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& lAr , : ' ;-vv :!W:~ C This is the third segment of a four-part series on the housing situation today as prepared by McHenry Plaindealer reporter Anthony Oliver The slowdown in business, which the real estate industry is currently experiencing, is also afflicting the coil*--. structiOn trades. j "The situation is ' unreal," said George Hiller, of George Hiller and Son, Inc. "The work L am doing now was bid three or four months ago." Speaking of the letdown in the housing market, Paul Freund of S.H. Freund and Sons said, "It's just like someone took a knife and cut it , off." * Leo Krabbenhoft of Krabbenhoft construction said that if it were not for the apartment building he is erecting on Richmond road, the recent slowdown would be "very noticeable." "If people can't afford to build houses, they have to live somewhere," Krabbenhoft said. Hiller mentioned that a house he had bid three weeks ago is still on the drawing board because the person was unable to arrange the financing. "He's been to eight different financial in­ stitutions and he can't get the money," Hiller said. Ih another situation, Hiller is holding up construction on another house because the buyer has not been able to sell his present house and he doesn't want to be saddled with two houses. Freund said he is going to have to fall back on the remodelling market. "I just can't foresee people borrowing money at these interest rates to build new ' houses," Freund noted. "The remodelling market has been strong all year and it still looks good." Hiller said he, too, will turn to the remodelling market. "Remodelling and additions used to be 50 percent of my business," Hiller said. "I think people will turn to remodelling and building Construction Trade additions until the situation gets better." As far as this situation - is concerned, the builders ; felt that the answer lies with the interest rates. "We've been in this sort of thing before," Krab­ benhoft observed, "I think we'll pull out of it in the same way - either the interest rates will come down or the mortgages will be lengthened." "If the buyer ^cannot qualify for the money," Krabbenhoft went on, "what good is it? Ten years ago, 95 percent of the people who wanted to build houses could qualify for the money. Today, I think about 35 percent of them could qualify." Freund said that the ^answer is "a good supply of money at reasonable interest rates. Hiller said, "I think we could get by at 10 percent interest and compared to the 13 and 14 percent money we've been hearing about, 10 percent doesn't sound so bad." Part of the problem rests with government building requirements, Krabbenhoft noted. "The county says you can't have small lots and the square footage requirements push the cost of a house up into $80,000 and $90,000," Krabbenhoft said. "I don't know what is going to happen, but , we've got a problem , coming up," he continued, j "The government is saying houses have to have more insulation in order to save energy." But, the extra insulation that the government recommends, which in­ cludes weather stripping, insulation glass and more insulation increases the cost of the house by $5,000, according to Krab­ benhoft. The "factory workers" are the backbone of our society, Krabbenhoft said, and the interest rates have bypassed their income levels. The term "factory workers" as Krabbenhoft used it applied more to an in­ come level and not to an occupation. "We figure a monthly payment of about $110 for every $10,000 of valuation," Krabbenhoft "The person who fford those kind of lents is not a factory iter." • V ' lother part of the problem is the increasing cost of materials and construction. "The price of lumber and other materials is not going down," Krab­ benhoft said. "For example, the price of concrete used to go up from $.25 to $.50 a year. Now it is going up $2.00 and $2.50 a year. Also, Krabbenhoft pointed out, all of the building trades are going to want more money next year. All of these cost increases will be reflected in the price of the house, he said. Krabbenhoft went on to say that another part of the problem was with the .expectations of the younger people who are building houses. "Tne average person who builds a house today wants two or three bathrooms, a kitchen that looks like it came out of Home and Garden', a family room and at least a two-car garage," Krabbenhoft said. "Years ago, a family room was a luxury," Krabbenhoft added, "Now it is a necessity." "When I started building houses, every customer painted their own house," Krabbenhoft noted. The builder said the (Continued on page 12) THE MCHENRY PLAINDEALER SERVING THE CHAIN-O-LAKES REGION SINCE 1875 fltoarb Winning Jietospaper 1979-- Illinois Press Association Newspaper Contest VOLUME 104 NUMBER 35 , WEDNESDAY. NOVEMBER 28, 1979 2 SECTIONS 28 PAGES 20* Improve Bus Lot Facilities second violation could result in dismissal." James Tonyan, board member, suggested that the policy seemed to cover a gray area and wondered how the enforcement would be handled. Superintendent Robert Swartzsloff noted that this was a "good question" and indicated that it was broadly written and subject to interpretation because of the general nature of the possible situations. If the superin­ tendent's judgment ;*was questioned (by an alleged violator) the matter would be referred to the board for decision. But the policy was written to cover most situations. Neumann said tfiey needed broad coverage. The spirit of (Continued on page 12) New Law Restrains Farm Tax Rise Spring Grove Man Dies struction, McHenry, at $2,290.93 for the carpenter work, and Laser Electric Corp., Wonder Lake, sole bidder at $7,475 for the electrical work. Board discussion revealed that the joint transportation facility was in the second year of three-year lease at $10,000 per year with the option of a one-year ex­ tension at a greater figure. Fred Goering, director of transportation, said he believed the components of the electrical installation could be moved if they secured a school owned facility. Dave Benrud, board member, recommended approval of the bifl*for the work and the improvement of the ready room to eliminate the present un­ desirable situation for assembling drivers in the waiting room in front of the bus office. The board also approved acceptance of a $53,328 bid for three new buses for the high school, submitted by Superior School Busses, Kankakee. Goering noted that the vehicles would be 66 passenger Fords, and the fact that most of the current fleet are Fords would aid in standardization and simplify stocking of parts and sup­ plies for repairs. The con­ tract provides that the district can trade three old buses in at $500 each or sell them on their own. Ron Dale, director of the vocation ed program, said they had a for their • building program, but might need one for transportation of vocational students between East and West campuses. Neumann urged Goering to try to sell the remaining buses by local ads, possibly to a church group needing such a vehicle. The board approved a policy addition that stated-in very general terms, "Because of the possibility of undue influence being brought to bear upon em­ ployees or persons applying to be employees of this school district, the following restrictions are made ap­ plicable to supervisory employees of the district." The restrictions prohibit any outside business relationship with any employee or known potential employee, und^r the supervisory control of an administrator. A violation could result in a suspension and forfeiture of pay, and a the Illinois Agricultural association, and Willard Hogge, McHenry county supervisor of assessments, discussed the assessing and tax situation in McHenry county to help answer far­ mers' questions on the climb in assessments and taxes. Farmers in_ several townships have received their assessment notice in connection with ' im­ plementation of this law and the need to have the quadrennial assessment. In capsule form, here's the summary of their in­ formation on taxes: 1. in 1976, the best quality farmland had an assessed value of $270 an acre. That rose to $342 under the far­ mland assessment formula in 1977, to $358 in 1978, and to $425 in 1979. 2 - That formula under the farmland assessment bill places emphasis on production of the land, less emphasis on the value of the land for .agricultural pur­ poses. Even with that switch in emphais from land value to production-- basis in 1976 and before was land value only-the ^assessed value went up. because the agricultural value of the land went up. 3 - The Illinois Supreme court in a 1977 decision ruled that land must be assessed at one-third value-that it would no longer wink and ignore assessing farmland at less (as Hogge explained) ^Continued on page 12) Concurrence with District 15 on $10,000 worth of im­ provements for leased bus lot facilities at Sherman Hill was expressed by the board of education of High School District 156 at its regular meeting last week. Costs of the improvement wilLJjje shared equally between the two school districts. Board president Edward J. Neumann, Jr., voted nay on the measure, indicating thfct he had reservations about spending $10,000 on leasehold property. The proposed work consists of improving a second story driver ready room, including access with a new modern vfc^fr^X^ndjnstallatMl^ electrical lines for outside security lights to protect the parked busses and plug-ins for bus engine heaters. Low bidders were Janik Con- Taxes on farmland are up, but not as much as they would be if the old law had remained in effect. That's the conclusion to be drawn from observations made by two tax and assessment specialists during a recent meeting on implementing the farmland assessment law held by the Farm Bureau. Dick McKain, local government specialist with Waiting For Santa Claus The youngsters pictured above are finding it difficult to wait until Santa Claus takes his place in the empty chair on the City of McHenry float. His appearance will highlight the Christmas parade scheduled Saturday, Dec. 1, at 10 a.m. to mark the official start of the 1979 holiday season. The parade will assemble at the Market place shopping area at 9:30 a.m., make its way to Crystal Lake road, then proceed up Main street to Third, north to Waukegan and east to Green. The line of march will then continue to Elm street, turn right to Riverside drive and north to Pearl street and the city park. There, Santa will be ready to listen to children's Christmas requests until 1 p.m. His hours in the hut will be noon to3 p.m. Dec. 8-9,15-16, and 22,23 and 24. After Two-Vehicle Crash Andy McGinnis, 65 of Wilmot road, Spring Grove, died early Saturday evening, Nov. 24 at McHenry hospital as the result of extensive internal injuries suffered in an accident that occurred around 2 p.m. According to witnesses Michelle Kohl and Renee Paleka, both of Spring Grove, McGinnis failed to slow and stop for a car that was signaling to make a left turri. The accident, which in­ volved a light green Ford pickup truck driven by McGinnis and a '73 Lincoln, driven by Debbie Henning, 22, of Buffalo Grove, hap­ pened on State Park road, one mile north of Highway 12, near Fox L$ke and Spring Grove. Another witness, John Richter of Chatham, 111., told Fox Lake police that Ms. Henning was stopped in the northbound lane, signaling to make a left turn, when the truck approached from the rear and slammed into her car. She got out of her car Once again the Regional Transportation Authority has ingratiated itself to a segment of the McHenry population. This time they are the North Western commuters. Last week Wednesday morning they read a sign in the depot informing them that as of Monday; Nov. 26, the parking area west of the tracks would be closed permanently. That was all. Talking with the station agent, they were able > to learn that the closing was all in the interest of installing a new track beside (he present track for the purpose of parking engines. s smelled very much like the odor of orevious talks - that the end of the line would soon be McHenry, not Richmond. The commuters were disturbed, looking forward as they are to a winter of boarding the train in the morning, often amidst less than pleasant weather conditions, and departing it after dark. Where would they park? Why hadn't someone told them? And inconceivable, they thought, was the fact that the City had not been informed. Neither did the newspaper have any idea what was going on. And newspapers like to stay informed. A call to the Rail depart­ ment by commuters revealed that the long range (Continued on nnao 1 Various Fee Hikes Boost County Revenue $140,000 A projected increase in revenue totaling $140,000 will result from action taken at a recent McHenry County board meeting. The action involved increasing fees applicable to the county's building ordinance, health laws and the zoning or­ dinances. A committee is checking into increasing charges for liquor licenses. Action was required to help offset an estimated $700,000 in the budget starling Dec. 1, 1979. A1 Collins, Wonder Lake, chairman of the Health and Agriculture committee, said lhe committQferealizes some of the increases are large but said the county anticipates raising fees as needed on a yearly basis instead of delaying action for several years. Collins noted that the fees increase in the Health d e p a r t m e n t a f f e c t s e s t a b l i s h m e n t s a n d residents both in the county and within municipalities because the health or­ dinance applies to the entire county. Discussing 'projected taxes, board members said the estimated assessed valuation of property in the county will exceed $1 million. That total takes into consideration reductions in assessments permitted by the annual Homestead and senior citizen Homestead exemptions. In discussing the assessment of farmland and to implement the farmland assessment bill, board members learned 150 protests had been filed ,by farmers in ATflen, Hebron, Richmond, Burton, Dunham, Hartland, Seneca, Riley and Coral townships- the main rural township McHenry county by early November. (Continued on page 12) and started screaming hysterically. "It looked like she had a four-stitch gouge in her head", he said. "I got out of my car to help her". He observed that the driver of the truck started to get out of his truck then pulled back and put his head on the steering wheel. When the Fox Lake police^ Fire department and am­ bulances arrived, Ms. Henning was lying on the grass alongside the road, crying and holding a cloth to her bleeding head. John flichter was aiding her. She was transported to McHenry hospital by ambulance and later released. Fox Lake firemen hosed the area surrounding the (Continued on page 12) Long Time Businessman Dies At 79 Morris W. Crouch, 79, a McHenry businessman for many years, died Friday, Nov. 23, in Memorial hospital, Woodstock. Mr. Crouch came to McHenry in 1931 and established McHenry Floral Co., which he owned and operated until selling the business to his son 14 years ago. Until illness forced his (Continued on page 12) PRESENT HOLIDAY MUSIC-Ken Arber of Salem, Wis., and Geri Gausling of Wonder Lake will be featured in a special holiday musical interlude when the McHenry Choral clab opens its thirty-ninth year with a Christmas program in West ^ campus auditorium Saturday and Sunday, Dec. 1-2, at 8:15 p.m. When the McHenry Choral club presents the first program of its thirty-ninth year next weekend, it will feature, among others, the talents of Ken Arber and Geri Gausling. Arber, of Salem, Wis., can be found at the piano when he isn't lending his expertise to his work at the nuclear plant at Zion. A veteran pianist with 20 years ex­ perience with a band, he is a song stylist who has been featured on two previous club programs. Mrs. Gausling, a young homemaker from the Wonder Lake area, has played the roles of Dolly and Mame in previous presen­ tations of the choral club. They will team up to present a holiday musical interlude between special scenes of the program. The Christmas offering will be divided into four sections, each depicting a (Continued on page 12)