Geneva D304 officials consider city’s TIF extension request

GENEVA – The Geneva School District 304 board had its first discussion Monday night about the city’s request for its support to extend the East State Street TIF district another 12 years to complete Route 38 improvements.

The City Council approved a resolution last week to support extending the TIF beyond its 23-year life span because the Illinois Department of Transportation had so many delays for the streetscape improvements.

In order to get lawmakers in the General Assembly to act on extending the TIF in the fall veto session that starts at the end of October or the beginning of November, letters of support are required from taxing districts in the Tax Increment Finance District.

“The short version of this story is this is not a small ask,” Board President Larry Cabeen said. “On the one hand, we have the city being beautified. … I would support that. However, to do that, we would have to give up income here at the school district.”

Giving up income would clash with the district’s mission to educate students to the best of its ability, Cabeen said.

“So this is almost an ethical dilemma in terms of making a decision. And I don’t know how I feel about it. But I am concerned about the fact that it will end up being 30 years that this has been going on,” Cabeen said. “It hasn’t worked in 23 [years]. How can we be sure that we are going to get anything back in the long haul?”

The value of the property in an established TIF becomes the base amount. It continues to go to local taxing bodies, but the increase in the property’s value from redevelopment generates the tax increment that goes into the TIF fund for improvements, according to the Illinois TIF Association and the Illinois Department of Commerce and Economic Opportunity.

Cabeen said later that officials did not know how much money would be at stake if the TIF is extended another dozen years in order to complete the improvements.

Speaking at the Aug. 21 City Council meeting, Economic Development Director Cathleen Tymoszenko said the TIF 2 district was created in 2003 and the city has worked with IDOT since then for roadway, utility and streetscape enhancements for East State Street, extending from the Fox River to Kirk Road.

About 40% of the linear roadway is in TIF 2 and without an extension, the project would be at risk, she said.

IDOT confirmed a bid-letting date at the end of 2024, with construction to begin in spring 2025. Construction would continue for 24 months, which is beyond the timeline for the TIF, Tymoszenko said.

In a memo to the board, Superintendent Andy Barrett recommended they continue the discussion at the Sept. 11 meeting and make a final decision at the Sept. 25 meeting to meet the city’s request to provide a formal response by Sept. 29.