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A project rendering from a past Batavia city memo.
Batavia's City Council voted unanimously Monday to approve a $1 million TIF (tax increment financing) agreement with Fox River Affordable Housing Corporation for a 72-unit apartment building at 400 S. River Street.
Documents show that the project, called Residences at River Pointe, will serve low- to moderate-income residents with an expected building cost of more than $28 million.
Here's what else to know:
The site: The property is a former stone quarry within Batavia's TIF 3 district. The city's own South River Street Corridor Plan (adopted earlier this year) identified the area as a priority for redevelopment and housing.
Project funding: The $1 million in TIF funds, reduced from an initial $1.2 million in earlier proposals, will be paid out as a lump sum primarily to cover the purchase price and other costs like engineering and architecture. A financial review by city consultant Baker Tilly concluded the project would not be viable without the public subsidy for the developer.
The tax picture: Because state law allows affordable housing developments to seek property tax abatements, the city negotiated a payment in lieu of taxes to offset lost revenue. This will start at $15,000 in the first year with a 3% annual escalator. After 15 years, the property comes off abatement and the city expects it to generate more than $155,000 annually in full property tax revenue.
The developer is targeting a July land closing with a target opening within two years of breaking ground, putting a potential completion date somewhere in late 2027 or 2028.
Read more about the project in this city agenda memo.
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