Tax Vote Deferred

Sorry, didn't get to post earlier. As many of you know the internet was stuck on verrrry slow at least around some parts of Chicago.

I could only get partial Drudge for a while.

Wilmette's vote on the teardown tax was deferred until their next meeting on the 26th, where they will start where they left off.

I watched it on cable. Discussion went on until after midnight. Many waited for hours to speak---A few spoke in favor, most against.

Those who spoke in favor were against teardowns or in favor of "affordable" housing.

Those opposed made these points (Also see previous post by Mr. Backyard Conservative: Taxes: The Joke is on Us):

A teardown tax would be narrowly targeted against a few sellers, most likely elderly and least able to pay, and it is a very heavy tax on their nest egg and inflation hedge.(Proposed at $12,000). One speaker suggested, for example, that a selective tax of village board members would not be viewed as fair either.

There is no evidence that it would reduce teardowns (in fact teardowns in Highland Park have stayed steady or risen slightly.)

It is an unreliable source of funds, as it is dependent on the number of teardowns, which would be affected by the housing market overall. If it succeeds in reducing the number of teardowns, the revenues would decline as well. Other village building revenues would decline--(opportunity cost of reduced revenue from property taxes on the older homes vs the newer ones that would have been built, permit fees, transfer taxes)

Wilmette Housing stock would stagnate compared to other suburbs who do not impose such a heavy tax. The village would be left with more substandard housing, which would still be above the definition of "affordable". The average teardown is worth about $500,000 which is about twice the definition of affordable under the state law.

Wilmette has achieved new housing units for seniors without subsidies, so why start now.

It is bad public policy to initiate a tax without having presented to citizens in Wilmette a specific use/plan for the monies and looking at the affordability and feasability over time.

The deed restrictions on the current vague village "affordable housing" plan would be harmful to those who signed up to receive below-market housing subsidized by the village. If they ever wish to sell they would be prohibited from accruing the full benefits of the appreciation of the property, as their neighbors do---in effect, they would be barred from achieving the American Dream. They would be second class citizens. And they would also probably sue the village to be released from the deed restrictions as discriminatory. The speaker cited Huntington Beach, California where this has happened.

(A couple of the board members challenged this speaker, suggesting that we have these deed restrictions in Wilmette, and we have had no problem.) In fact, these restrictions apply to the senior owned housing at the Atrium, where there has been an outbreak of MOLD, and the residents are appealing to the village to fix the place up for at least a million. See MOLD FEST. Solidarity here by the Interfaith Housing Center, whose spokesperson was in favor of the teardown tax, presumably to fund more such success stories.

The teardown tax would discourage some potential homeowners who want to "build green" , which is already more expensive than regular construction.

In summary, most homeowners who spoke were opposed for the reasons cited above. The head of the village Housing Commission envisions lots of tall buildings along Green Bay Rd. as inevitable, though is willing to entertain the notion that a few may be located in other areas around town, if suitable properties come on the market, which this teardown tax would presumably fund.

So maybe the village will end up the buyer of these houses, after knocking down their value with the teardown tax. And perhaps a few of the displaced and $12,000 poorer seniors will apply for village housing subsidized by this tax.

Or the village could perhaps just condemn the property because the owners "couldn't keep it up", as Highland Park did to create their model "affordable" housing townhouses.

By the way, another speaker pointed out that Highland Park, which started out with a $15,000 teardown tax, has raised it to $25,000.

Public Meeting tonight to invite comment on raising local gas taxes. Finance Committee Meeting at village hall, 7 PM. NOT on cable.