Over the past decade, neighbors here on the south end of River Forest have come together over the redevelopment plans for our small stretch of Madison Street. I have witnessed firsthand the time, talent, treasure, and emotional investment in expressing concerns and hopes for what will soon be our new neighbors.
But unfortunately, those investments will not yield positive returns for those adjacent to the proposed 72-unit luxury apartment rental building. That is because the village specifically requested any proposed development maximize tax revenues to the village.
Could V3 construct a smaller building that is still profitable? Yes, of course — just look across the street. But in doing so, tax revenues would not be maximized on the site.
Why “luxury” rentals and not condominiums? Rental apartment buildings of this size are assessed as a whole and not on a per unit basis. An “income approach” method is applied, meaning, the higher the rental rate, the higher the assessed value and thus the larger the tax bill. Plus, no homeowner exemptions apply.
We are one of just a few municipalities that are non-compliant with state-mandated affordable housing, but since the first and only goal is revenue generation, luxury rentals drive the most residential tax revenue. That means that this development will not address this longstanding matter and will do nothing to help our lower-salaried neighbors, such as schoolteachers, on the path toward homeownership and wealth building.
I strongly urge the LAF Neighborhood Association, if it still exists, to commission their own independent traffic and safety study of this proposed development. This may be the only option if there is to be any hope of reducing the magnitude of impacts the proposed development promises to impose on our safety, schools, and infrastructure. The money is doing all the talking right now, but the safety and welfare of our residents will speak louder (I hope).
Renee Duba
River Forest
Source:
Cook County Assessor’s Office
How commercial properties are valued, based on potential gross income
https://www.cookcountyassessoril.gov/commercial/how-commercial-properties-are-valued