Shodeen looks to buy corner lot for Mill Race Inn redevelopment

GENEVA – Developer Shodeen Inc. could buy the property on the southwest corner of Routes 38 and 25 late next year, as it is a necessary part of its anticipated redevelopment of the 1.4-acre Mill Race Inn property – which it already owns and is located at 4 E. State St. in Geneva, officials said.

The .39 of an acre corner lot, which fronts Route 38/State Street and Route 25/Bennett Street, is contiguous to the Mill Race Inn property. It is owned by Elis Giannini, who said he has had his Geneva Cycle Shop business at 12 E. State St. for 51 years this month.

Shodeen Construction President David Patzelt would not be specific about the company’s plans for the Mill Race Inn property and the corner lot – other than confirming that the deteriorating former restaurant must be torn down.

"We have not gotten a demolition permit yet," Patzelt said. "Really, we want to wait to have a plan for the entire corner – including Geneva Cycle – before we do any demolition of the site."

Giannini said he signed a contract with Shodeen late last year, giving the developer from Dec. 24, 2017, to Dec. 24, 2020, to notify him of its intent to purchase the property from him.

The extended contract gives him an opportunity to relocate his stock of 500 to 600 bikes, Giannini said, once the developer gives him a date certain for the closing.

"Maybe I'll be able to stay until I'm 78 – or until I'm 81," Giannini said.

Giannini said he finally agreed to the sale because Shodeen was offering “$300,000 to $400,000 more than anyone else” for the corner lot, which also includes a consignment store, What’s Your Consignment.

The Mill Race Inn closed in 2011. It was purchased by 4 East State Street Holdings LLC March 1, 2014, for $550,000 from Plaza Bank, according to Kane County property records. The holding company was created through the Shodeen Family Foundation, according to Illinois Secretary of State’s Office records.

The Mill Race Inn has an older building inside of it, Patzelt said, which historic preservationists want the developer to save. Patzelt said the company would likely relocate that older structure to one of its other properties.

"We've got to figure out what to do with the structure that is literally within the Mill Race Inn building," Patzelt said. "It is a heavy stone structure."

Patzelt said while the sale to Giannini is under contract, the company is in its "routine due diligence period – everything from the environmental survey to the title search."

Giannini said he is confident the sale will go through.

"Unless they find a critical mass of plutonium or radium underground … or a small nuclear warhead, they'll take it," Giannini said.

As Geneva city officials consider the creation of a third tax increment finance district – which would include the Mill Race Inn property – Patzelt said the company would be monitoring the discussion.

"We have done work within TIF districts," Patzelt said. "We believe TIF districts are an important tool in redevelopment."

A tax increment finance district allows municipalities to divert the increased assessed value of property and sales taxes that result from redevelopment. The diverted tax revenue can be used for specific improvements, such as buying land, razing buildings, relocating a business, rebuilding streets, sidewalks and utilities.

Under state law, TIF districts can last up to 23 years.

A public hearing on creating the third TIF district in Geneva is scheduled for 7 p.m. May 16 at City Hall, 22 S. First St., Geneva.

Geneva School District 304 officials have formally objected to creating another tax increment finance district, saying desirable riverfront area can be developed without diverting property taxes from the school district to fund improvements .