I'm curious to hear people's take on the current proposal versus the one from 2014, and whether waiting for a project that did not require tax abatement was the right move.
To summarize the previous 8 pages of the thread for those who weren't here/don't remember, in 2014 there was a proposal for a 12-14 story apartment building with 200+ units. The demolition of the Optimist International building and replacement by the apartment building was supported by Park Central and the alderman at the time, Alderman Roddy, but they declined to support a tax abatement request, and the city was very unlikely to approve tax abatement without the alderman's support. There were several reasons that contributed to the decision re: tax abatement:
1) The existing building was considered to be of architectural significance (one of 42 buildings selected for the "intensive level property" survey during the recent
Mid-Century Modern Architecture survey
2) The existing building was in good shape, recently occupied, and had re-use potential, though was not currently contributing to the tax base from a property tax perspective as it was owned by a non-profit
3) The new proposal was not adding a new amenity to the city/neighborhood (e.g., the way the Orion brought Whole Foods into the city)
4) There was concern that the use of ubiquitous incentive use was distorting the market: when everything is incentivized, nothing is incentivized
5) The decision was also happening in the context of increasing complaints about the use of incentives and abatement in the city at large and the CWE in particular, given all the other development
The plan eventually fell through, possibly due to an inability to make the numbers work without tax abatement. A subsequent office reuse plan by Koman also fell through as they were unable to secure a tenant.
7 years later we have the current plan, 7 stories, ~150 units, no tax abatement. I am wondering if people today (with the benefit of 20/20 hindsight) think it was worthwhile to wait 7 years for a proposal that does not require tax abatement, or if we would have been better off subsidizing a larger development several years ago. Hard to know how that apartment building would have impacted subsequent developments like The Euclid, 100 Above the Park, the new West Pine building, new units on Sarah, Foundy apartment proposal, FPSE apartments going up, etc--delayed any of them due to saturation of the area with units? Sped them up due to increasing demand? Lowered or raised average rents?
I don't think we ever learned exactly what degree of tax abatement the old proposal would have required, so I am not sure how to do an estimate of what the ultimate 20-year revenue to the city would have been, factoring in the tax abatement, number of units, length of time the property went undeveloped, etc., but if anyone has the skills or inclination to do so, I'd like to see the estimates.
At the time I agreed with the decision to not support tax abatement, mostly because I thought the building had architectural merit and re-use potential, and I did not think it made sense to effectively subsidize demolition of a reusable building. As the subsequent years have shown us, there were plenty of other places to put apartments under the right circumstances. The proposed replacement was better from a land-use and density perspective, but I think tax abatement should be minimized for any proposal that is not a slam dunk improvement over exiting conditions, and there were enough mitigating factors that it seemed reasonable to me to withhold abatement but allow development to occur if the developers could make the numbers work on their own.
For my part, I think the current proposal is also an improvement in land-use and the additional density will be nice, but I think the design is certainly not up to the standard of the current Optimist International building, and is also lower quality than the 2014 replacement. Maybe the renderings are underselling it and it will look better in person, but it appears to be the same 5-over-2 construction that pops up most places. I think it looks fine, a little cookie cutter despite some higher end finished, but nothing remarkable. To me that has been consistent with LuxLiving's other new buildings, though I am curious to see how SOHO in Soulard looks when completed, and how LuxLiving's Hudson compares with Pearl's Expo at Forest Park. The Optimist International building is one of my favorite little buildings in the city, and I will be sad to see it go, but I think the current proposal is an improvement since it will add density. If I had a time machine, though, I think I would push for abatement for the 2014 proposal due to the increased number of units/density, whose benefits will compound over decades to come, while the initial tax abatement "outlay" would probably have disappeared after 10 years.