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Batavia council dissolves TIF No. 1, redirects future tax revenue to local districts
Summary
The council voted unanimously to dissolve Tax Increment Financing (TIF) District No. 1 at year‑end, unlocking incremental property tax revenue for schools, park district, library and other taxing bodies that previously went to downtown redevelopment.
The Batavia City Council unanimously approved an ordinance dissolving Tax Increment Financing (TIF) District No. 1 and terminating its designation as an economic development project area.
City staff told the council the TIF term reaches its statutory limit at the end of the year and formal dissolution will allow the incremental valuation generated within the district to flow to taxing bodies previously diverted to downtown redevelopment projects. Staff said terminating the TIF will result in estimated annual distributions to taxing districts: about $747,000 to the school district, $108,000 to the city, $71,000 to the park district, $61,000 to the forest preserve, $59,000 to Waubonsee Community College, $57,000 to the library, and $17,000 to township roads.
Scott Boening, who presented the item, said the downtown improvements financed by the TIF had generated substantial increases in assessed value and that the district’s redevelopment investments had attracted new development along the Depot Pond and nearby locations. Council members noted the TIF’s success in encouraging downtown investment and described the dissolution as a positive moment for the broader set of taxing bodies.
Aldermen approved the ordinance by roll call; the final tally was 12 in favor and two members absent.
The ordinance will be recorded with the recorder’s office, and staff said termination letters have already been sent to affected taxing bodies to notify them of the change. The shift of incremental revenues takes effect after official termination procedures are completed, and taxing districts will gain the redirected funds for their budgets in the next distribution cycle.
Council members praised the downtown redevelopment outcomes as evidence of the TIF’s effectiveness while acknowledging the dissolution transfers future incremental tax revenue from redevelopment projects to the broader community.
