Landmarking, a few years later
So the Armitage/Halsted commercial corners were landmarked by Vi Daley awhile back, over the objection of at least 90% of the property owners. The result?
We've lost our local hardware store, a women's clothing store, another store has halved its size, and a few other "local" stores have left for greener pastures.
The latest RANCH newsletter reprints a letter of a 14 year old to Alderman Daley asking why all the cute little stores have left the neighborhood, and what "we" can do about it.
Now, I can understand a 14 year old lacking a background of economic theory and history with the neighborhood to understand the laws of supply and demand.
I would argue that "we" are part of the problem, because landmarking the commercial district translates into higher maintenance costs, higher risk factors, ergo, higher prices to rent there in the first place.
Alderman Daley's response is inexcusable. Among the more laughable portions, she suggests that she will work really really hard to make sure that when someone else comes in (i.e., national chain retailer, if the landlord is so lucky, since Vi is also refusing to allow any new banks to set up shop on the street) they will be forced to change their business practices to be more "local" in style (i.e., the cost of doing business will become even MORE expensive).
Good grief. So much wrong with this mentality.
Now, think about it. If retail square footage is renting on the order of $63/sf, and assuming that the average retail space on the block is maybe 1000 square feet, you're talking maybe 63K a year in income BEFORE expenses. The building housing Charlie Trotter's pays in excess of $20K a year in property taxes. The commercial condo where Lori's Shoes is located pays on the order of $14K a year. The building where Studio 910 is located pays out over 10K a year. How much do you think is left over to pay a mortgage, or pay for repairs??? Property taxes being what they are, and ever-rising, of course that will push people out of the market.
Gee, if local businesses can't afford to be where they are, maybe the Alderman should try to cut out the costs of government for a change. Start with getting rid of the landmark designation. Cut the number of city agencies you need to go through to even get your business up and running in the first instance. Cut city expenses, cut the burden of property taxes. Oh, and if you want to ensure that there are enough people in the area to patronize the businesses in the first instance, maybe you can allow some areas to have their zoning upped, so that there are more condos, leading to higher density and foot traffic.
It irritates me to no end that the only solution the government can think of to the messes it creates is Ta-DAAA!!! more government. Sheesh. We're not worthy of those who turned Boston Harbor into a big teabag because they were ticked off at paying the King's new taxes.
posted by The Grants @ 2:48 PM
2 Comments:
Dee you are featured in the Chicago Magazine February 2006. I was wondering if you would be interested in a complimentary plaque design for that feature. If so please contact me at Jamesvdh01@yahoo.com
Local stores on Halsted and Armitage will come and go regardless if they are located in a landmark designated area or not. The local hardware store that you speak of was on Armitage between Fremont and Bissel and it is gone for three reasons:
#1 Home Depot @ 2665 N. Halsted
#2 Home Depot @ 1232 W. North Ave.
#3 Home Depot @ 2570 N. Elston Ave.
Home Depot gave the neighbors three convenient locations, lower prices, greater selection, and parking. How can you beat that? Not because it was located in a landmarked area!
It should come as no surprise that Lincoln Park Foods is out of business. Everyone knew the days were numbered when Dominick's opened on Fullerton and Sheffield. This business was located at Bissel and Webster, not landmarked.
The cute little stores have left the neighborhood because people like yourself prefer to shop at Tarjay - on - Elston. Others will shop at Costco and the list goes on.
Rent and property tax is high because of location, location, location. Uproot any business in Lincoln Park and move it to 35th and King Drive, and I can assure you of two things, property taxes would be a lot less and rents would be very affordable. Now uproot a business from 35th and King Drive and move to Armitage between Halsted and Sheffield, I can assure you of two things, property taxes would be a lot higher as would rent. You better have deep pockets like Starbucks, Benneton, and of course all the banks if you want to have a business in the most desireable neighborhood in the city, you pay for location!
As a small business owner I can tell you our top expenditures. Insurance, utilities - especially gas, payroll - payroll taxes account for half of payroll, real estate taxes, and rising cost of goods.
I would expect to pay a premium in rent and taxes if my business were located in Lincoln Park. Whether it be in a landmark designated building or not, and I would find it preposterous to think my success and or failure is because my business were located in a landmarked area. A sound bit of advice, dont expect the government to do a damn thing and take care of your customers and your business will take care of itself.
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