Conservation TIF district recommended
TIFs -- they're not just for blighted areas any more.
An explanation of how a tax increment financing district can spur development that conserves an area's value and prevents it from slipping into blight alleviated the concerns of several Geneva aldermen enough that they voted to accept a study that determined that a near-west side neighborhood was eligible to use TIF for redevelopment.
The unanimous vote means the city can proceed to the second step of creating such a district for the area, which is bounded roughly by State Street, the east side of Richards Street, the south side of Hamilton Street and the east side of Anderson Boulevard. It encompasses the old, empty Cetron factory on the east side of Richards, several commercial/office buildings along State and houses -- mostly rentals -- on the west side of Richards and the east side of Anderson.
In a TIF district, property tax payments to governments are frozen at a level for up to 23 years; as the property is improved and its value increases, the resulting increase in property taxes is instead used to pay for the incentives that encouraged the development, such as better utility service or a development loan.
Last week, 1st Ward Aldermen Chuck Brown and Sam Hill questioned whether the residential properties were blighted. Monday night, economic development director Chris Aiston clarified the concepts of "conservation" TIF districts and those for blighted areas. A firm hired by the city found that it met five of 13 requirements, under state law, for a conservation TIF district. Only three are needed.
In particular, some of the buildings are obsolete and deteriorating.
He pointed to slides of rotting fascia and siding on houses and garages, cracked walkways to porches and garages that are boarded up.
That doesn't even take into account the Cetron building, which is boarded up and fenced off and has broken windows.
Aiston said the owners of the rental housing have asked to be included in the TIF district.
Hill and Brown also are concerned about what could go in there. To the east is the commercial downtown district, and to the west is residential. Brown thinks the area should have some sort of transitional use.
Hill is concerned that no specific plan for the area is on the table.
"In this, we really don't know what is being dreamed about," he said.
Aiston and planning director Dick Untch pointed out that the council still has the prerogative to refuse to make a TIF district and will get to vote on any plans for the area, including zoning changes.
"You have a number of bites at the apple," Untch said.
The second step is determining what it would take, and the cost, to attract development.