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Geneva council rescinds Foundry land sale, dives into 2026 budget challenges

Geneva City Council voted this week to formally rescind its agreement to sell a parcel of city-owned land on Jackson Street to Rochester-based Home Leasing, after the developer withdrew plans to build roughly 60 housing units on the former Geneva Foundry site.

Developer pulls out amid financial, site concerns

City Manager Amy Hendrix told councilors during the special meeting that Home Leasing had informed the city it could no longer move forward due to “changes with their financial structure” and site-specific challenges tied to the property. The company, which specializes in affordable housing, also cited shifting federal and state funding priorities.

Councilor John Brennan called the decision “a terrible loss for the city,” noting the project would have added nearly 300 new housing units at a time when Geneva faces ongoing housing shortages. Others, including Councilor James Petropoulos, said the developer’s need for numerous variances would have made the project difficult to realize.

The resolution passed with unanimous support from those present: Mayor Steve Valentino and Councilors Brennan, William Pealer, Peter Gillotte, Patrick Grimaldi, and Petropoulos voted in favor. Councilor Christopher Lavin was present but did not cast a vote, according to the meeting record.

Budget review dominated by rising costs

Following the vote, councilors began a detailed discussion of the city’s proposed 2026 budget. Hendrix outlined Geneva’s major revenue sources — property taxes, sales tax, state aid, and user fees — emphasizing that several, like sales tax and state funding, fluctuate based on economic conditions.

Finance staff highlighted sharp increases in employee benefit costs, especially health insurance, which now accounts for nearly half of all benefit spending. City officials said Geneva’s participation in a regional health insurance consortium helped reduce the increase compared to other municipalities, but overall costs continue to rise.

Police staffing, vehicles, and public safety

Police Chief Ron Eveland briefed council on department staffing, noting Geneva currently employs 36.5 full-time equivalent workers, including 25 sworn officers and two school resource officers. He said staffing remains “at the bare minimum” and that reductions would lead directly to higher overtime costs and slower response times.

Councilors also discussed vehicle replacement costs — about $65,000 per fully equipped patrol car — and ongoing maintenance issues with the city’s Dodge patrol fleet. Eveland said the department plans to transition to Ford Explorers due to reliability concerns.

Council members also pressed for updates on e-bike enforcement, a growing complaint among residents. Eveland said education and targeted enforcement remain the best tools available but suggested local ordinances could be explored to better regulate their use.

Hendrix told the council that legal costs will rise sharply in 2026, with two retainer agreements — totaling about $222,000 — and expected litigation pushing total expenses to roughly $450,000. Councilors asked for an executive session to discuss the pending legal matters in more detail.

The meeting closed with discussion of grants, staffing costs, and event funding. Assistant City Manager Taylor Youngs said her office will recommend an event ordinance next year to improve coordination and cost recovery for city-sponsored events.

The next regular meeting of the Geneva City Council is scheduled for later this month, when further budget deliberations are expected before adoption later this fall.