Background (This information prepared in 2013 by the 340 On The Park Finance Committee)
Ever wonder about the extra property tax we all pay for the “Lakeshore East Special Assessment”? We looked into it, and would like to pass along what we learned.
In November 2002 the Chicago City Council passed an ordinance authorizing the city to issue a series of three municipal bonds totaling $58.9 million to build out the infrastructure of what has become known as Lakeshore East. The bond series was to be paid back by residents of the neighborhood over thirty years.
Now after 11 years, one of those bonds has matured; the second has 9 years to go, and the third has 19 years to maturity. The blended interest rate on the two outstanding bonds is about 6.7%. All three bonds have a pre-specified pay-down schedules such that the individual tax bills paid by neighborhood owners do not change much over time, despite the sequential payoff of the bonds. Please see the attached Appendix for more details on the bonds.
340 On The Park was allocated responsibility to repay 8% of the total bond issue. Each owner in our building shoulders a pre-specified portion of this obligation in proportion with his or her unit’s fraction of ownership of our common areas. The fractional ownership is recorded in our association’s Declaration, and will not change over time.
For more information on this topic see these links: