Geneva council to hold public hearing Monday on east side TIF proposal

The Geneva City Council will hold a public hearing Monday night to take testimony on the creation of a fourth tax increment finance district on the city’s east side.

Known as the Southeast Master Plan Redevelopment Area, the proposed TIF would encompass 297 acres bounded by Route 38, Fabyan Parkway, the DuPage and Kane counties border and Kirk Road, documents show.

Of those, 224 acres are vacant, 38 acres are improved, about 13 acres are railroad and approximately 22 acres are right of way.

The new TIF would generate an estimated $185 million for eligible redevelopment costs, documents show.

A tax increment finance district is a development tool local governments use to encourage development or redevelopment. It freezes property tax payments to local governments, like villages and school districts for up to 23 years. Any increase created through redevelopment is diverted to a special village-controlled fund to help pay for improvements within the district.

An area can qualify to be a tax increment finance district if it is judged to be blighted, have issues like chronic flooding, lack of growth in equalized assessed valuation, primary structures older than 35 years and inadequate utilities — standards which this property meets, according to the city’s eligibility report.

The proposed TIF lists a dozen eligible redevelopment costs, including administration and professional service, site marketing, financing, relocation, public works improvements, assembly and site preparation.

The public hearing will take place at 7 p.m. city hall, 109 James St. The council could vote to establish the district on June 24.