Shopping malls have to renovate and adapt in order to survive

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Even successful shopping malls like Woodfield Mall in Schaumburg have to innovate in order to stay relevant:

With shopping habits having been permanently reshaped by memories of the recession and the availability of new technology, traditional malls like Schaumburg’s must find new reasons for people to make the trip, said Phyllis Ezop, president of Ezop and Associates, a business strategy and marketing information firm in La Grange Park…

The factors that seem to separate the two categories are location, demographics, the strength of tenants and the availability of other amenities, such as restaurants and movie theaters, that can make the mall more of a destination, Stern said…

With the rising popularity of the largely outdoor lifestyle center, Woodfield’s 44-year-old indoor structure is especially challenged, Stern said.

One Woodfield’s negatives that a cosmetic renovation is unlikely to fix is its split-level nature. This makes the mall harder to navigate for the shopper and causes some spaces to be better than others for the tenant, he said…

“They need to have destinations there,” Aron said. “I really see it going in that direction. You can order things online, but you can’t have a great dinner online.

I’ve seen this idea in numerous discussions of planning, whether thinking about reviving a downtown or a shopping mall or a tourist locale: potential visitors need a destination, something unique to get them there. In this sense, Woodfield already is ahead of the game: it is one of the largest malls in the United States, has over 2 million square feet of retail space, and companies located there treat it as an important location (flagship stores, special concepts, etc.). But, it is not guaranteed that people will continue to visit shopping malls. These days, the hook seems to be entertainment. Sure, the mall has shopping but eating, movies, special events, and unique spaces offer entertaining experiences.

Study suggests thousands more road deaths when gas prices drop $2 a gallon

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American drivers certainly like cheaper gas prices but it may come at the price of more deaths:

South Dakota State University sociology professor Guangqing Chi, who analyzes the relationship between gas prices and road fatalities, calculated what the current prices might mean for fatalities by analyzing traffic and crash data numbers from a Minnesota study he conducted from 1998 to 2007.

“A $2 drop in gasoline price can translate into about 9,000 road fatalities a year in the U.S,” Chi said on NPR’s Morning Edition Tuesday. NPR science correspondent Shankar Vedantam said his “jaw dropped” when he heard the “scary” number. A more conservative calculation based on Chi’s research translates into 3,000 more road deaths per year, Vedantam said…

Chi’s original Minnesota study — from which he extrapolated the 9,000 road deaths figure — showed that even a 20-cent drop in gas prices was linked to 15 additional road deaths in the state per year.

Chi told The Huffington Post by phone Tuesday that it typically takes almost a year for drivers to adopt new driving habits in response to changes in gas prices. Some analysts have predicted low gas prices will persist for the next six months or so.

Those driverless cars (with solar power and electric cars) can’t get here soon enough. Yet, Chi acknowledges that Americans have already been driving less so it will take some time to see if driving picks up just because gas prices dropped significantly.

Cities get creative in finding ways to resolve bankruptcy

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As more cities face dire financial straits, here is a quick overview of the means by which different American cities have escaped bankruptcy:

When Bridgeport, Connecticut filed for Chapter 9 in 1991, they received help from a state oversight board, and also convinced Chase Manhattan to keep its Connecticut headquarters in Bridgeport which helped. There were other approaches, too, one part of which was arranging for Donald Trump to buy out 100 acres of publicly owned property to develop an amusement park and motor race track, though that never came to pass. In 1992, The New York Times reported that there were also “measures including a plan to recover delinquent property taxes by selling tax liens to a private collection agency,” as well as acquisitions for aid from the state, and “concessions from the city’s unions.”

Among the more colorful approaches in recent years was Harrisburg, Pennsylvania’s. In 2011, having been huckstered by a corrupt company to build an up-to-code (and ultimately faulty) trash-to-energy incinerator, the Keystone State’s capital city petitioned for Chapter 9. They sold the incinerator for $130 million, as well as auctioned off a collection of Wild West artifacts owned by a former mayor which brought in nearly $4 million. It also monetized its parking assets, which included privatizing garages, in effect doubling the price of city parking which, for virtually the first time, they began enforcing…

[Jefferson County, Alabama’s] exit from bankruptcy? They cut their payroll, as well as almost a quarter of the workforce. They shut down many of their satellite courthouses in the suburbs, in addition to a number of “nonessential” services: A nursing home sold to a private operator (to the tune of $8.3 million), a public hospital shut down, and the closing of a massive county laundry facility. Patrick Darby, who represented Jefferson County in its bankruptcy filing, said “I have to say in all fairness, what we did here is easier than it would’ve been in California or up north because we don’t have unions… we don’t have public sector unions and so we don’t have to fight that if we want to lay people off.”

So what does this all mean? Every municipality comes up with its own unique solution, and in the case of Jefferson County that meant shutting down a “charity hospital;” in New York that meant laying off 6,000 school teachers who’d leveraged their pensions; and in Vallejo that meant making it possible for the courts to compel unions to break their collective bargaining agreements, a ruling which now extends to the rest of California, and, having some of the strongest labor unions in the country, seems plausible that it could extend to other states, too. And if we’re going to talk about rhetoric, unions are the group often identified as the primary problem behind fiscal insolvency—when, rather, it’s other underlying fiscal crises that make it impossible for those municipalities to fund the pensions they’d committed to long ago. As Marc Levinson says, “It’s just that we’ve made these promises to people who’ve given their lives in service based on this promise and now we can’t afford it!”

As the article notes, “the leniency of the U.S. bankruptcy code” helps allow this creativity. But, I wonder if this kind of creativity ever runs out – what if there is a bankruptcy that is simply too big (though it is hard to imagine one bigger than New York City in the 1970s) or there are too many at once (imagine three or four major cities going through bankruptcy at the same time or within a single state, like California) or creditors and local groups are simply unwilling to budge? What happens then? We haven’t reached that point yet…

Finding residential segregation in the Long Island suburbs

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Long Island might be suburban New York but there are sharp racial divides across suburban communities:

Two villages, Hempstead and Garden City, lie adjacent to one another in Nassau County. Hempstead has a medium household income of $52,000. Garden City’s is $150,000. Hempstead, in parts, resembles an inner city—with bodegas, laundromats, low-rise apartment buildings. Garden City is a suburban idyll, with tree-lined streets, gourmet grocery stores, and large colonial-style homes. Garden City is 88 percent white; Hempstead is 92 percent black and Hispanic (split about evenly). The transition between the two villages occurs within one block, a visual whiplash. See for yourself. Travel up North Franklin Street on Google maps.

“Long Island is becoming more diverse, Nassau County is becoming more diverse,” says John Logan, a Brown University sociologist who has been studying demographics since the 1970s. “But within Nassau County there’s been hardly any change in the degree of segregation. The predominantly minority areas are becoming more minority. And the predominantly white areas are staying mostly white.”

That demographic story of Nassau County, Long Island, is the story of the nation’s suburbs at large. Zoom way out, and it looks like the suburbs are becoming more diverse—a welcomed reversal of the racist housing policies of the last century that kept minorities in the cities. But zoom in, block by block, and you see that within those suburbs, stark segregational divides like the one between Hempstead and Garden City still exist…

Here’s the one data point to make that case: When Logan controls for income, he finds that blacks and Hispanics who earn over $75,000 a year live in areas with higher poverty rates than whites who make less than $40,000.

This is an old and ongoing story. As numerous scholars have pointed out, one of the first mass suburbs in the United States, the Levittown on Long Island, refused to have black residents for years. And, even as more minorities have moved to the suburbs in recent decades, whites and minorities don’t always live in the same places.

Read more about sociologist John Logan’s findings regarding Separate and Unequal in Suburbia here.

Presenting “McMansion man”

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David Siegel is wealthy and known for building the largest home in the United States (see my review of the film about its construction). Could he be known as “McMansion man”? Read this headline and story:

‘McMansion’ Man Gives Everyone a Raise

You of course remember the head of the Westgate Resorts timeshare billionaire whose efforts to build the largest home in the U.S. were the subject of the documentary “The Queen of Versailles.”

When last we heard from him, he prophesied that the election of Barack Obama would lead to economic ruin. He sent an email to his employees saying that the election of Obama will “threaten your job” and mean “less benefits and certainly less opportunity for everyone.”

It turns out his crystal ball was clouded. In a company-wide email to employees announcing that he was raising minimum wage to $10 an hour, he noted: “We’re experiencing the best year in our history.” It is not clear what he was paying them or how many of his employees will be impacted, but a company spokesman said it numbers in the thousands.

As I’ve argued before, Siegel is building much much more than a McMansion: a 90,000 square foot home is super mansion territory and is unlikely to show up anywhere near a typical suburban subdivision. (Perhaps this is illustrated best by the years it has taken Siegel to build his gargantuan home.) Thus, I don’t think he qualifies.

Who might qualify as “McMansion man”? What might such a superhero look like? Or, given the negative attention often paid to McMansions, perhaps a super villain. If you have read a lot of the press coverage of McMansion in the last 15 years or so, perhaps one of the executives at Toll Brothers deserves the title. (But, they are now into urban building.) Maybe the McMansion protestors in Los Angeles could name such a figure.

Plans for an Internet-driven Census in 2020

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The next dicennial census may just be largely conducted via Internet:

People may be asked to fill out their census forms on the Internet instead of sending them through the mail. Census takers may use smartphones instead of paper to complete their counts…

Despite outreach and advertising campaigns, the share of occupied homes that returned a form was 74 percent in 2010, unchanged from 2000 and 1990. The majority of the money the bureau spends during a census goes to getting everyone else to fill out their forms, Census Director John H. Thompson said…

Americans are ready for an Internet-driven census, officials said. During 2014 tests in in Washington, D.C., and nearby Montgomery County, Maryland, 55 percent of the families who were asked to fill out their census tests on the Internet responded without major prodding, an “exceptional response,” Thompson said. Census workers used iPhones to collect information in follow-up visits…

For government officials, going digital means they can do real-time analysis on areas to figure out which households have not responded, and be able to use their workers on the ground more efficiently, he said.

Three things I’d love to know:

1. Officials cite a high response rate but how accurate are the responses? In other words, who is likely to fill out the Census online? Internet users as a whole tend to skew toward younger and wealthier users (the digital divide) so this might skew the Internet data.

2. How exactly are households matched to email addresses? Or do people go to a website and input their own address which is then matched with a government database?

3. Given the threats to digital security, is the Census Bureau prepared to defend the data (particularly not allowing information to be matched to particular addresses?

NPR photojournal looks at “The end of Chicago’s public housing”

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NPR has put together an interesting site with photos and text that explores the demolition of Chicago’s public housing. Some of the more interesting lines:

Ironically, the [Robert Taylor Homes] were named for a Chicago Housing Authority board member who resigned in 1950 — in opposition to the city’s plans to concentrate public housing in historically poor, black neighborhoods…

The buildings became hulking symbols of urban dysfunction to the suburbanites who saw them from the expressway on their daily commute…

While some have described public housing as a tangle of failed policies and urban planning, to the people who lived there, it was home. But at the end of the 1990s, like the tenement residents before them, they were told that their world would be “transformed.” Many would not be able to live there anymore…

[After the demolitions:] People lost track of each other; the housing authority lost track of them.

A lot of lives were affected even as there really hasn’t been much public conversation about the fate of the public housing residents. Ironically, removing the high-rises may just have made the problems of housing in the Chicago region – and there is a lot of need for good affordable housing, evidenced by recent sign-ups for the public housing waiting lists – even more difficult to see.

See earlier posts about the demolitions of the last high-rises at Cabrini-Green here, here, and here.

Immigrants might save the American housing market?

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The real estate market may be sluggish but some data suggests immigrants offer hope with their desires to own homes:

But in some groups the dream, at least of homeownership, is alive and well. During the past two decades, immigrants have accounted for 27.5 percent of all household growth, according to the Harvard Joint Center for Housing Studies. When it comes to growth among younger generations, the foreign-born population is even more significant, accounting for nearly all the household growth for those under the age of 45.

Last year, immigrant households made up 11.2 percent of owner-occupied housing according to the JCHS—that’s up from only 6.8 percent in 1994…

The exact rate of homeownership varies among different immigrant groups, but overall the share of immigrants who own homes is growing. In 2000, the rate of homeownership among immigrants stood at 49.8 percent, according to a study by the Research Housing Institute of America. By 2010 the rate was 52.4 percent, and by 2020 that number will climb to about 55.7 percent, the study predicts. In the third quarter of 2014 the overall homeownership rate in the U.S. was 64.4 percent, according to the Census Bureau.

There are several reasons behind the growth rate in homeownership for immigrants, but part of the impetus may be that many immigrant populations are less cynical about the idea of homeownership than their American-born counterparts. “They view homeownership as a piece of the rock. It’s a benchmark of being settled,” says Dowell Myers, a professor at the Sol Price School of Public Policy at USC. “They view homeownership as the American Dream and they buy into that.”…

Even more compelling are the possibilities for homeownership among the children of immigrants. “When you look at the children of immigrants they actually exceed the native born on a lot of measures: on income, on education, on homeownership,” says Masnick.

Is there some irony here if it is conservative and older whites and immigrants who buy into the American Dream of owning a home the most? Of course, they may not be buying homes in the same places given ongoing patterns of residential segregation as well as different preferences of urban, suburban, and rural living.

“War Over Hollywood Sign Pits Wealthy Residents Against Urinating Tourists”

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GPS hasn’t just altered the lives of LA residents living on formerly quiet streets near the freeways – now, neighbors of the famous Hollywood sign have convinced Google and Garmin to remove their street off their maps due to an influx of visitors.

Everyone involved agrees that the situation has become a powder keg. “Neighbors have been yelling,” says Tamer Riad of Rockin’ Hollywood Tours. Homeowner Heather Hamza, whose husband, Karim, runs a diving company servicing film productions, claims she’s experienced “aggressive” tourists “cursing and spitting at me.” She adds that, after the recent holiday period, “There is rising, palpable tension between the residents and visitors. Everybody is infuriated. I shudder to think if any of these people coming up here have weapons in their cars. One of these days someone will get shot — it is that bad.“…

A sign originally erected to advertise a neighborhood to the world has become that neighborhood’s deepest frustration, and affluent residents have been fighting back. Although several thousand houses lie in Beachwood Canyon and neighborhoods adjoining the nearby Lake Hollywood Reservoir, most of the clamor comes from a few dozen activists in the area. They have lassoed various government and commercial entities into doing their bidding. They’ve persuaded Google, Garmin and other tech giants to literally take their exclusive neighborhood, where the average home costs $1.5 million, off the map for people searching for the sign. They’ve pushed City Hall to enact strict new parking regulations and to go after tour-bus operators. They’re fighting for the closure of a trailhead gate to Griffith Park and the removal of one popular viewing spot. And they’re not done.

Some residents say that a key element in winning the hearts and minds of city officials is a 30-minute advocacy film that, according to its producer, former actress and onetime Hollywoodland Homeowners Association president Sarajane Schwartz, required “thousands of hours” of collective labor and the expertise of “professional editors who live in the neighborhood and donated their time.” The wry narrative includes an overlaying of Stravinsky’s The Rite of Spring as doofusy tourists ride Segways, light up in hazardous areas and take nude pictures or pose with liquor bottles. THR was offered a rare screening of the closely guarded documentary: “We thought it would attract more people [if posted online] because it would just tell people where to go,” says Schwartz. “And we didn’t want it to end up on The Tonight Show — you know, making fun of us.”…

“There’s this privatization of public spaces in L.A., where people who are affluent expect to be insulated from the public,” says urban design professor Jenny Price, a visiting lecturer at Princeton and veteran of the Southern California coastal-access wars (she created the popular Our Malibu Beaches app, to David Geffen’s chagrin). “But the scandal here isn’t the wealthy homeowners. It’s the city’s complicity. Not just in getting permitted parking but in intentionally disseminating misinformation about a park they own. That’s the scandal.”

A fascinating story that raises important questions for cities: who gets to control access to public spaces? The sign is on public land (Griffith Park), streets are for the public, and yet wealthier residents want to control access and even knowledge disseminated on maps.

The article suggests the city needs a coherent plan:

Absent amid all the long-shot concepts are coherent, actionable steps to oversee access and shape tourism around a landmark. The city never has moved forward with clear plans to build a visitor center, properly control parking, manage trail access, strictly enforce rules (about smoking and alcohol, for instance) and inform visitors how to interact with the sign in a way that is satisfying and sensitive to residents. Imagine this type of chaos at the Statue of Liberty or Mount Rushmore (both are managed by the National Park Service).

Sounds like there is work to do to divert visitors, particularly if the city wants to respond to the wealthier residents while also keeping areas near the sign public (a visitor center just means people won’t really need to get that close).

“How solar power and electric cars could make suburban living a bargain”

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New technologies may help the American suburbs live on for decades:

[A] new National Bureau of Economic Research working paper by Magali A. Delmas and two colleagues from the UCLA Institute of the Environment suggests that recent technologies may help to eradicate this suburban energy use problem. The paper contemplates the possibility that suburbanites — including politically conservative ones — may increasingly become “accidental environmentalists,” simply because of the growing consumer appeal of two green products that are even greener together: electric vehicles and solar panels…

Installing solar panels on the roof of your suburban home means that you’re generating your own electricity — and paying a lot less (or maybe nothing at all) to a utility company as a result. At the same time, if you are able to someday generate enough energy from solar and that energy is also used to power your electric car, well then you might also be able to knock out your gasoline bill. The car would, in effect, run “on sunshine,” as GreenTechMedia puts it.

A trend of bundling together solar and “EVs,” as they’re called, is already apparent in California. And if it continues, notes the paper, then the “suburban carbon curve would bend such that the differential in carbon production between city center residents and suburban residents would shrink.”…

The reason is that, especially as technologies continue to improve, the solar-EV combo may just be too good for suburbanites to pass up — no matter their political ideology. Strikingly, the new paper estimates that for a household that buys an electric vehicle and also owns a solar panel system generating enough power for both the home and the electric car, the monthly cost might be just $89 per month — compared with $255 per month for a household driving a regular car without any solar panels.

Read on for the discussion of how both solar panels and electric cars are becoming cheaper to purchase and operate. Yet, I’m sure environmentalists and critics of sprawl would argue these costs aren’t the only ones incurred by suburban life. Other factors include using more land, spreading out services (from police to shopping centers), the resources needed to build and maintain individual properties, and the loss of community life.

This is another piece of evidence that the suburban based lives, the space where a majority of Americans live, is not likely to disappear anytime soon.