Chicago area malls trying to reinvent themselves yet not adding many residential units

Multiple suburban shopping malls in the Chicago area are trying to turn it around with different uses:

A casino is envisioned for the former Lakehurst Shopping Center site in Waukegan, which closed in 2001 and was demolished in 2004. It was the proposed site of a casino until the 10th and final state license was awarded to Des Plaines in 2008. With the latest round of gambling expansion, Waukegan could revive that dream.

St. Charles has seen little momentum on a concept plan presented two years ago for the largely vacant former Charlestowne Mall site north of Route 64. It called for the property’s complete revitalization, including a residential development, a smaller mall building and the construction of free-standing commercial structures. Mall owners have yet to make a deal with developers.

Stratford Square Mall in Bloomingdale, which opened in 1981, has been struggling for several years having lost three anchor stores since 2014. It launched a multimillion-dollar renovation project featuring interior and exterior improvements at the 1.3 million-square-foot center. An earlier renovation included the 2014 opening of Round1, a 40,000-square-foot entertainment center featuring bowling, billiards, video games and karaoke…

To further increase foot traffic, several suburban malls have incorporated entertainment venues. There’s now a Cinemark movie theater at Spring Hill Mall in West Dundee, a Round One entertainment center at Fox Valley Mall in Aurora, an AMC Hawthorn 12 theater and a Dave & Buster’s at Hawthorn Mall, a Pinstripes near Oakbrook Center and Pac-Man Entertainment (formerly Level 257) at Woodfield.

With retailers everywhere struggling, the trend toward multiple uses in shopping malls continues. The hope is that multiple uses can attract people to the site who after eating might want to shop or who after seeing a movie might want to eat there and so on. (I think this then could lead to the issue of how many entertainment centers can make it in the suburbs but that is another problem to tackle later.)

One piece that is missing from these descriptions: adding residential units. This would likely require some zoning changes as the mall properties probably only allow commercial properties now. Furthermore, it could take some work to reintegrate the full property with the surrounding street grid (which likely includes residential units nearby). Having residents on site could address multiple problems facing suburbs: filling vacant space; providing round-the-clock customers; increased population growth which is an issue in many suburbs with no major land parcels left; and the possibility of having affordable housing. These residential units may not bring in as much money as stores and restaurants that add property and sales tax revenues but they could add life to stand-along properties.

West Chicago: founded around a railroad junction, host to Big Boy, and a missed opportunity to be a railroad tourist center

On Sunday, I had a vision of the suburb of West Chicago. Thousands of people regularly visited the community to see railroad displays and learn about the influence of the railroad on local history, the Chicago region, and the nation as a whole. Both regular and special trains drew onlookers. Local businesses, some with railroad themes, some not, benefited from extra visitors. Even as the car has dominated suburban life for decades, West Chicago remained an exciting testament to the power of the railroad in American life.

This vision may seem outlandish on a regular day but not so this past Sunday. To celebrate the 150th anniversary of the Transcontinental Railroad, Big Boy, one of the largest locomotives ever built, spent several days parked at the Union Pacific facilities just outside downtown West Chicago. On a hot summer Sunday, a large crowd gathered to see the locomotive and several passenger cars. Multiple generations turned out. People waited patiently to walk through one of the passenger cars. People stood next to the giant Big Boy and cheered when it released steam.

BigBoyOverhead

A community roughly thirty miles west of the heart of Chicago’s Loop, the community was founded as Junction around a railroad junction linking several other lines to the first railroad line in and out of Chicago (the Galena & Chicago Union). Workers came for railroad jobs. Factories and industrial facilities located near the railroad lines (including the later-arriving Elgin, Joliet & Eastern Railway). The community developed an identity around the railroad, with a Main Street that backed up to the railroad, the annual Railroad Days celebration and the prominent locomotive on the city seal. If there is a Chicago area suburb that can claim the railroad as its own, it is West Chicago.

Why doesn’t the suburb attract more visitors with such a rich railroad past? It may not be for a lack of trying. A display on Main Street featured a locomotive for a few decades. In the 1960s and 1970s, local groups developed plans to create a downtown railroad theme with one committee member saying West Chicago could become “Railroadsville, Illinois.” In the late 1980s, DuPage County planners said a railroad theme had great potential to offer something unique to families and visitors.

These efforts never quite came together. The suburb still benefits from its multiple transportation advantages – the railroad, DuPage County Airport, proximity to multiple major roads including Illinois Route 59, Illinois Route 64, and Interstate 88. But, the Illinois Railway Museum is located miles away to the northwest. West Chicago’s downtown struggles. The most attention many suburban residents pay to the railroad involves impatience when roadways are blocked by long freight trains or regular passenger trains.

When Big Boy leaves later this morning, perhaps it takes with it any hope that West Chicago can become a railroad tourist center. There is a minor chance it could happen; West Chicago has a history to build on. There is a market: thousands of visitors came out to see Big Boy. However, it would take sustained effort, resources, and some good timing.

Update 7/31/19: An estimated 45,000 people visited West Chicago to see Big Boy.

Suburbs do not want to sully their character by allowing marijuana sales

Selling marijuana may soon be legal in Illinois but this does not mean suburbs necessarily want to be places where this happens:

Naperville, Lake Barrington and Bloomingdale plan to officially ban sales, Libertyville leans toward the same and the mayor of Batavia said he will issue a veto if necessary.

Des Plaines officials have expressed concerns and are doing more research before deciding, which also will happen in Lincolnshire and Bartlett.

To date, only South Elgin and Elburn said they are OK with allowing one marijuana retail store…

Municipalities can choose to not allow marijuana stores within their boundaries, or can enact “reasonable” zoning ordinances and regulate how many and where they are located. That can include minimum distances from “sensitive” locations such as colleges and universities, the law states.

Imagine a suburban landscape starting in January where marijuana is primarily sold in communities that are not as wealthy and/or white. Does this lessen their reputation and bolster the status of communities that do not allow sales?

It will be interesting to see if the communities that are now saying no continue to hold out against marijuana retailers in order to preserve a particular character. The carrot being offered is extra sales tax revenue that municipalities can collect. A wealthier suburb might see adjacent communities benefiting from extra funds and decide they want a cut of it. Or, perhaps they do not see that other suburbs are viewed negatively because they allow marijuana sales so they decide to jump in.

Chicago’s beautiful Riverwalk…what took so long to put it together?

On a recent beautiful summer afternoon, I had my first chance to walk the full Chicago Riverwalk.

ChicagoRiverwalk1ChicagoRiverwalk2

The city’s website suggests the plans for the Riverwalk started in the late 1990s. Why did it take so long for the idea to come together? For a city that has so much pride in its lakefront parks and protected areas, the river was overlooked for decades. In much earlier decades, economic activity was centered on the riverbanks: rail lines brought goods from throughout the region to ships and counting houses. But, it has been a long time since this activity ended and important buildings have lined this stretch for decades. If a Riverwalk can do much for places like San Antonio and Naperville, what took so long for Chicago to enhance this stretch?

Three thoughts on the finding that 7.5% of housing in Naperville is affordable

Naperville is a large – over 140,000 residents – and wealth – a median household income of just over $114,000 – suburb. It also does not have much affordable housing:

A state agency recently faulted Naperville as the only Illinois community of 50,000 or more lacking affordable housing, which, according to the federal government, means housing costs make up no more than 30% of a household’s income. In a report last year, the Illinois Housing Development Authority found just 7.5% of Naperville homes are considered affordable based on the regional median income, among the lowest percentages in the state.

Some elected officials fear Naperville’s high housing costs could drive out seniors and push away recent college graduates and middle-class professionals. As those city leaders consider a slew of new developments, they and housing advocates are debating how and whether to include affordable units that could bring in new residents and help people such as Melekhova stay…

Efforts to include affordable housing in Naperville developments have been met with some resistance. Residents have questioned the effects affordable units would have on their neighborhood and whether the look of buildings with affordable units would fit the character of the area.

One question submitted on a note card during a panel on affordable housing in May was more pointed: “What steps can landlords utilize to minimize the potential negative impacts of the associated tenants utilizing affordable housing?”

Based on my research on suburbs and Naperville, three quick thoughts:

  1. Naperville enjoys being a wealthy suburb. It has a really low poverty rate for a city its size. It has lots of white-collar jobs. While this tends to be put in terms of having a high quality of life, nice amenities, and good schools, there is clearly wealth.
  2. There is not a lot of affordable housing because that is not the kind of housing Naperville prioritized for the last fifty years. As the suburb really started to grow in land area and population in the 1960s, there were public discussions about building apartments. This is not what won out in the long run and the community approved subdivision after subdivision of nicer single-family homes. (See my 2013 article that details some of this.)
  3. More recent discussions and the comments highlighted in the article are common ones in suburban debates over affordable housing. When suburbs discuss affordable housing, they often are thinking of people that would desire in the community such as younger adults and retirees. They are not explicitly seeking out poorer residents. Such concerns can be put in different terms – privileging “quality” development or protecting the “character” of neighborhoods – but they often do not address housing for the many Americans working in lower-paying jobs. And there may be some support for affordable housing units but it is harder to find the suburban homeowners who want to live near those units.

All that said, truly addressing the issue of affordable housing requires more effort than adding a few units spread throughout the large suburb. A larger discussion about what kind of housing the community desires and what kind of residents it wants would have to take place before the number of affordable housing units would truly jump.

Bringing medical clinics to vacant shopping mall space

Filling emptying shopping malls can be a hard task. Add medical services to the list of possible replacement uses:

Mall of America in Minneapolis, America’s largest mall, announced plans last week to open a 2,300-square-foot walk-in clinic in November with medical exam rooms, a radiology room, lab space and a pharmacy dispensary service. Mall of America is teaming up with University of Minnesota physicians and a Minnesota-based health care system to operate the clinic…

While mall leases for clothing retailers declined by more than 10% since 2017, medical clinics at malls have risen by almost 60% during the same period, according to Drew Myers, real estate analyst at CoStar Group. The growth of medical clinic leases at malls has been the “strongest among all major retail sectors over the past five years,” he said.

Mall landlords are betting that when patients visit for a flu shot or eye exam, they’ll shop around for clothes or electronics. Adding medical clinics also makes sense for mall owners because they draw in doctors, nurses and technicians every day who may shop and eat at restaurants, according to a May research report by real estate firm JLL. Health care providers are also attractive tenants for mall landlords because they tend to have high credit ratings and sign longer leases compared with other retailers, JLL analysts noted.

On the provider and health insurer side, shopping malls give companies convenient locations to set up outpatient care posts and preventative care locations for patients. Providers are increasingly looking to these lower-cost clinics to help patients avoid expensive trips to the emergency room.

The medical offices can serve the new residents and commercial uses that are also now occupying shopping mall space in addition to blending shopping and medical trips (dubbed “medtail” in the article). Just wait until the new hospital takes over the mall and patients and visitors can walk out one door and into a clothing store down the hall.

More broadly, this hints at a blending of activity within single structures that suburbs are not used to. Suburbs are known for separating land uses, often with the goal of protecting single-family homes. Suburban downtowns, places where multiple uses might be found, are limited and now often seem geared more toward entertainment and cultural use. Could the shopping mall truly be a community center in the coming decades with more residential units, medical offices, and community spaces?

Freeway revolts had a point: evidence from Chicago regarding the problems with highways

Two economists at the Federal Reserve Bank of Philadelphia looked at the effects of building highways and found a number of negative effects for Chicago neighborhoods near the highways :

FreewayRevoltsWorkingPaper

The literature criticizing urban renewal and highway construction in major cities after World War II has made a similar point: the construction of highways broke up established neighborhoods and encouraged urban residents to leave for the suburbs since they could easily access the city via highway.

At the same time, it sounds like this working paper suggests highways themselves are not necessarily the issue. The bigger problem may be that the highway is located on the surface and creating negative local effects including acting as barriers. Sometimes, this may be intentional such as when the Dan Ryan Expressway on Chicago’s South Side had the intended side effect of separating black and white neighborhoods. Other times, the highway could bisect what was a connected neighborhood and sever it. But, if the highway was underground, perhaps everyone could win: there would not be a 6-12 lane barrier, local neighborhoods would not see or hear the highway in the same way, and suburbanites could still access the city center. While it is hard to imagine, picture the Eisenhower headed into Chicago underground with parks, surface level streets, social and business activity, and a CTA line above it. Local residents could still have access to the highway without having to live right next to it.

This solution would likely not satisfy everyone. If the goal of countering highways is not just to protect neighborhoods but also to limit driving and promote mass transit, burying the highway is not enough. The eyesore may be gone but the larger problem still looms: Americans like driving and the associated lifestyle and too many cities are subservient to cars rather than to pedestrians and community life.

An incomplete way to frame it: Lake County loses jobs and HQs to Chicago

The shift of headquarters and jobs from Lake County to downtown Chicago leaves a number of suburban buildings vacant:

The far north suburban county is bracing for the loss of about 2,700 office jobs by early next year, from prominent companies Walgreens Boots Alliance, Takeda Pharmaceutical Co. and Mondelez International…

History indicates corporate campuses in Deerfield and nearby suburbs — and the homes and businesses those high-paying office jobs support — can weather the storm. But the challenge has only intensified as more companies move jobs to downtown Chicago, in pursuit of younger workers who want to live in the city…

McDonald’s, Kraft Heinz, Motorola Mobility, Hillshire Brands, Gogo, Wilson Sporting Goods, Motorola Solutions and Beam Suntory are examples of companies that have moved their headquarters downtown in the past few years. Others, such as Walgreens, have established large offices in the city while retaining suburban headquarters…

A 2013 report outlining the county’s economic development strategy said losing any of the larger employers in the biopharma industry — such as Takeda — would be “devastating” to the county.

Such moves have real consequences for suburban areas. Filling and/or reviving large office parks and suburban campuses can be difficult. The loss of jobs and tax revenue can hurt.

At the same time, a story like this can reinforce notions that when Lake County loses jobs to the city of Chicago, this is a bad outcome. When the suburbs lose jobs to the big city or vice versa, someone is winning and someone is losing. Not necessarily: the region is still benefiting as the cities and suburbs depend on each other. From the perspective of the whole region, there is good news here:

-The fact that these companies want to stay in the Chicago region, whether in the suburbs or downtown, hints at the economic vitality and amenities of the whole area. With the bad news of Illinois’ financial issues, big companies are not leaving the state en masse.

-Other parts of the article hint that while the vacancy rate for office space is high in Lake County, there is still some business demand for these headquarters and campuses. Some locations might require more work to find a sizable replacement but they are not necessarily sitting empty for years.

-This presents opportunities – perhaps unwanted – for suburban municipalities to rethink suburban office parks and campuses. Rather than waiting for the big company to use the whole property, these could be future mixed-use sites featuring office, retail, recreational, and residential space. Rather than rely on single employers, suburbs could work to tie these campuses into the larger fabric of their community.

This could become a bigger problem if suburban properties stay vacant for a long time but these changes seem fairly normal for now: businesses move locations within a region to chase what they think are attractive options for workers (particularly young ones) and their bottom line. Perhaps more importantly, the suburb versus city battle over prestigious headquarters does not need to sour relations or perceptions. The region as a whole can continue to thrive even if there are changes to address within the metropolitan area.

Buying and demolishing expensive suburban homes to expand I-294

Acquiring property for right-of-ways for highways and other uses can get expensive. Here are a few examples of the Illinois Tollway purchasing homes in Elmhurst and Hinsdale:

A two-story, 3,145-square-foot house in Elmhurst that was built in 2005 and that the Illinois Tollway bought for $710,000 has a date with a wrecking ball later this year. It’s one of the more unusual aspects of the upcoming $4 billion widening of Interstate Highway 294…

The house due to be razed, at 505 E. Crescent Ave. in Elmhurst, abuts a noise wall that parallels a ramp linking Interstate Highway 290 to I-294. The Illinois Toll Highway Authority needs the house’s 0.3-acre parcel to provide room for an interchange ramp, said tollway spokesman Dan Rozek. It’s the only house in Elmhurst that the toll authority intends to acquire…

While the tollway’s plans call for just that one house acquisition in Elmhurst, the tollway intends to acquire and demolish some 11 homes farther south in Hinsdale for the project, many of which are on Harding Road and Mills Street. In a reflection of the relatively high cost of homes in Hinsdale, the tollway paid even more for two Hinsdale homes than it did for the Elmhurst acquisition, shelling out $870,000 for a house at 621 Harding Road and $825,000 for a home at 645 Harding Road.

However, most of those pending Hinsdale demolitions are of homes that are much older than the one in Elmhurst. Of the Hinsdale acquisitions, the house that was most recently built is a four-bedroom, 2,346-square-foot, neo-eclectic-style house at 417 Mills Street, which was built in 1996. The tollway acquired that house in December for $700,000.

Suburban areas have lots of homes adjacent to highways and relatively few meet this fate. And such homes can be worth quite a bit even with all that noise if located in the right community and with the right features (such as plenty of square footage and a recent build).

This is a reminder that perhaps the best lesson to take from all of this is for leaders and planners to do these sorts of things earlier rather than later to save money. If the plan is always to add lanes – which probably just encourages traffic rather than relieving congestion – then do it earlier. These more recent homes might never have been built and communities could plan earlier for such major changes to residential areas.

Processes, events, and decisions add up to significant consequences from Chicago’s 1919 riots

With the 100 year anniversary of the 1919 violence and riots in Chicago approaching, the Chicago Tribune considers some of the long-lasting consequences of a violence-filled summer:

The riots ended after seven days, brought about by the intervention of the Illinois militia — which critics said came too late. The riots changed Chicago in ways it continues to grapple with. Days after the riot, the City Council, for example, proposed formalized segregation on the South Side that remains in place informally today…

Consequently, the trauma of the white assault on the black community left another lasting legacy: the black street gang. “To be sure, the 1919 riot contributed directly to Black gang formation in Chicago as Black males united to confront hostile White gangs who were terrorizing the Black community,” author James C. Howell wrote in his book “The History of Street Gangs in the United States: Their Origins and Transformations.”…

The end of the riots brought swift condemnation, expert groups to examine the cause and criminal charges — though primarily against alleged black rioters — but no real consensus on what to do. On the latter point, in the days after the riot, Cook County State’s Attorney Maclay Hoyne initially charged only black citizens with rioting, leading to a walkout by members of the grand jury hearing the cases…

“In the aftermath, you call it an interracial consensus that the best way to prevent something like this from happening again was to keep the races separate. That was the lesson that was mislearned from the riot,” he said.

This is a reminder that a long legacy of residential segregation, inequality, and racism in the city of Chicago does not just happen: it is the result of specific social processes (some under the control of Chicago leaders and residents and others not), particular events, and reactions to those processes and events. Similarly, it is not easy to simply “turn the page” from past events or reverse the consequences; the same processes, events, and decisions have to be countered with different options.

And if this latter statement is true, Chicago and many other American places have a long way to go regarding countering these legacies. Remembering the past processes, events, and decisions is very important. As the Tribune article notes, how many Chicagoans think the 1919 riots are an important part of the city’s legacy? But, then more work needs to be done. And at this point, it is hard to say that Chicago has done much to reverse these patterns started in the early 1900s.