Geneva 304 school board supports 12-year extension for TIF district
The Geneva Unit District 304 board voted 6-1 Monday in of support the city of Geneva's plan for a 12-year extension of its East State Street tax increment financing district.
Established in 2000, the East State Street TIF2 is set to expire at the end of the year, under state law. The city has asked all taxing districts within the TIF, including District 304, for letters of support to take to state lawmakers, who could pass legislation extending the district.
Extending it would allow the TIF to help fund improvements to Route 38, which have been delayed by the Illinois Department of Transportation.
Board President Larry Cabeen said he would vote to support the city's resolution "because I am an optimist." "Ultimately, we will all benefit," Cabeen said.
Board member Jackie Forbes said she could see the value in improving the rest of the Route 38/East State Street corridor to attract new business, as the portions already improved have attracted a variety of businesses.
"Once the roadway is in, then people can see - right now they can't envision what it will look like in the future," Forbes said. "I believe once that roadway project is done, people are going to say, 'I want to move there now.'"
Board member Paul Radlinski cast the lone no vote. He said it would take too long for the district to recoup tax revenue being diverted to the TIF district.
"That would mean a total of 35 years that the EAV (equalized assessed valuation) would be frozen at the year 2000," Radlinski said. "And this district will miss out on that tax. The district will eventually start to recover the property tax revenues after 2035. But after putting 35 years in ... it's still going to take probably 10 to 12 years for the district to recoup money that we put in, in those 35 years."
A TIF district is an economic development took that freezes property tax payments to local governments like school and park districts. Any additional tax revenue generated by increasing property values is diverted into a special municipal fund, to be spent on improvements within the district's boundaries.
Radlinski suggested a shorter extension, possibly five years or less, to allow the district to start benefiting from the increase in property values sooner.
"I can't support the city's request the way it is currently set up," he added.
The city has received support now from Geneva Township, Geneva Township Highway District, Waubonsee Community College, Kane County Forest Preserve District and Kane County, City Administrator Stephanie Dawkins said.
Remaining is the Geneva Public Library District, could decide Thursday, Dawkins said.
With letters of support from each taxing district, state Sen. Don DeWitte, a St. Charles Republican, can take the city's TIF extension request to lawmakers during the fall veto session, officials said.