Geneva sets Monday public hearing on tax increment finance district for southeast side

The Geneva City Council will have a public hearing on the creation of a at 7 p.m. Monday at City Hall, 109 James St., to take testimony on the creation of a fourth tax increment finance district – known as a TIF – on the city’s east side.

A tax increment finance district 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.

It diverts increased sales or property taxes generated to pay for specific to improvements within the district. A TIF can last up to 23 years.

Known as the Southeast Master Plan Redevelopment Area, the city’s proposed TIF is 297 acres bounded by Route 38, Fabyan Parkway, the DuPage and Kane counties border and Kirk Road, documents show.

Of those, 224 acres are vacant, 38 acres are improved, about 13 acres are railroad and approximately 22 acres are right-of-way.

The new TIF would have $185 million estimated for eligible redevelopment costs, documents show.

An area can qualify to be a tax increment finance district if it is judged to be blighted, have issues like chronic flooding, lack of growth in equalized assessed valuation, primary structures older than 35 years and inadequate utilities – standards which this acreage meets, according to the city’s eligibility report.

Funds generated within a TIF district can only be used for certain expenses.

The proposed TIF 4 lists a dozen eligible redevelopment costs, including administration and professional service, site marketing, financing, relocation, public works improvements, assembly and site preparation.

The City Council is scheduled to act on creating the TIF at its June 24 meeting.