Tag: building permits

Chicago’s entitlement and permitting approval times are not nearly as bad as in Los Angeles

October 19, 2023 / / 0 Comments

Researchers at ULCA studied permitting and entitlement approval times in Los Angeles. They are pretty terrible compared to Chicago.

tl;dr: Los Angeles, 500 days; Chicago, 180 days. Read on for some low-level discussion of our methodologies.

I learned about this development-slowing phenomenon from episode 59 of the Housing Voices podcast (one of my favorites). The paper – download it – was written by Michael Manville, Paavo Monkkonen, Nolan Gray, and Shane Phillips.

They found that the median time to permit for discretionary (i.e. not permitted as of right) developments in Los Angeles “transit oriented communities” (which are not equivalent to Chicago’s transit-served locations) was 495 days; the timeline was 747 days for by-right developments outside of transit oriented communities.

While my study is less rigorous, I programmed Chicago Cityscape to constantly calculate the time between the day the zoning change application is submitted to City Council and the day a relevant building permit for that project is issued.

I believe that this is roughly the same metric that their study used; however, it doesn’t account for potential variations between the two cities’ staff review processes and how much time a project in Chicago may be entertained by planning staff prior to a zoning change application being submitted to City Council.

I find that the median time to permit for discretionary developments in Chicago is 180 days. That’s compared to 495 days in Los Angeles!

This metric includes projects that (a) were approved by Chicago City Council within the last two years (the calculation is updated daily), (b) received a new construction or renovation permit having an estimated construction cost of $100,000 or more, and (c) was issued after the zoning change application’s approval date.

Both of our studies do not have information about the length of time a project spends in a “pre-approval” or “ideation” stage. And their study does not account for the time that a permit application (prior to issuance) is spent outside of a plan examiner’s review time (what Los Angeles calls “hold days”). However, my study accounts for the total time from permit application start to permit issuance date (because that is the value that the Chicago Department of Buildings published), so if their study accounted for that time then the number of days between application start and issuance would be even longer in Los Angeles!

Don’t ban apartments on this vacant lot if you want more affordable housing – a case study

August 2, 2018 / / 0 Comments

A vacant lot is for sale near the 606’s Bloomingdale Trail, a popular amenity that’s now known to have an effect in increasing home values. It’s zoned RS-3, which means it bans apartments. If the zoning stays the same, then the vacant lot will only allow a rich family to move in here. If the lot’s zoning is changed to allow apartments or condos, then the vacant lot could welcome families that earn median incomes.

You can build multi-family housing on the lot if you can get a zoning change, but you’ll have to pay the city a fee, convince your future neighbors that they shouldn’t oppose it, convince the alder that he should support it, and you’ll have to hire a lawyer.

Let’s say that zoning changes in Chicago were free and frictionless*. What should be built on this lot?

If the lot would allow multi-family housing, we can build several units for less money per unit than if we built a single-family house. That means that three families (let’s stick with three, which requires a zoning change to RM-4.5) could be housed for less money per family than the cost of one family.

How’s that? The sticker price for this lot is $425,000 right now, and if one family is paying for that plus the cost of building a house, then your minimum investment is pretty massive. (I suspect the lot will sell for something closer to $400,000.)

I looked at new construction costs on Chicago Cityscape, as indicated on building permits issued within 1 mile of the vacant lot, took the average, and added it to the cost of land per unit.

Construction costs

The average new construction single-family house, from the 10 most recent permits, is $304,052.78.

The average new construction multi-family housing, from the 10 most recent permits, is $230,192.13 per unit.

Total cost per unit (land + construction)

Add in the land cost per unit ($425,000 for the single-family house and $141,666.67 per unit for the 3-flat) and you end up with the total costs of:

  • $729,052.78 for the single-family house
  • $371,858.80 per unit in the 3-flat

Add in the profit or “cap rate” that a builder wants to make and the price is even higher, but the people who would buy in the multi-family house would be paying much less for their homes.

Takeaways

The city can generate more affordable housing if it “upzones” vacant land and stops banning multi-family housing. (Much of the city’s parcels have been “downzoned” to ban multi-family housing in a process that creates “exclusionary zoning” and allows only – expensive – single-family housing.)

The city and the Chicago Transit Authority will earn more real estate transfer taxes (RPTT) from the sales of the units as condos than from a single-family house.

Three families instead of one would enjoy living to the wonderful amenity that the Bloomingdale Trail and the parks that the 606 offers.

Want this kind of analysis for a property in Chicago? You can order a zoning report from me.

* The City of Chicago charges a zoning change fee of $1,025, and you will most likely have to hire a lawyer, and it will take about 3-6 months, depending on the complexity of the proposal that requires the zoning change. You can use Chicago Cityscape to see actual approval times (excluding the time meeting the alder for the ward of the proposed project).

Fun with stats: Building permits by street name and number edition

September 17, 2017 / / 0 Comments

John Hancock Center

The John Hancock Center. Photo by Kevin Dickert.

 

On which street are the most building permits issued?

Michigan Avenue!

But where on Michigan Avenue are the most building permits issued?

Take a guess!

First, can you answer: Are most building permits issued to North Michigan Avenue (between Madison Street, 0 north/south, and Oak Street, 1000 north), or South Michigan Avenue (between Madison Street, 0 north/south, and um, somewhere south of 130th Street, 13000 south)?

Here’s the answer…

Even though South Michigan Avenue is at least 13x longer than North Michigan Avenue, South Michigan Avenue has 39 percent fewer building permits!

From 2006 to yesterday (Saturday), there were 7,828 building permits issued to projects on North Michigan Avenue and 4,714 building permits issued on South Michigan Avenue.

The most common address on North Michigan Avenue to receive building permits was 875 N Michigan Avenue. It’s also the most common address to receive building permits on all Chicago streets.

What’s there? The John Hancock Center (tower)!

The average building address number on North Michigan Avenue is 540.6. That means that building permits on North Michigan Avenue concentrate around Grand Avenue, which is near the city’s biggest Marriott hotel, and is where the Under Armor flagship store is.

The next most common street – after South Michigan Avenue – is North Clark Street, which extends from Madison Street (0 north/south) to the northern edge of the city at Howard Street, which is 7600 north, about 7.6 times longer than North Michigan Avenue.

S. Clark Street Signs

Businesses in the 400 block of South Clark Street, as of when the photo was taken in November 2008. I believe the hotel is still there. This is the busiest block of South Clark Street, for building permits. Photo by Bruce Laker.

South Clark Street doesn’t register in the top 10 or even the top 100. It comes it at number 162, with 772 building permits. This is surprising to me because South Clark Street runs from Madison Street (0 north/south) in downtown and goes to 2200 south, and has a lot of downtown office buildings.

South LaSalle Street (3,613 building permits), South Wabash Avenue (2,916), and South Dearborn (1,611) are all in the top 50. The data could be wrong somehow.

Which places in Chicago get the most building permits?

December 13, 2015 / / 0 Comments

View from the CTA green roof

The Merchandise Mart in the Near North Side community area ranks second place in locations receiving the most building permits.

Ed. note: I changed the title of this blog post because one interpretation of the original, “Where are the most building permits issued in Chicago?”, has the answer “City Hall”, the location of the issuer. My bad. 

Without regard to type or construction cost, the most building permits in the City of Chicago are issued at 11601 W Touhy Ave.

Where is that? It depends on which geocoder you use.

Two buildings at 11601 W Touhy Ave from Google Street View. The City of Chicago has issued thousands of building permits to this address, but the work is actually distributed across the O'Hare airport grounds. Google Maps and the Cook County parcel map places these buildings in Des Plaines.

Two buildings at 11601 W Touhy Ave from Google Street View. The City of Chicago has issued thousands of building permits to this address, but the work is actually distributed across the O’Hare airport grounds. Google Maps and the Cook County parcel map places these buildings in Des Plaines.

Google Maps puts it on this building that’s on a street called “Upper Express Drive” and in the city of Des Plaines, Illinois. But the City of Chicago wouldn’t issue building permits in another city.

Our own geocoder converts the geographic coordinates given in the city’s building permits database for these permits to the address “399 E Touhy Ave, Des Plaines, IL”. The Cook County parcel for the same location has the address “385 E Touhy Ave, Des Plaines, IL”.

Now where is this building?

It’s at O’Hare airport, and it’s one of a handful of addresses* the city’s buildings departments uses to denote permits issued to work at O’Hare. Since 2006 to Saturday, December 12, 2015, there’ve been 2,403 building permits issued here. The permits’ work descriptions indicate that a lot of the work occurs elsewhere on the airport grounds.

13 buildings have had more than 400 permits issued since 2006 to yesterday.

address community area count
11601 W Touhy Ave O’Hare

2403
222 W Merchandise Mart Plz Near North Side

802
141 W Jackson Blvd Loop

538
233 S Wacker Dr Loop

518
2301 S Lake Shore Dr Near South Side

516
30 S Wacker Dr Loop

510
5700 S Cicero Ave Garfield Ridge

495
500 W Madison St Near West Side

482
227 W Monroe St Loop

422
55 E Monroe St Loop

421
875 N Michigan Ave Near North Side

408
151 E Wacker Dr Loop

407
350 N Orleans St Near North Side

401

A pattern emerges: 10 of these 13 buildings are in the Central Business District and the other three are O’Hare airport, McCormick Place (2301 S Lake Shore Drive), and Midway airport (5700 S Cicero Ave).

The first location that’s outside the Central Business District and not one of the city’s airport or its convention center is at 1060 W Addison St – better known as Wrigley Field – in the Lake View community area with 321 building permits issued. It ranks #30. If you keep running down the list, the next most frequently issued location is 7601 S Cicero Ave – that’s the Ford City Mall and I think the city’s only sprawl-style indoor mall. It ranks #39 because it pulls monthly electric maintenance permits.

The Merchandise Mart’s position at #2 is notable because the majority of its permits are for small amounts of work: there is a lot of electrical rewiring done because of the frequent shows and exhibitions in the interior design materials “mall”.

The Mart sees other activity, though, including multi-million renovations for technology companies like Motorola Mobility and Braintree. The Mart also received a permit this year for a new $3 million staircase construction, part of its building-wide renovation project.

Rendering of new main (south) lobby staircase at the Merchandise Mart

This rendering shows a new grand staircase that will be built in the Merchandise Mart’s south lobby jutting from the side of the lobby that’s between the doors on the Chicago River side, and the reception desk and central elevator bank. A building permit issued this fall puts the construction cost at $3 million.

If you want to know more about building trends in Chicago, send me a message through the Chicago Cityscape website and I can put together a custom report for you.

* Other addresses I’ve noticed are:

  • 10000 N Bessie Coleman Dr
  • 10000 W Ohare St
  • 11600 W Touhy Ave
  • 11555 W Touhy Ave

Of these only the two Touhy Ave addresses are logical: O’Hare Street isn’t a real road, and 10000 N Bessie Coleman Dr is much further north than the northernmost point in Chicago.

A century old former radium extraction site in Bronzeville gets building permit

November 9, 2015 / / 0 Comments

Map of the Carnotite Reduction Company site near Bronzeville

The Carnotite Reduction Company site near Bronzeville. Map: OpenStreetMap

A recently-issued building permit on 26th Street just east of King Drive in the Prairie Shores neighborhood of the Near South Side community area (near Bronzeville) caught my eye.

Installation of temporary wood poles and aerial cable, to powering air monitors, for the Carnotite Reduction Company site project

Carnotite wasn’t a word I’ve heard before, and “Carnotite Reduction Company” isn’t a business I’ve heard of before, either.

I searched Bing and found that 4 of the 5 results were about cleaning up a contaminated site, and one of the results was a letter in PDF form hosted on the Centers for Disease Control and Prevention website prepared by a scientist at the Illinois Department of Public Health.

The letter is 11 pages long and tells the story about Carnotite Reduction Company, which had a factory in 1915 on what’s now known as the Michael Reese Hospital site, the buildings of which have all been demolished.

The Carnotite Co. mainly produced radium, along with some uranium and vanadium as byproducts.

The Carnotite Co. owned and operated mines in Colorado and Utah. In 1919, it was one of four companies that mined 95% of the carnotite ore produced in Colorado. The U.S. dominated the world radium market until 1922, when Belgium began using pitchblende ore from the Belgian Congo. The pitchblende was 40 to 100 times more pure than carnotite, and by 1923, Belgian competition ended carnotite ore processing in the U.S.

This article from the “Chicago Chemical Bulletin” publication in 1917 linked on the United States Environmental Protection Agency’s website about the cleanup project describes carnotite ore and mining process. They’ve cataloged this site as EPA ID# ILN000510371.

Chicago Chemical Bulletin: 1917 article about the Carnotite Reduction Company

The letter describes where radioactive, contaminated soil was found during boring tests made within the last three years, and how it potentially got there. The factory was extracting radium there, for an exploding cancer research trend, until 1920.

The company, the EPA believes, may have disposed its waste into public infrastructure.

The US Environmental Protection Agency (USEPA) suspects that the Carnotite Co. may have sent this liquid waste into the sewer, floor drains, or reintroduced it into the process for further refining. Because streets in the area, including Inglehart Court, were abandoned during the redevelopment in the 1950s and 1960s, sewers running along those abandoned streets likely also were abandoned. Other options for liquid waste disposal commonly used at the time included streams or ditches (with Lake Michigan in the vicinity), waste ponds, dug wells, and dumping wastes on porous ground (such as the sand on-site).

When the City of Chicago was preparing the site in 2009 for a potential Olympic Village for its 2016 Olympic Games bid – buying the property for an insane amount of cash and then razing it all, while eventually losing the bid to Rio de Janeiro – conducted “Phase I and Phase II environmental investigations” but didn’t survey for radiological contamination and didn’t uncover an important survey from 30 years prior.

The Illinois Department of Public Health found radioactive contamination after a “radiological surface survey” of the Michael Reese hospital site in 1979.

The IDPH Division of Radiological Health concluded that the contamination did not pose an immediate health threat, but should be taken into account before any future construction. In 1979, IDPH did not notify USEPA about the contamination they found.

The Illinois Emergency Management Agency surveyed the site in August 2009 and found the contamination, alerted the EPA, and met with the City of Chicago to discuss remediation.

The letter details further testing by AECOM, a global transportation, infrastructure, and engineering company, the levels of contamination, and risk assessment. It appears that the contamination won’t be a danger to most people.

The Illinois Department of Public Health concludes that exposure at the Carnotite Co. site to the area with the greatest surface radium and uranium concentration for 20 minutes per day, five days per week, 250 days per week, for 50 years is not expected to harm people’s health. IDPH considers this to be a maximum likely exposure scenario, given current conditions at the site.

It notes that a change in land use – the site is currently occupied by vacant hardscape, tennis courts, a park, sidewalks, and grassy areas – “could increase exposure duration”, especially if housing was built here.

The City of Chicago applied for a license in 2013 to temporarily store radioactive material on site before shipping it to a disposal facility. The EPA last updated its website in April 2014 to say that it was considering this application.