Tag Archives: Chicago region

Recommendation that many Chicago area highways have 60 or 65 mph speed limits

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A new investigation from an state agency suggests speed limits on several Chicago-area highways should be raised:

Higher speed limits on parts of I-294, I-88 and I-355 were recommended for approval Thursday by the Illinois Tollway’s customer service and planning committee.

According to the state’s vehicle code, the tollway is required to conduct an engineering and traffic investigation before raising its maximum speed limits.

The investigation — which took factors like prevailing speed, high-crash segments, access point density and the volume of traffic congestion into consideration — determined that the 70 mph maximum that is allowed by the state is not a “safe and reasonable increase in the speed limit” for certain sections of the highway…

Once all the necessary approvals are complete the Illinois Secretary of State can publish the updated rules and the new speed limit signs can be installed. Tollway officials estimate that the new speed limit signs could be posted this summer.

It sounds like safety concerns led to this slight increase. But, I would be interesting in seeing this study as the reasoning behind a slight increase is not clear. If prevailing speed is a factor, we know that a good number of Chicago-area highway drivers still go faster than the new 60 or 65 mph speed limits. How many more crashes and deaths will occur with a 60 or 65 mph speed limit? Does this mean Illinois is not joining the move toward zero-death roads? And if there is more damage, how is the positive side calculated (less time lost, less congestion, etc.)? At the same time, raising the speed limits won’t necessarily lead to faster driving; evidence from Michigan suggests people will continue to drive at the speed at which they feel comfortable.

Suburban communities add business district taxes but what are developers doing with the money?

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A number of Chicago suburbs have instituted business district taxes that partially funnel money to developers:

The business district tax is becoming more common as municipalities struggle to recover from the Great Recession and loss of shoppers to the Internet. Leaders in both Roselle and Villa Park initiated 1 percent business district taxes within the past year, the maximum rate on districts that cannot exceed 1 square mile. In some suburban locations, the additional business district tax can raise the sales tax to 9.25 percent, equal to the sales tax in Chicago…

Bloomingdale has two such districts. One adds a 1 percent sales tax to purchases inside Stratford Square and another adds the same percentage at Indian Lakes Resort, where it’s used to help pay off $4.8 million in village-issued debt that went to the resort for improvements…

Last year, the village paid the owners of the mall $1,199,151, which is more than 95 percent of all the money generated by the business district tax. Since the tax was implemented, the village has paid the mall owner more than $8 million. According to village finance records, the mall owner still is owed more than $11 million…

Lombard has a similar deal with its mall owner. The village instituted a 1 percent business district tax almost a decade ago. It helps push the sales tax rate at Yorktown Center mall to 9.25 percent.

Lombard’s deal allows up to $25 million in business district taxes to be rebated to Yorktown’s owner through 2024, in exchange for an addition that was built onto the mall where an abandoned Montgomery Ward once stood. So far, the mall’s owner has received almost $4.2 million from the business tax…

Taxpayers in Oakbrook Terrace are the ones with skin in the game. The city borrowed nearly $8.2 million to spur development of the Oakbrook Terrace Square Shopping Center. City officials did not return calls seeking comment about the city’s stake in the shopping center. However, according to the city’s budget documents, the investment has yet to pay off.

Given the problems facing the American shopping mall as well as the financial difficulties facing many suburbs, perhaps these suburbs think such taxes are necessary to help keep sales tax generators in the community. Yet, if the extra money generated is given to developers who then line their own pockets, how much is the local taxpayer helped? This raises similar questions to giving corporations tax breaks to locate their headquarters or facilities in suburban communities. Few politicians or residents want to lose a potential tax revenue generator – especially a large shopping mall, even if they are relatively ugly and detract from local businesses given their reliance on chain stores – but there is often little public discussion of the trade-offs involved with the tax breaks.

Are there suburban shopping centers that don’t have such a tax and if not, do they advertise to this effect?

Where are the ubiquitous Chicago pothole stories?

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As we emerge from winter, I thought today that I haven’t seen many pothole stories in the Chicago media. These are typically a staple of news coverage – see examples here and here. Here are some reasons why there may not have been so many stories this year:

1. The communities in the Chicago region did such a fine job filling potholes in recent years that the problem wasn’t so bad this year. This could be true; there are ways to address potholes that solve the problems for the longer term. Yet, the problems were acute in recent years and it sounded like municipalities were trying to fix things as quickly as possible plus there were added costs with salt supplies.

2. Other concerns have dominated the news. Perhaps it was the cold weather and snow cover. Perhaps the transportation news was dominated by future construction on areas like the Jane Byrne Interchange, I-90, and the proposed Illiana Expressway.

3. The weather has been so cold that potholes haven’t really formed yet since the roads were not thawing and freezing. Perhaps the potholes will really start emerging this week.

4. Perhaps I missed all the pothole stories?

Chicago area apartment market continues price increases

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With homeownership still moving downward in the United States, the apartment market in the Chicago suburbs keeps going up in price:

The median net rent in the Chicago suburbs rose to $1.29 a square foot in the fourth quarter, another record, up 4.7 percent from a year earlier, according to a report from Appraisal Research Counselors, a Chicago-based consulting firm. The occupancy rate was 95.3 percent, versus 95.1 percent a year earlier.

Suburban rents have increased five years in a row—they rose 21 percent over that period—as more people have held off on buying a home, either because they can’t get a mortgage or are wary of owning after the housing crash. More recently, the improving job market has boosted demand for all housing, and apartment landlords are getting their share.

On the supply side, new developments are sprouting up from Naperville to Northbrook. Developers completed more than 3,300 apartments in the suburbs over the past year, the most in a decade, and another 2,700 are under construction, according to Appraisal Research…

Yet the revenue side of the equation is about as good as it gets for suburban landlords. Market revenue performance, a metric that combines the occupancy rate and median net rent, hit $1.23 in the fourth quarter, the highest it’s ever been, according to Appraisal Research.

An interesting housing market these days. Starter homes are not being built. New McMansions are back even as older McMansions sell briskly. People are considering disaster chic. The luxury market is booming in big cities like New York.

If apartments are indeed popular because they offer more short-term flexibility, how many suburbs will allow the construction of many apartments? Historically, wealthier suburbs in the Chicago area tend to avoid apartments and their more transient residents. So, I would guess most of these new suburban apartments are actually higher end, the kinds of places appealing to young professionals or the just retired and often located near cultural or transportation amenities like denser downtowns and train stations. If so, more expensive apartments don’t help many in the housing market who still need reasonably priced and conveniently located housing in the Chicago region.

Teardowns back on the rise in the Chicago area

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Teardowns are back in wealthier Chicagoland communities:

Wilmette, for example, saw 48 teardowns last year. That’s way up from the 15 to 20 the North Shore town experienced annually from 2009 to 2011. “We’re almost back to the old average of 50 a year,” says John Adler, Wilmette’s community development director. “And the resurgence is attributable to developers getting involved again on the speculative side—not just people of means building their dream homes.”

Hinsdale, the priciest west suburban housing market, had 60 teardowns last year, versus 47 in 2013, says its community development director, Robert McGinnis. All but six of the single-family homes that started construction there in 2014 replaced teardowns. McGinnis estimates at least half of the new projects are being built on spec, as opposed to being custom-built…

The teardown candidates aren’t just tiny bungalows this time. Developers are targeting larger houses as well, particularly if they sit on coveted property. Antiquated plumbing, the absence of upscale amenities such as media rooms, and the high cost of gut rehabbing (roughly $300 a square foot, versus $200 for new construction) are pushing homes on North Shore lots near the lake into early retirement. Two properties that sold for around $4 million each in 2014—one in Wilmette and one in Winnetka—are on their way to the scrap yard, says Berkshire Hathaway HomeServices KoenigRubloff agent Joseph Nash. Both were on three-quarter-acre lots with private beaches, and the Winnetka house had seven bedrooms—big and nice, but apparently not nice enough.

While there will always be preservationists who bemoan these changes, Boyle says he hasn’t witnessed as much handwringing this time over the evolving neighborhood character in La Grange: “Most people are happy that people are updating homes, because they’re seeing the value increase for their own property.”

I want to know more:

1. Are some people (like the neighbors who get upset about such homes next door) going to be happy that teardown McMansions are back just because they signal a more vibrant housing market? Or, are these teardowns just another sign of the bifurcated market where the wealthy still have money to burn?

2. Do these teardowns today look significantly different than those of the early 2000s? Did builders learn any lessons or has the market shifted dramatically?

3. We might know that the housing market has really returned when teardowns are happening in communities that aren’t the usual suspects like Hinsdale, Naperville, Elmhurst, and the North Shore. Any activity in other suburbs?

Early 1990s proposal for Personal Rapid Transit in the Chicago suburbs

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Officials are still trying to develop effective mass transit in the Chicago suburbs but perhaps they missed something: an early 1990s proposal for Personal Rapid Transport from several suburbs.

I came across a 1991 “Proposal for a Personal Rapid Transit Demonstration System” from the Village of Rosemont. Envision, if you will, a network of autonomous, futuristic five-person pods zipping through the glassy canyon of corporate headquarters near O’Hare, alighting at their passengers’ chosen destination…

It wasn’t the only avant-garde transportation idea that the RTA was considering at the time “in an effort to coax drivers, particularly in the suburbs, out of their cars.” In June of 1992, as the competition to get PRT continued, the agency was also investigating SERCs, or “stackable electric rental cars,” approximately the size of a Honda Accord, with a range of 28 miles and a top speed of 50-60 miles an hour. The system would allow workers to take the Metra to a SERC station, drive the last few miles to the office or home, and return it by the next day—sort of like bike-share for tiny electric cars. It doesn’t seem to have gone beyond a symposium on the technology.

But the PRT plan got serious. Rosemont retained Winston & Strawn—around the same time the RTA hired them for lobbying work—at a cost of $50,000. They spent another $50,000 to prepare for the application. The mayor told the Tribune in May of 1991 that they were prepared to spend another $100,000 to get the RTA experiment. And Rosemont got the nod, though it took two years.

In 1998, eight years after and $22.5 million dollars after the RTA set it in motion, Rosemont’s PRT system came to life. It came to life on a test track at Raytheon in Massachusetts, but nonetheless, it existed, in RTA-emblazoned glory. RTA officials were pleased.

Moser suggests the plan was killed by two main factors: cost overruns and then Raytheon got out of this particular business. But, I just don’t see how this would have been attractive to average suburbanites. Monorail like lines would have to be constructed to connect major buildings and nodes; how many want to live around those (even with little noise)? It still requires a certain level of density in order to have consistent ridership. This might work great along office corridors – which the suburbs in on this proposal, Rosemont, Naperville, Deerfield, and Schaumburg, all have – where there are thousands of workers on a regular basis. The primary advantage is that people don’t have to ride with many others, something that wealthier commuters seem to like and would pay to get. But, in the end, this seems like a more private form of train/monorail/bus linking higher density areas.

Public homebuilders increase their Chicago area market share in the last 15 years

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What kinds of firms have built homes in the Chicago region has changed quite a bit in the last 15 or so years:

Public companies accounted for nearly 60 percent of the contracts for new homes in the Chicago market last year, up from 54 percent last year and well above the 11 percent market share they held in 1999, according to Tracy Cross & Associates, a Schaumburg-based consulting firm.

The top five builders in the Chicago area all were public companies, led by D.R. Horton of Fort Worth, Texas, with 517 local contracts signed last year.

The growth of public companies partly at the expense of private builders—a trend playing out in many markets across the country—will likely continue for the next few years until conventional banks grow more willing to finance land purchases and development, said Tony Avila, chief executive of Builder Advisor Group, a San Francisco firm that advises and raises capital for homebuilders.

Many private builders rely more on banks, which have clamped down on financing home construction since the financial crisis, while public companies have other options, such as issuing bonds or shares, Avila said.

Quite an increase since 1999. This reminds me of the shift from really small builders – often just a few homes a year – before World War II to the larger-scale construction afterward (often said to be illustrated by Levitt and Sons). Then (big housing need, new innovations) and now (economic crisis leading to new lending guidelines), broader economic and social conditions contributed to these changes.

With that said, how does this affect the average homebuyer and resident? Large-scale firms may offer economy of scale and therefore lower prices but they also might have fewer options in their housing designs and interiors and be able to construct larger developments, contributing to sprawl. Does the quality increase? Do homebuyers have a better experience in one versus the other?

Following the ideals of Gautraux to deconcentrate poverty in the Chicago suburbs

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The Gautreaux Program in Chicago preceded Moving To Opportunity and now there are more recent efforts to deconconcentrate poverty in the Chicago region:

After all, suburbs are no longer the bastions of privilege they once were (though majority white suburbs still, for the most part, are). Since the recession, it’s the exurbs in Chicago that have had job growth, while affordable housing near those jobs is often hard to find. Poverty is growing in suburbs across the country, including in Chicago, and moving families blindly out of the city may do more harm than good.

That’s why Chicago’s leaders are now focusing on helping low-income people live in mixed-income neighborhoods in both the suburbs and the city that have good access to transit and jobs, high homeownership rates, low commute times, walkable areas and a low percentage of people receiving public-housing assistance, said Robin Snyderman, a non-resident senior fellow at the Brookings Institution who also works as a consultant on housing policy in Chicago.

Nine housing authorities now participate in a regional pool of resources that began more than a decade ago. They include authorities in counties such as DuPage, Lake, and McHenry, using the money to build nearly 30 mixed-income developments in “opportunity areas” that are near transit and job opportunities.

“Just getting rental housing into some of these communities was hard to do for many years,” said Snyderman said.

A pilot program launched in 2011, the Chicago Region Housing Choice Initiative (CRHCI), encourages families to use vouchers to move to some of these locations, giving them counseling to help them do so.

Regional authorities and mayors have “adopted new tools for promoting inclusion and diversity, building on the lessons learned from Gautreaux,” she said. “I feel more hopeful that the historic segregation in the Chicago region can be transformed—because it’s now not all on the shoulders of the public housing authority,” she said.

See this earlier post about some of the results of the Moving To Opportunity program. These programs aren’t immediate panaceas and progress is often slow. It took decades to get Gautreaux into action and more time to assess results from MTO. Additionally, it can be difficult to get wealthier suburbs to buy in – if they do talk about affordable housing, it tends to involve seniors, young college graduates, or civil servants, not actually poorer residents.

In all, residential segregation is a difficult problem to address. If it is all left to the market, wealthier residents will move to nicer suburbs, maintaining or increasing their life chances, and then limit the access of others to move into their communities (even if they need them as workers in that community). Social programs can help but they can be costly, it takes time to assess their effectiveness, and it requires wealthier communities to get on board. This is one of those social problems that requires patience, active efforts, and time to see social change occur.

The county with the worst roads for traveling in the Chicago region

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The Chicago Metropolitan Agency for Planning has a new data tool online and it provides insights into the commuting experiences of Chicago area residents:

CMAP planners say it’s time to “get people excited about data.” The hope is CMAP’s constituents — Cook, DuPage, Kane, Kendall, Lake, McHenry, and Will counties — will use the facts to understand why certain projects deserve prioritization and funding. To access the data, go to http://www.cmap.illinois.gov/mobility/explore…

To that end, a section on ride quality includes detailed maps measuring pavement conditions on both expressways and major roads. A snapshot of counties’ ride quality on major roads puts Cook County with a 47 percent rating compared to 72 percent in DuPage, 80 percent in Kane and 83 percent in Lake and 90 percent in McHenry.

Other data available includes stats on bridges in need of repair, pavement quality, the number of passengers boarding at Metra and CTA stops and the worst railway crossings for delays in the region — FYI, it’s on Chicago’s South Side at Morgan Street and Pershing Road with 3,194 vehicles delayed a day.

Taken cumulatively, the website sends a message that the region’s infrastructure needs more capital to avoid gridlock, stagnant transit and deteriorating roads. The warning is timely, with a new governor in Springfield and a push for state and federal multiyear capital programs.

Two things strike me as interesting:

1. I always like the idea of putting more data into people’s hands. Commuting is a common experience and one that people would probably want to see improved. However, without data that moves behind individual and/or anecdotal evidence, it is hard to have conversations about the bigger picture in the region.

2. Some people may like data but it is another thing to translate that data access into collective action. Assuming that some people go to this site, will they then take an interest in infrastructure projects? Will they contact political officials? Will they vote differently? How exactly CMAP goes about putting this data into action is worth paying attention to.

Pace wants to “change the suburban transit environment” with new bus routes

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Pace has an ambitious proposal intended to link important areas in the Chicago area via bus:

A wide-ranging network of suburban bus routes could transform the way people commute and shop, connecting people to job centers in Naperville, Elgin and Elk Grove Village, according to an ambitious $2.3 billion plan shared by Pace on Tuesday.

Express buses with high-tech amenities would take riders from the south suburbs to O’Hare International Airport. Or from McHenry south to Oswego via Randall Road. Or from Evanston to O’Hare along Dempster Street.

And buses would travel on the shoulder of the Jane Addams and Edens expressways, bypassing car traffic…

Pace has submitted its plan for an innovative suburban Rapid Transit Network to Congress, which asked for candidates for a program called Projects of National and Regional Significance. The agency revealed details of its proposal to the Tribune on Tuesday…

The network is composed of two service types: arterial bus rapid transit and suburban expressway service.

Mass transit that connects suburbs is sorely needed in the Chicago region. The current system of buses does little to add on to the existing hub-and-spoke railway system that connects the suburbs to downtown. New buses provide a flexible form of transport compared to railroads; rather than having a fixed track and sunk infrastructure costs, buses can take advantage of existing important roads and highways.

However, I suspect this plan has a lot of hurdles to overcome even beyond the federal funding they are seeking.

1. How do you get suburbanites to consistently ride the bus? Trains are one thing but buses seem to have a different status.

2. Can schedules between mass transit options be lined up?

3. Can the buses actually get people to places rather quickly and at most times of the day? The current bus system tends to take long amounts of time compared to driving.

4. Perhaps the most important question: is there enough density along the proposed lines to have consistent numbers of riders who need to go where the buses are going? Density contributes to riders which leads to more buses which leads to more options. Going to the airports makes sense – both Chicago airports are busy (O’Hare may just be the busiest in the world again) – as does more highway buses to Chicago but linking residences and businesses is a more difficult task. Downtown Naperville may be lively but how many live near there who would commute by bus elsewhere? Are there concentrations of people living along Randall Road? I wonder if there is any way to encourage denser developments – apartments, condos, townhomes, rowhouses – near such bus lines to help provide more potential riders.