Sterling Bay, the developer behind dozens of projects in Chicago, launched a last-ditch effort earlier this month to secure City Council approval for a pair of apartment towers on the western edge of Lincoln Park, all the way around an alderman. And attempted an end-run. Project.
The company plans to try to bypass ALD. Scott Waguespack, 32nd, and take the project straight to the City Council, marking the first time a developer will use the 2022 zoning reform, which ensures certain builders get an up-or-down vote if local opposition votes in approval. Delay.
It is a challenge to Chicago’s long-standing custom of “aldermanic prerogative”, which typically gives local aldermen the final word on zoning decisions in their wards. Ad hoc tradition plays a powerful – yet controversial – role in determining which developments may proceed. Supporters of the aldermanic prerogative say it ensures that developers cannot ignore local concerns, while opponents say the prerogative could require development or even help maintain historic segregation. Help may be available.
The 2022 reform, known as the Connected Communities Ordinance, overhauled city zoning law and stands as one of the legacies of former Mayor Lori Lightfoot, and the Aldermanic Progressive Key if she visits Sterling Bay. Can put some limits on tradition.
“We had seen many examples of projects that were never voted on,” said Chicago Department of Housing Commissioner Marisa Novera to Lightfoot. “And to be clear, this does not mean that development gets automatic approval; It just brings some democracy into the process by saying a vote is required. ,
The $340 million Sterling Bay project was approved in June by the Planning Commission in an 11-1 vote over Waguespack’s objection. But it failed to win an endorsement from the zoning committee in December.
The project includes land at 1840 N. near the CTA’s Red Line. Marse St. will include the construction of 16- and 21-story skyscrapers and be sandwiched between the Buntown Neighborhood and the Clyburn Corridor retail district. The complex will have 615 apartments, 124 of which will be affordable.
“This has been a four-year effort, and we think it’s time to move on,” said Fred Kroll, managing director of Sterling Bay.
Waguespack did not return a call seeking comment, but released a statement in December explaining that several members of local neighborhood organizations, including the Ranch Triangle Community Conservation Association, say Towers seems out of scale compared to much of the community two and three. Will be. -storey houses, and more traffic in an already congested area can cause headaches.
“The Ranch Triangle Association supports residential development on that site, and we support affordable housing in our community because it’s great for diversity,” said Erma Tranter, association president. “We are just asking Sterling Bay to reduce the height and density of the two towers.”
Many major developments require zoning changes, and connected communities improve how to pursue those changes. It expanded the definition of transit-oriented development, adjusted bike parking rules, and established parking maximums for residential projects.
It also included a provision that gives developers proposing large amounts of affordable housing in high-cost, transit-rich areas such as Lincoln Park another way to secure approval if they hit political hurdles.
Ald. The 27th, chairman of the zoning committee, Walter Burnett, used a parliamentary maneuver in December to keep the Sterling Bay proposal alive after members initially voted down. Under Connected Communities, Sterling Bay is required to send Burnett an official notice requesting another vote, but cannot do so until April due to deadlines specified in the ordinance. If no vote occurs within 60 days thereafter, the proposal is sent to the full City Council.
Novera, vice president of community impact at the Chicago Community Trust, said that 1840 N. The Marcy St. Project checks all the boxes for connected communities. If successful, Sterling Bay’s challenge could set a precedent, helping other developers build affordable units in neighborhoods low- to moderate-income residents might not otherwise be able to afford.
“Chicago is an extremely segregated city by race and income, and that’s why we must make decisions like this as a city,” Novera said.
Mayor Brandon Johnson downplayed the dispute with Waguespack after the Plan Commission vote in June, saying “This is not some controversial, fake spat or rift between my presentation and other people. This is about a real conversation that this “How do we have vibrancy in the city so we can recover.”
Such a high-profile conflict between an administration and local aldermen over a development occurred in 2021 when then-Mayor Lightfoot convinced the City Council to approve a 297-unit project on the far northwest side over the objection of the ALD Was. Anthony Napolitano, 41st.
All developers using the Connected Communities Ordinance must first hold at least one public meeting. Sterling Bay held its meeting on January 15 at 1840 N. Held in a vacant building on Marse St., which will be torn down to make way for development.
More than 100 people showed up, and most of the crowd appeared to be in favor of the new development.
Kroll credited neighborhood groups like Ranch Triangle for pushing the company to boost the percentage of affordable housing. Sterling Bay had initially called for 15% of the units to be affordable, but by the time it went before the Planning Commission in June, the company had agreed to make 20% affordable.
Hitting the 20% benchmark means Sterling Bay can qualify for the state’s 2021 Affordable Illinois property tax reform, which secures deep assessment cuts and lower taxes for property owners while keeping units affordable. .
In his December statement, Waguespack said with city homeowners facing potential property tax increases, tax cuts may not be the best use of resources for Sterling Bay.
“This property tax break will reduce their property taxes by approximately $44.7 million which will be transferred to other property owners,” he said.
But Kroll said at the meeting that without the proposed development, the property would generate $69 million in property taxes over 30 years, while a new 1840 N. Marse St would generate $248 million.
“I don’t know anyone in this room who would consider $248 million cheap,” he said.
Sterling Bay also agreed – in advance of the June Plan Commission – to cut the height of both towers and reduce the number of parking spaces from 360 to 275, after negotiations with Waguespack and other neighbors.
But 275 is still too high, Tranter said. Hundreds of new cars would be pushed up Clyburn Avenue, already packed during rush hour, and nearby Cortlandt Street, often backed up for blocks throughout the day, he said. Said.
“Marsey Street is only 21 feet wide, and traffic is already pinned down at the bridge over the river, where it meets the two lanes downstream from one,” Tranter said. “So, this is not a sustainable development by any means.”
Louie Aboun, principal of Cloa, the traffic consultant advising Sterling Bay, said the developer will include some minor upgrades to the neighborhood’s road infrastructure, such as improved sidewalks and crosswalks. But he said what often happens on nearby streets are shoppers and drivers from outside the neighborhood.
“We understand the concerns, but (1840 N. Marcy’s) impact on Cortland will only be incremental,” he said. “It will no longer be enough to make the roads worse.”
Kroll also said that significantly reducing the size of the towers was not an option.
“We’ve looked at that and looked at that, and we just can’t make the changes that you’re talking about,” he said. “Ultimately, we have to convince a lender to finance the project, and we have to demonstrate that the project will be able to pay back the loan.”
Many attendees said the city needed more development to combat Chicago’s rising homelessness, and to raise the money needed to maintain its declining credit rating.
“I’m grateful that this project is moving forward,” said nearby resident Richard Day. “If we can’t build more housing in the city we’re screwed.”
Some speakers said the neighborhood was unaffordable, especially for younger residents. and new ground-floor retail Sterling Bay 1840 N. Wants to build in marse st.
“For the last five years I’ve lived here,” said graduate student Joshua Chodor.
Others said Sterling Bay should build the proposed residential complex at the $6 billion Lincoln Yards development site near the North Branch of the Chicago River. The company unveiled Lincoln Yards six years ago, with plans for offices, retail, riverfront parks, massive improvements to the neighborhood’s transit infrastructure, entertainment venues and apartments that include skyscrapers nearly 600 feet tall. But it has struggled to finance construction, leaving much of the land vacant and transit improvements undone.
Local resident Scott Nations said the 1840 N. There could be a buffer zone between the Marse St neighborhood and Lincoln Yards, with a small apartment complex instead of Lincoln Yards-sized buildings.
“It’s lined with two- and three-story buildings,” he said.
Kroll said preparing the 53-acre Lincoln Yards at 1840 N. Much trickier than Marse St. To reorganize the site infrastructure.
“The (1840) project is not being triggered by Lincoln Yards,” Kroll said.
This isn’t the only apartment project Sterling Bay wants to build near Lincoln Yards. In May, the Planning Commission approved 2033 N. Approved its plans for a 25-story, 355-unit building at Kingsbury St., two blocks north of the Marcey site at ALD. Brian Hopkins’ 2nd Ward. It was approved by the city council in the summer.
Tranter said negotiations will continue between the developer, neighborhood groups and Waguspack.
“We want this project to be the best it can be, well thought out and sustainable,” she said.