Urbana has been aggressive in downzoning and imposing unattractive and costly restrictions on developers. The restrictions on demolition is a great example where a developer can be 100% in compliance with zoning guidelines, meeting all the costly requirements as required, and not be able to build their project. City Staff openly admits to property owners that the neighborhood association conspires to decrease the value of properties. The intention is that a property will become dilapidated to the point where the acquisition price will be affordable for their preferred lower density option. Neighborhood groups openly admit the same and are leveraging the recent demolition restrictions and threatening property owners with the hassles that await them, hoping they'll donate their property to them or sell it to them at a very low price. This whole trend has raised some concerns....
Concern #1: Zoning rules no longer reliable
As an Urbana resident I stand firm that the residents should dictate the zoning rules that guide development. At the same time, I want Urbana to attract good property owners. I have yet to hear anyone argue that Urbana does not want good investors. As a good developer, would you want to invest time and money when you can no longer rely on zoning guidelines? It can cost tens of thousands of dollars simply to perform due diligence when you factor in architect fees, etc. If you purchase a old house, your project can be stalled for months or more and rejected on the basis of "historical" even if the argument is irrational. Whether or you agree with this statement, it is now a huge political challenge to build a building that zoning says conforms with the look and feel of the neighborhood.
Concern #2: Disrespect for good developers
I appreciate what the atkins group has done for Urbana. I was told recently that Brandon Bowersox held up distracting cards while the AG was presenting it's signage proposal to point out how annoying electronic signs are. He changed his cards every 10 seconds to prove his point. Every good developer is talking about that and how disrespectful that was at a city council meeting. While he earns points for being cute and creative, I just don't want good developers to be reluctant to invest in Urbana because they'll be harassed by city council members if they don't like a proposal. What is said and what is real may be two different things. There is a perception that Urbana has been taken over by fanatical political activists. I would much prefer that Urbana work towards building a more positive brand that does not emphasize this sentiment. We need good examples to look at and need to stop providing ammunition to the idea that urbana is fanatical and unreasonable.
Concern #3: Potential Lawsuits
There are rumblings that a huge lawsuit against the City of Urbana is imminent to recover damages as a result of downzoning. I have also heard that the conspiracy to decrease property value is also unlawful and is likely to face a legal challenge. Now I'm not a lawyer and this argument may have no merit. As a citizen I'm EXTREMELY worried, maybe even paranoid. I appreciate that when you take the value of the best use of a parcel of land pre downzoning and compare it to the best use of a parcel of land post downzoning, the damages can be hundreds of thousands of dollars per parcel. This might cost the taxpayers $10s of millions if the investors fight and win. If the legal bills are $400,000 for the nursing home, imagine what they would be in a case like this even if the city prevails. The political activists thus far have been impressive in their ability to stick it to investors, but what happens if the investors strike back?
Concern #4: Selling your investment property will be more difficult
Considering all the uncertainty and challenges an investor faces when dealing with the City of Urbana, smart buyers will be including more and more contingencies into any offer. Imagine receiving an offer where there is a contingency insulating the buyer from the demolition restrictions, zoning boards, and city council. These contingencies are now required for a conventional project that conforms with zoning guidelines, not just special projects. A contingency period could last 6 months or more on a conventional investment!
Urbana is going to be announcing budget deficits. There is the dark cloud of the likely lawsuit against the Urbana School District for failing to protect kids from sexual deviants. I'm disappointed that Urbana has decided to actively drive away potential investors and harass those who have invested in Urbana. I want good developers to invest in Urbana and I suspect that the greater majority of people agree with me.







Interesting. I was just at the True Value in southeast Urbana and noticed new apartment buildings and a new strip mall going in across from the McDonald's on Philo. And isn't the Meier opening soon (is it already open?)? And a new Menards? What about that new Carle Complex and all the development at Philo and Windsor?
I guess these folks didn't get your memo.
Anyway, now back to your regularly scheduled Urbana-bashing. Oh, and I believe Urbana is running a tiny budget surplus this year. Don't believe everything Mr. Foreman writes. He is notoriously bad at fact checking.
You forgot to mention that development at the old Obrien Auto Park and there's even a bar coming to Lincoln Square. There's also that development behind Walgreens on Springfield and Cunningham that you can't see.
Nothing would make me happier to see Bruce Waldon's vision and hard work realized. I'm looking forward so seeing businesses open in all those developments. We've been waiting for years. Anyone know of businesses opening in those strip malls? If these fill up with attractive businesses, it will surely make Urbana more attractive.
I have talked to several investors who are avoiding Urbana like it's the plague because of recent trends and uncertainty. I stand firmly behind my concerns.
I do agree that it's bad form for a city council member to act in such a way. But it's nothing new...it's a sad but true fact. Look at some of the irrational and insulting statements that Danielle Chynoweth, for example, has made over the years. It borders on insanity.
"I appreciate what the atkins group has done for Urbana. I was told recently that Brandon Bowersox held up distracting cards while the AG was presenting it's signage proposal to point out how annoying electronic signs are. He changed his cards every 10 seconds to prove his point."
Dennis Roberts did this, not Brandon Bowersox. Please be accurate when making accusations---especially if, as you said, "every good developer is talking about that and how disrespectful that was at a city council meeting." I hope the development community will run someone against Roberts in ward 5 if they're that unhappy about it.
"There are rumblings that a huge lawsuit against the City of Urbana is imminent to recover damages as a result of downzoning."
What downzoning has happened in the last few years? I'm not aware of any significant downzoning happening in Urbana since areas in West Urbana (near Lincoln) were downzoned. I don't know exactly when this was...maybe in the early 90's? Have any lots been downzowned lately? If so, where/what?
"As a good developer, would you want to invest time and money when you can no longer rely on zoning guidelines? It can cost tens of thousands of dollars simply to perform due diligence when you factor in architect fees, etc. If you purchase a old house, your project can be stalled for months or more and rejected on the basis of "historical" even if the argument is irrational. Whether or you agree with this statement, it is now a huge political challenge to build a building that zoning says conforms with the look and feel of the neighborhood."
You're mixing things up here. The zoning guidelines can be relied upon and rarely change. Any change proposed goes through rigorous review and extensive public input. I think what you're referring to is the propensity for the historic preservation commission to approve landmark status for buildings against a property owner's will, and for this to interfere with future development. I agree that this is a problem, although it affects very few properties, and the council doesn't necessarily approve what the commission recommends.
Basically people want to build large apartments on the east side of Lincoln, and continually complain that they're not permitted to.
You're correct about Brandon Bowersox. I should have prefaced the statement with a better conditioner than "I was told recently". Brandon apparently got full credit for that.
The downzoning happened in the 90's and the 2005 Comprehensive Plan imposed design guidelines for the West Urbana neighborhood conservation district. The 45 day requirement on demolition (historic or otherwise) happened relatively recently. Nonetheless, these are all significant when many will invest in a property for a lifetime. What's next? Clearly investing in Urbana requires another layer of risk on top of a significant amount of risk to begin with.
It's not just the zoning:
I also have discussed Urbana with investors who believe they cannot invest in lower income housing because Urbana does not allow you to reject applicants based on a felony conviction. After reading the human rights code, I think I've confirmed this. I'm going to add this as concern #5: You are required to rent to rapists, murderers, and child molesters. Maybe that's the PC thing to do, but that's definitely not attractive. Is this really true?
I wasn't aware there was any shortage of demand for houses in WUNA, anyway - people are constantly asking if there are any houses available there, and ones that go on the market generally get snapped up pretty quick from what I can tell walking by. As it is, it's a desirable neighborhood.
Property values are pretty high there too, at least well out of my price range. I doubt anyone is looking to put low income housing there - on the contrary, the main issue in that neighborhood that gets people running to talk at the city council is the few converted apartments/grandfathered in rooming houses, large apartment concerns are constantly looking at them with hungry eyes to knock them down and build large apartments buildings of the "balloon frame on sticks over a parking lot" variety.
I will ask though - where should people with felony convictions live, then? If all the apartments can reject them, should they go live under bridges, or what?
Or perhaps we need life imprisonment for all felonies?
B for Business didn't mention Howard Wakeland's unsuccessful attempt last week to get business zoning in a residential neighborhood on Lincoln. Understandably, the people who live in houses next to the proposed rezoning were against it. I won't accuse B of being HW, but he made all of HW's points. All the conspiracy stuff and dark hints of lawsuits that might or might not come is just nuts. Of course Urbana is under the control of leftists. That's the result of the freedom we so eagerly try to export to other countries. There's no evidence that capitalism isn't alive and well in Urbana.
"I will ask though - where should people with felony convictions live, then? If all the apartments can reject them, should they go live under bridges, or what?"
They can apply and be accepted. Under Urbana's rules as I interpret them, an apartment owner cannot even do a criminal background check. In Champaign this is not the case.
Upon further review, if I opened a business in Urbana I cannot discriminate based on a past felony conviction. Does this mean I can't do a criminal background check on potential employees should I decide to open a business in one of the empty strip malls? I'm less inclined to open a business in the city of urbana if this is true.
Now I'm curious.....if a teacher is employed in Urbana, is it even legal to conduct a background check and not hire them if they are a convicted child molester?
Concern #6: If I open a business in Urbana, I might not be able to make hiring decisions based on a criminal background check.
Concern #7: Are the places in Urbana where my family and friends live, learn, and work more exposed to convicted felons, and possibly even sexual predators? There's got to be some insulation that I'm not reading.
http://bulk.resource.org/courts.gov/states/Ill.App.Ct./1002181.htm
A bunch of legal mumbo jumbo that makes my brain hurt. It's all just very intriguing to me. The argument against downzoning has been brought before the courts previously. I suspect the conservationists are safe.
The lawyer who is recruiting investors made an interesting point to me: It violates your civil rights if you make an investment under a set of conditions and you have a vested interest in a property....when a politcal group moves to change the conditions and artificially (unfavorably) adjust the market and you incur damages. I thought this was a very loose argument, but it does make you think.
Since property rights are kinda a big deal in this country, I'm wondering if any lawyers out there can interpret what that opinion means and if the laywer's argument has any merit.
B,
Urbana City Code, Sec. 12-37
"It is the intent of the City of Urbana in adopting this article, to secure an end, in the city, to discrimination, including, but not limited to, discrimination by reason of race, color, creed, class, national origin, religion, sex, age, marital status, physical and mental disability, personal appearance, sexual preference, family responsibilities, matriculation, political affiliation, prior arrest or conviction record or source of income, or any other discrimination based upon categorizing or classifying a person rather than evaluating a person's unique qualifications relevant to an opportunity in housing, employment, credit or access to public accommodations."
I've read before that you can refuse potential tenants based on a drug conviction within three years. After three years, you can't refuse them. Which is comforting to property owners who are required to rent to meth users, thus lowering their property value and the value of all the properties around them. Is it any wonder that Urbana's crime rate is much higher than the national average? It's as if there's a sign outside the city that says: "Felons welcome".
Yes, but you apparently wish for Urbana to CHANGE those non-discrimination rules, so what then?
Similarly with employment - people need to work to eat. If someone will be barred from having any jobs, what should they do? Go on General Assistance? Oh but wait, we don't want to fund that either.
Not all felonies are equal, for mere starters.
Meanwhile I live in Urbana, and I do not spend my days quaking in fear that I might run into a convicted felon, no.
All that aside though, there are quite a few papered up empty storefronts under various apartment complexes in Champaign and on Green St, if they are more to your liking.
Perception can dive reality. I'm sure that other communities, such as the magical land of Champaign, still have a few restrictions to deal with now and then, however it seems clear that Urbana can be much stickier to work with. I likewise have a few friends in the building trades that complain about various issues, like very picky codes and inspectors (I'm not always sure I can feel sorry for someone that can't pass a "picky" safety inspection thou...I know some building codes are more stringent in Urbana than in the county, in particular). If there is money to be made people will hang in there--to a point. Sometimes they just get tired of being dicked with and looked down on because they have the audacity to make money. Just as some folks tend to condescend towards people that are more "socially" concerned, some of those socially concerned folks can be quite prejudiced against those money makers, at least until they suddenly can't fund all of their give-aways.
Yes, the schools do background checks. It is legal to do that in Urbana. Jon White had no felonies.
No, you don't have to hire anyone you don't want to, regardless of the reason, except as may apply to federal discrimination laws (a sign stating "Coloreds need not apply" won't work in Champaign, either). I can't quote you chapter and verse on this point, but I doubt you can cite an actual ordinance or instance of this being an issue. I'm willing to be wrong about this if the facts are out there.
It is very true that not all felonies are the same. A single instance of theft ten years ago could be a felony, as could several instances of child molestation two years ago.
BTW, sex offenders are on a publicly listed registry: http://www.isp.state.il.us/sor/sor.cfm?CFID=9433092&CFTOKEN=77511072&jsessionid=b030f71f9f95$BA$BC$A
Curious about your new neighbor? All you need is their first and last name and you can get every ticket, criminal charge filed, lawsuit they are a party to and all of their divorces here: http://www.cccircuitclerk.com/ Almost every other county in every other state has a similar site.
Want to see if they have been to prison? http://www.idoc.state.il.us/subsections/search/default.asp
Nothing would make me happier to see Bruce Waldon's vision and hard work realized.
Under Walden and Markland, Urbana fell hopelessly behind Champaign and Savoy. Development only came to Urbana after all the the more desirable locations in Champaign and Savoy had been utilized.
I appreciate what the atkins group has done for Urbana.
Appartenly the Atkins group does not share your paranoia about Urbana
If the legal bills are $400,000 for the nursing home, imagine what they would be in a case like this even if the city prevails
Please explain to us why you speculate the costs would be high.
Selling your investment property will be more difficult
If the use of the property will not change there is no more difficultly. Buying a property or propeties with the hope of later getting a zoning change (a la Mr. Wakeland) is speculation.
Urbana has been aggressive in downzoning and imposing unattractive and costly restrictions on developers. The restrictions on demolition is a great example where a developer can be 100% in compliance with zoning guidelines, meeting all the costly requirements as required, and not be able to build their project. City Staff openly admits to property owners that the neighborhood association conspires to decrease the value of properties. The intention is that a property will become dilapidated to the point where the acquisition price will be affordable for their preferred lower density option. Neighborhood groups openly admit the same and are leveraging the recent demolition restrictions and threatening property owners with the hassles that await them, hoping they'll donate their property to them or sell it to them at a very low price. This whole trend has raised some concerns....
Please list for us the costly restrictions you claim exist. Neighborhood residential groups often want limit commercial development in their neighborhoods. Develepers might want to do the opposite. That is whay we have a formal process for re-zoning requests. Neighborhood groups generally do not want to acquire properties from others. Neighborhood groups have a valid concern that developers like Wakeland will start purchasing residences with the hope of eventually tearing them dowm. Such Wakeland-esque developers in the interim will either minimally maintain or keep vacant such properties.
"If the use of the property will not change there is no more difficultly. Buying a property or propeties with the hope of later getting a zoning change (a la Mr. Wakeland) is speculation."
You are correct. On the other hand, buying a property under one set of rules, standards, and zoning guidelines and the having it changed unfavorably causes damages to the property owner. It's not just the neighborhood associations. Farmers may have an argument against county rules that discourage investors from buying large tracts of land (say over 50 acres). This can be costly if a developer would pay 2x per acre otherwise.
"It is very true that not all felonies are the same. A single instance of theft ten years ago could be a felony, as could several instances of child molestation two years ago."
I suspect a landlord or employer can review a background check and draw the same conclusion.
"Meanwhile I live in Urbana, and I do not spend my days quaking in fear that I might run into a convicted felon, no."
Neither do I, but I am much more reluctant to invest in Urbana.
"If the legal bills are $400,000 for the nursing home, imagine what they would be in a case like this even if the city prevails
Please explain to us why you speculate the costs would be high."
Maybe I can answer that after first understanding how the **** it cost us taxpayers $400k in legal fees for the nursing home.
So don't invest, then. If you say "I won't invest unless you do X" and people answer "we don't want to do X, don't let the door hit you on the way out" well, that's the answer.
I don't see a general wailing that oh, we're suffering so terribly because neighborhoods don't wish to open up to large developments. Rather, people are happy that Urbana east of Lincoln doesn't look like Campustown west of Lincoln to Neil, quite frankly. The only whining I hear is from people who want to make large apartments east of Lincoln (particularly between Lincoln and Busey to start with), and people who are constantly looking for lots they can pave and use for parking.
Meanwhile strip development is happening up by the highway, as it is in most modern American cities. This is true of the area by the Wal-Mart and the area by the new Meijer. There is also development by Five Points. In neighborhoods, houses have been restored, also smaller multi-family places have been restored, replaced, etc. It's not as if nothing ever changes.
So there's the endless "concern" for Urbana, that oh! It's missing out, falling behind, surely we're just concerned...
Meh. If the citizens want to change the rules, they can, so far they're not particularly interested in doing so.
"So don't invest, then. If you say "I won't invest unless you do X" and people answer "we don't want to do X, don't let the door hit you on the way out" well, that's the answer."
I'm not concerned about the current rules, I'm concerned that you are going to change the rules and tell property owners to suck it up. You are correct and I agree with you...the citizens should determine the rules and standards. My opinion is that when they change them and it costs a property owner, the city/county/state/feds should write a check if the property owner incurred damages.
For example:
502/504 Elm street is MOR and is an example where the zoning rules were not reliable. MOR clearly allows for multifamily apartments even post zoning changes. I estimate that 50 bedrooms could have been built on those two parcels together. That would put a building valuation post-development at approximately $2.5M. Let's say CPM sells the buildings for $500,000 IF an investor comes in. There's approximately $2,000,000 right there alone and I feel there is argument that the city should be accountable for it. I think it is a very bad precedent when property owners cannot realize the value of their property under the rules as conditions that existed when they purchased it. Wanting to preserve a look and feel of a neighborhood is respectable, but not being accountable for the damages you impose on someone else is not respectable. I'm very curious what offer the conservation group is going to make Goldfarb. Maybe you don't like apartments. Fine. When I look on the city website, you study the zoning to determine what you can/can't build. It shouldn't be that complicated and unpredictable. Over the past 20-30 years, there must be many examples. Let's keep in mind a property is usually depreciated over a life of 20-30 years.
What's next?
Unikely Hypothetical:
If I open a steakhouse and 20 years from now the city council bans meat products from being sold in Urbana. Does the steakhouse owner simply have to close his doors and eat it. Or should the city be accountable for his losses? It sounds kinda crazy, but I think it's just a crazy (if not crazier) to start messing with property rights.
While the talking points are focused on the bad apartment buildings in Urbana, the same ideology is being imposed by the liberals to screw over farmers by restricted how much land they can sell at one time and quick taking their land. Just taking someone's property and determining what they can do with it for the benefit of the people, without compensating them appropriately, is just a little too Dr. Zhivago for me.
And yet, people on that part of Elm don't want a 50 bedrooms apartment building put there. They do not care that such a building would be valued at $5.2M. The argument that "but with apartments there are more taxes to the city" has been brought up time and time again (occasionally in hour long speeches before the Council) and people aren't buying it. They don't want that trade.
If it's two parcels, you can't just combine them and put one building up. That's never been okay, you have to get special permission for it (just as you have to do to split one parcel into two). If that was the issue, that's nothing new that's changed. I've been at council meetings where permission was granted to split a lot.
Meanwhile, just because someone bought two parcels THINKING they'd put up a building and then found out before they built it that it's not okay, you aren't owed anything. That's different from your steakhouse example, although you might note that no one is paying off any bar owners for lack of business from the smoking bans.
Question - if the things are MOR, why not put up two buildings? That's what should have been the plan to start with, even for Mr. Apartments, or the buyer should have checked out the process for combining parcels before coming up with the grand plan.
But the bottom line is that the people in the area don't buy the "but the city could get more taxes if you let us build student apartments like the ones over in Champaign." It's come up, and it's been rejected. Repeatedly.
So... not much to say, really.
Meanwhile, just because someone bought two parcels THINKING they'd put up a building and then found out before they built it that it's not okay, you aren't owed anything.
I believe that the zoning at the time of purchase would have allowed the apartment buildings to be built, IIRC.
And yet, people on that part of Elm don't want a 50 bedrooms apartment building put there.
So why did they not pool their money and purchase the properties in the first place, before the zoning was changed? I believe that preservation ordinances can serve a purpose when well crafted, but all too often we see them used to restrict a property owner's rights.
Would the neighbors on that part of Elm street actually rather look out the window and see a dilapidated old house, or a new apartment building built within guidelines that will maintain the integrity of the neighborhood?
It seems to me that it's not an issue of zoning, but rather two properties zoned MOR that someone wanted to combine into one parcel, thinking "well, if I own both, it's all good" to put a big building on.
That's NEVER been "all good," whether you own both properties or not. You have to go to the council to combine the parcels, and it's by NO means a guaranteed deal, and why anyone would expect such a request to be granted in that neighborhood in particular escapes me.
People on Elm would rather see rehabilitated houses, which is why they are buying up and restoring houses on Elm. If it's an MOR building, they would rather see smaller apartments, ideally ones that blend in with the surrounding houses (it can, and has, been done in that area).
But a 50 bedroom building? Not likely.
So I guess my question is, were these parcels bought as MOR and then changed to something less? Or are they MOR, bought as MOR, still MOR, but the problem is that the city won't allow the combination? Because if it's the latter, that's never been okay and I don't see what the issue is.
When it comes to "guidelines that will fit the neighborhood" usually there is much whining because all of the proposed guidelines essentially rule out the "large student apartment building made of a balloon frame vinyl sided building on stilts over a parking lot" which is the usual thing people want to build because it has a high profit margin. The hue and cry over having to even camouflage the parking for some (smaller!) buildings has been huge.
Usually then the proposer leaves in a huff with "well then, I won't build in your city because it won't be profitable and you'll lose all my potential taxes!!" to which the response from council is "don't let the door hit ya on the way out."
Though I will say with many in that area, if it's a choice of one falling in house vs. a big 50 bedroom apartment with the associated parking issues, they'd pick the falling in house, because it's still quiet and residential.
But the ideal plan is rehabilitate the house, tear it out and build a new house (house!) or if it's MOR, to build a small MOR building within the single lot.
Though I will say with many in that area, if it's a choice of one falling in house vs. a big 50 bedroom apartment with the associated parking issues, they'd pick the falling in house, because it's still quiet and residential.
A tough spot to be in for sure, too bad there is no mediation to attempt compromise here as neither option is very attractive.
It seems to me that it's not an issue of zoning, but rather two properties zoned MOR that someone wanted to combine into one parcel, thinking "well, if I own both, it's all good" to put a big building on.
I apologize for confusing this Elm St example with the Main St example we were discussing recently.
Yeah, the Main St. example is in the News Gazette today, but upthread I was discussing Elm St. too.
FWIW much of the ire in these "falling down houses" situations is aimed at people who buy houses and then do little or no maintenance on the houses, with the aim (so it appears to the neighbors) of later claiming the house is in too poor of condition to save, and therefore must be torn down. At that point, if the house is in an area that has had only houses since the town's founding, but at some point was zoned MOR, usually the gamble is to let the house fall in and then replace it with... apartments.
So the "but the house is in disrepair!!!" arguments come off sounding like the kid who complains of being an orphan after killing his parents. That's the impression, anyway.
There was a rezoning done in the early 90's (IIRC) as part of a grand plan for the parts of Urbana from Lincoln to Race, in order to forestall this change, largely because people saw what happened to the parts of Champaign near the U of I, and did not want that happening in the area. This was existing homeowners in the area, who moved in next to houses, still lived next to houses years or decades later, and now wanted to ensure that they remained living next to houses. There were oodles of meetings about it (many of which I attended) and hordes of people in the public comment agreeing with the plan, which did not say "no apartments evar" but rather attempted to direct them to the collector streets such as Green St. where there already were a few.
It's entirely possible that someone who had speculated in such a fashion got caught up in the rezone, at which point they presumably could have sold the house for what they paid, I guess (though surely that's easier if you've not neglected the house in the meantime). But the thing is, such rezones aren't limited to Urbana by any means, and when rezones happen, if you've not ALREADY taken advantage of the zoning and built your apartment/business/parking lot/whatever it is, you're SOL. Only buildings already built get grandfathered in. I don't know of anywhere that actually compensates people for money they think they should have been able to earn in the future. It's a risk of speculation.
...which I suppose is the OP's point, that Urbana is risky, but again, it's not unique to Urbana, and in either case, it's been shown time and again in council meetings that the response to the "but the city could earn so much more in taxes if only they let me build my apartments" doesn't sway the council or the hordes that come out against it every time. It's a "thanks, but no thanks." At which point, not much for it. Urbana is apparently happy as it is. C'est la vie.
"It seems to me that it's not an issue of zoning, but rather two properties zoned MOR that someone wanted to combine into one parcel, thinking "well, if I own both, it's all good" to put a big building on."
50 bedrooms is not a function of combining the lots. Those are big lots and 50 bedrooms would likely be doable with two buildings. I think this is very feasible considering those are big lots. It is not an issue of building a big apartment building. MOR design statements and zoning clearly allow for a multifamily option that conforms with the look and feel of the neighborhood. It doesn't say "near green street" or "the neighbors don't want this". The zoning looks as if oodles of people provided input and is recent, in theory a good reliable source to base your investment assumptions.
http://www.city.urbana.il.us/urbana/community_development/planning/zoning/mor_district.pdf - MOR District Overview
http://www.city.urbana.il.us/urbana/community_development/planning/historic_preservation/districts.html - Historic Districts Link
http://www.city.urbana.il.us/urbana/community_development/planning/zoning/mor_district/MOR_Guide.pdf - MOR Design Guidelines (look at massing and scale)
Does one have to be a political expert with connections to make a conventional investment in Urbana? Or can a person look at the rules and guidelines?
"So the "but the house is in disrepair!!!" arguments come off sounding like the kid who complains of being an orphan after killing his parents. That's the impression, anyway."
The house is in repair argument is a last ditch-effort that has been used only after the zoning rules and design standards weren't good enough.
"at which point they presumably could have sold the house for what they paid". Nice theory. : ) Real estate investing sounds so easy.
"I don't know of anywhere that actually compensates people for money they think they should have been able to earn in the future. It's a risk of speculation."
Aren't business sued all the time for damages, including lost future benefits?
FWIW much of the ire in these "falling down houses" situations is aimed at people who buy houses and then do little or no maintenance on the houses, with the aim (so it appears to the neighbors) of later claiming the house is in too poor of condition to save, and therefore must be torn down. At that point, if the house is in an area that has had only houses since the town's founding, but at some point was zoned MOR, usually the gamble is to let the house fall in and then replace it with... apartments.
So the "but the house is in disrepair!!!" arguments come off sounding like the kid who complains of being an orphan after killing his parents. That's the impression, anyway.
I got that impression too, and noticed that the article hadn't mentioned whether Wakeland had made any effort to maintain the his building.
Either way, no one is shedding tears over the city not getting whatever potential taxes that would be brought in by such a large building there. They're just not. That argument has been made before council, and rejected.
And I'm still not aware of anyone being compensated for the loss of potential money they think they could have made in the future, because the zoning changed (with plenty of public input) before they made their move. If you had a lot zoned MOR but with houses on it, and didn't make your move in time, that's your problem to deal with. I honestly don't understand how it could be but otherwise.
So if the argument is that that's a risk, yeah, I'll agree with you that that's a risk. But it's not anything restricted to Urbana, these things happen all over. If this means you won't pursue such plans in Urbana in future, fine. Don't. Again, that's what the council has continually said, they don't care for the tradeoff.
But most interesting would be a map of the zoning itself, and the history of the exact parcels we're talking about. What was on them, what were they zoned, what are they zoned now? I know there were areas that were zoned MOR but had had only houses on them since the city's founding, and these were re-zoned to allow only single-family, to ensure that they would not change. This was back in the early 90's, as I recall, not something happening on a daily basis. As I already admitted in previous posts, I imagine some speculative buyers who wished to tear down the houses and put up apartments were bitten by that - but rezoning happens all over the country, all the time, and yeah, there are losers. These sorts of things are NEVER unanimously agreed to. I suppose the lesson is the buyers should have moved faster with the plans.
Me, I've bought one house and live in it. I've had to go before council for variances to build onto my house because it's on a tiny non-conforming lot, so I get to hear various petitions for other things (often petitions to combine or divide lots). Some win, some don't.
Its Official Now--Urbana is no longer business unfriendly! Let the good times roll!
(no historic status of Lincoln hotel)
Yeah, there's a N-G story on the Lincoln hotel at http://www.news-gazette.com/news/local/2008/06/03/lincoln_hotel_avoids_historic_status
I was surprised as hell by the decision on the Lincoln Hotel. I was even more taken back by the economic argument by the mayor for the decision. This is very promising.
If you think it is a general risk to purchase a property where political activists change the rules after you made the investment, it is a legitimate argument. I think that someone needs to make the argument in court to prevent this from happening so it's illegal to screw someone so conveniently. Investors should have a certain level of rights, even if they are in the minority.
How unfair would it be if we all voted to not pay for pensions going forward? How many of us are going to have pensions in 20 years? I suspect non pension holders will be the large majority. That would suck because those people were making assumptions that their retirement benefits would be there. It's probably illegal. Even though the democracy argument would be valid in such a scenario, it would be wrong. But someone could make the argument that any reasonable person should have assumed it was unlikely the govt could afford pensions in the long-term....therefore it was a risk to assume that income would be there....sounds really convenient with a bit of goofy thrown in, doesn't it? If the people voted to downzone pensions, would democracy justify that damages from the move just disappear?
At any rate, I am very pleased with the local republican party for making property rights a priority issue. Properties rights are evaporating in Champaign County and it needs to stop. We need to draw the line where the property line starts.