Tag Archives: Chicago region

Oddity of Illinois Home Rule allows municipalities to get into a lot of debt

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The Chicago Tribune has an interesting piece of how the Illinois oddity of granting Home Rule powers to municipalities starting in 1970 can lead to overborrowing:

The state used to cap how much towns could borrow on the backs of taxpayers. Even for loans under the cap, the state forced cities and villages to put many “general obligation” borrowing deals before voters. The intent was to protect taxpayers from massive debt.

But local officials complained they needed easier ways to borrow. Chicago’s first Mayor Richard Daley led the charge for municipalities to set their own rules. The result was the 1970 Illinois Constitution and a concept that transformed how the city and suburbs are governed: home rule.

It has let towns borrow as much as they want, and raise many taxes, all without direct voter input. Any town with at least 25,000 residents gets the power. Smaller towns can vote it in via a referendum measure…

The vast majority of states — including all of the largest ones — do not offer municipalities such blank checks.

Ken Small of the Florida League of Cities said he would worry if his state had Illinois’ loose rules.

Read on for details on how several Chicago suburbs have accumulated massive amounts of debt.

I don’t think I’ve ever seen any municipal leaders denounce or reject Home Rule powers. Indeed, they tend to accentuate the positive sides of the powers as they allow municipalities more local control and the ability to finance projects on their own rather than having to rely on outside funding. And this would seem to fit with what many suburban residents tend to want as well: more local control, meaning that “big government” doesn’t control everything.

But, as this article suggests, local government officials aren’t necessarily any better at handling financing and borrowing. I was struck by reading this piece and an earlier one featuring the plight of Bridgeview, Illinois that a number of these borrowing situations arose when smaller communities wanted to jumpstart economic development. Struggling to do things on their own, they borrowed lots of money for retail, residential, and entertainment projects intended to bring in more tax dollars through property and sales taxes. A number of these projects didn’t pan out, possibly because of unrealistic hopes and also because the economic crisis made it difficult even for established and more financially stable communities to pursue larger developments. The lesson here? Perhaps slow and steady really is better here as big change for small communities is difficult to attain.

Another issue: the article suggests Chicago led the way to get the 1970 legislative act passed. Were some communities opposed to this or did they get behind Chicago as this could also benefit them?

ProCure proton therapy: you are not “close to downtown Chicago”

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I’ve heard plenty of radio commercials for the ProCure proton therapy facility in Warrenville, Illinois and one thing gets me every time: the ad claims the center is “close to downtown Chicago.” A few thoughts about this:

1. The actual distance from Chicago to the facility is 30 miles. While the drive is relatively simple (Eisenhower to I-88 and then about 0.6 miles off the Winfield Road exit), this is not “close.” It probably wouldn’t even qualify as nearby. In no traffic, this drive would take at least 35-40 minutes and during the day would be longer. In my world, 10 miles or less would be close to downtown Chicago.

2. I’m not sure why the facility was built in Warrenville: the land is conveniently located near an interstate, close to Central DuPage Hospital (CDH), I assume the land was cheaper than in or near Chicago, and was able to be put up in “record time.” And there was competition: Northern Illinois University wanted to build a proton therapy facility in West Chicago and CDH filed a lawsuit against NIU that was withdrawn when a regulatory board gave the go ahead to the Warrenville facility.

3. One reason they might make this claim is because not too many people have heard of Warrenville. Going to Warrenville, a small community, doesn’t sound as good as going to somewhere “close to Chicago.”

4. Another reason they may have made this claim is that they want to win market share in the Chicago region. The ProCure facility has teamed with CDH which provides care to western DuPage County and has designs on a larger healthcare footprint (with a recent merger with Delnor Hospital) but may not be familiar to all of Chicagoland. Perhaps the claim of being close to Chicago is more about winning the PR battle against Chicago hospitals such as University of Chicago, Northwestern, Rush, and Loyola.

Working with old Nike missile sites in the Chicago suburbs

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If one looks closely, there are still a few remnants of the Cold War in the Chicago suburbs: old Nike missile sites. One such site is being cleaned up in Vernon Hills:

The weapons and the equipment needed to fire them were removed decades ago, but the hatches and the concrete pad — and the bunkerlike magazine buried deep beneath them — remain…The Chicago area was home to more than a dozen Nike bases. They could be found in the city and in Addison, Arlington Heights, Naperville, Palatine and other communities, as well as at Fort Sheridan near Highland Park.

The Vernon Hills base included six underground missile magazines, a barracks, a headquarters building and other facilities, all surrounded by what was then cornfields.

Along with the other Chicago-area bases, the site represented a last-ditch effort to destroy any enemy bombers targeting the Windy City. Coastal defenses and air-to-air combat efforts would already have failed to stop invading planes.

Here is a list of the 265 Nike bases across the United States and the website for the Nike Historical Society.

The site in Naperville has since been remade into Nike Park. I suspect some younger residents might think this is named after the shoe company instead of anti-aircraft missiles. At the time of its use, this plot of land was outside of town though it is now clearly part of the I-88 corridor.

I wonder how much interest many communities would have in cleaning up and displaying these sites. Indeed, the Daily Herald article says the “the nation’s only restored Nike base, complete with a museum and public tours” is located in the Golden Gate National Recreation Area in San Francisco. In addition to the money this would require, these sites are decades old and they aren’t exactly conducive to the idyllic image many suburbs and communities would like to display. It is one thing to let someone else take care of the history in a museum somewhere and another to remind residents that there was once a military base in their sleepy community.

Daily Herald: Emanuel, Chicago raiding the suburbs without committing to “regional partnership”

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I posted Sunday about Chicago gaining Motorola Mobility and the suburbs (Libertyville) losing the firm. It is not too surprising that the Daily Herald, a newspaper serving Chicago’s suburbs, is not too fond of the move but they make a larger claim in an editorial: there isn’t much evidence yet that Chicago Mayor Rahm Emanuel is committed to “regional partnership.”

But today, Gov. Pat Quinn and Chicago Mayor Rahm Emanuel play by a different set of rules. This isn’t the first time Emanuel has raided suburban business with no significant attempt to forge any sort of regional partnership.

And while we appreciate Quinn’s efforts and relative success at keeping Illinois businesses in Illinois, his favoritism toward Chicago at the expense of the suburbs, at least in this case, is clear.

Though he was under no obligation to do so, Quinn signed off on the agreement to transfer Motorola Mobility’s incentive package to its move to Chicago.

And the thing is, that didn’t happen five minutes before the deal was announced. Yet, suburban officials were kept largely in the dark until the deal was done.

This is an ongoing point of contention in the Chicago region. When I heard Mayor Daley speak at Wheaton College, I noted that he talked about regional cooperation but evidence of this happening for some of the biggest issues has been lacking. Mayor Emanuel has made some overtures about the need for regional efforts but it appears that theDaily Herald(and perhaps others?) don’t think this has truly happened yet.

I wonder what it would take for the two sides, Chicago and suburbs, to truly feel like the other side is cooperating. If everything was equal, say both sides got the same number of large firms, would they each be happy? The Chicago area has a long history of many taxing bodies (see the example of 45 mosquito abatement districts in DuPage County here) and it is difficult to get all of these groups working together. Here is my short-term prediction: I suspect both sides will appeal for regional cooperation when they need outside help or funds from other groups but it will be very difficult for them to acknowledge regional partnerships when they might lose something.

Does Motorola Mobility moving to Chicago weaken the suburbs?

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With the news this past week that Motorola Mobility will be moving from Libertyville to downtown Chicago, a question arose: is Chicago’s gain the suburbs’ loss? Here is part of the discussion:

Rather than a zero-sum game of moving jobs from the suburbs to Chicago, Motorola Mobility’s planned relocation from Libertyville to the Merchandise Mart next year has many upsides. For one it’s another step for the city toward its goal of being a tech hub. That will not only give the company access to a coveted savvy urban workforce but also help Chicago stand out in the increasingly competitive global economy.

“The marketplace for knowledge-based industries favors dense, urban areas — it’s a global phenomenon,” said urban affairs specialit Frank Beal.

“This is not a choice between the city and the suburbs,” added University of Chicago economics professor Austan Goolsbee, “it is between Chicago and some other metro area.”

Goolsbee is correct if one takes a metropolitan view: it doesn’t really matter to the Chicago area if the headquarters is in the Loop or Huntley as long as the jobs, tax revenues, and prestige stay in the region. Yet, this is not so clear from a local perspective: Libertyville loses 3,000 local jobs and Chicago gains them. The mayor of Libertyville is disappointed:

The mayor of north suburban Libertyville says he’s disappointed Motorola Mobility has decided to move its corporate headquarters to downtown Chicago…

The mayor of Libertyville, Terry Weppler, said there are no hard feelings against Emanuel.

“I’ll put our community up against Chicago any day, you know, for any type of amenity whatsoever,” he said…

He said his next plans involve brainstorming what could fill Motorola’s giant corporate campus once it empties out.

I’m not sure Libertyville would win that battle of amenities. And it is clear that Chicago leaders are pretty happy.

But this may be part of a larger trend of large companies seeking out the more exciting and younger life of big cities:

The move brings jobs downtown — part of a reversal of fortune in which the city is now snatching corporations from suburbia. And as a result, a building type with a future that once seemed rock solid now appears under threat. United Airlines vacated its 66-acre Elk Grove Township headquarters — it even has tennis courts — for downtown Chicago beginning in 2007. The campus, designed by SOM, won three different American Institute of Architects awards since its completion in 1968.

The United Airlines campus is for sale. And it isn’t alone. On any given week, the internet and the back pages of trade journals are filled with “for sale” ads for suburban office parks and headquarters. It wasn’t always this way. Much like suburban shopping malls, these corporate utopias — air conditioned, new, private and safe — were once very much the hottest thing around. From the 1960s through the end of the 20th century, corporations — Motorola, Sara Lee, and more — left Chicago for a new life in the ‘burbs.

But now things are changing. Corporations are downsizing and the new generation of workers does not want to toil in the suburbs. A story last week in the Boston Globe discusses how young workers in the tech and creative fields prefer working in cities and getting to work by public transit.
This would fit with recent data suggesting younger adults are not as interested in the suburban life of the Baby Boomers. But it could take some time for suburban communities to figure out what to do with these large office complexes (see an earlier post about the fight in Hoffman Estates about tax breaks for the incomplete Sears complex) , particularly in a down economy where many shopping malls and lifestyle centers are having difficulty.

Of course, the tax breaks to stay in Illinois are still intact with the move:

But Mobility executives pledged a year before the Google takeover to keep Mobility’s well-paying engineering, finance, marketing, design and executive jobs in Illinois so Mobility could benefit from statewide tax credits worth more than $100 million over a 10-year period.

Gov. Pat Quinn said at a news conference in Deerfield that he gave Google “permission” to move from Libertyville to downtown Chicago, since that was the location Google preferred.

Pat Quinn has to provide his permission?

In the end, I would say that moves such as these are not necessarily bad but they could have negative consequences for the community that large corporation is leaving. Just as the big cities of America were hurt by the move of corporations to suburban office parks after World War II, there are negative consequences for suburbs when the move is made in reverse. It will be interesting to see how these moves add to or re-energize urban life. For example, one could look at how many of the Motorola Mobility employees will move to the city after their job moves there. Similarly, is there a way to quantify how much better Motorola Mobility will do once it is located in the city rather than suburbs?

Tourism in Chicago suburbs grows; reminder that suburbs are also destinations

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I was intrigued to see the news that tourism in the Chicago suburbs, as well as in Illinois on the whole, was up in 2011 compared to 2010:

Local counties were among those gaining the most tourism dollars across the state during 2011, which is fueling a so-called road show with state officials touting those numbers to help keep the momentum going.

Cook and DuPage counties saw revenues climb more than 8 percent. Kane, Lake, McHenry and Will counties saw about 6 percent more revenue pouring back in after some tough years, according to the Illinois Office of Tourism and the Department of Commerce and Economic Opportunity…

Cook County, which includes Schaumburg, Chicago and other cities, had garnered about $19 billion of tourism dollars in 2011, an 8.4 percent increase over 2010. Next up was DuPage County which received $2.1 billion, an increase of 8.1 percent.

Overall, the state got a record $31.8 billion during 2011, an increase of 8.4 percent from 2010. The number of visitors in Illinois also set a record with 93.3 million in 2011, up 10.2 percent from 2010 and passing the previous record of 91 million in 2006.

These statistics suggest that tourism in Chicago still dwarfs what goes on in suburban counties: Cook County has has roughly 9 times as many tourism tax dollars as DuPage County and nearly 5 times as much as DuPage, Lake, McHenry, Kane, and Will counties put together. At the same time, these suburban tourism tax dollars are not small amounts. The DuPage County figure is impressive: the county had $2 billion dollars in taxes from tourism. This is part of a larger point that can be made about suburbs: they are not just simply places to live but are now locations where visitors come to visit, shop, and partake in cultural and recreational opportunities. Suburban residents don’t have to go to the big city for all of their trips or cultural opportunities: there are places where they can and do spend their money in the suburbs.

Questions about a study of the top Chicago commuter suburbs

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The Chaddick Institute for Metropolitan Development at DePaul just released a new study that identifies the “top [20] transit suburbs of metropolitan Chicago.” Here is the top 10, starting with the top one: LaGrange, Wilmette, Arlington Heights, Glenview, Elmhurst, Wheaton, Downers Grove, Naperville, Des Plaines, and Mount Prospect. Here is the criteria used to identify these suburbs:

The DePaul University team considered 45 measurable factors to rank the best transit suburbs based on their:

1. Station buildings and platforms;

2. Station grounds and parking;

3. Walkable downtown amenities adjacent to the station; and

4. Degree of community connectivity to public transportation, as measured by the use of commuter rail services.

A couple of things strike me as interesting:

1. These tend to be wealthier suburbs but not the wealthiest. On one hand, this seems strange as living in a nicer place doesn’t necessarily translate into nicer mass transit facilities (particularly if more people can afford to drive). On the other hand, having a thriving, walkable downtown nearby is probably linked to having the money to make that happen.

2. There are several other important factors that influence which suburbs made the list:

Communities in the northern and northwestern parts of the region tended to outperform those in the southern parts, with much of the differences due to their published Walk Scores. Similarly, communities on the outer periphery of the region tend to have lower scores due to the tendency for the density of development to decline as one moves farther from downtown Chicago. As a result, both Walk Scores and connectivity to transit tended to be lower in far-out suburbs than closer-in ones.

It might be more interesting here to pick out suburbs that buck these trends and have truly put a premium on attractive transportation options. For example, can a suburb 35 miles out of Chicago put together a mass transit facilities that truly draw new residents or does the distance simply matter too much?

3. I’m not sure why they didn’t include “city suburbs.” Here is the explanation from the full report (p.11 of the PDF):

All suburbs with stations on metropolitan Chicago’s commuter-rail system, whether they are located in Illinois or Indiana, are considered for analysis except those classified as city suburbs, such as Evanston, Forest Park, and Oak Park, which have CTA rapid transit service to their downtown districts. Gary, Hammond, and Whiting, Indiana, also are generally considered cities or city suburbs rather than conventional suburbs, because all of these communities have distinct urban qualities. To assure meaningful and fair comparisons, these communities were not included in the study.

Hammond is not a “conventional suburb”? CTA service isn’t a plus over Metra commuter rail service?

4. The included suburbs had to meet three criteria (p.11 of the PDF):

1) commuter-rail service available seven days a week, with at least 14 inbound departures on weekdays, including some express trains;
2) at least 150 people who walk or bike to the train daily; and
3) a Walk Score of at least 65 on a 100-point scale at its primary downtown station (putting it near the middle of the category, described as “somewhat walkable”).

This is fairly strict criteria so not that many Chicago suburbs qualified for the study (p.11 of the PDF):

Twenty-five communities, all on the Metra system, met these three criteria (Figure 2). All were adjacent to downtown districts that support a transit-oriented lifestyle and tend to have a transit culture that many find appealing. Numerous communities, such as Buffalo Grove, Lockport, and Orland Park, were not eligible because they do not currently meet the first criteria, relating to train frequency. Some smaller suburbs, such as Flossmoor, Kenilworth and Glencoe, while heavily oriented toward transit, lack diversified downtown amenities and the services of larger stations, and therefore did not have published Walk Scores above the minimum threshold of 65.

I can imagine what might happen: all suburbs in the top 20 are going to proclaim that they are a top 20 commuter suburb! But it was only out 25…

5. There are some other intriguing methodological bits here. Stations earned points for having coffee available or displaying railroad heritage. Parking lot lighting was measured this way (p.24 of the PDF):

The illumination of the parking lot was evaluated using a standard light meter. Readings were collected during the late-evening hours between June 23 and July 5, 2012 at three locations in the main parking lots:
1) locations directly under light poles (which tend to be the best illuminated parts of the lots);
2) locations midway between the light poles (which tend to be among the most poorly illuminated parts of the lot); and
3) tangential locations, 20 and 25 feet perpendicular to the alignment of light poles and directly adjacent to the poles (in some cases, these areas having lighting provided from lamps on adjacent streets).

At least three readings were collected for category 1 and at least two readings were collected for categories two and three.

There is no widely accepted standard on parking lot lighting that balances aesthetics and security. Research suggests, however, that lighting of 35 or more lumens is preferable, but at a minimum, 10 lumens is necessary for proper pedestrian activity and safety. Scores of parking lot illuminate were based on a relative scale, as noted below. In effect, the scales grades on a “curve”, resulting in a relatively equal distribution of high and low scores for each category. In several instances, Category 3 readings were not possible due to the configuration of the parking lot. In these instances, final scores were determined by averaging the Category 1 and 2 scores.

I don’t see any evidence that commuters themselves were asked about the amenities though there was some direct observation. Why not also get information directly from those who consistently use the facilities?

Overall, I’m not sure how useful this study really is. I can see how it might be utilized by some interested parties including people in real estate and planners but I don’t know that it really captures enough of the full commuting experience available to suburbanites in the Chicago suburbs.

Myron Orfield on how to help keep the suburbs, like those of Chicago, diverse

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Myron Orfield is known for his efforts to argue for more comprehensive metropolitan cooperation and planning. In this piece at Atlantic Cities, Orfield explains how to help the suburbs remain diverse:

Yet, while integrated suburbs represent great hope, they face serious challenges to their prosperity and stability. In America, integrated communities have a hard time staying integrated for extended periods. Neighborhoods that were more than 23 percent non-white in 1980 were more likely to become predominately non-white (more than 60 percent non-white) during the next 25 years than to remain integrated. Illegal discrimination — in the form of steering by real estate agents, mortgage lending and insurance discrimination, subsidized housing placement, and racial gerrymandering of school attendance boundaries — is causing rapid racial change and economic decline…

By 2010, 17 percent of suburbanites lived in predominantly non-white suburbs, communities that were once integrated but are now more troubled than their central cities, with fewer prospects for renewal. Tipping or resegregation (moving from a once all-white or stably integrated neighborhood to an all non-white neighborhood), while common, is not inevitable. Stable integration is possible. However, it does not happen by accident. It is the product of clear race-conscious strategies, hard work, and political collaboration among local governments.

Critical to stabilizing these suburbs are the following strategies:

  • Creation of local stable integration plans with fair housing ordinances, incentives for pro-integrative home loans, cooperative efforts with local school districts, and financial support of pro-integrative community-based organizations.
  • Greater enforcement of existing civil rights laws including the Fair Housing Act, especially the sections related to racial steering, mortgage lending discrimination and location of publicly subsidized affordable housing.
  • Adoption of regional strategies to limit exclusionary zoning and require affluent suburbs to accommodate their fair share of affordable housing.
  • Adoption of metropolitan-scale strategies to promote more integrated schools.

This tipping point phenomenon goes back to the research of Thomas Schelling who identified points where residents will start leaving a neighborhood with an influx of certain new residents. Research suggests that whites start leaving more diverse neighborhoods when the neighborhood becomes roughly 10-20% non-white.

It’s too bad Orfield doesn’t go further with this and talk about suburbs where this has successfully taken place. In his book American Metropolitics, Orfield talks primarily about inner-ring suburbs that now have more diverse populations. The Chicago metropolitan region maps included in this post are fascinating: between 2000 and 2010, a number of suburbs became more diverse. I’ve included the 2010 map from the Institute on Metropolitan Opportunity below:

Some quick observations:

1. The diverse suburbs have moved far beyond just the inner-ring suburbs.

2. The south and west suburbs are most diverse. There are a number of African-American suburbs just south of Chicago and the diverse population west of Chicago is primarily Latino with growing numbers of Asians.

3. The wealthier North Shore suburbs are the largest pocket of predominantly white suburbs though there are a number of these white suburbs sprinkled throughout the region. It is interesting to watch how these suburbs adapt to the growing diversity around them.

4. The most diverse suburbs appear to be ones with cheaper housing and more manufacturing and service jobs. There are some wealthier more diverse suburbs such as Oak Brook but I suspect the diversity in these suburbs is not also class diversity.

So Orfield’s four recommendations would help preserve this map and even increase diversity? Without much metropolitan cooperation, the Chicago suburbs have become more diverse. Perhaps Orfield might argue the suburbs would be even more diverse if metropolitan efforts had been undertaken. However, these maps obscure several important features such as social class and availability of nearby jobs.

Study suggests political corruption needs to be investigated in the Chicago suburbs

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A new study from a political scientist argues that political corruption is a big problem in a number of Chicago suburbs:

The study by the University of Illinois at Chicago documented criminal convictions or conflicts of interest affecting more than 60 suburbs in Cook and surrounding counties and more than 100 public officials and police officers.

Former Chicago Alderman Dick Simpson, now head of UIC’s Political Science Department, led the study, and on Monday said corruption in the suburbs, in some cases, is worse than in the city.

“This isn’t a minor problem,” Simpson said. “This is a major problem.”

The IG could either be created by lawmakers and the governor, by each county, or by a consortium of suburbs. It would cost about $1 million annually, far less than the $500 million estimated cost of the problem, according to the study.

So the “Chicago way” extends past the city borders and even Cook County. I wonder if it is even easier to be corrupt in smaller communities where there is less of a media spotlight and relatively few residents are heavily involved or are knowledgeable about local government.

Even if the corruption is widespread, would officials and the public be willing to support an independent inspector general looking into these matters as it creates another layer of government?

It would be interesting to know how these numbers compare to corruption in other metropolitan regions: is Chicago that unusual in this regard?

Chicago housing values reverse 49 month slump – with a $100 gain

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The latest data about median housing values in the Chicago region suggests prices are back up – but only a little:

May’s 0.1 percent year-over-year gain in the median sales price of existing homes in the nine-county Chicago area broke a 49-month losing streak that stretched to April 2008. The last time they showed a year-over-year increase was March 2008, the month John McCain earned enough delegates to secure the Republican presidential nomination.

Does that $100 finally signal a turnaround for Chicago’s housing market, particularly because, from May 2010 to May 2011, the median price dropped 10.8 percent?

“What it signals is the first stage of the bumpy ride at the bottom,” said Geoffrey J.D. Hewings, director of the regional economics applications laboratory at the University of Illinois. “I think the trend is going to be modestly positive, but there may be months where it is not.”…

Not every county recorded improvement in its median price, but in Cook County, which accounts for more than half the Chicago area’s sales activity, the median price rose 3 percent, to $170,000, from $165,000 in May 2011. And in Chicago, where overall sales rose 19.6 percent, May’s median sales price of $203,000 was up 6.8 percent from a year ago, largely because of an 11.9 percent gain in the median sales price of single-family homes.

My take: the housing recovery will still take quite a while. A $100 increase the region probably doesn’t mean much and it is not until we see a number of consecutive months of an uptick that we can claim this is a trend. Even then, it could take years (decades?) to make up the drop in housing values.