13-11-020 Definitions.

   When used in this chapter, unless the context requires otherwise:

   “Category A building” shall mean any structure having, by itself or when combined with all other structures on the parcel of property, an enclosed area of over 500,000 cubic feet, that is primarily devoted to institutional, assembly, business, manufacturing, mercantile, industrial, storage, hazardous or miscellaneous use, or any structure primarily devoted to residential use if the structure contains 24 or more residential units.

   “Category A property” shall mean property on which is situated a Category A building and the building itself, whether or not the building is owned by a person who owns the land on which the building is situated.

   “Committee” means the large building transfer review committee.

   “Demolition costs” shall mean a reasonable estimate of the costs to demolish a Category A building as determined by the building department or as submitted by a licensed contractor whose primary business involves the demolition of buildings or, in the event the building is demolished, the actual cost of such demolition.

   “Owner” shall mean the legal title holder or holders of Category A property, except if legal title is held by an Illinois land trust, “owner” shall mean the beneficial owner or owners of the trust. If a Category A building is owned by a person who does not own the land upon which the building is situated, “owner” shall also mean the owner or beneficial owner of the building.

   “Real estate entity” shall mean any person, including but not limited to any partnership, corporation, trust, or single or multi-tiered entity, that exists or acts substantially for the purpose of receiving rental income from, or holding directly or indirectly title to or beneficial interest in real property upon which a Category A building is situated, whether for personal use, the production of rental income, or investment. It shall be presumed, unless proved otherwise, that an entity is a real estate entity if it owns directly or indirectly real property located in the city having a fair market value greater than 75 percent of the total fair market value of all of the entity's assets (determined without deduction for any mortgage, lien or encumbrance).

   “Transfer” shall mean any conveyance or other transfer of an interest in Category A property on or after the effective date of this chapter by:

      (1)   Deed or other instrument of conveyance; or

      (2)   Assignment of a total of more than 50 percent of the beneficial interest in a land trust over a period of three years or less; or

      (3)   Instrument of transfer from the owner or beneficial owner of a real estate entity.

      However, “transfer” shall not include conveyances made by:

      (1)   Tax deed; or

      (2)   Deed of partition; or

      (3)   Deed or trust document issued pursuant to a foreclosure or transfer in lieu of foreclosure or transfer otherwise to enforce a security interest; or

      (4)   Deed or other instrument of transfer to secure a debt or other obligation; or

      (5)   Deed or other instruments of transfer that is a release of property that is security for a debt or other obligation.

   “Vacant and open” refers to a vacant Category A building that has a significant portion of its doors or windows missing or unsecured.

   “Vacant Category A building” shall mean a Category A building that has remained substantially unoccupied by persons legally entitled to occupy the building, or at which substantially all lawful business operations have ceased, for at least three months.

(Added Coun. J. 3-26-93, p. 30292)

13-11-030 Vacant Category A building – Notice to commissioner required – Posting of security when.

   Any owner of Category A property that has situated on it or consists of a vacant Category A building must notify the commissioner of such fact by certified mail within 30 days after the building becomes vacant, or within 30 days after the effective date of this ordinance, whichever is later; provided, however, that the registration of a vacant building pursuant to Section 13-12-125 shall satisfy the notice requirement of this section. The notice shall identify the property and the contemplated use, if any, of the property, and shall provide the name and address of the owner or other person who is authorized to receive notices on behalf of the owner pursuant to this section. If at any time after making an inspection of the property the commissioner determines that the building is vacant and open, the commissioner shall notify the owner that the building must be enclosed, or substantial action must be taken to demolish the building, within 30 days after the date of the notice. The notice shall also state that if the owner fails to take either such action within the 30-day period the owner will be required to post a surety bond or other financial security or insurance as provided in this section. If, at the expiration of the 30-day period, the commissioner determines that the building has not been enclosed, or that substantial action has not been undertaken to demolish the building, the commissioner shall order the owner to post with the city and continuously maintain a surety bond or other financial security or insurance, in an amount equal to the estimated demolition costs, and in a form and duration approved by the commissioner. The commissioner shall also order the owner to post and maintain such security if such action to demolish the building has not been completed within a reasonable time. The order shall be accompanied by a written statement by the commissioner setting forth the basis for his or her determination.

(Added Coun. J. 3-26-93, p. 30292; Amend Coun. J. 6-14-95, p. 2841; Amend Coun. J. 4-12-00, p. 29471, § 1)

13-11-040 Transfer of Category A property – Notice to commissioner required when – Posting of security when.

   Every owner shall notify the building commissioner by certified mail no less than 60 days before transferring any Category A property if:

      (1)   The property will be donated or otherwise transferred without consideration to a not-for- profit organization or to any other person; or

      (2)   The property will be sold for less than 50 percent of its most recently ascertainable estimated market value as determined by the assessor for real estate taxation purposes or, if the assessor has not made such a determination, its reasonably estimated fair cash market value; or

      (3)   More than 50 percent of the purchase price will be financed, directly or indirectly, by the owner by loan or installment contract; or

      (4)   The property has situated thereon or consists of a vacant Category A building; or

      (5)   The property will be sold for more than 50 percent, but less than 80 percent, of its most recently ascertainable estimated market value as determined by the assessor for real estate taxation purposes or, if the assessor has not made such a determination, its reasonably estimated fair cash market value.

   Such notice shall identify the property, the proposed transferee, the proposed date of the transfer and the purchase price. The commissioner may within 14 days after receiving the notice request from the proposed transferee such documentation as may be necessary for the commissioner to determine whether the proposed transferee has the financial resources to repair, maintain, enclose or demolish the Category A building. Such documentation must be given within seven days of the request. If the commissioner determines that the proposed transferee does not have the financial resources to repair, maintain, enclose or demolish the Category A building and that there is a significant likelihood that the Category A building is likely to deteriorate substantially or require demolition within five years, the commissioner shall order the building owner or the transferee to post with the city and continuously maintain a surety bond or other financial security or insurance, in an amount equal to the estimated demolition costs, and in a form and duration approved by the commissioner. Any such order shall be accompanied by a written statement by the commissioner setting forth the bases for his or her determination. Any order issued by the commissioner pursuant to this section shall be made no later than 30 days after receipt of notice of the proposed transfer, or 30 days after receipt of all information requested by the commissioner and the large building transfer review committee, whichever occurs later. Factors that the commissioner may consider when determining whether a building is likely to deteriorate substantially or require demolition within five years include, but are not limited to: the physical condition of the building, the present degree of the deterioration of the building, the proposed use of the building and the lack of plan to reoccupy the building.

   An owner may request that the commissioner conduct an expedited review of the proposed transfer. The request shall be submitted as part of the notice, shall be in writing, and shall suggest a time period for the completion of the review. The commissioner shall make reasonable efforts to accommodate such a request.

   Notwithstanding any other provision of this section to the contrary, whenever any owner is required to notify the commissioner under this section solely because the property to be transferred falls within the description set forth in paragraph (4) or (5) of this section or the descriptions in both paragraphs, the owner may, at the time initial notification is made, submit to the commissioner proof that the reasonably estimated value of the property, as determined by a competent appraiser, exceeds the reasonably estimated costs of demolishing the Category A building or buildings, as determined by a licensed contractor whose primary business involves the demolition of buildings. If the commissioner determines that such proof is satisfactory, no further documentation, and no security or insurance, shall be required under this chapter.

(Added Coun. J. 3-26-93, p. 30292)

13-11-050 Large building transfer review committee – Created – Recommendation to commissioner.

   (a)   There is hereby created the large building transfer review committee, which shall consist of no fewer than five members appointed by the mayor. Members of the committee shall have experience and expertise in the areas of real estate development or finance, or building design, construction, repair or finance. Members of the committee shall serve a three year term or until their successors are appointed and qualified. Members shall serve without compensation. Three members of the committee shall constitute a quorum. The affirmative vote of a majority of those members present and voting shall be necessary for any action of the committee.

   (b)   Whenever a proposed transferee is required to provide documentation pursuant to Section 13-11-040 for the purpose of demonstrating whether the transferee has the financial resources to repair, maintain, enclose or demolish a Category A building, the transferee may request that the proposed transfer be reviewed by the Committee. The request shall be in writing and shall be made at the time that any such documentation is first submitted to the commissioner. When a request is made under this section, the committee shall review such documentation and may request from the building owner or the proposed transferee such other information that may be required for the committee to make a recommendation under this section. After reviewing all of such information, the committee shall make a recommendation to the commissioner as to whether a surety bond or other financial security or insurance is required under Section 13-11-040 and, if so, the amount of such security or insurance that it believes is required. Such recommendation shall be made no later than three business days prior to the last date on which the commissioner may issue an order pursuant to Section 13-11-040. In making a determination under Section 13-11-040 as to what, if any, financial security or insurance will be required, the commissioner shall consider, but shall not be bound by, a recommendation of the committee.

(Added Coun. J. 3-26-93, p. 30292)

13-11-060 Security – Authority of city to receive proceeds – Relinquished when.

   The city shall have the authority to draw against or receive the proceeds of the bond or other security or insurance provided under this chapter to pay, or reimburse the city, for its demolition costs and costs incurred in enclosing the buildings for which the security or insurance was required.

   The building commissioner shall relinquish any such bond or security whenever:

      (1)   The building has been demolished, repaired or enclosed by the owner or transferee and there is no longer a significant likelihood that the building will deteriorate substantially or require demolition within five years; or

      (2)   The building commissioner approves a plan submitted by the owner or proposed transferee for repairing, maintaining, enclosing or demolishing the building and the building commissioner determines that the owner or transferee is able and willing to carry out the plan.

(Added Coun. J. 3-26-93, p. 30292; Amend Coun. J. 3-5-03, p. 104990, § 16; Amend Coun. J. 11-13-07, p. 14999, Art. II, § 1)

13-11-070 Appeal.

   Any person aggrieved by any determination of the commissioner may appeal such determination to a court of competent jurisdiction in the manner provided by law.

(Added Coun. J. 3-26-93, p. 30292)

13-11-080 Confidentiality of document.

   All documents received by the commissioner and the committee pursuant to this chapter shall remain confidential to the extent permitted by law.

(Added Coun. J. 3-26-93, p. 30292)