Tax Considerations of the Condominium Sponsor - Research Paper Example

Number] URBAN PLANNING The Scenario The construction of 22-story condominium on North Avenue Beach authorization is to be granted by the City Council of Chicago. It is named as ‘North Avenue Beach House Condos’ and the City Council is under pressure whether to allot permission for the construction of condominium or not, as there are various aspects attached to it construction. In the 22-story condominium, 352 units would be present. The Chicago Planning Department is expected to receive an overwhelming amount of $3.25million tax per year from this endeavor. The Mayor of the city is supporting condominium proposal after getting financial feasibility report of this project. The construction of condominium will make public accessibility to the beach remote because of the protected entry gates, by guards; only condominium residents will have access to it. Moreover the construction on public area of the beach will create ambiguities in general public minds. Strategic Planning The construction of condominium will create problems for the City Council and Condominium builders as immense public pressure will rise. The current proposal of the condominium suggests that problems for general public, tax collectors, city council and builders will be seen in the coming days therefore strategic planning in this regard is imperative and essential. PEST analysis is one of the best ways to analyze the prevalent scenario. The political environment of the area is in favor of the construction of North Avenue Beach House Condos. The Mayor of the city is in favor of the construction however political rivals will sooner know about inaccessible public access to the beach and chaos in the city will emerge. The political rivalry of the city needs issue to appear to mobilize masses and this will be the best issue to do politics. The strategic planning of North Avenue Beach House Condos construction can be done in such a way that passage for public accessibility to the beach must be ensured. Changes in the proposed plan are indispensible as there are many quotations which will create problems for condominium to build and operate. The front area of the lake will be shortened due to the construction and people love to visit the spot. Facilitating general public in such a way that they would be cherished by this construction is important. The design of the condominium must be curtailed in this regard. Tenants’ facilitation must be done resourcefully as while the construction takes place; they should be given some other working option. Economic Context The North Avenue Beach House Condos will be bringing positive impacts to the economics of the city as colossal amount of money can be generated through this project. The Chicago planning departments financial analysts have estimated that out of 352 units in the condos, $9,245 tax returns per unit annually can be collected which is good for the economic and finance division of the city. This will accumulate to $3.25 million per annum tax returns which is an encouraging amount. The economic scenario suggests that construction of Condos can strengthen the economic position of the city (Berger and Rohan 4). Future developmental plans for the city can be very well executed by the collection of taxes. Chicago is one of the most populous cities of the country therefore great amount of money is required for its development and growth. The opportunities for business activities in the condos will also be generated. The economic burden will be eventually shared and employment prospects can reduce the curse of unemployment from the city. Employment opportunities during the construction phase till its finish will be beneficial. Taxes collected money can make reforms in the city and even facilities on the beach for general public can be inaugurated (Anderson 10). Tenants will be given better way of performing their businesses. The current position of the tenants will surely be better. The economic policies of the state allows constructions of these kinds as this would reduce the load on land and economic activities will be boosted, so this project is necessary to instate. Government revenues will tend to increase and the fiscal health of the society will be uplifted. Social Context The social context of the society is important to discuss in the first place. There are several benefits for condos construction. The prices of condos are usually less which is a big advantage for the people. There are no outdoor works for the residents of condos and the figures portray that most individuals prefer to live in condos. Caring about the lawn and making outdoor repairs are not headache for condos residents. The society overall living in the condos engage with each other more often. The societies building factor lies in the condos. The facilities which are not accessible generally such as swimming pools, gym, tennis courts etc. are found in condos. The availability of all necessary items under one roof is a sign of relief for many of the residents. Moreover cheap packages for the residents are offered which makes a win-win situation (Dolan 64). The renovation freedom of condo is always there to the owner as there are no hardcore strings attached. The option of making changes in the arrangement of apartments is one of the biggest advantages of condos. The security system in condos is phenomenal as installed security plan is made according to the recent challenges. Well-equipped security staff along with effective security preparation is alert to face all kinds of difficulties. The location of the condos is the most attractive thing and people make sure that their purchase decision is precise. The views of condos are highly rated and the difference in price is as per location. The social gathering of condos residents in gyms, tennis courts, swimming pools and even parking lots makes condos living exceptional experience (Bennett, 76). Political Scenario The political involvement of concerned parties in the construction of condominium can bring devastating results which would affect all the stakeholders massively. The social acceptability of condominium surfaces as there is no disturbance in their everyday endeavors. The case of this condominium is different as lakefront area of the beach will not be accessible to the people. The residents of the condos will be privileged to make in into the 500 meter beach north and general public entrance will be abandoned. The linkages roads will be also affected as small private marina will be constructed too. The political authority of the city, the Mayor, has allowed the construction of this project nevertheless political storm will come out by the erection of North Avenue Beach House Condos. Beach area is dedicated as public spot and hurdles in accessing beaching due to condos will not be tolerated by the people. The political rivalries, civil rights activists will try to influence on this project as this is not feasible for the general public. The barriers in roads are the key issues to be addressed as taking long turnings is not appreciated by the masses. Civil activists also create problems while the construction phases as these condos are good for nothing in their sight. Environmental Circumstances The construction of condominium will take place on the beach of Chicago city. The environmental factors such as breeze and wind issues may affect the construction phase. After the creation of North Avenue Beach House Condos, fungus element in the apartments may rise as these kinds of problems are common in the buildings nearby beaches. The environmental factor such as water issues, climate and uneven surface at the beach requires high quality construction facilities. Climate factor will incorporate several problems during the construction and after the construction of condominium. Threats and Opportunities There are various opportunities and threats involved in this mega project. The economic position of the city can be strengthened by the collection of taxes from North Avenue Beach House Condos. Development in the city can take place; employment opportunities will be created which is important in the current country’s situation. Population load from the center of the city can be shifted towards the beach. Better living opportunities for the people can come into action. The threats of condominium building are the obstacles which will be created for the general public as construction site is public. People are familiar to visit this site of the beach more often and attachment element comes in place. The political scenario due to this construction will not be promising as most of the individuals will be disturbed by road obstruction and inaccessibility to the most part of the beach. Public pressure will be there and lawsuit may come in to create hurdle, as the area is public. Conclusion and Recommendations The North Avenue Beach House Condos construction has pro and cons which needs to be rectified before any further step is taken. The edification of people about this plan is vital as some of the beach area will be covered and general public will not be allowed to walk there. The economic benefits for the city must be publicized, and the generated tax income from this project must be allotted on the support and revival of city’s development. The changes in design of condos must be done in such a manner that hindrances in lakefront area and roads linkages should wipe out. Work Cited Anderson, Paul E., and Thomas G. Cody, "Tax Considerations of the Condominium Sponsor," St. Johns Law Review 48.4 (2012): 10. Print. Bennett, Donna S. "Condominium Homeownership in the United States: A Selected Annotated Bibliography of Legal Sources." (2010). Print. ‎ Berger, Curtis J., and Patrick J. Rohan, "Condominium versus Home Owner Association Arrangements--An Overview" St. Johns Law Review 48.4 (2012): 4. Print. ‎ Dolan, Amelia Jane. Luxury condos: an analysis of sales price and hotel amenities in Manhattan. Diss. Massachusetts Institute of Technology, 2011. Print. ‎ Read More