The Geneva City Council this week approved a resolution to support the preservation and remodeling of the historic circa 1867 Bennett House through its tax increment financing district, or TIF.

Called an inducement resolution, the action tells the buyer under contract for 223 E. State St., that the city will consider financial assistance through its TIF district to allow for the possibility of reimbursements for engineering and surveying.

“You are just voting on the encouragement in inducing the project to move forward,” Economic Development Director Cathleen Tymoszenko said at the Monday, April 6 City Council meeting. “They’re expressing an interest in reviewing TIF assistance.”

By voting to support the inducement, the city agrees to consider TIF expenditures, if the project qualifies, Tymoszenko said.

A tax increment financing district – known as a TIF – is a development tool municipalities use to support development that would otherwise be too expensive to develop with private dollars alone.

“Costs are not set yet,” Tymoszenko said. “We don’t know ... what engineering will reveal. We don’t even know if a TIF request will be recommended. ... What we’re doing right now is setting an intention, that we acknowledge that this property is in a TIF district and we are open to receiving a request for TIF funds. ... Only certain expenditures are eligible by statute.”

The Alteza Group, a developer based in Albuquerque, is under contract to buy it, proposing a preservation and remodel of the existing space for residential and new construction for hybrid live-work units, city records show.

Compass Enterprise Properties LLC bought the property for $900,000 in 2007, township property records show.

By 2017, most of its workers were remote and the extra office space was offered for lease. It’s been listed for sale since 2022, city records show.

The 0.67-acre site includes a house converted to a professional building, a two-car attached garage and a 20-car parking lot.

Second Ward Alderperson Bradley Kosirog questioned why the city wasn’t waiting for the would-be developer to come to them first.

“I feel like an official intent is a commitment,” Kosirog said. “So I’m a little hesitant without knowing any details about voting for it until we know what we’re voting on.”

Tymoszenko said the council was being asked to vote on the encouragement to induce the project to move forward.

“Is this normal procedure?” Kosirog asked. “Why not just wait and see where the project goes?”

“This is a normal procedure for TIF to declare the interest,” Tymoszenko said. “Because otherwise, expenses that you have – that you need to expend to get to the point of understanding your full project budget – would not be eligible for reimbursement.”

Tymoszenko said the historic building has been on the market for years and TIF prioritizes historic preservation.

“We know that a lot of people have walked away from the property due to cost,” Tymoszenko said. “We know there is an historic building there that has a lot of work to be done. ... We have a pretty good idea that the project may have a gap. We don’t know that gap yet and I’m asking for you to let us explore it.”

Third Ward Alderperson Dean Kilburg also questioned the resolution.

“From what I’ve heard, it sounds like somewhat of a blank check,” Kilburg said.

“Absolutely not,” Tymoszenko said.

“Do you disagree with me?” Kilburg asked.

“Absolutely not is it a blank check,” Tymoszenko said.

“We will be doing significant review. We may not even recommend approval there,” Tymoszenko said. “We will be looking at all of the expenses and it will certainly not be a blank check. It is possible that we won’t even need an inducement and we won’t be back.”

Kilburg said the city could be billed for expenses prior to the TIF approval – to which Tymoszenko said, “No, absolutely not.”

Fourth Ward Alderperson Amy Mayer said the proposed resolution was not a blank check.

“There’s only qualified costs in the TIF district,” Mayer said. “We’re not giving anybody a blank check. We’ve reviewed so many of these, you guys, I can’t believe you can feign that this would be a blank check.”

Mayer said she was thrilled with the project.

“I think that this is exactly the kind of thing that the community needs, is to re-enliven some of these areas that haven’t had any action or development in years,” Mayer said.

Despite their initial misgivings, Kosirog and Kilburg both voted yes for the TIF inducement resolution, making the 10-0 vote unanimous.