The Geneva City Council will hold a public hearing and hear testimony on establishing a fourth tax increment finance district, known as a TIF, on the city's east side at 7 p.m. Monday at City Hall, 109 James St.
Tax increment finance districts are a development tool used by local governments to encourage development or redevelopment in blighted areas that are too costly to improve with private funds alone.
A TIF diverts increased sales and property taxes to fund specific improvements within a district. A TIF can last up to 23 years.
The city's proposed TIF, known as the Southeast Master Planned Redevelopment Area, covers 297 acres bounded by U.S. Highway 38, Fabian Parkway, the DuPage and Kane county line and Kirk Road, according to documents.
Of that amount, 224 acres are vacant land, 38 acres are improved land, about 13 acres are railroad land, and about 22 acres are railroad track land.
The new TIF is expected to raise $185 million in eligible redevelopment costs, according to the document.
According to the city's eligibility report, an area can qualify for a tax increment financing district if it is deemed blighted and has problems such as chronic flooding, under-growth of equalized assessment values, major buildings older than 35 years and inadequate public amenities. The land meets those criteria.
Funds generated within a TIF district can only be used for specific expenses.
The proposed TIF 4 lists 12 eligible redevelopment costs, including management and professional services, site marketing, financing, relocation, public utility improvements, assembly and site preparation.
The City Council is scheduled to decide on creating the TIF at its June 24 meeting.
