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

Current through Register Vol. 48, No. 28, July 12, 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.