Illinois Administrative Code
Title 86 - REVENUE
Part 4000 - STAR BONDS
Subpart B - STAR BOND DISTRICT
Section 4000.201 - Application for Approval of STAR Bond District
Universal Citation: 86 IL Admin Code ยง 4000.201
Current through Register Vol. 48, No. 38, September 20, 2024
a) Upon adoption of the resolution to establish a STAR bond district, the political subdivision shall submit the proposed STAR bond district to the Director for consideration. [50 ILCS 470/15(d)]
b) The Director may only approve a STAR bond district if the Director makes all of the findings in this subsection (b).
1) The proposed STAR bond district is an
eligible area.
2) The STAR bond
district plan includes a projected capital investment of at least $100,000,000.
The projected capital investment identified to meet the requirements of this
subsection (b)(2) must consist only of private capital investment.
3) The STAR bond district plan is reasonably
projected to produce at least $100,000,000 of annual gross sales revenues and
500 new jobs. With respect to the annual gross sales revenues provision, the
applicant must demonstrate that the plan is reasonably projected to produce at
least $100,000,000 in annual gross sales revenues from sales of tangible
personal property, ticket sales, entry fees, hotel room rentals and other
products or services sold within the district. Gross sales revenues generated
from sales within the district that represent sales displaced from outside of
the district do not count toward the $100,000,000 gross sales revenues
requirement.
4) The STAR bond
district plan includes potential destination users and a potential
entertainment user. The applicant must generally identify the potential
destination users and entertainment user and must include information that
substantiates that the potential destination and entertainment users are
anticipated to meet the requirements of the Act to be designated as destination
or entertainment users.
5) The
creation of the STAR bond district and STAR bond district plan are in
accordance with the purpose of the Act and the public interest.
6) The STAR bond district and STAR bond
district plan meet any other requirement that the Director deems appropriate
[50 ILCS
470/15(d)] , including, but not
limited to, the items listed in this subsection (b)(6). The application must:
A) demonstrate that the district will satisfy
the purpose of the Act by creating a true "destination" development;
B) include the proposed sources of financing
for the district and any projects in the district;
C) identify any person or entity that holds
at least a 5% financial interest in the appointed master developer for the STAR
bond district;
D) identify any
person or entity that holds at least a 5% financial interest in any parcel of
real property within the STAR bond district, and identify how much real
property in the district that person or entity holds and what percentage of all
real property in the district that real property represents;
E) explain the relationship, if any, between
the master developer and the owner of any parcel of real property in the
district if they are not the same;
F) describe the extent of the benefit to the
STAR bond district of any Tax Increment Financing (TIF) district in which the
STAR bond district is located, if located, or partially located, in a TIF
district, as well as any other government incentive being provided to or sought
by the master developer;
G) provide
proof that, except as otherwise provided in this subsection (b)(6)(G) and the
Act, all of the local sales tax increment has been irrevocably committed as
pledged STAR revenues;
i) Exception: Any
local sales tax revenues pledged to pay debt service on municipal bonds issued
prior to the effective date of the Act are not required to be included as
pledged STAR revenues;
ii)
Exception: If a STAR bond district is formed that is wholly within the
boundaries of a municipality, then, in order for the proceeds of a
county-imposed sales tax or a county's 0.25 % share of the 6.25 % State-imposed
sales tax that is generated in the STAR bond district by taxpayers that are not
destination users, destination hotels or entertainment users to be considered
as pledged STAR revenues, the corporate authorities of the county must adopt an
ordinance that designates these tax revenues as part of the local sales tax
increment and file a certified copy of that ordinance with the Department in
accordance with the Act;
iii)
Exception: The pledge of STAR Bond occupation taxes imposed under Section 31 of
the Act as pledged STAR revenues is subject to the specific provisions of the
Act.
Disclaimer: These regulations may not be the most recent version. Illinois may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
This site is protected by reCAPTCHA and the Google
Privacy Policy and
Terms of Service apply.