Sports teams want the state-of-the-art stadium – and all of the nearby mixed-use development – to profit

The conceptual plans released earlier this week from the Chicago Bears about what they might construct in Arlington Heights follows a recent trend: sports teams are interested in stadiums and all the other development around those facilities.

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The plans revealed Tuesday by the Bears call for a multipurpose entertainment district anchored by a stadium that could host the Super Bowl, college football playoffs and college basketball Final Four, with an adjoining commercial/retail and housing district. While cautioning that the long-term vision for the entire property is a work in progress, the team said the site could include restaurants, offices, a hotel, fitness center, parks and open spaces.

The team’s open letter provided a series of economic projections, saying the large-scale redevelopment would provide “considerable” economic benefits to Cook County, the region and state.

For instance, construction would create more than 48,000 jobs, result in $9.4 billion in economic impact in the region, and provide $3.9 billion in labor income to workers, the team said.

The development would generate $16 million in annual tax revenue for the village, $9.8 million for the county and $51.3 million for the state, according to the Bears.

Yes, a stadium is necessary for football but teams now want to develop more land and generate additional revenues adjacent to the sports playing surface. If they help generate such development and/or retain an ownership stake in the surrounding development, this can both bring in significant annual revenue and further boost the value of their franchise.

This also follows on-trend development ideas where a mixed-use property helps ensure a regular flow of activity. Instead of separating land uses in different places, putting them all together can create synergy and additional revenues.

Another way to think about it is that a lot of sports teams are in the land development business. How exactly this fits with a goal of fielding a winning team might get complicated.

McMansions as part of or outside of a changing suburbia?

This description of the changing American suburbs includes McMansions:

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The demand for something like urban living is real. Even at the outer edges of growing metro areas, mixed-use walkable developments pop up alongside familiar subdivisions and McMansions. “Mixed-use centers—often in suburban locations—continue to be built from the ground up in many communities across the US,” wrote the Congress for the New Urbanism in 2019.

As more immigrants and millennials become suburbanites, and as Covid and remote work give the suburbs another growth spurt, they are evolving into something different. Between 2019 and 2020, the share of millennials who live in suburbs increased by 4 percentage points; and in 2014, more than 60 percent of immigrants lived in suburbs, up from just over half in 2000.

Many communities that were once white, exclusionary, and car-dependent are today diverse and evolving places, still distinct from the big city but just as distinct from their own “first draft” more than a half-century ago…

If a “second draft” of the suburbs is now being written — at least in some of America’s growing and expensive metro areas — what might it actually look like?

This is part of the complex suburbia we have today. Where do McMansions fit into this? The selection above suggests “mixed-use walkable developments” are near McMansions. But, what happens to the McMansions in the long run? Here are a few options:

  1. The McMansions continue in their neighborhoods for those that want them. Even amid proclamations that McMansions are dead, there are some homebuyers and suburbanites that want such homes.
  2. McMansions themselves are altered in ways to fit the new landscape. Perhaps they are subdivided into multiple units for more affordable housing. They could be added to. Their properties could host accessory dwelling units.
  3. McMansions are demolished and replaced with something else. This could be because the quality of the homes does not stand the test of time or the land is more valuable used another way (some of the teardowns become teardowns).
  4. Some McMansions live on through historic preservation marking a particular era of housing and American life.

For some, McMansions represent the peak of an undesirable suburban sprawl and excess. For others, they are homes that provide a lot for a decent price. Their long-term fate is to be determined both by those who like them and those who detest them as the suburbs continue to change.

How many suburbs will be willing to replace suburban office parks with denser housing?

If the golden age of the suburban office park has passed, what will some of the empty properties be used for? One option is denser housing:

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It will mean taking land long zoned for offices, and allowing townhomes to be built among them, or permitting apartments or industrial-scale warehouses for the first time. Amid a nationwide housing crisis, many obsolete office parks could be ideal sites for denser housing.

However, this is a very pertinent issue:

The problem for some suburban officials: “It’ll be, ‘Oh, what do you mean we can’t just zone for single-family homes and offices? That’s our thing. That’s why we exist,’” said Tracy Hadden Loh, a researcher at the Brookings Institution. “So now it’s like an existential crisis.”

This is an issue that comes up for numerous kinds of large suburban properties, whether they are shopping malls, golf courses, or grocery stores: how to convert a vacant property into a useful long-term use? The number one goal is probably to generate significant property tax and sales tax revenue. In other words, to keep it at its original as approved by the community years before.

But, if that is not possible – and communities might go years trying to fulfill this vision – then the discussions get interesting. Expensive single-family homes, fitting with the upscale suburban character of some suburbs, would fit in. Zoning protects single-family homes for a reason: suburbanites and suburban communities prefer these homes and their lifestyle.

However, single-family homes can bring more children to local schools and add to the loads of local services. They do not necessarily produce the revenues that offices and retail do. Denser housing is even less desirable because it adds even more residents, which can add to community services and traffic, and some suburbanites are concerned with apartment dwellers.

My guess is that mixed-use redevelopment will be a popular path a number of these communities will try to pursue. Replace that office park with a “metroburb.” But, it remains to be seen how many such developments are viable and how eager suburban leaders and residents are to pursue them.

“Welcome to the Metroburb” in the NW Chicago suburbs

This week I heard a radio ad saying “Welcome to the Metroburb.” Here is more on this new development outside of Chicago:

Chicago area suburbs advertising their communities is not unusual; see examples here and here. Far less common are new suburban developments making broad appeals in mass media. This project has been in the works for a while now – see an earlier post – and it is on an intriguing site as Bell Labs was important for the Chicago region (read more about the effects on local development of their Naperville facility) and the country as a whole.

If you ran a business or were searching for a residence or wanted to be part of an interesting scene, would this ad or website persuade you? This is a unique development and a large one. Suburbs around the United States are looking to fill empty suburban headquarters, denser suburban areas are popular, and standing out in a crowded suburban landscape can be difficult.

Interestingly, there is also a partner project involving the former Bell Labs facility in Holmdel, New Jersey.

Facebook proposing sizable mixed use development for itself and the public near its HQ

Next to its big headquarters, Facebook wants to construct over 1,700 apartments, 200,000 feet of retail space, and over 1 million square feet of office space:

The most recent plans, which were updated in May, show the development will be built where a single-use industrial and warehouse complex currently stands…

It will feature 1,729 apartments, including about 320 that will be affordable housing and up to 120 units designated for senior housing…

The plans for the new city also feature a supermarket, pharmacy, cafes and restaurants and a 193-room hotel.

The 200,000 square feet of planned retail space will be built around a 1.5-acre town square.

Separate to the town square will be a four-acre public park, a two-acre elevated park similar to New York City’s High Line and other public open spaces.

In addition to the housing and retail spaces, Facebook also plans to have 1.25 million square feet of new office, meeting and conference room space for the social media company.

There are multiple interesting elements of this proposal:

  1. This has numerous benefits for Facebook. It will have new office space built to its specifications. It will have some housing space for workers. It worked with the municipality to make changes.
  2. All of this happening in the aftermath of COVID-19 where it is not entirely clear how many workers will return to the office. Adding this amount of office space suggests Facebook thinks it – or some other firm – can use the space.
  3. This kind of mixed-use development is popular in many places. For example, New Urbanists promote such developments for their numerous advantages. Is Facebook explicitly building on this line of reasoning or does it have other reasons for this kind of development?
  4. Once the land is developed in this way, what role will Facebook play moving forward in overseeing the space? This will be an ongoing tension between the company, residents, and the municipality.
  5. This is an expensive area in which to develop land. Facebook has the resources to pull this off when others could not. In the long run, will this viewed as a net gain for the larger community or is it best for the company?

Since the project is under review by Menlo Park, it will be interesting to see how this continues to play out.

Baseball teams going with smaller stadiums, more mixed-use development

As fewer fans may be willing to go to baseball games, teams are moving toward focusing on development around the stadium:

The Atlanta Braves and Texas Rangers, leaning significantly on public funding that came without taxpayer referendums, ditched parks built in the 1990s for smaller digs framed by the game’s new revenue engine – mixed-use developments at least partially controlled by the team. The Braves are in their third season at SunTrust Park (capacity, 41,000, replacing Turner Field’s 53,000) while the Rangers in 2020 will open Globe Life Field, a retractable-roof facility that will seat 40,000 compared to its predecessor’s 49,000-seat capacity…

For the Diamondbacks, A’s and perhaps a significant number of clubs that may replace – or revamp – their Camden Yards-era parks, finding the sweet spot of atmosphere, accessibility and inclusion will be paramount in a sport with an aging and occasionally alienated fan base.

The primary focus of the article is on how teams are trying to attract more fans to altered ballparks that offer a more exciting in-game experience. But, I find the passage above more interesting: as fans become fickle regarding attendance, the big long-term money may just be in the real estate surrounding the park. Even at high levels of attendance, a sports stadium only generates revenue a certain number of dates a year. Baseball has a lot more dates than football but the stadium still sits empty for more than 75% of the year.

Many teams and park owners have already shifted toward stadiums as concert venues as well as homes to other sports in the off-season. But, imagine the sports stadium more like an exciting shopping mall where people come to hang out in an exciting and safe space and they consume. Just like the shopping mall that features food, entertainment, and retail, the stadium could become a year-round home for entertainment, food, and shopping that has a great draw at the center: a professional sports team that happens to play there for part of the year.

One piece that may be missing from a number of ballparks as well as shopping malls: adding residential units near the facility could help boost the customer base and create a neighborhood feel. A number of stadiums are surrounded by parking lots. At least a few are located right next to other stadiums of professional teams so the stadiums can share parking lots. Instead, imagine apartments and condos right near stadiums: some residents would be excited to live right near the energy of a stadium and these residents also would partake of local businesses. This does not have to look like the neighborhood around Wrigley Field but there is certainly a lot of room for more neighborhoods to generate revenues for tams long after the games are over.

And then there can be conversations about whether public money should be used to finance real estate development in addition to sports stadiums. Do communities benefit from mixed-use developments around stadiums or does the money line the pockets of owners?

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

The suburb in which I live and the neighboring suburb both have proposed redevelopment ideas and each has attracted opposition from residents. Both sets of opposition have yard signs to voice their displeasure and residents have spoken at public meetings.

Part One of this analysis involves the basics of the proposed projects and how this fits into what suburbs generally try to do.

The Rethink Rezoning group is responding to a study commissioned by the city of Wheaton to improve development along the busy Roosevelt Road corridor that runs east-west through the center of the suburb. From the Daily Herald:

Wheaton’s East Roosevelt Road corridor has a hodgepodge of businesses and housing, obsolete office space and no consistent sidewalk network that encourages pedestrians to walk from one end of the nearly 2-mile stretch to the other…

Consultants propose a “Horizontal Mixed-Use Zone” from Carlton Avenue to West Street/Warrenville Road, currently a mix of low-intensity offices, houses and residential structures adapted into offices. In that subdistrict, the city should expand the palette of permitted land uses, including limited retail and “personal service establishments,” the report states.

Farther east, a “Commercial Core Zone” between West and President streets could concentrate new development of significant size — greater than anywhere else along the corridor — taking advantaging of proximity to the downtown and the Mariano’s grocery store. The Mariano’s intersection has traffic congestion when cars queuing up in the west turn-lane from Naperville Road to Roosevelt.

A “Mixed-Use Flexible Zone” from President to Lorraine Road “should encourage a broad range of uses, including retail, service, office and multifamily residential,” according to the report.

See a more complete draft report from earlier this year.

The Save Main group is opposed to a mixed-use five-story building to be built on the southern edge of Glen Ellyn’s downtown. Here is a 2018 description from the Daily Herald:

A new redevelopment plan for an old shoe store in downtown Glen Ellyn would replace the long-vacant building with an apartment complex that would rise above neighboring restaurants and shops…

Larry Debb and John Kosich are the two principals for the project that would demolish the Giesche store to make room for a five-story apartment building with about 5,360 square feet of first-floor commercial space. The footprint would include what is now the village-owned Main Street parking lot…

But in a letter to village planners, Kosich and Debb said they’re proposing a “condo quality” building with 107 rental units. A two-level parking garage would provide 147 public parking stalls on the first floor, with access off Main Street, Hillside Avenue and Glenwood Avenue. The garage’s second floor — reserved for apartment residents — would contain 142 stalls…

Such a mixed-use development with parking would align with the village’s 2001 comprehensive plan and 2009 downtown strategic plan, Hulseberg said. The latter recommends the village add at least 450 new residential units downtown.

Neither of these projects are unusual for suburban communities. Indeed, they both attempt to take advantage of unique traits already in the suburb.

In Wheaton, the Roosevelt Road corridor has been an area of interest for the city for decades. With tens of thousands of cars passing through each day, it presents an opportunity, particularly since it is just south of the downtown (and traffic does not necessarily turn off Roosevelt to go downtown) and north of the other major shopping area at Danada (along the busy Butterfield Road corridor). But, Wheaton has generally been conservative about what development they allow along this stretch. Compared to Glen Ellyn to the east or the Ogden Avenue corridor in northwest Naperville, the Roosevelt Road stretch in Wheaton is relatively void of strip malls, fast food restaurants, car repair places, and rundown facilities. Again: this has been an intentional effort to maintain a certain level of quality.

The proposed changes would build on this by updating some uses (most suburbs utilize single-use zoning but this can be restrictive in certain areas) and try to encourage some cohesiveness across stretches. What is now a hodgepodge of offices, some older houses, some more recent office buildings, could have a more uniform character and present a more pleasing aesthetic. I don’t know how many people will walk along such a busy road but it certainly does not lend itself to that now. All of this could help improve aesthetics and bring in more revenue from taxes in a revitalized district. Having a more uniform plan could help bring in more money for the city which then helps relieve local tax burdens.

In Glen Ellyn, such a project both fits with the village’s own goals and echoes what numerous suburbs in the Chicago region have tried to do: encourage mixed-use buildings in downtown areas near train stations and existing restaurants and shops. This new project would add to a fairly lively restaurant and retail scene while also adding more residents (and probably wealthier ones – this is not about suburban “affordable housing”) to a suburb that has little greenfield or infill development available. The new residents would patronize local businesses, utilize the train, and contribute to a density that could make the downtown even livelier. Again, one of the benefits would be increased tax revenues: the vacant property would have a more profitable use, the first-floor businesses would add sales tax monies, and the new residents who probably have limited numbers of children would bring in tax dollars.

If these projects are in line with suburban plans – let alone the long-term plans for each community – what are the residents objecting to? More on that in Part Two tomorrow.

Turning a large suburban office campus into a “metroburb”

There are plans in the works to transform the former 150-acre campus of AT&T in Hoffman Estates into a “metroburb”:

Village officials announced in mid-April that they were in talks with representatives of Somerset, who had recognized an opportunity to apply the lessons learned on their conversion of the 2 million-square-foot former Bell Labs building in Holmdel, New Jersey, into the mixed-use Bell Works project to the 1.6 million-square-foot AT&T buildings.

The key similarity apart from their overall sizes is the large central atriums both properties have, Somerset Development President Ralph Zucker said.

“All of our retail is facing that center court,” he said of Bell Works. “It’s really a vibrant street scene … literally a small downtown.”

Somerset’s concept plan proposes using the existing AT&T buildings for 1.2 million square feet of offices, 60,000 square feet of retail shops and 80,000 square feet of conference space, while new construction would add 375 apartments, 175 townhouse units and possibly a 200-room hotel.

Zucker said the term he coined for this concept at Bell Works — “Metroburb” — is one he hopes will become generally used among other developers.

Successful redevelopment of sizable properties is crucial to both cities and suburbs. Once companies make decisions to move away from existing properties, communities have two goals in mind. First, they need to find ways to make that land attractive to other users. Even a nice facility may not meet the needs of many other users or it may be sized wrong. Second, they often hope to turn the property into something that can generate more for the local tax base. At the least, property taxes are helpful but if retail can be incorporated into the property, sales tax revenue can be generated. The redevelopment proposed above seems to tackle both of these issues: it splits up the space into multiple desirable uses (and there are not that many single firms that need 1.6 million square feet) and has multiple uses (business, retail, and residential). This might have the bonus holy grail of redevelopment: the potential for a mixed-use property that could become a vibrant community on its own.

Given the initial use of this campus, it would be fun to see the AT&T history incorporated into the redevelopment. Bell Labs has an important research and development legacy in the United States and featuring its accomplishments could help set this redevelopment apart from other suburban palces that have less character or history.

The difficulties in changing bedroom suburbs into vibrant mixed-use places

What does it take for a bedroom suburb – the stereotypical placeless home to subdivision after subdivision – to change into something else? Here is a quick summary of the efforts in one Chicago suburb:

Bartlett was a typical “bedroom” community — people who worked in downtown Chicago took the train back and went straight home. The Metra station used to be surrounded by industrial buildings, said Tony Fradin, the village’s economic development coordinator. There was no reason to hang around downtown, and no practical way to avoid driving everywhere you needed to go.

The process of transit-oriented development, like the growing of a sapling into something that will provide shade, takes a long time and a lot of patience, said RTA and village officials. Bartlett got started by putting more development near its Metra station in 2005, replacing the obsolete industrial buildings with three-story condominiums and two-story mixed residential and retail space near the train. The complex includes the popular 2Toots Train Whistle Grill, which carries customers their food on a model train, and O’Hare’s Pub, which offers live music. The developments were backed by a tax-increment financing plan…

But the recession put a stop to further development. In 2013, Bartlett tried again to improve its downtown, applying for an RTA grant in 2014, and completing its TOD plan late last year, said Fradin.

Fradin said Bartlett hopes the plan, which includes ideas to improve pedestrian safety such as new crosswalks, will create a more urban, “walkable” feel. Bartlett plans to market a 1.8-acre site across from the Metra tracks and hopes to attract a developer in the next year or two for a high-density residential building, as outlined in the TOD plan. Another possible development site is a 5-acre, Metra-owned patch of land directly adjacent to the tracks, which Metra has held for years for possible parking.

Three things stand out to me from this example as well as the efforts I have observed in my research of suburban communities:

  1. These redevelopment efforts take time. The story above cites 2005 as the starting point of this kind of development and the suburb is still working at it twelve years later. One or two significant buildings or developments might be exciting but more is likely needed. The transformation of downtown Bartlett could take decades.
  2. Not all bedroom suburbs will be successful in developing a vibrant downtown, even if they follow all or many of the steps that characterized other successful suburbs. Sometimes it works but a lot of things – including internal decisions as well as outside forces that are beyond the control of a suburb – have to go right.
  3. Even if this more vibrant, around-the-clock downtown develops, it would be interesting to see what happens to all of the community since many do not live right downtown. Do these new developments around the train station cater primarily to young professionals? Do people from the edges of Bartlett regularly go to their own downtown or do they seek out other suburban spots (like Elgin or Woodfield/Schaumburg or the I-90 Corridor)? Do all residents want the quiet character of their bedroom suburb to change or feel that resources should be diverted toward

Naperville cannot easily rebrand and revive East Ogden Avenue

Naperville is considering ways to improve East Ogden Avenue on the suburb’s northwest side:

The city, along with the Naperville Development Partnership and the Naperville Area Chamber of Commerce, sponsored an open house Tuesday to gather opinions on a streetscape renovation plan — and how to pay for it — from property owners, business owners and nearby residents.

Those who stopped by Tuesday morning said they liked elements of the proposed facelift for the stretch of Ogden between Washington Street and Naperville’s eastern border east of Naper Boulevard, but they worried the cost could prevent it from happening…

The idea is to update the look and feel of intersections and parkways along East Ogden Avenue so drivers know they’re in Naperville, shoppers find the area more inviting and businesses see it as primed for development, said Christine Jeffries, president of the Naperville Development Partnership…

Each [intersection] could receive some sort of sign for “Uptown Naperville,” some with large silver letters spelling out “NAPERVILLE” or referring to the city with a tall “N.”

As usual, there are questions about how to pay the $5 million the plan requires. That is one issue.

But, I would suggest there is a deeper issue: can these kinds of improvements truly lead to more development and a stronger sense of community? East Ogden Avenue is like many sizable suburban streets: it is fronted by numerous businesses (ranging from restaurants to auto care facilities to big box stores to home converted to offices), there are signs and buildings everywhere, and has numerous cut-outs to the road. To many, this look is not very attractive. These are the sorts of streetscapes that wealthier suburbs today try to avoid even if they were common several decades ago.

Does putting signs at intersections, putting in new landscaping, burying power lines, and rebranding the stretch “Uptown Naperville” really change what is there?  It may look nicer. It may tell people more clearly that they are in Naperville (God forbid that they are in Lisle). But, is this the true answer to a kind of development that is outdated and disliked? I am skeptical. Just contrast this stretch to downtown Naperville where a certain level of density and vibrancy leads to an exciting scene. The stretch on Ogden is too long, too broken up, devoid of attractive residential units (though they are often just behind the businesses), and difficult to connect.

An alternative approach might be this. Take one of the busier intersections, like the northeast corner of Washington and Ogden. There is a busy strip mall there with a Jewel grocery store and a Starbucks in the outlot. Why not build a mixed-use residential development just to the north or east. Make this small area a bit of a destination. Increase foot traffic (and who right now really wants to walk or bike along Ogden). Provide more anchors to a transient stretch. If this is successful, keep the idea moving to the east. This is a much longer project and it may not be possible to always put in attractive mixed-use buildings. Yet, there is demand for residential units in Naperville and units along Ogden are not that far from downtown or the downtown Metra station for those interested in commuting.