Pay As You Grow

Who ought to pay for development?

Illinois Times

August 26, 1993

Very wonky. To the considerable extent that private developers affects the public realm in ways from flood control to traffic to aesthetics, the public has a right to a say in their decisions and the right expect that the public not pay their incidental costs. The questions that inform debate about developer exactions—questions that have been asked across Illinois since the 1970s at least—are thus important. How much does development cost a city in the long run? Who ought to pay? How?

 

Subdivision ordinances are nearly invisible laws that have very visible effects on a city's physical form, and thus, indirectly, on its quality of life. Such ordinances set forth the process by which proposed projects will be reviewed by relevant planning, zoning, and building code authorities, plus the technical infrastructure requirements that new residential building projects must meet, such as the configuration and location of sidewalks and the capacity of sewer pipes and water mains.

 

Springfield is in the process of revising its subdivision ordinance. Sporadic negotiations have been underway since spring between Springfield area developers and the city's planning and zoning staffs. The new version would speed up the project approval process—a money-saving plus for developers—while modestly raising the standards for sidewalks, water pressure, and back-filling of buried pipes.

 

City oversight of new building costs money, of course, and for decades cities and utilities have charged developers the cost of permit processing, code inspections, and sewer and electrical hookups. Beginning in the 1970s, some municipalities in Illinois and elsewhere began assessing developers for the indirect costs of new building projects as well. The object was to compensate local government for some of the burdens that new (mainly residential) development puts upon local services. Moving people into a community means heavier demand on local streets, sewers, parks, and schools; so does moving people within a community. The cost of serving the typical far-flung, un-dense residential project on the edge of town almost always exceeds what it earns in property taxes.

 

Thus "impact fees" imposed on developers as a condition of doing business. These exactions first appeared in America's booming exurbs like Naperville. That town passed a pioneer ordinance in the 1970s that required residential developers to donate to the city land for parks and schools (or cash in lieu of land). By the late 1980s, municipalities across northeast Illinois were demanding that developers pay, up front, fees to mitigate the impact population growth was having on transportation systems, libraries, and so on.

 

In Schaumburg in 1990, such "impact" or "mitigation" fees amounted to roughly $1 per square foot of building, as developers were not only required to pay to be hooked up to local sewer systems and water mains but were required in some cases to build them. Builders in Chicago suburbs have taken to complaining that the cost of building is 20 percent higher than it was ten years ago because of red tape, impact fees, and more demanding building codes.

 

Municipalities charged what the market could bear, and in a booming housing market that's a lot. (One Illinois suburb reportedly assesses a new golf course development impact fees of $5,000 per lot.) In 1990 a survey by a DesPlaines-based trade magazine found that impact fees in some Illinois suburbs ran to $17,000 per house. That number will strike fear in the hearts of most Springfieldians, but please note that in these towns the "average new house was then selling for $225,000 to $250,000. Fees accounted for as little as 7.5 percent of purchase price—less than a lot of these buyers shelled out for the wet bar in the rec room.

 

Municipalities came to rely on impact fees as a source of general revenue, a hidden tax that has no reasonable connection to the actual costs they ostensibly offset. (DuPage County funds its planning department largely through impact fees.) Even where city halls were not greedy, assessing such fees was often arbitrary, since the economics of allocating social costs of new development is not exactly a mature science. Illinois builders lobbied this spring for an infrastructure act to regularize the way impact fees are assessed, collected, and used.

 

If some towns demand too much of developers, the City of Springfield demands not nearly enough. The capital city shrinks from exacting fees of any kind from the exploitation of the land within its boundaries. This is true even though development has much the same impacts here that it has in Lake or DuPage county. City officials here as there are eager to see taxable properties built, because they generate short-term "profits" for city government. The problem is that most new development—almost always on the periphery of the city, at very low densities, in areas only minimally equipped with urban infrastructure—imposes long-term costs that must be paid by the larger public.

 

Springfield's ragged edge is accessible only by car, for example, so every new house there means more miles traveled, more pollutants pumped into the air, more cars on the road more hours of the day. Population shifts have already lead to demands for new or relocated fire stations, schools, and parks that are paid for out of taxes paid by residents in old parts of town as well as new.

 

The city does occasionally negotiate a new traffic light or street spur out of a developer, but a regular schedule of impact fees would help capture much more of the costs of expansion from the people who are causing it. Those costs are wider than any Illinois impact fee has yet conceived. In western and southern states, regional "environmental linkage" fees have been levied to pay to protect or replace natural amenities—clean air, vistas, natural habitat—that are threatened by development. We know that development aggravates flooding downstream; a fee based on the amount of a lot that is rendered impervious by building, paid to a fund for flood amelioration, would thus seem reasonable.

 

The possibilities are limited only by the operative definition of "public good." Were I given a vote, I would cast it for a property tax surcharge on any new house built farther than half a mile from a store that sells milk and bread, the proceeds to be used for local tree-planting programs to offset the generation of greenhouse gases caused by the extravagant burning of fossil fuels. Such linkages could also be used to reduce demand for new coal-fired electricity plants, with builders of energy-inefficient structures paying a fee that would be used to fund energy efficient improvements elsewhere in the utility's market area.

 

And what about a fee to compensate for the aesthetic impact of development? Springfield's bigger developers are savvy and experienced men, yet among them they have produced not a single project that is handsome (as distinct from less ugly than the one next to it) or innovative in its use of land. A developer who exploits the view of public land near parks and nature preserves or stream valleys in ways that destroy those views for everyone else could be made to pay a premium for the privilege to the relevant public authority, the proceeds being used to buy for public use unspoiled land elsewhere.

 

It is politically impossible, I know, to bring the price of new housing more in line with its costs. Everybody expects to get what they pay for in this world. Making people pay for what they get will never be popular. ●

SITES

OF

INTEREST

John Hallwas

Essential for anyone interested in Illinois history and literature. Hallwas deservedly won the 2018 Lifetime Achievement Award from the Illinois State Historical Society.

Lee Sandlin Author

One of Illinois’s best, and least-known, writers of his generation. Take note in particular of The Distancers and Road to Nowhere.

Chicago Architecture Center

See Home Page/Learn/

Resources for a marvelous building database, architecture dictionary, even a city planning graphic novel. Handsome, useful—every Illinois culture website should be so good.

The Encyclopedia of Chicago

 

The online version of The Encyclopedia of Chicago. Crammed with thousands of topic entries, biographical sketches, maps and images, it is a reference work unmatched in Illinois.

Illinois Great Places

The Illinois chapter of the American Institute of Architects in 2018 selected 200 Great Places in Illinois that illustrate our  shared architectural culture across the entire period of human settlement in Illinois.

McLean County Museum

of History

A nationally accredited, award-winning project of the McLean County Historical Society whose holdings include more than 20,000 objects, more than 15,000 books on local history and genealogy, and boxes and boxes of historical papers and images.

Mr. Lincoln, Route 66, and Other Highlights of Lincoln, Illinois

 

Every Illinois town ought to have a chronicler like D. Leigh Henson, Ph.D. Not only Lincoln and the Mother road—the author’s curiosity ranges from cattle baron John Dean Gillett to novelist William Maxwell. An Illinois State Historical Society "Best Web Site of the Year."

Illinois Digital Archives

 

Created in 2000, the IDA is a repository for the digital collections of the Illinois State Library and other Illinois libraries and cultural institutions. The holdings include photographs, slides, and glass negatives, oral histories, newspapers, maps, and documents from manuscripts and letters to postcards,  posters, and videos.

The Illinois State Museum

 

The people's museum is a treasure house of science and the arts. A research institution of national reputation, the museum maintains four facilities across the state. Their collections in anthropology, fine and decorative arts, botany, zoology, geology, and  history are described here. A few museum publications can be obtained here.

Chronicling Illinois

“Chronicling Illinois” showcases some of the collections—mostly some 6,000 photographs—from the Illinois history holdings of the Abraham Lincoln Presidential Library.

Chicagology

I will leave it to the authors of this interesting site to describe it. "Chicagology is a study of Chicago history with a focus on the period prior to the Second World War. The purpose of the site is to document common and not so common stories about the City of Chicago as they are discovered." 

Illinois Labor History Society

The Illinois Labor History Society seeks to encourage the preservation and study of labor history materials of the Illinois region, and to arouse public interest in the profound significance of the past to the present. Offers books reviews, podcasts, research guides, and the like. 

Illinois Migration History 1850-2017

The University of Washington’s America’s Great Migrations Project has compiled migration histories  (mostly from the published and unpublished work by UW Professor of History James Gregory) for several states, including Illinois. The site also includes maps and charts and essays about the Great Migration of African Americans to the north, in which Illinois figured importantly. 

History on the Fox

An interesting resource about the history of one of Illinois’s more interesting places, the Fox Valley of Kendall County. History on the Fox is the work of Roger Matile, an amateur historian of the best sort. Matile’s site is a couple of cuts above the typical buff’s blog. (An entry on the French attempt to cash in on the trade in bison pelts runs more than

2,000 words.)

BOOKS

 OF INTEREST

Southern Illinois University Press 2017

A work of solid history, entertainingly told.

Michael Burlingame,

author of Abraham 

Lincoln: A Life 

One of the ten best books on Illinois history I have read in a decade.

Superior Achievement Award citation, ISHS Awards, 2018

A lively and engaging study . . .  an enthralling narrative.

James Edstrom

The Annals of Iowa

A book that merits the attention of all Illinois historians

as well as local historians generally.

John Hoffman

Journal of Illinois HIstory

A model for the kind of detailed and honest history other states and regions could use.

Harold Henderson 

Midwestern Microhistory

A fine example of a resurgence of Midwest historical scholarship.

Greg Hall

Journal of the Illinois

State Historical Society

Click  here 

to read about

the book 

Click  here 

to buy the book 

Southern Illinois University Press

SIU Press is one of the four major university publishing houses in Illinois. Its catalog offers much of local interest, including biographies of Illinois political figures, the history (human and natural) and folklore of southern Illinois, the Civil War and Lincoln, and quality reprints in the Shawnee Classics series.

University of

Illinois Press

The U of I Press was founded in 1918. A search of the online catalog  (Books/Browse by subject/Illinois) will reveal more than 150 Illinois titles, books on history mostly but also butteflies, nature , painting, poetry and fiction, and more.  Of particular note are its Prairie State Books,  quality new paperback editions of worthy titles about all parts of Illinois, augmented with scholarly introductions.

University of

Chicago Press

The U of C publishing operation is the oldest (1891) and largest university press in Illinois. Its reach is international, but it has not neglected its own neighborhood. Any good Illinois library will include dozens of titles about Chicago and Illinois from Fort Dearborn to

Vivian Maier.

Northern Illinois University Press

The newest (1965) and the smallest of the university presses with an interest in Illinois, Northern Illinois University Press gave us important titles such as the standard one-volume history of the state (Biles' Illinois:
A History of the Land and Its People) and contributions to the history of Chicago, Illinois transportation, and the Civil War. Now an imprint of Cornell University Press.

Reviews and significant mentions by James Krohe Jr. of more than 50 Illinois books, arranged in alphabetical order

by book title. 

Illinois Center for the Book

Run by the Illinois State Library, The Center promotes reading, writing and author programs meant to honor the state's rich literary heritage. An affiliate of the Library of Congress’s Center for the Book, the site offers award competitions, a directory of Illinois authors, literary landmarks, and reading programs.

Contact James Krohe Jr. at CornLatitudes@outlook.com

All material copyright © by James Krohe Jr. unless otherwise indicated