Batavia may help downtown business owner with bathroom remodel

Batavia aldermen are considering helping the owner of two downtown buildings pay for upgrading its restrooms, including making them accessible to disabled people, in the hope that better facilities will attract tenants or a buyer.

But one alderman is questioning whether it is appropriate to spend city tax-increment financing money on such a project.

A special committee discussed the $21,350 request Tuesday for work at 4-6 E. Wilson St.

The first floors have been vacant since the nearby bridge over the Fox River was closed for reconstruction for a year, owner Bob Gunter said. The new bridge opened in 2008. He's had few tenants on the upper floors, too, he said.

Gunter bought the building in 2005.

He is asking for a 50/50 Downtown Improvement Grant. The initial proposal is that he wouldn't be reimbursed for the restroom work until he sells the building; presents leases showing the whole building rented out; or shows that at least half of the first-floor street-front space is rented to businesses that generate sales or food/beverage taxes for the city.

Aldermen were cool to the idea of reimbursing upon sale of the building, and indicated they wanted to see leases of at least three years. Alderman Susan Stark said she is concerned that a tenant might want the restrooms in a different spot, or have different fixtures.

Others questioned whether the city should be involved at all.

"To support speculation on a real estate venture, I am having a hard time in our role as a municipality," Alderman Nick Cerone.

The grant would be paid with money from a tax-increment-financing district fund. Alderman Marty Callahan discussed whether that was appropriate, given that the TIF fund is supposed to be used for work that increases the value of a property so that its property taxes increase, reimbursing the TIF fund. Chris Aiston, the city's economic development consultant, said business buildings are not evaluated by assessors the same as residential buildings; how much money the building is making is part of their calculations, not just the construction costs of improvements, he said.

Gunter said given the plumbing layout for the building, the current spots are the only places he believes restrooms could be placed.

Aldermen suggested that any agreement include a stipulation that the city will only pay for restroom renovations this one time.

No action was taken, as a formal agreement has not been written. Aiston and Gunter will discuss the council's concerns.