When a suburb doesn’t support the big tax break supported office park

An interesting story is brewing in Hoffman Estates where the State of Illinois wants to keep the Sears headquarters by continuing a major tax break but the local school district and some in the community don’t want to live with the reduced tax revenue for years to come. Central to the story: the tax break didn’t help fill up the 780 acre office park, leading to less tax revenue than expected even with Sears located there.

Instead, two decades after the special taxing area was created, some 200 acres remain undeveloped in the 780-acre park anchored by Sears Holdings Corp.’s headquarters. A swath of land that was supposed to generate $50 million in property taxes in 2012 raised only $25 million in the past tax year…

The ambitious project’s inception came at the pinnacle of “euphoria” over a booming commercial real estate market, said John McDonald, who teaches land economics and real estate at Roosevelt University. But that party ended with the economic slowdown of the early 1990s, and the market, he said, has not rebounded. There is no “desperate need for office space anywhere right now,” he said…

The inability of the park to pull in the predicted revenues underlies the battle over Sears’ future. The fight has largely centered on Community Unit School District 300, a financially strapped taxing body whose officials claimed it stood to lose more than $10 million in revenue per year under the original plan to extend the taxing area’s term.

The parties and legislators are continuing to discuss whether Sears would be required to keep some 4,000 of the roughly 6,100 jobs at its headquarters well into the future. The potential consequences should the company not meet that condition remain unclear, said Hoffman Estates Corporation Counsel Arthur Janura.

Typically, suburbs are thought to be in favor of these tax breaks as it helps lure new businesses to town. However, this situation is a cautionary tale about tax breaks: just because one is granted doesn’t necessarily mean that businesses will necessarily move in. If everyone is building big industrial or office parks and offering tax breaks, can everyone win? And in an era of falling tax revenue and rising costs, suburbs need to maximize their assets.

Of course, the State of Illinois will look really bad if Sears leaves as it will feed a (growing?) narrative that Illinois is generally bad for business. It will be fascinating to see how the State and Hoffman Estates come to some sort of agreement that everyone can live with.

“Big-Box Houses” the successors to McMansions?

Builder has an article about a new kind of home: “big-box houses.”

Even as average new-home sizes have fallen slightly across the country, builders in some markets are finding a profitable and underserved niche of buyers who need or want a house as big as a mansion with the price tag of a cottage. While some buyers are in true need of the space, others, awed by the per-square-foot value of so much elbow room that cheap land and efficient box-like floor plans make possible, can’t resist the buy…

Lennar, for example, recently rolled out its 4,054-square-foot Himalayan model in the Tampa, Fla., market for $270,990. D.R. Horton has The Surrey, a 4,600-square-foot home in Lakeland, Fla., starting at $223,990. M/I Homes is selling the 5,249-square-foot Gran Vista in Orlando starting at $336,460. And KB Home has a 5,211-square-foot model it is selling in Austin, Texas, for $422,950…

Another housing executive says the big-box home trend was born as a way to compete with resales because it is rare to find large homes among resales and foreclosures, making their plus-size a product differentiator. Also, the larger homes can often pass muster with appraisers more easily, because the bigger the house, the smaller the square-foot price, and the higher-priced portions of the home, kitchens and bathrooms, are amortized over a larger number of square feet. The lower price per square foot helps the homes compete with the lower per-square-foot cost of distressed home sales.

Still, the formula of building such homes at a profit is tricky. It requires that land in the right neighborhoods be bought at fire-sale prices and that the home itself be value-engineered for cost efficiencies as well. The box on top of a box model is a less expensive way to build than a single-level house or one with more complicated shapes and roof pitches.

Quick summary: there is still a part of the housing market for big, cheap homes, particularly among those with larger families.

My question would be how these homes differ from McMansions. It seems to be that the big-box homes are budget big homes with no frills. McMansions came to be known for their luxuriousness, whether this was reflected in the large windows in the front, the stone mailbox or wrought iron fence, the stainless steel appliances and granite countertops, or the voluminous great room. These big-box homes are big because their owners want to use all the space, not because they want to impress people. I wonder what this means for the quality of the construction: McMansions were often regarded as being shoddy and the builders quoted in this story admit that these homes have thin profit margins.

Also: the name is intriguing. McMansion came to be a generally negative term. “Big box” is usually used derisively to refer to retailers like Walmart or Home Depot who have huge stores and low prices. Additionally, there are a lot of connotations about big parking lots, environmental concerns, and sprawl. If I were a builder, I wouldn’t want my homes to be known by this term. If this term sticks, will these homes become reviled in the same way as McMansions?

WaPo op-ed suggests sociology degree are the antithesis of Wall Street

An opinion piece a few days ago in the Washington Post contrasts those working on Wall Street and sociology majors:

How nice it would be if the 99 percent had never heard of Wall Street – perhaps if it didn’t exist at all.

There would be no need to be jealous of your college classmates’ $10 million paydays while you majored in sociology. No egg on your face if, as a hot-shot investment manager, you had poured $100 million of widows’ and orphans’ money into securities called collateralized debt obligations that you didn’t understand. There would be no collapse in the value of the home you bought in 2005. Several million people who lost their houses to foreclosure might still be proudly mowing their lawns. And your retirement savings would not be shattered because of all those high-flying technology firms that your mutual fund bought back in the 1990s.

The rest of the opinion piece goes on to talk about the downside of Wall Street. But the comparison of wealthy Wall Street employees versus sociology majors is interesting. The main point seems to be that sociology majors don’t make much money. My response: sociology majors aren’t at the bottom of the heap for median earnings.

A more latent point might be that sociology majors might be the most recognizable discipline that is opposed to the free-market capitalism represented by Wall Street. Is there any other discipline that would be even close? This animosity between sociology and neoliberalism or free-market economics could come from two areas:

1. Different explanations for human actions. Economists tend to go with rational choice explanations that humans are motivated by incentives and self-interest. Sociologists would suggest things are more complex and include factors like values, emotions, ideology, social networks, and altruism.

2. Different values: money and resources flowing freely versus a greater sense for a need for economic and social equality.

There are ways to bridge these two approaches, perhaps in subfields like economic sociology. At the same time, it is interesting to see the choice to contrast Wall Street and sociology.

ASA pushing for better sociology Wikipedia entries

This news came out earlier this week in the American Sociological Association’s Footnotes: the ASA is hoping sociologists and sociology students will help improve Wikipedia pages pertaining to sociology.

In an essay on the association’s online newsletter (scheduled to be included in the next edition of its print newsletter), Wright this week announced the Sociology in Wikipedia Initiative: a formal call to sociologists to help improve and expand Wikipedia entries that might benefit from their expertise and consider assigning their students to do the same.

“Wikipedia has become an important global public good,” Wright writes in the essay. “Since it is a reference source for sociologically relevant ideas and knowledge that is widely used by both the general public and students, it is important that the quality of sociology entries be as high as possible. This will only happen if sociologists themselves contribute to this public good.”

Not only might Wikipedia benefit from contributions by students steeped in academic research methods, but the exercise might help students learn how to read the crowd-sourced encyclopedia in the proper context, said Wright.

“What better way to get students to understand that it’s actual people like them who have written this stuff, than for them to write this stuff?” he said.

Is this “public sociology” at work? I don’t mind this call as it would help ensure that Wikipedia has accurate and in-depth sociology information rather than just a bare bones outline. Actually, I’ve thought the sociology Wikipedia entries weren’t that bad already, particularly compared to other disciplines. For example, the statistics pages on Wikipedia are technically correct but it is very difficult for a layperson to understand what is going on.

But how many sociology faculty will spend much time with this since there aren’t many professional incentives? Even publishing in online journals as opposed to more traditional print journals is not well-regarded so what’s the point of helping improve Wikipedia entries? This may seem like a move toward embracing technology and toward a younger generation of sociologists but the discipline has a long way to go.

At least a few leaders of major academic groups are admitting that they use Wikipedia as a source. Not too long, admitting this would not have been good for one’s status. How far away are we from Wikipedia being an acceptable source?

What happens on Dec 25 in Lego Star Wars Advent calendar?

I’ve seen this advertised several times: the LEGO 2011 Star Wars Advent Calendar. I have one big question about this product (besides why it costs so much): is December 25th marked by the birth of Luke Skywalker?

Quiet plans for private illegal immigrant prison anger Florida town

Here is an interesting story about quiet plans to build a privately-run prison for illegal immigrants in a wealthy Florida town that helps illustrate the issues of having private prisons, NIMBY concerns, and immigration:

Only the leaders of Southwest Ranches kept their plans quiet from residents for almost a decade, and the project has now ballooned into what would be among the federal government’s largest immigrant detention centers. The town would have to pay $150,000 each year to keep the prison, but officials say the town would turn a profit by getting 4 percent of what U.S. Immigration and Customs Enforcement pays the company operating the prison to hold inmates there.

Many residents finally caught wind of the idea this year, when the immigration agency announced a tentative deal, and they’re angry. They’ve held protests at public meetings, contemplated whether to recall the mayor before his March election and whether to amend the town charter to make it easier to fire the city attorney pushing the deal.

The objection over the prison has created an odd set of allies among the town’s affluent residents, many of whom are wary of illegal immigrants, and longtime activists who fight for immigrants, legal or not…

But according to Mayor Jeff Nelson and others involved at the time, the plan for some kind of prison run by Corrections Corporation of America, the nation’s largest private prison operator, was always integral to Southwest Ranches’ ability to survive.

The town, a self-described “rural lifestyle community” located southwest of Fort Lauderdale, is for the equestrian set. There are several very interesting cross-currents in this story:

1. Lots of towns need revenue. Not only will Southwest Ranches earn money per inmate but there will be jobs at the prison.

2. Immigration is a hot-button issue. Shouldn’t people in town opposed to illegal immigration welcome such facilities?

3. But, of course, those worried about illegal immigration probably don’t want the prison right next to them. Classic NIMBY situation – build it somewhere else.

4. Local officials have done this quietly and it appears residents may not be able to do much at this point about halting the process.

The conclusion of this story makes it sound like the NIMBY concerns win out – as one resident says, “In the opposition to the prison, both sides of the immigration debate are represented.” I can’t say I’m surprised – what wealthy community would want a prison in town? If the private company doesn’t end up building in this town, how difficult will it be for them to find another town who needs the revenue? And if this community does indeed need revenue, would these same residents be willing to give up services or pay higher taxes?

“Startling” number of “near poor” in the United States

The Census Bureau released figures recently showing a growing number of Americans living below the poverty line. But the figures also showed a population increase in another group: the “near poor.”

When the Census Bureau this month released a new measure of poverty, meant to better count disposable income, it began altering the portrait of national need. Perhaps the most startling differences between the old measure and the new involves data the government has not yet published, showing 51 million people with incomes less than 50 percent above the poverty line. That number of Americans is 76 percent higher than the official account, published in September. All told, that places 100 million people — one in three Americans — either in poverty or in the fretful zone just above it…

The Census Bureau, which published the poverty data two weeks ago, produced the analysis of those with somewhat higher income at the request of The New York Times. The size of the near-poor population took even the bureau’s number crunchers by surprise.

“These numbers are higher than we anticipated,” said Trudi J. Renwick, the bureau’s chief poverty statistician. “There are more people struggling than the official numbers show.”…

Of the 51 million who appear near poor under the fuller measure, nearly 20 percent were lifted up from poverty by benefits the official count overlooks. But more than half were pushed down from higher income levels: more than eight million by taxes, six million by medical expenses, and four million by work expenses like transportation and child care.

It would be interesting to know more about this group of “near poor”: is this a consistent position they hold in society? Is there much downward or upward  mobility from this group? Is this a group that grows dramatically in tough economic times for the whole country? The story makes it sound like this is a group that could easily go either way: a better job opportunity might push a household upward while a large medical bill or the need to replace an aging car might push them back much closer to the poverty line. And after knowing more, what policies would help improve the lot of this group – jobs, education, a bigger safety net?

I wonder additionally how much of this story is really that Census Bureau researchers are “surprised” by these findings. This is what the headline emphasizes. “Surprised” suggests that no one saw this coming. Should they have been surprised? After all, the median household income in the United States is around $50,000, suggesting that there are lots of people not too far from the official poverty line. Past context is important here to know how much larger this group is now compared to past time periods.

NPR reports on the state of American hipsterdom

NPR sums up the state of the American hipster scene:

On the streets of Franklin and Nashville and almost every town throughout America now, hipsters scuttle by on scooters, zip around in Zipcars or Smart cars, roll by on fixed-gear bikes or walk about in snazzy high-top sneakers and longboard shorts. They snap Instagram photos of each other — in black skinny jeans and T-shirts with funky epigrams like “If You Deny It, You Are A Hipster” — and turn the pix into iPhone cases. They buy cool-cat snuggle clothes at American Eagle and down-market monkey boots at Urban Outfitters. They drink cheap beer, listen to music on vinyl records and decorate their lairs with upcycled furniture.

They follow indie bands and camp out at Occupy movements. They work as programmers and shop clerks, baristas and bartenders. They are gamers and volunteers, savvy entrepreneurs and out-of-work basement dwellers.

In case you haven’t noticed, hipsters — and those who cater to them — are everywhere. And that really galls some hipsters…

You might think that as hipsterism ripples out, in concentric (and eccentric) circles farther and farther from its big-city epicenters, the ultra-coolitude would lose its authenticity, Furia says, “but the opposite may be true. Cities are known for setting trends; hipsterism is about anti-trends. It sounds funny, but hipsters in Omaha may actually be cooler than hipsters in New York City — everyone knows about New York City.”

I don’t know that this report adds much to what has already been noted about hipsters – see an earlier example here. Here is the question I would really love to hear people answer: what comes after hipsters? How long until hipsters are no longer cool and another group takes over? What’s the next “cool” group?

Designer parking garages in Miami

Parking garages tend not to have good reputations as they are often functional blocks of concrete that are measured by how many cars they can fit. But, Miami apparently has a number of “designer” garages including a proposed parking elevator for a new high-rise:

The $560 million Jetsonesque tower will rise in Sunny Isles Beach as part of a collaboration between Germany-based Porsche Design Group and a local developer, Gil Dezer. It likely will be the world’s first condominium complex with elevators that will take residents directly to their units while they are sitting in their cars…

Here is how it will work: After the resident pulls over and switches off the engine, a robotic arm that works much like an automatic plank will scoop up the car and put it into the elevator. Once at the desired floor, the same robotic arm will park the car, leaving the resident nearly in front of his front door. Voila, home!

The glass elevators will give residents and their guests unparalleled views of the city or of the ocean during their high-speed ride, expected to last 45 to 90 seconds…

The car elevators are the latest twist on Miami Beach’s burgeoning passion for designer parking garages. The highly acclaimed 1111 Lincoln Road designed by Swiss architects Herzog & de Meuron opened in 2009; also planned are garages by London architect Zaha Hadid, Mexico’s Enrique Norten and Miami’s own Arquitechonica.

Being able to live in a luxury condo that is greatly enhanced by parking right outside of your door sounds like a uniquely American prize. This is another reminder how American culture is dominated by the automobile.

At the same time, this could also be seen as an architectural or design issue: how can one successfully design parking garages so they are aesthetically pleasing? While these garages in Miami might be for more luxurious residences, there are other options. One option that seems to be growing in popularity is underground garages. While this is great in dense urban spaces where valuable land can’t be wasted on a separate parking structure, it can also be found in denser suburban developments where the goal is to allow condo or townhome owners to park directly below their units and to keep the garage out of sight. After all, large houses with prominent garages may be called “snout houses” in reference to the overarching emphasis on where the garage is going to be parked.

This reminds me of one of the parking decks in Naperville. The Van Buren structure features a stained glass window memorializing the “Cars of the Century.” Also, Wheaton has done a nice job of hiding their downtown garage behind more traditional looking structures.

Interpreting Abraham Lincoln through a 21st century lens

A new sociological book explores how Americans have interpreted Abraham Lincoln for their own purposes:

Jackie Hogan, sociology chair at Bradley University in Peoria, writes that, by now, nearly 150 years after his assassination, the way we think about Abraham Lincoln says more about us than about him.

“In the years since that fateful night at Ford’s Theatre, fact and legend have become so intertwined in the Lincoln story that it now may be impossible to know the man as he really was,” Nolan writes in her new book, “Lincoln, Inc.: Selling the Sixteenth President in Contemporary America.” “Instead, we are largely limited to 21st-century interpretations of what 20th-century historians wrote about 19th-century recollections of the man. We are reduced to standing in a historical hall of mirrors, trying to discern the original from its countless reflections.”

This blog has covered, tongue mostly in cheek, a lot of the phenomena Hogan deflates in far more scholarly fashion, like Geico’s “Honest Abe” commercial and Lincoln as science-fiction hero. Although I confess I didn’t know that Abe has also starred in romance novels. (Irving Stone once wrote that Mary admired “the powerful muscles and the indestructible male strength of him” … whew, what an image.)…

Hogan is particularly good in her examination of how people have marketed Lincoln over the years, how they’ve  used Lincoln to market themselves, and how Lincoln is often appropriated for modern political purposes — there’s a whole chapter titled “What Would Lincoln Do?”

Why worry about the actual history if you can use the figure for your own marketing ends?

This sort of work on collective memory can be quite fascinating. Of course, we are far removed from Lincoln’s life so there is a lot of room for distortions and various interpretations. What is important today is not just what Lincoln actually did but what we think he actually did. For example, our current president has used Abraham Lincoln as an example numerous times in order to help get his points across. This is probably a fairly good tactic for a leader from Illinois: is there another figure that comes anywhere close to matching Lincoln’s stature? (Michael Jordan probably has a broader popularity around the world but it is of a different kind.)

This reminds of a local story that involves Lincoln. For years, the suburb of West Chicago was thought to be a site of an unplanned Lincoln-Douglas debate. This story went that Lincoln and Douglas were nearby to each other because of some train difficulties and the two decided to debate in West Chicago on property just southeast of the corner of modern-day Route 59 and Washington Street. This story was corroborated by a number of eyewitnesses who submitted their testimony in affidavits to prove their veracity. Alas, the story is not true:

Bombard says Lincoln and Douglas probably did come to The Junction, as West Chicago was known in those days, because it was a rail crossroads.

“To go anywhere, you had to come to The Junction,” she said.

In fact, Bombard said a man from Batavia remembers seeing Abraham Lincoln at The Junction, once when he was 8 years old and a second time on the funeral train.

But Lincoln experts largely agree, Bombard said, that it’s impossible that the two were together on Aug. 28, 1858, the day the debate supposedly took place, because the places Lincoln was known to have been on Aug. 27 and Aug. 29 would have made it impossible for him to be in West Chicago on Aug. 28.

Still, the story featured prominently in the history of the community for a number of years.