Starchitect Jahn’s buildings in the Chicago suburbs

World famous architect Helmut Jahn died over the weekend. He built iconic buildings in major global cities and several notable buildings in the western suburbs of Chicago.

A native of Germany, Jahn won international recognition and awards for projects around the globe, including United Airlines Terminal 1 at O’Hare International Airport, the former Citigroup Center (the main entrance to the Richard B. Ogilvie Transportation Center) in Chicago, and the Sony Center in Berlin.

Besides MetroWest in Naperville, his suburban work includes the Oakbrook Terrace Tower in Oakbrook Terrace.

Here are images of the two buildings referenced:

Both buildings are interesting structures to see in their suburban settings. They would not be out of place in a major city. They are full of steel and glass. They have sharp angles. They can be seen from a distance and are of a height beyond most suburban buildings.

But, they also stick out. They are right next to major highways. They are not surrounded by other tall buildings; the size of the Oakbrook Terrace Tower is particularly notable. Instead, they are surrounded by parking lots and smaller suburban office parks. They are in the suburbs but they are not of the suburbs; few residents would want these structures anywhere near their single-family homes.

In other words, a starchitect can build in the suburbs. In many parts of the United States, they are growing and a majority of Americans live in suburban settings. Interesting buildings help add to the status of certain suburbs as job centers. Yet, the interesting buildings by a famous architect can only go so far in sprawling settings: they do not really fit in even as they provide something different to view at 70 miles per hour.

Target on The Magnificent Mile is preferable to empty retail space

With reports of Target’s interest in moving to Macy’s former space in Water Tower Place along Michigan Avenue in Chicago, I heard some concern about such a normal big box retailer moving into a prestigious retail space. Here is the problem for Chicago and many other communities facing retail vacancies: filling space can be really hard.

Google Street View image August 2019

Brick-and-mortar retailers are not doing well overall. This extends from suburban shopping malls to high-status locations like Manhattan or downtown Chicago.

And this issue is not just about shopping and what people can purchase. Busy retail anchors a number of important activities: sales tax and property tax revenue for municipalities; tourism or visitors from other communities who want to come spend money because of the scene; restaurants and other land uses that cater to those out for a shopping trip. Vacant structures do not just lack these features; their emptiness is also a blight, a suggestion that corporate and visitor interest is low, a reminder that the property is not generating the kind of revenue it could.

Filling large retail spaces is no easy task. Many communities are struggling with this and seeking other land uses (recent examples here and here). A building with some sort of activity, even if it is a downgrade in terms of status, is preferable to no activity. The Magnificent Mile might not seem so magnificent with Target – people can find this shopping all over the place – but it beats becoming The Vacant Mile.

Videogames under the tree to sizable global industry

The flood of new gaming consoles and new game titles to Americans for the Christmas season hints at the size of the video gaming industry:

Photo by lalesh aldarwish on Pexels.com

Global videogame revenue is expected to surge 20% to $179.7 billion in 2020, according to IDC data, making the videogame industry a bigger moneymaker than the global movie and sports industries combined. The global film industry reached $100 billion in revenue for the first time in 2019, according to the Motion Picture Association, while PwC estimated global sports would bring in more than $75 billion in 2020

The videogame industry has boomed in recent years because of the variety of ways to play games. Gone are the days when all one had to track were console sales and games sold for their respective consoles and PCs. With the rise of digital-copy game sales, mobile games, in-app purchase freemium games, cross-platform games that aren’t limited to a specific console, streaming game services like Microsoft’s Game Pass, games-as-a-subscription models, and online distribution services like Steam, along with varying levels of transparency, anyone wanting to make apples-to-apples comparisons encounters an unwieldy fruit basket.

While console sales will get a boost from new versions, that’s not the biggest chunk of the industry, nor the fastest-growing. The biggest gain is expected to come from mobile gaming, with China playing a big role in smartphone and tablet gaming revenue, Ward said. Excluding in-game ad revenue, world-wide mobile gaming revenues are expected to surge 24% from a year ago, to $87.7 billion.

The gamification of the world is well underway.

Seriously, it is interesting to compare the status of videogames compared to the two industries mentioned in the article: movies and sports. These are established industries with prominent actors around the world. They have been established for decades. Videogames, on the other hand, are more recent – only several decades in the hands of the global public – and still have negative connotations for many (too violent, a waste of time, played only by a certain segment of the population, etc.). Since videogames are big business and part of their spread is due to the smartphone, which many have, will videogames have a different status in a few years?

Naperville considering affordable housing – but primarily for current residents?

Naperville will soon discuss recommendations from a consultant regarding affordable housing. Several of the suggestions point to at least some of the affordable housing serving current residents:

low angle photo of balconies

Photo by Jovydas Pinkevicius on Pexels.com

Commissioners say the ideas are designed to help the city meet a state mandate on affordable housing and provide more places where seniors, young professionals and others who can’t afford many of the houses in Naperville can live…

Establish a rehabilitation loan fund to help low-income senior homeowners make repairs so they can age in place.

Establish a housing trust fund to help veterans, seniors, populations with special housing needs and first responders (including nurses, police officers and firefighters) purchase a home…

These ideas and others are listed in the report from SB Friedman, which found that roughly 22% of homeowners and 44% of renters in Naperville are spending more than 30% of their income on housing, making them “cost-burdened.” Many of these households are low-income, the report found, saying “there appears to be a considerable need for both owner- and renter-occupied affordable housing and income-restricted housing throughout the city to meet current residents’ needs.”

One way for wealthier suburbs to address affordable housing is to look for solutions for some of the populations mentioned above: seniors who are retired and are downsizing or having a hard time affording local housing on a restricted income; young professionals who are just out of school and looking to establish their career; and local workers who are seen as essential to the community such as teachers, fire fighters, and police officers. These are all groups that a wealthier suburb would want to keep as older residents should be able to age in place, attracting young professionals is important for keeping a strong tax base and having more young families in the community, and having certain occupations near their jobs and involved in the community is viewed as a plus.

At the same time, it is not clear that this gets at the full range of housing needs in the Naperville area, Chicago region, or the United States. There are lots of people who would benefit from cheaper housing costs yet the issue of affordable housing in many places is also connected to race and class. As noted in this article, housing is a social justice issue. Is Naperville addressing social justice issues if it is providing housing for the populations discussed above? Or, would providing housing for those with lower-wage jobs make more sense? Or, could cheaper housing provide opportunities for some future residents to experience upward economic mobility in a community with a lot to offer?

There is still much that could happen in these discussions. Naperville has a lot to offer to residents and it is a well-off and high-status community. What comes out of these conversations could help determine what the population of Naperville looks like in the coming years.

 

Welcome in Amazon, look for other businesses to follow?

Amazon will soon open a new facility in Palatine, Illinois and get a tax break to do so. That is normal. This other part caught my attention: the suburb hopes Amazon’s arrival helps spur more development.

Amazon will move into a warehouse and distribution facility under construction off Hicks Road south of Northwest Highway, and Palatine officials hope the online retail giant’s arrival sparks more development in that industrial area.

“This is a good bit of news for us, for sure,” Mayor Jim Schwantz said Monday. “It’s the right kind of use for that area. It’s a light draw on our services. It’s not going to take a ton of water. It’s not going to take police or fire calls. We know Hicks Road is built to be able to handle the additional traffic.”

Lots of communities want Amazon to move in. They bring jobs, they fill warehouses, and they bring a big name. Just remember all the cities that put together plans to try to allure Amazon HQ#2.

But, this is another dimension of having a successful company move into your community: it could lead to further growth. Having Amazon puts you on the map. Companies could choose from dozens of warehouse or manufacturing locations in the Chicago region. But, if Amazon is already there, this may attract other firms. Success begets success, growth leads to more growth.

Another example, perhaps two decades in the making: suburbs and neighborhoods all wanted a Starbucks. Not only would this bring in sales tax revenue and more shoppers. It put a place on the map. It suggested the place was cool enough, was up and coming or had an established set of well-off residents. Starbucks could pave the way for other similar businesses that would bring in or provide for a certain crowd.

Or, think about headquarters. These facilities may not have that many employees or may just be an office building but being home to headquarters, as opposed to branches or locations, is something special. Headquarters attract headquarters. They signal something.

A typical Amazon facility is not going to be flashy. It is not going to attract many visitors or shoppers. However, it will add to a community’s tax base, provide jobs, and help the community say they are home to one of the most important companies in America. That Amazon distribution center may be the start to something greater.

Naperville gaining a reputation for racist incidents?

A recent controversy involving race at a Naperville Buffalo Wild Wings leads to considering evidence for and against the idea that Naperville has more racism than other suburbs:

The city, which census figures show is nearly three-quarters white, has also faced concerns about diversity and inclusion. After Naperville resident and state Rep. Anne Stava-Murray said the city had a legacy of white supremacist policies, the city convened a public Naperville Neighbors United discussion, where organizers said the city had work to do in areas like building minority representation among city leaders

Kevin Mumford, a University of Illinois professor who has studied race relations, said racism could be on an upswing in suburbs such as Naperville because of events in Chicago and nationally. African-Americans in high-profile positions in Chicago, such as the new mayor and leaders of the Chicago Teachers Union who were highly visible during the recent teachers strike, can cause “status anxiety” among white residents across income levels. That can be exacerbated by Trump supporters who feel a strong anti-Trump sentiment in Illinois, he said…

“I know about Naperville,” tweeted pop singer Richard Marx, who grew up in north suburban Highland Park. “And, disgusting as this is, it’s not terribly surprising.”…

Naperville has a problem with racism, but it’s no worse than in any neighboring suburb, Sullivan said. Instead, she suggested Naperville residents are more willing to confront it. Residents shared the video of the gas station confrontation and the essay from the former Naperville resident because they wanted to talk about them, she said.

The two sides presented in the article put it this way: is Naperville more racist than other suburban communities or does it just get more attention because of its status and the willingness of community members to talk about the issue? Figuring that out would require deeper knowledge of how race and ethnicity has played out in Naperville as well as insights into how race and ethnicity is treated across a variety of American suburbs, including suburbs similar in characteristics to Naperville.

No suburb wants this reputation, particularly one with lots of accolades, wealth, and a vibrant downtown. And Naperville leaders would likely point to some significant demographic changes in the community in recent decades plus efforts to encourage interaction between groups in the community as well as with local government. At the same time, communities can acquire a status or reputation through repeated events. Similarly, what leaders say is happening in a community does not always match day-to-day realities of what residents and visitors experience.

(UPDATE 11/6/19 at 10:48 AM: The character of suburban communities can change through different decisions and reactions to both internal and external social forces. In recent years, Naperville has become home to political protests, a change that would have been difficult to forecast for a traditionally conservative community.)

Can you sell a product with the main pitch that it will help consumers “keep up with the Joneses”?

Comcast is currently running an advertisement titled “The Joneses” that makes an explicit connection to keeping up with the consumer’s reference group:

It is regularly stated that consumers want to keep up with others around them. Reference groups matter as look to others around them as they consider what to acquire.

So, can you run a successful advertising campaign based on (1) regular human behavior (2) that is regularly maligned? “Keeping up the the Joneses” is not often a positive term. Instead, it implies striving to be like others. These strivers are not content; they have to earn approval through acquiring what others have. All of this can lead to conformity if everyone is chasing some trend or perceived advantage. Suburbanites have heard this critique for decades: they are trying to look like the leading middle- to upper-class suburbanites. In the Judeo-Christian tradition, perhaps these people are viewed as violating the tenth commandment.

Perhaps this is all meant to be ironic. “Keep up with the Joneses” while winking or doing something unusual with all of that high-speed Internet. But, this commercial does not seem to have that tone. The goal does seem to be to have the same high-speed connection as everyone else. Maybe the true story is something like this: “keep up with the Joneses’ and everyone can use that Internet to hide in their private residences and do their own thing online and in social media.

Focusing on the fastest-growing American cities reinforces the idea that growth is good

For American communities, growth is generally good. Growth comes with multiple benefits including the idea that it is an important community to pay attention to. In other words, growth equals a higher status (and population stagnation or decline is bad).

So when USA Today publishes a list of the fastest-growing cities in each state, it helps reinforce the idea that explosive growth is good. Here are a few of the listings with higher rates of growth:

Arizona: Phoenix-Mesa-Scottsdale
• 2010-2018 pop. growth: 15.6% (state: 11.9%)
• Feb. 2019 unemployment: 4.3% (state: 5.1%)
• 2010-2017 job growth: 20.1% (state: 16.6%)
• Median household income: $61,506 (state: $56,581)…

Colorado: Greeley
• 2010-2018 pop. growth: 23.7% (state: 12.8%)
• Feb. 2019 unemployment: 2.9% (state: 3.7%)
• 2010-2017 job growth: 34.1% (state: 19.9%)
• Median household income: $68,884 (state: $69,117)…

Florida: The Villages
• 2010-2018 pop. growth: 36.6% (state: 13.0%)
• Feb. 2019 unemployment: 5.1% (state: 3.5%)
• 2010-2017 job growth: 42.9% (state: 19.5%)
• Median household income: $54,057 (state: $52,594)…

Oregon: Bend-Redmond
• 2010-2018 pop. growth: 21.7% (state: 9.2%)
• Feb. 2019 unemployment: 4.5% (state: 4.4%)
• 2010-2017 job growth: 36.0% (state: 17.8%)
• Median household income: $66,273 (state: $60,212)

Growth can have additional benefits beyond a higher status. Having more residents  is related to more taxes, more businesses, and more clout in the political realm. Growth can make local politicians who presided over the changes look good. Communities can change their character in significant ways when growth comes.

At the same time, growth can have a number of downsides: strained local services, lots of new residents in the community (which can lead to issues with more longer-term residents), the use of more land and resources, and an accrual of the benefits of growth to only some in the community (usually in the local growth machine) rather than the community as a whole. Furthermore, communities can usually only experience significant growth for a short period.

On the whole, there are many worthwhile American communities that have limited population growth (and the growth could be limited for a variety of reasons). Only paying attention to the fast-growing places and drawing lessons from those communities unnecessarily valorizes big population increases while diminishing the other factors that contribute to what makes a worth community to live in.

The Chicago area’s net migration is not bad but it can’t attract new residents

The newest Census data suggests both Chicago and the Chicago region are losing residents. But, it may be less about people moving away and more about an inability to attract new residents:

ChicagoAreaPopulationChange2019

Some experts note the metro region also isn’t attracting enough newcomers to make up for people who move away. Immigration from other countries also has long helped stem population loss, but in recent years this influx has been less robust, according to census estimates. Meanwhile, birthrates are slowing statewide, which means there are fewer new residents to make up for other losses…

“We don’t have a particularly high rate of just out-migration, but very few people come here relative to our population, compared to the rest of the country,” said Daniel Kay Hertz, research director at the Center for Tax and Budget Accountability.

Using numbers from the 2015 American Community Survey, conducted by the U.S. census, his agency found that Illinois ranked in the middle of the pack nationally on the rate of people leaving the state, but was third from the bottom on the rate of people coming in…

“The narratives around the state matter and can shape people’s decisions,” Hertz said. “And the ones in Illinois are really, really, really negative in ways that I think overstate some of the issues relative to other places.”

Any major metropolitan area is going to have some people moving out as they get new job opportunities, see greener pastures elsewhere, move for family reasons, and so on. The goal then is to also attract new residents even as some are moving out. Population increases come from new residents plus more births than deaths.

This one expert cited above hints at an interesting conundrum for any city or region beset with population loss or narratives of decline: how do you reverse the trend once it starts picking up steam? As noted, the narratives both within and outside the Chicago region and Illinois are not good: pension debts, inequality, corruption, social issues that have lasted decades, higher taxes, a lack of innovation, not a business-friendly climate, harsh winters, important but bottlenecked infrastructure. If Chicago was the exemplar American city at the turn of the twentieth century, that is no longer the case. Other cities are on the rise, particularly in the Sunbelt stretching from Washington D.C. (with the expansion of and attention paid to the federal government, perhaps now truly the second most important American city) to Houston (whose population keeps growing and may soon surpass Chicago).

It is hard to know exactly how much the larger narrative pushes people to avoid the Chicago area in favor of other places. At the same time, status matters. People and businesses want to go to places that are on the way up, that are gaining people, that have an energy moving toward the future. Chicago and its region still have a lot to offer. For example, millennials still like portions of Chicago for their thriving cultural scenes plus relatively cheap housing compared to other major cities. Perhaps Chicago’s long-term fate is to roughly stay the same at the center of the Midwest region, a significant portion of the country that may also be losing population and status.

Advertising your business as five miles east of a wealthy suburb

Suburban businesses can use odd geographic markers to describe their own location. One building material company in the Chicago area regularly runs radio ads with this description of their location: five miles east of Oak Brook in Broadview. Why might they do it this way?

  1. Compared to Broadview, Oak Brook is a more known location.
  2. Oak Brook has a large shopping area with a mall and all sorts of restaurants and other businesses nearby. People already out shopping may be willing to drive a bit further.
  3. Oak Brook is a higher status community with more wealth. Also, Broadview is majority black and Oak Brook is majority white.
  4. They are trying to reach wealthier suburban customers. This is why they do not say they are roughly 14-15 miles from the center of the Loop.

All in all, the Broadview location is about 10 minutes east of Oak Brook. That is not a long drive for suburbanites who may be willing to drive all over the place for good deals. And the advertising strategy may have some effectiveness as the business keeps using it. Still, it strikes me as a bit odd to downplay their own location in favor of a suburb five miles away…