Plainfield: Historic?

April 7, 2010 Chicago Buildings, Economics, Historic Districts Comments (0) 1378

Another downtown bites the dust – or should we say drinks the Kool-Aid? The latter phrase has been overly misused the last decade or two but it is quite appropriate. Historic downtown Plainfield – a lovely Will County town west of Lockport, has voted down historic landmark status, despite a 21-20 majority of downtown property owners being in favor of it. This was reported in the Chicago Tribune today.

Despite the slim majority of owners in favor, Village trustees voted 4-2 against the district, essentially caving to a minority. Negative motivations – like fear – tend to trump the positive motivations, like the economic security provided by knowing what kind of downtown you are going to have in the future. Another negative motivation: fear of the frightening property regulators, who have somehow not interfered with two renovations of this historic property owned by Pat Andreasen, listed on the state, national and local registers.

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Owning in an historic district

December 3, 2009 Economics, Historic Districts Comments (6) 1741

I own a house in a historic district and last year I blogged about how thankful I was for that fact. Real estate is an asset whose value is largely external – it comes from its location, which is to say, its surrounding buildings and environment. Because my house is in a historic district, its value is assured. Economic studies for over 40 years have confirmed this fact in communities across the United States.

If you look at the history of historic districts – which I did in my dissertation – you find that the first modern historic districts emerged in the 1950s in communities that were concerned about drastic changes to their environment and thus the value of their homes. Urban renewal was one threat, which proposed outright demolition. The other threat was posed by postwar zoning ordinances, which dramatically increased density and thus owners of brownstones or single-family homes faced the prospect of massive highrises next door.

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how does economics work?

April 22, 2008 Economics, Historic Districts Comments (0) 1348

There was a great symposium Saturday at the Chicago Architecture Foundation, one of several in conjunction with their exhibit on the history of Chicago preservation: “Do We Dare Squander Chicago’s Great Architectural Heritage?” that runs through May 9 (See it now!). Prof. Bob Bruegmann opened it up with an excellent history of teardowns and the inquisitive, expectation-overturning perspective he brings to everything. Prof. Richard Dye, an economist, explained the economics of teardowns. Both men suggested that an upside of teardowns was that they shouldered a bigger portion of the tax base, a fact that neighbors of teardowns are perhaps loath to admit. Bob did note that increased values could mean higher taxes for the teardown-adjacent in their little historic houses as well, and he also sagely discussed the new penchant for small houses, which are of course greener and thus more chic and popular with the wealthy. Continue Reading

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Home Economics

March 20, 2006 Economics, Historic Districts Comments Off on Home Economics 1298

In the last month I have read two articles both titled “Home Economics” and both might be said to be profiles of anti-landmarks persons. The first was in Chicago magazine and profiled a local lawyer who helped quash landmark designation in the Sheffield/De Paul neighborhood. Her argument was that designation would hurt property values and cause all sorts of expenses for homeowners.

The other “Home Economics” profile was of economist Ed Glaeser in the New York Times, and he said just the opposite.

On Thursday the Wall Street Journal published an article about the proliferation of local historic districts driven by residents’ desire to raise their property values. That counters our Chicago attorney-cum-economist, but it supports Glaeser. Continue Reading

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Historic Districts

January 29, 2006 Economics, Historic Districts Comments (0) 1216

We are starting a class on Historic Districts tomorrow – looking at how they evolved and what motivates people to designate their community as an historic district. Historic districts are a fascinating combination of two postwar movements – the broadened historic preservation movement, which was inching beyond associative and architectural history to start looking at the state of cities, towns and rural places in a bigger way; and the community planning movement, which was trying to wrest control over development decision-making from the urban experts who began to radically refashion cities after World War II.

We will be looking at a lot of different cities and districts and I hope that the students help me to understand the whys of the historic district, especially why people choose it – or fight it. For those ideological free market types, historic districts are a bit more fair than traditional individual landmarks, because they put a whole area – or “market” – under the same set of rules, as opposed to individual landmarks, which are seen to be at a development disadvantage from their neighbors. Yet historic districts are also mechanisms for community empowerment, allowing a group to control the form of its environment in a manner more precise – and perhaps less predictable – than zoning, which regulates use and density. Continue Reading

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