Settler's Green Goes Back to the Drawing Board

There are many different reasons why the Lake Forest community either strongly supports or strongly opposes the proposed Settler's Green housing development, which would be located on the city's west side.

Supporters of the development see it as an opportunity to bring more affordable housing options to the city, a goal adopted by city leaders nearly five years ago while receiving a $6 million tax credit from the state.

Those in opposition believe the proposed site at the already congested Everett and Telegraph Roads is not the appropriate place for a multi-family development.

Back to Square One

Since the Lake Forest City Council voted down the project last month, the housing trust committee, which was commissioned to seek out more affordable housing opportunities within the community, must now revisit these reasons, and try to come to a consensus that would be satisfactory to the majority of the city council, and to Lake Forest residents.

"We have to start with what we have, and see how we can modify it," explained Third Ward Alderman Tom Morsch.

When Morsch presented the most recent proposal for Settler's Green to the city council last month, it consisted of 16 two-and three-bedroom duplex units to be located at on the northwest corner of Everett and Telegraph Roads.

If the project does come to fruition, the land, which is owned by the city, will be donated to a not-for profit corporation, and in exchange, the city would earn $6 million in affordable tax credits from the state of Illinois.

"We create $6 million of equity for the project," explained Morsch, emphasizing that property will not be donated to the state.

According to Morsch, a private entity, most likely a bank, would purchase the tax credits, and the city would use the funding from this purchase as a down payment on the project. The revenue from rent paid by residents on the property would be used to pay down the remainder of the debt.

"That's how they were going to maintain low rents over the long term," said Morsch.

Outlining the Concerns

The current proposal would charge rent of $835 per month for a two-bedroom unit and $956 for a three-bedroom unit. The city council instructed the housing trust to revisit the proposal, and to address several issues that are a concern to several city leaders.

These issues are: incorporating more senior friendly units, and including either more market rate, or moderate units in with the affordable units. Morsch said he is uncertain that these specified changes can be made to the project without the risk of losing the tax credits from the state.

One of the requirements to receive the tax credit is residents of the units make an annual family income less 60 percent of the Chicago metropolitan area's median income, which is $75,100 per year for 2010-2011 according to the Department of Housing and Urban Development .

"We have to figure out how everything can be accomplished, and still leverage financing," he explained.

Mary Ellen Tamasy, of the Lake County Residential Development Corp., which has worked very closely with Lake Forest's housing trust on Settler's Green, expressed her disappointment with the city council's recent denial of the current proposal. However, she said she will continue working to see if a solution that satisfies all parties can be reached.

"What can we put on that site that will make everyone happy?" she said.

According to Tamasy, a survey done with Lake Forest Hospital revealed 100-150 of its employees make an annual family income of $45,000 or less.

The same survey indicated 57 employees of Lake Forest College made a similar income.

Tamasy said both of these employers would like to see more of their employees living in Lake Forest, and both have programs designed to assist them with their monthly rents.

"Nobody could find a home they could afford," she said. "That's pretty substandard when major employers have employees who want to live here, but there incomes are under $45,000."

More Traffic, People Congestion

Lake Forest resident Edward Sacks is president of Country Square Townhomes on Waukegan Road, south of Everett Road, just around the corner from the proposed Settler's Green site.

He is against the Settler's Green project, not because it is an affordable housing development, but because of the effect the added population and traffic could have on the surrounding community.

"Regardless of what they say to the opposite, we don't know what the traffic effects and water run-off will be," he explained. "We are very uncomfortable with traffic flow as it is."

The housing trust has stated that traffic studies have shown that additional residents in the area will have minimal impact on traffic conditions.

Sacks, whose sister lives in an affordable housing unit in a neighboring city, said that he and the majority of residents in his neighborhood would like to see the land developed into a park, or wooded area to be used by the community, rather than further developing the west side of town.

"The city council has done a very spotty job of bringing projects to the west side of town," he said. "They know they need to do a significantly better job of capping off development on the west side."

Striving for Balance

Regardless, the housing trust has made a commitment to bring affordable housing to Lake Forest. The would-be Settler's Green site and its $6 million in tax credits is the ideal setting to bring their plans to a reality.

"For more than 100 years, Lake Forest has embraced the topic of affordable housing," said Morsch, stating that the city would be making a mistake in becoming a community that is not inclusive.

Tamasy agreed, pointing to recent census results which show approximately 1,000 people who already reside in Lake Forest earn below the median income.

"To have a healthy balance of community, you have to have a variety of people," she said.

The housing trust plans to develop a new plan for Settler's Green to present to the Lake Forest City Council before the end of the year.