Download - Case Study Chicagos Metra Line
-
8/8/2019 Case Study Chicagos Metra Line
1/13
Transit as a Catalystfor Redevelopment
System Case Study of Chicagos MetraUnion Pacific-Northwest Line:
Report Prepared by:
Susan Weaver & Deepak Bahl, Weaver Research and Consulting Group
Arlington Heights Metra Station at Night
Image courtesy of Village of Arlington Heights Planning Department
January 2011
-
8/8/2019 Case Study Chicagos Metra Line
2/13
1
MetraActivelyAdvocatingTOD
CommunitiesalongChicagos commuterrail corridorshavelongprovidedlivingspace
fortheCitysworkers,startinginthemid-1850sinwhatarenowconsideredinner-ringsuburbs1
andlaterinmoreandmoredistantsuburbsandexurbs.Becausecommuterrailhasbeenapart
of its development for the better part of 150 years, the Chicago metropolitan area has
experiencedurbansprawlandtransit-orienteddevelopment(TOD)concurrently.Manyinner-
ring suburbshave allowed the type ofdevelopmentnow associatedwith TOD all along, but
communities farther out tended to adopt single-use zoning districts and lower density
developmentpatterns.Thoughthelattercommunitiesgrewandprosperedfromthepresence
ofcommuterrailstations,theyuniformlyfailedtotakefulladvantageofthepotentialofthe
areasaroundtheirstations.Typically,mostof thevitalitydrainedfromthehistoricdowntown
beforeacommunitystartedtorealizewhatitwasatriskoflosingandhowTODcouldhelpturn
thetideandpreventtheloss.
ImagecourtesyofMETRA1Thefirstcommuterlinebeganoperatingin1856betweendowntownChicagoandHydePark.Source:Chicago
HistoricalSociety,EncyclopediaofChicago,http://www.encyclopedia.chicagohistory.org/pages/323.html(November
10,2010)
-
8/8/2019 Case Study Chicagos Metra Line
3/13
-
8/8/2019 Case Study Chicagos Metra Line
4/13
-
8/8/2019 Case Study Chicagos Metra Line
5/13
4
pedestrian-friendly,attractive,anduniquedestination.Avarietyoffactors,includingstrategic
location, changing demographics, the new retail and business environment, aesthetically
pleasing architecture of new and old buildings, and a variety of exciting downtownhousing
options led to the success now beingenjoyed. But increasingallowabledensityandadding
residentialpropertieswerekeytotheredevelopment. Thedowntownnowoffersdistinctive
shoppingexperienceswithnationalchains,specialtyretailers,upscaleboutiques,finediningand
casual restaurants, a performing arts centre,movie theaters, entertainment activities, night
clubs, and special events. The revitalization effort has produced prestigious awards for the
Village,includingthe2000JamesC.HowlandGoldAwardsponsoredbytheNationalLeagueof
Citiesforenrichingurbanareas,andthe1999DanielBurnhamAwardfromtheMetropolitan
PlanningCouncilforexcellenceinplanning.9
TheVillageofArlingtonHeights
Located 23mileswestofChicago, theVillage ofArlingtonHeights isthe 12th largest
municipalityin thestateofIllinois. TheVillageoffersexcellentaccesstomajor thoroughfares
and the UP-NW Line makes travel convenient to nearby suburbs, Chicago, and OHare
International Airport. With a population of nearly 72,300, Arlington Heights is the largest
suburb in Cook County.10 It was incorporated in 1887 and, historically, the catalyst for
population growth was the original train depot that served the nearby farming community,
whichusedtherailroadtotransportitsgoods.Thetraindepotbecamethelocusofactivityand
spurredthedevelopmentofadowntownasmorepeoplesettledin theVillage,11butwiththe
adventoftheauto-orientedcultureandtheintroductionofretailmallsthatchangedconsumer
shoppingpatterns,theenergyofthedowntowndissipated. Bythemid-1980s, thedowntown
was in a steep decline with numerous vacant storefronts, buildings in disrepair, and empty
parkinglots.12Manystoreshadgoneoutofbusinessandfewwerereplaced,andamere350
residentslivedinthedowntownin150housingunits.13
TheVillageboard, governing bodies, and local developers realized the need not only to
redevelopbuttoredefinedowntown.Theyrealizedtheyneededacriticalmassofdowntown
residentsto supportanyretailactivitymoving intothearea.OfficialsdevelopedtheCentral
BusinessDistrict(CBD)MasterPlanin1987ablueprintforguidingdevelopmentindowntown
9NancyKluz,ArlingtonHeights(IL)MayorMulderPromotesDowntownRevival,U.S.MayorNewspaper,June7,
2004(http://www.usmayors.org/bestpractices/usmayor04/mulder_bp.asp).10AboutArlingtonHeights,http://www.vah.com/village_info/about_us/default_more.aspx(November1,2010).
11JanetSouterandGerrySouter,ArlingtonHeights,Illinois:DowntownRenaissance,(SouthCarolina:Arcadia
Publishing,2001),7.12DouglasR.Porter,EminentDomain:AnImportantToolforCommunityRevitalization,(Washington,DC:AULI
Report,2007),22.13Oneofthefactorsinthisdeclinemayhavebeenthedecreaseinthenumberofresidentsaged21to44bothinreal
termsandasapercentageofpopulation.The1990CensusandCensus2000indicateadropfrom38%to34%over
thedecade.Morerecentdataarenotavailable.
-
8/8/2019 Case Study Chicagos Metra Line
6/13
5
ArlingtonHeightsthatfocusedonencouraginghighdensitymixed-usedevelopmentsthrough
strategicpublicaction.Thesevenmainobjectivesofthe1987CBDMasterPlanwereto:
1. Promotediversityandconcentrationofuseinthedowntowncore;2. Createaqualitypedestrianenvironment;3. Strengthendowntownsresidentialfunction;4. Createauniqueimageandidentity;5. Promotequalitydevelopmentthroughdesignreview;6. Emphasizepublic/privatepartnershipinimplementation;and7. Emphasizeearlyactionandtangibleresults.
RevitalizationStrategy:PuttingthePiecesTogether
In order to revitalize downtown, the Village redeveloped underutilized commercial,
manufacturing, and residential parcels close to the Metra station. It established two tax-
incrementfinance(TIF)districtsin1983and1986andintroducednewzoningthatallowedforamixofusesandhigherdensitiesandreducedparking requirementsnear therailstation. The
twoTIFdistrictsallowedtheVillagethepowerofeminentdomain,whichwasusedaggressively
to purchase and assemble properties so that new infrastructure such as structured parking
could be built. The TIF districts made bond proceeds available for gap financing of new
developments, grants and loans for interior renovations and faade improvements, and
assistanceforbusinessrelocation.Moreover,theTIFdistrictwasabletopurchaseandholdkey
properties indowntown for futureprojects, operatingmanyof the lots in themeantime for
commuter parking.14 New zoning regulations mandated first-floor retail uses in mixed-use
buildings and permitted buildings up to 140 feet in height.15 The downtown revitalization
strategystartedpayingdividendsinthelate1980s.
TheVillage completed itsfirstTODprojectstwomid-rise apartmentswith 620 units
and ground floor retailin the late 1980s. In 1983, a private developer built a mixed-use
developmentwith210rentalunitsand14,000squarefeetofcommercialuses.In1986,another
developmentwasbuiltwith410rentalunitsand42,000squarefeetofcommercialuses. The
Villagesupportedthenew developments bybuilding an800-spacepublic parkingstructure.16
However, these two developments were only precursors to the major push for downtown
redevelopmentthatcamein2000withthebuildingofthenewaward-winningArlingtonHeights
Metra station, the development of Arlington Square, the renovation of the Metropolis
PerformingArtsCenter,andtheconstructionoftheVillageGreenproject.
14Porter,22.
15Cervero,288.
16PBS&J,CityofLagunaNiguel,GatewaySpecificPlan,Transit-OrientedDevelopmentCaseStudies,(LosAngeles:
PreparedfortheCityofLagunaNiguel,November2007),4.
-
8/8/2019 Case Study Chicagos Metra Line
7/13
6
LeveraginganUnderappreciatedAsset
TheredesignandreconstructionoftheArlingtonHeightsMetratrainstationwasa$4.8
millionprojectwasfundedbysixdifferentsources:theVillageofArlingtonHeights(througha
TIF), Metra, Intermodal Surface Transportation Efficiency Act of 1991 funds, Operation
Greenlight,Pace,and theNorthwestMunicipalConference. Adiversegroupof stakeholders,
includingthebusinesscommunity,interestedcitizens,andelectedandappointedofficials,were
involved in theplanning process. Planningefforts included a needs assessment, studies and
surveys of commuter andpedestrianhabits in andaround downtown, andan all-daydesign
charrette.Theattentiontoarchitecturaldetailanddesignofpublicspaceshascreatedasense
ofplace that hasworked to generate pedestrian activity.Theproject received a distinction
award from The Chicago Area Transportation Study (now Chicago Metropolitan Agency for
Planning)forcentralbusinessdistricttrain-stationdesign.17
The result of these efforts is a true multimodal hub, the center of a network of
improvements that accommodate pedestrians, bicyclists, buses, trains, taxis and passenger
vehicles. Perhapsmost significantly, the new station also serves toeradicate a division that
previouslyexistedbetweenthenorthandsouthsidesofthecentralbusinessdistrict.Before
construction,pedestrianshadtocrossthreeparkinglots,afour-lanethoroughfare,asidewalk,
threetrain tracks,andyetanother street togetto fromone sideoftheCBDto theother
togethertheseconstitutedaphysical,mental,andvisualbarrierthatfewwouldhazardcrossing.
Thedesignof thenewMetra stationhas eliminated that dividebyenhancing thepedestrian
corridoralong therailroadtracksandprovidingopportunitiesforbicyclistsandpedestriansto
accessnotonlythestationbutalsorestofthedowntown.Italsorelocatestheplatformtokeeptrainsfromblockingtraffic.
Other enhancementsto thestationarea includetheaddition ofparks andpublic art
nexttotherailplatform.Theuseofbrickpavers,decorativelighting,andbenchessimilarto
thoseusedthroughoutthedowntownunifiesthearea.Throughtheuseofnaturalmaterialslike
stone,brick,andslate,thebuildingfaadeevokesthefeelofatraditionalstation.18
17Ibid.
18AwardforExcellence:BicycleandPedestrianPromotion,
http://www.catsmpo.com/bikeped/solesandspokesawards.htm#ArlingtonHeights,(October28,2010)
-
8/8/2019 Case Study Chicagos Metra Line
8/13
7
ArlingtonTownSquare
Anaggressiveredevelopmentofthedowntowncorewasundertakenconcurrentlywith
theMetrastationarearenovation.TheArlingtonTownSquareopenedin2000.Oneblockfrom
theMetratrainstation,itisamixed-useprojectcomprising72,000squarefeetofretailspace,
30,000squarefeetofofficespace,asix-screenmoviecomplex,and94condominiumunits.The
development has 50 surface parking spaces and a 325-space underground parking garage.
Tenantsinclude,amongothers,ArlingtonTheaters,GAP,CaliforniaPizzaKitchen,Starbucks,Ann
TaylorLoft,JoS.A.Bank,YankeeCandle,PaneraBread,Noodles&Co.,andBath&BodyWorks.
ArlingtonHeightsMetraStationwithVillage
Greeninthebackground
ImagecourtesyofReconnectingAmerican
ImagescourtesyofJosephFreedand
AssociatesLLC
-
8/8/2019 Case Study Chicagos Metra Line
9/13
8
ArlingtonTownSquareistheresultofapublic-privatepartnershipinwhichtheVillage
firstassembledthesiteandthensoldittothedeveloperwithabuy-backprovision.Underthe
arrangement,theVillagewasrequiredtobuybackthelandafterayearifthedeveloperdidnot
likethefinaldevelopmentdeal;theVillagealsohadtheoptiontobuybacklandifitdidnotlike
thedevelopersprogram.Additionally,theVillagewasinstrumentalinbuildingtheunderground
parking garage for the project at $30,000 per space. Though expensive, the underground
parkingfreeduplandforopenspaceandreducedthebuildingmassing.
The Village provided $13.9 million in public financing from TIF funds: $1 million to
underwritelandcosts,$2.6millionfordevelopergapfinancing,and$9.9millionfortheparking
garage. Before Arlington Town Square wascompleted, theproperty generated $65,000 in
annualpropertytaxes;nowitgenerates$1.5millionannuallyinpropertyandsalestaxes.19
TheunderlyingstrategyatArlingtonTownSquarewastobuildan18-hoururbanplace
a shopping and leisuredestinationanchored by a residentialdevelopment. Andyetthe key
featureofthestrategy,the13-storycondominiumtower,wasthemostcontroversialpartofthe
development.Althoughtheresidentialunitssoldoutquicklyandthenewresidentsenergized
downtown, some complained about the excessive height of the residential tower given the
Villages small town character. In response, the Village has reconsidered development
guidelines,includingallowable heightsand heightbonus incentivesavailableto developers in
downtown. Initsnew 2007 DowntownMasterPlan for the Village, buildingheightlimits in
downtownhavebeenreducedto70feetwithamaximumof100feetwithheightbonuses,and
severalearlytriggersforbonuseshavebeeneliminatedinfavorofsuchfeaturesaslandscaped
plazas, enclosed underground parking, upper floor setbacks, office space, and larger retail
spaces.20ArlingtonHeightshadtoadjustitspoliciesandregulationsovertimetoensurethat
newdevelopmentwouldbecompatiblewiththeVillagesestablishedcharacter.
MetropolisPerformingArtsCenter
In 2001, theMetropolis Performing Arts Center,another
successfulmixed-use project,wascompleted inArlington
Heights. Located in the heart ofdowntownacross from
HarmonyParkandoneandahalfblocksfrom theMetra
Station, theMetropolisdevelopment features a310-seat,
liveperformancetheatre,64,000squarefeetofretailand
office space, 63condominiumloft units,and816 parking
spaces in an adjacentpublic garage. The loft units sold
19Cervero,288.
20TheVillageofArlingtonHeightsPlanning&CommunityDevelopmentDepartment,2007DowntownMasterPlan,
http://www.vah.com/assets/1/planning_department/Downtown_Master_Plan.pdf(October24,2010.
ImagecourtesyofVillageofArlington
Heights
-
8/8/2019 Case Study Chicagos Metra Line
10/13
9
quickly,astheywerepricedbelowotherdowntownunits.Tomakethisprojectpencilout,the
Villageprovided$2.35millioningapfinancingforthetheaterandretainedrightsoffirstrefusal
shouldtheownerseektosellthetheater.21
Patronsin the2008-2009seasonspentanestimated$1.6millionin thedowntown
areaafterpayingfor theirMetropolistickets.As adestinationvenue,Metropolisgenerates
demand for overnight accommodation and serves as a major attraction for downtown
nightlifeandentertainment.22
VillageGreen
ThethirdmajorprojectwasVillageGreen,amixed-usedevelopmentfeaturingthree8-
to10-storybuildingswith 250 condominiums,53,000 square feet of retail space, and17,000
squarefeetofofficespace.TheVillageGreenisawell-proportionedmixofshops,restaurants,
andresidences.Theoriginalsalespricesofthecondominiumunitsrangedfrom$260,000to$1
millionandmanyofthemweresoldtoprofessionals,seniors,andemptynesters.
The10-storystructure,newestamong thethreetowers, hasan aestheticallypleasing
stonefinishreminiscentofbuildingsindowntownChicago,whichcreatesanurbanimagefor
thedowntown.VillageGreenwasanotherstepinthelong-termvisionofcreatinghighdensity
housingwithcomplementarybusinessestokeepthedowntownalive.Bybringingacriticalmass
todowntown, thethreeresidential developmentswereinstrumental inkeepingabiggrocery
storedowntownthatwasconsideringrelocatingoutoftheVillage.TheVillagecontributed$8.7
millionforlandacquisitionandgapfinancingtofacilitatetheVillageGreenproject.23
21Cervero,289.
22TheVillageofArlingtonHeightsPlanning&CommunityDevelopmentDepartment,2010ArlingtonHeightsHotel
MarketFeasibilityStudy,
http://www.vah.com/assets/1/planning_department/Arlington_Heights_Hotel_Market_Study_2010_-_Final.pdf(
October26,2010).23Cervero,289.
VillageGreenandTrainStationfrom
NorthwestHighwaylookingsouthImagecourtesyofVillageofArlingtonHeights
-
8/8/2019 Case Study Chicagos Metra Line
11/13
10
ArlingtonHeightsRetailStrategy
The Village has pursued a focused retail strategy to attract and retain quality
commercialbusinessesforthedowntownarea.Asaresult,commercialspaceincreasedfrom
300,000squarefeetin1983to522,000squarefeetin2006.Table2providesabreakdownbycommercialusefordowntown.
Even though public input received by the Village suggests that the downtown has
becomeasuccessfulplacetolive,dine,andtobeentertained,retailsalesanalysisindicatesthat
the downtown lacks strong national retailers which serve to attract shoppers downtown to
patronizenotonlythenationalstoresbutalsothelocallyownedsmallerretailers.Comparedto
average retail sales forsuccessful shoppingcenters, which average$300 to$400 persquare
foot, retail sales in the Villages downtown averaged only $181 per square foot in 2004.
Seventeen out of the 43 retail stores analyzedhad salesof less than $100 per square foot,
makingsurvivaldifficult inlightof increasingrentsdowntown. Nevertheless, restaurantsaleshave fared much better, averaging $256 per square foot in downtown. The number of
restaurantsindowntownhasincreasedfrom13in1999to35in2006,andtotalrestaurantsales
haveincreasedfrom$7milliontoover$21millionfrom1998to2006.24
Table2:CommercialSpace(First-Floor),DowntownArlingtonHeights,2006
Use SquareFeet Percentage
Restaurant 93,000 18%
Retail 109,000 21%
Service 130,000 25%
Office 82,000 16%
Entertainment 35,000 7%Vacant 73,000 14%
Total 522,000 100%
Source:DowntownMasterPlan,2007
TaxIncrementFinancing
The Village has used Tax Increment Financing (TIF) extensively to redevelop the
downtown since 1983 when the TIF 1 area was established for the southern portion of
downtown.TIF2wasestablishedin1986inthenorthernportionofdowntown.From1983
through2009, theVillage leveraged approximately $50million inTIF funds to facilitate$200
millioninprivateinvestment.AllbondsissuedbytheVillageinthesetwoTIFswererepaidontimewhollyfromTIFincrements.TheEqualizedAssessedValue(EAV)oflandinthedowntown
increasedfrom$10.7millionin1983tonearly$105millionin2006(Table3).25Overthesame
period,propertytaxreceiptsincreasedfrom$950,000to$8.4million.26
24http://www.vah.com/assets/1/planning_department/Downtown_Master_Plan.pdf
25http://www.vah.com/departments/planning_and_community_development/tif.aspx.
26InterviewwithBillEnright,DeputyDirectorPlanningandCommunityDevelopment,theVillageofArlingtonHeights.
-
8/8/2019 Case Study Chicagos Metra Line
12/13
11
Table3:GrowthinEqualizedAssessedValue
Established BaseEAV EAV2006 PercentChange Terminated
TIF#1 1983 $8.5million $80.9million 852% 2006
TIF#2 1986 $2.2million $23.9million 986% 2009
Source:TheVillageofArlingtonHeightsPlanning&CommunityDevelopmentDepartment,TaxIncrementFinancing,
http://www.vah.com/departments/planning_and_community_development/tif.aspx(October25,2010).
Parking
Parkingitslocationanditstreatmentsignificantlyimpactsanareasvisualcharacter
andspatialstructure.Theimpactisoftennegativeasitaffectsthequalityofdowntowns
pedestrianenvironment.Cognizantofthisissue,theVillagehascommissionedparkingstudies
andhasusedthefindingstodeviseaparkingprograminwhichdevelopmentsparticipatedin
sharedfacilitiestoprovideanadequatebutnotexcessivenumberofspaces. TheVillagehas
reliedondevelopingparkinggaragesindowntowntoaccomplishthis.Theplacementand
designofthemunicipalparkingstructureshavereducedthevisibilityofparkedcarsandhave
helpedcreateapedestrian-friendlyenvironment.
TheVillageprovidesover3,500downtownpublicparkingspacesinapark-once-and-
walkenvironment.Nearly85percentofthetotalpublicparkingspacesareavailablewithin
threeblocks(750feet)ofthegeographiccenterofdowntown.Parkingisfreefortwohourson-
streetandthreehoursinparkinggaragesandpermitsaresoldformerchantparking,guest
parkingandovernightparkingpermits.27TheVillagehastakenavarietyofstepstoimprove
publicparking,amongthembettermaintenanceandlighting,installingwayfindingandparking
directionalsigns,andpublishingadowntownparkingguideforpatronsandbusinessesontheVillageswebsite.
28Metrahastakenacontext-sensitivedesignapproachtocommuterparking
inthenewstationdesign.With1,261commuterspacesandover6lotstochoosefrom,the
ArlingtonHeightsMetrastationcommuterparkingisdispersedamonganumberofsmallerlots
insteadofconcentratedononesuper-sizedlot.Thisstrategyextendsthecommuterwalkshed,
directingpeoplepastshopsandservicesinacomfortable,human-scaledenvironmentthatis
notdominatedbyparkedcars.29
27ArlingtonHeightsDowntownParkingGuide,http://www.vah.com/assets/1/documents/parkingguide.pdf(October
31,2010).28http://www.vah.com/assets/1/planning_department/Downtown_Master_Plan.pdf
29Cervero,286.
-
8/8/2019 Case Study Chicagos Metra Line
13/13
12
LessonsforLongIsland
ThestoryofTODinArlingtonHeightsisoneofincrementalimplementationoflong-term
visionthrougha combinationof supportivepublicpoliciesand targetedpublicinvestments to
leverage privateenterprise in revitalizing suburban downtown. The take-away lessons of its
successarethese:
There truly are no substitutes for visionary leadership, careful planning, strength ofconvictionandperseverance.Thesearetheessentialingredientsforsuccessinbuilding
TODcommunities.
Plancarefullyandengagethepublictoavoidmissteps,continuallymonitorprogressandbeprepared toreassess programsand incentives tokeep them currentwith changing
demographictrendsandbusinessmodels.
Existingtrainstationsarediamondsintheroughthatifpolishedcanplayavitalroleinbringinglusterbacktotarnisheddowntowns.
Creatingoraugmentingadiscernible,cohesiveandpositivesenseofplaceisimportantand ought to begin at the station area. Partnerships with the transit authorities are
important.
Parking facilities can amplify the positive effects of other efforts if they are situatedconvenientlyanddesignedattractivelysothattheydo notdetractfromthepedestrian
experience. Their location can also help promote pedestrian traffic past shops and
services.
TheVillageillustrateditscommitmenttoTODbydedicatingsubstantialpublicresourcesto the effort and forging public-private partnerships that were instrumental. Few
communitieshaveundertakenTODwithoutthesepubliccommitments.