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A separate fund is hereby established and designated the Industrial Corridor System Fund into which 100% of the funds collected from any rezoning under this chapter will be deposited. The revenues of the Industrial Corridor System Fund shall be reserved and utilized exclusively in accordance with this chapter.
(Added Coun. J. 7-26-17, p. 53898, § 1)
The purpose of this chapter is to mitigate the loss of industrial land and facilities in conversion areas by generating funds for investment in receiving corridors in order to preserve and enhance the city's industrial base, support new and expanding industrial uses, and ensure a stable future for manufacturing and industrial employment in Chicago. The legislative intent of this chapter is to promote the city's vital interests in job creation and a diversified economy.
(Added Coun. J. 7-26-17, p. 53898, § 1)
(a) The provisions of this chapter shall apply to all rezonings in conversion areas.
(b) If a rezoning, as defined in Section 16-8-020, includes a character building, as defined in the applicable Industrial Corridor Overlay District of Chapter 17-7, and such character building will be maintained, reused or rehabilitated, such a rezoning is not subject to the conversion fee, as defined in Section 16-8-020. However, such conversion fee-exempted rezonings are subject to the following:
(i) The rezoning must be reviewed as either a Type I application, pursuant to Section 17-13-0302-A, or a planned development, pursuant to Section 17-13-0600.
(ii) The building height of any character building which is maintained, or other existing, non-character building, which is maintained, may not be increased by more than 10 feet, building height increases pursuant to Section 17-3-0408-B are not permitted.
(iii) The cumulative building coverage of all character buildings which are maintained, or other existing, non-character buildings which are maintained, may not be increased by more than 10 percent.
(iv) The floor area ratio may be no greater than that which is necessary to maintain, reuse or rehabilitate character buildings, and other existing, non-character buildings, or that which is necessary to provide improvements to character buildings, and other existing, non-character buildings, as contemplated in Sections 16-8-070(b)(ii) and 16-8-070(b)(iii).
(v) The rezoning is not eligible for the bonus floor area described in Sections 17-7-0406 or 17-7-0455. However, floor area ratio increases achieved pursuant to Sections 17-3-0403-B, 17-3-0403-C, 17-4-0405-C or 17-4-0405-D are allowed.
(vi) The character building must be declared, and remain, an official Chicago Landmark and the zoning lot or lots subject to the rezoning must adhere to the requirements of this Section 16-8-070(b) for the lesser or 40 years from the date of the final action by the City Council on the rezoning application or the elimination of the applicable conversion area as further described in Section 16-8-030.
(vii) Italicized terms used in this section indicate terms defined in Title 17 of the Municipal Code of Chicago, the Chicago Zoning Ordinance.
(Added Coun. J. 7-26-17, p. 53898, § 1; Amend Coun. J. 12-16-20, p. 25562, § 1)
(a) The conversion fee shall be calculated as follows:
Fee | = | Industrial site replacement need (square feet)* | x | Industrial site replacement cost (per square foot)** | x | Developer's share*** |
* Industrial site replacement need = Net site area of development site (square feet)
** Industrial site replacement cost (per square foot) = Median citywide industrial land acquisition cost (per square foot) + Average cost of building rehabilitation and site preparation of industrial property (per square foot) + Average cost of environmental remediation (per square foot) + Typical cost of industrial street rehabilitation (per square foot)
*** Developer's share = 25%
(b) The conversion fee required to be paid under this chapter shall be the fee in effect at the time of payment.
(c) The commissioner is responsible for updating the industrial site replacement cost at least once every five years.
(Added Coun. J. 7-26-17, p. 53898, § 1)
(a) The conversion fee is payable in full prior to the issuance of the first building permit for any building or buildings on a development site; provided, however, if the development site is a planned development, and the planned development is being constructed in phases, the conversion fee shall be paid on a pro rata basis as the first building permit for each subsequent new building or phase of construction is issued. The amount of the conversion fee due prior to the issuance of a building permit in a planned development that is being developed in phases shall be calculated by multiplying the conversion fee due for the planned development as a whole by a fraction, the numerator of which is the amount of floor area in the building or buildings for which the permit is then being issued and the denominator of which is the total amount of floor area approved in the planned development (calculated as the total maximum floor area ratio in the planned development multiplied by the total net site area in the planned development), as follows:
Conversion fee due at the time of issuance of a building permit for construction in a planned development* | = | Conversion fee for planned development as a whole** | x | Floor area approved for construction in building permit for applicable building or phase ÷ maximum floor area approved for construction in planned development as a whole*** |
* Each payment is due prior to the issuance of the first building permit for any building or buildings in the planned development.
** The total conversion fee shall be determined by calculating the net site area of the planned development (square feet), times the fee rate in effect at the time of building permit issuance, times the developer's share, as calculated pursuant to Sec. 16-8-080(a), as the same may be adjusted in accordance with Sec. 16-8-080(b). Since the conversion fee is calculated at the time of building permit issuance, not at the time of rezoning, the amount of the fee may change over time.
*** Maximum floor area is calculated as the total maximum floor area ratio in the planned development multiplied by the total net site area in the planned development.
(b) The applicant shall file with the department, on such form as the department may develop, a report indicating the number of gross square feet in the development site, the net site area of the development site, and any other information the department may require to determine the applicant's obligation to pay the conversion fee.
(Added Coun. J. 7-26-17, p. 53898, § 1)
Upon a rezoning of land within a conversion area, the department may record, or require the applicant to record, a notice against the rezoned area or any portion thereof to ensure that the requirements of this chapter are enforced. The notice shall include (a) an accurate legal description of the rezoned area or any portion thereof; (b) a statement that future development is subject to the conversion fee; (c) a statement that the amount of the conversion fee will be determined in accordance with this chapter; and (d) a statement that if the conversion fee is not paid, the department may impose a lien on the rezoned area, or the applicable portion thereof, in accordance with Sec. 16-8-110. After the conversion fee for any development site or portion thereof has been paid, the commissioner shall have the authority to release the notice against such development site, or the applicable portion thereof, upon the applicant's request and without further city council action.
(Added Coun. J. 7-26-17, p. 53898, § 1)
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