Chicago looks at 63 ways to raise revenue

Following up on a report this week that says American cities are facing falling revenues, a new report for the City of Chicago looks at 63 different ways to raise revenue. According to the powers that be, some of the ideas have merit while other are “non-starters”:

In a statement Tuesday afternoon, Emanuel — who must present his budget plan next month — said several of Ferguson’s ideas are “promising” and will be given serious consideration. But the mayor said “raising property taxes, income taxes or the sales taxes is off the table. And asking drivers on Lake Shore Drive to pay a toll is also a non-starter.”…

Ferguson’s report also suggests imposing a $5 London-style congestion fee on for driving in the downtown area during rush hours. The fee would be collected in an area bounded roughly from North Avenue south to the Stevenson Expressway, and from Halsted Street east to Lake Michigan, although it extends as far west as Ashland Avenue between Lake Street and the Eisenhower Expressway…

In addition, Ferguson also suggests creating a 1 percent Chicago city income tax, much as New York City imposes, for new revenues of $500 million per year. In suggesting the tax, Ferguson’s report points out that the State of Illinois increased its income tax to 5 percent last year, but froze the amount distributed to municipal governments, thus effectively reducing the percentage of the tax that cities receive…

Ferguson also suggests eliminating the city’s more than 160 Tax Increment Financing Districts, where property tax dollars for schools, parks, and other taxing districts are frozen for at least 23 years, so that all property tax increases afterward to go into a fund to improve struggling neighborhoods. Although TIF districts generate about $500 million a year, Ferguson says $100 million in new revenues could actually be generated by eliminating them and returning all property tax revenues to the city and other taxing bodies.

It would be interesting to see look at this document to see how many of the proposed options are already in place in other cities. Additionally, how many current revenue generating schemes in Chicago are used elsewhere? Why not learn from the “best practices” (or “necessary practices”) in place elsewhere?

A number of these ideas would generate significant conversations/controversies. There a number of people who have suggested congestion pricing for big cities but actually putting this into practice and selling it to the car-hungry American public is a difficult task. The smaller options, like changing the garbage system, would probably prove more popular or at least easier to implement but they probably wouldn’t have the kind of financial impact necessary to help the city fight a $635.7 million budget shortfall.

Mayor Rahm Emanuel may have impressed people so far but can he survive this upcoming budget battle?

American cities continue to face falling revenues

A new report shows that American cities continue to face falling revenues, leading to changes in city budgets and governments:

Belt-tightening continued in cities across the United States in 2011, as fiscal crunches forced local governments to cut back. City revenue is projected to decline 2.3 percent by the end of 2011, according to a new report from the National League of Cities released Tuesday, marking the fifth straight year of declines.

One of the main factors contributing to the decline in revenue is a drop in property tax collections, which are projected to fall by 3.7 percent in 2011, the second straight year of declines. Last year’s drop of 2.0 percent was the first year-over-year decline in city property tax revenue in 15 years. To make up for the shortfalls, cities cut jobs, canceled infrastructure projects, cuts services such as libraries and parks and recreation programs and modified health care benefits for employees.

Hiring freezes were the most common personnel-related cuts made in 2011. Half of cities reported salary reductions or freezes and nearly one in three reported laying off employees or reducing health care benefits. Other actions included early retirements and furloughs.

Even in good times, cities are often concerned with boosting property and sales tax revenues. Commercial and residential development proposals are often scrutinized to see how much they might bring into local coffers versus how they might require in new services. But in times of economic crisis, municipalities and residents, worried about possible rises in property taxes, look even more closely at this issue. Additionally, it is more difficult to obtain federal or state monies when those governments have their own budget concerns.

The belt-tightening will continue unless the economy posts a remarkable reversal. In the meantime, cities big and small, from the size of Chicago and a looming $600 million budget shortfall to smaller suburbs, will continue to look for ways to maximize revenues. In many places, this will lead to some interesting conversations about whether the local government should dig itself out of the mess or whether the residents should help makeup some of the loss of revenues.

“Zoning bigots” holding Americans back from how they really want to live?

It is not too often that one sees opinion pieces about the current state of zoning in America. But here is some provocative commentary (“zoning bigots”?) based on zoning in the Los Angeles area:

You could make a decent case that the campaign to harass and remove property owners is no less bigoted than Mayor Mahool’s quarantine proposal. Although blacks, whites, and Latinos have all been targeted for nuisance abatement raids, these folks share one characteristic: They don’t meet the standards of respectability set by the political class and large urban landowners. In some cases the county’s lifestyle demands shade into bias on religious grounds. Oscar Castaneda, a mechanic and Seventh Day Adventist minister who was ordered to tear down his entire property, lives in the high desert because his faith impels him to a rural, self-sufficient life.

Los Angeles zoning practice is bigoted in other ways that are often overt. A city (not county) ordinance preventing residents from keeping more than one rooster on a property is clearly aimed at Latino homeowners. A maze of restrictions on convenience stores and fast food joints applies in South L.A. but not in tonier areas. During the jihad against “McMansions” a few years ago, the popular term for large properties was “Persian Palaces”—a swipe at L.A.’s Iranian-American community.

“There’s definitely an attempt to squeeze out of Angelenos the very things that make them Angelenos and not New Yorkers or Bostonians,” says Chapman University urban theorist Joel Kotkin. “There are two forces at work: One is the effort to re-engineer people into wards of the state. The other is urban land interests who want to force people to live in ways they don’t want to live.”

Or to live somewhere else. Many of the Antelope Valley homeowners we spoke with for a recent reason.tv report have given up the struggle and are planning to leave California. What Antonovich (who refused requests for an interview) has in mind for their vacated properties is not clear. Educated guesses include a plan for massive wind-power generation and a scheme to turn the half-horse town of Palmdale into a high-density, smart-growth hub for the California high-speed rail project. If you know Palmdale you know that the notion of turning it into a hipster paradise would be funny—except that this pipe dream is destroying the lives of real people. They’re just not the right sort of people.

A few thoughts while trying to sort out this argument:

1. Good point: zoning can be a tool used by the powerful (politicians, those with money, etc.) to control development. The political economy model in urban sociology is based on this idea: the elite are able to push development that helps make them money.

2. Odd point: this argument about “bigoted zoning” is somewhat different from a more common argument about “exclusionary zoning.” This argument is predicated on the idea that zoning takes away the rights of all individuals, regardless of race/ethnicity or social class. It is simply a tool of the upper classes, interestingly, a Marxist type argument. Exclusionary zoning, the subject of a number of court cases, argues that zoning takes place to exclude certain groups of people, typically minorities and the lower class from suburbs. So all individuals who are not the upper class are being discriminated against in this Marxist/populist argument?

3. Somewhat intriguing argument: these zoning guidelines limit people from doing what they really want to do, like buy McMansions and raise chickens. In this line of thinking, Americans all want the suburban lifestyle where their home is their castle and they have a little bit of land to play around with. The government is a bogeyman, trying to force people into denser developments (like nice New Urbanist developments or high-rises downtown?) and generally trying to squelch suburban life.

This argument misses some of why the suburbs even exist in the United States today. On one hand, there is some cultural impetus to this all: from the beginning, Americans have had debates about urban vs. rural life, the Thomas Jefferson’s who wanted “gentlemen farmers” versus the Alexander Hamilton’s who wanted to live in thriving cities. Americans like open space and retained the British emphasis on property rights. This cultural spirit is still with us today: we love cars and our big homes.

However, this was all made possible and encouraged by some other factors. To start, developing technologies, from the railroad to the electric streetcar to the automobile, opened up areas for development. More importantly, developers and businessmen saw these transportation lines and the adjacent land as opportunities so they sold homes and land to make money. Then, particularly between the 1930s and 1960s, the government made a concerted push to promote the suburban lifestyle, privileging highway construction and longer-term mortgages that helped make the suburban dream possible. Without this profit seeking and government support, would the suburbs have still happened? Perhaps. But not likely to the scale we know now.

To argue now that generally government is opposed to the suburban life is silly. Most of the policies, even during this time of economic crisis, have been about maintaining the suburban middle-class lifestyle: limiting their tax burden, helping them keep their homes, ensuring a quality education and a college degree, etc. Yes, this current administration has suggested some new ideas like high-speed rail but this isn’t a total assault on the suburbs. Indeed, it would be tough for any party right now to assault the suburbs too strongly: they probably can’t win without suburban voters, particularly independents.

4. Flip this around: what might happen if there is no zoning? Does this really empower individual land owners? Zoning helps ensure that certain uses are not next to other uses. For example, zoning for a suburban subdivision typically means that a single-family home will not end up next to a coal power plant. Or a school next to a sewage treatment plant. Yes, zoning can be draconian and it can be used by people in power but it can also be used well.

There are cities that have less or no zoning. Houston is a classic example in urban sociology and as one might suspect, its development patterns look a bit different than other major cities.

Is no zoning really the answer? While homeowners might not like some of the plans in the Los Angeles region, doesn’t it also protect them at other times? In a world with no zoning, wouldn’t the more powerful actors almost always win out over the average homeowner? How would homeowners protect themselves from other homeowners?

One way to retain zoning but turn it toward different ends would be for citizens to get themselves on zoning boards and then starting voting how they like. Zoning boards may not be flashy and it can be difficult to get on them, particularly in places where it is about political connections, but this would be the place to start fighting back if one was inclined to do so.

The “suburban depression”

The ongoing economic crisis has hit a lot of sectors of American society. Some new data suggests the economic crisis has particularly hit the suburbs, the proverbial “land of milk and honey” in American life:

There has not been so large a portion of Americans in poverty since 1993. But this time the growth in poverty is different, hitting whites and suburbia harder than it did during the early 1990s slump…

The suburban poverty rate is 11.8 percent, a level not seen since 1967…

A key factor in the rise in suburban poverty may be the fact that the housing market has played such a central role in the economic slump.

Many suburbs have seen a vast amount of wealth erased by declining housing markets and mortgage foreclosures, resulting in a great deal of economic dislocation. Since white Americans are more likely to own homes than African Americans, this could also explain why whites have fared worse than they did in the 1990s while African Americans have fared better.

The interpretation here is that with homes losing a significant portion of their value, an investment vehicle that many suburbanites had relied on has proven to be a hindrance instead. I would want to see more data: how does the growth of the poverty rate in the suburbs compare to cities and rural areas? If you look at the Census 2010 figures, the poverty rate for central cities is 19.7% (14.8% for metropolitan regions) and it is 16.5% outside of metropolitan areas. While falling housing prices may be part of the problem, what about jobs – are a higher percentage of lost jobs suburban jobs? I haven’t seen anyone write about this jobs link.

This data also affects two other larger ideas narratives about suburbs:

1. Life in the suburbs is not supposed to get worse; rather, it is supposed to always get better. Have we simply reached the point where the standard of living and incomes simply can’t rise much more?

2. There is evidence from recent years that more poor people live in the suburbs than in cities. While the percentages of poor people are lower in the suburbs, the absolute numbers are higher. This is part of a growing trend: the suburbs aren’t just (and never totally were) where wealthy whites can live.

Comprehending the office and retail space in an edge city

After explaining the concept of an edge city to my American Suburbanization class, a discussion arose about how much space these places really have. When defining the edge city, Joel Garreau had these as two criteria (out of five total): “has five million square feet or more of leasable office space” and “has 600,000 square feet or more of leasable retail space.” This is a lot of space, as much as a smaller big city, but can still be hard to understand.

For example, there is much more commercial and retail space in the exemplar of the edge city: Tysons Corner, Virginia.

Around 2007 Tysons Corner had 25,599,065 square feet (2,378,231.0 m2) of office space, 1,072,874 square feet (99,673.3 m2) of industrial/flex space, 4,054,096 square feet (376,637.8 m2) of retail space, and 2,551,579 square feet (237,049.4 m2) of hotel space. Therefore Tysons Corner has a grand total of 33,278,014 square feet (3,091,628.7 m2) of commercial space.

How do we put this in more manageable terms?

1. Garreau compares this suburban space to the office and retail space in existing cities. The 5 million square feet of office space “is more than downtown Memphis.” While we may have traditionally associated this much office and retail space only with the downtowns of big cities, now concentrations of this space can be found right in the middle of the suburbs. This is unusual because suburbs are often portrayed as bedroom suburbs, places like people live and sleep but have to work elsewhere.

2. Compare this space to large buildings. The Willis (Sears) Tower in Chicago has 4.56 million square feet of space, 3.81 million rentable. So an edge city would have at least slightly more space this notable office building though perhaps it is difficult to visualize this space since it is a skyscraper and each floor seems smaller. An ever bigger building, The Pentagon, has 6.5 million square feet, more than the lower threshold for an edge city. Therefore, Tysons Corner has nearly 4 Pentagons of office space. Comparing this edge city space to shopping malls, Woodfield Mall in Schaumburg, Illinois (an edge city itself) has 2.7 million square feet while the Mall of America has a total of 4.2 million square feet.

3. We could measure edge cities in terms of square miles or acres and then compare to bigger cities. Square miles make some sense: Tysons Corner is 4.9 square miles while Memphis, a city Garreau says has downtown space similar to that of an edge city, is 302.3 square miles (on land). Acres are a little harder to interpret: a common suburban house lot is an eighth of an acre, a square mile has 640 acres (hence the dividing of the American frontier into 160 and 640 acre plots), and an acre has roughly 43,500 square feet. Then, an edge city with 5 million square feet of office space has about 115 acres of office space. Perhaps acres are best left to farmers.

In the end, I think Garreau made the right comparison to demonstrate the office and retail space within an edge city: we have some ideas about the size of downtowns of smaller big cities and the image of this amount of space existing in the suburbs is jarring.

Where do Washington D.C. metro area residents find diversity?

This could be an interesting research question as put by the Washington Post: “where do you experience diversity?” The question comes amidst recent changes in the Washington D.C. metropolitan area:

We all know how diverse our region is; the latest census shows that Washington is one of the eight major metropolitan areas that have become majority minority in the past decade.

But how do those statistics translate into actual diversity? Where are the places in our region where people of all races, creeds, colors and nationalities mix most freely? Where are the markets, playing fields, dog parks, theaters, shopping malls that attract the most diverse crowds? And what does diversity even mean to each of us?

And there is even a reference to Elijah Anderson’s recent concept of the “cosmopolitan canopy,” places where people of different races and social classes mingle.

Several thoughts come to mind:

1. What exactly do they mean when they ask about people “mix[ing] most freely”? Does this mean different people are simply in the same place, like a baseball stadium or a shopping mall, or they are actually interacting?

2. Several studies from earlier this year looked at segregation within American cities. In one study, Washington D.C. is the 20th most segregated city in the country. The dissimilarity score of 61.0 roughly means that 61% of the population would have to move for there to be an equal distribution of blacks and whites in the region. While there are cities that certainly have worse scores (Chicago, New York City, and Milwaukee are the top three), this isn’t necessarily good. The region may be majority-minority but that doesn’t mean that people live near each other.

2a. Here are some of the other US cities that became majority-minority by 2010: “Along with Washington, the regions surrounding New York, San Diego, Las Vegas and Memphis have become majority-minority since 2000. Non-Hispanic whites are a minority in 22 of the country’s 100-biggest urban areas.”

3. I wonder if this is kind of a silly question because it doesn’t get at the real issue: residential segregation. It is better to have people of different backgrounds mixing in public or private spaces than to not have this happen. But the real issue is that people of different races tend not to live near each other in the United States. When presented with the option of living with other races within the same neighborhood, whites opt out more often than not.

4. What will the newspaper do with this data regarding where people find diversity? Since it won’t be a representative sample (as a voluntary, online poll), I suspect they will profile some of these places to try to understand why they attract different groups of people.

Lombard mosque approved by DuPage County Board

I’ve been tracking this story in recent months (earlier stories here, here, and here) and it looks like we have a resolution: the DuPage County Board approved plans for a mosque in unincorporated Lombard.

By a 12-4 vote, board members supported revised plans from the Muslim Community Association of Western Suburbs for the Pin Oak Community Center. It will be built just east of Interstate Highway 355, at the southwest corner of Roosevelt Road and Lawler Avenue…

The plan had been controversial because of residents’ objections about traffic down Lawler Avenue into their neighborhood.

But the plan was modified to include an exit onto Roosevelt Road and restrictions on two access drives on Lawler. Also, the association will widen Lawler to three lanes and extend the eastbound lane on Roosevelt Road…

In July, board members deferred their vote on the Pin Oak proposal, but they did deny the group’s plan for a roughly 50-foot-tall dome on the property. The building will not be permitted to exceed 36 feet in height.

It would be interesting to hear the rationale of the 4 board members who voted against this.

The article suggests the controversy about this mosque was due to traffic concerns and the height of the building, typical NIMBY concerns that might be brought up with proposals for any religious structure or any non-religious, non-residential structure. I hope there is a sociologist (or other social scientist) working on testing whether proposals for mosques draw special “NIMBY” attention.

Sears appliance circular does strange things to the Chicago skyline

It is not too unusual for cities to be misrepresented in movies or television shows but this takes place in other areas as well. A Sears advertising circular from Friday, September 9, takes some interesting liberties with the Chicago skyline. Take a look:

Perhaps this looks fairly standard: the Sears logo in the top left, a “big price drop” balloon coming down from the sky in the upper right corner, six appliances on sale, and then a picture of the Chicago skyline at the bottom. While this may be just pandering to this metropolitan region, it also hints at Sears’ history: the first Sears store opened in Chicago in 1925 and their headquarters are still in the region.

But if you look more closely at the skyline picture, two strange things pop up. The first: a green lawn. Here is a close-up of the bottom left of the circular:

This green view is pretty much impossible. To get a wide view of the skyline from this angle, one needs to be at the Adler Planetarium promontory. From there, one needs to stand either on a hill sloping down, meaning the lawn is difficult to get into the shot, or from the concrete steps or walkway that go around this point. Plus, the grass is pretty high here relative to the height of the buildings. So why include the grass? It would make some sense if the circular was advertising lawn mowers – but it is not. Perhaps the “big price drop” balloon needs a safe place to land. Or the circular needs a touch of pleasing green. Or a focus group suggested the green lawn invokes images of home life, the need for beautiful appliances, and the American Dream.

In addition to the strange grass, there is something odd going on at the right (east) side of the skyline. Here is a closer view:

Even looking closely at the circular, I have a hard time figuring out what is going on here. It appears to be a hill sloping up from the lake with some buildings on the hill. Why was this added to the picture? I really have no good idea – to fill up space?

Here is what the view of the Chicago skyline looks like from my own camera near Adler Planetarium, sans verdant lawn or black hill:

If this was the starting point for the Sears image, one could crop and play with it in such a way that the added blue from Lake Michigan could be removed but adding the lawn and hill is not necessary. It would still be a very nice and useful shot.

Keeping the poor at bay in both suburbs and urban developments

This overview of Battery Park City, a New York City development located near Ground Zero, suggests the development has kept the poor away in the same way as suburbs:

Conceived originally by David Rockefeller, then vice-chair of Chase Manhattan, in the late 1950s and early 1960s, the development was essentially built to house finance executives and other white-collar workers during a period in which those sorts of people were escaping the city for a growing number of suburbs. Literally, as well as metaphorically, Battery Park City crushed the docks that were the only vestige of working-class industry in lower Manhattan, constructed atop landfill that was tacked onto Manhattan with the specific purpose of advancing New York’s financial sector.

It was as physically isolated as it was demographically. Separated from the rest of the city, connected only by pedestrian bridges—unless one was willing to face West Street, more aptly described as the West Side Highway. There were guards at the edge of Battery Park City, and its parks closed to the public at night. In a similar fashion, much of the “public” space was established where it was either difficult or intimidating for non-residents or non-financial workers to get to…

Lower Manhattan is not what is was when Battery Park City was conceived and built. These days, much of the area around it is fancy, too.

“The people across the street are just as elite as they [Battery City residents],” told me.

There are no longer any guards because “you don’t need them anymore, because just as in the suburbs people don’t have fences around their yards, you don’t need those barricades because there’s nobody poor nearby. So instead of walls, you’re using distance.”

As the nearby area gentrified, Battery Park residents no longer had to fear who might enter their development as nearby residents were similar to them.

As a broader question, is a neighborhood like this more desirable for critics of suburbs even though it is still a wealthy enclave that is separated from lower-class neighborhoods? These city dwellers may have more contact with people unlike them on a day-to-day basis but ultimately, some of the issues that are said to plague suburbia such as homogeneity can also be found in urban neighborhoods. Is residential segregation in the city equal to, better than, or worse than residential segregation in the suburbs?

Searching for a new vision for Navy Pier

Those in charge of Navy Pier have been searching for some years now for a new plan that will enhance this popular space:

In 2006, pier officials unveiled plans for a glitzy theme park-style remake of the 3,000-foot lakefront icon. The design (left) was tacky and backward-looking, relying on such gimmicks as a roller coaster and floating parking garages disguised as ships. We should all be thankful it was shot down.

Now, five years later, pier officials appear to have raised their sights and rightly recognized that Navy Pier is primarily a public space, not a shopping mall by the sea.

As they announced yesterday, they’re embarking on an international search for teams of architects and other designers to give the pier’s public spaces a new look.

As a long-range framework plan by the Chicago office of Gensler makes clear (above), Navy Pier 2.0 is not going to be one of those cutesy, festival marketplaces–a halfway house for suburbanites easing their way into the big, bad city. Inspired by the example of Millennium Park, it will strive for something more aesthetically daring.

This sounds like a good change of course: make sure that Navy Pier is a place worthy of a world class city like Chicago rather than developing a kitschy tourist trap. I would be interested, however, in knowing which “cutesy, festival marketplaces” that Kamin is referring to. Places like Reading Market Terminal in Philadelphia? Faneuil Hall Marketplace in Boston? The Original Farmers Market in Los Angeles? On what exactly place should Navy Pier be modeled?

I was down at Navy Pier a few weeks on a beautiful August night in Chicago. Having not been there for a few years, I was pleasantly surprised: the tourist aspect wasn’t too strong (granted, we didn’t go inside the shopping area at the front), the Ferris Wheel is an interesting attraction (with some good sunset views), the combination of the Chicago Shakespeare Theater and the Smith Museum of Stained Glass Windows gives the space some higher culture, and the weather, sunset, and happy but peaceful crowds made the stroll to the end of the pier quite enjoyable. Here was the view looking to the northwest:

Navy Pier Sunset Aug 2011

As many sociologists would argue, places like Navy Pier can and should be valuable public spaces that need to be available to all people.