Assessor yanks tax break for Loyola, Franciscan project

Crain's:

Cook County Assessor James Houlihan is moving to take a lucrative tax break from Loyola University Chicago and the Franciscan Sisters religious order.

In an unusual step likely to draw strong protests from the two prominent Roman Catholic institutions, Mr. Houlihan late last week quietly issued a preliminary ruling that a posh residential retirement development involving the two on the Near North Side is subject to property tax, rather than being exempt, like most land owned by religious groups.

Mr. Houlihan says the decision can be appealed, both within his office and to outside agencies. But his office confirms that, unless changed, the “preliminary notice of assessment” will stick someone involved in developing the 57-story Clare tower at 55 E. Pearson St. with a tax bill of roughly $670,000 a year.

A spokesman for the Franciscan Sisters of Chicago Service Corp., which is developing the residential complex and has a 99-year lease on the property from Loyola, released a statement saying the Clare “is entitled” to the tax break and “is taking all steps to maintain that tax exemption.”