BATAVIA, IL — An affordable housing development proposed in downtown Batavia will receive $1 million in financial support following a unanimous City Council vote.
The Batavia City Council approved June 1 a Tax Increment Funding agreement with Fox River Affordable Housing for a 72-unit apartment complex at 400 S. River St.
Under Illinois law, Fox River Affordable Housing can acquire certain property tax incentives and abatements due to the nature of the development. As a result, the property tax revenue would be partially abated for 15 years, and it would lower every 3 years until the taxes are at full assessment level after the 15-year period, according to city documents.
The development will bring 52 one-bedroom units, 17 two-bedroom units, and three three-bedroom units to River Street. Eighteen units will be reserved for households earning at or below 30 percent of the area's median income, 38 for those earning at or below 60 percent, and 16 for those earning at or below 80 percent, according to a report from the Chicago Tribune.
City Council first considered the proposal in May 2025.
The developer originally requested a lump sun payment of $1.2 million to help with land acquisition, but due to the tax reduction for the city, staff negotiated to the reduced TIF inventive. The $1 million will be provided as a reimbursement for TIF-eligible costs, including land acquisition, and soft costs, such as engineering and architecture.
The city's agreement with the developer also includes a claw-back provision that states the property will be deeded back to the city or the incentive will be paid back if the project is not completed and open for occupancy within 5 years.
The project cost is expected to exceed $28 million. The developer is hoping to close on the property in July, with construction expected to take 14 months, officials said.
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