TIF #4’s Final, Final Payment?
There is some TIF#4 money that has not been spent, and the city council is going to consider dividing it among the TIF members (schools, county, etc.); however, there is still TIF#4 that is due or may be due back to the TIF#4 in a few years.
First: When Edwards Blvd extension was done with TIF#4 money each of the property owners along the extension were assessed for their linear footage along the road. That money when paid was to go back into the TIF#4 fund; however, the city in its wise and clever manipulation placed in the resolution that the assessments were interest-free and did not have to be paid for 10 years. The only private assessments paid at that time were paid by the City of Lake Geneva, with the $600,000 gift to the city from Target (Ryan Corporation), none of the others paid. So, have all of the assessments been paid, and where will that money go after the final distribution of TIF money?
TIF#4 money ($800,000) was given to the theater and the amount owed back to the city is only being reduced by 10% each year, the theater is open, so if the theater fails before the end of the tenth year, where does that money come from?
With the destruction of the Traver Hotel, the Development Corporation was given funds (about $250,000) subject to conditions of which one was that it would build a $500,000 commercial building by 2021 on that property, which the corporation has not begun yet. If that deal goes into default, do they owe some of that money back to the TIF#4 fund?
The City of Lake Geneva received about 1 million dollars from the TIF #4 fund to purchase the new parking meters system. Under TIF rules, the city may be required to pay that money back to TIF from the increased revenue that the parking meters generated for the city, but the city has not done or considered that, yet.