Geneva OKs two TIF projects worth nearly $200,000
Geneva aldermen approved two tax increment finance redevelopment agreements Monday -- one for $93,520 and another for $102,770 -- at a special city council meeting.
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. The funds for the two TIFs are to come only from the TIF itself, according to both agreements.
The agreement for $93,520 is with Geneva Pharmacy for the adaptive use of 501 E. State St. at the northeast corner of East State and Woodward Avenue. The TIF funds are for reimbursement of a portion of the improvements, including demolition, site and utility upgrades, foundation repairs, sidewalk extension, facade and landscape to meet the city's design standards, officials said.
The money is to come from the East State Street TIF, which was adopted in 2000 to promote private investment in rehabilitation, officials said.
Economic Development Director Cathleen Tymoszenko said that TIF is set to expire in 2023.
Geneva Pharmacy is committing nearly $517,000 for the building improvements, according to the agreement.
The 0.19-acre parcel has a 1,336-square-foot commercial building, which was built as a residence in 1857, according to the agreement.
Geneva Pharmacy will demolish two additions so the pharmacy itself will be 1,000 square feet, according to the agreement.
At the June 7 committee of the whole meeting, Tymoszenko said public-private partnerships like these are necessary to make these properties functional for the future.
"When we look at public-private partnerships, we need to look at the property," Tymoszenko said.
The second TIF approved was for the Coldwell Banker Real Estate Group, 230 E. State St., a 1.2-acre property with a 4,009-square-foot office building.
Funds will come from the Geneva Fox River TIF created in 2016, according to the agreement.
The project consists of interior and exterior improvements to update the first-floor office and convert the second-floor residential apartment to office space.
If Coldwell Banker sells or conveys the property to a third party within 10 years, the agreement calls for the city to be reimbursed, reduced by 10% for each year that the real estate firm owns the property.
First Ward Alderman Tara Burghart cast the lone no votes on both TIF projects.