Sec. 8-11-20. Economic incentive agreements.

343 words·~2 min read·/il/chapter-65/act-5/8-11-20

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

Sec. 8-11-20. Economic incentive agreements. The corporate authorities of a municipality may enter into an economic incentive agreement relating to the development or redevelopment of land within the corporate limits of the municipality. Under this agreement, the municipality may agree to share or rebate a portion of any retailers' occupation taxes received by the municipality that were generated by the development or redevelopment over a finite period of time. Before entering into the agreement authorized by this Section, the corporate authorities shall make the following findings:

(1)If the property subject to the agreement is vacant:

(A)that the property has remained vacant for at least one year, or

(B)that any building located on the property was demolished within the last year and

that the building would have qualified under finding

(2)of this Section;

(2)If the property subject to the agreement is currently developed:

(A)that the buildings on the property no longer comply with current building codes, or

(B)that the buildings on the property have remained less than significantly unoccupied

or underutilized for a period of at least one year;

(3)That the project is expected to create or retain job opportunities within the municipality;

(4)That the project will serve to further the development of adjacent areas;

(5)That without the agreement, the project would not be possible;

(6)That the developer meets high standards of creditworthiness and financial strength as demonstrated by one or more of the following:

(A)corporate debenture ratings of BBB or higher by Standard & Poor's Corporation or Baa

or higher by Moody's Investors Service, Inc.;

(B)a letter from a financial institution with assets of $10,000,000 or more attesting

to the financial strength of the developer; or

(C)specific evidence of equity financing for not less than 10% of the total project

costs;

(7)That the project will strengthen the commercial sector of the municipality;

(8)That the project will enhance the tax base of the municipality; and

(9)That the agreement is made in the best interest of the municipality.