Reminder: only 17% of the jobs in the Chicago region are downtown

An article I posted about earlier in the week included this statistic:

Downtown Chicago accounts for 17% of jobs in the six-county region, according to the Illinois Department of Employment Security…

But most of the region’s jobs — almost 3 million — are outside of downtown and may require more complicated commutes. More than 400,000 people commute every day from Chicago to jobs in the suburbs, according to the Regional Transportation Authority

This 17% is still a sizable percentage of jobs within the region. Put those jobs together with other economic resources, cultural opportunities, political resources, and historical inertia and the Loop is still a center of the region.

But, this also suggests 83% of the jobs in the region are outside Chicago’s downtown. Many Chicagoland residents do not need to go near downtown for work. Many commutes are suburb to suburb. As the second paragraph above notes, even hundreds of thousands of Chicago residents travel from the center to the suburbs for work.

At the least, such numbers should help us reconceptualize cities, suburbs, and regions. The varied pieces within a region are interdependent. Problems need to be solved across communities and taxing bodies. Celebrations take place across the region. The problems of either cities or suburbs are not only theirs to address. The communities are competing against other regions more than each other.

Mass transit agencies developing land to generate revenues

The actions of New York’s MTA – Metropolitan Transportation Authority – suggest a way American mass transit agencies can generate money: through partnering on transit-oriented development.

That is what inspired Harrison’s Halstead Avenue project, a $76.8 million mixed-use real estate development built in collaboration between the Metropolitan Transportation Authority (MTA), which oversees the Metro-North, and developer AvalonBay Communities. It is the first time ever that the Metro-North will sell a parcel of its land for transit-oriented development (TOD); in this case: 143 apartments, 27,000 square feet of retail space, two pedestrian plazas, and a 598-space parking garage, most of which is reserved for the public and commuters…

The New York MTA, the largest transit agency in the U.S., is becoming more familiar with this type of construction. The Hudson Yards project—where the MTA decked over its train yards, and sold the rights to developers for $1 billion to build an entire Manhattan neighborhood on top, with a new subway line extension beneath—is perhaps the largest TOD project in American history. At One Vanderbilt Avenue, an office building being constructed across from Grand Central Terminal, developer fees to the MTA will pay for interior improvements throughout the huge hub.

But the Harrison project marks a new direction for the cash-strapped MTA, which is on the hunt for new revenue: Decades of underinvestment and recent ridership declines have left the MTA with a projected $433 million budget shortfall, a gap that a recession could worsen. Meanwhile, critics agree that Manhattan’s soon-to-come congestion pricing scheme cannot alone cover the cost of the subway system’s badly needed overhaul. Capturing revenues from transit-oriented development on MTA-owned lots could help. So the agency is eyeing projects in suburban communities outside of Manhattan, with the hopes that the prospect of economic development will prod smaller towns to plot their futures near its train stations…

Transit agencies in Europe and Asia are much more likely use development as a revenue tool much more commonly than their U.S. counterparts. David King, a professor at Arizona State University who has studied transit-oriented development, said that this is largely due to the fragmented (and car-centric) nature of land and transit planning, capital investment and operation in the United States. For example, as a state-regulated public authority, with a variety of funding pots for capital and operating costs, the MTA has to comply with home rule for a housing project.

Private transportation firms in the United States have promoted and/or participated in development for years. It was good business for transportation providers to promote travel and now more accessible properties. Railroad and streetcar lines made special trips to the end of their lines where they would then sell riders on new properties.

What could make this more complicated in the United States is that transit agencies could be drawing on public funds and the United States has a history of concern about how public funds are used for development. If public money helps support traditional suburban life – think the single-family homes and highways the federal government and others groups helped make possible before and after World War II – then there may be limited outcry. Try using such monies for affordable housing, particularly for poorer residents, and opposition will arise.

Thus, this project in suburban Harrison, New York fits existing patterns. Transit-oriented development along rail lines in suburban downtowns is very common and desired by many suburbs. The project is not too big. It sounds like the suburb wants some denser downtown development. It does not involve housing considered too cheap by the community. But, whether this tactic could expand across metropolitan regions remains to be seen.

Rethink Rezoning, Save Main responses share similar concerns – Part Two

Yesterday, I summarized the redevelopment plans for the East Roosevelt Road Corridor in Wheaton and the Giesche Shoe project in Glen Ellyn. Based on online sources, I will summarize the concerns of residents. There is a common theme: they perceive the character of the community is at stake.

In Wheaton, here are some of the stated concerns:

“We are a residential city, and our city planning should reflect that,” she said. “A forward-thinking city understands that pedestrian-friendly sidewalks and bike lanes are what attract new homebuyers, keep residents, increases equity for current homeowners and subsequently increases city revenue based on increased home value and an increased tax base.”

Nancy Flannery, the chairwoman of the city’s historic preservation commission, worries about the possible demolition of another Jarvis Hunt-designed house, now converted into offices at 534 Roosevelt. Built in 1896, the house was one of the first summer cottages constructed for members of the private Chicago Golf Club.

And a few more representative comments from the same May 28, 2019 meeting:

expressed concern that the proposed changes would build up retail, contribute to congestion and be detrimental to neighboring residents. He stated there are already vacancies and the report is not clear on what types of businesses would be interested in Roosevelt Road…

stated he thinks the plan as presented harms the neighborhood in terms of traffic, safety, noise, light and visual aesthetics, and he doesn’t think there is a problem on Roosevelt Road that needs fixing…

stated she does not want developers to be able to build commercial businesses on lots behind Roosevelt Road. She stated she does not want to see 4- or 5-story buildings being constructed right near residential areas.

In Glen Ellyn, some representative comments from an online petition:

Local congestion, size out of proportion (too large and bulky), traffic pattern near local churches & private school, etc…

It’s going to ruin the quant village that we choose to live in. We want to live in a village not a city with large structures – we would have chosen to live in Wheaton Or Naperville ( village is the key word – we are not a city Or town. We are the Village of Glen ellyn )…

a number of villages used to have charms that brought shoppers and new residents (e.g. elmhurst, arlington heights, mt prospect). their boards allowed developers to build in violation of existing codes and these charms were lost. don’t let that happen here…

My husband and I moved here because the town was still lovely, quiet, and mostly unmarred by the huge, unsightly, commercial behemoths scarring most of the surrounding suburbs. Glen Ellyn still has charm and an organic feeling of development. This development does not fit in at all with the feeling and aesthetic of the town. Say no!

In both cases, the concerns residents voiced are consistent across hundreds of development and redevelopment projects in suburbs across the United States. Having studied this in multiple ways (several of my projects address similar issues including “Not All Suburbs are the Same” and “‘Would Prefer a Trailer Park to a Large [Religious] Structure’“, residents generally bring up the same concerns: increased traffic, lights, and noise; a change in scale (particularly when it comes to height); and threats to residences (usually single-family homes) and the character of a suburb.

In Wheaton, the character issue is not stated as clearly but it is present. This major road is one of the primary ways people see the suburb. How should it look compared to the stretch of Roosevelt on Glen Ellyn which is more like the strip mall approach and Winfield to the west which is more green and residential (and not coincidentally they are fought their own battles over taking advantage of possible business opportunities on such a busy road)? This is not just about a busy roadway or the homes that back up to this stretch; this is about signalling what kind of place Wheaton is. One that values businesses or homeowners, one that prioritizes vehicles or pedestrians, one that celebrates its history or is looking to simply make money?

Interestingly, Wheaton comes up in the Glen Ellyn comments as a place that some Glen Ellyn residents do not want to become. Since the late 1990s, Wheaton has pursued downtown condos and office buildings. Other suburbs come up in the comments including more lively downtowns like Naperville and Arlington Heights. These Glen Ellyn residents have some similar concerns that most redevelopment projects engender – traffic, noise – but this particular project seems to be a step too big for their downtown. Can five stories “fit” with the existing downtown? This is not just about seeing the building from a distance: it is about a sense of scale for pedestrians, how the building might tower over nearby businesses and residences, and what this portends for the future of the downtown. Let this big development in and Glen Ellyn will become just another suburban downtown chasing after tall buildings and money to the detriment of residents who liked to feel they live in a small town.

Perhaps the big question here is this: are these concerns from residents valid? Are these just NIMBY responses? Who should control what kind of development occurs in a suburban community? Americans like suburbs in part because they feel like they have access to local leaders and can influence local decisions. From my own research on suburban communities, I am fairly convinced there are some suburban residents who move into a neighborhood and community and desire to freeze the place in that exact configuration. Indeed, they moved to the suburb for particular reasons. On the other hand, cities and suburbs are encouraged to grow (stagnation or population loss is failure) and development or redevelopment opportunities do not always come along easily or in forms that local officials or residents will like. If these communities do not act now, will they lose economic opportunities to other suburbs and in the long run shoot themselves in the foot by not upgrading when they can?

If local residents are vocal enough, they can likely slow down or nix these redevelopment projects. How many residents have to voice displeasure is not clear; few suburbanites are invested in local politics even if they count on the opportunities to voice this displeasure to protect their own investments. Local officials do listen and will encounter difficulty down the road if they just ram through projects.

Here is what I suspect will happen in the long-term in these two cases (and in suburban disagreements over development and redevelopment generally): few communities are so anti-development that they keep out all changes. Suburbs generally hope to keep growing and this becomes more difficult in more mature suburbs like these two which cannot add new subdivisions. There are only so many ways Wheaton and Glen Ellyn can add businesses and residents. If these changes do not happen now, they will probably happen eventually as the opportunity costs are too steep: local leaders will have a hard time turning down these chances when the possible consequences are lost money, vacant properties, and eyesores. Some local residents will dislike the changes and some might move away. But, the very conception of suburbs may be evolving as well: outside of moving to exurban areas, many suburbs are pursuing more density and vibrant downtowns. This may make suburbs all the more complex in how they are understood and experienced and in how residents think of their community’s character.

 

Trying to split Naperville’s downtown streetscape improvement costs

Downtowns need regular upkeep and maintenance but paying for streetscape improvements can be a tricky matter:

In an estimated $15 million project that’s expected to take six years once it begins, the city plans to upgrade sidewalks, install new benches and street furniture and enhance street corners throughout its commercial core…

City staff members are proposing the work be paid for over 15 years, with the city contributing half and downtown property owners the other half.

They say it’s a fair cost distribution because a strong downtown improves the city as a whole…

Problem is, those same downtown property owners who could be asked to foot the bill for sidewalks and benches also are still paying off the Van Buren Avenue parking garage — and will be until 2021, 20 years after it was constructed. They’re also paying for ongoing downtown maintenance and marketing through a separate special tax that’s renewed every five years.

As is suggested in the article by local leaders, perhaps this is simply the price of doing business in a popular suburban downtown: you chip in to help make the downtown better. This sort of public-private partnership can work well when there is a vibrant business scene. But, I could also imagine that these added costs make it more difficult for certain kinds of businesses to participate.

It would also be interesting to know how these streetscape improvements compare with efforts of others – whether municipalities or shopping centers – to improve their appearance and amenities. One way to view retail competition is as an arms race: who can create and foster the most vibrant scene? Who has the mix of stores, restaurants, recreational opportunities, parking, weather, and events that would lead consumers to go there rather than somewhere else? Not making such proactive improvements, even though they may be costly, could lead to falling behind.

Row houses popping up in suburban downtowns

For the last twenty years or so, condos or luxury apartments have been constructed in numerous suburban downtowns in the Chicago region. The communities may have now moved on to row houses:

What’s in vogue now, at least in upscale living, might just be the row house, say developers of a six-unit project called Charleston Row.

These $1.1 million to $1.3 million row houses will have two or three bedrooms, two- or three-car garages, 3½ or 4½ bathrooms, a basement, a large mudroom, not one but two rooftop terraces and even their own private elevator…

After years of building new homes on the sites of teardowns in Wheaton, Glen Ellyn and Naperville, Charleston leaders said they started hearing a new trend. They noticed a desire for something other than the 5,000-square-foot luxury house, standing on its own with a good-sized yard in a subdivision on the outskirts of suburbia.

What these buyers want instead, Van Someren said, is what Charleston Row offers: convenience to a downtown with dining, night life and shops, a low-maintenance lifestyle without a massive lawn to mow, and luxury features such as custom staircases and tile work, hardwood floors, a butler’s station, a breakfast nook and countertops made of granite, marble or quartz. The fancy stuff.

In addition to the factors cited above, I wonder if a few other forces are also at work here:

  1. Row houses may connote a more luxurious or trendy setting than condos or single-family homes. One of the examples cited in the article suggests this: row houses may inspire images of similar higher-end dwellings in London. (On the flip side, these row homes do not remind suburbanites of the row houses in poor neighborhoods such as depicted in Baltimore on The Wire.)
  2. Row houses offer similarities to single-family homes but with densities that builders, suburbs, and opponents of suburban sprawl can appreciate. Builders would like them because they can fit more (expensive) homes on the same amount of land. Suburbs like them for similar reasons; the housing is contained in attractive locations. (I’m guessing not too many suburbs want block after block of these row houses – that would be too monotonous.) For those who dislike sprawl, these might be symbols of denser suburban housing that is ultimately better than continuing to build new subdivisions way on the suburban fringe. (At the same time, such row homes are often not cheap and are not within the reach of most suburbanites, continuing to push them further out.)

We’ll see how long these continue to attractive to the parties cited above.

Majority of American jobs in the suburbs

An analysis at New Geography shows the metropolitan locations of American jobs:

The 2014 data indicates that more than 80 percent of employment in the nation’s major metropolitan areas is in functionally suburban or exurban areas (Figure 3). The earlier suburbs have the largest share of employment, at 44 percent. The later suburbs and exurbs combined have 37.0 percent, while the urban cores have 18.9 percent, including the 9.1 percent in the downtown areas (central business districts, or CBDs).

These numbers reveal dispersion since 2000. Then, the earlier suburbs had even more of the jobs, at 49.4 percent, 5.3 percentage points higher than in 2014. Virtually all of the lost share of jobs in the earlier suburbs was transferred to the later suburbs and exurbs, which combined grew from 31.4 percent in 2000 to 37.0 percent in 2014. The urban cores had 19.4 percent of the jobs (8.8 percent in the CBDs), slightly more than the 18.9 percent in 2014.

While Chicago is one of the cities with a higher percentage of jobs in the city, Sun Belt locations dominate the list of cities with more jobs in outer suburbs:

These figures counter claims or stereotypes that (1) suburbs are primarily bedroom communities where people sleep but work in the city and (2) urban cores are the primary job centers of metropolitan regions. Of course, some suburbs are bedroom suburbs and big city downtowns are still important, particularly for certain industries (think global finance). At the same time, it would be interesting to envision some of these Sun Belt cities with no downtown…how different would Raleigh or Atlanta or Orlando really be?

Expanding Chicago’s downtown zoning; a good deal for poor neighborhoods?

Chicago Mayor Rahm Emanuel just released his plans to expand Chicago’s downtown which could provide new monies to help other parts of the city:

This week more details have emerged regarding Mayor Rahm Emanuel’s ambitious plan to expand the high-density “downtown” zoning designation to approximately 1000 additional acres outside the city’s central core to help fund improvements in underserved neighborhoods.

Under the scheme, the city will charge developers for the privilege of increased height and density permitted under the expansion. Each payment will be calculated by multiplying amount of additional space sought by 80 percent of the median price per square foot. In other words, if a builder wants to build an additional 5,000 square feet beyond what’s allowed under old zoning in an area where the median price is $30 per foot, the city will net an extra $120,000 for neighborhood reinvestment…

This week’s announcement also sheds some light on how the mayor plans to spend the extra cash. As reported by Greg Hinz of Crain’s, the administration plans to spend 80 percent of the money to help incentivize the construction of new grocery stores and cultural facilities in otherwise deprived neighborhoods. The remainder of the fund is earmarked for historic preservation efforts and streetscape and transit improvements.

The creation of this new value-capture mechanism is also aimed to supplement — if not help replace — Chicago’s reliance on its controversial TIF districts.

It sounds like Emanuel hears the criticism that poorer neighborhoods in Chicago need more resources and capital. However, is this the best way to do that or is it a deal with the devil? The idea seems to be that developers want new spaces to create downtown-like buildings and some of the revenue from this can be sent to help poor neighborhoods. The Neighborhoods Opportunity Fund – a description starts on page 2 of the proposed ordinance – can provide a unique pot of money to provide basic services, cultural and recreational opportunities, and help launch small businesses.

How much money will this generate?

The city says the plan will pull in about $50 million over the next several years. Eighty percent of the money would go to develop grocery stores, restaurants and cultural facilities in underserved neighborhood commercial corridors. The remaining 20 percent would be split among preserving landmark buildings, neighborhood streetscapes and public transit facilities.

I’ll leave it to others to consider how this money balances out with the goodies developers and others will get from the expanded downtown zoning…