The Illinois Housing Development Authority board approved by a 5-1 vote Friday the sale of $50 million in tax-exempt bonds to help finance the construction of a $58.3 million, 44-story luxury high-rise apartment building in the Lincoln Park neighborhood.
The board voted to provide the long-term, low-interest financing despite the objections by some community groups, Ald. Martin Oberman (43d) and State Rep. Dawn Clark Netsch (D., Chicago), who said the 575-unit building to be built on vacant land at Wells and Eugenie Streets would ”overwhelm” the neighborhood.
”There is an undue density in Lincoln Park,” Oberman said.
Oberman also told the board that the proposed building had acquired ”a rotten smell” because the developer, Thomas Rosenberg, a top Democratic Party fundraiser, allegedly arranged a meeting with Gov. James Thompson earlier this summer to seek the governor`s help in getting financing.
”Charges have been made about a backroom deal,” he said. ”You would be abusing the tax-exempt system by subsidizing housing for the rich.”
Thompson and Rosenberg repeatedly have denied that political influence was sought or used in determining whether the project should be funded.
In addition, Kenneth Marshall, a housing development authority board member, said that 20 percent of the apartments in the planned building would be set aside for low- to moderate-income tenants whose rents would be subsidized by the federal government.
He also said $500,000 in service fees the authority will receive from the developer will be used to rehabilitate a 120-unit building on the city`s West Side for low- to moderate-income families.
A community group voted 161-10 Thursday to oppose state help in funding the Lincoln Park building.
”The density of the building is too high,” said Gary Lawson, an Old Town Triangle Association member. ”And the tax-free bonds are going to provide subsidized housing for yuppies,” he said, referring to young professionals.
