IL SB2562

Creates "transit facility improvement areas" within one-half mile of Chicago Transit Authority transit stations (Red/Purple Line Modernization, Red Line Extension, Blue Line Modernization, Union Station) to allow redevelopment project areas without standard blight/conservation area findings.

Extends the completion date for redevelopment projects in transit facility improvement areas from 23 years to 35 years, allowing longer tax increment financing periods for transit-related development.

Allows municipalities to allocate tax increment revenues differently in transit facility improvement areas: 80% to the municipality's special tax allocation fund and 20% to other taxing districts, while school districts with coterminous boundaries receive their full proportional share.

Modifies redevelopment plan requirements to waive the requirement showing private investment hasn't occurred and allow projects subject to federal environmental review to skip mandatory public meetings for areas with 10+ displaced housing units.

Amends Eminent Domain Act to require courts to reimburse property owners for "diminution" costs in condemnation cases related to the Chicago Transit Authority Red-Purple Modernization Project.