Tag Archives: Chicago

Supply and Demand in Downtown Residential Parking

Downtown Chicago Building Roundup: North

Downtown Chicago Building Roundup: North (Photo credit: Gravitywave)

I’d like to delve a little bit further into the pernicious effect of parking minimums, particularly as it distorts the market tenets of supply and demand. Seeing an article over the weekend in Crain’s Chicago Business about the decline in parking demand in downtown Chicago residential buildings, I could not avoid beating my favorite drum about the high cost of parking and its negative externalities. Here is the problem, according to Crain’s:

Demand for parking is dropping in downtown apartment buildings. At Lakeshore East, a development of mixed use high rise apartment and condo buildings just north of Millennium Park, south of the Chicago River and east of Michigan Ave., around 40% of renters lease a parking space, down from the developers projection of 55%. This would be fine in a true free market where the developer would assume the risk of overbuilding on parking. However, the City’s zoning code, in its infinite wisdom, requires parking in new residential developments at ratios of 0.55 to 1 space per unit. Thus, the developers initial projection for parking is at the lowest end of the parking ratio in the zoning code and is still over market demand.

Of course, I agree with Matt Yglesias in that the “problem with this regulatory minimum is that it makes it harder for existing buildings to recoup the losses previously incurred through overbuilding of parking.” Because the zoning code won’t allow for pooled or shared parking between buildings, each building must have its own allocated parking. The costs of this parking, of course, get passed onto the occupants of the building indirectly, regardless of whether the occupants have a need for a car.

Because of the over supply of residential parking downtown as mandated by zoning, parking is artificially cheaper than it should be. This, of course, encourages greater auto use in the densest part of the city, the part in which public transportation of various modes operate at a very high frequency practically around the clock. It also encourages the catering of urban design towards the car and away from alternate transportation modes, despite the fact that the alternate transportation modes may make up a larger share of trips in this area.

Ideally what I would like to see in this circumstance is free market pricing for residential parking, or if the zoning will continue to manipulate the market,  parking maximums (for all types of parking). This will allow for shared parking at closer to the true cost of providing that parking. It will also allow the free market to decide what the best use of property is under right and can reduce the cost of development and occupation of residential and other space. Most importantly, removing the parking minimums and over-supply of parking will be supportive of the existing public transportation infrastructure in place downtown, as it is the dominant mode of travel within the area and its externalities are significantly better than the car.

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Transport Nexus in the Polish Triangle

Looking southwest from the Polish Triangle

Of great interest to this site is the connection, or nexus, between transportation and land use.  One prominent example of this failure of this nexus is at the southwest corner of Ashland Ave., Division St. and Milwaukee Ave., historically known as the Polish Triangle. Now part of the East (Ukrainian) Village neighborhood, this site is commonly known as the “Pizza Hut” site.

Needless to say, it is an abomination that this site was designed (allowed) in such a way as to maximize the use of the automobile when you have the following conditions present:

  • Access to the CTA Blue Line at Division St.
  • The #70 Division bus (running east-west) stop literally next to the property
  • The #56 Milwaukee bus (running NW-SE) and #8 Halsted bus (running north-south) stops across the street.
  • Designated, striped bike lanes on Division St. and Milwaukee Avenue.
  • Rare pedestrian space in the plaza like setting of the Polish Triangle.
Thankfully, this egregious market failure will be rectified.
It seems that after years of waiting, East Village residents will get what they have always wanted: 
In early 2007, immediately after the Pizza Hut was shuttered, a coalition of community organizations lead by the East Village Association set forth four policies for redevelopment of the property. They called for a significant building that was mixed-use, high density and transit oriented.

 

This is, of course, despite the fact that the site faced significant development pressure for a Walgreens and various drive-thru bank facilities. Instead, the community got this:

11 story mixed use building.

The building is an 11-story mixed use facility with ground level retail, second floor office and  apartments above. Reportedly, a coffee shop and bank are among the tenants thus far. 117 apartment units are provided with 35 parking spaces provided, 15 on site. One concession: a drive-thru for the bank using an existing curb cut. Interestingly enough, the 20 off-site parking spaces are in a parking lot adjacent to the property, home to an auto-oriented Wendy’s. The parking will not be available to residents, only for visitors, customers, and car sharing. This seems right.

What I find most interesting is that the developers acknowledge that the apartments are primarily for people who do not own cars. It is a tacit admission that not everyone needs a car, that the site will take advantage of its nexus to so many other transportation options that a car can be just one option among many, rather than catered to and coddled into the site. When you have this many transportation options and an urban environment designed for pedestrians, this concept had to fit within and respect those parameters.  Kudos to the East Village community and developers Rob Buono and Paul Utigard. If more people thought like this we would have more Strong Towns. 

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Parking Minimums: Promoting Driving Everywhere

Chalmette19FebOfficeDepotRedFord

Source: Wikipedia

I would like to add a bit of anecdotal experience of living in a large city and commuting and the insidious effect that parking minimums have on cities, generally, and transit, specifically.

I live in the Jefferson Park neighborhood of Chicago. It is part of the city’s famed bungalow belt and is located in the extreme northwest side of the city. Though my part of neighborhood was plated in the 1920’s, most development occurred in the 1940’s and ’50s. As such, it was developed with the automobile in mind. Despite the fact that most homes are on postage size 25’x125′ lots (thank you 1920’s plats!), most of the commercial corridors filled in during the 1940’s-’50s and are auto-oriented.

Because my home has a back alley garage (guaranteed parking) and much of the neighborhood has easy free parking thanks to zoning that requires parking minimums, I actually drive a fair amount, much more than I’d like to. Accordingly,

“A guaranteed parking spot makes use of the automobile a more attractive option”

much to the detriment of transit and pedestrian space.

When the car takes precedence in transportation planning, other things get neglected. When retail is built into “centers” and “strip malls” and not corner stores, pedestrians and transit get neglected. And what are shopping centers and strip malls: just urban design that satisfies parking minimums.

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Time to Fight

Yonah Freemark over at The Transport Politic says it’s Time to Fight. House Republicans want to turn transportation into an all out ideological battle.

Looking south above Interstate 80, the Eastsho...

Without a balanced federal transportation policy, more of the same traffic congestion is in our future.

This, of course, is bad news for cities and metropolitan areas. As gas prices rise higher due to peak oil, supply and demand and geopolitical issues, it is even more urgent that the U.S. plan for a multi-modal approach to federal transportation policy. The automobile as the dominant form of mobility option is not sustainable or feasible. In the Chicago region, the Regional Transportation Authority estimates that the CTA, Metra and Pace could lose up to $450 million in capital each year. In a region with a system with a $10 billion backlog of capital projects, we simply cannot afford to lose this kind of money.

As Senator Bernie Sanders (I-VT) said once, “Elections have consequences.”

One of the most important lessons in all of this is that elections have consequences. Many people now are beginning to catch on to that. It is no secret that our right-wing Republican colleagues did very well in November 2010. They captured the House of Representatives.

If you care about transportation and urban affairs, please remember this. And most importantly, fight now and call your Representative.

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