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THE PUBLIC BUILDING COMMISSION LAW

By NELSON O. HOWARTH, Mayor, Springfield

The so-called Public Building Commission Law enacted by the 1955 General Assembly, sometimes known as the "Fort Dearborn Bills" originated under Chicago sponsorship, but it is statewide in application and has become of great interest to all County seats suffering from common problems of inadequate municipal housing. Waukegan already has created a Public Building Commission. Springfield has adopted the necessary resolutions and will have such a commission in May. Chicago will have created its Commission no later than June.

The idea seems to have originated with the Chicago "Fort Dearborn group" of whom Mr. Earl Kribben, Vice President, Marshall Field and Company, is one of the leaders. In substance, the plan was to take several blocks of sub-standard improved land on the North bank of the Chicago River and re-develop the area, using every method available under State and Federal legislation. Thus, one portion would be re-developed for commercial and residential use through Urban Renewal. Another sector would be devoted to off-street parking. Still another would be a federal building under appropriate federal legislation. A fourth sector was to be developed into a State Building area after the sale of the Burham Building. However, one element was missing. There was no appropriate State law authorizing the development of one contiguous area for all of the six local municipal governments having jurisdiction inside the City of Chicago. Apparently, several other states have such enabling legislation. Thus, the Chicago group engaged counsel who prepared and presented to the Legislature Senate Bill 607 and House Bill 965, which have become the Public Building Commission Act.

Whether this new legislation will be of value to Chicago or other county seats depends upon the attitude of our Supreme Court concerning its constitutionality. No test cases yet have been filed, but it appears that one or more will be in the courts no later than May or June, and a decision can be expected in the spring of 1957.

This paper can only summarize the substance of the Act. Only a city that is also a County Seat can inaugurate procedures for creation of a Public Building Commission. It does so by adopting a simple resolution finding that there is need for such a commission. The Mayor causes such resolution to be published. Thereupon, any other local municipal government having jurisdiction anywhere inside such city may join merely by adopting a similar resolution within 45 days from such publication date and transmitting to the Mayor within 15 days thereafter a copy of such concurring resolution. Thereafter, within ten days following the expiration of 60 days from the date of such publication, the Mayor must file all such resolutions with the Recorder of Deeds. By that act a Public Building Commission is organized.

Within 30 days of the filing of all such resolutions in the Recorder's Office, each presiding officer of the local municipal governments adopting such resolution shall appoint, with the consent of his respective governing bodies his allotted number of members to the Public Building Commission. If there is only one another local municipal government joining in such creation, the County Seat City appoints three and such municipal government appoints two. If there are two or more such local municipal governments other than the County Seat City joining in the creation of the commission, each appoints one member and such City appoints a number equal to the aggregate of the other appointments plus one. Certificates of such appointments are forwarded to the Mayor and filed by him with the Recorder of Deeds. The Mayor then calls the first meeting of the Commission and acts as temporary chairman until each member of the group has taken his oath of office and the Commission has elected its presiding-officer. Original terms of 5, 4, 3, 2 and 1 years are drawn by lot. Thereafter, as original appointments expired, each appointing authority makes appointments for a five year term.

The Act requires that a commissioner must be a person well experienced in "real estate management, building construction or finance and may be an employee of a municipal corporation"; but he must have no financial interest in any contract or property of the Commission unless he discloses it in writing. A commissioner receives no compensation except expenses. The Commission may have additional officers who need not be commissioners. It adopts suitable by-laws, rules and regulations. It continues in perpetuity, and has all of the usual powers of a municipal corporation except the power to tax. In addition, it has a long list of specific enumerated powers relating to the purpose of its creation. It may be of more than passing interest that the County Seat City has the power to veto any selected site for erecting, altering or improving a public building. More than one such building mabe erected, but all must be on contiguous land.

The heart of the Public Building Commission Act is its authority to enter into long-term leases up to 50 years with the local municipal governments that joined in its creation, and the further authority of such local governments to levy an annual tax over and above all other statutory limitations sufficient to pay the annual rental. Thus, if this authorization is approved by the courts, a Public Building Commission which, in advance has made proper long-term leases with one or more of the substantial local governments, would have adequate guaranteed rentals to support the sale of sufficient municipal bonds to construct buildings needed to house such local governments.

The Commission has further authority to rent space to other governmental bodies even though they may not have joined in its creation, However, such tenants would not have authority to levy any additional tax for rental payments. It is also important to note that the 1955 General Assembly specifically amended only the Cities and Villages Act, and the County Act to authorize cities, villages, and counties to enter into such long-term leases. Thus, under the present status of the law, any local municipal government other than the County or City that may be interested in the plan, can join in the creation of the Public Building Commission, take part in the appointment of commissioners and actually rent space in the proposed building or buildings. However, any such lease, short-term in nature, would not receive as much credit by prospective purchasers of construction bonds. If the courts approve the Act, it is anticipated that many of the several hundred other forms of local government will seek to have their specific enabling laws similarly amended.

It is recommended that whenever a County Seat City adopts a resolution for the creation of a Public Building Commission all other local municipal governments should likewise join in similar resolutions and appoint commissioners. If they do not, there is no present method for later joining; and by taking part in the creation of

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72 ILLINOIS MUNICIPAL REVIEW—THE VOICE OF ILLINOIS MUNICIPALITIES

THE PUBLIC BUILDING COMMISSION LAW
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the Commission each has only exercised a privilege with no obligation. Each later can decide whether it actually desires to sign a long-term lease.

The Act contemplates that space in such buildings can be rented to private persons, firms and corporations. It would seem that rentals for spaces to title research companies, abstract companies, lawyers, etc. would be at premium rates, particularly if all or most of the local municipal governments were tenants. All land owned and controlled by the Commission must be contiguous, but there is no limitation as to the number of buildings. It is possible, for example, that the Commission might build and rent one building to the City; and thereafter, at a later date, acquire adjacent land and construct a building thereon for another member of the Commission such as the County.

Another practical value of the Act is apparent when one considers the present predicament of most County Seats. Usually, there are 6 or 7 local municipal governments with headquarters scattered throughout the City, each spending separate sums of money either for rental of inadequate space or for maintenance of outmoded decayed, uneconomical buildings. The joinder of all of these expenses for inadequate housing into one sum as rentals for contiguous spaces in modern buildings is quite attractive. In many instances, present tax levies for such rental and maintenance costs would result in little or no special tax contemplated by the Act.

The central location of all local municipal governments into one area is an added convenience to the harrassed taxpayer. Presently, he must chase all over town and fight parking requirements in order to call upon a School Board executive, pay his tax bill, pay his water bill, talk politics with County officials, and stop by the Mayor's Office to raise old Ned about a parking ticket.


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