Genesis gets TIF
MOLINE – The Moline City Council voted 5-3 Tuesday night to give Genesis Health System a “tax increment financing” or TIF district to help it build its medical park.
A TIF gives the builder tax breaks to help it develop the land. The TIF allows the builder to pay off the debt that it took on easier when deciding to do the project.
“They will do it at their expense,” Moline Mayor Don Welvaert said of Genesis. “They will pay their full property tax bill each year.”
Genesis wants to build a multiphase medical park at the corner of 41st Street and 28th Avenue in Moline. Genesis will use the TIF for phase one of the development. Phase one includes a 45,000 square foot medical office, parking lot, and road improvements as well. Total, that part of the project is supposed to cost $10 million. The city will pay for about $1.5 million of that amount.
“It essentially paves the way toward subsequent development of a full-blown medical complex,” Genesis Vice President of Communications Ken Croken said.
The company had originally planned on building four other medical buildings in the continuing phases. If Genesis did not get the TIF money Tuesday night, they would have to reconsider those plans.
Still though, some residents who live along 41st Street do not want the development. Others think that Genesis shouldn’t get help from the government to build their facility.
“I don’t see where they need money from the city of Moline to be able to do a development like this,” Moline resident Bob Lazenby said.
Construction of the entire medical park should be complete by the fall of 2014. Croken says the development has been delayed because of the TIF controversy.