Village of Brownstown, IL
Fayette County
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[HISTORY: Adopted 6-21-2016 by Ord. No. 16-06-02.[1] Amendments noted where applicable]
[1]
Editor's Note: This ordinance superseded former Ch. 13, Enterprise Zone, adopted 6-20-2000 by Ord. No. 00-06-03, as amended. To allow for the resubmission of an Enterprise Zone application, the recitals of Ord. No. 16-06-02 were amended 10-17-2017 by Ord. No. 17-10-03; see Exhibit C, which is included as an attachment to this chapter.
Subject to the designation by the Illinois Department of Commerce and Economic Opportunity pursuant to the Illinios Enterprise Zone Act,[1] the Village hereby designates as an Enterprise Zone for a period of 15 years those portions of the Village as set forth in Exhibit "A" and described in Exhibit "B" (which are attached hereto and incorporated by this reference). The term of the Zone shall commence with the date the Vandalia/Fayette County Enterprise Zone is approved and designated by the Illinois Department of Commerce and Economic Opportunity pursuant to the Illinios Enterprise Zone Act, and shall be and remain in effect until terminated at midnight of December 31 of the 15th year after the year in which the Vandalia/Fayette County Enterprise Zone is certified.
[1]
Editor's Note: See 20 ILCS 655/1 et seq.
The Village hereby finds as follows:
(A) 
That following due and sufficient public notice, published on April 21, 2016, in the Vandalia Leader-Union, a newspaper of general circulation within the area of the Enterprise Zone, a public hearing concerning the Enterprise Zone set forth in Exhibit "A" was conducted at 6:30 p.m. on May 2, 2016, in the Council Chambers of the Vandalia City Hall, 431 West Gallatin Street, Vandalia, Illinois, 62471, said location being within the Enterprise Zone.
(B) 
That the Enterprise Zone is a contiguous area comprising more than 1/2 square mile and less than 15 square miles, and any connecting strips are not less than three feet nor more than 10 feet in width.
(C) 
That the Enterprise Zone is a distressed area as defined by the regulations promulgated by the Department of Commerce and Economic Opportunity in that the area designated as the Enterprise Zone meets at least three of the 10 tests or criteria for eligibility therein prescribed.
(D) 
That the Enterprise Zone meets the conditions and criteria established by the Illinois Enterprise Zone Act[1] and regulations promulgated by the Illinois Department of Commerce and Economic Opportunity.
[1]
Editor's Note: See 20 ILCS 655/1 et seq.
(E) 
That the Enterprise Zone is a depressed area and includes the Village for the following reasons:
(1) 
To include the maximum number of low- and moderate-income persons;
(2) 
To include older industrial, commercial, and residential areas of the Village needing upgrading and rehabilitation;
(3) 
To include the areas comprising the highest unemployment;
(4) 
To include the existing industrial and commercial facilities which are presently vacant and/or underutilized; and
(5) 
To include areas representing portions of the Village where commercial and industrial development is targeted to occur in complement and support of existing commercial and industrial areas.
The Village President and Village Council of the Village of Brownstown 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 designation of the Enterprise Zone by the Illinois Department of Commerce and Economic Opportunity:
(A) 
Real Estate Tax Abatement. That portion of real property (real estate) taxes levied and imposed by the Village upon a parcel or parcels of real estate located within the Enterprise Zone and upon which there has been new construction or upon which there has been expansion or rehabilitation of existing constructions shall be abated; however, that any abatement of taxes on any parcel or parcels shall not exceed an amount determined 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 a property (real estate) tax abatement of 100% of the increased assessment amount which would accrue from new construction, expansion or rehabilitation 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 life of the Enterprise Zone.)
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. 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.
(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 residences. Projects meeting this definition are eligible to receive property (real estate) tax abatement of 100% of the increased assessment amount which would accrue from new construction, expansion or rehabilitation. [New construction, expansion and rehabilitation shall be as set forth in Subsection (A)(1) above for a ten-year period beginning with the tax year in which the new increased assessment amount would be levied. (This abatement shall not extend beyond the life of the Enterprise Zone.)]
(3) 
Residential Projects: those projects where the primary use of the project land and building(s) is of a single-family or multifamily residential nature. Projects meeting this definition are eligible to receive property (real estate) tax abatement of 100% of the increased assessment amount which would accrue from new construction, expansion or rehabilitation. [New construction, expansion and rehabilitation shall be set forth in Subsection (A)(1) above for a five-year period beginning with the tax year in which the new increased assessment amount would be levied. (This abatement shall not extend beyond life of the Enterprise Zone.)]
The Village hereby authorizes and directs the Fayette County Clerk to abate that portion of the property tax due to the Village which is attributable to new construction and the expansion or rehabilitation of existing construction on any industrial, commercial or residential real property located within the boundaries of the 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. The Village hereby authorizes claims for point-of-sale exemption of its Municipal Retailers' Occupation Tax by each retailer who makes a sale of building materials to be incorporated into real estate located in the Village of Brownstown's portion of the Enterprise Zone for new constructions, expansion and/or rehabilitation of commercial, industrial or residential projects when such projects are also eligible for property (real estate) tax abatement in accordance with the terms of Subsection A(1), (2) and (3) above. The retailer may grant an exemption of the tax under the Municipal Retailers' Occupation Tax Act in accordance with the provisions of the Illinois Enterprise Zone Act[1] and the terms of this chapter. This exemption shall take effect beginning on the first day of the calendar month following the month in which the Zone is certified by the State of Illinois.
The provision of this incentive by the Village automatically invokes the exemption of the State of Illinois sales tax on building materials sold and eligible. In order to receive credit, the following criteria must be met:
(1) 
The building materials must be permanently affixed to the real estate.
(2) 
Only projects which normally require a building permit (if applicable) and involve the purchase of building materials costing in excess of $5,000 will be eligible to receive this credit.
(3) 
Evidence of a project's location and eligibility within the Zone in the form of a certificate of eligibility provided by Illinois Department of Revenue, along with a copy of the building permit issued by the Building Official (if applicable), must be presented to the retailer at the time of purchase.
[1]
Editor's Note: See 20 ILCS 655/1 et seq.
(C) 
Waiver of Building Permit Fee Amounts. The Village will waive the normal amount which may be charged for any and all fees for permits for new constructions, expansions and/or rehabilitation of commercial, industrial or residential projects within the Village's portion of the Vandalia/Fayette County Enterprise Zone. This provision of this incentive shall not be construed to provide for the elimination of any permit. All construction-related permits are still required for any project within or outside of the Village's portion of the Vandalia/Fayette County Enterprise Zone. Such waivers shall not include water tap and sewer tap fees.
Upon designation as an Enterprise Zone and in an effort to successfully facilitate the management, operation and development of the Vandalia/Fayette County Enterprise Zone, the position of Enterprise Zone Administrator is hereby created. The position of Enterprise Zone Administrator will be assumed by the person holding the position of Executive Assistant of the City of Vandalia. The duties associated with the position of Enterprise Zone Administrator shall be performed in addition to the regular duties of the position of Executive Assistant and are as follows:
(A) 
Supervise the implementation of the provisions of this chapter and the Illinois Enterprise Zone Act;
(B) 
Act as liaison between the Village, the Cities of Vandalia and St. Elmo, the Village of Ramsey, the County of Fayette and the Illinois Department of Commerce and Economic Opportunity, and other federal, state and local agencies, whether public or private;
(C) 
Conduct an ongoing evaluation of the Enterprise Zone program and submit such evaluative reports on at least an annual basis to the Mayor and City Council of the City of Vandalia;
(D) 
Promote the coordination of other relevant programs, including, but not limited to, housing and economic development, small business, financial assistance and employment training within the Enterprise Zone;
(E) 
Act as program manager responsible for the Enterprise Zone's day-to-day operations; and
(F) 
Have such other duties as specified by the City of Vandalia.
The Village President and Village Clerk of the Village of Brownstown shall have and are hereby given authority to execute an intergovernmental agreement between the Village of Brownstown, the Cities of Vandalia and St. Elmo, the Village of Ramsey and the County of Fayette which will indicate their willingness and desire to participate in the Enterprise Zone program and which will set out the criteria for cooperation, participation and management of said Enterprise Zone.
This chapter does not prohibit the Village from extending additional tax incentives or reimbursements for residents and business enterprises in the Enterprise Zone or throughout the Village by separate ordinance.
This chapter and every provision thereof shall be considered separable, and the invalidity of any section, clause, paragraph, sentence or provision of the chapter shall not affect the validity of any other portion of the chapter.
All ordinances, resolutions or parts of ordinances or resolutions conflicting with any of the provisions of this chapter shall be and the same are hereby repealed.
This chapter shall be in effect from and after its passage, approval, and publication as required by law.