Exporting American McMansions to China

Courtesy of Curbed, here is a look at a Chinese development of 236 McMansions:

Now popping up on the outskirts of several major Chinese cities are homes that would make even the Real Housewives of New Jersey blush. The Rose Garden (above) is a development outside of Shanghai that, once complete, will contain a jaw-dropping 236 McMansions, the largest of which is asking close to $13M. The 9,600-square-foot home will feature both indoor and outdoor swimming pools and a design by the “American SWA Planning & Design Group, American Tao & Lindberg Planning & Design Group, and American HCZ Design Office.” This is the sort of outsourcing we can get behind.

Read on for several other Western-style developments in China that contain homes beyond the level of McMansions.

Several things to keep in mind:

1. The developments in this story are way beyond the means of many Chinese residents. Indeed, they are likely beyond the means of most Americans as well.

2. It is unclear how desirable these homes are in China.

3. This is an example of American cultural exports. Even if the American economy continues to struggle, China’s economy (and perhaps other economies?) grows at a high rate, and America produces or manufactures less, American culture and tastes will continue to be created and exported (at least for a while).

 

Cory Booker uses his social networks to funnel Wall Street money to Newark

Newark mayor Cory Booker has found a way to bring needed money to his city: work his wealthy social networks.

“The room is packed; you had every major hedge-fund, private-equity person,” recalls Joseph Shenker, chairman of law firm Sullivan & Cromwell LLP.

Booker holds guests spellbound using the Hebrew phrase “tikkun olam,” or fixing the world, to describe Ackman’s generosity. It’s a notion Booker has adapted to his city 12 miles (19 kilometers) west of Wall Street, and the moneyed elite are buying in…

“One of the things Cory Booker has done is turned Newark into a national cause,” says Shenker, 55, a New Yorker who remembers watching TV footage of the 1967 riots that left 26 dead. “He has made it a serious issue for the United States.”

Booker, midway through his second four-year term, has raised more than $250 million in donations and pledges for a city where the previous three mayors were convicted of or pleaded guilty to felonies after leaving office.

Mining a network stretching back to Stanford University and Yale Law School, Booker is promoting New Jersey’s largest city as a lower-cost alternative to New York and overseeing nonprofits to fund everything from security cameras to midnight basketball tournaments. Benefactors view Booker as somebody they can work with after decades of corruption, says Larry Sabato, director of the Center for Politics at the University of Virginia.

This reminds me of some of the public-private efforts also being undertaken by Chicago Mayor Rahm Emanuel. If major cities are facing budget issues, this is one way to get money: work with wealthy business people, offer them some results/benefits of investing, and then use the money as you wish.

I could imagine some potential issues with this:

1. Is this a sustainable long-term solution? What if another cause becomes more attractive? What if the city problems become too big to be dealt with using private money?

2. Do the donators have any sway or influence of how the money is used? If so, or, perhaps even more important, if there is even the perception of this, the public may not appreciate this.

3. Generally, does this suggest that it is primarily the powerful people in society, people like important elected officials and wealthy businesspeople, who really to get to decide what gets done? Who really controls a city: the people or those with money and clout?

4. What happens if this money doesn’t lead to much improvement? In business terms, what if there is not a high return on investment?

Property values, city finances, and downtown development: controversy over approved senior housing in downtown Wheaton

New development projects in already-developed suburban areas can attract controversy. Here is an example from downtown Wheaton, Illinois: the city council just approved a senior housing project but some of the neighbors are not happy with the change to the site and there are some questions about funding and whether the city will be left with a bill.

The council voted 4-3 this week to allow construction of a 167-unit facility on a site once slated for luxury condominiums as part of the Courthouse Square complex at the corner of Naperville Road and Willow Avenue…

The approval came after nine planning and zoning board meetings totaling more than 24 hours with testimony from experts, opponents and supporters. In a nearly unanimous vote in August, that board recommended the council deny the zoning plans.

The original proposal for the complex, supported by the council in 2004, called for a mix of townhouses and condos. But developers cited the housing market crash when they pulled the plug on what were supposed to be the second and third midrise buildings. Northfield-based Focus Development Inc. and West Chicago-based Airhart Construction Corp. partnered on the project.

The saga continued when developers asked to amend the plan to allow senior housing, angering some Courthouse Square residents who argued they were promised a strictly residential community when they bought their units.

I’m not sure how this will all play out in court and whether the current residents have a case against the developers. However, here are a few thoughts about this:

1. Senior citizen housing would be helpful in Wheaton. As a more mature community that is relatively wealthy, there are relatively less places in the community for seniors to live in affordable housing. Indeed, when communities like Wheaton do talk about affordable, they tend to be talking about seniors and young people who would like to be in the community but don’t have the resources due to their stage in life to remain.

2. Wheaton has been on a longer program of introducing more housing into the downtown, starting with the condominiums built in the early 1990s across the street from the downtown train station. While higher-end housing might bring in more revenue and people who have more spending power to spread around the downtown, having some development in this space rather than none might be preferable.

3. Like in many suburban debates about development, it sounds like this is partly (mainly?) about property values. The existing residents don’t want their higher-end units to suffer because senior-citizen housing is built nearby instead of other high end units. This could be one of those situations where it would help to take a bigger view: Wheaton would like to offer more affordable housing for seniors and this land is available so perhaps property values can’t or shouldn’t be the overriding concern here.

4. More than ever because of the economic crisis, revenues matter in these situations. Some are concerned that the city, and therefore, taxpayers, might be on the hook if the development doesn’t work out in a certain way. This would be a strike against downtown redevelopment plans; the goal is to generate new revenues, property and sales taxes, not saddle the municipality with new costs.

Illustrating problems with big retail in Naperville: push for more landscaping but offer sales tax rebate

The response from the city of Naperville to a proposal for a new Walmart in the suburb illustrates some of the issues communities face when approving big retail stores:

Councilman Grant Wehrli said he would like to see the store follow the lead of nearby Costco and Whole Foods by going “above and beyond” the city’s landscaping requirements.

“I would love to have Walmart come in, but I’m concerned about the landscaping. What I would like to see done there is for Walmart to follow the lead of the other two developments, literally across the two streets, and go above and beyond with the landscaping. It’s relatively inexpensive and the benefit to society is massive,” Wehrli said. “If we go to the higher standard of landscaping, we’re not just going to be like the Walmart in Buffalo Grove. It’s going to take that intersection to a higher level.”…

Wal-Mart representative Aaron Matson called the timing of the request “eleventh-hour,” but said they were doing the best they can to address the concerns…

“If we’re not careful with what we’re asking for, they may decide to say, ‘Hey, let’s move right across the street (to Aurora),” Krause said…

Wal-Mart officials still hope to break ground this year on the store that has also been awarded a $1.75 rebate in sales tax revenues over 10 years.

Here is how I interpret this:

1. The community is concerned with how Walmart looks and how it fits in with the nearby Springbrook Forest Preserve. Naperville has its share of ugly retail stretches, notably Ogden Avenue east of Washington Street and Route 59 south of the Burlington Northern tracks. In order to present a nicer image befitting of a wealthier suburb, Walmart needs to add some landscaping and go beyond typical requirements. I am amused by the comparison to Buffalo Grove. According to the Walmart Store Locator, there is no Walmart in Buffalo Grove though there is one very close by in Wheeling. Regardless, Naperville doesn’t want to have any run of the mill Walmart; they want one that reflects Naperville and helps distinguish it on the higher end from other suburbs.

2. Yet, the city may not be able to push the landscaping requests too far because Walmart could still locate their new store in nearby Aurora. In other words, the city has to offer a sales tax rebate because it cannot pass up this revenue source. Naperville officials may be particularly attuned to this because Naperville has lost retail business to Aurora before. In one notable case, the developer for the Fox Valley Mall played Naperville and Aurora against each other in the early 1970s, Naperville was less willing to budge, and the mall was built just across Route 59 in Aurora.

Overall, the community needs the tax money Walmart generates but they also want the store to be presentable. Such are the tensions today regarding big box stores.

Seeing pictures of a declining Detroit as part of the common story of social change

While this collection of photos may qualify as “ruin porn,” a new exhibition put together a sociologist and photographer highlights the changes experienced in the city of Detroit:

Detroit was once the symbol of prosperity and economic development, but with the decline of the American auto industry, the Motor City has fallen into a great state of dilapidation.

The city has lost about a million of its residents (60% of its population) since the 1950s, and numerous factories, businesses and service buildings have been abandoned.

Two photography exhibitions at the National Building Museum in Washington, D.C. this fall explore the residential, commercial and industrial ruin of Detroit, Michigan.

Both “Detroit Is No Dry Bones” by sociologist and photographer Camilo José Vergara, who has been documenting the precipitous decline of Detroit for 25 years, and “Detroit Disassembled” by Andrew Moore, who is renowed fro his large-format photography, will be on display through February 18, 2013.

Why is the new TV show Revolution shooting fake scenes of Chicago having fallen into disrepair when it could be shooting in certain locations in Detroit?

Even though we have seen plenty of photos like this before, it sounds like the exhibition has a hopeful goal:

Of his work, Vergara states “My belief is that by creating a photographic record of Detroit, as it is taken over by nature and pulled down by gravity, people will come to appreciate how the city continues to survive and to give answers to those who come to observe it…The empty land, the art projects, the graffiti commentaries, and the ruins of the city’s industrial past make Motown an unforgettable city of the imagination and could provide the basis for a new Detroit.”

One way to get past the ruin part of the story would be to couch these photos of Detroit as part of the larger issue of social change. Cities can and do change quite drastically and photographs help us to record these changes. I think the reason Detroit gets a lot of attention because the decline narrative is not a common one in the United States. We tend to think of our cities and communities and growing places that continue to move forward. We like progress. There are also cities and places going the other direction, such as the documented changes in recent decades in the Sunbelt. Or the burgeoning cities of China and other developing countries. Overall, we could think about how people, leaders, and organizations react and respond to change which is often not easy whether it is cast in positive or negative terms.

“The Great Reverse Migration”: blacks move away from northern cities

The Great Migration brought more than 6 million blacks to the north from the south starting in the early 20th century but now it looks like the population flow might be working in reverse:

The New York Times noticed in the early 1970s that, for the first time, more blacks were moving from the North to the South than vice versa. Last year, the Times described the South’s share of black population growth as “about half the country’s total in the 1970s, two-thirds in the 1990s and three-quarters in the decade that just ended.”

Many of the migrants are “buppies” — young, college-educated, upwardly mobile black professionals — and older retirees. Over the last two decades, according to the Census, the states with the biggest gains in black population have been Georgia, South Carolina, Virginia, Texas and Florida. New York, Illinois and Michigan have seen the greatest losses. Today, 57 percent of American blacks live in the South — the highest percentage in a half-century.

Much of the migration has been urban-to-urban. During the first decade of this century, according to Brookings Institution demographer Bill Frey, the cities making the biggest gains in black population were Atlanta, Dallas and Houston. Meanwhile, New York City’s black population fell by 67,709, Chicago’s by 58,225, Detroit’s by 37,603.

Plenty of the migrants have been moving from cities to suburbs, too. “By 2000 there were 57 metropolitan areas with at least 50,000 black suburbanites, compared to just 33 in 1980,” notes sociologist Andrew Wiese. The 2010 census revealed that 51 percent of blacks in the 100 largest metro areas lived in the suburbs. As journalist Joel Garreu describes it, suburbia now includes a “large, church-going, home-owning, childbearing, backyard barbecuing, traffic-jam-cursing black middle class remarkable for the very ordinariness with which its members go about their classically American suburban affairs.”

The article goes on to talk about four reasons why this is occurring: the private sector has been creating more jobs in the south, housing is cheaper in the south, public services in the north like schools aren’t that great, and retirees are looking for better weather.

The suburbs data mentioned above is fascinating: more blacks are in more metropolitan areas and a majority of blacks in the largest metro areas live in the suburbs. While there is some evidence blacks are moving to the south, might there even be stronger evidence that blacks are moving to the suburbs? At the same time, this does not necessarily mean that these suburbs are great places; many inner-ring suburbs face a lot of big city problems and perhaps have even fewer resources to deal with the problem. For example, see this post from last year about blacks moving from Detroit to suburbs that have similar troubles.

This also reminds me of some of the demographic mobility in the United States: 110 years ago, there were relatively few blacks in northern cities. Five decades ago, whites fled many of these cities because they thought blacks were invading their neighborhoods. Now, blacks are moving to the suburbs and back to the south. I have never seen any figures on this but it seems like the United States has a relatively high degree of internal mobility compared to other countries.

The fight over transit money between Chicago and its suburbs

A fight over funding is brewing between the Regional Transit Authority (RTA) and Chicago Transit Authority (CTA), Pace, and Metra about how to divvy up sales tax revenues and discretionary money:

Twelve votes are needed to approve budgets, yet five out of the 16 directors on the board are Chicagoans who have the CTA’s back, conventional wisdom says.

And this isn’t just an RTA fight. It also involves the region’s political heavyweights like Mayor Rahm Emanuel and [DuPage County Board Chairman Dan] Cronin, who appoint RTA directors to their $25,000-a-year positions.

Cronin says he recognizes [CTA President Forrest] Claypool and Emanuel didn’t create the problem. But he describes the standoff as “bullying.”

“The money is collected from all the taxpayers in the region, the majority of whom reside in the suburbs. Why should we subsidize the CTA more than we already are?” he asked. “They seem to care little for their neighbors in the suburbs.”

This is tied up with two larger issues:

1. The Chicago area is infamous for its many governmental bodies. This is another example of the broader issues associated with metropolitanization: multiple transit agencies are fighting for revenues and surplus funds that are controlled by an umbrella organization. All three agencies could really use the money so how is it to be decided outside of what will end up being a very politicized process?

2. In the larger public discussion about taxes, a growing theme is illustrated here: why should funds/taxes raised in one area be spent in another area? This is what Cronin is arguing: the revenues raised from relatively wealthy DuPage County (#57 in the country according to 2011 figures) are being used to fund mismanaged services in the nearby big city that many DuPage residents and shoppers do not use on a regular basis. This, too, is tied to metropolitanization: how can communities, agencies, and governments across a region come together to address common problems if everyone is only looking out for their self-interests?

Los Angeles survives Carmageddon II

The Los Angeles area has now survived Carmageddon and Carmageddon II, which just took place this past weekend. And it also ended a few hours ahead of schedule:

The reopening of the busiest and most congested freeway in the U.S. came hours earlier than predicted. Crews working on dismantling the Mulholland Drive Bridge had a 5 a.m. Monday deadline, and Mayor Antonio Villaraigosa said at a Sunday evening press conference that there would not be an early opening.

Starting around midnight Saturday when that stretch of the I-405 was fully shut down, crews had 53 hours to complete their work. Had they overshot their Monday morning deadline, a late penalty of about $360,000 would have been charged to them every hour…

The demolition is part of the $1-billion Sepulveda Pass Improvements Project, which adds a 10-mile northbound carpool lane. On Sunday, crews also paved the freeway between the Skirball Center Drive and Mulholland Drive bridges…

As for the benefits of Carmageddon, officials said if this year is anything like the last, a lot of people will be breathing a little easier when the weekend is over. According to a study at the University of California, Los Angeles, the air quality in the area of the 405 closure improved more than 80 percent during the 2011 Carmageddon event.

If you live by the highway, you can also die by the highway (closures). See some photos of the work here.

Apparently, the site of an empty highway in Los Angeles is a strange one:

Like Villaraigosa, some drivers couldn’t resist comparing the scenario to a movie.”It’s like that movie `Vanilla Sky,’ … where Times Square is empty,” Sterling Gates told KABC-TV. “It’s kind of like that. We’re known for our traffic, and it’s just nothing.”…

The rare sight of a carless freeway attracted many onlookers, including seven people who were cited for sneaking onto the roadway, the California Highway Patrol said.

Last year, three people slipped onto the freeway at the crack of dawn and snapped photos of themselves enjoying a gourmet meal on an eerily empty freeway.

It is a post-apocalyptic scene…for two days.

Sao Paulo traffic jams can stretch over 100 miles

A massive traffic jam in China last year attracted a lot of attention but it sounds like Sao Paulo has this beat: how about traffic jams over 100 miles long?

This is the city of Sao Paulo, Brazil, where the BBC reports that, in the city of 11 million, traffic jams average 112 miles long on Friday evenings. It can even stretch to 183 miles on particularly bad days. With so much time spent in cars, it’s inevitable that life events like meeting your future spouse occur there too.

IBM’s annual Commuter Pain Survey (which did not include Sao Paulo) awarded Mexico City the ‘most painful’ ranking:

The index is comprised of 10 issues: 1) commuting time, 2) time stuck in traffic, agreement that: 3) price of gas is already too high, 4) traffic has gotten worse, 5) start-stop traffic is a problem, 6) driving causes stress, 7) driving causes anger, 8) traffic affects work, 9) traffic so bad driving stopped, and 10) decided not to make trip due to traffic.

Mexico City scored the worst overall, and Sao Paulo’s traffic jams may cover the longest distance. The record for worst traffic jam ever, though, goes to China.

Any solutions to this problem? The BBC report has some ideas:

Professor Barbieri says Sao Paulo has skilled and experienced traffic engineers that somehow manage to get the city to flow, albeit slowly.

“But the big problem is that we Brazilians are terrible with planning and traffic will only become more manageable if we start looking into real long-term solutions.”

But he is also clear that a “more manageable traffic” environment is the best possible scenario that can be achieved.

“No city in the world will ever manage to end congestion because when traffic flows, people are drawn to their cars. The key is to find a balance, the point at which it is worthwhile for commuters to use public transport because it’s faster then driving,” he says.

“That way Sao Paulo needs urgently to invest more in public transport instead of building new roads and expressways that will only be filled up with more cars.”

While the article suggests the local helicopter industry is thriving, it sounds like an opportunity for an enterprising politician or leader to chart a new course.

Chicago leads big cities in increasing downtown populations between 2000 and 2010

The residential population in the downtown of a number of American big cities grew between 2000 and 2010 and Chicago led the way:

The report found that the number of people living within two miles of Chicago’s City Hall rose 36 percent from 2000 to 2010. Though many of the largest U.S. cities experienced a similar trend in the last decade, Chicago outpaced them all in that category.

More than 48,000 moved to downtown Chicago in the last decade, according to the report. New York City saw a 9.3 percent increase in its downtown population, or about 37,000 people…

Rob Paral, a Chicago demographer, says the city’s downtown population growth reflects several underlying economic factors, including downtown revitalization and an expanding job market.

But though places like the South Loop and West Loop have benefited from the trend, Paral says, its effects quickly fade the farther out you go.

“There’s a big difference between what you see in downtown and what you see in other parts of the city,” he said. “We wish it would be happening within 20 miles of City Hall, but no city has that kind of prosperity.”

In other words: one of the wealthy areas of the city continues to grow while less well-off areas struggle to tackle social problems while facing declining population. I assume this report will be spun by Mayor Emanuel and others to suggest that Chicago is resurgent even in tough economic times. However, a city is not just its downtown.