Geneva eyes plan that could lead to $1.4M TIF project

GENEVA – Geneva aldermen approved a resolution for a redevelopment proposal that could involve up to $1.4 million in tax increment financing for a commercial and residential development on the city’s east side.

City Administrator Stephanie Dawkins said approval of the resolution as the Committee of the Whole on Nov. 7 is not the final agreement.

“The resolution is just kind of saying we’re open to the concept,” Dawkins said. “We understand what the expense will likely be for the public participation, but we know we have to refine those details.”

Great Western Flooring proposes to redevelop 122 E. State St. and 130 E. State St., a vacant three-quarters acre site, to build a three-story 20,000-square-foot mixed-use building with 6,000 square feet of commercial space on the first floor. Most of the commercial space will be a design center for the flooring business. Twelve apartments, six each, would be on the second and third floors.

Great Western Flooring, as Emerald RE Holdings LLC, is prepared to buy the site and invest nearly $7.4 million into developing it, officials said.

The company also is asking for a public-private partnership through the tax increment finance district to close a $1.4 million cost gap, Economic Development Director Cathleen Tymoszenko said.

“We are acknowledging that the gap has been identified at this level. … We are setting a framework to move forward,” Tymoszenko said. “We’re seeing if everything gets panned out – two months, three months from now – we come back with a redevelopment agreement for up to the $1.4 million. And everything else is showcased similar to what we saw tonight, that will be supported.”

‘An under-utilized property’

The project’s extraordinary costs are related to the work the current owner did to assemble the site and ready it, Tymoszenko said.

“And there’s utility upgrades. There are some significant extensions that have to be done for both electric, storm sewer and water,” Tymoszenko said. “And then there’s stormwater management, which has not been done for these sites prior. So TIF assistance is requested to close that gap.”

A TIF, or tax increment finance district, is an economic development tool that dedicates sales tax revenue and additional property tax revenue generated within the district to pay for improvements.

Eligible expenses are acquisition, site work, off-site easement costs and professional fees, she said.

The proposal meets TIF guidelines when it was established in 2016, she said.

“The money that they would generate from the development would pay back the investment,” Tymoszenko said. “This really does meet our objectives and it is also a locally owned business and it increases employment, it helps us replace public infrastructure, enhances the streetscape. ... And, of course, it is redeveloping an under-utilized property.”

Another plus is that locating a combined commercial and residential property in that location makes it transitional between the existing commercial and residential uses already there, Tymoszenko said.

Similar project in Naperville

Steve Chirico, the owner and founder of Great Western Flooring, and Joshua Voit, part of the development team, told the aldermen they completed a similar project in Naperville, a mixed use with commercial on the first floor with a showroom and residential on top.

“Why this site – we think – makes sense?” Voit said. “From a mixed use perspective, we’re seeing to the north commercial uses on State Street. To the south, we see residential development. From our perspective, the frontage of State Street works really well for retail.”

Aside from the mixed use, Voit said, the walkability from that location to the city’s downtown “is amazing.”

“It’s a perfect location for that complimentary mixed-use feel,” Voit said.

Great Western Flooring previously had a store in Geneva for more than 10 years and currently is located in St. Charles, Chirico said.

A family-owned business, it has 20 employees and is considered a destination business, Chirico said.

“We have been around since 1988,” Chirico said. “People will come to us for our products because we have exclusive products. … We are a very low-traffic business. We don’t generate a lot of customers every day … that’s just the nature of our business. Every ticket is a high-end ticket.”

Chirico estimated 20 to 30 customers at the most on a particular day, so it does not have a lot of parking needs.

“We are a design center. We don’t have any noise. We don’t have any smells. No lighting. We’re not open late. No deliveries. No traffic. Very little parking traffic needs,” Chirico said. “This is a really good fit for a neighborhood business. It has worked out really well in Naperville. But I think this is an even better site. It’s closer to the downtown.”

The other commercial space would be rented to related businesses, such as cabinetry, he said.

‘Checks the boxes’

The challenges related to the site itself and to working with the Illinois Department of Transportation are what prompted the request for assistance, Chirico said.

“We’ll need some help if we are going to make this work,” he said.

First Ward Alderman Michael Bruno said he supported the proposal.

“We don’t make investments for the business, we make them for the property,” Bruno said. “It checks the boxes for me in terms of how we use TIF monies. … I have fairly liked what you have presented so far. I’m of a mind to let this go to the next level.”

Aldermen requested the developers to include two affordable units among the 12 it proposes.

Mayor Kevin Burns praised the company’s willingness to invest in the city.

“Geneva is flattered that Great Western Flooring has faith in our community and is willing to invest millions of dollars along the East State Street corridor to not only enhance the corridor’s prospects, but to elevate its place in our community,” Burns said.