Bubble alert

Downtown office impresario John Buck says in an article by Alby Gallun in today’s Crain’s that his next wave of real estate investments will focus on turning around distressed condo projects in Chicago:

bq. “I feel there’s overbuilding,” Mr. Buck says. “If we’re right about that, then I think there will be more takeovers by the lending community, who we enjoy a good reputation with, and that’s really what our focus will be.”

Quick takes

* Not too surprisingly, a King County, Wash. study by Larry Frank’s team at UBC finds that people walk if there’s something to walk to (particularly retail and transit) and a way to walk there. “The study showed that transit use and walking are ‘highly synergistic.’ Transit use was highest in locations where walking was most prevalent, and the choice to walk was highest where buses and trains were most convenient and efficient.”

* In an article on how “the hot construction market has fueled NYC’s hybrid inclusionary-linkage program”:http://www.nytimes.com/2005/10/23/realestate/23cov.html, the Times mentions that churches in Brooklyn are looking to the linkage fees to do “air rights housing deals”:http://www.cnu.org/about/index.cfm?formAction=project_view&templateInstanceID=789, a concept CNU awarded in the 2004 Charter Awards:

bq. [D]eals are being considered by churches in central Brooklyn that “flourished in one era and now have a lot of underutilized property” — rectories or schools. If they build affordable housing on their property and finance it by selling air rights, they will also help their members. “Their angst was that their congregants were being priced out of their neighborhoods…” [said Michael D. Lappin, president and chief executive of the Community Preservation Corporation].

* Two notable citations for TDM publicity go to (1) GetDowntown, the Ann Arbor downtown chamber of commerce’s TDM program, for its May “Curb Your Car Month”:http://www.getdowntown.org/cycm (i.e., commuter challenge month) slogan of “go on a low-car diet” and (2) Cleveland’s RTA for this ad message:

* The NY Times editorial page on Monday “called for higher gas taxes”:http://www.nytimes.com/2005/10/24/opinion/24mon1.htm. Higher revenues would be used to expand low-income tax breaks, scrap gas guzzlers, fund new mass transit, and sponsor clean energy research, and markets would react to higher pump prices by pushing price pressure upstream to producers. (How’s that for alliteration?)

bq. The government must capitalize on the end of the era of perpetually cheap gas, and it must do so in a way that makes America less vulnerable to all manner of threats — terrorist, environmental and economic. The best solution is to increase the federal gasoline tax, in order to keep the price of gas near its post-Katrina highs of $3-plus a gallon. That would put a dent in gas-guzzling behavior, as has already been seen in the dramatic drop in the sale of sport-utility vehicles… “We know that the days of unlimited, inexpensive gasoline are over,” William Clay Ford Jr., chairman and chief executive of the Ford Motor Company, said last week. So be it. Cheap gas is no longer compatible with a secure nation, a healthy environment or a healthy economy – if ever it was. The real question is whether we should continue paying the extra dollar or two per gallon in the form of profits to the Saudis and other producers, or in the form of taxes to the United States Treasury, where the money could be used to build true energy independence.

Four+one = ?


Four+one = ?

Originally uploaded by paytonc.

This building type — known for its four levels of studio apartments stacked atop one layer of parking — is ubiquitous in some parts of Chicago and, unfortunately, in some parts of urban California. (Unfortunately, since the ground-level supports have a way of snapping during earthquakes.) Today, we think of these as eyesores and grieve over the mansions that disappeared in their wake, but they are a peculiar reminder of the very different society that was postwar America. These cheap concrete frame and picture-window constructions sprouted in many lakefront neighborhoods, especially Lakeview and Edgewater, as three factors collided:

(1) a pent-up demand for studio apartments, which became fashionable as changing social norms made it acceptable for young men and women to live on their own, as residential hotels and rooming-houses became socially unacceptable, and as the baby boom created an unprecedented number of new households after a twenty-year construction drought;

(2) cheap new construction materials and techniques, particularly reinforced concrete, air conditioning, and aluminum window frames, arriving at the same time that architectural modernism permeated the public imagination.

(3) the permissive new 1957 zoning ordinance, which projected that Chicago would grow to five million residents (from its already overcrowded 1960 peak of almost four million) and would require many new residences — especially along the perpetually popular lakefront, which would be served by a new subway line. Their boundless optimism crashed and burned in the 1970s-1980s; instead of growing, the city’s population plummeted by over a million, none of the new subway lines
envisioned ever materialized, and much of the city’s economic might trickled out to the suburbs or gushed to the Sunbelt, the Third World, and to super-dominant global cities.

In 1967, the City Council amended the zoning ordinance to ban all-studio buildings and construction of the 4+1 ceased almost overnight.

This particular 4+1 occupies a site near a quiet corner miles and miles from any of its sisters. Guessing the neighborhood will be easy, so I’ll up the ante and ask: of the city’s countless Starbuckses, which one is this nearest?

The great car giveaway

This month’s _Washington Monthly_ comes with a stunningly bad feature by Margy Waller, suggesting a huge new federal entitlement to help America buy more of what it hardly needs: cars. Hence, a letter to the editor:

The illustrations accompanying October’s “Auto-Mobility” by Margy Waller say it all: long lines of cars stretching out to the horizon, all stuck in traffic. This points to the most obvious problem with Waller’s foolish thesis: her new fleet of cars, like those of Houstonians fleeing Hurricane Rita, will end up stranded in traffic jams. 3.5% more cars might not sound like much, but her proposal would put too many of those cars right where and when they’re least wanted: in major cities at rush hour. Our cities simply cannot fit any more cars, and the postwar solution — to abandon or bulldoze cities in favor of plentiful parking in the suburbs — has cost our nation dearly.

Even more perversely, the Great Car Giveaway would further increase the already staggering social costs that drivers impose on American society, both drivers and non-drivers alike: most obviously, air and water pollution, death and injury from crashes, and the military and monetary costs of securing oil from overseas. These costs are highest in and around cities, where, again, Waller’s proposal would have its greatest impact. These costs also disproportionately fall onto the poor, who tend to drive old clunkers with poor mileage, absent or failing safety systems, and high maintenance costs.

Perhaps most twistedly, her proposal further penalizes those who quaintly use truly economical (and sustainable) ways to get to work, like walking or cycling, or who telecommute. These millions of workers currently do not benefit from existing commuting tax subsidies, even though we place zero burden on our groaning road network or on our polluted skies.

Moreover, the duplicitous proposal has little merit on its face. America already has more cars than licensed drivers. Subsidizing transportation for only the 4% of Americans who are truly transit dependent (many living in cities) would cost much less. Meanwhile, Waller conveniently forgets that the federal government already subsidizes free workplace parking (by deducting employee parking as a pre-tax benefit) to the tune to $85 billion annually, writing off one of the largest costs of car ownership.

Rather than buying cars (or clothes, or toothpaste) for the working poor, our nation might consider giving them the cash to do it themselves. A $100 billion Earned Income Tax Credit expansion, or a FICA payroll tax rebate, would work wonders for low-income Americans. Funding that through higher taxes on pollution, or by rescinding the parking credit — in other words, a green tax shift — would also work wonders for our planet.

Edit: Alan Berube, William G. Gale, and Tracy Kornblatt of Brookings say that the “most advantageous tax policies”:http://www.brookings.edu/metro/pubs/200506_taxpolicies.htm to help the urban working poor would fall along my lines: tax credits for child care, saving, health insurance, and homeownership. The last is particularly crucial: shifting from a deduction, which favors the upper class and benefits those with million-dollar second homes, to a capped credit which non-itemizers like me can take advantage of.

Edit 2: Spotted something somewhere online that had Waller clarifying that the credit would go to anyone who reported commuting expenses, even if they were less than the credit. Still, doesn’t that exclude telecommuters or those running home based businesses? The EITC does a pretty damn good job of helping the working poor already; no need to add yet more lines to the tax code.

Bridgeport in the news

Shruti Daté Singh writes in Crain’s:
“Bridgeport’s alderman, James A. Balcer (11th), hopes the World Series will boost his efforts to redevelop the Halsted Street corridor. He wants more stores, coffee shops and high-end restaurants.”

Probably not what the Lumpen kids had in mind when they christened (in a strange bit of irony so bitter that it circles right around to sound smarmy and booster-ish, especially when uttered by “artists”) Bridgeport as “the community of the future”:http://lumpen.com/communityofthefuture/home.html.

Update: Not only did the Sox win, but “a Missed Connection”:http://chicago.craigslist.org/mis/106744217.html was made aboard the #44 Wallace: “I never see cute, IPod-wearing, backpack-carrying boys on my bus… I’m crazy about your hair. I hope you were impressed with my lefthand text-messaging/righthand IPod scrolling moves. Double-fisting technology is hot?” Next up: well, who knows? As Lawrence Downes wrote in the Times on Sunday, “Packs of rabid wolves sweeping down from Canada… Sinkholes swallowing Nebraska. An asteroid.”

14th amendment

An Oregon court struck down “Measure 37”:https://westnorth.com/2005/04/14/measure-37-planning-failed-to-engage-imaginations, saying that the measure violates equal protection by creating two classes of property owners (those who bought before and after the regulations). This may not ultimately stand up in appeals, depending on Oregon precedent, but I agree with the general argument: grandfathering in some individuals, as Prop 13 in California does with property taxes or NYC’s rent control does, utterly fails the spirit of equal-protection clauses even if those other examples have been found legal. Paying a “Johnny come lately” tax may sound fine to long-term residents, but some of us just can’t help that we weren’t born in the right place at the right time.

Speaking of Prop 13, the local anti-property tax groups appear to be looking to it for inspiration. The long-promised tax swap apparently isn’t enough for them; they’d rather go the extreme route.

Parking talk

The Onion offers up these solutions to high gas prices:

While the Mandatory Car Ownership Act might be fiction, its local counterpart, the pesky minimum parking requirements set forth by zoning, effectively ensures the same result. Renowned anti-parking guru Donald Shoup will speak about how to properly price parking — or even recognize that it’s a good that _can_ be priced — “here in Chicago on 2 November”:http://metroplanning.org/press/press.asp?objectID=2948.

Excerpts from his show-stopping presentation at APA in San Francisco:

bq. [P]arking policies are important and that our current policies are exactly the opposite of what they should be. Parking is important because the average car is parked 95 percent of the time and parking is mispriced because it’s free to the driver 99 percent of the time… Every year the U.S. spends about as much to subsidize parking as we spend for Medicare or national defense. The financial costs are enormous, but so are the many other hidden costs imposed on cities and the environment.

bq. Off-street parking requirements encourage us to drive wherever we go because we know we can usually park free when we get there. Eighty-seven percent of all trips in the U.S. are now made by car, and only 1.5 percent by public transit. American motor vehicles by themselves consume one-eighth of the world’s total oil production. Off-street parking requirements help explain why the U.S. has 1.2 motor vehicles per licensed driver and slightly more than one vehicle per person of driving age…

bq. The second policy I recommend is that cities should charge fair market prices for curb parking, by which I mean the lowest price that will achieve about a 15 percent vacancy rate for curb spaces so that anyone can always find an available space wherever they go. Charging fair market prices for curb parking will bring parking into the economy, like housing, food, gasoline and just about everything else we buy. Most markets depend on prices to allocate resources, so much so that it’s hard to imagine they could operate in any other way. Nevertheless, cities have tried to manage parking almost entirely without prices.

bq. The third policy I recommend, to make charging market prices for curb parking politically feasible, is that cities should spend the resulting curb parking revenue to pay for neighborhood public investment, such as sidewalk repair, public security and putting the overhead buyers underground. When nonresidents to park at the curb, and residents receive all the benefits, residents will begin to see the curb parking through the eyes of a parking lot owner. Political support for a policy of charging market prices for curb parking does not depend on a belief that market prices for curb parking will benefit the whole city, such as by reducing air pollution and traffic congestion — which it will do. Rather, support will come from the selective benefits the curb parking revenue can finance in the neighborhoods that let nonresidents park on the streets. And so the improvement in traffic congestion, the reduction of traffic congestion, the better air will be like regional icing on the neighborhood cake.

bq. I think most people do think that free parking at home is built into the social contract. In the proposed residential parking benefit districts, the residents would park free just as they do in the current permit parking districts. But in many permit districts, there is a lot of vacant curb space during the daytime when the residents are away at work. Some cities allow non-residents to buy daytime permits in these districts — no more than four permits per block and only in blocks that have vacant curb space. And if the non-residents’ payments for these daytime permits go to fix up that block where the nonresidents park — to repair their sidewalks and trim their street trees and put their wires underground — the residents would see, well, yes, it’s like Monty Python’s idea to solve Britain’s economic problems by taxing foreigners living abroad.

bq. I think that people are paying to park in a place that they want to be, rather than in a place where they can merely park free. I think that cities should aim to be great places where people are willing to pay to park at the curb rather than mediocre places where the only reason you’ll come is if the parking is free. And that really describes much of the United States. It’s a very degraded public environment where nobody will come unless they can park free a few feet from the front door.

Guess where?


Attached housing

Originally uploaded by paytonc.

Posted to the new Guess Where Chicago pool on Flickr, my latest pastime:

This 1880s planned community maintains a remarkable degree of unity. Although the Old surrounding neighborhood has well more than its share of party walls, few of its streets were built by a single hand — and the others were built a century hence, by which point architecture had declined considerably as an art. Its beguiling intimacy is deceiving: neighboring streets are narrower still, but have lower buildings, fewer trees, and even smaller front yards.

Misplaced pride

Today’s “most popular” article at the Trib is a letter by Thomas Condon with some South Side imperialist pablum:

This is an essential part of the difference between the North Side and the South Side. The North Side is home to the more “tender” Chicagoans, those latte-swilling, status-car-driving dandies who think that Lincoln Park is a tough neighborhood. Many are just enjoying their “urban experience” for a few years before moving back to Schaumburg and buying the inevitable minivan.

The South Side is where the real meat of Chicago resides. These are the people and neighborhoods who built America with steel mills, won World War II with manufacturing and continue to supply the real muscle for Chicago’s economic engine.

And we aren’t moving to Schaumburg. Ever.

Well, no. The north side and downtown areas successfully reinvented themselves for the post-industrial economy, but not the south side — which still suffers from higher unemployment and lower incomes. Low per-capita income doesn’t sound like “muscle for Chicago’s economic engine.”

And while they might not move to Schaumburg (hardly anyone does, as it’s a business only town), white south siders WILL move to Oak Lawn or Bolingbrook or Olympia Fields, and black south siders will move to Park Forest or University Park. Indeed, millions have — how else did huge swaths of the south side end up so denuded and depopulated?