§ 15-43. Authorized incentives and target programs.

The mayor and city council of the city, in an effort to facilitate the successful development of the enterprise zone, authorizes and agrees to provide the following incentives and target the following programs within the enterprise zone for the life of the enterprise zone in accordance with the policies and procedures herein and those which may be established and implemented following certification of the enterprise zone by the Illinois Department of Commerce and Community Affairs:

(a)

Real estate tax abatement. The city shall provide property (real estate) tax abatement for projects within the enterprise zone in accordance with the following provisions:

(1)

Industrial projects: Those projects where the primary use of the project land and building(s) is of a manufacturing, assembling, wholesale or warehouse/distribution nature. Projects meeting this definition are eligible to receive property (real estate) tax abatement of one hundred (100) percent of the increased assessment amount which would accrue from expansion, rehabilitation or new construction for a ten-year period beginning with the tax year in which the new increased assessment amount would be levied (this abatement period shall not extend beyond the twenty-year life of the enterprise zone as provided for in section 15-41 above).

"Expansion" shall be herein defined as the construction of any part of a building that results in an increase in any exterior dimension of an existing building and has at least one wall or floor in common with the existing building. "Rehabilitation" shall be herein defined as the improvement of any part of an existing building that does not result in an increase in any exterior dimension of the building. "New construction" shall be herein defined as the improvement of any tract of land or site with a building where the interior space is encased by exterior walls, none of which are common along any plane or otherwise shared with an existing building.

During this abatement period property (real estate) taxes levied on the land and building(s) would continue to be paid annually based on the "pre-project" land and building(s) "base" in accordance with the established equalized assessed valuation and tax rate.

(2)

Commercial projects: Those projects where the primary use of the project land and building(s) is of a retail or service nature. This shall exclude projects for single-family or multifamily unit residences. Projects meeting this definition are eligible to receive property (real estate) tax abatement of one hundred (100) percent of the increased assessment amount which would accrue from expansion, rehabilitation or new construction ("expansion," "rehabilitation" or "new construction" shall be defined as set forth in subsection (a)(1) above) for a three-year period beginning with the tax year in which the new increased assessment amount would be levied (this abatement period shall not extend beyond the twenty-year life of the enterprise zone as provided for in section 15-41 above).

The City of Effingham hereby authorizes and directs the Effingham County Clerk to abate that portion of the property tax due to the City of Effingham which is attributable to the construction of improvements and the renovation or rehabilitation of existing improvements on any industrial or commercial real property located within the boundaries of the Effingham Enterprise Zone for the time periods herein specified. During the abatement period, property (real estate) taxes levied on the land and building(s) would continue to be paid annually based on the "pre-project" land and building(s) "base" in accordance with the established equalized assessed valuation and tax rate.

(b)

Sales tax exemption. Any retailer, as defined in the Illinois Retailers' Occupation Tax Act, 35 ILCS 120/1, et. seq., located in the State of Illinois who makes a sale of building materials to be permanently affixed and incorporated into real estate located within the Effingham Enterprise Zone, as amended from time to time, in connection with the rehabilitation, expansion or new construction of commercial or industrial project(s) may deduct receipts from such sale when calculating the tax imposed by the State of Illinois pursuant to the Illinois Retailers' Occupation Tax Act, 35 ILCS 120/1, et. seq., by the City of Effingham, Illinois pursuant to the Municipal Retailers' Occupation Tax Act, 65 ILCS 5/8-11-1.3., and by the County of Effingham, Illinois pursuant to the County Retailers' Occupation Tax Act; provided, however, that said deduction shall be allowed if and only if the Effingham Enterprise Zone Administrator has issued a certificate of eligibility qualifying the rehabilitation, expansion or new construction of commercial or industrial project(s) for the real estate tax abatement in accordance with subsection 15-43(a)(1) and (2) of Ordinance 9-88. A copy of such certificate of eligibility signed by the Effingham County Enterprise Zone Administrator shall be provided to the retailer at the time of sale and maintained by such retailer in its books and records for the purposes of documenting such deduction. Certificates of eligibility shall be valid for twelve (12) months from the date of issuance; provided, however, that such certificates may be extended for an additional twelve (12) months upon application to the Effingham Enterprise Zone Administrator. Such requests for extension shall not be granted more than twice for any one project, and the requesting party must demonstrate good faith efforts to diligently pursue construction of the project.

(c)

Waiver of building permit fee amounts. The city will waive the normal amount which would be charged for any and all fees or permits for rehabilitation, expansion or new construction associated with commercial and/or industrial projects within the zone. The provision of this incentive shall not be construed to provide for the elimination of any permit. All construction-related permits shall continue to be required for any project as has been the case in the past and as may be required in the future. This waiver shall not include water tap and sewer tap fees.

(d)

Targeting of funds. The city will target funds it is scheduled to receive or may in the future receive from the sources listed below on a first-priority basis to projects located within the enterprise zone. This targeting means, to the extent that qualifying specific projects and/or project areas exist within the zone (in accordance with the criteria established for each source/program), the city will give priority to the use of the funds or zone projects/project areas. This shall not be construed to mean that projects outside the zone which better meet program criteria and/or which demonstrate more need would be excluded from funding.

"First priority" is herein further defined as applying to project evaluation when all aspects of competing projects/project areas are generally equal. In such cases priority would be given to those projects located within the enterprise zone. "Projects" are herein defined as including the following items: Public improvements; loan programs for commercial, industrial and/or residential properties; job training funds; and land acquisition in support of specific projects, etc. The funds/program sources to be targeted under this "first-priority" basis are as follows:

(1)

Small Cities Community Development Assistance Program (CDAP), subsequent to the state approval of the zone.

(2)

JTPA funds as may be available through the State of Illinois and/or other sources, subsequent to the date of state approval of the zone.

(3)

Industrial revenue bonds issued under city approval, subsequent to the date of state approval of the zone.

(4)

Loans to be provided under the Illinois Small Business Fixed Rate Financing Fund, subsequent to the date of state approval of the zone.

(5)

Build Illinois Funds as may be available through the State of Illinois, subsequent to the date of state approval of the zone.

(6)

Loans for commercial, industrial and/or residential projects to be made under any city-established program(s), subsequent to the date of state approval of the zone.

(e)

Anything contained in Ordinance 9-88 or any amendment thereto to the contrary notwithstanding, on and after January 28, 2003, any real estate that is located within the geographic boundaries of the Effingham Enterprise Zone, as amended from time to time, and which is also located within the boundaries of any tax increment finance redevelopment area adopted, either before or after January 28, 2003, by the City of Effingham, Illinois pursuant to the Illinois Tax Increment Finance Development Act shall not be eligible for any real estate tax abatement otherwise available under the Effingham Enterprise Zone Ordinance 9-88, and the Effingham County Clerk, the Effingham County Treasurer, and the Effingham County Supervisor of Assessments are hereby authorized and directed to refuse to extend or otherwise allow any real estate tax abatements authorized under Ordinance 9-88 for any real estate that is located within the geographic boundaries of the Effingham Enterprise Zone, as amended from time to time, and which is also located within the boundaries of any tax increment finance redevelopment area adopted, either before or after, January 28, 2003, by the City of Effingham, Illinois pursuant to the Illinois Tax Increment Finance Development Act; provided, however, that any business enterprise, expansion or individual that has constructed a new improvement or renovated or rehabilitated an existing improvement and has received an abatement on the improvement pursuant to section 18-170 of the Illinois Property Tax Code shall not be denied any benefit previously extended within the Effingham Enterprise Zone pursuant to the Illinois Enterprise Zone Act; and provided further, however, that if any business enterprise, expansion or individual presents sufficient evidence to the City Council of the City of Effingham, Illinois within thirty (30) days after January 28, 2003 that: (a) the business enterprise, expansion or individual was committed to locate within a part of the Effingham Enterprise Zone affected by this subsection 15-43(e); and, (b) that substantial and binding financial obligations were made in reasonable reliance on the Effingham Enterprise Zone real property tax abatement benefits as the same existed prior to January 28, 2003; and, (c) that such commitments and obligations were made in reasonable reliance on the Effingham Enterprise Zone real estate tax abatement benefits that were otherwise available before January 28, 2003, then upon the City Council for the City of Effingham, Illinois finding that sufficient evidence has been presented, the City Council of the City of Effingham, Illinois shall direct the Effingham County Clerk, the Effingham County Treasurer, and the Effingham County Supervisor of Assessments to continue to provide and extend to such business enterprise, expansion or individual the Effingham Enterprise Zone real estate tax abatement benefits as the same existed prior to January 28, 2003.

(Ord. No. 9-88, § 3, 3-15-88; Ord. No. 2-2003, §§ 2, 3, 1-7-2003)