Geneva mulls extending East Side TIF to complete Route 38 improvements
Geneva officials want to extend its East State Street Tax Increment Finance District by 12 years, as the Illinois Department of Transportation's updated construction schedule for East State Street improvements goes beyond the TIF's 23-year life span.
A tax increment financing district - known as a TIF - is a development tool local governments use to encourage development or redevelopment in blighted areas that would be too expensive to improve with private dollars alone.
Cathleen Tymoszenko, Geneva's economic development director, said last week that the city's TIF 2 will expire this year.
But IDOT has a bid-letting date at the end of 2024, with construction to begin in the spring of 2025. The work would continue for 24 months, according to Tymoszenko.
"This schedule brings the project timeline past the life of TIF 2 and past the spending range of the TIF 2 funds," Tymoszenko said. "Without the TIF extension, the East State Street project is severely at risk."
Tymoszenko said the city has been working with IDOT since 2003 to get roadway, utility and streetscape enhancements for East State Street, from the Fox River to Kirk Road.
"Approximately 40% of the linear roadway is within TIF 2," she said.
State law does allow a TIF district to be extended 12 years beyond its expiration date. But to get General Assembly approval for an extension, a municipality must get support letters from overlapping tax districts within the TIF.
According to Tymoszenko, state Sen. Don DeWitte, a St. Charles Republican, would support the TIF extension in the fall veto session if taxing districts send letters of support.
The tax increment for the 12-year extended period is about $2.9 million, she said.
The value of property in an established TIF becomes the base amount. It continues to go to local taxing bodies, but the increase in property's value from redevelopment is what generates the tax increment, going to the TIF fund for improvements, according to the Illinois TIF Association and the Illinois Department of Commerce and Economic Opportunity.
Taxing bodies that were notified are Geneva School District 304, the Geneva Public Library District, Geneva Township, Geneva Township Highway District, Waubonsee Community College, Kane County Forest Preserve District and Kane County, officials said.
According to Tymoszenko, successful public-private partnerships in TIF 2 include the CVS Pharmacy, Valley Animal Hospital, Munchie P's commercial building, Dairy Queen, Aldi, Country Village Meats, Riganato's Old World Grille and Isaac's Upholstery.
Fifth Ward Alderperson Robert Swanson said he fears TIF 2 could become "a perpetual TIF," depriving local taxing bodies of their full measure of property tax revenue.
"It seems like it just never ends," Swanson said. "We've been there for 23 years. Now we're looking at 35 years. ... I would think that we could end this TIF as soon as possible once the East State Street construction is completed and move on."
Fourth Ward Alderperson Amy Mayer disagreed.
"From my perspective ... I don't feel like we're done," Mayer said. "I do not feel like this blight is done and everything is peachy."