Tag Archives: Chicago

How much money a third observation deck in Chicago might generate

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Potential buyers of the Aon Tower in downtown Chicago are looking into making money through the addition of an observation deck:

A third observatory could generate tens of millions of dollars in annual revenue for the 1,136-foot-tall office building overlooking Millennium Park. The building, owned by Johns Creek, Ga.-based Piedmont Office Realty Trust, is attracting bids above $650 million, people familiar with the sales process say…

It would cost millions of dollars to design the space, to create an entrance and elevator access separate from those used by office tenants, and to promote and operate the observatory. Plus, unlike in most cities, two formidable competitors already are in place.

“It’s not a build-it-and-they-will-come type of operation,” says Randy Stancik, who has been general manager of the Skydeck for 10 years after eight years at the Hancock’s observatory. “You really have to work at it to build a visitor attraction. You have to be prepared to stay with it through some rough times.”…

There is little precedent to indicate whether a third observatory can thrive here. New York is the only city in the world with three, says Daniel Thomas, executive director of the World Federation of Great Towers, a group dedicated to generating tourism for its 49 member towers. New York has the Empire State Building Observatory, Top of the Rock at Rockefeller Center and the recently opened One World Observatory atop the new One World Trade Center.

This could be another front of the ongoing Chicago-New York City feud: could the two cities have an equal number of observation decks?

I would guess the Aon Center could have two major selling points compared to its competitors:

1. A different location. The Sears Tower deck is quite good for looking out into the suburbs but its views to the east are filled with buildings. The John Hancock observation deck offers different views to the north and over Lake Michigan. But, the Aon Center would be the only one with unobstructed views of Millennium and Grant Parks.

2. It is the newest. This may not mean much these days with a sort of arms race between the other two observation decks: the glass floor protruding deck at the Sears Tower and the Tilt at the John Hancock. I imagine the Aon Center buyers could come up with something unique that could attract people.

Perhaps this could lead to some sort of price wars between three observation decks leading to great deals for visitors…this is something I imagine people could get behind.

Chicago Epic marketing cut due to state budget

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Chicago rolled out an “Epic” campaign this spring to attract tourists but it is now no more due to a lack of state funding:

Chicago’s latest tourism campaign, Epic, is about to end two months early thanks to epic budget cuts at the state level.

Choose Chicago, the city’s tourism program, is losing 40 percent of its operating budget in the latest set of state budget cuts, according to Crain’s. That means Epic, the (perhaps unimaginative) summer tourism campaign launched in April with a TV ad encouraging viewers to “be part of something epic,” would end July 1 rather than run through the summer. Unless they are talking about an epically rainy June, the campaign ending this early wouldn’t leave much sizzle in the summer tourism industry.

Choose Chicago CEO Don Welsh said in statement that the program will lose most of its funding, from the state hotel tax, unless there is a last-minute approval of the state’s 2016 fiscal budget—increasingly unlikely as the week progresses…

The loss of Epic could deal a blow to Mayor Rahm Emanuel’s vow to boost tourism to 55 million visitors by 2020. Crain’s says Rauner, who was once the chairman of Choose Chicago, believes tourism is a boon to the local economy.

Two quick thoughts:

1. If you go with a catch term like “epic,” it is bound to be used sarcastically if something goes wrong (like the campaign ends early). Not exactly epic…

2. How do we – the public – know that such marketing campaigns work? Even though the Epic campaign is ending early, did it have any influence? Did the slogan catch on? What does this mean for future Chicago marketing campaigns? Just because a big campaign was out there doesn’t mean that it did much in this media and advertising saturated world.

Explaining why four Chicago neighborhoods haven’t had a murder in 3.5 years

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Given Chicago’s reputation for violence, why have four Chicago neighborhoods – Mount Greenwood, Edison Park, Forest Glen, and North Park – not had a murder in recent years?

According to census data, 15,228 “law enforcement workers” live in Chicago, including about 12,100 police officers. Mount Greenwood, Edison Park and Forest Glen have some of the highest percentages of residents in the city working in law enforcement.

Crime in general is also low in these communities. For instance, between 2012 and 2014, not a single person was shot in Edison Park, which also reported only one criminal sexual assault. Forest Glen reported two sexual assaults. North Park had just 13 burglaries — which police Supt. Garry McCarthy calls a bellwether crime.

The city’s safest communities also have a high percentage of home ownership…

Another factor that stands out about some of the safest communities is wealth…

People in low-income neighborhoods tend to have a strong sense of community — with families living there for generations and looking out for one another, Papachristos says. But many young men have gravitated over the years toward gangs in those same neighborhoods, he says.

This article reads like a list of reasons for why crime happens in the first place (though at least broken windows theory is not invoked) and social scientists have found a range of reasons that might work in some situations and not others. However, we would suspect that areas that are wealthier have less crime as more people are living comfortably in the formal economy. This doesn’t mean these neighborhoods have no crime; there may be less violent crime but there are still some property crimes and likely crimes that are not caught including drug offenses and white collar crime (these might be even harder to uncover in wealthier areas).

If we follow the logic of this article, we would want to move high-crime areas toward the experiences of wealthier, higher quality of life neighborhoods that do exist in Chicago. Who is willing to take the steps to help this happen?

The “Black Tax”: higher property taxes for black homeowners in order to eventually seize homes

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A new study looks at a practice common in Chicago and other cities where raised property taxes for black residents helped others take their homes:

Kahrl’s case study, which was released this month by the Journal of Urban History, traces the practice of tax-lien speculation to a 1951 reform in Illinois state law called the Revenue Act. During the same years when “redlining” emerged as a severely racially discriminatory mortgage practice, assessors in cities such as Chicago systemically over-valued homes in black neighborhoods for property-tax purposes…

Tax-lien speculation proved to be one hell of a business. Over the course of six months in 1973, for example, Gray acquired the deeds to 93 homes in Chicago’s Woodlawn neighborhood for a total of $70,000. Each parcel was worth as much as $20,000 at the time—and potentially much, much more to speculators once all the neighborhood’s black residents had been evicted…

Not every tax-lien sale resulted in a transfer of deed, but they always resulted in a transfer of wealth. Many homeowners managed to pay off their liens at high interest rates—often 18 percent, the legal ceiling—along with a host of fees. Making real money depended on finding the poorest and most vulnerable owners in the poorest but most over-assessed neighborhoods. This practice was perfectly legal. The “Black Tax” was law…

The remarkably resilient predatory-tax-lien business continues to thrive, despite efforts at reform. The industry is enormous. Late in 2014, the Abell Foundation published a report on the state of the practice in Baltimore City. In 2013, the city sold tax liens for more than 2,000 owner-occupied homes. Almost one-tenth of these liens were attached to water bills. In 2014, of some 6,690 tax liens sold, 2,236 were for owner-occupied homes.

Given the interest, fees, and court costs, a homeowner’s $500 delinquent tax or water bill can mushroom to $3,000 over a two-year window—the time an owner has to pay down the lien. According to the report, there were 2,805 pending tax-lien foreclosure cases in Baltimore City in 2014. Noting the difficulty in tracking these tax-foreclosure evictions, the Abell Foundation report’s authors warn that in Baltimore, the “tax sale can lead to evictions, homelessness, and property vacancies and abandonment in a city already plagued by all three.”

More inequality via race and property in the United States. As if residential segregation wasn’t enough – ongoing lending practices and tax policies continue to make it difficult for blacks and other poor residents to build wealth over time.

Getting used to living next to Chicago’s L

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WBEZ summarizes how several Chicago residents who live right next to the L tracks have adapted:

Maybe most surprising of all, everyone we spoke to says they’ve adapted to the noise and the shaking the train brings. And there’s a kicker. One expert tells us residents (neighbors to the tracks or not) should expect the CTA train lines to eventually get quieter, as the agency updates to newer train models and lines are revamped with noise mitigation in mind.

I’m not surprised. It is something you notice immediately if you are not used to it but it eventually fades away. I spent 10+ years growing up in a house within 500 feet of a major railroad line. There were 70+ trains, freight and passenger, per day and the noise and vibrations were quite noticeable. Yet, outside of having to turn the TV and radio up or down depending on whether a train was nearby, it just became part of normal life.

Perhaps the more interesting question here is whether these properties have reduced values. If so, and given the ability of many nearby residents to adjust, perhaps these properties are hidden gems?

Chicago still leading the way for corruption

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A new report finds Chicago is still at the top of American cities in corruption:

According to new research released today by University of Illinois at Chicago political science professor Dick Simpson, there were 45 convictions for public corruption in 2013 (the latest year available) in the U.S. court district that covers the Chicago area. That’s way, way above the 19 convictions in Los Angeles and 13 in the Southern District of New York (Manhattan). But Houston had far and away the most pols convicted on federal corruption charges in 2013, with 83.

Since the U.S. Department of Justice began to collect data in 1976, Chicago’s Northern District of Illinois, which includes Chicago, Cook County and 17 other counties, has had 1,642 convictions, according to Simpson. That compares with 1,316 in LA and 1,260 in the New York district, which includes Manhattan, the Bronx and six other counties…

If it makes you feel better, Simpson notes that on a per capita basis, Illinois is in seventh place. The District of Columbia, Louisiana, Mississippi, Alaska, and North and South Dakota rank higher than Illinois.

In this case, I don’t know if the quantification helps at all. When scholars or activists produce such figures, they are often trying to draw attention to a particular cause by pointing out the large numbers. This is how social problems are made. On the other hand, Chicago has had a reputation for corruption for decades. Do these numbers mean anything if residents of the region already expect this? Perhaps the comparison of numbers with other cities and regions can help. Yet, it doesn’t look like knowing these figures changes very much.

And what is going with Houston – is the oil money flowing a little too freely?

Stopping California and others from taking Great Lakes water

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California may be facing a serious drought but the Chicago Tribune details how regulations have tightened access to Great Lakes water:

Can the Midwest repel demands from afar for its water? The eight states (Illinois included) and two Canadian provinces that border the lakes hope no outsiders can breach the invisible, 5,500-mile wall they’ve erected: In 2008, President George W. Bush signed into law — let us draw a breath — the Great Lakes-St. Lawrence River Basin Water Resources Compact. All eight states and Congress approved the compact, with the Canadians applauding. It’s intended to severely, although not absolutely, block new diversions of water outside the Great Lakes’ vast drainage basin (see accompanying map). A 1909 U.S. treaty with Canada also could thwart big diversions.

Whatever protection Washington giveth to any of us, of course, Washington conceivably can taketh away. Congress typically doesn’t meddle with regional water compacts. But yesterday isn’t forever: The steady erosion of U.S. House seats from Illinois and other Northern states to the Sunbelt invites peril if droughts punish those states. And the Chicagoan sworn to protect Lake Michigan may, um, evolve if arid Arizona tries to conserve water by outlawing construction of her dream retirement condo…

Yes, there’s hypocrisy for Chicagoans: This city reversed a river’s flow so Lake Michigan water would wash away its wastes. And many suburbs that draw from the lake sit outside its watershed; rain that falls on them flows to the Gulf of Mexico via the Illinois and Mississippi rivers. One mitigating factor is that water diversions in Ontario put more water into the lakes than Chicago flushes out.

The compact doesn’t cruelly forbid emergency outflows. David Naftzger, executive director of the Chicago-based Council of Great Lakes Governors, tells us it permits short-term humanitarian diversions if, say, a hurricane ravages water systems in Southeastern states.

In other words, the water isn’t completely protected but it would take a legislative act to start shipping Great Lakes water all over the country. This could become quite the political battle between Sunbelt and Rust Belt states. Which argument would win out: the Sunbelt has more people and potential or the Rust Belt has communities with much longer histories and might be more ecologically sustainable?

Two other quick thoughts related to this:

1. Interestingly, much of the Chicago suburbs are not in the Great Lakes basin as their water drains west to the Mississippi and to the Gulf of Mexico. This reminds me that the divide of the watersheds is not that far from Lake Michigan as Native Americans and traders would need portage over a ridge to get from the Chicago River to those flowing west (like the Des Plaines River). Yet, one group suggests over 75% of residents in northeastern Illinois get their water from Lake Michigan.

2. In another editorial on the same page, the Tribune noted that watching the drought in California could help remind Great Lakes area residents that water conservation should be a priority, even with the seemingly inexhaustible supply in the Great Lakes. There is no guarantee the Great Lakes will always exist.

Identifying the pockets of carless Chicagoans

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With more Americans living alone and significant transportation costs for middle-class Americans, where do the carless Chicagoans tend to cluster?

So where do those carless Chicagoans live, and how many of them are there? A lot, it turns out. If you break down Chicago by cars and household size using 2012 census numbers, these are the only groups of more than 100,000:

One person, one vehicle 193,174
One person, no vehicle 168,004
Two people, one vehicle 135,143

Along the northern lakefront, around half the households don’t have a car; there are pockets in the Near North Side and Lake View over 60 percent. In one Edgewater tract, it’s over 70 percent. It’s not the highest percentage, though—there are two tracts in one of the poorest stretches of the South Side, between U.S. Cellular Field and 47th Street along the Dan Ryan, above 80 percent.

As you move north and west and the city gets less dense, the percentage of carless households drops off. There’s an exception, though: one tract in Logan Square, adjacent to the California Blue Line stop, where 41 percent of households don’t own a car. The “twin towers” transit-oriented development that’s going up at 2293 N. Milwaukee, and causing controversy as it goes, will live right next to that tract.

If I had to guess, this is related to income, age, more expensive parking options (for example, having to pay for a garage spot as opposed to plenty of street parking), and housing types (single-family homes which are more attractive to families versus apartments, condos, etc.). How well would these clusters line up with where the Creative Class lives?

The headline suggests that this is has led developers to respond with what they are proposing and building. Yet, the article doesn’t say much regarding these changes. For example, how about more shared streets like have been proposed for a few spots in Chicago? How about more bike lanes in these areas? How about more high-rise housing? If these population clusters hold and developers are indeed responding, these could be very unique places in a few decades.

Branding battle: “Chiraq” vs. “Chicago Epic”

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Spike Lee and the city of Chicago have opposing views of how the city should be viewed. First, from Lee:

No sooner did the Wrap report that notable director Spike Lee has been tapped by Amazon Studios to make a movie titled Chiraq did the controversy and backlash begin to grow online because of the movie’s title. It wasn’t Lee who coined “Chiraq,” however. Chicago residents who have experienced the deadly shootings in “The Chi” gave it the moniker of Chiraq. The term combines Chicago with Iraq to compare the violence of the two places, as witnessed in the below documentary video previously released about “Chiraq,” but unrelated to Spike’s forthcoming movie…

Alderman Anthony Beale says Chiraq should have a new title, reports CBS Local. Beale adds that he doesn’t care what other name Lee uses for his new movie, but that it shouldn’t be Chiraq due to the violent images it brings forth. The alderman from the 9th ward didn’t make mention of the nickname coming from other sources than Lee.

Another politician was more forgiving of the Chiraq title. Senator Dick Durbin said he’d first like to give Spike a chance to explain what the Chiraq movie is all about before passing judgment. Although he says the Chiraq title is worrisome, he admitted he doesn’t know much more about the movie than the title.

Other politicians weighed in on Spike’s Chiraq, reported the Chicago Sun-Times?. Although Alderman Beale continued to point out criticisms, claiming Lee was stigmatizing Chicago with the Chiraq nickname, Mayor Rahm Emanuel refused to go that far. The mayor would only say that he’s focusing on the safety of the city.

Second, this news comes as the city is launching a national ad campaign to bring more tourists to Chicago:

The campaign, dubbed “Chicago Epic,” features a visually diverse 30-second TV commercial and far-flung ambitions. Target markets include San Francisco and Denver, but viewers throughout the country will likely see the spot over the next six weeks. Whether it changes minds about Chicago, or travel plans, remains to be seen…

Choose Chicago is funding the summer campaign with $2.2 million, up slightly from last year. About half of that budget will go to TV and online video. The rest will go to digital advertising, social media and paid search, hoping to sway online travel bookers as they plan their getaways…

Created by ad agency FCB Chicago, an 80-second long-form video was whittled down to a 30-second spot for the TV campaign. The spot features a distinctively Chicago voice urging visitors to be “part of something epic,” incorporating scenes of Divvy bikes, Lollapalooza, North Avenue Beach, Wicker Park and Alinea, recently named the best restaurant in the world by Elite Traveler. The forearms of renowned mixologist Charles Joly, which feature a tattoo of the Chicago flag, also have a starring role. Michael Jordan, the Chicago Theatre marquee and even the Chicago skyline ended up on the cutting-room floor for the edited TV spot…

“I think we’ll make ‘Chicago Epic’ as famous as ‘I Love New York,'” Fassnacht said. “That’s one of our goals — we have to make this iconic.”

There are several ways to view these competing narratives that could go a long way to influence the branding of the city:

1. Both contain elements of truth. Both don’t tell the full story. Chicago has experienced a lot of violence, even with murder rates that are significantly lower than in the past. Chicago has numerous interesting sites, even if many of its neighborhoods don’t match the glittering tourist locations.

2. The city of Chicago has said they want to boost tourism. This would help bring in more money and boost the city’s profile. Tourism is the sort of industry that can take advantage of existing locations and infrastructure (like the world’s busiest passenger airport) without requiring many big changes.

3. Chicago is clearly a global city and yet there is ongoing anxiety about whether Chicago can hold to its spot or whether it can truly compete with the cities at the top of the list.

4. It is unclear which narrative will win out.

More global cities working independently from their country

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An upcoming conference in Chicago will look at how global cities operate across and independent of national boundaries:

“By pursuing their own business ties, trade missions, cultural exchanges and agreements with each other, global cities may even have the ability to disrupt the foreign policy agendas of their nations,” said Sassen. “Cities are more nimble and often less weighed down by national politics than central governments are, and that means they can push the envelope further and faster by working with other cities that share a similar set of social and economic issues and interests.”

Already, cities around the world have formed associations and networks to work together and share information on such issues as the environment, transportation, energy efficiency and economic development. These include the C40, comprising some 70 global cities working together on climate change; Cities for Mobility, with its 650 members in 85 countries focusing on transportation; and Metropolis, in which more than 100 cities network on environmental issues.

“With countries struggling to reach basic agreements, city-to-city communication and coordination is not just innovative, it has the potential to change the nature of the conversation about international commitments,” said Sam Scott, chairman of Chicago Sister Cities International, a knowledge partner of the Chicago Forum on Global Cities…

“We’re going to see cities like London, Paris, Chicago and Sao Paulo frame their own civic foreign policies, with their own offices and representatives – sort of embassies and ambassadors – in the great cities of the world,” said Richard Longworth, a senior fellow at The Chicago Council whose report, On Global Cities, will be issued in advance of the forum. “This won’t usurp the prerogative of national governments. But cities, like nations, have their own interests that they need to promote and defend. If their nations can’t do it, cities can and will.”

Given the size of their economies (on the scale with many countries) plus their international connections, this isn’t too surprising. But, it would be fascinating to see when major cities and governments clash. Perhaps something like an international trade policy signed by a country that a city willingly violates. Or a national security arrangement that a city goes against for economic gain. Could cities actually pull off a major change in policy or would nations react strongly?

Over the years, I’ve seen a number of proposals for how nations might become less important on the global scene. The rise of global governance and agreements (on the national level). The increasing scope of multinational corporations. Perhaps the fragmentation of powerful countries into competing racial, ethnic, and cultural groups. But, the independence of major cities might hint at the return of nation-states. When can we expect one to secede?