2011-11-15 Redev Authority Minutes

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The Redevelopment Authority November 15, 2011 Meeting Minutes a conventional loan with a fixed rate for 30 year and they can sell it on Wall Street. A building like the LaSalle Hotel, if turned into condos, the last 25% can get conventional financing, the first 75% have to buy it with cash or get it from a local lender who keeps it on their books. They have a higher interest rate, so it is more expensive for someone to buy. Those who are looking to buy a condo in the downtown area right now have to be a cash buyer or self financed or a rental. In downtown Chicago most of the condo buildings were built as rentals and later turned into condos. For the Troeger site, what he is comfortable investing in is 1,600sft townhomes, two stories, unfinished basements that can be finished, that can be sold for $250,000. These will each have a two car garage, two car driveway, three bedrooms, three and a half bathrooms, no roof top deck but they can have a view of the river. Those purchasing them needing a loan will need a household income of$38,500. If they have debt then they would need to make $50-60,000 per year. There are enough employers in the downtown to pay employees enough to buy these. He thinks the reason the City is willing to subsidize the land is that the market isn't currently here but he thinks he can create it. Mr. Alvarez noted the need for help for west of the river. Mr. Matthews said it is tough to start in the middle of a problem, it is better to start on the side. If you get good quality housing here, and pedestrians on the street to give a sense of security, you can increase the denser housing and more people on the street. The denser the housing the better the City is able financially to do better police patrols. If this is successful then he would like to be able to duplicate it at the Transpo site and have enough units for a potential $500,000 in tax revenues for the City. This would be the best chance to build an urban neighborhood. Mr. Matthews said at the Rink site he brought in over 1,000 truck loads of dirt to raise the site up to give the great views in order to make the property desirable. The City had the property for sale for seven years and was not able to get someone to develop it. Mr. Meteiver stated the addition to the easement in paragraph five would be: If the Grantee fails to develop the Dominant Real Property as provided in the Development Agreement with the City, then this View Easement shall terminate and revert to the Grantor. Upon a motion by Ms. Pfotenhauer, seconded by Mr. Alvarez, the Authority adopted the view easement as amended by Mr. Meteiver. 4. NEXT MEETING DATE: December 6, 2011 5. ADJOURNMENT 4