City approves up to $1 million in TIF aid for 72‑unit workforce housing at 400 South River Street

The Batavia City Council voted June 1 to approve a redevelopment agreement that authorizes up to $1 million in tax‑increment financing (TIF) assistance to Fox River Affordable Housing Corporation for a proposed 72‑unit workforce and affordable housing project at 400 South River Street.

The resolution (2026‑066‑R) authorizes TIF assistance to help the developer purchase the land and includes a negotiated payment‑in‑lieu‑of‑taxes provision and a clawback clause that would allow the city to recover land or funds if the project fails to advance. Staff said the developer aims to close in July and expects about 14 months of construction once the project begins.

Mayor (presiding) welcomed the developer and, citing a colleague’s experience in nearby Elgin, said he had received positive references about the group’s track record providing housing in other communities. “Based on that, I didn’t find anything I needed to get excited about,” the mayor said, adding the project will provide housing for people who need decent, affordable options.

Why it matters: The council’s approval commits local TIF resources to enable a downtown housing project the city says will add workforce units and support downtown revitalization. The agreement’s clawback and payment‑in‑lieu terms are intended to limit the city’s long‑term tax exposure if the development does not proceed as planned.

What the council approved: The motion passed on a roll call vote recorded in the minutes as 11 yes and three absent. The meeting record shows no opposing votes or abstentions. Council also approved a professional services agreement (resolution 2026‑67‑R) for an exterior condition assessment of about 75 downtown buildings and cleared the consent agenda, which included two zoning ordinances (2026‑22 and 2026‑23), payroll and accounts‑payable items, and approval for the annual fireworks display.

Details from the staff presentation: Staff described the redevelopment agreement as structured to assist land purchase and to protect the city through a clawback if the project stalls. The presentation noted the TIF assistance is limited to the amount authorized (up to $1 million) and that further funding or grants were not specified during the council discussion.

Next steps: Staff said the developer was aiming to close in July, after which construction would run roughly 14 months. The resolution establishes the city’s authority to execute the redevelopment agreement; the contract and disbursement timing remain subject to final closing conditions and the developer meeting the agreement terms.

Votes at a glance: The council’s recorded roll calls show the agenda amendment adding the Active Transportation update, the consent agenda, resolution 2026‑67‑R (building assessment), and resolution 2026‑066‑R (400 South River Street redevelopment) all passed on roll calls that recorded 11 yes votes and multiple absences at various points in the meeting.

The council adjourned the regular business portion of the meeting and moved to an executive session later in the evening to discuss the purchase of real estate; no public action on that item was recorded in the minutes.