A Business Development District is a special taxing district, authorized to undertake certain public improvements to be financed through the issuance of notes or bonds that are, in turn, retired by the levy of sales tax within the geographic boundaries of the District. 

Once the BDD Plan is approved, a tax rate, not to exceed 1.0% of the gross receipts from the sales in 0.25% increments is imposed, by ordinance after the date of the approval of the Plan ordinance and until all business district project costs and all municipal obligations financing the business district project costs, if any, have been paid. 

The municipality may impose this tax if it has a development or redevelopment plan for an area of the municipality that:

1. is contiguous (i.e., the properties within the area border each other);

2. includes only parcels of real property that will directly and substantially benefit from the proposed plan; and

3. is blighted, as defined in the Illinois Municipal Code.

If blighted, business district sales taxes may be imposed by the Village without voter approval in the
form of the Business District Retailers’ Occupation Tax, Business District Service Occupation Tax
and the Hotel Operators’ Occupation Tax. Prior to imposing such taxes, the Corporate Authorities
of the Village must approve this BDD Plan.

1. is contiguous (i.e., the properties within the area border each other);

2. includes only parcels of real property that will directly and substantially benefit from the proposed plan; and

3. is blighted, as defined in the Illinois Municipal Code.

If blighted, business district sales taxes may be imposed by the Village without voter approval in the
form of the Business District Retailers’ Occupation Tax, Business District Service Occupation Tax
and the Hotel Operators’ Occupation Tax. Prior to imposing such taxes, the Corporate Authorities
of the Village must approve this BDD Plan.

1. Attract new commercial businesses, including commercial and retail outlets, professional
offices, hotel space and related amenities along Main Street, Runkle Street and Hanna Street;

2. Encourage the retention, expansion and renovation of existing commercial retail businesses in the BDD area;

3 Facilitate the construction, improvement and maintenance of public and private infrastructure and other capital projects along the major arterials of the Village that maintains the community identity and which the Village finds is in furtherance of this Plan or necessary to attract and support new commercial, commercial-retail and light industrial businesses, encourage the retention and expansion of existing businesses, and improve the provision of housing accommodations in the Village; and

4. Maintain the small-town atmosphere, promote the revitalization and historic preservation of older structures in the Village and adopt and enforce property maintenance regulations to enhance the appearance of the community.

1. Eliminate or reduce those conditions which qualify the BDD Area as a blighted area and encourage high-quality building design, landscaping and site improvements which conform to Village land use and zoning requirements;

2. Create new employment opportunities;

3. Increase the availability of commercial goods and services that will help to make Hanna City more attractive for residential growth;

4. Reduce the number of underutilized properties by further encouraging commercial and light industrial development that will stimulate the local economy;

5. Enhance the tax base for the Village and other taxing districts through coordinated, comprehensive planning efforts by either the public or private sectors;

6. Preserve historically significant structures, increase local tourism and further increase retail trade activity, thereby generating new retailer’s occupation tax, service occupation tax and hotel operator’s occupation tax revenues as may be applicable to the Village, the State of Illinois and other taxing districts;

7. Encourage public and private projects that will contribute to the public health, safety, morals and general welfare of the Village; and

8. Increase the aesthetic value of the community, improve the overall quality of life for Hanna City’s residents and promote the type of development and redevelopment that is in furtherance of the Village’s vision and design guidelines in the Village’s Amended Comprehensive Land Use Plan adopted on May 21, 2013.