Friday, February 10, 2006

Force Majeure

Lake Forest has passed an ordinance setting a teardown tax of $10,000 effective Feb. 16th, for single family homes. The Barat College development is subject to a new $5,000 per unit tax unless the owner includes affordable housing units:
Lake Forest residents who want to tear down a home and rebuild will have to pay a new $10,000 demolition tax when they apply for the permit, effective Feb. 16.

The Lake Forest City Council approved the ordinance establishing the tax at its regular meeting Monday night. The vote was 7-0; fourth ward Alderman James Cowhey was absent.

The ordinance also calls for a $5,000 per unit demolition tax on multi-unit dwellings, to be no less than $10,000 total.

The funds received by the city will be split evenly, with 50 percent going to the city's general fund for road and infrastructure improvements, and 50 percent to be put into a special fund to be established for affordable housing within the city.

The city expects to generate an estimated $200,000 a year with the new tax.

"I expect that we'll probably be at about 20 teardowns for the year," said Director of Community Development Cathy Czerniak Tuesday. "If you look back historically, the city normally saw about eight demolitions a year. That was prior to the current trend of demolitions we see.

"Since 1997, we've seen that number creep up and we're now between about 15 and 20 per year. We do expect to feel continued pressure for teardowns based on (the trend in) neighboring communities."

The dormitories at Barat College will be subject to the $5,000 per unit tax unless developer Bob Shaw complies with the inclusionary housing ordinance and sets aside units within his development at an affordable level. Shaw has said he intends to comply with the inclusionary ordinance.

Payment of the demolition tax will be due before the city issues a demolition permit to the applicant.

"Anyone who has already submitted and filed will be excluded," City Attorney Vic Filippini said Monday night

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There are exemptions for homeowners of 3 years or more, or if a home is severely damaged by force majeure.

Is that what they call the city council up there these days?

2 comments:

Anonymous said...

Is there any indication why they want this tear down tax? By that I mean, are they trying to stop some of the demolition because too many are taking down historic homes? Or is it too disruptive? Or is new construction not suitable?

Anne said...

The full article says Highland Park has something similar which hasn't stopped teardowns.

The reason, which they baldly state, is to subsidize "affordable" housing, namely to subsidize a few favored groups at great cost with little effect (given the high cost of land in the northern suburbs).

It's in response to the state-mandated law which mandates that 10% of a community's housing has to be "affordable" as the state defines it, and a board appointed by the governor will be able to override local zoning. For more info go to:http://www.n-t-n.org/
(Site is not up to date but you get the idea)