The scale of warehouse and intermodal facilities in Will County, Illinois

As residents and local officials in Joliet and Will County debated a proposal for a new 1,300 acre office park, WBEZ put the size of the issue at hand in perspective:

The county is home to the largest inland port in North America and 3.5% of the nation’s GDP passes through here…

And $65 billion worth of products moves through Will County annually, according to the Will County Center for Economic Development.

In other words, this an important area for the current economy and the land use case has local, regional, and global implications. A few thoughts:

  1. Joliet and neighboring communities might not want the additional facilities and trucks but having these facilities in this part of the metropolitan region might be good for 9+ million residents. Balancing local interests and metropolitan interests is not easy. And the Chicago region has a lot of railroad and shipping bottlenecks.
  2. This is a symptom of larger economic changes as the economy became globalized, shipping goods across the country and on-time delivery became common, and Internet sales picked up. The effects may be local but Will County is part of a larger system.
  3. The changes in Joliet over time are striking, The news story hinted at how the community, what social worker Graham Romeyn Taylor in Satellite Cities: A Study of Industrial Suburbs in 1915 would have called an “industrial suburb,” has changed:

“Three steel mills closed. Caterpillar went from 8,000 people to a little over a thousand. We had numerous manufacturing plants shuttered,” said John Grueling, president and CEO of the Will County Center for Economic Development.

No other county in Illinois has seen job growth like Will County. It’s the epicenter of transportation for goods that move across the region and country with North America’s largest inland port. Now another real estate company wants to expand in the area by developing a logistics business park, and its raising concerns about the future of the county.

In summary: local land use decisions can have big impacts.

(See an earlier post about how the Will County community of Elwood responded to a large intermodal facility.)

The millions in tax incentives Naperville has offered to keep businesses

According to the Daily Herald, Costco has requested $5.5 million in tax rebates from Naperville in order to open a second store on the site of a former Kmart. This might fi with the incentives Naperville has offered to businesses since 2008:

Marriott

Total incentive offered: $10 million

Total incentive paid: $2,865,000 in hotel/motel tax and sales tax rebates

Expiration: When total is met or 20 years after agreement started in 2012

Hotel Arista/CityGate Centre

Total incentive offered: $7.5 million

Total incentive paid: $2,545,000 in hotel/motel tax and sales tax rebates

Expiration: When total is met or 20 years after agreement started in 2008

Hotel Indigo/Water Street District

Total incentive offered: $7.5 million

Total incentive paid: $965,000 in hotel/motel tax and sales tax rebates

Expiration: When total is met or 20 years after agreement started in 2018

Embassy Suites

Total incentive offered: $7.4 million

Total incentive paid: $1,457,000 in hotel/motel tax and sales tax rebates

Expiration: When total is met or 20 years after agreement started in 2015

Main Street Promenade

Total incentive offered: $1.4 million

Total incentive paid: $306,000 in sales tax rebates

Expiration: When total is met or 25 years after agreement started in 2013

There are a couple of ways to look at this. Perhaps this is just the cost of doing business these days. Big businesses can ask for tax breaks or incentives, plenty of places are willing to offer them, and everyone can still think that they win. For some companies and some communities, this money might just be a small drop in the budget.

On the other hand, it is striking that Naperville has to play this game. This is not a desperate suburb looking for jobs or a turnaround. This a large, wealthy suburb with a lot of accolades. And yet, to get a Costco which would provide tax monies plus fill an annoying vacancy on a stretch the city would like to improve, the city is being asked to provide millions of dollars in breaks to make it worthwhile for Costco. And if Naperville does not pony up, do they just locate in a nearby suburb?

Looking at the list of businesses for which Naperville has provided incentives, four of them involve hotels and a few involved newer developments. Competition is tight in a number of sectors, particularly among retailers and filling suburban vacancies. Again, maybe this is what it takes to keep businesses happy, jobs in town, and some tax money flowing.

Naperville will decide on this soon.

UPDATE 2/19/20: Naperville approved the deal and one leader spoke of the move as providing a catalyst to revive the Ogden Avenue corridor.

Aiming for resilient suburbs with long-term thinking about development

Fate, Texas, almost thirty miles northeast of Dallas, has grown rapidly in recent decades. But, the community is aiming for a different kind of suburban growth:

This financial distress is the inevitable endgame of a development pattern that doesn’t generate enough private wealth to sustain the public investment that supports it. So Fate planning staff began asking developers to document the ratio of public to private investment for every proposed project. This process lends itself to difficult, adult conversations about the long-term fiscal impacts of near-term growth. And elected officials in Fate have proved willing to have those conversations. The next challenge: bringing the public along with an affirmative vision of a financially resilient future for the small city…

What’s difficult is fostering such a conversation while the continued booming growth of North Texas drives developers to seek permission to build in Fate now, not a decade from now. One approach the city has taken is to work with the developers of in-progress or phased projects to alter their M.O. moving forward…

The city finds developers amenable to such voluntary amendments, because there is usually some overlap in interests. A more compact development pattern that integrates single-family homes with townhomes, apartments, or mixed-use development, for example, can simultaneously shore up the city’s revenues and render development more profitable in the long run. Still, residents are struggling with getting more and more neighbors, and with the high taxes they have to pay to special districts that facilitated the first waves of growth…

This path forward, if the city can manage it, entails actively pursuing high-quality, compact downtown development that pays its bills—now and in the long run—as a proof of concept, a way to demonstrate to residents that this path can lead to a desirable, prosperous community. It would be a gamble on the proposition that most people, in North Texas or elsewhere, aren’t unshakably anti-walkability or anti-urbanism. It would be a bet that the right kind of strong neighborhood will change some hearts and minds. Fate’s plan to attract new residents to the city—people looking for something different than what Richardson or other nearby towns have to offer—might just work in the long run.

In the United States, municipal growth is good but that does not necessarily mean it is sustainable in the long run. At the least, suburban communities can only grow so long in generating more and more subdivisions until they run out of land. As this article notes, the infrastructure of suburbia can be expensive to maintain as growth slows.

There are multiple solutions communities can pursue:

1. Like in Fate, consider the long-term early on to hopefully avoid other problems down the road.

2. Slow growth/limited development. This helps avoid the big boom suburbs can face for a short stretch that occurs and disappears quickly.

3. Just keep growing; if the open land runs out, start building up. Population growth can come through multiple paths.

If the bigger picture is correct (titled “the Growth Ponzi Scheme”), then many suburbs will have much to reckon with in the coming decades.

 

Developing suburban tourist destinations along major highways

The suburb of Naperville is looking to develop entertainment and tourist destinations on undeveloped land in the northwest corner of the community:

In the works at the two properties both using the CityGate name are an apartment building with a rooftop event center on the east side of Route 59, along with an arena for hockey games, concerts and conventions; and on the west side, a brewery or winery with a restaurant and hotel, as well as residences and offices — all designed with public art as a focal point.

What CityGate as a whole aims to do, developers and city leaders say, is become a true entertainment destination, giving visitors and residents reasons to come, places to stay — even places to live…

Still, there is optimism for CityGate plans, which eventually could include a band shell, a pedestrian bridge over Route 59 and a connection to the Illinois Prairie Path.

“From what we’ve been able to gather, Naperville is gaining a number of people visiting because of tourist attractions outside of Naperville,” Halikias said. “We’re looking at it and saying, ‘You know what? We should have the tourist attractions in Naperville.'”

And all right off the interchange of Route 59 and I-88. Three thoughts in response:

1. Even though many Americans likely do not think “suburb” when they hear about tourism, more suburbs are pitching themselves as cultural or entertainment centers. Tourism can help bring in money from visitors, which helps grow the local tax base without further burdening local residents or property owners. Additionally, the right kind of tourism can be viewed as family-friendly, a vibe many suburbs would like to cultivate.

2. One of the draws of Naperville is its vibrant downtown. Would an entertainment center on the edge of the city compete with the downtown and its restaurants, stores, and other amenities? This connects to a broader question: how many entertainment centers can thrive in the suburbs of the same region, let alone within the same community?

3. The development is said to include apartments, nearly 300 of them. While this helps provide a base for the new amenities nearby, it does not completely alleviate a problem of this development: how accessible is it to nearby residences or communities and how car dependent will the new place be? Even with access to the Prairie Path, the majority of visitors will need to come by car. Two sides of the property will be bordered by very busy roads. The majority of people will drive, park, and leave. This is a very different kind of center than Naperville’s downtown – which can be said to help contribute to Naperville’s small town charm – because of transportation. Perhaps the development will have a full range of options that can keep people there for hours. But, creating a coherent space with its own feelings and around-the-clock vibe could be hard to develop.

The little development battles happening across American suburbs

A debate over proposed development in Reston, Virginia might be indicative of debates across suburbs:

You may be well versed in this debate. “What you’ve got in Reston, and really everywhere in suburban America, is a demographic shift that’s occurring. The dominant baby-boom generation ages and expires, and the newer, younger generations look different—they have different interests and different incomes and different commuting patterns,” says Patrick Phillips, former CEO of the Urban Land Institute, who has studied Reston. “These sort of little battles”—bike lanes versus parking lots, open spaces versus outdoor shopping malls, high-rises full of two-bedrooms versus fairways framed by cherry trees—“are fractious,” Phillips says, “but they’re inevitable, too.”

The implication here is that younger suburbanites prefer more density and additional transportation options beyond having to own a car. In contrast, older suburbanites want to retain a suburban emphasis on single-family homes and quieter communities. More from Reston:

Since Metro arrived, Hays explained, traffic had become impossible, schools got crowded. As the county forged ahead with its plans, the Yellow Shirts saw each new rendering of an urban promenade or pocket park as a threat to their town’s character. They weren’t unsympathetic to Merchant’s dilemma—they just didn’t believe condos would fix it. (Were those really what a thirtysomething couple with three kids and a goldendoodle would want?) Also, the high-rises were ugly. “Azkaban Prison” and “Moscow Towers,” Hays called them.

Residents who move into a suburban community or neighborhood can become very invested in wanting to maintain the same look and feel that attracted them in the first place. With the interests suburbanites have in maintaining and growing their property values, exclusion of people who might threaten the character or property values, and the benefits of local government, residents can mobilize.

If growth is often seen as good and suburban residents should be able to protect their property rights, which side will give? The battles within communities about development then often turn into residents wanting to protect their vision versus community leaders (and possibly regional leaders) looking forward to positive changes.Some possible outcomes:

  1. Long-term conflict in the community with no changes but plenty of tension.
  2. A decisive showdown with one side winning and the others retreating for a number of years.
  3. A slow set of changes that add up to something over time.
  4. True generational change as a number of older residents leave or pass on and a new generation decides to do something different in the community.

Celebrating new development – and recognizing what is lost

Looking at a few 2010s retrospectives at Curbed, I enjoyed looking at one detailing some of the buildings and spaces lost in Chicago in the last ten years:

The losses in Chicago’s built environment go far beyond the buildings and their architectural features. These places are symbols of greater failures: vacant lots represent a dearth of affordable housing, church-condo conversions signal the absence of community spaces, and closed schools call attention to the city’s disinvestment in its neighborhoods.

This only covers a sliver of the demolitions and conversions that have occurred in the past decade. These spaces are still mourned today, and as we reach the end of a decade, let’s take a look back at what Chicago has lost.

This is an interesting collection. And it does not even address the significant changes that may have come to neighborhoods or smaller areas through new development. Addressing how a place changes in atmosphere and feel goes beyond just buildings.

What is the proper or best way to mark these losses? Growth is often seen as an inarguable good. Don’t residents and leaders want new buildings, new options, updated spaces? Here are a few ways buildings and spaces could be memorialized:

  1. Articles, books, and websites can help keep memories alive. A retrospective like the one above makes sense but such pieces need to keep coming, particularly as the years pass and new residents do not even know what used to be there.
  2. Some sort of public marker or display in certain locations. This would be hard to do for every structure that changes but imagine having both a new building or space and a public marker with an image and some text that records what also stood on that land. This would help future visitors visualize what used to stand there.
  3. How about a museum for a lost Chicago? I could envision exciting displays with pictures, videos, interviews, text, and immersive recreations (whether parts of buildings that are reconstructed or using virtual reality displays) that celebrate what used to be in Chicago. A history museum can do some of this as could a celebration of architecture but really focusing on buildings and spaces could be really interesting and worthwhile for a city that wants to celebrate its past.
  4. Of course, ongoing historic preservation efforts can help keep this in the public eye. While it may be difficult at times to agree on a balance between saving key structures and allowing for change and innovation, at least having public discussions about important structures helps provide reminders of how something can be lost even as something new looks promising.

The expansion of warehouses in sprawling locations

While the example here is from Georgia, this describes a lot of development in the United States today:

An announcement this week says that the Goodyear Tire and Rubber Company will anchor a new industrial park being developed on the property. The company will occupy 1.5 million square feet of warehouse space, in what the Atlanta Business Chronicle calls the “largest build-to-suit industrial space under construction in metro Atlanta.” Goodyear is expected to employ about 150 Georgians in the facility.

Individually, headlines like this represent wins. Jobs are created, and local tax bases are fortified. Warehouses, in particular, tend to bring in significantly more in property taxes than the businesses that occupy them demand in county services such as public safety. Their byproduct, however, is traffic. Specifically, truck traffic…

The middle stage of both manufacturing and distribution requires warehouses, and Georgia’s geographic position and our ports and airport logistics hubs make the warehousing industry a logical fit for the state. This extends from the Port of Savannah all the way down I-16, up I-75 into metro Atlanta, and all the way around the metro area and into North Georgia. It’s truly a statewide issue.

And much like the projected cascade of new residents, new warehouses are coming. There is a proposal to build out 1,400 acres with 18 million square feet of warehouse space in Butts county, about half way between Atlanta and Macon. Seven hundred acres adjacent to the Budweiser brewery in Cartersville, northwest of Atlanta, have also been sold to be developed as warehouse space.

To make a world of Amazons, Walmarts, and Walgreens possible, trucks are needed. Lots of trucks. The warehouses need to be in strategic locations near growing populations so that the time between warehouse and store or delivery is reduced. To make one or two day delivery possible or have real-time inventory, there need to be locations that have a lot of goods ready to go. Black Friday or the Christmas retail season cannot happen as easily without warehouses.

As noted above, warehouses provide jobs and property taxes. They are not often aesthetically pleasing as the primary goal is to store goods, not interact with the public. They often occupy key sites in and around intersections and highways. They contribute truck traffic. I would guess few people would want to live right next to one given the noise and lights involved.

All of this connects to sprawling development in the United States. American communities tend to be spread out as people seek out single-family homes of a certain size and with enough distance from communities they might find problematic. Decades of sprawl fueled by the American Dream, the federal government, and numerous other actors means that warehouses are a common part of the landscape. Outside any major metropolitan area, there are rows upon rows of warehouses.

For another example of how this all plays out, see the rise of intermodal facilities (and the negative effects these can have on communities).