Bill
SB 4017
The bill creates NOVA districts and NOVA urban districts within STAR bonds to accelerate large-scale, public-private developments with strict thresholds, streamlined approvals, and
SB4017 Summary (Illinois, 104th General Assembly)
Title: STATEWIDE INNOVATION-PILOT
Purpose and overall intent
- The bill amends the Statewide Innovation Development and Economy Act to create a new NOVA framework for targeted urban development and to establish the Megaproject Assessment Freeze and Payment Law.
- Primary aim: authorize large-scale STAR bond Districts with expanded eligibility criteria (including NOVA districts/urban districts) to spur capital investment, job creation, and regional visitation through public-private development plans.
Key provisions and changes
1) NOVA districts and NOVA urban districts
- Creates New Opportunities for Vacation and Adventure District (NOVA district) and NOVA urban district as specialized STAR bond districts.
- NOVA district: at least 500 contiguous acres; ambitious thresholds during plan approval:
- Capital investment: at least $500,000,000
- Average annual gross sales: at least $300,000,000
- Average annual visitors: at least 1,000,000
- Average annual jobs: at least 151,500 over the life of the district
- NOVA urban district: at least 20 contiguous acres; thresholds during plan approval:
- Initial capital investment: at least $1,000,000,000 (75% infrastructure)
- Average annual gross sales: at least $450,000,000
- Average annual visitors: at least 2,000,000
- Average annual jobs: at least 3,000 over the life of the district
- NOVA districts/urban districts receive preferential treatment in STAR bond project approval and oversight.
2) Definitions and scope (expanded/clarified)
- Defines terms used in STAR bond and NOVA contexts (e.g., Master Developer, Project Costs, Development User, Infrastructure, Local/State Sales Tax Increment, Feasibility Study, Market Study, etc.).
- Clarifies what counts as project costs, including infrastructure, buildings, rides/attractions (for entertainment venues), design/construction, job training, financing costs, and certain salaries, with explicit exclusions (e.g., salaries for public employees not directly tied to STAR bond operations).
- Establishes what constitutes a NOVA district plan versus a standard STAR bond district plan.
3) STAR bond district establishment and governance
- Establishment process (Section 5-20) requires a public hearing, master development agreement, and submission to state agencies for review.
- For NOVA districts, Governor’s office involvement is required with timelines designed to speed final approval (60-day window for NOVA vs 180 days otherwise).
- Requires master developer to own/control a majority (at least 50%) of acreage within the STAR bond district at appointment.
4) Project approval, feasibility, and oversight
- Section 5-30 introduces mandatory feasibility studies for proposed STAR bond projects, with detailed content requirements (economic impact, market analysis, visitation, infrastructure, etc.).
- Agencies (Department, Revenue, Governor’s Office of Management and Budget) jointly review STAR bond district plans and project plans; final approval rests with the Governor.
- NOVA districts/urban districts have specific timing and review criteria, with streamlined approvals (180 days for NOVA districts, 60 days for NOVA urban districts).
5) Financial and developmental caps; incentives
- Caps on State sales tax increment reimbursements:
- Non-NOVA projects: up to 50% of total development costs or $75,000,000, whichever is lesser
- NOVA districts: up to 50% of development costs or $800,000,000
- NOVA urban districts: up to 75% of development costs or $1,600,000,000
- Debt maturity: STAR bonds generally up to 23 years, with potential extension to 35 years; NOVA-related projects have a 35-year maximum.
- Penalties: if milestones (jobs, development costs) are not met, the State may impose penalties, unless delays are due to force majeure.
- Enhanced oversight and project labor provisions (including project labor agreements) for major projects.
6) Megaproject Assessment Freeze and Payment Law (new)
- The text references the Megaproject Assessment Freeze and Payment Law, granting that property receiving a megaproject certificate may be eligible for an assessment freeze. Details are not fully enumerated in the excerpt but signals a mechanism to stabilize property tax assessments for megaprojects.
Who is affected
- Municipalities, counties, and other political subdivisions seeking STAR bond districts and NOVA districts/urban districts.
- Master developers, developers, codevelopers, and subdevelopers involved in STAR bond projects.
- Property owners within STAR bond districts, as tax increment financing and assessment rules apply.
- Residents, workers, and visitors in NOVA districts/urban districts due to anticipated large-scale investment and job creation.
Procedural and timeline highlights
- Requires initial notices and public hearings; submission windows include:
- STAR bond district district plan: due for review by Jan 1, 2027
- STAR bond project plans: due by June 1, 2028 (for non-NOVA) and concurrent for NOVA districts
- Governor’s final approval timeline: 180 days (NOVA) or 60 days (NOVA urban) after agencies’ findings
- Public hearing and project development milestones govern initiation and progression of projects with funding tied to milestones and duration.
Notes
- The bill is complex, blending expanded NOVA district incentives with stringent thresholds, feasibility scrutiny, and extended oversight to ensure project viability and public benefit.
If you’d like, I can provide a section-by-section mapping to current Illinois law or a comparison table highlighting NOVA versus standard STAR bond provisions.
Compiled from official sources — confirm details with the bill’s official record.
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