 business improvement district and concluding that the petition | |
429 | + | 6 meets the requirements of Section 75, the clerk shall submit | |
430 | + | 7 the petition to the governing body. | |
431 | + | 8 Section 35. Resolution of intent to consider establishment | |
432 | + | 9 of a business improvement district. After receiving a verified | |
433 | + | 10 petition from the clerk, the governing body shall, within 90 | |
434 | + | 11 days, adopt a resolution of intention to consider the | |
435 | + | 12 establishment of a business improvement district. The | |
436 | + | 13 resolution shall state the time and place of a public hearing | |
437 | + | 14 to be held by the governing body to consider establishment of a | |
438 | + | 15 business improvement district and shall restate all the | |
439 | + | 16 information contained in the petition regarding the boundaries | |
440 | + | 17 of the proposed business improvement district, the proposed | |
441 | + | 18 activities and improvements, and estimated amount of annual | |
442 | + | 19 funding required, the method of assessment, the governance | |
443 | + | 20 structure, and the total amount of the proposed district | |
444 | + | 21 charges anticipated for the initial term of the business | |
445 | + | 22 improvement district. | |
446 | + | 23 Section 40. Establishment. | |
447 | + | 24 (a) Within 30 days after the public hearing to consider | |
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458 | + | 1 establishment of a business improvement district, the party | |
459 | + | 2 who filed the district plan with the clerk may modify the | |
460 | + | 3 district plan, including to satisfy any applicable legal | |
461 | + | 4 requirements or remedy any deficiencies, prior to the adoption | |
462 | + | 5 of an ordinance establishing a business improvement district. | |
463 | + | 6 Any modification to the district plan that changes the source | |
464 | + | 7 or sources of financing, including the method and basis of | |
465 | + | 8 levying the district charge or an increase or reduction in the | |
466 | + | 9 maximum annual amount or maximum total amount of the district | |
467 | + | 10 charge against one or more properties within the business | |
468 | + | 11 improvement district, the procedures for renewal, the | |
469 | + | 12 boundaries of a business improvement district, the business | |
470 | + | 13 improvement district's board of director's governance | |
471 | + | 14 structure, the activities and improvements to be provided | |
472 | + | 15 within the business improvement district, or a change to the | |
473 | + | 16 filing party must be approved by a written petition that | |
474 | + | 17 conforms to the petition signature requirements set forth in | |
475 | + | 18 Section 75. If the district plan is so modified, the governing | |
476 | + | 19 body shall call an additional public hearing to hear and | |
477 | + | 20 consider objections to the modified district plan prior to the | |
478 | + | 21 adoption of an ordinance establishing a business improvement | |
479 | + | 22 district. | |
480 | + | 23 (b) If, following all required public hearings, the | |
481 | + | 24 governing body decides to establish a business improvement | |
482 | + | 25 district, the governing body shall adopt an ordinance | |
483 | + | 26 establishing the business improvement district that shall | |
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494 | + | 1 include, but is not limited to, all the following information: | |
495 | + | 2 (1) A detailed description of: the boundaries of the | |
496 | + | 3 proposed business improvement district, which may be made | |
497 | + | 4 by reference to a plan or map; the proposed activities and | |
498 | + | 5 improvements, and an estimated amount of annual funding | |
499 | + | 6 required; the method of assessment; the maximum amount of | |
500 | + | 7 annual district charges; and the total amount of the | |
501 | + | 8 proposed district charges for the initial term of the | |
502 | + | 9 business improvement district. The descriptions shall be | |
503 | + | 10 sufficient if the descriptions enable a property owner to | |
504 | + | 11 generally identify the location and extent of the proposed | |
505 | + | 12 business improvement district, the nature and extent of | |
506 | + | 13 the activities and improvements, and the maximum annual | |
507 | + | 14 district charge that the property owner would pay. | |
508 | + | 15 (2) The time and place where any public hearing | |
509 | + | 16 concerning the establishment of the business improvement | |
510 | + | 17 district was held. | |
511 | + | 18 (3) A statement that the activities and improvements | |
512 | + | 19 to be conferred upon property owners will be funded by the | |
513 | + | 20 levy of district charges. | |
514 | + | 21 (4) A finding that each item in the district plan | |
515 | + | 22 satisfies all applicable legal requirements and that | |
516 | + | 23 establishing the business improvement district is in the | |
517 | + | 24 public interest. | |
518 | + | 25 (5) The adoption of the district plan, as may be | |
519 | + | 26 modified pursuant to subsection (a), including each item | |
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530 | + | 1 set forth in Section 15. | |
531 | + | 2 (6) A statement identifying the entity that will be | |
532 | + | 3 responsible for administering district charges, including | |
533 | + | 4 the functions of billing, collecting, and enforcement, | |
534 | + | 5 pursuant to Section 20. | |
535 | + | 6 (7) Authorization for the municipality to remit | |
536 | + | 7 district charges to the board of directors of a business | |
537 | + | 8 improvement district for the provision of activities and | |
538 | + | 9 improvement. | |
539 | + | 10 (8) The deadline and manner for submitting the annual | |
540 | + | 11 report required in Section 65. | |
541 | + | 12 (c) The ordinance establishing the business improvement | |
542 | + | 13 district may not create additional obligations, burdens, | |
543 | + | 14 requirements, liabilities, or restrictions for the business | |
544 | + | 15 improvement district, board of directors of a business | |
545 | + | 16 improvement district, or, when applicable, district management | |
546 | + | 17 association other than those that are expressly contemplated | |
547 | + | 18 by the district plan. | |
548 | + | 19 Section 45. Activities and improvements. | |
549 | + | 20 (a) Upon establishment of a business improvement district, | |
550 | + | 21 the municipality or county collector may levy and collect the | |
551 | + | 22 district charge pursuant to Section 20 as allowed by the | |
552 | + | 23 district plan and the ordinance adopting the district plan. | |
553 | + | 24 (b) Activities and improvements provided pursuant to this | |
554 | + | 25 Act shall be provided in addition to base services. The | |
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565 | + | 1 appropriate municipality shall continue to provide the same | |
566 | + | 2 level of base services in any business improvement district as | |
567 | + | 3 is provided to other real property within the municipality. | |
568 | + | 4 The business improvement district is not expected or required | |
569 | + | 5 to supplement any base services, but the board of directors of | |
570 | + | 6 a business improvement district or the district management | |
571 | + | 7 association, whichever may be applicable, may cause activities | |
572 | + | 8 and improvements that supplement any base services within the | |
573 | + | 9 business improvement district in accordance with the district | |
574 | + | 10 plan. | |
575 | + | 11 Section 50. Governance. | |
576 | + | 12 (a) The board of directors of a business improvement | |
577 | + | 13 district shall be established as a not-for-profit corporation | |
578 | + | 14 subject to all applicable State and federal laws or | |
579 | + | 15 regulations. | |
580 | + | 16 (b) The bylaws of a board of directors of a business | |
581 | + | 17 improvement district shall provide for voting representation | |
582 | + | 18 of owners whose real property is located within the business | |
583 | + | 19 improvement district and may provide that the votes be | |
584 | + | 20 weighted in proportion to the district charge levied or to be | |
585 | + | 21 levied upon property owners within the business improvement | |
586 | + | 22 district, except the total number of votes assigned to one | |
587 | + | 23 owner may not exceed 20% of the total number of votes which may | |
588 | + | 24 be cast. | |
589 | + | 25 (c) In the initial year of the first term of a business | |
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600 | + | 1 improvement district, unless a lower threshold is expressly | |
601 | + | 2 provided for in the district plan, all serving on the board of | |
602 | + | 3 directors shall be property owners, their property management | |
603 | + | 4 agents, or their tenant designees whose real property is | |
604 | + | 5 located within the business improvement district. After the | |
605 | + | 6 initial year of the first term of a business improvement | |
606 | + | 7 district, at least 25% of the members of the board of directors | |
607 | + | 8 must consist of tenant designees of property owners whose real | |
608 | + | 9 property is located within the business improvement district. | |
609 | + | 10 In order to satisfy the 25% tenant designee requirement, the | |
610 | + | 11 board may increase in size if permitted under the district | |
611 | + | 12 plan and bylaws of the board of directors pursuant to | |
612 | + | 13 subsection (b). As used in this subsection, "tenant designee" | |
613 | + | 14 includes (i) an individual, partnership, corporation, | |
614 | + | 15 association, joint venture, or other commercial entity that | |
615 | + | 16 maintains a tenancy agreement with a property owner for real | |
616 | + | 17 property located within the business improvement district or | |
617 | + | 18 (ii) a private or not-for-profit entity that represents the | |
618 | + | 19 interests of an individual partnership, corporation, | |
619 | + | 20 association, joint venture, or other commercial entity that | |
620 | + | 21 maintains a tenancy agreement with a property owner for real | |
621 | + | 22 property located within the business improvement district, and | |
622 | + | 23 who is required to pay some portion of the district charge | |
623 | + | 24 assessed against the property owner pursuant to the tenancy | |
624 | + | 25 agreement or some other written agreement maintained with the | |
625 | + | 26 property owner. In order for a tenant designee to be eligible | |
626 | + | ||
627 | + | ||
628 | + | ||
629 | + | ||
630 | + | ||
631 | + | SB3679 Enrolled - 18 - LRB103 39381 AWJ 69554 b | |
632 | + | ||
633 | + | ||
634 | + | SB3679 Enrolled- 19 -LRB103 39381 AWJ 69554 b SB3679 Enrolled - 19 - LRB103 39381 AWJ 69554 b | |
635 | + | SB3679 Enrolled - 19 - LRB103 39381 AWJ 69554 b | |
636 | + | 1 to serve on the board of directors of a business improvement | |
637 | + | 2 district, the tenant designee's tenancy agreement with the | |
638 | + | 3 property owner must cover leased space that constitutes a | |
639 | + | 4 substantial percentage of the total leasable area within the | |
640 | + | 5 property owner's property located inside the business | |
641 | + | 6 improvement district and whose presence substantially | |
642 | + | 7 contributes to the property's overall economic viability. A | |
643 | + | 8 tenant designee may be deemed to substantially contribute to | |
644 | + | 9 the property's overall economic viability based on factors | |
645 | + | 10 such as leased square footage, revenue contribution, industry | |
646 | + | 11 prominence, or other considerations relevant to the property's | |
647 | + | 12 commercial dynamics. The determination of a tenant designee as | |
648 | + | 13 substantially contributing to the property's overall economic | |
649 | + | 14 viability shall be at the sole discretion of the property | |
650 | + | 15 owner. Failure to fill vacancies allocated to a tenant | |
651 | + | 16 designee do not prevent the board of directors from continuing | |
652 | + | 17 operations if the board of directors is operating consistent | |
653 | + | 18 with the bylaws of the board of directors and any applicable | |
654 | + | 19 State or federal law. | |
655 | + | 20 (d) The composition of the board of directors shall be | |
656 | + | 21 described in the statement identifying the governance | |
657 | + | 22 structure of the business improvement district in the district | |
658 | + | 23 plan. If allowed by the district plan, the bylaws of a board of | |
659 | + | 24 directors of a business improvement district may establish a | |
660 | + | 25 variable range for the size of the board by prescribing a | |
661 | + | 26 minimum and maximum number of directors. If a variable range | |
662 | + | ||
663 | + | ||
664 | + | ||
665 | + | ||
666 | + | ||
667 | + | SB3679 Enrolled - 19 - LRB103 39381 AWJ 69554 b | |
668 | + | ||
669 | + | ||
670 | + | SB3679 Enrolled- 20 -LRB103 39381 AWJ 69554 b SB3679 Enrolled - 20 - LRB103 39381 AWJ 69554 b | |
671 | + | SB3679 Enrolled - 20 - LRB103 39381 AWJ 69554 b | |
672 | + | 1 is established, unless the district plan otherwise provides, | |
673 | + | 2 the number of directors may be fixed or changed from time to | |
674 | + | 3 time, within the minimum and maximum, by the directors without | |
675 | + | 4 further amendment to the bylaws. | |
676 | + | 5 (e) For each business improvement district, the board of | |
677 | + | 6 directors of the business improvement district may contract | |
678 | + | 7 with a district management association if so designated in the | |
679 | + | 8 district plan to administer the operation of and provide for | |
680 | + | 9 and maintain activities and improvements in and for a business | |
681 | + | 10 improvement district. The contract may provide for the | |
682 | + | 11 provision and maintenance of activities and improvements by | |
683 | + | 12 one or more subcontractors of a district management | |
684 | + | 13 association. | |
685 | + | 14 (f) In addition to other powers as are conferred on it by | |
686 | + | 15 law, the board of directors of a business improvement district | |
687 | + | 16 may make recommendations to the governing body with respect to | |
688 | + | 17 any matter involving or relating to the business improvement | |
689 | + | 18 district. | |
690 | + | 19 (g) For consideration as it may deem appropriate, the | |
691 | + | 20 governing body may license or grant to the board of directors | |
692 | + | 21 of a business improvement district the right to undertake or | |
693 | + | 22 permit commercial activities or other private uses of the | |
694 | + | 23 streets or other parts of the business improvement district in | |
695 | + | 24 which the municipality has any real property interest. | |
696 | + | 25 Section 55. Term; renewal. | |
697 | + | ||
698 | + | ||
699 | + | ||
700 | + | ||
701 | + | ||
702 | + | SB3679 Enrolled - 20 - LRB103 39381 AWJ 69554 b | |
703 | + | ||
704 | + | ||
705 | + | SB3679 Enrolled- 21 -LRB103 39381 AWJ 69554 b SB3679 Enrolled - 21 - LRB103 39381 AWJ 69554 b | |
706 | + | SB3679 Enrolled - 21 - LRB103 39381 AWJ 69554 b | |
707 | + | 1 (a) The initial term for a business improvement district | |
708 | + | 2 shall be a maximum of 5 years. Any business improvement | |
709 | + | 3 district may be renewed one or more times by following the | |
710 | + | 4 procedures for renewal as provided in the district plan if | |
711 | + | 5 each property owner that is subject to assessment is notified | |
712 | + | 6 of a pending renewal. A renewal may not go into effect when, | |
713 | + | 7 prior to the effective date of the renewal, a written petition | |
714 | + | 8 seeking termination of the renewal that conforms to the | |
715 | + | 9 petition signature requirements set forth in Section 75 is | |
716 | + | 10 delivered to the clerk. | |
717 | + | 11 (b) Upon each renewal, a business improvement district | |
718 | + | 12 shall have an additional term not to exceed 10 years. Prior to | |
719 | + | 13 renewal, the ordinance adopting the district plan may be | |
720 | + | 14 amended pursuant to Section 60, with the amendments to take | |
721 | + | 15 effect upon renewal. | |
722 | + | 16 (c) Upon renewal, any remaining revenues derived from the | |
723 | + | 17 levy of district charges, or any revenues derived from the | |
724 | + | 18 sale of assets acquired with the revenues, shall be | |
725 | + | 19 transferred to the board of directors of the renewed business | |
726 | + | 20 improvement district. If the renewed business improvement | |
727 | + | 21 district includes additional real property not included within | |
728 | + | 22 the prior business improvement district, the remaining | |
729 | + | 23 revenues shall be spent to benefit only the real property | |
730 | + | 24 within the boundaries of the prior business improvement | |
731 | + | 25 district. If the renewed business improvement district does | |
732 | + | 26 not include real property included in the prior business | |
733 | + | ||
734 | + | ||
735 | + | ||
736 | + | ||
737 | + | ||
738 | + | SB3679 Enrolled - 21 - LRB103 39381 AWJ 69554 b | |
739 | + | ||
740 | + | ||
741 | + | SB3679 Enrolled- 22 -LRB103 39381 AWJ 69554 b SB3679 Enrolled - 22 - LRB103 39381 AWJ 69554 b | |
742 | + | SB3679 Enrolled - 22 - LRB103 39381 AWJ 69554 b | |
743 | + | 1 improvement district, the remaining revenues attributable to | |
744 | + | 2 that real property shall be refunded to the property owners of | |
745 | + | 3 that real property. | |
746 | + | 4 Section 60. Amendments. | |
747 | + | 5 (a) Only upon the written request of the board of | |
748 | + | 6 directors of a business improvement district may the governing | |
749 | + | 7 body amend the ordinance adopting the district plan upon which | |
750 | + | 8 the establishment or renewal of the business improvement | |
751 | + | 9 district was based as set forth in this Section. | |
752 | + | 10 (b) Amendments that provide for any change to the source | |
753 | + | 11 or sources of financing, including the method and basis of | |
754 | + | 12 levying the district charge or an increase in the maximum | |
755 | + | 13 annual district charge or the maximum total district charges | |
756 | + | 14 for the term of the business improvement district, or that | |
757 | + | 15 provide for any change to the procedures for renewal may be | |
758 | + | 16 adopted by the governing body by ordinance if, after a public | |
759 | + | 17 hearing, the governing body determines that it is in the | |
760 | + | 18 public interest to authorize the change to the source or | |
761 | + | 19 sources of financing or to authorize the change to the | |
762 | + | 20 procedures for renewal. | |
763 | + | 21 (c) Amendments that provide for a change to the boundaries | |
764 | + | 22 of a business improvement district may be adopted by the | |
765 | + | 23 governing body by ordinance if, after a public hearing, the | |
766 | + | 24 governing body determines that it is in the public interest to | |
767 | + | 25 authorize the change to the boundaries of the business | |
768 | + | ||
769 | + | ||
770 | + | ||
771 | + | ||
772 | + | ||
773 | + | SB3679 Enrolled - 22 - LRB103 39381 AWJ 69554 b | |
774 | + | ||
775 | + | ||
776 | + | SB3679 Enrolled- 23 -LRB103 39381 AWJ 69554 b SB3679 Enrolled - 23 - LRB103 39381 AWJ 69554 b | |
777 | + | SB3679 Enrolled - 23 - LRB103 39381 AWJ 69554 b | |
778 | + | 1 improvement district and, if applicable, that all newly | |
779 | + | 2 included property will benefit from the activities and | |
780 | + | 3 improvements provided. The governing body may change the | |
781 | + | 4 boundaries of a business improvement district by either | |
782 | + | 5 expanding or reducing the existing boundaries. If the change | |
783 | + | 6 to the boundaries is an expansion to existing boundaries, the | |
784 | + | 7 expansion area must be contiguous with an existing boundary | |
785 | + | 8 and the district charges upon property owners in the expansion | |
786 | + | 9 area shall comply with the requirements of Section 20. The | |
787 | + | 10 governing body may consider an expansion to the boundaries of | |
788 | + | 11 a business improvement district only upon receipt of a written | |
789 | + | 12 petition of property owners within the proposed expansion area | |
790 | + | 13 that conforms to the petition signature requirements set forth | |
791 | + | 14 in Section 75. Any revenues that are unspent at the time of an | |
792 | + | 15 amendment expanding the boundaries of a business improvement | |
793 | + | 16 district shall be spent to benefit only the real property | |
794 | + | 17 within the prior boundaries of the business improvement | |
795 | + | 18 district. If the change to the boundaries is a reduction to | |
796 | + | 19 existing boundaries, any revenues that are unspent at the time | |
797 | + | 20 of the amendment and are associated with real property that is | |
798 | + | 21 being removed from the business improvement district, then | |
799 | + | 22 those remaining revenues shall be refunded to the assessed | |
800 | + | 23 property owners of the real property. Any amendment that | |
801 | + | 24 changes the boundaries of a business improvement district | |
802 | + | 25 shall provide an updated map of the business improvement | |
803 | + | 26 district that reflects the expansion or reduction of its | |
804 | + | ||
805 | + | ||
806 | + | ||
807 | + | ||
808 | + | ||
809 | + | SB3679 Enrolled - 23 - LRB103 39381 AWJ 69554 b | |
810 | + | ||
811 | + | ||
812 | + | SB3679 Enrolled- 24 -LRB103 39381 AWJ 69554 b SB3679 Enrolled - 24 - LRB103 39381 AWJ 69554 b | |
813 | + | SB3679 Enrolled - 24 - LRB103 39381 AWJ 69554 b | |
814 | + | 1 boundaries. | |
815 | + | 2 (d) Notice shall be given and public hearings shall be | |
816 | + | 3 held in accordance with Sections 80 and 85. | |
817 | + | 4 (e) An amendment not provided for in subsection (b) or (c) | |
818 | + | 5 may be adopted by the governing body by ordinance without | |
819 | + | 6 notice and a public hearing if the governing body determines | |
820 | + | 7 that the amendment is consistent with the objectives of the | |
821 | + | 8 district plan and is in the public interest to approve the | |
822 | + | 9 amendment, but the amendment may not create any additional | |
823 | + | 10 obligations, burdens, requirements, liabilities, or | |
824 | + | 11 restrictions for the business improvement district or the | |
825 | + | 12 board of directors of a business improvement district other | |
826 | + | 13 than those that are expressly allowed by the district plan. | |
827 | + | 14 Section 65. Reports. | |
828 | + | 15 (a) The board of directors of a business improvement | |
829 | + | 16 district or the district management association, whichever may | |
830 | + | 17 be applicable, shall prepare or have prepared a report for | |
831 | + | 18 each fiscal year, except the first fiscal year, for which | |
832 | + | 19 district charges are to be levied and collected to pay the | |
833 | + | 20 costs of activities and improvements. The first report shall | |
834 | + | 21 be submitted after the first year of operation of the business | |
835 | + | 22 improvement district. | |
836 | + | 23 (b) The report shall be submitted to the governing body, | |
837 | + | 24 and to each property owner subject to a district charge upon | |
838 | + | 25 request, and shall be made available for public inspection. | |
839 | + | ||
840 | + | ||
841 | + | ||
842 | + | ||
843 | + | ||
844 | + | SB3679 Enrolled - 24 - LRB103 39381 AWJ 69554 b | |
845 | + | ||
846 | + | ||
847 | + | SB3679 Enrolled- 25 -LRB103 39381 AWJ 69554 b SB3679 Enrolled - 25 - LRB103 39381 AWJ 69554 b | |
848 | + | SB3679 Enrolled - 25 - LRB103 39381 AWJ 69554 b | |
849 | + | 1 The report shall refer to the business improvement district by | |
850 | + | 2 name, specify the fiscal year to which the report applies, | |
851 | + | 3 and, with respect to that fiscal year, shall contain, but is | |
852 | + | 4 not limited to, all the following information: | |
853 | + | 5 (1) The activities and improvements provided in the | |
854 | + | 6 previous fiscal year. | |
855 | + | 7 (2) The cost of the activities and improvements | |
856 | + | 8 provided in the previous fiscal year. | |
857 | + | 9 (3) Administrative expenses incurred in connection | |
858 | + | 10 with the activities and improvements provided in the | |
859 | + | 11 previous fiscal year. | |
860 | + | 12 (4) All other administrative expenses incurred in the | |
861 | + | 13 previous fiscal year not contemplated by paragraph (3). | |
862 | + | 14 (5) The amount of any surplus or deficit revenues to | |
863 | + | 15 be carried over from the previous fiscal year. | |
864 | + | 16 (6) A comparison of the projected budget to the actual | |
865 | + | 17 expenditures of the business improvement district for the | |
866 | + | 18 previous fiscal year. | |
867 | + | 19 (7) Planned activities and improvements and projected | |
868 | + | 20 costs and administrative expenses for the upcoming fiscal | |
869 | + | 21 year. | |
870 | + | 22 (8) When applicable, the annual performance evaluation | |
871 | + | 23 of the district management association to be conducted by | |
872 | + | 24 the board of directors for the business improvement | |
873 | + | 25 district. | |
874 | + | 26 (9) Applicable annual milestones and metrics for the | |
875 | + | ||
876 | + | ||
877 | + | ||
878 | + | ||
879 | + | ||
880 | + | SB3679 Enrolled - 25 - LRB103 39381 AWJ 69554 b | |
881 | + | ||
882 | + | ||
883 | + | SB3679 Enrolled- 26 -LRB103 39381 AWJ 69554 b SB3679 Enrolled - 26 - LRB103 39381 AWJ 69554 b | |
884 | + | SB3679 Enrolled - 26 - LRB103 39381 AWJ 69554 b | |
885 | + | 1 purposes of measuring the success of the business | |
886 | + | 2 improvement district, including the impacts of the | |
887 | + | 3 activities and improvements contemplated by the district | |
888 | + | 4 plan on economic activity, labor market, public and | |
889 | + | 5 community safety statistics, and property values within | |
890 | + | 6 the business improvement district. | |
891 | + | 7 (10) Clear instructions on how to access any other | |
892 | + | 8 publicly available report or filing submitted by the | |
893 | + | 9 business improvement district under applicable State or | |
894 | + | 10 federal laws or regulations. | |
895 | + | 11 (c) In addition to the annual reporting requirement, the | |
896 | + | 12 board of directors of a business improvement district shall | |
897 | + | 13 notify the governing body of any proposed infrastructure or | |
898 | + | 14 capital project in excess of $50,000 within a reasonable time. | |
899 | + | 15 Section 70. Dissolution. | |
900 | + | 16 (a) After a public hearing on the subject of dissolution, | |
901 | + | 17 the governing body may dissolve by ordinance any business | |
902 | + | 18 improvement district in either of the following circumstances: | |
903 | + | 19 (1) If the governing body finds there has been | |
904 | + | 20 misappropriation of funds, malfeasance, or a violation of | |
905 | + | 21 law in connection with the management of the business | |
906 | + | 22 improvement district; or | |
907 | + | 23 (2) Each year during the term of the business | |
908 | + | 24 improvement district, there shall be a 60-day period in | |
909 | + | 25 which property owners who paid more than 50% of the total | |
910 | + | ||
911 | + | ||
912 | + | ||
913 | + | ||
914 | + | ||
915 | + | SB3679 Enrolled - 26 - LRB103 39381 AWJ 69554 b | |
916 | + | ||
917 | + | ||
918 | + | SB3679 Enrolled- 27 -LRB103 39381 AWJ 69554 b SB3679 Enrolled - 27 - LRB103 39381 AWJ 69554 b | |
919 | + | SB3679 Enrolled - 27 - LRB103 39381 AWJ 69554 b | |
920 | + | 1 of district charges levied in the prior year may request | |
921 | + | 2 dissolution of a business improvement district by a | |
922 | + | 3 written petition that conforms to the petition signature | |
923 | + | 4 requirements set forth in Section 75. The first period | |
924 | + | 5 shall begin 60 days prior to one year after the date of | |
925 | + | 6 establishment of the district and shall continue for 60 | |
926 | + | 7 days. The next 60-day period shall begin 60 days prior to 2 | |
927 | + | 8 years after the date of the establishment of the district. | |
928 | + | 9 Each successive year during the term of the district shall | |
929 | + | 10 have a 60-day period beginning 60 days after the | |
930 | + | 11 anniversary of the date of the establishment of the | |
931 | + | 12 district. | |
932 | + | 13 (b) The governing body shall adopt a resolution of | |
933 | + | 14 intention to dissolve the business improvement district prior | |
934 | + | 15 to a public hearing required by this section. The resolution | |
935 | + | 16 shall state the reason for the dissolution, shall state the | |
936 | + | 17 time and place of the public hearing, and shall contain a | |
937 | + | 18 proposal to dispose of any assets acquired with the revenues | |
938 | + | 19 of district charges levied on behalf of the business | |
939 | + | 20 improvement district in accordance with subsection (d). | |
940 | + | 21 (c) Notice shall be given and public hearings shall be | |
941 | + | 22 held in accordance with Sections 80 and 85. | |
942 | + | 23 (d) Upon the dissolution or expiration without renewal of | |
943 | + | 24 a district, and after all outstanding debts are paid, any | |
944 | + | 25 remaining revenues derived from the levy of district charges, | |
945 | + | 26 including any remaining revenues from district charges | |
946 | + | ||
947 | + | ||
948 | + | ||
949 | + | ||
950 | + | ||
951 | + | SB3679 Enrolled - 27 - LRB103 39381 AWJ 69554 b | |
952 | + | ||
953 | + | ||
954 | + | SB3679 Enrolled- 28 -LRB103 39381 AWJ 69554 b SB3679 Enrolled - 28 - LRB103 39381 AWJ 69554 b | |
955 | + | SB3679 Enrolled - 28 - LRB103 39381 AWJ 69554 b | |
956 | + | 1 collected after dissolution, or derived from the sale of | |
957 | + | 2 assets acquired with these revenues or construction funds, | |
958 | + | 3 shall be either: (i) refunded to the property owners then | |
959 | + | 4 located or operating within the business improvement district | |
960 | + | 5 in which district charges were levied by applying the same | |
961 | + | 6 method and basis that was used to calculate the district | |
962 | + | 7 charges levied in the fiscal year in which the district | |
963 | + | 8 dissolves or expires; or (ii) spent on activities or | |
964 | + | 9 improvements specified in the district plan under a valid and | |
965 | + | 10 enforceable contract executed by the board of directors of a | |
966 | + | 11 business improvement district or the district management | |
967 | + | 12 association, whichever may be applicable, prior to the | |
968 | + | 13 dissolution. If the dissolution occurs before district charges | |
969 | + | 14 are levied for the fiscal year, the method and basis that was | |
970 | + | 15 used to calculate district charges levied in the immediate | |
971 | + | 16 prior fiscal year shall be used to calculate the amount of any | |
972 | + | 17 refund. | |
973 | + | 18 Section 75. Petition signature requirements. Any petition | |
974 | + | 19 required by this Act must be signed by property owners in the | |
975 | + | 20 proposed business improvement district or proposed expanded | |
976 | + | 21 area of a business improvement district, as the case may be, | |
977 | + | 22 who cumulatively are expected to pay more than 50% of the total | |
978 | + | 23 amount of the district charges proposed to be levied. All | |
979 | + | 24 signatures for a petition to establish or expand a business | |
980 | + | 25 improvement district must be collected within a period ending | |
981 | + | ||
982 | + | ||
983 | + | ||
984 | + | ||
985 | + | ||
986 | + | SB3679 Enrolled - 28 - LRB103 39381 AWJ 69554 b | |
987 | + | ||
988 | + | ||
989 | + | SB3679 Enrolled- 29 -LRB103 39381 AWJ 69554 b SB3679 Enrolled - 29 - LRB103 39381 AWJ 69554 b | |
990 | + | SB3679 Enrolled - 29 - LRB103 39381 AWJ 69554 b | |
991 | + | 1 no more than 120 days from the initiation of the petition, | |
992 | + | 2 which date shall be specified on the petition. | |
993 | + | 3 Section 80. Manner of notice. In addition to any notice of | |
994 | + | 4 a public hearing issued by a governing body, the property | |
995 | + | 5 owner or owners who submit the written petition to the clerk | |
996 | + | 6 under Section 30 or, after a business improvement district is | |
997 | + | 7 established, the board of directors of a business improvement | |
998 | + | 8 district shall also provide notice of a public hearing | |
999 | + | 9 required under this Act. The notice of the public hearing | |
1000 | + | 10 shall be given by publication and mailing. When notice by | |
1001 | + | 11 publication is required, it shall be provided in both physical | |
1002 | + | 12 and online form in a newspaper of general circulation within | |
1003 | + | 13 the business improvement district at least once not less than | |
1004 | + | 14 15 days prior to the public hearing. The notice must, in | |
1005 | + | 15 addition, be published on the website of the business | |
1006 | + | 16 improvement district or its district management association, | |
1007 | + | 17 if the district or association has a website. Notice by | |
1008 | + | 18 mailing shall be given by depositing the notice in the United | |
1009 | + | 19 States mail addressed to each property owner subject to a | |
1010 | + | 20 district charge, as well as all members of the board of | |
1011 | + | 21 directors. The notice must, in addition, be electronically | |
1012 | + | 22 mailed if an electronic mailing address is known for each | |
1013 | + | 23 owner subject to a district charge as well as all members of | |
1014 | + | 24 the board of directors. Notice shall be mailed and | |
1015 | + | 25 electronically mailed not less than 14 days prior to the time | |
1016 | + | ||
1017 | + | ||
1018 | + | ||
1019 | + | ||
1020 | + | ||
1021 | + | SB3679 Enrolled - 29 - LRB103 39381 AWJ 69554 b | |
1022 | + | ||
1023 | + | ||
1024 | + | SB3679 Enrolled- 30 -LRB103 39381 AWJ 69554 b SB3679 Enrolled - 30 - LRB103 39381 AWJ 69554 b | |
1025 | + | SB3679 Enrolled - 30 - LRB103 39381 AWJ 69554 b | |
1026 | + | 1 set for the public hearing. The mailed and electronically | |
1027 | + | 2 mailed notice shall enclose or include information allowing a | |
1028 | + | 3 property owner to obtain a copy of any proposed district plan | |
1029 | + | 4 or proposed amended district plan. | |
1030 | + | 5 Section 85. Public hearings. At a public hearing held | |
1031 | + | 6 pursuant to this Act, any interested person, including all | |
1032 | + | 7 property owners owning real property located within a proposed | |
1033 | + | 8 or existing business improvement district, may file with the | |
1034 | + | 9 clerk written objections to or statements in support of, and | |
1035 | + | 10 may be heard orally, with respect to any matter embodied in the | |
1036 | + | 11 district plan or concerning the management of the business | |
1037 | + | 12 improvement district. The governing body shall hear and | |
1038 | + | 13 consider all statements and objections at the public hearing. | |
1039 | + | 14 The governing body may adjourn a public hearing to another | |
1040 | + | 15 date without further notice other than a motion fixing the | |
1041 | + | 16 time and place the public hearing will reconvene. | |
1042 | + | 17 Section 90. Existing law. This Act provides an alternative | |
1043 | + | 18 method of financing certain activities and improvements. The | |
1044 | + | 19 provisions of this Act do not affect or limit any other | |
1045 | + | 20 provisions of law authorizing or providing for the furnishing | |
1046 | + | 21 of activities or improvements or the raising of revenue for | |
1047 | + | 22 these purposes. Every special service area established | |
1048 | + | 23 pursuant to the Special Service Area Tax Law is unaffected by | |
1049 | + | 24 this Act. | |
1050 | + | ||
1051 | + | ||
1052 | + | ||
1053 | + | ||
1054 | + | ||
1055 | + | SB3679 Enrolled - 30 - LRB103 39381 AWJ 69554 b | |
1056 | + | ||
1057 | + | ||
1058 | + | SB3679 Enrolled- 31 -LRB103 39381 AWJ 69554 b SB3679 Enrolled - 31 - LRB103 39381 AWJ 69554 b | |
1059 | + | SB3679 Enrolled - 31 - LRB103 39381 AWJ 69554 b | |
1060 | + | 1 Section 95. Contesting validity. The validity of a | |
1061 | + | 2 business improvement district created or amended, district | |
1062 | + | 3 plan established, or district charge imposed under this Act | |
1063 | + | 4 may not be contested in any action or proceeding unless the | |
1064 | + | 5 action or proceeding is commenced: (1) within 30 days after | |
1065 | + | 6 the formation ordinance is adopted; (2) with respect to | |
1066 | + | 7 amendments under Section 60, within 30 days after an amendment | |
1067 | + | 8 has been approved; or (3) with respect to district charges | |
1068 | + | 9 imposed under this Act, within 30 days after receipt of the | |
1069 | + | 10 bill containing the district charge. If a party appeals a | |
1070 | + | 11 final judgment, the party filing the appeal shall request | |
1071 | + | 12 discretionary acceleration under Supreme Court Rule 311(b). | |
1072 | + | ||
1073 | + | ||
1074 | + | ||
1075 | + | ||
1076 | + | ||
1077 | + | SB3679 Enrolled - 31 - LRB103 39381 AWJ 69554 b |