Geneva Aldermen Reject Proposal for Economic Incentives Amid Coronavirus Crisis

Strategic Insights -

A proposal to assist the revitalization of a vacant downtown building was narrowly rejected by Geneva aldermen, with some expressing concerns over offering economic incentives to a new business during the coronavirus crisis. The city council voted 5-4 to deny the agreement with Industry House LLC, who planned to transform the property at 124 W. State St. into a second location of their Ottawa restaurant, Burger and Sushi House. Mayor Kevin Burns plans to bring the proposal back to the city council for a more "robust discussion" and to correct misunderstandings regarding the potential sales tax rebate.

Key Takeaways:

  • The city council voted 5-4 to deny the economic incentive agreement with Industry House LLC, who planned to invest over $3 million in the site.
  • The proposed agreement would have rebated 75% of the 1% municipal sales tax generated at the site over the next decade, capped at $365,200.
  • The deal also included the deferral of a parking fee of up to $150,000, reimbursed by sales taxes after the property owners are rebated.
  • Fourth Ward Alderman Gabriel Kaven changed his vote from supporting to opposing the measure, citing concerns about the size and scope of the incentive deal.
  • First Ward Alderman Tara Burghart opposed the proposal, stating that it's not the right time for the city to offer financial assistance for such a project amidst the pandemic.
  • Aldermen Robert Swanson, Dean Kilburg, and Becky Hruby also cast dissenting votes.
  • Mayor Kevin Burns plans to bring the proposal back to the city council for a more robust discussion and to correct misunderstandings regarding the potential sales tax rebate.

Statistics:

  • $3 million: The amount Industry House LLC planned to invest in the site.
  • 75%: The percentage of the 1% municipal sales tax generated at the site that would be rebated under the proposed agreement.
  • $365,200: The maximum amount the city would rebate over the next decade under the proposed agreement.
  • 5-4: The vote count by which the city council denied the economic incentive agreement.
  • 124 W. State St.: The address of the vacant downtown building that Industry House LLC planned to transform into a restaurant.

Sources:

  • "Geneva aldermen reject proposal for economic incentives amid coronavirus crisis"

- Lauren Rohr, Daily Herald. [Source not available online]