NBC's website had an interesting article yesterday looking at the effect of the Atlanta and Salt Lake City Olympics on their local real estate markets. From the sounds of it, Atlanta has had more success than Salt Lake post-Olympics. However, Chicago's real estate market is much much different then either of those cities, so it's tough to get a solid comparison.
However, it's an interesting subject, because the thought across our city (and specifically in the South Loop) is that it would be a big boost for real estate throughout Chicago. We've also heard the theory that it would be negative because it would drive development and over saturate the market (again!). Although there is merit to both arguments, to us the benefit of the Olympics is the signal it will send about the cities intentions for the South Side of Chicago.
Although enhancements have already been happening in and around the Sloop, more emphasis would be put on capital and infrastructure improvements. Businesses, restaurants and shops would see this as their chance to jump on the bandwagon and take advantage of an emerging neighborhood.
Sloopers please don't be offended by this. We love our neighborhood as it is right now and we know you do too, but it ain't perfect. Improvements will happen eventually, but we're confident that the Olympics would speed up the process and in our opinion that's a good thing.
19 comments:
I completely agree.
Spoken like an idealist. Sure in fairyland it will work that way. But in Chicago, when we start executing the plan with TIF $$ and call it a Central Area Action plan that, gasp, just happens to conincide with the Olympics, and the same poor performing developers getting their way. Oh goodie, I can't wait.
The Mayor should start fresh and kick all these guys to the curb and bring in accomplished international and national developers.
I think Madrid's infrastructure is already top-notch. However, their housing sector will likely see a bump once they are awarded the games this Friday.
I don't like the idea of the Olympics being the proverbial "shot in the arm" for the development of the South Side.
As a former resident of Hyde Park and Kenwood (and current resident of the sloop), I can say the area south of the south loop has developed pretty drastically over the past few years.
I can only imagine that this organic, positive development would be better than one which seems artificial and is forced on the neighborhoods by the 2016 Olympics...
Like others, I think in general, there will be plenty of the same scumbag developers lined up for TIF and other money, you know, the same ones that are in forclosure and bankruptcy, but can somehow still magically have money or funding for another project.
But this could be like the 1996 Democratic Convention clean-up and iron fencing impact...forcing neighborhood clean-up.
That being said, the increase in value in South Loop property may not be so much through price increase, but more in stabilization in a few areas:
> Comsuming existing housing stock. There is a boat load to be bought still. We are nowhere near over the beginning recovery; many projects destined for auction.
> Adding the infrastructure improvements that were needed and not being spent anyway. For example the 18th Street Green Line Station, improved focus on surrounding parks, small and large.
> Filling out of the area North of I-55. Sure their may be some improvements for the area around the proposed village or by the proposed stadium, but no amount of lipstick is going to sell people on big migration of people to that gang infested rat trap. Will it improve life in that area down south? Yes, but don't expect Ward & Cleaver moving anytime soon.
Thus, my crystal ball of areas most positively impacted:
> Area surrounding McCormick Place including Motor Row to the west, and The Prairie District and fillout of Central station
> The South Michigan and Wabash from Cermak to 16th. The impact of the transportation will be significant.
> Possibly some of Hyde Park or UofC property.
> Bridgport - Why Bridgport? for many obvious reasons, and it is not the hideous new development architecture like in Chinatown.
Beyond that, if you do not already owning the property, I don't see a whole lot of impact.
I understand that there will be both positive and negative aspects associated with a Chicago based Olympics. However, I made my decision to support Chicago 2016 when considering potential improvements, which will be financed primarily by the private sector. Without the Olympics, improvements such as the revitalization of Congress Pkwy, essential improvements to the CTA, development of dilapidated areas within the south side, increase in the value of condos within the South Loop, etc. will be nothing more than a pipe dream. I'm not turning a blind eye to likely congestion, possible corruption in spending, possible tax increases, and the potential for rushed development. However, I do feel that the positives far outweigh the negatives.
The Olympics would be a good thing for Chicago. A once in a lifetime thing! With unemployment up and land values down, this is the type of event that could get Chicago back on track. The improvements made to our city as a result of these Olympics would not just be for us, but for generations to come!
Who really cares about improvement to Congress Parkway? Functionally it will not change. Spend the money on more important stuff
I keep hearing people say spend the money on education, spend the money on housing. Do you people not realize that a majority of the funding is coming from the private sector? Without the Olympics there will be no money. It's not an issue of spending the money on the Olympics or education, the Olympics or affordable housing. If we don't get the Olympics, big corporations and donors with deep pockets will not be making these contributions. Unlike Rio, Madrid, and Tokyo, our Olympics will be funded by 4 Billion dollars of private money. When I hear people say spend the money on this or that it just reminds me how ignorant or simply uninformed a lot of Chicago's residents are.
And furthermore, considering I live 3 blocks from Cogress Pkwy, I'd like to see some major improvements. Safer crosswalks, fixing the streets, simple modernization, etc.
Love this quote: " Do you people not realize that a majority of the funding is coming from the private sector?"
Like you, I am for the Olympics, but let's not be silly here. I expect more research on your part. The city has been slowing spending on a few TIF areas and building up a host of TIF money that should be spend necessary infrastructure improvements now (CTA, park, streets, schools). Buy building up the TIF reserve they will now be able to make that TIF money portable for any project they want, OUTSIDE the TIF area where it was accumulated and is needed. This may be private money to you, but it is public property tax money.
this could be like the 1996 Democratic Convention clean-up and iron fencing impact...forcing neighborhood clean-up.
That is exactly what I see for the neighborhood north of I-55. Dollars to donuts it's going to be more of an convention type of place, for sure.
Landing the Olympics would be bad for the Sloop housing market; mainly because the massive Olympic Village will add an enormous amount of units to an already over-saturated market.
However, all these arguments will be moot come Friday afternoon when either Rio or Madrid wins the vote.
How funny is it that Daley has only been overseas for three days and he is already at the center of an IOC ethics investigation! Need any more proof that the Chicago bid is doomed?
The revamp of Congress is already funded and awaiting the start date. That has zero to do with the Olympics.
You got that right, Rio or Madrid wins the vote for the best beaches come friday. However, all these arguments will be moot come Friday afternoon when CHICAGO wins the vote for the 2016 Olympics!
Say we do get the Olympics? What happens to the property values afterwards when the whole show pulls up stakes?
Another issue I've yet to hear mentioned in relation to the real cost of the Olympics to everyone: increased commute/traffic congestion and a general loss in productivity.
To the person who mentioned "Congress Pkwy is fully funded and awaiting a start date", The Printer's Row Park was fully funded and awaiting a start date....for 3 years!!!! And if it were not for some of Obama's stimulus $ we would still be waiting.
Obama stimulus money...that is exactly what is funding the Congress Pkwy revamp.
According to my condo board, the Congress Pkwy rehab will be funded in part by Printer's Row TIF funds.
Not sure there is a Printers Row Tif Fund. It may be the Near South TIF Fund though.
There is no "Printers Row TIF".
Congress falls within the "Central Loop" district.
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