Bears stadium at Arlington Park? Just keep the taxpayers out of it

With the announcement that Arlington Park will be for sale, ideas are swirling about how the land could be used. I have heard a few times already the possibility of the Chicago Bears constructing a new stadium there. Here is one example:

The Loop from the North End of Soldier Field

Now it is urgently incumbent upon regional politicians and civic planners to begin a campaign to get a global-class Chicago Bears stadium built as a profitable symbol of the rebirth of the 326-acre site.

Fulfillment of such a bold and visioned plan would bring about a marriage of an NFL team and a suburb that was first discussed between “Papa Bear” George Halas and then-AP empress Marje Everett in 1968…

The question of “How?” can only be answered if there is an enormously creative and concerted joint effort put forth by such potential game changers as Bears chairman George McCaskey, Arlington Heights Mayor Tom Hayes and Gov. J.B. Pritzker…

Said Mayor Butts: “From my experience — and I’m talking about my suburb, which is 52 percent Hispanic, 47 percent Black and 1 percent ‘other’ — if you have an inspired plan, proper financing that does not put the host municipality at risk and a resolute ‘will-get-done’ attitude, toss in hard work and you can make a great thing happen.”

On one hand, this is a unique opportunity. It is rare for parcels of land this large to open up in suburbs developed decades ago. Filling a large parcel can be difficult; what can add to the existing community without threatening the current character? This particular location provides easy access to highways, easing travel for thousands of fans. The surrounding area is already used to sporting events on the sites. A suburb could become home to a major sports stadium.

On the other hand, the “creative and concerted joint effort” required to pull this off could become an albatross to taxpayers who often fund large stadiums for wealthy team owners. This is a tax break of massive proportions for a feature economists argue does not necessarily bring added economic benefits to a community. The stadium may provide status to a suburb but this does not always translate into financial gains. And Illinois has a history of this already: just see the state deal where taxes are still funding the White Sox stadium.

How to balance these competing perspectives? Many suburbs would jump at the opportunity as growth is good, having a pro sports teams is an important status symbol, and hearing the Bears are playing in Arlington Heights could be part of a branding strategy. But, I would recommend leaving the taxpayers out of this: they will likely not benefit economically from a new stadium.

Monopoly, racism in Atlantic City, and ongoing effects

The board game Monopoly papered over racism and residential segregation in the city and its legacy in that city and in New Jersey is ongoing:

Photo by Anete Lusina on Pexels.com

For white Americans, “Atlantic City, like all mass resorts, manufactured and sold an easily consumed and widely shared fantasy,” Bryant Simon, a history professor at Temple University and the author of Boardwalk of Dreams: Atlantic City and the Fate of Urban America, told me. “Southernness is used to sell that fantasy in the North,” he explained, pointing to marketing that focused on the stereotypically white, southern luxury of hiring Black laborers to shuttle visitors around in rolling chairs, wait on their tables, or otherwise serve them. Jim Crow, Simon said, existed everywhere. Around the time that Monopoly was taking hold in Atlantic City, ballots there were marked “W” for white voters and “C” for “colored” voters, Simon said. It would take countless demonstrations and protests and a long struggle by the city’s Black residents to secure their civil rights, but the Monopoly board records a world of ubiquitous racism.

Although Black residents and tourists could work at hotels such as the Claridge, between Park Place and Indiana Avenue, they were not permitted to dine or lodge there. Some hotels even offered white guests the option of having only white workers wait on them. Black employment was largely limited to the tourist industry, as political and municipal jobs were reserved for white residents.

Atlantic City’s Boardwalk staged minstrel shows, but Black people were largely barred from attending any form of entertainment on the famed Steel Pier. Schools in the area were segregated, clerks at many hotels did not check in Black tourists, and what antidiscrimination laws were on the books were not enforced, Simon said. If Black residents were found to be on a beach that wasn’t designated for Black patrons only, “it wasn’t just like they were run off,” Simon said. “They would be arrested. The police enforced segregation in the city.”…

The impact of the decisions made during Monopoly’s heyday is still felt today. Atlantic City is a “redlined epicenter” of the state, according to the New Jersey Institute for Social Justice, and it leads the state in foreclosures. The rate of white homeownership in New Jersey stands at 77 percent, but Black homeownership is scarcely half of that, at 41 percent. A typical Black family in New Jersey has less than two cents for every dollar of wealth held by a typical white family.

Monopoly is meant to be fun. Until it is not quite the same when we know more about the city behind the game. The game ignores the racial and housing discrimination elements of real life while the winner is a good capitalist who rode real estate luck and development to the top. Few, if any, games deal with this dimension of social life even as the patterns are long-established.

Similarly, the effects of these past actions are long-reaching. The wealth gap in the United States as a whole between white and Black households is roughly 9-10 to 1 so this larger gap in New Jersey is even more troubling. The state also has a long legacy of limited affordable housing as well as racial tension, illustrated in the Mount Laurel case and ongoing clashes in suburbia (see examples here and here).

Creating the antidote to Monopoly may only be able to go so far to remedy the historical record and improve conditions in New Jersey. Yet, at least knowing that there is more behind the story of Atlantic City and those who were not intended to be included in the game can help us remember which narratives carry the day – and which others could.

When new residents to an area bring a lot more money to spend on housing

A piece in the New York Times highlights what happens when residents from one part of the United States move to another. One aspect of this: the new residents can bring a lot of money with which to purchase a home.

Photo by Karolina Grabowska on Pexels.com

According to a recent study by Redfin, the national real estate brokerage, the budget for out-of-town home buyers moving to Boise is 50 percent higher than locals’ — $738,000 versus $494,000. In Nashville, out-of-towners also have a budget that is 50 percent higher than locals. In Austin it’s 32 percent, Denver 26 percent and Phoenix 23 percent.

As the commentary goes on to note, this means that prices in certain housing markets can then go up. New residents with resources compete with existing residents who may or may not be able to keep up. Several thoughts arise:

-Imagine current NIMBY practices at a national level instead of just at a local or regional level. The piece hints that people in multiple locations might want to restrict migration from California. Mass movements of people in the United States are not heard of and restrictions have been applied before.

-This presents an interesting conundrum for local officials and local planners. Growth is usually good. Until it is not the kind of growth local residents want or it is growth driven by outside forces. If communities want to grow and attract wealthier residents, are they also willing to accept the changes that might come?

-Just as some communities have requirements that developers of big projects pay fees or provide affordable housing, is there some way for a community to “tax” newcomers to help provide funds to offset changes?

-Do these patterns eventually lead to from a perpetual search for the new hot, lower cost of living location? Once Boise, Austin, and Nashville are different, what places come next – Omaha, Billings, Baton Rouge? This would take quite a while to work out but I do wonder how many attractive lower cost of living places there can be at any one time.

Selling Schaumburg, Illinois

Schaumburg, Illinois, nearly 30 miles northwest of downtown Chicago, is a prototypical edge city. Home to Woodfield Mall, hundreds of thousands of square feet of office space, and over 70,000 residents plus located at the convergence of I-290, I-90, and IL-390, journalist Joel Garreau mentioned Schaumburg in his 1991 book Edge City: Life on the New Frontier. When I heard Schaumburg advertising on the radio, I wondered: is this an aggressive or a desperate move in these particular times? Where does Schaumburg fit among other Chicago suburbs also trying to get their name out there (examples here and here)? A few thoughts on this.

https://www.villageofschaumburg.com/

-Woodfield Shopping Mall is one of the largest in the United States. Even with numerous shopping malls struggling plus the problems of brick and mortar retailers, Woodfield will probably survive due to its size, location, and status. It may need to transform significantly – can it still support hundreds of stores? – but it is likely in good shape compared to numerous other Chicago area malls that are exploring new paths (other examples here, here, and here).

-Office space may be hard to fill. Schaumburg is not in a city; other suburban office parks have become less desirable in recent years with firms looking to appeal to young workers. Add the complications of COVID-19 when more workers are not going to the office. At the same time, many workers going to Schaumburg are doing so via car and they may be coming from relatively well-off suburban areas.

Growth is important to American communities. Like many edge cities, Schaumburg experienced explosive growth early in its history: it had 986 residents in 1960, in 1980 had over 53,000 residents, and peaked in 2000 at over 75,000 residents. Where does it go from here? Population loss and/or the loss of businesses would not be a good image for the community as it tries to chart a bright future.

Compared to other Chicago suburbs, Schaumburg is likely in good shape. At the same time, the growth and status of the past and present does not have to continue amid new social pressures and internal decisions. If Schaumburg is advertising in order to attract businesses, perhaps this hints at broader issues across suburbs: can they all succeed in what may be a challenging several year period?

“NYC isn’t dead”…for the wealthiest

A look at the ten most expensive properties sold in the United States in 2020 highlights the presence of New York City properties on the list:

Google Street View image of 220 Central Park South (September 2020)

By the end of September, the volume of Manhattan co-op and condo sales was down 43% year over year, according to a report by Douglas Elliman, as sellers held back from listing their apartments and buyers increasingly gravitated toward the suburbs

Of the top 10 national sales compiled by Jonathan Miller, president and chief executive officer of Miller Samuel appraisers, five were in 220 Central Park South, a new luxury tower on Central Park designed by architects at Robert A.M. Stern

Another trend from this year, namely rich people “fleeing” New York for Florida, didn’t manage to trickle up to the highest tier. Only two of this year’s top 10 sales were in Palm Beach; last year there were three…

Even the three Los Angeles entries diverge slightly from conventional 2020 narratives. Yes, the L.A. market is one of the few urban bright lights this year, with sales soaring and inventory hard to come by. But numbers at the very top are down from last year, when it notched four entries in the top 10, totaling $463 million. This year there were three, totaling $293 million.

The actions of the wealthiest homeowners matters not only because people often have an interest in what those who have lots of money do with all that money; it matters because these are people with clout and influence. If they are continuing to purchase in New York City – it is less clear how much time the owners would necessarily spend in the city – it is a sign of the importance of the city and the prospects for future development.

The optics of 2020 might not be favorable to the list above but the project and the trends were underway far ahead of COVID-19. In a very expensive land and housing market, purchasing a residence in one of the newest buildings and in such a location within Manhattan is an object of desire for some who have the resources to purchase such places. While a figure later in the article notes that the total price for the properties on this list is lower than the price for the properties the year before, this may only allow the wealthiest to get into hot markets even more.

It may (or may not) be worth noting that five of the ten properties are in a tower in New York City while the other five properties are large homes on some land. On the whole, Americans as a whole tend to prefer or idealize single-family homes but the wealthiest in the United States and elsewhere may be more inclined to purchase large units in multi-unit buildings.

The new residential skyscrapers in Chicago continue to highlight capital flows and disparities

While reading reporting about skyscrapers going up in Chicago even during COVID-19, I continue to wonder: who is purchasing all of the residential units in times like these? Here is one example involving Chicago’s new third-tallest building.

Part of the Chicago skyline from East Jackson Drive – Google Maps

Located on a multilevel riverfront site at 363 E. Wacker Drive that belongs to the same Lakeshore East development as Aqua, Vista will house a 191-room hotel and 393 condominiums once it’s complete in the third quarter of next year.

For now, as COVID-19 rages and office cubicles remain empty, the tower sends the upbeat message that downtown has a future, and it’s not just for the 1%. Vista’s ground-level amenities will benefit ordinary citizens as well as those who can afford the tower’s condos, which start at around $1 million.

The entry point of $1 million means that the clientele for such a building is pretty restricted. The Chicago area is not a superheated real estate market like San Francisco or Manhattan or several other coastal cities yet tall residential buildings are meant for a select few.

On the other hand, another skyscraper project in Chicago might move to make their residential units available for rent rather than purchase:

The biggest Chicago skyscraper to have construction halted by the coronavirus pandemic could be revived in 2021 — as apartments instead of condos.

Unit layouts are being redesigned at 1000M, the Helmut Jahn-designed condo tower on South Michigan Avenue, in an effort to refinance the project and resume construction next year, “primarily as a rental project.”…

It was the largest condo development by unit count, at 421 units, launched in Chicago since the Great Recession all but shut down construction of condos in the city for several years. At 832 feet, it also would be the tallest Jahn-designed building in Chicago, where the German-born architect is based.

With rentals being in demand, this makes some sense in order to help get the project started again. At the same time, these rental units will not come cheap.

All of this residential construction suggests there is a lot of capital continuing to flow for prestigious building projects in desirable locations. COVID-19 might be a bit of a speed bump – whose impact will continue to be determined by its length – but big lenders, developers, and buyers still have an appetite for these prestigious residential units.

Focusing on the construction of these units can both help the public pay attention to where the money is really going as well as continue to highlight the disparities in development money by location. It is hard not to report on these new tall structures; they require a lot of effort and resources and will be part of a celebrated skyline for decades. Yet, within Chicago, as the skyscrapers continue to rise for the corporations and residents with plenty of resources, needs for housing and other development are very present elsewhere.

Ghost towns of the Midwest, sand dunes edition

While Americans might associate ghost towns with the West, communities elsewhere across the United States have also disappeared. Here is the case of one such community on the eastern shore of Lake Michigan:

Silver Lake, Michigan

A small town once stood on the riverbank, where the river bends before ending its journey at the lake. For several decades in the mid-1800s, the village of Singapore was a humming lumber and shipbuilding hub. Residents and sawmill workers processed the plentiful white pine trees of western Michigan, then loaded them onto schooners for Chicago and Milwaukee.

The founders of Singapore had big dreams. They envisioned their town, then located north of present-day Saugatuck on the southwestern Michigan shore, as the next important Midwestern city, rivaling the growing metropolises in Illinois and Wisconsin…

After the lumber trade waned and a series of fires roared through the area, leading to the destruction of many of Singapore’s houses, the town was abandoned. By 1875, according to Eric Gollannek, executive director of the Saugatuck-Douglas Historical Society, the lumber boom was over, the mills were dismantled and moved to St. Ignace, Michigan, jobs dried up and the village slowly disappeared.

Eventually, what was left of Singapore was buried beneath the sand.

The sand dunes of Lake Michigan are an underrated natural feature. Since I have seen them on top of a house or two at Silver Lake (see the image above), it is not surprising that they cover the remains of a town.

I would guess that the early decades of Midwest settlement is a ripe time for finding ghost towns or abandoned communities. Many early settlers had dreams that their town would prosper in the future. But, time, outside social forces, and internal decisions helped seal the fate of some places while others thrived.

The possible forces at work are numerous. Perhaps it was the changing of transportation technology; the coming of the railroad, the slowdown or rise in traffic along a road, shifting harbors and waterways. Perhaps it was the consolidation of residents or trading activity in one community as opposed to another. Perhaps it was the presence of a particular industry or the the decline of an industry. Ecological conditions can change as well, ranging from droughts to major storms to fires to human activity that changes the landscape in significant ways.

Today, it is hard to imagine that established communities of a particular size could disappear. Yet, history suggests this has happened before. It may not take sand dunes or cutting down many trees (something that happened all around Lake Michigan) but the communities of today are not guaranteed to be the communities of the future.

What it means if a 20% rent price drop in Manhattan may be enough to reverse the market

With rents in Manhattan and San Francisco declining, how much will prices drop before demand increases? Perhaps 20% in Manhattan:

Photo by Pixabay on Pexels.com

A big drop in rental prices appears to be luring new, younger renters back to the city, even as office workers and wealthy New Yorkers remain in the suburbs and more rural resort towns. New leases in Manhattan increased 33% in October, making it the best October in 12 years, according to a report from Douglas Elliman and Miller Samuel.

The typical rent paid for apartments including discounts, or the median net effective rent, fell 19% from a year ago to $2,868 — a record decline. Smaller apartments, which cater to younger renters, fell the most. The price of studio apartments was down 21%, and one-bedroom apartment prices dropped 19%.

“I think we’re at a tipping point where the consumer starts coming back to the city,” said Jonathan Miller, CEO of Miller Samuel. “Sellers are slowly recalibrating what the values are, and the lower pricing is beginning to bring more people in.”…

And with the average rental price for a one-bedroom apartment still over $3,200 — more than twice the national average — Manhattan is still far from affordable for many young renters. Still, experts say the October increases could begin a long, slow recovery for the nation’s largest real estate market.

Manhattan is an important real estate market. It is part of the leading city in the United States and one of the most important global cities in the world. Housing is desirable there for multiple reasons.

But, Manhattan’s prices are unusual. There is a limited amount of land. Few other places in the United States have a similar local economy and cultural scene. Prices will remain high because they have been high for a while. There is a lot of capital tied up in buildings and land.

Thus, it is hard to know what to do with an article like this in regards to housing. The suggestion is a 20% price drop may be enough to attract new renters who are interested in Manhattan and have the resources to move in. Most people, and perhaps even most residents of the New York City region, do not have the interest or the resources. At the least, this is a reminder that real estate is a very local affair.

But, at the same time, housing is a city-wide, region-wide, and a national concern. The Manhattan market has unique traits but many people face housing challenges, particularly during COVID-19. Manhattan may be a bellwether or it could be more of a curiosity of how a small slice of people think about housing. The bigger question from a story like this could be: have housing costs dropped elsewhere in the United States? Since few markets are like Manhattan, perhaps not. How does this affect people? What are the long-term housing price prospects across different kinds of markets and for more typical residents?

Co-presenting at the Wheaton Public Library on Race in Illinois: From Southern Counties to Northern Suburbs

With DePaul professor Dr. Caroline Kisiel, I will be presenting via Zoom tomorrow night at the Wheaton Public Library:

Wheaton Public Library on Instagram

Register ahead of time for the Zoom webinar here.

My presentation will largely draw on the 2019 article I co-authored with David Malone titled “Race, Town, and Gown: A White Christian College and a White Suburb Address Race.

Constructing a New Urbanist movie town outside of Atlanta

Going up around a one-stop movie filming and production facility outside of Atlanta is a New Urbanist community named Trilith.

Google Maps

When the British film studio company Pinewood opened a production facility outside Atlanta in 2014, it framed the venture as a one-stop-shop alternative to the mature but spatially fragmented system in Hollywood. With a high-tech media center, soundstages, offices, prop houses, and set builders all colocated, Pinewood Atlanta was a turnkey space for filming. An early relationship with Marvel Studios led to a steady stream of big-budget superhero movies such as Ant Man and Captain America: Civil War, and Pinewood Atlanta quickly became a contender in the film business.

But some of its local investors wanted it to be more than just a production facility. They wanted the entire business to have a place at the studios, with development of new shows happening where they’d eventually be filmed, and local workers able to easily commute to jobs on the site, about 20 miles south of Atlanta. So they decided to build a town…

Pinewood recently left the project, amiably, and the studio and town are now fully in the hands of local founders, who have accelerated Trilith’s development, which broke ground two years ago. Planned with New Urbanist design principles, Trilith is a dense, pedestrian-oriented, mixed-use village, with a commercial town center, more than half of its area dedicated to green space and forest, and room for an eventual population of 5,000. About 500 people are currently living in the town, which is planned to have a total of 1,400 townhomes, apartments, cohousing units, and 500-square-foot “microhomes.” Housing is available to rent or buy, and Trilith’s developers say it’s luring residents from within the film industry as well as people from other walks of life…

Parker says the town was inspired by Seaside, a New Urbanist community in Florida famous for its use as the setting of The Truman Show. Trilith was designed by the Atlanta-based planning firm Lew Oliver, with homes designed and built by companies such as 1023 Construction and Brightwater Homes. Parker says the design was intended to appeal to young creatives, with an emphasis on wellness and access to the outdoors, but with the kinds of amenities people want in a town. The first of the town’s restaurants recently opened, and 11 more are in the works. A 60,000-square-foot fitness studio was recently completed, and a K-12 school is already open.

Three quick thoughts:

  1. It will be interesting to see how the relationship between the film industry and the town continues. On one hand, it could create a regular level of business and residents. On the other hand, not everyone in the community will be involved and interests could collide. Will this be like other suburbs and communities that rely heavily on one industry or sector (with both the advantages and disadvantages that come with this)?
  2. Later portions of the article discuss the diversity of residents in the community. Seaside looks good on film but has been more of a wealthy community than one that lives up to its New Urbanist principles of having mixed-income housing and residents. Will the desirability of such a community drive up housing costs? Will the connection to the film industry make it more difficult to others to move in?
  3. Does this provide a new model for numerous industries? For example, prior to COVID-19 big tech firms had constructed large, all-encompassing headquarters intended in part to help keep workers close. Or, large office buildings in central areas help consolidate workers and multiple sectors. But, perhaps this New Urbanist vision provides an alternative: more space in the suburbs, film facilities, other opportunities in the town outside of film.