Category Archives: Places

Chicago’s 29 year old white flight reassurance program has paid 5 homeowners

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A Chicago program to help protect homeowners on the Northwest side has collected millions of dollars since 1988 and only been used 5 times:

The Northwest Home Equity Assurance Program was enacted via public referendum in 1988 in a bid to prevent white flight in a handful of bungalow belt neighborhoods. A tax-based fund was created to guarantee homeowners within its boundaries they would at least get paid the assessed value of their houses when they sold them.

In the years since, every one of the roughly 48,000 homes within its boundaries has kicked in a few extra dollars each year on its property tax bills to the equity fund. As the Chicago Tribune reported in May, the program has paid just five claims by homeowners who couldn’t sell their houses for the assessed value while amassing $9.57 million in two accounts…

Bucaro, who like other board members receives no salary, cautioned against starting to make home loans. The organization has neither the expertise nor the staff to figure out how much money it’s appropriate to lend people or to assess the risk of such loans…

Bucaro said the Northwest Home Equity Assurance Program has somewhat been a victim of the housing success in the neighborhoods it covers, since most people simply get more than the assessed value of their homes when they sell. Maybe the program has outlived its usefulness as a bulwark against white flight, he said.

I do not know the details of this program but it sounds like the money was simply not necessary. Even as Chicago still feared white flight in the 1980s – and the decades after World War II led to a significant population decrease in the city – the home prices in these neighborhoods did not fall. Even as numerous Chicago neighborhoods changed from white to black after 1950, the Northwest side did not. The neighborhoods in this area are still primarily white (though the Latino population has grown).

One ongoing issue is what will happen to this money but another is when the city of Chicago will officially put an end to a white flight deterrence program.

Almost all suburban residents’ concerns about redevelopment expressed in one meeting

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Naperville is pursuing a redevelopment project just south of the downtown train station and a recent public input meeting provided almost all the typical suburban concerns about redevelopment:

Land use and traffic are emerging as top concerns about redevelopment plans for 5th Avenue near the Naperville Metra station.

But close behind are issues of stormwater, green space, pedestrian access, the commuter experience and parking…

Promises to take time understanding and synthesizing resident wants and concerns seemed to only somewhat satisfy residents at Ryan Companies’ fourth group input session Friday afternoon. Some who attended said they want very little to be built on the land, which they see as a solution to flooding, traffic congestion and a lack of nearby park space.

“I don’t want high density,” neighbor Dana Aldrich said. “Our schools are already crowded.”

These are all common concerns. Too much traffic. Water issues. Parking. A desire for more green space. The city or developer not taking the concerns of residents seriously. Not increasing the burden on local services (and presumably property taxes), particularly schools. The only thing missing? The suggestion that property taxes will be negatively affected. Given this particular location and wealthy community, it is unlikely the proposed project would reduce property values – but realities do not always stop suburban residents from raising this specter.

It is also interesting to consider how suburban governments can proceed if residents tend to raise the same concerns almost regardless of the project. Something is likely to be done with this land since a good argument could be made that it is not serving the community as well as it might. (Redevelopment can incur new costs but it can also generate new tax revenues.) Development can be tweaked to try to assuage concerns. However, at some point, community leaders may just decide to override residents’ concerns. Perhaps the concerns are limited to a small number of vocal residents. Perhaps they would argue that as leaders they have the greater good of the community in mind.

The suburban life is so great because of…the big city

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A piece extolling the virtues of living in the suburbs of the Chicago region emphasizes that the suburbs provide easy access to the city of Chicago. There are 16 reasons provided for the greatness of the Chicago suburbs but only 1.5 of them actually highlight suburban institutions: Portillo’s began in Villa Park and Brookfield Zoo (1 of 2 zoos mentioned) opened in 1934. (I’m not sure what to do with the inclusion of Lake Michigan on the list: suburbanites can go to the lake in the suburbs – in three states even – or in the city.)

Since Americans prefer to live in small towns (see two recent posts on the topic here and here), a piece like this reinforces this definition of suburbs: geographic and cultural spaces where Americans can feel some qualities of small town life while still accessing the best of the big city.

We almost need a companion piece to this one titled something like: “The Reasons I Live in the Chicago Suburbs Even Though I Think Chicago Is So Great.” Are the suburbs only subordinate to the big city or do they have their own noteworthy amenities, attractions, and sights?

(Side note: if we are extolling the virtues of Chicago as suburbanites, I would add more to this list: access to two busy airports that offer reasonable prices to many destinations; great restaurants in Chicago (beyond pizza); all sorts of interesting neighborhoods whose atmospheres are difficult to duplicate in the suburbs; the roots of modern urban architecture; boating opportunities – river and lake – in an urban setting.)

(Second side note: this might serve as a great argument for increased metropolitan revenue sharing and metropolitan governance. If suburbanites love the city so much as use both its amenities and infrastructure, perhaps they should help pay for it more.)

Regulate McMansions in order to provide more housing

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Expecting population growth, Portland, Oregon is looking to limit house sizes:

The zoning changes are in the planning stages, and it won’t be until early next year that City Council will vote on whether to approve the changes.

New zoning laws could limit the size of homes, allowing single-family homes to be half the size of the lot. A standard lot in Portland’s inner eastside, which is primarily zoned for single-family homes, is 5,000 square feet. The proposed zoning code would limit that home to 2,500 square feet…

The city says it’s heard complaints over so-called “McMansions,” or homes that are much larger than the rest of the houses in a neighborhood…

The new zoning proposal also calls for increased flexibility in building duplexes, and on corner lots triplexes could be built. The city says increasing density will give families more options where to live.

This is an interesting approach to regulating McMansions. Rather than emphasize their poor architecture, excessive use of resources, or threat to neighborhood character, instead stress that the land could be used for more housing units. And because Portland has both stricter development boundaries regarding its metropolitan region as well as expectations for population growth, zoning for higher density could make sense. It would be interesting to see if this approach cuts down on criticism that property owners should be able to do what they want.

There are probably already a number of McMansions in the Portland area but it is interesting to contemplate a major city or region without any McMansions.

Chicago’s bid for Amazon HQ#2

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Here are a few details of what Chicago is offering Amazon to attract its second headquarters:

“Chicago offers unparalleled potential for future growth for businesses of all sizes and is the ideal place for Amazon to build its HQ2,” Emanuel said in the news release. “This bid will demonstrate to Amazon that Chicago has the talent, transportation and technology to help the company as it reaches new heights and continues to thrive for generations to come.”

Developers of four Chicago sites have provided details of their Amazon bids to the Tribune. Those sites are Lincoln Yards, the planned redevelopment of the former A. Finkl & Sons steel plant and other land along the Chicago River in Lincoln Park and Bucktown; the vacant old main post office along the river and Congress Parkway; 37 acres owned by broadcast company Tribune Media along the Chicago River near Chicago Avenue and Halsted Street; and the former Michael Reese Hospital site and nearby land in Bronzeville.

Chicago’s bid highlighted Chicago’s transportation network, talent pool, diverse economy, airport access, quality of life and proximity to research centers, according to the news release…

On Sept. 7, the day Seattle-based Amazon announced plans to invest $5 billion on creating a second headquarters, Emanuel told the Tribune the city planned to make a bid, and said he’d already spoken with Amazon CEO Jeff Bezos multiple times about bringing HQ2 to Chicago.

No word on the tax breaks and incentives the city and state are offering. I’m guessing they are plentiful.

At the same time, why wouldn’t Chicago have a good chance at this?

  1. Chicago is a top #10 global city.
  2. A central location. I know we are in the Internet/social media age and all but location still matters.
  3. A strong transportation network with multiple airports, rail connections, highways, and shipping.
  4. While the city may be losing residents, the region is still growing slightly and has plenty of workers.
  5. An wild card factor: if President Trump continues to use Chicago as an example of a (Democratic) city with problems, would Bezos and company like to stick it to him and show they are committed Chicago? Lots of cities can offer land and other incentives but Amazon could claim to be a significant part of turning Chicago around. (Whether a single headquarters could do this is another story but there are business considerations as well as political narratives at play here.)

Now to see how long it takes Amazon to announce a decision.

Naperville cannot easily rebrand and revive East Ogden Avenue

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Naperville is considering ways to improve East Ogden Avenue on the suburb’s northwest side:

The city, along with the Naperville Development Partnership and the Naperville Area Chamber of Commerce, sponsored an open house Tuesday to gather opinions on a streetscape renovation plan — and how to pay for it — from property owners, business owners and nearby residents.

Those who stopped by Tuesday morning said they liked elements of the proposed facelift for the stretch of Ogden between Washington Street and Naperville’s eastern border east of Naper Boulevard, but they worried the cost could prevent it from happening…

The idea is to update the look and feel of intersections and parkways along East Ogden Avenue so drivers know they’re in Naperville, shoppers find the area more inviting and businesses see it as primed for development, said Christine Jeffries, president of the Naperville Development Partnership…

Each [intersection] could receive some sort of sign for “Uptown Naperville,” some with large silver letters spelling out “NAPERVILLE” or referring to the city with a tall “N.”

As usual, there are questions about how to pay the $5 million the plan requires. That is one issue.

But, I would suggest there is a deeper issue: can these kinds of improvements truly lead to more development and a stronger sense of community? East Ogden Avenue is like many sizable suburban streets: it is fronted by numerous businesses (ranging from restaurants to auto care facilities to big box stores to home converted to offices), there are signs and buildings everywhere, and has numerous cut-outs to the road. To many, this look is not very attractive. These are the sorts of streetscapes that wealthier suburbs today try to avoid even if they were common several decades ago.

Does putting signs at intersections, putting in new landscaping, burying power lines, and rebranding the stretch “Uptown Naperville” really change what is there?  It may look nicer. It may tell people more clearly that they are in Naperville (God forbid that they are in Lisle). But, is this the true answer to a kind of development that is outdated and disliked? I am skeptical. Just contrast this stretch to downtown Naperville where a certain level of density and vibrancy leads to an exciting scene. The stretch on Ogden is too long, too broken up, devoid of attractive residential units (though they are often just behind the businesses), and difficult to connect.

An alternative approach might be this. Take one of the busier intersections, like the northeast corner of Washington and Ogden. There is a busy strip mall there with a Jewel grocery store and a Starbucks in the outlot. Why not build a mixed-use residential development just to the north or east. Make this small area a bit of a destination. Increase foot traffic (and who right now really wants to walk or bike along Ogden). Provide more anchors to a transient stretch. If this is successful, keep the idea moving to the east. This is a much longer project and it may not be possible to always put in attractive mixed-use buildings. Yet, there is demand for residential units in Naperville and units along Ogden are not that far from downtown or the downtown Metra station for those interested in commuting.

Did Peyton Manning really lead to the revival of Indianapolis?

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Lost within the Vice President’s protest of a protest at the Indianapolis Colts game was the retiring of Peyton Manning’s number. A great NFL quarterback – but also the savior of Indianapolis?

So now Indianapolis, with its compact downtown packed with hotels and restaurants, has had a Super Bowl—and the city performed so well the NFL might go back for a second one day. Indianapolis has won a Super Bowl. Indianapolis has had Final Fours, men’s and women’s. Indianapolis is even hip, with Manhattan-caliber restaurants like Bluebeard. On Saturday, with two big conventions and a Colts game in town, downtown was bursting at the seams; there was a line at St. Elmo’s. And a crowd of 10,000 to 12,000 people came to the city to watch the unveiling of the half-ton bronze statue for the man who, more than anyone, made it possible. GM Bill Polian always maintained Lucas Oil Stadium got built on the back of Peyton Manning, and the former two-term governor, Mitch Daniels, echoed that in remarks to the adoring crowd. Locals were giving Daniels a hard time about the cost of Lucas Oil Stadium early this century, and he said: “Just build it. Peyton will fill it.” Fitting, too, that the shiny upscale JW Marriott—representing boom times in the first 17 years of this century for $320-a-night rooms in ritzy downtown hotels—could be seen through the legs of the bronze number 18.

“He didn’t do it alone,” Letterman said. “But by God, look around us. He changed the skyline. This used to be a small town. This man has changed the skyline.”

Never wonder again about the effect of a winning quarterback on a city, a state, a region. It’s why every team that doesn’t have Aaron Rodgers or Matt Ryan spends so much time and money looking for one. As Browns owner Jimmy Haslam told me this summer: “There’s nothing that compares to it. You need a great starting pitcher, a great closer in baseball. You need a great point guard in basketball. But there’s not one position that comes anywhere close in sports, I don’t think, to quarterback in football. If you ask any one of our football people, they’d all say getting the quarterback right is number one. I can tell you this: It’s on the top of our list daily. Once you get that, the game’s much easier.”…

Manning got emotional talking to the crowd. The crowd—at least via signs from as far west as Hawaii, as far east as New Jersey—ladled love on him for an hour. “WE LOVE YOU MAN,” punctuated the affair three times from the crowd. A friend, Angie Six, was in the middle of it and texted me afterward: “Being a part of the crowd was a truly moving experience, enough to make this fan and those around me a little misty-eyed. Standing shoulder to shoulder in the shadow of Lucas Oil Stadium, I saw a diverse crowd of Colts fans: young, old, black, white, Hispanic, men, women. We are all Hoosiers, proud to claim Peyton as our own. When Peyton left to play for Denver, we watched heartbroken from afar. We never had a chance to say thank you. Today, we were able to express our gratitude in person, and the crowd was giddy. The woman behind me said, ‘What a great day to be a Colts fan.’”

I do not buy these two common arguments made by sportswriters and others:

(1) stars and championships can change the course of major cities and regions and

(2) sports truly bring together communities in ways that other spheres or events cannot.

Development and community-building does not work this way. Cleveland finally winning a championship does not change everything. The Bulls winning six championships in the 1990s followed by the White Sox, Blackhawks, and the Cubs (!) winning in the following decades has not solved the problems facing many poor neighborhoods. J.J. Watt raising a lot of money in response to hurricane relief in Houston is a drop in the bucket compared to what is needed to clean up and more importantly help Houston and other regions develop ways to be resilient in the face of disasters. Peyton Manning becoming the most recognized face of Indianapolis – even though he is from Mississippi and the team dumped him when they thought they could do better without him – is a nice story but there are plenty of players who do similar things (just not at one of the most visible positions in sports).

This does not mean that winning or doing good things in the community are bad. Indeed, following sports is worthwhile in the long run when your team finally wins and team and player efforts to help communities are much appreciated. But, cities and regions are much bigger than this. Cities and regions can recover from major teams moving away. (Does anyone make a serious case that Seattle lost big when losing the Supersonics or that San Diego is going to decline with the Chargers now in Los Angeles?) People will find other ways to spend their money and local officials will continue to use whatever tools they can – including sports – to promote economic development and boost the status of their community.

I would enjoy seeing academic research on the influence of players and teams on local communities. Even in places where the teams are intimately wedded to the common insider perceptions of what a place is – think the Pittsburgh Steelers – what influence does a team really have? Perhaps Indianapolis is a unique case of sports contributing to economic development because Manning’s stardom came alongside a thriving amateur sports scene (from high school basketball to the NCAA). But, can we also imagine an alternate universe Indianapolis where the city changes over several decades with no influence of major sports?

Ikea as suburban economic engine and sign of suburban change

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The wealthy Indianapolis suburb of Fishers now has an Ikea and the community hopes it spurs economic growth:

When Ikea opens Wednesday, it could alter the character of this northern suburb city from a drowsy residential nook into a dynamic regional shopping mecca. The giant Swedish furniture retailer’s gravitational pull has already attracted other businesses nearby and prompted major highway and road work.

Which is why city officials expect the residents to get along just fine with the new kid. For one thing, Ikea has cache, even if the store is three times the size of a Walmart. For another, Ikea’s guests are quiet and well-behaved. And most importantly, Ikea will contribute millions of dollars to the local economy in sales taxes and in-town spending at other stores…

But for Mayor Scott Fadness and the City Council, the wave of development is the cornerstone to expanding and defining the city. It follows a similarly aggressive flurry of construction just blocks away, across I-69 in downtown proper, now called the Nickel Plate District. Over a five-year period, the city encouraged residential and business development to get people living and working downtown. Two high-rent apartment buildings with first-floor restaurants and shops were built next to City Hall and several high-tech firms set up shop nearby, earning Fishers the reputation as a technology hub…

Ikea asserts, and experts agree, that it’s 44 U.S. stores draw customers from as far as 200 miles, and they spend money at more places than just the furniture store.

It is not enough for many places to be well-regarded bedroom suburbs: many of these communities now want more.

  1. An expanded tax base. Bringing in businesses means more money for local services and a reduced tax burden for residents.
  2. Excitement about the community. Many postwar suburbs have experienced decades of development. Newer suburbs or exciting urban neighborhoods offer new options. How will a high-status suburb stay on the radar screens of people within the region and elsewhere? New development always brings excitement.
  3. A new vision for the future. What will the suburb look like in the 21st century? Can they develop new plans and visions? The postwar suburban era is over; what will these suburbs look like by 2050?
  4. Number two and number three above are linked to attracting young professionals. These are high-status people who can contribute to the tax base, provide employees that high-end employers want, and bring energy to the community.

The moves in Fishers echo those of many other suburbs across the United States. Some, like Fishers, are well-positioned with their wealth and location to take advantage of possible opportunities. Others will pursue some of these options but ultimately lack the ability and/or resources to carry them out.

New possible Georgia city just for Amazon

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The race is on between cities and communities to put forward an appealing pitch to Amazon regarding its second headquarters. One Georgia community has a unique approach: make a new city just for Amazon.

The Stonecrest City Council voted 4-2 on Monday to de-annex 345 acres of land if the e-commerce giant picks the area for what the company calls HQ2, a corporate hub where Seattle-based Amazon says it will one day house 50,000 jobs…

“There are several major U.S. cities that want Amazon, but none has the branding opportunity we are now offering this visionary company,” said Stonecrest Mayor Jason Lary. “How could you not want your 21st century headquarters to be located in a city named Amazon?”

Amazon is seeking a 175-acre site located near an international airport, public transit and high quality of living. Lary said he hopes MARTA expands rail service to Stonecrest.

The proposed city of Amazon could enter into an agreement with the city of Stonecrest to provide city services, he said.

This would indeed present a unique opportunity for any large company. I could imagine a few stumbling blocks:

  1. Naming a community after your company could have some cool features but also might have drawbacks. If something goes wrong in Amazon, Georgia, is it automatically the company’s fault?
  2. Would Amazon want its own community that is still beholden to its neighbor for city services? Providing all of your own infrastructure could be very expensive but working out deals for essential needs is not necessarily easy.
  3. Would Amazon want the perception of running a company town? This has tended not to work out well in the past. See Pullman as an older example or Facebook as a more recent effort.

I imagine there will be additional creative options proposed by other cities and places. Stay tuned.

The city of Boston to research, act on data regarding economic inequality

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The city of Boston is taking steps to do its own research regarding troubling inequality within its borders:

And that’s why it’s so interesting that the city is planning to gather and maintain longitudinal data deep into the future that may help explain what’s going on and what policy levers can change the situation. The new cross-agency project, housed in the Mayor’s Office, is called the Economic Mobility Lab, and it has gotten initial funding from the Rockefeller Foundation…

You can see the germ of this idea in the Resilient Strategy that the city released a couple of months ago. Deep in the report, it says that “The City will build upon ongoing efforts by utilizing new and existing data sources to advance resilience and racial equity across the city.” The existing data simply won’t tell the story, and so the city will need to find those new sources and incorporate them—and study the results. For years.

Jason Ewas, the executive director of the Economic Mobility Lab, tells me, “We’re going to put a stake in the ground and say that we’re going to study in general how people are moving up and down, or staying the same, and see if we can see why.” This is an explicit vision of tracking and improving economic mobility.

It’s not that the city will stop experimenting with programs or improving what it’s doing in the meantime. “We’re going to do [that] while researching,” Ewas tells me.

To me, the most interesting part of this is that the city is doing the research itself. Boston has numerous research institutions that could do such research but the city wants to take this on themselves. Will they find things that academic researchers would not uncover (either because of their perspectives or because of the data and actors they would have access to)? Or, will the city be unable to separate out their research arm from their political concerns?

Of course, perhaps these questions do not matter if Boston is able to successfully combat economic inequality. Many cities face these issues as they both try to keep up with the higher end of the globalized economy and serve residents who are far removed from the global elite.