Sec. 50. Governance.

795 words·~4 min read·/il/chapter-65/act-125/50

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

(a)The board of directors of a business improvement district shall be established as a not-for-profit corporation subject to all applicable State and federal laws or regulations.

(b)The bylaws of a board of directors of a business improvement district shall provide for voting representation of owners whose real property is located within the business improvement district and may provide that the votes be weighted in proportion to the district charge levied or to be levied upon property owners within the business improvement district, except the total number of votes assigned to one owner may not exceed 20% of the total number of votes which may be cast.

(c)In the initial year of the first term of a business improvement district, unless a lower threshold is expressly provided for in the district plan, all serving on the board of directors shall be property owners, their property management agents, or their tenant designees whose real property is located within the business improvement district. After the initial year of the first term of a business improvement district, at least 25% of the members of the board of directors must consist of tenant designees of property owners whose real property is located within the business improvement district. In order to satisfy the 25% tenant designee requirement, the board may increase in size if permitted under the district plan and bylaws of the board of directors pursuant to subsection (b). As used in this subsection, "tenant designee" includes

(i)an individual, partnership, corporation, association, joint venture, or other commercial entity that maintains a tenancy agreement with a property owner for real property located within the business improvement district or

(ii)a private or not-for-profit entity that represents the interests of an individual partnership, corporation, association, joint venture, or other commercial entity that maintains a tenancy agreement with a property owner for real property located within the business improvement district, and who is required to pay some portion of the district charge assessed against the property owner pursuant to the tenancy agreement or some other written agreement maintained with the property owner. In order for a tenant designee to be eligible to serve on the board of directors of a business improvement district, the tenant designee's tenancy agreement with the property owner must cover leased space that constitutes a substantial percentage of the total leasable area within the property owner's property located inside the business improvement district and whose presence substantially contributes to the property's overall economic viability. A tenant designee may be deemed to substantially contribute to the property's overall economic viability based on factors such as leased square footage, revenue contribution, industry prominence, or other considerations relevant to the property's commercial dynamics. The determination of a tenant designee as substantially contributing to the property's overall economic viability shall be at the sole discretion of the property owner. Failure to fill vacancies allocated to a tenant designee do not prevent the board of directors from continuing operations if the board of directors is operating consistent with the bylaws of the board of directors and any applicable State or federal law.

(d)The composition of the board of directors shall be described in the statement identifying the governance structure of the business improvement district in the district plan. If allowed by the district plan, the bylaws of a board of directors of a business improvement district may establish a variable range for the size of the board by prescribing a minimum and maximum number of directors. If a variable range is established, unless the district plan otherwise provides, the number of directors may be fixed or changed from time to time, within the minimum and maximum, by the directors without further amendment to the bylaws.

(e)For each business improvement district, the board of directors of the business improvement district may contract with a district management association if so designated in the district plan to administer the operation of and provide for and maintain activities and improvements in and for a business improvement district. The contract may provide for the provision and maintenance of activities and improvements by one or more subcontractors of a district management association.

(f)In addition to other powers as are conferred on it by law, the board of directors of a business improvement district may make recommendations to the governing body with respect to any matter involving or relating to the business improvement district.

(g)For consideration as it may deem appropriate, the governing body may license or grant to the board of directors of a business improvement district the right to undertake or permit commercial activities or other private uses of the streets or other parts of the business improvement district in which the municipality has any real property interest.