GENEVA — The city has taken a key step for a $30 million downtown housing project to become reality.

Last week, the city’s Industrial Development Agency approved $1.5 million in tax breaks for Litheo Flats, a 64-unit housing development planned for a long-vacant space at 595 S. Exchange St., known to many locals as the OEO site. The five-story, 71,000-square-foot project features 47 one-bedroom units and 17 two-bedroom units.

However, the lone IDA member to vote against the tax breaks characterized the incentives as a subsidy for a developer that he said is making significant money off the project.

At a special meeting Aug. 17, the IDA voted 4-1 to approve the tax package, which includes a property tax exemption of $324,205, $900,000 in local and state sales tax exemptions, and $324,000 in state and local mortgage-recording tax exemptions.

IDA member Josh Kayne was the lone no vote on the incentives. Kyle Olschewske was absent from the meeting.

Pivotal is the developer, working in tandem with Taylor the Builders, Greenleaf Builders, and Hunt E/A/S after they were chosen by the city to develop the city-owned parcel.

Kayne, who previously voted against a public hearing on the tax incentives over a host of concerns, including an incomplete financial assistance application and project feasibility, said he could not support the tax-break package. He read a statement during the roll-call vote on the financial assistance resolution.

“At our February 2026 meeting, the developer said they are paying themselves $3.7 million to build the development as a form of company profit,” he said. “It is challenging to reconcile a developer saying they need assistance to make a project feasible at the same time admitting they are paying themselves $3.7 million.”

The tax-incentives package “results in Geneva taxpayers subsidizing the developers’ $3.7 million company profit,” Kayne said.

In April, Kayne said the application for assistance failed to detail payments for various taxing entities over the course of the payment-in-lieu-of-taxes schedule. A PILOT provides reduced tax liability for the owner over a specified period.

The document on IDA’s page on the city’s website still does not contain the payment schedule.

The IDA’s attorney told the agency at a recent board meeting that filling out the PILOT payment schedule is not required, although all other IDA applications for assistance on the city website include this information.

Trey Barbour, senior vice president of development-northeast at Pivotal, did not respond to an email requesting comment on Kayne’s remarks.

IDA Chair Anne Nenneau said she had no comment on Kayne’s no vote on the project incentives.

As for a lack of payment schedule, Nenneau said, “Litheo Flats PILOT terms are in some of the preliminary documents, and I do not recall all the details since this has stretched out over so many months. I do remember that the schedule allowed by the state for affordable housing is different than the typical 15-year suggested abatement our IDA normally uses. I see what you mean about the PILOT information not being completely filled out on the application on the city website. It was discussed in our earlier meetings, but those conversations could have been in executive sessions.”

Neal Braman, the city’s superintendent of building and zoning, said the project has received all the needed city approvals. He believes developers are waiting to hear from the New York State Homes and Community Renewal program on their application for financial assistance. The goal is to break ground in the fall of 2027 and open in ’28.

The project is considered a workforce or affordable housing development, targeting people making $30,000 to $60,000 a year. Rent will be $600 to $1,200 a month, depending on whether it’s a one- or two-bedroom unit.