Tag Archives: Chicago region

Some Chicago suburbs welcome luxury apartments

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A number of Chicago suburbs have new or recently approved luxury apartment complexes:

Suburbs that have long thought of themselves as bucolic communities filled with houses and families are warmly embracing the very type of residence that used to make them leery: the apartment.

Just don’t call them rentals, a word that conjures up an image different from the projects that municipal governments are selling to their constituents. Almost 4,000 apartments in well-appointed, amenity-filled buildings with rents to match are under construction or proposed in suburbs throughout the Chicago area. They are designed to attract young professionals and empty nesters with roots in the suburbs…

Some, but certainly not all the projects are transit-oriented, constructed near suburban downtowns and train stations or they are being used to create a downtown where there never was one before. But as they move forward, communities are grappling with concerns about density and traffic congestion, and affordable housing advocates worry that low and moderate-income residents who rely more heavily on public transportation don’t have the option of living near it…

“Many of them equated rental housing with low-income property,” Strosberg said. “It’s more recent that they’ve appreciated that rental comes in all different forms. There’s market-rate housing that appeals to a significant portion of their residents who don’t want to make a commitment to buying a place today.”

In wealthier suburbs, apartments often prompt images of transient residents who don’t care much about the community, lower-income residents, traffic, and large properties in communities proud of nice single-family homes. But, luxury apartments help reduce the perceived issues of social class and can bring money into the city (perhaps they can even help boost property values, residents spend money at nearby businesses, etc.). In other words, luxury apartments don’t create the same kind of issues, particularly if seen as part of reviving an area like a downtown. These communities may not go crazy approving such developments all over the place but I suspect many mature Chicago suburbs will continue to approve apartments that do contribute to higher densities but project a higher-end image.

Using the Forest Preserve to protect thousands of acres

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The Chicago Tribune highlights the proactive efforts of the Cook County Forest Preserve to protect land:

Why does Cook County have a bigger, better-distributed array of preserves than does any other U.S. metropolis?

In part because indefatigable visionaries (1) projected metro Chicago to someday grow to 10 million people, (2) figured that property development would devour unprotected plots of land, and (3) staged their own land grab so greenery forever would punctuate urban sprawl. As public health pioneer Dr. John Rauch said after the Civil War in his much-cited push for a Chicago parks district, “we want not alone a place for business, but also one in which we can live.”

But the key stroke of brilliance came in 1904 from architect Dwight H. Perkins and landscape architect Jens Jensen. They studied Cook County’s still open lands and concluded: “Instead of acquiring space only, the opportunity exists for preserving country naturally beautiful. … Another reason for acquiring these outer areas is the necessity of providing for future generations …” The upshot was a state law that created the district and its mission statement — overwhelmingly tipped toward preserving and protecting lands, plants and animals rather than toward ball fields, playgrounds and other park-like recreation…

In January a blue-ribbon panel of outsiders set that 25-year agenda, including: Acquire another 20,000 prime acres selected by naturalists, rehab 30,000 acres overrun by invasive plants, and build a huge network of volunteers and members of a new Civilian Conservation Corps. We’re counting on a new policy council of volunteers with excellent conservation cred to ride herd on the plan. Distinguished groups such as Openlands and Metropolis Strategies also are on the case.

For those concerned about sprawl, efforts like those of the Cook County Forest Preserve, the DuPage County Forest Preserve, and other bodies have helped retain some open land amidst 9+ million residents in the Chicago region. These spaces are often more “natural” than sculpted parks even if I’ve heard hundreds of jokes about the lack of nature in northeastern Illinois (nature seems to equal hills or mountains for many). Chicago may be a world leader in regards to its lakefront parks but the collection of Forest Preserves across the region is also pretty unique.

On the other hand, it would be interesting to note how many Chicago area residents utilize these Forest Preserves that are within an easy drive for many. I drive past several DuPage Forest Preserve properties each day and yet I don’t think I visited any during this calendar year. (In contrast, I’ve used the Prairie Path dozens of times. This trail was started by citizens and today is maintained by a number of groups.) The Forest Preservers are supported with tax dollars so if people want a return on that money, they should utilize these spaces. (However, if everyone did, I suspect these places wouldn’t seem very natural.)

When a few people generate most of the complaints about a public nuisance

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The newest runway at O’Hare Airport has generated more noise complaints than ever. However, a good portion of the complaints come from a small number of people.

She now ranks among the area’s most prolific complainers and is one of 11 people responsible for 44 percent of the noise complaints leveled in August, according to the city’s Department of Aviation.

The city, which operates the airport, pokes at her serial reporting in its monthly report by isolating the number of complaints from a single address in various towns. It’s a move meant to downplay the significant surge in noise complaints since the airport’s fourth east-west runway opened last fall, but it only seems to energize Morong…

Chicago tallied 138,106 complaints during the first eight months of the year, according to the Department of Aviation. That figure surpassed the total number of noise complaints from 2007 to 2013.

The city, however, literally puts an asterisk next to this year’s numbers in monthly reports and notes that a few addresses are responsible for thousands of complaints. The August report, for example, states that 11 addresses were responsible for more than 13,000 complaints during that 31-day period…

But even excluding the serial reporters, the city still logged about 16,000 complaints in August, about eight times the number it received in August 2013.

There are two trends going on here:

1. The overall number of complaints is still up, even without the more serial complainers. This could mean several things: there are more people now affected by noise, a wider range of people are complaining, and/or this system of filing complaints online has caught on.

2. A lot of the complaints are generated by outliers, including the main woman in the story who peaked one day at 600 complaints. It is interesting that the City of Chicago has taken to pointing this out, probably in an attempt to

This is not an easy issue to solve. The runway issues and O’Hare’s path to being the world’s busiest airport again mean that there is more flight traffic and more noise. This is not desirable for some residents who feel like they are not heard. Yet, it is probably good for the whole region as Chicago tries to build on its transportation advantages. What might the residents accept as “being heard”? Changing whole traffic patterns or efforts at limiting the sound? Balancing local and regional interests is often very difficult but I don’t see how this is going to get much better for the residents.

Patterns in teardowns in Chicago’s inner-ring suburbs

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An architecture professor has found some patterns in the teardowns in inner-ring suburbs surrounding Chicago:

Together, the data set Charles studied included 591,101 single-family houses in Cook County suburbs [between 2000 and 2010], and she determined that 4,789 were redeveloped during that 10-year period. That’s less than 1 percent, but that 1 percent was concentrated and not just in the obvious suburbs one might think.

She found that the teardown phenomenon didn’t affect all communities, wasn’t driven just by developers (often a homebuyer was behind the first teardown in a subdivision), and wasn’t confined to tony neighborhoods where the rebuilt homes were expensive McMansions that stretched from one lot line to the other.

In fact, some of the municipalities that saw clusters of teardowns were suburbs with moderately priced houses and families with moderate incomes, and it was those communities that saw the most conspicuous difference in size between the old house and the new one that replaced it. Charles also found that most teardowns occurred in white and non-Hispanic communities, and in areas with highly regarded school districts.

The article continues with the typical arguments for and against teardowns. Her conclusions?

“I’m not entirely convinced this is gentrification,” Charles said. “If you look that the new house is three times as expensive, you’d think the household coming in would have a considerably higher income. By one definition, that’s a form of gentrification. But I’ve heard examples in Norridge of people who grew up in Norridge and wanted to stay there.”

I wonder if this is what is going on: the Chicago suburbs have experienced teardowns for decades but they were much more likely in higher-class suburbs like Elmhurst, Hinsdale, and Naperville. These suburbs had relatively expensive property so only those with a lot of money and who were really interested in the particular status conferred by these suburbs could pursue teardowns. However, now with those with less money or who are looking for “original” neighborhoods have spread out to other suburbs that offer good schools, good deals, and some status. In other words, the locations have become more diffuse as the practice spreads. This won’t necessarily spread to all suburbs – some just don’t have the status or schools or demographics that those with money will want to buy into. Yet, those looking for unique teardown opportunities may continue to seek out new suburbs.

“Which [Chicago] suburbs are income tax givers and takers?”

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The Daily Herald looks at income tax info to figure out which Chicago suburbs are giving or getting more money:

As a whole, the suburbs are more giving than Chicago and much of downstate when it comes to redistribution of income taxes, but individually the suburbs are a mixed bag, based on a Daily Herald analysis of Illinois Department of Revenue and U.S. Census Bureau data.

That’s because taxes are paid to the state based on wages earned, but the amount returned from the state is a fixed amount per resident…

This state’s income tax redistribution policy means some suburban areas like parts of Aurora got back more than 25 percent of what residents paid in income taxes, while other areas like Oak Brook and Barrington received less than 2 percent of the income taxes workers there paid…

Taxes on higher incomes cover not only the local share but also a bigger portion of the cost of operating the state. The distribution of the income taxes helps ensure all parts of the state have the resources to operate effectively, experts said.

The article makes it sound as if the experts generally agree that this is the way it should work: income taxes are paid and then the money redistributed to help provide services for others. Yet, isn’t this sort of analysis suggesting that this may not be “equitable”? The real question lurking here is what would be equitable and whether people should be getting back in services exactly or close to what they paid in. There is some disagreement here, illustrated by one Oak Brook official:

“Every municipality hopes to receive more than it currently does,” said Art Osten, Oak Brook’s interim village manager. “The reality is that the distribution of taxes collected by the state is a political question. We hope the determination of need and reallocation is done in a reasonable and equitable manner and that Oak Brook receives its fair share of what its residents contribute.”

On one hand, communities all want more tax money back and discussions in Illinois to lower the amount returned to municipalities would be met with resistance. On the other hand, Oak Brook wants its “fair share.”

Chicago area homebuilders, buyers expanding into cheaper Indiana

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Some homebuilders and homebuyers are seeking out locations in northwest Indiana that are still within the Chicago region but offer lower costs:

Casting aside long commutes, higher home prices and often mind-boggling property taxes, some Illinois residents are branding themselves as Hoosiers, and more Chicago-area builders are thinking of expanding into Lake County, Ind., to capture that business. Their arrival will change a housing market dominated by local companies for generations and prompt municipalities to act to make sure the growth comes on their own terms.

Three years ago, the region caught the attention of D.R. Horton, the nation’s largest homebuilder by revenue, and it began buying lots in established subdivisions and building homes. Finding success, the Fort Worth, Texas-based company this spring is seeking the zoning necessary for it to move forward with a deal to acquire about 90 acres of former farmland on the east side of Interstate 65 in Crown Point for a 200-home subdivision…

Between 2007 and 2011, a net total of more than 5,600 people relocated from Cook County to Lake County, Ind., according to census figures. More than 55,000 residents of the northwest Indiana county worked in Cook County in 2012, according to state figures obtained by Metrostudy, a housing consulting firm.

Commuting may become easier in years to come. Last week, Illinois and Indiana signed an agreement regarding the development of a 47-mile toll road, the Illiana Expressway, that would connect I-65 near Lowell, Ind., to Interstate 55 near Wilmington.

A few quick thoughts:

1. As the article notes, this might require Illinois residents to rethink their stereotypes of Hoosiers. I enjoyed living in the South Bend area during graduate school but I do remember being struck by the number of people who drove pickup trucks and smoked when I first moved there.

2. There are certain areas of the Chicago region that still have plenty of room for growth: northwest Indiana as well as south and southwest of Chicago in Illinois (roughly between Plainfield and Chicago Heights).

3. This article focuses on areas further in Indiana like Crown Point. According to Google Maps, driving from Crown Point to State and Madison in Chicago is just over 47 miles. That is quite a trip.

4. How much does the presence of Gary affect the willingness of people to move to northwest Indiana? Despite efforts to revive Gary, it still has a negative reputation. Imagine Gary and the surrounding area were nicer suburbs – how many people might want to live that close to Chicago as well as be near the shores of Lake Michigan? Instead, there is a community known for industry, depopulation, and a poor quality of life.

Chicago area transit problem: “Only 12 percent of suburbanites can get to work in less than 90 minutes via mass transit”

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As Chicago area leaders debate how local groups should approach regional mass transit, a Chicago Tribune editorial in favor of shaking things up says changes would make mass transit more accessible:

The group’s 95-page report suggests measures to curb the sort of political meddling that led to the resignations of six Metra board members. It also makes a case that a streamlined organizational chart would reduce corruption simply by limiting the number of actors…

Our region’s three transit agencies waste tax dollars on lobbyists to compete with one another for more tax dollars for parochial priorities, instead of developing a consensus vision that would lead to more investment. From 2002 to 2012, consolidated transit systems serving Boston, New York, Philadelphia, San Francisco and Washington, D.C., have spent almost twice as much per resident on transit as Chicago has, the task force says.

Lack of coordination between the CTA, Metra and Pace means that riders whose commutes involve switching from bus to train or vice versa are stuck with long waits, poor connections and multiple fare systems. The task force says only 12 percent of suburbanites can get to work in less than 90 minutes via mass transit.

That last figure is important: mass transit is really a limited option in the Chicago suburbs. While there are still transit issues in Chicago itself (expanding L lines, building more bicycles paths and lanes), the issues in the broader region often get overlooked. Suburban job centers are not connected. The railroad lines run into the city, meaning commuters can’t make connections to other lines often until they are in Chicago’s Loop. If the region was still centered on lots of jobs in the Loop, this all might make sense. But, it hasn’t been this way for decades and the suburban mass transit options have not kept pace.

Want more Chicago area mass transit? Have to find more tax dollars

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More mass transit may be good for the Chicago region but it will cost taxpayers:

A coalition of transportation advocates supported by Chicago Mayor Rahm Emanuel and Cook County President Toni Preckwinkle has recommended raising new tax money in Cook County to help pay for billions of dollars of mass transit improvements…

In a meeting with the Tribune’s editorial board, coalition leaders said that the board could potentially raise property, sales, or gasoline taxes for the local share. The money would help pay for such big-ticket projects in Chicago and Cook County as the long-sought extension of the CTA’s Red Line to the far South Side.

The Red Line extension and other billion-dollar projects like suburb-to-suburb Metra STAR Line have languished in recent years because federal funding for major transit endeavors has all but disappeared…

The coalition’s campaign comes on the heels of a Northeastern Illinois Public Transit Task Force report released Monday which concluded that current funding levels are insufficient to maintain current service, much less expand it.

I suspect it will be difficult to raise such funds when there are plenty of other needs for money in Chicago and Illinois. At the same time, I have little doubt that there are a number of mass transit projects that would be helpful in the Chicago area. Such projects could help limit road traffic, provide needed transportation options to places where driving cars (a relatively expensive task) is not as viable, and even potentially spur development around new mass transit options. But, the short-term cost is quite high.

The past importance of movie theaters to suburban downtowns and the difficulty of reviving them today

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The downtown movie theater was once an important part of suburbs but a number of these theaters have been difficult to revive in recent years:

Theater stories abound in the suburbs. The lavishly restored Paramount Theater in Aurora offers Broadway plays and big-name musical acts. The Arcada Theatre in St. Charles is another success story. Others — including the Wheaton Grand, Des Plaines Theater and Clearwater Theater in West Dundee — face uncertain futures after opening and closing multiple times in recent years…

Main Street theaters became popular in the late 1920s, when film was just emerging, Fosbrink said. Their construction boomed through the late 1930s and 1940s, particularly as suburbs took hold.

“Planning to have a theater in your town, or an opera house or something (for entertainment) was just as important as planning a city hall or fire station,” he said…

“People at this point in time are paying a lot more attention to how a theater can be a catalyst for economic development in a downtown business district,” Fosbrink said. “Theaters really can drive economic development, and we see a lot of that happening all over the country.”

Once a status symbol and source of local entertainment, these theaters are now possible ways to attract more people to a suburban downtown and hope they spend more money while they are there. Even though they aren’t really needed now (even the multiplexes have had a difficult time in recent years), they might anchor new entertainment districts where suburbanites don’t go to the city for culture but instead stay nearby.

It would be interesting to think about how many of these downtown theaters the Chicago suburbs could support. Particularly if they hope to all thrive, how much money is there to spread around?

In first half of 2013, roughly 20% of Chicago area home purchases by institutional investors

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A good portion of the homebuying activity in the Chicago region during the first half of 2013 was driven by institutional investors:

Chicago home prices climbed 11 percent in November from a year earlier, the biggest jump in almost a quarter century, according to S&P/Case-Shiller data. While gains are slowing across the country, the Windy City was one of nine areas in the group’s 20-city index to show a year-over-year increase in housing values…

Institutional investors, led by companies such as Blackstone’s Invitation Homes and American Homes 4 Rent (AMH), have bought as many as 200,000 U.S. properties in the last two years, taking advantage of real estate prices that fell as much as a third from the 2006 peak, and rising demand for rentals among Americans who lost their houses in the foreclosure crisis. Their reach has stretched from the hard-hit regions of California to small Ohio towns to the sprawling suburbs of Atlanta…

In Chicago, investors accounted for about 20 percent of purchases in the first half of last year, according to Geoff Smith, executive director of the Institute for Housing Studies at DePaul University in Chicago.

Like the portfolios of other investors, Invitation Homes’ Chicago-area holdings are mostly filled with properties in suburbs such as Barrington and Oak Park. The smattering of houses they own in the city itself is evidence that the rebound is starting to broaden. Even in some neighborhoods where prices fell more than the rest of Chicago during the foreclosure crisis, values are climbing.

The average homeowner may not pay much attention to this because at least their home values are increasing again. The Chicago area housing market has been sluggish and local media has made much of the uptick in home prices. Additionally, these investors are filling a void in the market.

But, this could lead to more questions in the long run.

1. What will these institutional investors do with these properties years down the road?

2. What happens when the Chicago market is no longer profitable for these institutional investors?

3. Does this mean that the average homebuyer has a better chance to buy a home or does this simply concentrate buying power in the hands of the already wealthy? In other words, this may not provide more affordable housing.

4. Since communities, particularly suburbs, tend to think homeowners are better community members than renters, is it a problem when so many homes are purchased with the intention of having more renters?