March 26, 2024

LAKESHORE EAST DEVELOPMENT: UNDERSTANDING THE SPECIAL SERVICE AREA

March 26, 2024

LAKESHORE EAST DEVELOPMENT: UNDERSTANDING THE SPECIAL SERVICE AREA

UNDERSTANDING THE LAKESHORE EAST 
SPECIAL SERVICE AREA

Are you a home owner of Lakeshore East or considering purchasing there? The Lakeshore East development is a unique area in the New Eastside neighborhood of Chicago, surrounded by modern buildings and lush green spaces. However, there is a piece of information that many residents may not fully understand - the Lakeshore East Special Service Area.

When Magellan Development initiated the Lakeshore East project in 2002, a 30-year bond was issued by the Bank of New York to fund the initial infrastructure, such as sidewalks, streetlights, and the first park. This bond was a crucial step in creating the vibrant community that exists today. Each unit in the new buildings, with the exception of Aqua and Parcel 0, was assigned a share of the assessment based on their ownership percentage. (Aqua and Parcel O were not a part of the original master plan)

Payments are due biannually on March 1st and September 1st every year, payable to the City of Chicago. Notably, the bond only covered the initial infrastructure costs and does not fund ongoing maintenance of the amenities in the area. It’s essential for residents to understand this distinction, as the Master Association was set up to fund the ongoing maintenance of the public space in Lakeshore East. 

Roxanne has been overseeing the bond and payments since its inception and can be contacted at Roxanne.zuniga@bnymellon.com. The bond was refinanced two years ago, leading to reduced payments for residents. If desired, residents can opt to pay their portion in full. The bond is set to be fully paid off in 2032.

It’s crucial to differentiate between the New Eastside neighborhood and the Lakeshore East development. Existing buildings constructed before the Lakeshore East project are not part of the Special Service Area. The legal disclosure provided to original buyers outlines their responsibilities regarding the Special Assessment District, ensuring transparency in the process.

If you're selling your property, you'll be responsible for the assessment up until the point of sale. The subsequent owner will then take on the assessments for the years they own the property. It's vital to stay up to date with payments to avoid additional fees and potential property liens.

While the Lakeshore East Special Service Area doesn't guarantee ongoing maintenance of infrastructure and amenities, fulfilling your obligations within the Special Assessment District supports the continued success and vibrancy of Lakeshore East. By understanding and meeting these responsibilities, residents play a key role in maintaining the community they call home.

As Lakeshore East continues to thrive and evolve, it's essential for residents to stay informed and engaged in the processes that shape their neighborhood. Supporting the ongoing success of Lakeshore East through active participation and understanding of the Special Service Area is essential for the continued vibrancy of this unique community.

The New East Side Association of Residents website has more information and discussion. 

SPECIAL ASSESSMENT DISCLOSURE

LAKESHORE EAST DEVELOPMENT

You are purchasing property that is within a Special Assessment District established pursuant to a court proceeding adopted by the City of Chicago.

The Assessment Confirmation authorized the levy, extension, and collection of a Special Assessment upon the Property, in connection with certain “Public Improvements” that will confer a special benefit on the Property (including, without limitation, parks, streets, storm and sanitary sewer, and a potable water system). In connection therewith, the City of Chicago pursuant to a certain Bond Ordinance, authorized the issuance of municipal bonds to pay for the Public Improvements, including the financing and other costs associated with the funding of the Public Improvements.

These Special Assessment bonds have a 30 year life. Your property will be assessed a fee that is billed and payable semi-annually commencing in the beginning of the year 2005 and ending in the year 2032. This assessment will pay off principal and interest of the Special Assessment Improvement Bonds. Estimated initial assessments are included in the Exhibits to your Property Report. The maximum Assessment on the Property may increase on average by no more than 1.5% each year between the first year of the levy and 2032.

If you sell your property, you will be responsible to the City of Chicago and/or the subsequent owner for the pro rata portion of the assessment for that part of the year in which you owned the property. The subsequent owner will be responsible for the assessments for the years in which he/she owns the property. The servicing agent will issue the assessment bill prior to the semi-annual due dates of each year, which will be the first business day of March and September. Additional interest and fees associated with the collection of the assessment may be added in the event you are late in making payment. The assessment is considered a lien on your property and may result in a sale of your property if not paid as required in a timely fashion.

You are purchasing the Property subject to the Special Assessment and you will not object to the Special Assessment. You agree that the City validly created the Special Assessment and that the Special Assessment is rationally related to the benefit that the Public Improvements confer on the Property. You will be responsible for the Special Assessment on your Property from and after the Closing Date.

By taking title to the Property, you hereby agree to accept title subject to the Special Assessment and all rights and impositions and obligations thereby imposed, including, without limitation, the Special Assessment, which obligations shall be covenants running with the land. The deed that you, the Purchaser(s), will receive at Closing shall contain a recitation of such covenants, conditions, and restrictions as a permitted exception to title.

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New Eastside Living

Ginger Menne
737 N. Michigan Ave, Suite 1800
Chicago, IL 60611

ginger@gingermenne.com
Tel (312) 927-0852
Off (312) 216-5887
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