On November 4, we will be voting for a new President of the United States of America….Without question, much is at stake in our country and the world, as we choose the leader who will execute a plan that will take us into economic recovery and hopefully reconnect of our government’s legislative and executive representatives with us, the hard working citizens. 

Hopefully, our elected officials have heard the message loud and clear that we want them to wake up and focus on our family’s needs and goals as we work every day to financially support the government’s initiatives.   WE want our initiatives to be their initiatives and not the other way around.

There seems to be a new or modified news story repeated daily or hourly in all the various media channels to the point that it makes it difficult for us to think or talk about anything else.

Regardless of our opinions on the list of issues that face us today, we must not allow these news stories to overshadow the fact that we must also keep a close eye on the issues and decisions that come before us in our own LaGrange back yards.

This November 4^th, one such very important LaGrange “back yard” decision will be before us. 

It is a very unique question that LaGrange residents will be asked to vote on. It is unique because you will be asked to vote “YES” or “NO” on a Gordon Park referendum that will actually not cost us, the taxpayers and property owners, a dime……hmmmm, imagine that!  For no money out of our pockets, we can and will reap substantial benefits. 

We will be asked to make a decision to allow the Park District of LaGrange to sell a portion of Gordon Park, the 2^nd largest but little used park in LaGrange, in return for a much greater benefit to our families.

FAQ: Is the Park District of La Grange selling all of Gordon Park? (from www.gordonpark.org)

Again, the biggest risk we face is that this important local decision will be overshadowed by the continual stream of noise created due to presidential election, the economic bailout, “Trooper-gate”, the DOW, Kaylee Anthony, Britney Spears and the list goes on …….I just don’t believe that there is much more room left in our daily attention spans for anything more, even though it will affect our community.    

But this decision is important to all of us on several levels and we must take that little bit of extra effort to make the best informed decision on behalf of our community and families. 

Let’s allow our Park District to take action that will result in a much more accessible, efficient, “state of the art park” while upgrading the corner of LaGrange Road and Ogden Avenue.   

If this does not go forward, we will regret that we have allowed an opportunity slip by. The lack of positive action will be an inaction that we will regret for years to come.

For answers to questions, detailed information or to see the “New Gordon Park”, visit www.gordonpark.org.

Please vote on November 4th and don’t forgot to cast your vote for the Gordon Park referendum.

 

 

Prime Property Partners and Community Bank of Oak Park-River Forest

with Real Estate Tax Attorney Anastasia Poulopoulos

 

How does the assessor value our property?
How do we know if the value is accurate?
What if we disagree with the value the assessor placed on our property?
What process do we have available to appeal our real estate taxes?

Thursday, April 24, 2008    7pm-8pm
Prime Property Partners
114 Calendar Avenue
La Grange, IL  60525
Refreshments will be served

Every time we turn on the TV or read the paper, we hear and read about the terribly failing real estate market.  Cocktail party chat now revolves around the houses on every block that have had numerous price reductions and still no contracts, even in LaGrange. Declining homes sales and lower prices can be downright scary…..especially if you are the seller everyone is talking about or if you have any inkling you will be a seller in the future.

Some have taken their homes off the market and decided to outwait the market…if they can.  Others must sell because of retirement, relocation or they just plain have outgrown their current family residence. 

At the end of the day, real estate is no different than any other product or service in the world.  The prices are determined by the basic business principle called “the Law of Supply and Demand”. 

In the early to mid 2000s when lending standards were substantially relaxed and many alternative financing options became available, more and more Americans could qualify for some kind of mortgage (even if they had not job or income) and therefore demand for housing grew substantially because just about anyone could get a mortgage.  There was so much fast and furious demand that the supply of homes for sale decreased at a rate we had never seen before. 

As with any product or service, when there is a lack of supply and great demand, prices can rise dramatically.  We have observed the same phenomenon with gas prices, Google stock, I-phones and movie stars.  When there is great demand and only so much supply of product or service, prices go up proportionately.  And this is exactly what happened to real estate. 

It got to the point that there was so much demand that it was common to have a “bidding war” on a large percentage of homes.  In fact, as agents and sellers (and even the buyers) expected it.  And so prices rose dramatically until…………pop….those that shouldn’t have gotten a mortgage and those who now can’t could no longer buy and……….the demand decreased but the supply remained the same.

Since the demand has decreased dramatically and the supply hasn’t, there is now an oversupply of property as compared to the demand for it.  Mortgage standards have tightened and many buyers that could have or did qualify before don’t anymore.  There are just simply less buyers that can qualify.         

No one knows what to do including the our national government.  Postponing foreclosures or bailing out banks is not going to create more buyer demand…..it will just keep people in their current homes….maybe.

There are several things that can save our home values and even and grow them.……One strategy is to create demand by increasing the population in a given area.  Sounds very strange….doesn’t sound possible and certainly using conventional means of having more babies to create more buyers.  It just can’t happen fast enough to make a difference. 

But in the Lagrange-LaGrange Park-Western Springs area,   we have a very unique opportunity in front of us that could expedite our real estate value recovery, grow our communities and protect our home values. This opportunity could increase the population with 600-700 quality potential buyers in the next several years.

This opportunity is currently being considered by our Village of LaGrange board members.  The Village’s Plan commission that reviewed this project has given its unanimous seal of approval after over six months of intensive study. 

This opportunity is called “Lagrange Place”.  It is a project that would transform the vacant parking lot and the dilapidated building formerly the YMCA on corner of LaGrange Road and Ogden into an impressive gateway into our LaGrange area communities.  It would complement the Triangle retail center with additional boutique style retail stores while infusing our community with additional population for our struggling retailers and at the same time substantially increasing the real estate and sales tax base so that our current residents would bear less of the brunt.

On the North side of the property 26 upscale 3 bedroom townhomes would be built which would average approximately 2,100 square feet (larger than most homes in our area).  Each would have a 2 car attached garage, high end finishes including 9 foot ceilings, granite counters and stainless appliance packages and would sell for about $450,000-$500,000. These will be for sale upon completion.

On the South side of the property along Ogden avenue, there would be four story condominium buildings with a total of 284 units of various  sizes  built over 1-2 levels of underground parking covered with a green space common area.  In addition, there would be some 1^st floor for retail storefronts.

These units would be upscale units mirroring the downtown Chicago lakefront condominium communities including mixes of studios and 1, 2 and 3 bedroom condos with 9 foot ceilings, granite kitchens and stainless appliance packages nestled on groomed parkways and public space. 

In the past, it has been a lender’s requirement that a new condominium building is 30-35% pre-sold before funds are supplied for ground breaking, which can postpone or stop a development.  But in the case of a partial rental community, funds can be supplied immediately.  This contemporary plan generally enhances the developer’s immediate cash flow to be supplied for required lender interest payments (which the lender likes because it reduces their risk).  

Because of the current buyer’s fear and paralysis of the challenged real estate market and the mortgage lenders reaction to the mortgage crisis which has made it much harder for buyers to obtain a mortgage, the current trend in these planned condominium communities is to start these developments as upscale rental communities and convert them to condominiums several years later.

The initial rents proposed in LaGrange Place are proposed to be anywhere from $1200 to $1300 per month for a studio, $1395 to $1595 for a 1 bedroom, $1795-$1895 for a 2 bedroom-2 bath and $2295 to $2495 for a 3 bedroom-2 bath, far above median or average rental prices in mid-priced communities.

Here is the point.  In several years, when the condo conversion takes place, rental residents are given an option of right of first refusal (by law) to purchase their units or move.  They have had the opportunity to “try out” the condo and the community before a long term commitment.  I represented a large area conversion several years ago and based on my experience with 124 converted units, some will buy their units but certainly many will look for larger “move up” existing single family detached homes. 

Because they have lived in our community, developed friends and gotten to know it well, this will create new demand for existing homes.   I have never heard anyone say that regretted moving to LaGrange and they seldom leave unless they retire.  In my experience, even retirees have been so committed to our community and have built so many ties to friends that often they keep a condo in the area just to come back to for months out of a year.

As many of these upscale condo renters look for houses in our community, demand for homes will increase, supply of existing homes will remain stable while government services will be funded by additional real estate taxes and sales tax generated by the development itself(instead of increases to us). 

Once again, when supply (homes for sale) is constant and demand (buyers looking to buy) increases, we will see a strengthening of house prices while creating an even more vibrant community. 

Communities today are fighting to get developments like this because they see the long term picture.  We, on the other hand, have been handed an opportunity on a silver platter with no fight or concessions.  This will greatly enhance our community in so many ways. 

Many of us remember LaGrange of twenty years ago when the store fronts were half filled and home values were very sluggish.  LaGrange was certainly not considered a “hot” community. 

The vision and action of our Village government with support from business and residents, has certainly moved us in a very positive direction.  We now have the opportunity to see our community rise to the next level. 

We, as residents, businesspeople and LaGrange village government have the opportunity to support a development that will make LaGrange the premier suburban community in the Chicagoland area.