Infrastructure and the need for public relations

The Metropolitan Water Reclamation District of Chicago holds tours for the public. I recently participated in a live zoom version. You can watch a version here.

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The tour was very informative about water and processes. We learned about watersheds and the small hill that separates water going into the Great Lakes versus the Mississippi. We learned about how water is cleaned in water treatment plants. We learned about the reversal of the Chicago River. We learned about the Deep Tunnel system. All of this was accompanied by helpful visuals (maps, drone footage) and engaging hosts who answered questions as they arose.

And it was also a public relations exercise. We heard about the ways that the MWRD has improved. We heard about the benefits of all their efforts. They had booklets for people to access, including materials for kids and information in multiple languages. The presentation was smooth.

What the tour could not as easily touch on: is this the best way to deal with water and land in a metropolitan region? Are there harmful byproducts of these systems (how about forever chemicals in sludge sold to local farmers)? Does the Deep Tunnel system solve all the problems it was supposed to?

Infrastructure like this is essential to modern life. People expect clean water to be available. When it is not, it is very surprising. They may complain about water rates and tax bills, but the whole system as experienced in the United States is relatively cheap for consumers.

Thus, positive public relations involving infrastructure can help the public know about these systems that they contribute to and depend on. People do not like a highway construction project that is over budget and over time? They can be informed about how these processes work and about the benefits that will come eventually. The public does not like a rate hike? They can learn about all the amazing systems that make it possible to live modern life.

All of this does not mean that the public relations version should necessarily win the day. I am generally in favor of all of us knowing more about the infrastructure we rely on. Yet, there are also questions or concerns that public relations can not easily bat away. If we can have more informed conversation about infrastructure, perhaps we could avoid protracted debates or simplistic approaches.

Limited options for building wealth for those who cannot achieve homeownership

In an article examining building wealth through homeownership, there seem to be limited alternatives:

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Herbert says there are ways for renters to build wealth outside of home ownership, and he points to stocks and bonds as one example. In some cases, this may be a better investment than housing, he says.

“Renters can do well if they are able to put money into those financial instruments. The rate of return on stocks and bonds over the long term has certainly been higher than the rate of return on homeownership,” he says.

Still, Herbert is optimistic the housing market will improve in 2023 for those who want to go that route.

There are other investment options but this article does not expand much on them. The focus instead is on homeownership and the lengths people might go to achieve it or the ways opportunities might be expanded to more people.

One aspect of the article that struck me was the emotional component of status and success regarding homeownership. Owning a home and/or having a mortgage is not just a financial transaction that will likely pay off one day. It also involves providing for household members, signaling success, and joining a particular social class. It is hard to separate the financial investment and the emotional investment in American society.

Is the key then to promoting other investments or celebrating renting to successfully develop positive connotations and feelings? What if renting was viewed as a flexible form of provision that allowed households the nimbleness needed in today’s uncertain world? or, is investing in stocks and bonds an honorable investment in the future?

Finally, wealth and homeownership do not necessarily have to go together. New structures or systems might decouple this connection or provide multiple pathways to economic success.

When a sprawling suburban development in the Southwest loses its water supply due to drought

On the edges of the Phoenix metropolitan region, one recently constructed suburban development lost its access to water:

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Joe McCue thought he had found a desert paradise when he bought one of the new stucco houses sprouting in the granite foothills of Rio Verde, Ariz. There were good schools, mountain views and cactus-spangled hiking trails out the back door.

Then the water got cut off.

Earlier this month, the community’s longtime water supplier, the neighboring city of Scottsdale, turned off the tap for Rio Verde Foothills, blaming a grinding drought that is threatening the future of the West. Scottsdale said it had to focus on conserving water for its own residents, and could no longer sell water to roughly 500 to 700 homes — or around 1,000 people. That meant the unincorporated swath of $500,000 stucco houses, mansions and horse ranches outside Scottsdale’s borders would have to fend for itself and buy water from other suppliers — if homeowners could find them, and afford to pay much higher prices…

Water experts say Rio Verde Foothills’ situation is unusually dire, but it offers a glimpse of the bitter fights and hard choices facing 40 million people across the West who rely on the Colorado River for the means to take showers, irrigate crops, or run data centers and fracking rigs.

Given conditions in the West and Southwest, this could become more common for suburban areas. See earlier posts here and here.

One key from the article: when you move into a home, is the water supply guaranteed (as much as possible)? It sounds like there was an agreement to sell water to this new development. If you have such agreements or live in unincorporated areas or depend on other water sources, will they always be there?

Water is typically one of the lower concerns of those moving to the suburbs. It is assumed to be there. There might be the occasional problem with pipes, particularly in older homes, but the water should keep flowing. Other infrastructure concerns tend to take precedence; are there enough roads for new residents? Schools?

Without cheap water, it is harder to live the suburban life. As the article notes, how does one wash laundry or dishes with limited or really expensive water? Flushing toilets? This does not even get close to beloved amenities, like swimming pools.

More people working from home + smaller corporate offices = more coworking spaces?

Are recent trends coming together to make coworking spaces more popular? At least a few people think so:

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A distinct growth sector of the suburban office market, coworking has become a bastion of those downsizing from corporate space, fleeing the congestion of the city, or escaping the domestic distractions of working from home…

He said the New Jersey site opened at that Bell Works in March 2016 with 2,800 square feet. But as the popularity and future trending of coworking became clear, construction began on a 25,000-square-foot version elsewhere in the building — just before the pandemic.

Previously, the concept had been based on a desire in the market for flexibility and a better work-life balance. But the pandemic really hit the gas pedal for coworking…

While coworking sites already make up 7% of total office space, that amount is projected to reach 30% by 2030, she said.

Hauser, whose sister firm Workplace Studio also designs coworking spaces for others, said there are five elements that define coworking: flexible desks, meeting rooms, a sense of community, a community manager, and a source for economic development.

The transformation of office space continues.

One other factor hinted at in the experiences described in the article is this: a cool factor. The ability to access space in an interesting setting – such as the revamped Bell Works site in Hoffman Estates – with on-campus amenities is fun. Setting up coworking space in a quiet strip mall in a sleepy community would be less attractive. Being around energy and excitement helps make the the flexible workspace experience interesting.

I would be interested to know how much coworking space might emerge compared to the corporate office downsizing that might happen in the next few years. What percent will coworking occupy compared to the loss of traditional office space?

Accounting for the “iron law of congestion”

Why is building more lanes to address traffic issues not the best way to go? See the iron law of congestion:

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There’s a name for the principle behind that apparent paradox: induced demand. Economist Anthony Downs is often credited with first articulating this “iron law of congestion” in 1962, as construction crews were hacking interstates through American cities. Downs published a seminal paper with a stark warning: “On urban commuter expressways, peak-hour traffic congestion rises to meet maximum capacity.” In other words, adding lanes won’t cure snarled traffic; the additional car space inevitably invites more trips, until gridlock is as bad as ever.

Downs was not the first to sound an alarm about the futility of expanding urban roadways — not by a long shot. In 1932, an association representing streetcars warned that “as fast as improvements are made in existing arteries of travel … they are saturated by an increasing volume of traffic.” In 1955, urban observer Lewis Mumford wrote a series of essays in the New Yorker titled “The Roaring Traffic’s Boom,” in which he memorably compared a highway planner widening a congested highway to “the tailor’s remedy for obesity — letting out the seams of trousers and loosening the belt. [T]his does nothing to curb the greedy appetites that have caused the fat to accumulate.”

Downs’ iron law applies not only to U.S. cities, which have grown more traffic-jammed despite billions of dollars in fresh pavement, but also to those around the world. Highway expansions in Norway and Britain haven’t reduced congestion there, either. The principle now meets little opposition among economists and urban planners. “It’s widely accepted,” says John Caskey, who teaches induced demand as part of his urban economics course at Swarthmore College. “For economists interested in urban transportation, there isn’t really any debate.”…

But turning down a new highway lane remains politically challenging. “The highway construction system has vast momentum,” says Rose, the historian. “It has the authority of highway contractors, builders and labor unions. Here is something that labor and management really can agree on: a highway contract.” The auto industry, too, continues to benefit from ongoing investments that expand the “floor space” allotted to its products. In 2019, Tesla CEO Elon Musk tweeted that induced demand “is one of the most irrational theories I’ve ever heard.”

Build it and they will come.

As I read through the longer narrative in this article, it seems that the needs of the automobile were prioritized by drivers, businesses, those in the road industry, and politicians. This has been going on for roughly a century; would academic theories with evidence behind them be able to overcome these interests?

Perhaps at some point in the future, we will able to look back at “peak road” or “peak highway.” Is there a point where new roads and highways or lanes are no longer pursued in the United States? Even if population growth stagnated or slowed, would the United States continue to build roadways? Maybe the costs of maintaining all those roadways will help lead to this moment. It is hard to imagine other scenarios; even as fewer people drive to work compared to earlier years, traffic continues.

If winter was less harsh in the Chicago area, would residents like this?

Let’s say winters in the future in the Chicago region turn out to be not as cold, do not involve as much snow, and/or include more warm days. In just the last month, we have experienced wind chills of roughly -30 degrees below zero and 50 degree days. The Chicago region has had moments of winter but not a full month of winter. Would Chicago residents like a long-term shift away from winter?

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On one hand, many Chicago area residents complain about the winter. They make clear their opinions about the cold, snow, potholes, salt, longer traffic times, winter gear, heating bills, and more. At least a few vacation in warmer climates during the winter and some move to warmer climates.

On the other hand, it is hard to imagine the Chicagoland experience as it is known now without winter. What about the social capital created by griping together? The possibility of a white Christmas? The pride about shoveling and still doing life when talking to people in parts of the country where a light amount of snow shuts everything down? Invigorating winter outdoor activities? Supposed “Bears weather”? Jokes about the two seasons of winter and construction? And so on.

Perhaps new weather patterns would lead to a reconfigured understanding of what winter is. People can adapt to change over time. They can find different ways to bond and different experiences or group identities that bring them together. The long-told tales of the Blizzard of 1967 or Snowmageddon 2011 will fade further into the archives. Chicago could still have a winter that is different than the South or West even if it s different than what it is in the past.

How much time it could take to get the municipal funding to redevelop a shopping mall

As shopping malls decline, finding the money to redevelop the property could prove difficult. Here is the experience of one Chicago area suburb:

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When West Dundee trustees approved a special taxing district in 2016, they were hopeful it would breathe new life into Spring Hill Mall.

The mall showed some signs of hope when a new theater opened in late 2016. Overall, however, the mall stagnated and key anchors closed shop. By 2021, the village saw the property value of its share of the mall drop from a base value of $7.6 million in 2016 when trustees created a tax increment financing district for the mall to $2.5 million in 2021.

Now trustees are considering scrapping the 2016 TIF district and creating a new — and larger — one. The new TIF district would extend to Huntley Road to the north, Route 31 to the east and Route 72 to the south and would take in a Jewel grocery store to the west. And much like in 2016, officials are hopeful a new TIF with larger borders and a lower base property value would help transform the mall…

Despite the failure of the first TIF district, developers have indicated to village officials the money a TIF district could bring for redevelopment would be key to any transformation of the mall area, West Dundee Village President Chris Nelson said.

A successful TIF can help a municipality capture property tax revenues to put toward redevelopment, often in the form of infrastructure. This means that a developer does not need to pay for some of the necessary improvements – and presumably could profit more.

But, how much time and money is enough to entice a develop to go through with a significant redevelopment? At this point, the first TIF has existed for roughly six years. It did not work as intended; property values fell so there was not tax revenue to capture. Will expanding the district create enough revenue?

TIFs have timelines built into them; they are not intended to last forever. Should a suburb commit to decades for a TIF? At what point does a community throw in the towel in efforts to raise revenue or a commitment to a particular tax structure?

Many communities with shopping malls, big box stores, and other brick and mortar establishments will face these questions in the coming years. TIFs are one tool to use; what other options will emerge as popular and/or successful paths for communities to follow for redevelopment?

Economic cooperation in the Chicago region; Why now? Can residents be convinced of its need?

Skeptical that regional economic cooperation will succeed given the history of such projects in the Chicago region, the Chicago Tribune nonetheless touts its potential:

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A dynamic, cooperative region that thinks and behaves collectively has a better chance at prosperity than one that functions as an amalgam of fiefdoms.

We know that’s hard for politicians to grasp. They want to be able to tout in news releases that they’ve persuaded a mega-firm to relocate its headquarters to their turf, and it doesn’t matter that those jobs and tax revenue have been lured away from a nearby community.

But it does matter, because it’s not a win for the region. Municipalities that compete among themselves may win some skirmishes, but they’ll win the war if they band together and compete as a region — against other regions in the country and globally…

What’s missing is the will to capitalize on those assets collectively, rather than selfishly.

Perhaps this latest attempt at regional cooperation will gain the traction that previous tries could not. For the sake of Chicagoland’s short-term and long-term outlook, we hope so.

I wonder if this renewed interest has anything to do with concerns about population in the region and companies headed elsewhere. It is one thing to compete when the region compares favorably to many other places in the country. In this situation, there might be plenty of companies, residents, and growth to go around. But, in a region that is struggling or the perception is that it is struggling, can the different communities afford to compete with each other?

While the editorial mentions the need for politicians to change their approach, the public might need some time or convincing to get there as well. One way to define a community is in opposition to or as different from another community. How many suburbanites define their neighborhoods and communities in comparison Chicago and the troubles it faces? Might this also happen for some who live in Chicago and view the suburbs as problematic? (This does not even get to how Chicago area residents might view further-flung locations such as Indiana, Wisconsin, or downstate Illinois.) A robust regional partnership could help residents see the advantages to cooperating and recognizing the advantages numerous communities bring.

A hub-and-spoke highway system in the Chicago region leads to more traffic

In reaction to a new report suggesting Chicago area drivers faced the most traffic of any region, one expert highlights the design of the highway system in the region:

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The design of Chicago’s expressways are also partly to blame, as they funnel traffic into downtown.

“The design of our expressway system has hurt traffic flow for generations,” Schwieterman said.

The Chicago highway system consists of numerous paths leading right to downtown. Several of these highways converge at the Jane Byrne Interchange, leading to traffic and construction issues. Another connects to the lakefront just south of Grant Park. There are several ring highways but they do not necessarily connect all of the relevant parts of the region. One short highway famously went to neither place in its name.

This is not limited just to highways; the railroad system in the region also operates this way. Numerous early railroads ended right in the heart of the city and along the riverfront. The current system has all sorts of congestion issues with the amount of railroad traffic trying to move in and through the region. Railroad passengers in the region cannot travel easily between suburbs because most trips require going into the city first and then going back out on another line.

At one time, this system may have made sense. The Chicago region, as in multiple regions in the Northeast and Midwest, was organized with a dense commercial district at the core. Today, this makes less sense in many US metropolitan regions where the many trips and commutes are suburb to suburb. Throughout a region, suburbs are job centers, entertainment centers, and residential communities.

Reconfiguring infrastructure like highways, railroads, and mass transit to fit these new realities – perhaps now exacerbated by more employees working from home – is a long process with multiple avenues to pursue.

The ongoing process of reparations and housing in Evanston

Evanston, Illinois initiated a reparations program several years ago that would provide money for some Black homeowners. The process of funding, assessing applications, and providing monies is underway, even if it is slow-going:

But outside that ballroom, the program is failing to meet many of its initial promises. So far, the city has only spent $400,000 of the $10 million promised in 2019. Out of hundreds of Black residents who applied, 16 have received money. Another 106 are on a waiting list, with hundreds more behind them. At least five people have died before their promised reparations could be dispersed, the program’s leaders acknowledge.

City officials say these early stumbles don’t diminish their ambitions for the program, which is aimed at addressing decades of housing discrimination rather than slavery. And it’s just a starting point, they say…

The program quickly ran into problems. Instead of the three marijuana dispensaries the city was expecting, only one opened, bringing in a trickle of the tax money initially forecast. A year after the reparations effort launched, few were receiving housing vouchers…

Acknowledging the program’s slow start, the council voted in December to set aside an additional $10 million over ten years, this time from a tax on real estate sales over $1.5 million.

The fate of programs or initiatives can depend on the decisions made – and this article suggests there is ongoing discussion about whether this is the best path to pursue – as well as how they are carried out. A good or helpful decision that then gets bogged down by processes, bureaucracy, and funding is one that may be limited or worse in the end.

The portions cited above plus additional comments in the article also address the funding side of this. Can local governments effectively address the issue of reparations? Depending on the size of the community, budgets, money sources, and more, some communities will have more resources to draw on. What are the advantages to local efforts addressing housing and reparations compared to broader funding sources at higher levels of government that are also removed from the particular circumstances in individual communities?