At the end of the second Plan Commission meeting, five community members who are proponents of the Albion development spoke about how it will benefit Oak Park. Their arguments were economic, ranging from a business group leader who talked about how young, single workers from the Google and McDonald’s headquarters on the West Side of Chicago would live in the high-rise, to John Lynch, the (paid) head of the Oak Park Economic Development Corporation who threatened us with the fact that “there is no other building possible” at the site.
A week later, over 20 citizens of Oak Park refuted every single one of these arguments with data and evidence. Albion estimates that property taxes will be $815,000. But even if one takes that questionable number at face value, Albion adds about .4% to property tax revenues and adds about .8% to village population. Oak Park does not come out ahead.
Similarly, the projected sales tax revenue will be offset by the extra cost of village services to the new retail outlets. A tax analysis by a resident who is a city planner found that the amount of property taxes that will be generated by the structure may not be as significant as they suggest. In 2016, the Vantage building parcels were billed $351K in taxes, and they have a significantly larger footprint than the Albion building. Albion’s tax estimate exceeds this by $578K.
According to the village’s Project Review Report, we can expect about 30 additional school-age children. Districts 97 and 200 together would, by Albion’s figures, receive under $518,000. According to the Illinois Board of Education Report Card, the cost of educating those 30 students will be between $446,000 to $700,000, meaning anywhere from a trivial gain to a significant net loss to the districts.
Albion’s rents start at about $1,700 for a studio. The median household income of $80,196 for households in Oak Park was used for their analysis. However, U.S. Census data says that the median income of non-family households is $43,547, and, since the majority of the apartments are studios and one bedrooms, it’s more likely that single people would rent them. (The Census defines families as households with at least two individuals related by marriage, birth, or adoption. Individuals and unmarried couples would count as non-family households.)
At that income level, the rents are unaffordable. Those who stretch to pay this rent would then have less disposable income to support the downtown businesses.
Many new apartment buildings surround the new Morgan el stop where the McDonald’s and Google headquarters are located, and the West Loop is arguably the hottest area in Chicago for living and entertainment options. There are 46 apartments available of the 270 in the Vantage building, so it is only 84% rented, despite their claims of 95% occupancy. The Albion building will add another 265 units to the 241 from Emerson, 263 from Lincoln (Harlem and South Boulevard) and 28 from the District House (Lake and Euclid). This increase in units is 20% above the population goals set by the village.
With all these units opening without the Albion building, plus a saturation in apartment buildings in Chicago, does it make sense to shove this building in now?
Laura K. Stamp is an Oak Park resident and the founder of the Austin Guards advocacy group, promoting protection for Austin Gardens.