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It’s impossible to track the many investment programs in disinvested Chicago neighborhoods

September 14, 2017 / / 0 Comments

An article in the Chicago Tribune that announces Chase bank’s increase in the amount of grants it is offering in Chicago goes on to detail myriad existing grant, loan, and donation programs from public and private sources for neighborhoods that have few jobs, few resources, no privilege, and lots of quality of life problems.

But not all of the programs. There are more, but I don’t even know how many more, nor do I know all of their names. I just know that I’ve read about them before.

The article is where I learned that Benefit Chicago – a $100 million investment fund  operated by the Chicago Community Trust, MacArthur Foundation, and Calvert Foundation, but hasn’t finished raising all the money – has started giving out loans and grants to Chicago recipients, including Garfield Produce Company.

Calvert Foundation has a brokerage (I think that’s the best name for it) through which regular Chicagoans can invest $20 minimum and earn 1.0% interest on that investment after 1 year. Longer periods net higher returns.

Anyway, back to my point…

If I were a business owner in Chicago, and I wanted financial assistance to expand my business – say, buy more kitchen equipment to be able to produce more food – where would I start looking?

Is there a list somewhere? Will my alder know? Is there a group in my neighborhood that can help me track down a funder? Is this more complicated than getting a VC to fund a “Bodega killer“?

One of the things I’ve tried to do with the tens of thousands of maps on Chicago Cityscape is highlight when a business or property owner could be eligible for financial assistance based purely on their geography.

Map of areas where you, as a business or property owner, can get funding assistance from publicly-funded programs.

These geographers where government funding is available are marked with a green icon of a dollar bill that links to a Resources page I adapted from a pamphlet the city’s planning department used to produce. These include:

  • TIF (tax increment financing) districts, including whether the district participates in the Small Business Improvement Fund
  • MMRP (micro market recovery program)
  • Enterprise Zone (a state of Illinois program)
  • Industrial Growth Zone (expedited approval processes + environmental remediation money)
  • Special Service Area (SSA; business improvement district)
  • Chicago landmark and National Register of Historic Places districts
  • Planned Manufacturing Districts (PMD), although I forget what assistance is available here
  • Neighborhood Opportunity Fund zones (an interesting policy that charges developers for additional density and grants that money to small business owners on the South and West Sides)

Not every area within the above categories is in a disinvested neighborhood because not every program was designed for that. 

Green dollar bill signs on Chicago Cityscape

Once you know this, I guess you can target your research. But there’s still a lot more to do. To start: Where the heck is Chase investing? Where the heck is Benefit Chicago investing? They don’t publish maps, as far as I can tell.

Actually, thinking about this more, as I reach nearly 400 words in this blog post, I’ve got another idea: Show up at Rahm’s new Small Business Center at City Hall and ask them.

Amazing view of downtown Chicago as an Amtrak train cuts through wide open land in the South Loop

August 31, 2017 / / 0 Comments

The bridge carries the St. Charles Air Line which itself carries freight and Amtrak traffic over the Chicago River at 16th Street. The City of New Orleans, Illini and Saluki routes use the line (after crossing the bridge, they back in to Union Station).

The park in the foreground is the extension of Ping Tom Park, and has a boathouse in which kayaks are stored.

The massive vacant parcel was once owned by Tony Rezko who was convicted of corruption and fraud.

The land is separated from that history, now, and will be developed by Related Midwest.

I can never remember the names that other people use for this land. I’ve always known it as the “Rezko lot”, so I’m sorry to perpetuate its relation to someone who was convicted of fraud and corruption.

Video was taken from my hot air balloon.

You won’t believe why Arcade Place in Chicago’s Loop was changed from an alley to a street

August 14, 2017 / / 4 Comments

The enhanced proposal for the building on the right, 230 W Monroe, was made possible by converting the alley to a “street”.

Arcade Place, for all intents and purposes, is an alley. It has Dumpsters, and loading docks. It has no sidewalks. It’s dark and probably dirty.

Yet in 1969, Alder Fred Roti passed an ordinance that gave the alley a name and street status.

Why? Because it gave an adjacent property owner the ability to get an FAR bonus and build a larger office building.

That’s not why Roti said he did it, though. “Nobody talked to me about this. I walk around the Loop all the time and I noticed this alley. It’s Arcade east and west and it didn’t make sense to me to be an alley here”, he told the Chicago Daily News.

How gracious he was to the poor alley!

There are several other “named alleys” in downtown Chicago, including Couch Place, Court Place, and Garland Court. I don’t know why they are streets.

I’m reading “Politics of Place: A History of Zoning in Chicago”, by Joseph P. Schwieterman, and Dana M. Caspall, which is full of downtown and North Side zoning change stories like the above. It’s available at the Chicago Public Library, or you can buy it right now.

A map of maps

August 3, 2017 / / 0 Comments

The map of maps.

Over on my website Chicago Cityscape I’ve assembled a map of maps: There are 20,432 maps in 36 layers. You might say there are 36 maps, and each of those maps has an arbitrary number of boundaries within. I say there are 20,000+ maps because there’s a unique webpage for each of them that can tell you even more information about that map.

This post is to throw out some analysis of these maps, in addition to the simple counts above.

The data comes from the City of Chicago, Cook County, and the U.S. Census Bureau. Some layers have come from bespoke sources, including the entrances of CTA and Metra stations drawn by Yonah Freemark and me for Transit Explorer. The sections of the Chicago River were divided and sliced by the Metropolitan Planning Council. The neighborhood and business organizations layers were drawn by me, by interpreting textual descriptions of the organizations’ boundaries, or by visually copying an organization’s own map.

There are 6,879 unique words longer than 2 characters, in the metadata of this map of maps. The most common word is “annexation”, which makes sense, given that the layer with the most maps shows the 10,668 Cook County annexation actions since 1830 – the first known plat was incorporated in the City of Chicago.

The GeoJSON file, an open source, human readable GIS format, comes out to 30 MB, and it make break your browser when you try to display this layer.

The next group of words are also generic, like “planned” and “development”, related to the Planned Development kind of zoning process in Chicago – called Planned Unit Development in other jurisdictions.

After that, some names of municipalities that traded back and forth between unincorporated Cook County and incorporated municipalities are on the list.

Working down the list, however, it gets really boring and I’m going to stop. I bet if you’re a smarter data science person you can find more interesting patterns in the words, but I’ve also increased the number of generic words (like planned development) by adding these as keywords to each map’s “full text search” index, to ensure that they would respond to a variety of search phrases from users.

Inclusionary zoning calculator will tell you how many units a developer can afford to make “affordable”

July 28, 2017 / / 0 Comments

An “inclusionary zoning” calculator can help you determine how much affordable housing your town should require that developers build in their new construction residential buildings.

I learned about Grounded Solutions Network’s Inclusionary Housing Calculator at the second-ever YIMBYtown conference in Oakland, California, two weeks ago.

YIMBY (yes in my back yard) is a movement to reduce barriers to building more housing in order to be able to house everyone at a level they can afford. It’s a movement for other things, and it means a lot of different things to a lot of different people but the end result is that more housing needs to be built.

An interested person inputs a lot of values relevant to their local housing market into the IHC and it will calculate the cost of construction per unit and the rental income from those units, and then will figure the profit margin for the developer. What makes this “inclusionary” is that one also needs to enter the desired portion of units that are set aside as “affordable” (to people making a certain income) and subsidized by the developer’s rental income.

I put the IHC through a real world exercise by inputting as much data as I knew about a rejected proposal in Pilsen.

The first proposal from Property Markets Group had 500 units, and 16 percent of them were set aside (news on this and their subsequent proposals) [I cannot find the source of the “16 percent on-site” factor]. Chicago’s Affordable Requirements Ordinance, or ARO, requires that 10 percent of the units are affordable, and that 25 percent of those 10 percent must be built on site. The other 75 percent can be built on site, or the developer can pay an in-lieu fee per unit.

Needless to say, 16 percent on-site is much, much higher than 25 percent of 10 percent. A neighborhood organization, the Pilsen Land Use Committee, however, requires 21 percent in the area, and the city council member, Danny Solis, 25th Ward, adheres to.

PMG said they couldn’t go that high, and that’s what I wanted to test.

According to this Inclusionary Housing Calculator, could the developer make enough profit (considered as 10 percent) if the building had 21 percent of units as affordable?

In this exercise, the answer was “no, PMG could not make a profit if they had to set aside 21 percent of the units as affordable.”

But the calculator showed that they could earn a 12 percent profit if 16 percent of the units were affordable. 

Some of the inputs are actual, like the sale price of the land (found in the Illinois Department of Revenue’s transactions database), but I had to make up some inputs, including the apartments’ bedroom mix, and the future rental prices of those apartments.

Further reading

  • It’s tough for people to move into one of these set-aside apartments in Chicago (DNAinfo Chicago, July 28, 2017)
  • Inclusionary zoning cannot create enough affordable units (City Observatory, February 11, 2016)
  • Other housing cost calculators like this one (City Observatory, July 26, 2016)