SAL Rapid Response

Dan Shapiro • Apr 21, 2021

A Bill to Watch in the 102nd Illinois General Assembly



TAX INCREMENT FINANCING



SB2298: TIF/REDEVELOPMENT PROJECT AREA
Summary SB2298: Amends the Tax Increment Allocation Redevelopment Act of the Illinois Municipal Code. It adds two factors to the determination of a "blighted area" for improved, industrial, commercial, and residential buildings or improvements: (1) if the redevelopment project area has had an annual average unemployment rate of at least 120% of the State's annual average unemployment rate; and (2) if the redevelopment project area has a poverty rate of at least 20%, 50% or more of children in the redevelopment project area participate in the federal free lunch program, or 20% or more households in the redevelopment project area receive food stamps. The bill removes or modifies various factors from the definitions of "blighted area" and "conservation area" for improved and vacant areas and provides that a new redevelopment project shall have a completion date no later than December 31st of the 10th year after the ordinance was adopted (rather than the 23rd year) and may be extended to 15 years (rather than 35 years). It also provides that the joint review board and municipality shall approve surplus funds and extensions of redevelopment project area completion dates. Finally, the bill provides that surplus funds shall be distributed annually within 90 days (rather than 180 days) after the close of a municipality's fiscal year. Provides that a new or modified redevelopment project area that overlaps with any existing redevelopment project area shall not be approved. Effective July 1, 2021.
SAL’s Rapid Response: While adding the 2 factors to the definition is a good idea, the shortened time could inhibit future redevelopment by making TIFs more difficult to finance and therefore more difficult to incentive new development. This bill is similar to a bill considered by the state legislature last year at this time. Last year's bill failed and this bill may experience a similar fate.

Bills to Watch in the 103rd Illinois General Assembly

By Dan Shapiro • 18 Apr, 2024
HB 3306, HB 2099 and The Corporate Transparency Act

Shapiro & Associates Law Highlights of 2023

By Dan Shapiro • 21 Mar, 2024
Client Success

Navigating the Horizon

By Dan Shapiro • 11 Jan, 2024
A Glimpse into the 2024 Commercial Real Estate

Commercial and Residential Property Tax Review

By Dan Shapiro • 09 Nov, 2023
Planning for your Property's Financial Future, by Jamie Baer

Vacant Office Space Alternatives

By Dan Shapiro • 17 Aug, 2023
Commercial Real Estate Conversion Options

Current Developments Regarding Recently Proposed Illinois TIF Legislation

By Dan Shapiro • 28 Mar, 2023
Tax Increment Financing Updates

New Laws for Business Owners: What You Need to Know

By Dan Shapiro • 21 Mar, 2023
Changes that Illinois Businesses Should be Aware of

The 2023 Federal Spending Legislation and its Impact on Affordable Housing

By Stephanie Crossley • 29 Dec, 2022
The $85 million “Yes In My Backyard” Program

Mixed-Use Developments

By Stephanie Crossley • 15 Nov, 2022
Mixed use developments: An effective land strategy that combines residential and non-residential uses

185 New Dispensaries Are On Their Way

By Dan Shapiro • 16 Jun, 2022
The Illinois Department of Financial and Professional Regulation (IDFPR) recently announced the next steps to issue 185 Conditional Adult Use Cannabis Dispensing Organization Licenses to applicants selected in three lotteries in 2021. The Conditional Licenses will be issued to applicants selected in the 2021 lotteries in three waves: Wave 1, on or before July 22, 2022. Naperville-Chicago-Elgin BLS Region. Wave 2, on or before August 5, 2022. Other BLS Regions with multiple licenses available. Wave 3, on or before August 19, 2022. BLS Regions with a single license available. Next Steps Principal officers must submit a Principal Officer Affirmation form no later than July 1, 2022. The IDFPR will then verify all principal officers are not delinquent in taxes or owe money to the State of Illinois and notify any applicant if a principal officer is not tax compliant. The applicant will then have 60 days after notification to prove tax compliance. Any applicant with a principal officer who is not tax compliant after the 60-day period shall forfeit their awarded license, which will then be offered to the next eligible applicant. The IDFPR will also verify that no principal officers have a financial interest in more than 10 Adult Use Cannabis Dispensary licenses. Any applicant with a principal officer who may become a principal officer in any combination of more than 10 Early Approval Adult Use Dispensing Organization Licenses, Conditional Adult Use Dispensing Organization Licenses, and Adult Use Dispensing Organization Licenses will forfeit any license they are awarded. After IDFPR issues the Conditional Licenses, it will conduct background checks of principal officers. Importantly, after receiving a Conditional License, the Conditional Licensees will have 180 days to select a physical storefront location and obtain the full Adult Use Dispensing Organization License (the full list of criteria to be met may be found here ). If a Conditional Licensee is unable to find a suitable physical location within the 180-day period, they may request an extension of 180 days.
Show More
Share by: