Geneva may use incentives for factory site

The Geneva neighborhood that's home to the vacant Cetron factory on Richards Street is eligible for redevelopment using property tax dollars, a consultant says.

Evanston-based Teska Associates Inc., hired by the city in the spring, found that the area -- just west of downtown -- met five of 14 criteria required by state law to establish the special taxing district: obsolescence, or the condition or process of buildings falling into disuse; deterioration of buildings; presence of structures below minimum code standards; inadequate utilities; and decline in equalized assessed value.

Establishing a tax-increment financing district -- in which property tax payments to the city, schools and parks are frozen for years, while any increases in taxes go to pay for infrastructure improvements or developers' costs -- is key to attracting developers to invest in the area, Chris Aiston, the city's economic development director, said this week.

A TIF district could be used to pay for improving the area's water, sewer and electrical service or even to help developers buy sites for redevelopment.

"The area is not attractive to private investment now," Aiston said, calling it "cost-prohibitive" because of work needed.

The area studied by Teska is bounded by Anderson Boulevard on the west, State Street on the south, a railroad right of way on the east and the Burgess-Norton Co. property on the north.

Owners of the Cetron building, where electronics equipment including vacuum tubes once was produced, and a local landlord have talked to city officials about constructing mixed-use developments, including businesses along State Street and housing to the north, Aiston said. Formal plans have not been submitted.

But several Geneva aldermen disagree with Teska's proposal. First Ward Alderman Sam Hill, who represents the area, questioned some of the findings of the study.

"I'm not familiar with any building in this area having such deterioration," Hill said, suggesting the city validate the findings with its code enforcement officer.

First Ward Alderman Charles Brown also faulted the study, saying he agreed the findings were accurate for the area on the east side of Richards but not west.

The committee voted 5-3 to accept Teska's report, with Hill, Brown and Alderman Dorothy Flanagan dissenting. Another vote is scheduled for Monday's city council meeting.

Second Ward Alderman Bob Piper said the special taxing districts have "a proven track record. I absolutely support it."

If the council accepts the study Monday, the next steps include a cost study and a public hearing.

The area could become the city's third TIF district as early as January. In 2005, the city retired a district off River Lane, just west of the Fox River, which now includes condominiums and a riverfront park.

A 60-acre district along East State Street was established in 2000. Improvements include the CVS Pharmacy and an Aldi grocery store under construction.