GENEVA – Aldermen unanimously recommended approval Monday for a tax increment finance eligibility study and redevelopment project near the intersection of Routes 38 and 25.
Acting as the committee of the whole, aldermen approved a contract for $25,700 for consultants SB Friedman of Chicago to provide consultant services for the project. The City Council will take final action on the recommendation.
The area to be studied centers on State Street from the Fox River to the existing tax increment finance district and includes properties along Route 25.
“This is the beginning of the process to actually allocate the funds in order to develop a report that will state whether it is TIF eligible,” Mayor Kevin Burns said. “Otherwise, it is pure hypothesis.”
A tax increment finance district is a development tool where tax dollars are diverted for public improvements such as roads and sewers, as well as other purposes as the law allows.
Once established, a district’s property value is frozen and anything generated from the improvements is the tax increment.
Geneva’s East Side TIF District, established in 2000, covers 24 acres starting just east of the downtown, according to the city’s website.
In September, city officials considered the use of a tax increment finance district to assist with the redevelopment of six significant commercial property near the intersection of Routes 38 and 25 that are vacant and deteriorating.
The significant properties are identified as those at 4 E. State St., 113 E. State, 122 E. State, 130 E. State, 206 E. State and 106 N. Bennett St., officials said.