“Score: 85 points out of a possible 166 points. If you’re under 25, you may still be a Real Chicagoan. If not, you need to get out more.” Well, that’s somewhat reassuring — I am under 25 and have lived here a scant six years. Even the revised, non-geezer Real Chicagoan Quiz from Eric Zorn at the Tribune still rewards people who listen to commercial radio. (Why?)
Appealing legislation
Illinois has passed a “builder’s appeal” act, similar to “fair share” legislation nationwide [40-B “anti-snob zoning” in Massachusetts or Fair Share/Mt. Laurel laws in New Jersey]. The legislation is weaker than 40-B — it gives credit to municipalities for well-laid plans, even if there’s little chance of implementation — but the spirit of the law is undeniably important.
The “builder’s appeal” tack on fair and affordable housing is doubly interesting because it, like New Urbanist code reform projects, seeks quintessentially liberal ends through deregulatory means. That’s a cool way to bridge the political divide and to curry political capital with the building-trades crowd.
A palace for a cult, perhaps?
The four-story, 24,000-foot building at 1309 N. Ashland Ave. — housing the offices of some Polish honor society — is for sale for $1.9 million. It’s best known for its standing-room auditorium, which was called the Centrum when MP Shows was booking there. (I saw Godspeed You Black Emperor there, which was appropriate given the frayed edges of the space.) But what reuse potential is there for function rooms, offices, and auditorium?
To see the listing, click here and enter MLS # 03140419.
Reconstruction
According to Citylink, construction on the North Avenue Streetscaping Project is supposed to begin today. No sign of it outside, though. The streetscaping can’t do much, since North is a state highway (route 72); even the street trees added will be on bulb-outs in side streets alongside the road, not along the actual road. Thus, the drawings looked kind of boring. We’ll see what it ends up looking like, though.
Metro board game
At a party last night, I had a chance to play a 1970s board game called Paris Metro (approved by the RATP!). It was frustratingly designed — simply get around town, between various tourist destinations outlined on little cards, with the annoying inclusion of dice and thus chance — but the board was lovely. There was no date on the board or box, but the map predated the demolition of Les Halles.
Oddly enough, I can’t find any web references to this game. All I can find are references to a later board game of the same name, about the construction of the Metro.
Koolhaas at IIT
I visited IIT on Wednesday and snapped photos of the Rem Koolhaas-designed McCormick Tribune Campus Center. It’s an island of Kool exuberance in a somnolescent sea of sober, rigid Miesian boxes.
Of the many photos I’d seen (especially those in Metropolis Magazine this month), none made any sense as a collection, nor showed students actually using the building. Sure enough, though, the photos don’t “connect” because the building doesn’t; the many sharp corners hide plenty of things. The distinct lack of furnishings (partially because the building was wildly over budget) gives it an empty feel, even if it’s well used. The urban design is so-so: although the urban context is hardly inspiring, the building does only a bit better at engaging the sidewalk. For a long stretch along State, the building’s sunken a good eight feet; the south entrance is set back behind a lawn (it was reportedly cut short to save funds); and hallways line many outside walls, which provide neither interesting views from the outside nor light for the building interior.
Yes, you can buy Mies t-shirts — made by American Apparel, no less.
While I was on the South Side, I picked up David Harvey’s Paris, Capital of Modernity at the Seminary. It’s almost too pretty to leave on the bookshelf; it would deserve a temporary spot on the coffee table — if only I didn’t have three dozen other books vying for a spot there already.
Property tax: even Daley’s wrong
“Daley said higher assessments, due to increasing property values, will result in property tax increases in Chicago of 10 percent to 50 percent this fall. If relief isn’t offered soon, families may be forced out of their homes, he said… Daley called on the General Assembly to impose a statewide cap of 7 percent on the annual increase in residential assessments.”
First, no one’s going to get a 50% increase in their tax bill — unless, of course, Daley has a secret budget hidden behind his back that figures tax rates will go up that high. (Hm…) Second, the 7% assessment increase would be a boon to my neighbors and me, but someone will have to pay the price. If taxes on the trendy north side plateau, the difference will have to be made up by higher tax rates for everyone — but especially in decidedly un-trendy parts of town.
The legislation will raise already bloody rates in south Cook County, where resegregation has slammed property values with the “segregation tax.” Already, property tax rates in Ford Heights are 314% higher than in Inverness, and 247% higher than in Chicago. Do we really want to exacerbate this situation?
(On a side note, I had to go through this 83-page file, listing tax rates for all of Cook County’s 1,000+ taxing districts, just to find those numbers. Man, does this place ever need tax reform of a different sort.)
Trillion dollar giveaway
Another slogan for a class-warfare Democratic campaign ad: “George Bush wants to raise your taxes so that he can give away one trillion dollars [flash $1,000,000,000,000 on screen] to millionaires.”
Half of the $2.2 trillion cost of extending the Bush tax changes by 10 years will go to the nation’s wealthiest 5%. Meanwhile, as others have documented, state and local taxes are rising, and payroll tax increases are definitely in the offing to pay down future deficits.
Bush supports shift of jobs overseas
No kidding! So shouts an LA Times headline today.
Property tax solutions
Last week, I got a random query about using private grants to offset rising property tax bills for long-term residents. A response, outlining some fairly simple, low-cost ways to structure a targeted property tax relief program:
Private grants typically wouldn’t be of sufficient size to address a need as large as property tax relief over the long term — even if only $20,000 is disbursed this year, within a decade (assuming ever-higher valuations), half a million dollars will have been spent.
I can think of two ways in which such a program could be structured, though. Locally, Cook County is willing to “defer” (with interest) property taxes until a property’s sale, by placing a lien against the property in the amount of the unpaid taxes (provided the property owner meets certain requirements: over 65, low income, etc.). The lien is written such that it can’t be used to, say, force a tax sale, but “lien” sounds sufficiently scary enough that few people are willing to try it. The program also doesn’t do anything to hold down valuations after the sale.
Private money could be used to place second mortgages against the properties in question: the second mortgage would generate cash up front to pay the tax bill, grants would pay the interest (and administrative costs — it would be cheaper if the taxing body were administering), and the principal would be repaid in a balloon payment upon sale of the property. Again, some long-time homeowners may object to the idea of having debt on their paid-off houses, even if it doesn’t materially affect them.
The other, more durable, way to go would be to use the grant to set up a land trust. Since the land is rising in value and thus causing the property taxes to rise, the private grant could fund a nonprofit to purchase the land out from under the houses. (The homeowners would still own the structures, which, I assume, are depreciating with age.) The nonprofit would hopefully qualify for a partial or full exemption from property taxes. If a TDR program exists, excess development rights could be sold to an adjacent parcel, simultaneously funding the program and reducing the market (and thus taxable) value of the property.
Like the lien system, this would involve the property owner losing some degree of control over their property. However, my own feeling is that property ownership comes with pros and cons; one of those cons is responsibility for things like taxes.
Property tax panic
The arrival of new property tax valuations last year sent many Chicagoans into a panic, with assessed property values spiking in many communities since the last assessment cycle three years ago. Of course, the panic was largely without merit — a decrease in rates typically offsets any assessment increase, resulting in a complete wash.
Outraged messages filled bulletin boards (“My mother’s tax bill in Lake View just went from $7,500, which was obscene, to $11,500. That’s a FIFTY-THREE percent increase”) and I was left to wonder whether my tax bill had gotten lost in the mail or something. No, of course not — I got a bill two weeks ago which was substantially the same as the ones issued last year. (How, exactly, these people managed to buy houses without understanding how property taxes work is what mystifies me.)
In an effort to squelch calls for various elected officials’ heads, County Assessor Houlihan released estimated tax bills for the city and many suburbs, which naturally showed only an incremental increase in taxes paid:
“Houlihan, who lives in the Lakeview neighborhood, saw the assessment on his three-story greystone increase 30 percent. But his projections indicate his tax bill would only rise by less than 6 percent, to $18,129…
“The assessor’s estimates show the city’s tax rate dropping to 6.021 percent from 7.277 percent. The multiplier is shown as declining to 2.41 from 2.4689.”
Furthermore, property tax revolts always struck me as being at least a bit unfair. Sure, there are some groups which are genuinely impacted by rising property taxes — seniors in particular. Yet the overall thrust of much of the complaining is that public policy needs to be tilted even more in favor of homeowners, who already have secured massive entitlements from all levels of government — home mortgage interest deduction, “nest egg” capital gains exemption, and in Cook County, a lower “equalized assessed value” on residential property (such that residential pays half the property taxes of commercial uses, including large apartment buildings).
All of these government incentives for homeownership have the overall effect of raising housing prices beyond what they would be without said incentives. Ever-higher housing prices are considered by many homeowners to be their god-given right, for some reason, and those people who expect to profit on their homes eventually should relish paying their rising property taxes.
A property tax “revolt” won’t necessarily get anyone anywhere, either. In California, Proposition 13 was passed in the late 1970s, an era of high and rising property valuations — yet its passage did not do anything to slow the pace of gentrification there since. It has, however, resulted in severe cuts to local government spending, rising sales taxes and often regressive “user fees”, budget crises during recessions, incredible tax base competition between municipalities (resulting in suburban sprawl), and wealthy long-term property owners (including landlords!) getting off scot-free — essentially paying the same in taxes as they did in 1978.
Just because some people pay less in property taxes doesn’t mean that the taxes won’t come from poor people in another way — higher sales taxes, more gambling, a higher income tax (which would be okay if the state constitution didn’t require a flat rate), or regressive fees. Make no mistake about it: almost every “property tax relief” option you’ve seen floated in recent months will benefit multimillion-dollar Gold Coast mansions as much as (if not more than) they’ll benefit abuelitas in Back of the Yards.
At the same time, many of the same put-upon taxpayers I’ve heard from naturally want to have their cake and eat it, too: complaints about a lack of city services seem directly tied to complaints about one’s tax bill. The complainants typically point at their neighborhood’s lack of services and contrast that to what they see as money being spent downtown — which is a farce, since nearly two-thirds of all Cook County’s property taxes are paid just by downtown Chicago. (Some services, like daily street sweeping, are paid for through supplementary property taxes paid only downtown.) Sure, downtown gets more services, but shouldn’t services be roughly proportionate to taxes paid?
Then again, pretty much the whole city has been getting shortchanged for decades. For instance, Chinatown’s only park was eliminated by the freeways, and its replacement (Ping Tom) wasn’t built until a few years ago — and even then, it was only with TIF money. (Its expansion will only happen thanks to the residential boom in the South Loop; impact fees paid by all those new condos will underwrite the park.)
Or, to take another example, the Bloomingdale Trail is an expensive ($10M, at least) proposition. How did/will Paris and New York City paid/pay for their elevated trails? First, through breathtakingly high taxes. Second, their city cores are packed to the gills (population densities four to eight times as high as in “crowded” north side Chicago!) with rich people, all of whom pay high taxes. Third, the federal government pays most of the bills, anyways. And fourth, something of this scale takes a long time to get to fruition. Millennium Park, every neighborhood activist’s favorite whipping boy, was first proposed back in the 1970s.
On a grand scale, part of the city’s fiscal problem is that Chicago is getting shortchanged by Illinois, and Illinois by Washington. Urban areas almost always generate more wealth for government than they get back in services. (This is particularly interesting because a state’s propensity to vote for the “small government” Republican party is inversely proportional to the federal largesse it receives.)
For instance, in 1999, Illinois was the second largest “donor” state to Washington in dollar terms and the fourth largest in per-capita terms. Almost all of the wealth in Illinois is in the metro area, and again, much of that is generated just by downtown businesses.
Furthermore, anger over property taxes is usually fundamentally misplaced — people look past the “Cook County Treasurer” and assume it’s still the city’s fault. Property taxes only account for 15% of city revenue. Property taxes go to pay for city pensions (42%) and to pay back bonds (58%), not for general government. General government is paid out of an assortment of taxes: sales, income, utilities, “miscellaneous.” Most of your property tax bill goes to the school and park districts or to the county, not to city government.
As a result, complaints about city corruption are often interwoven into complaints about taxes. The continuing hired truck scandal shows that we still have a long way in getting true accountability and transparency from city government — much less Cook County government or Illinois or the feds or even corporations. More efficiency and better responsiveness is something all organizations should be striving for, and something that we deserve as citizens. But good government or bad, there genuinely is a fiscal crisis going on everywhere, and there has been ever since the Nixon era. Governments at all levels in the U.S. and elsewhere are having to make tough decisions about where to spend their money right now, and Chicago is no exception. (Nor are other governments — say, in Washington or New York or Paris — exempt from charges of corruption, nepotism, or malfeasance.)
Chicagoans are used to dealing with one level of government — the city — for everything. Maybe it’s conditioning under the ward system, or maybe it’s because the city takes credit for anything and everything (and therefore sets itself up to take the blame as well). But government goes much, much further than just City Hall: not only what you pay in taxes but also what you get back are determined more by what goes on in Springfield or Washington, or even by the county — and, by extension, the rest of the metro area (suburbanites free-load all sorts of services paid for by city dwellers), more so than by City Hall.
Crate takes over Clybourn
Crain’s reports that Crate & Barrel is opening a fourth store at North & Clybourn, replacing its C&B Outlet at the northeast corner with a larger version of its hip CB2 concept. The outlet will move two blocks up the street, to Clybourn Galleria. The Crate & Barrel flagship and Land of Nod children’s stores will remain at the northwest corner.
I’m not entirely sure whether Crate’s presence there has been all that good for the corner’s emergent urbanism. CEO Gordon Segal has substantial ownership interests in three of the four corners of North and Clybourn: every corner but the CTA station, including the land under the Home Depot Expo. A proposal by Segal and residential developer Bill Smith for two 28-story residential towers around the Home Depot has been stalled in court while the developers fight the anti-residential zoning placed there to protect manufacturers between Clybourn and the river. (Interestingly, Smith is also the largest industrial developer on Goose Island.)
Add that ownership to C&B’s substantial customer draw to the area and Segal emerges as the corridor’s biggest player. But the chain’s urban design is simply better than average. The building which now houses the Outlet was the first retail development on North, which was then a sketchy industrial street best known for prostitution. The building is an architecturally graceless stripmall with a small parking lot facing the crucial North & Clybourn corner; most of the bulk is at the eastern edge, along Halsted.
At the North & Halsted corner, the building does fill out the corner with display windows, but the entrance to the Outlet faces the parking. The apartments above don’t have windows facing south — possibly to block any views of Cabrini-Green, just a few blocks south. The presence of two parking-lot curb cuts on such a small site considerably complicates traffic flow at the three-way North-Clybourn-Halsted intersection. Furthermore, I doubt that the parking lot does anything to help business; instead of heading to one of the new parking garages nearby, shoppers jostle for space in the tiny lot out front. Nor does there have to be a loading zone in front; the site backs up to the Brown Line elevated, which would make an ideal loading zone.
By the time the C&B flagship store was designed, the area had become sufficiently upscale to justify higher grade materials. The store filled out the acute angle well, but the entrance again faced the parking lot in the middle of the block. Late last year, an entrance was finally added along North, to capitalize on the growing foot traffic.
A while back, I remember reading something about Segal funding a rehab of the North/Clybourn CTA station — which, thanks to the neighborhood’s changing fortunes, has seen daily ridership double since 1995 (and Saturday ridership go from 0 to 8,000 passengers). Nothing new on that front.