The Batavia City Council is presently considering the formal designation of a new Tax Increment Financing (TIF) District within the City. This proposed district, to be named “West Town TIF District”, is a 27-acre neighborhood located approximately one-half mile west of the Fox River and centered on the intersection of Main Street and S. Harrison Street. This neighborhood was the subject of a comprehensive land use and economics study in 2015, concluding with a findings that the West Town area is eligible for TIF designation by state statute.
Under state tax increment financing law, the City of Batavia may offer private property owners and developers financial assistance as an incentive for them to invest in a TIF area, with the intent of addressing stagnant or declining land values, incompatible neighboring land uses and depreciating private buildings and public infrastructure. As the private investment occurs and results in increasing land values, the increase in taxes derived from such values (the “increment”) is deposited in a special account specifically established to fund the City’s TIF financial incentive program. Under this financing plan, in large part, new development can essentially pay for itself.
The Batavia City Council is expected to vote on whether or not to designate the West Town redevelopment area as a TIF District when it meets on Monday night, January 4, 2016.