Category: Government

Density bonuses in transit-served locations should be available by right

Update October 23, 2024: I’m aware of one project that has been withdrawn in part due to complications complying with resident-requested changes that would have been lessened if the applicant did not have to also apply for a Type 1 zoning map amendment in order to take advantage of the Connected Communities ordinance’s density bonuses and the “ZBA bundling” streamlining that was adopted by City Council last fall. The applicant was requesting to rezone from the B2-3 to B3-3 (the new zoning district). If the new zoning district already existed and some of the changes I mention in the comment below were in place, then the applicant would have likely already applied for a permit.

This is the original version of a public comment I planned to give to the Chicago City Council zoning committee on Tuesday, September 17, 2024. Due to an overwhelming number of commenters the amount of time allotted to each speaker was reduced from three minutes to two minutes. I edited and cut the comment on the fly.

Video recording of my comment to zoning committee.

Hello, my name is Steven Vance, I’m a South Loop renter and a member of Urban Environmentalists Illinois.

The ordinances to proactively upzone Western Avenue from Howard Street to Addison Street will be voted on today in this committee. The ordinances will rezone nearly all of the 4.5 mile stretch to B3-3 zoning, allowing multifamily housing to be built as of right without further approvals from the local alderperson or this committee. I fully support this plan. 

However, there is a technical flaw in this plan that could hinder the initiative’s goal of adding more housing, both market rate and subsidized affordable. 

To take advantage of the Connected Communities bonuses that allow even more or larger homes to be built when a property is both in a B3-3 zoning district and a transit-served location, the property owner must still obtain a Type 1 zoning map amendment. To sail smoothly, such amendments need support from the local alderperson, most of whom require community meetings before deciding to offer such support. Thus, in some circumstances, the proactive upzoning may not have one of its intended effects of cutting the tape for building new housing. 

The greatest Connected Communities ordinance bonuses, that allow for the most additional housing and family-sized homes, only kick in when 100% of the proposal’s ARO requirement is built on-site. I’m concerned that that requirement combined with the need to get a Type 1 zoning map amendment might limit the number of additional homes added as a result of the upzonings. A solution would be to amend the Connected Communities ordinance to allow the bonuses to be granted by right as long as the other, existing standards about on-site ARO units are met. 

I would like City Council members to implement more proactive upzoning initiatives across Chicago, including on arterials like Western Avenue, Milwaukee Avenue, and Broadway, as well as on less busy streets like 35th Street in McKinley Park and designated Pedestrian Streets. Yet to fully and cost-effectively realize the benefits of housing abundance from this policy lever, further tweaks are needed so housing providers can get to construction sooner. 

The proactive upzoning of Western Avenue, as well as Milwaukee Avenue, reflects real leadership on the part of the alderpersons. It will result in more and better housing for Chicagoans, more affordable units for residents who need them most, and more tax revenue for the city. I’m hopeful that with some tweaks to the density bonuses outlined here, we can establish a model for a more affordable, welcoming and prosperous city. 

A new multi-family apartment building under construction on Western Avenue.

Additional reading

Reviewing the City Council subcommittee’s sixteen revenue-raising ideas

Mayor Johnson asked 6th Ward alderperson William Hall to solicit ideas about how to fund the City of Chicago budget. The Chicago Tribune reported on these:

The Google [Forms] survey he included asked aldermen to respond “Yes” or “No” to the following ideas, with no added descriptions: “Sales Tax on Services; Property Tax (CPI Increase); Monthly/Wireless Plan Tax; Increase in LGDF Share; Head Tax; Alcohol Tax; Checking Bag Tax; Video Gaming Tax; Grocery Tax; City Sticker Increase; Congestion Tax; Income Tax Surcharge; Package Tax; Vacant Lot Tax; Ticket Reseller Amusement Tax; Enterprise Zones.”

I’ll briefly describe each one based on my own knowledge of these taxes. Note that these are possibilities and not suggestions.

  • Sales tax on services. Chicago doesn’t have a sales tax on most services (think haircut or tax preparation). (Chicago has a tax on some services, like the “Personal Property Lease Transaction Tax” which applies to services that use cloud computing, including Netflix!)
  • Property tax increase based on inflation. Mayor Lightfoot implemented this for a few years but Mayor Johnson did not renew it.
  • Wireless plan tax. This one confuses me because Chicago already taxes monthly cellular service.
  • Increase in LGDF share. LGDF is the State of Illinois local government distributive fund and the idea here is to convince the state legislature to increase the share that that the City of Chicago receives. Some data points that I think could be in favor of increasing the city’s LGDF share: Cook County receives back only 88% of what it contributes to state taxes (Paul Simon Public Policy Institute, page 37).
  • Head tax. This is a tax employers would pay for each employee they have. Mayor Emanuel and City Council phased out the head tax in 2014.
  • Alcohol tax. Chicago applies its own liquor tax, currently starting at $0.29 per gallon of beer up to $2.68 per gallon for anything containing 20% or more ABV.
  • Checking bag tax. I presume this refers to the existing Checkout Bag Tax, which is set at 7 cents per checkout bag sold at retail stores (the store can keep 2 cents of this to help subsidize the cost of the bag).
  • Video gaming tax. This would mean legalizing video gambling and taxing it.
  • Grocery tax. Governor Pritzker and the Illinois General Assembly eliminated the 1% grocery tax starting in 2025, revenues from which are distributed to municipalities. In return, the state allowed cities to implement their own grocery tax. Richard Day opines why it would be a bad idea for Chicago to implement such a regressive tax.
  • City sticker increase. A city sticker is a fee for the privilege of being able to park a car for free across much of the city.
  • Congestion tax. This would create a fee, surcharge, or tax for the privilege of driving a personal vehicle, and for the city to recover the costs and negative impacts, into the downtown area during specified times.
  • Income tax surcharge. I’m not sure what the surcharge means but Chicago currently doesn’t have an income tax.
  • Package tax. I don’t know what this means, but Hall told the Chicago Tribune that the package tax would “look at weights and distribution of packages that move throughout the city.”
  • Vacant lot tax. This would probably act as a kind of land value tax but would probably be implemented as an additional property tax on vacant lots (I assume any parcel that the county classifies as “1-00” would be eligible for this).
  • Ticket reseller amusement tax. Another tax that already exists; presumably this would be increasing the tax paid by people buying tickets for amusements (which includes concerts – you can see a list of all of the registered amusement tax businesses).
  • Enterprise Zones. I can’t make sense of this because Enterprise Zones are an existing state incentive area; there are six in Chicago. This “give” money (in the form of state sales tax breaks on construction materials and waiving the state’s portion of the real estate transfer tax in some situations) to property owners.
A vacant lot in Bronzeville. Land value tax would fix this.

Further reading

The Civic Federation came up with their own list of possible revenue sources and indicated if they require a state statute to authorize.

The sizable impact of requiring Chicago homeowners to get special use approval to build an ADU

Show your support for a version of the proposed ordinance that enables equal access to ADUs in all residential zoning districts and does not have the carve out explained below by emailing your alderperson and asking that they support ADU expansion into every residential zoning district without special use approval (reference ordinance SO2024-0008918, and then sign this Urban Environmentalists Illinois petition). I spoke about this issue with Mike Stephen on Outside The Loop radio on July 27, 2024 (skip to 6 minutes).

It’s possible that the Chicago City Council votes to approve an ADU expansion ordinance that would require about 38 percent of small-scale residential property owners, specifically in RS-1 and RS-2 zoning districts, to obtain a special use from the Zoning Board of Appeals to build an ADU. Special use approval is intended for limited and certain businesses and building types that can have an adverse impact and may require mitigations that are reviewed and approved by the ZBA.

ADUs have not been demonstrated to have adverse impacts and this potential future requirement would impose burdens on a scale above and beyond anything else the Chicago zoning code imposes. A special use is described in the city’s code as having “widely varying land use and operational characteristics [and] require case-by-case review in order to determine whether they will be compatible with surrounding uses and development patterns. Case-by-case review is intended to ensure consideration of the special use’s anticipated land use, site design and operational impacts.”

Yet an ADU is a residential use; its operational characteristics could not be incompatible with other residential uses. This requirement would be extremely unusual and especially burdensome. There is only one other special use approval that a residential property owner would have to seek, which is to allow housing on the ground floor in B1, B3, C1, and C2 zoning districts.

Applying for a special use for a small home presents a major obligation to the property owner, and requires them to perform the following:

  • Submitting a full building permit application with plans and obtaining a “certificate of zoning denial” before being able to start this process.
  • Paying a $1,000 application fee to the City of Chicago.
  • Hiring an expert witness to write a report and provide testimony at the ZBA hearing.
  • Preparing the finding of fact, a report which (a) describes how the ADU complies with all applicable standards of the Chicago Zoning Ordinance, (b) says that the ADU is in the interest of the public convenience and will not have a significant adverse impact on the general welfare of the neighborhood, (c) explains that the ADU is compatible with the character of the surrounding area in terms of site planning and building scale and project design, (d) states that the ADU is compatible with the character of the surrounding area in terms of operating characteristics, such as hours of operation, outdoor lighting, noise and traffic generation, and (e) outlines that the ADU is designed to promote pedestrian safety and comfort.
  • Preparing the application (which is extensive).
  • Complying with onerous legal notification requirements including determining property owners of record within 250 feet of the subject property, paying for and posting public notice signs and ensuring they remain posted until the public hearing, and mailing notice letters to surrounding property owners within the 250 feet notice radius.
  • Presenting the project to the Zoning Board of Appeals at an undeterminable time during an 8-12 hour meeting in the middle of a Friday, possibly facing one’s neighbors who are present objecting to the project.

Not to mention, this will gum up staff time and expertise.

Scale of impact

I analyzed the number of small-scale residential-only properties in Chicago that would and would not be subject to the special use approval requirement in RS-1 and RS-2 zoning districts if that version were to pass.

The map below shows where the proposed ADU expansion would set a different standard for homeowners in RS-1 and RS-2 zoning districts than for homeowners in all other zoning districts. It covers large parts of 40 percent of the city’s 77 community areas (read more about my thoughts on this in my letter to the Chicago Sun-Times editor).

The table below shows the results of my analysis: the owners of nearly 171,000 small-scale residential properties in RS-1/2 zoning districts would be required to undergo a costly and difficult process that would likely result in burdens so great that very few families would actually be able to take advantage of having an ADU.

About the analysis

“Small-scale residential” comprises Cook County property classifications that represent detached houses, townhouses and townhouses, two-to-six flats, courtyard buildings, and small multifamily buildings, up to 99,999 s.f. with or without commercial space up to 35 percent of the rentable square feet.

The full list of property classifications:

  • 2-02
  • 2-03
  • 2-04
  • 2-05
  • 2-06
  • 2-07
  • 2-08
  • 2-09
  • 2-10
  • 2-11
  • 2-12
  • 2-13
  • 2-25
  • 2-34
  • 2-78
  • 2-95
  • 3-13
  • 3-14
  • 3-15
  • 3-18
  • 3-91

Comment to zoning committee about the proactive Western Ave upzoning

July 16, 2024. The text here roughly matches what I said to the Chicago City Council’s committee on zoning, landmarks, and building standards.

My name is Steven Vance, and I’m a member of Urban Environmentalists Illinois, a membership-based advocacy group that supports more housing – especially affordable housing, housing near transit, and fossil fuel-free – to help deal with housing shortages and rising housing prices.

There are two ordinances for the zoning committee’s consideration today that are the start of a new wave of land use policy to increase development where it’s needed, along Western Avenue. After the completion of the Western Avenue Corridor Study two years ago, Alderpersons Hadden, Martin, and Vasquez are taking the necessary next step by codifying some of the study’s recommendations into zoning map updates. 

The study recommended that higher-density mixed-use developments be allowed and encouraged along Western Avenue, to fill in the many vacant properties and allow the corridor to develop from one primarily serving people using cars to one serving people who use all kinds of transportation modes. And in the future, to provide the density that is supportive and takes advantage of a bus rapid transit network. 

The zoning map changes mean that nearly all of Western Avenue from from Addison Street to Howard Street will have B3-3 zoning, allowing mixed use and residential buildings up to 4 and 5 stories tall, with 20-40 homes each, in a way that property owners and developers won’t need to get individual approval for each one. Developments still have to comply with the ARO. 

When all alders task themselves with approving each and every proposed development, new housing is often delayed, raising the cost of development and denying people access new affordable and accessible housing. And, as the U.S. Department of Housing and Urban Development found, segregation is perpetuated.

The proactive Western Ave upzoning is a form of housing abundance, however, since it can speed up development of new housing in neighborhoods where it’s most in demand and where there’s existing transit infrastructure and amenities. 

A secondary benefit of proactive upzoning is how it attracts new development in Chicago, because of the ease of development. New development is one of the city’s best strategies to deal with funding pensions, because new development means there are new and more taxpayers. New development eases property tax pressure on existing taxpayers. 

Please pass the two Western Ave upzoning ordinances today. I also look forward to seeing and supporting proactive upzoning ordinances, including two that have been proposed in the 35th Ward, at your next meeting. 

Ride in Chicago with “Bike Mayor” John Bauters to help elect him to higher office

I’m co-hosting a fundraiser for John Bauters when he visits Chicago in two weeks on Monday, July 22. You can donate now or keep reading to learn why it’s important to support candidates like John.

John is formerly the mayor of Emeryville, California, and is running for Alameda County Supervisor in a runoff election on November 5, 2024. After finding out that he was coming to Chicago (for a work conference), I talked to some other Chicagoans and quickly put together an idea for a “meet and greet” event.

I was really just excited that I could meet John because I wasn’t able to meet him when he was here in August 2022 and rode in the monthly Critical Mass bike ride. John is well known online as “America’s Bike Mayor” because of how he rides around Emeryville, a city of 13,000 people, posting photos and videos of new sustainable transportation infrastructure and housing in the city, sometimes with his dog, Reyna. 

Because of the successes in reducing traffic crashes there and increasing the number of affordable homes and housing for the homeless that John has shepherded as a council member and as mayor, John is known around the United States as a progressive leader. 

On Monday, July 22, I’ll be co-hosting a fundraiser for John in Chicago, alongside Nate Hutcheson, Ben Wolfenstein, Michelle Stenzel, Tim Shambrook, and Brendan Kevenides (an attorney with FK Law Illinois). We’ll start the bike ride in Lincoln Square, ride through the 40th and 47th Wards making a couple stops along the way to showcase good and bad urbanism, and end the ride on the lakefront for a community discussion followed by a happy hour. 

We’re asking people to donate to John’s campaign (for Alameda County Supervisor, where he’s in a runoff) to get the details for the ride. We’re also looking for additional people to join the host committee (contact me if you’re interested). You can donate as little as $20 to join this ride and you’re adding your voice to a call for more active transportation leadership nationally.

So here’s the question I think a lot of people are wondering: why should Chicagoans donate to someone running for office in another state?

Michelle Stenzel, founder of Bike Walk Lincoln Park, said, “It’s important for city planners to have examples from the United States of successful balanced street designs. Former Emeryville Mayor John Bauters was an agent for making the roads less car-centric. I’m supporting John in running for a new position that will allow him to broaden his influence even further, which will benefit everyone who cares about livable streets.”

Brendan Kevenides, an attorney who represents many injured cyclists in Chicago, said, “FK Law is proud to support John Bauters because he’s the kind of bicycle advocate, the sort of pragmatic leader that cities and towns throughout the United States need more of. He puts in the work necessary to bring about change in transportation policy that saves lives and improves living.”

Molly Fleck, a bicycle and ADU advocate, said, “John’s work in Emeryville on affordable housing and people-oriented transportation serves as a model of what’s possible for cities that want to do things differently. I am donating because John’s leadership resonates far beyond Alameda County.”

Daniel Comeaux, a transportation planner, said, “John is an inspiring leader who is at the forefront of the national movement to build cities for people and not just cars. I’m donating because I am excited to see that work continue, as a model for communities nationwide.”

About John

John’s work has been trendsetting from the Bay Area. Under his leadership, Emeryville has been transformed as a community. Examples of sustainable urban policies they’ve led on:

  • One of the first cities to eliminate parking minimums and reduce maximums.
  • Removing on-street parking in favor of separated, protected bike lanes and dedicated transit-only lanes.
  • Developed “Sustainable Streetscapes” program that requires implementation of the bike/ped plan when streets are repaved.
  • Designated a “Pro-Housing City” by Governor Newsom for the abundance and affordability of housing the city is producing

John also championed Alameda County’s 400-mile Countywide Bikeways Plan and also initiated the County Transportation Commission’s Race & Equity Action Plan. (Note that Alameda County covers most of the East Bay communities, including Oakland, Berkeley, and Emeryville.) In 2022, the San Francisco Bay Chapter of the Sierra Club gave John their inaugural Visionary Award for his work to build safe, sustainable, and environmentally-forward communities through climate action and leadership.

Eric Rogers, a prolific photographer who bikes for transportation and fun and took one of the photos above, said, “Mayor Bauters has been an inspirational leader in encouraging cities to adopt people-centric mobility policies that make us all healthier and safer. We need to give him a bigger platform to bring these ideas to more people. Plus, he’s a friendly guy with deep roots in Chicago and the Midwest, and we have to support our own!”

John is an accessible politician and holds “mobile office hours” talking to constituents on walks and bike rides. He’ll spend some time speaking to us about safe streets advocacy after the ride but would also welcome a chance to talk about supporting broader causes, helping elect women and urbanists, and protecting vulnerable community members. Please chip in and come join us for a solidarity ride with an elected official who is modeling what we want to see here in Chicago.