New Construction Along The 606 Could Come With Hefty Price Tag
A new measure introduced to the Chicago City Council by Aldermen Proco Joe Moreno (1st) and Roberto Maldonado (26th) could impose high fees for demolition alongside the The 606, which has seen a nearly 50 percent hike in home prices since ground broke on the 2.7-mile trail and park.
The Pilot Act for the Preservation of Affordable Housing in the 606 Residential Area is intended to provide a “financial incentive for people to restore their homes rather than have them torn down.” Moreno said that the ordinance would dramatically increase development fees for single-family homes along the trail so that longtime residents of Wicker Park, Bucktown, Humboldt Park, and Logan Square can continue to afford their homes.
In particular, housing prices west of Western Avenue have seen a rise in prices. According to a study by the Institute for Housing Studies at DePaul University, the western portion of the trail saw a 48.2 percent increase in home prices, while prices increased 13.8 percent on the east end.
There are conditions for those wanting to still build alongside the trail without having to shell out money for the fees. Developers can designate at least 50 percent of the newly built units as affordable. Those willing to foot the bill will see their fees deposited into a “606 Residential Area Affordable Housing Trust Fund,” which is intended to be invested into affordable housing.
Moreno said the trust fund will be used for homeowners who need extra money to fix up an older home that needs work.
Fees start at $100,000 for every 1,750 square feet of additional space that a developers is looking to expand on current buildings. For each single-family home demolished, developers will pay $300,000. Developers will pay $450,000 for a two-flat, $550,000 for a three-flat, and $650,000 for a four-flat that is demolished.
Alderman Maldonado received some backlash after having received $300,000 in profit two years ago after flipping four properties along The 606. The proposed measure would stop others from going through a similar process, causing some locals like the former City Council Inspector General Faisal Khan to question Maldonado’s motives.
"He is setting himself up for questions about whether he has an ulterior motive," Khan told DNA Info. "It would be prudent for him to recuse himself from this vote."
The proposal is still in its early stages and officials have acknowledged that there will likely be some negotiations in the future.