case study chicagos metra line

8/8/2019 Case Study Chicagos Metra Line

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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


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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)


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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.


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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.


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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)


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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


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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


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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


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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.


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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.


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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.

case study chicagos metra line

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