Downtown Tower Myths
The following is a list of "myths" surrounding the proposed 708 Church development recently updated to 35 stories. Clicking on a specific myth will reveal the "reality" of the proposal. This list will be modified as new information is gathered.
We should note that a 10-12 story office building would bring a greater amount of tax revenue to Evanston than a 35 story condominium building. The influx of daily workers to the Downtown would greatly boost parking and sales tax revenue. ECRD feels that providing incentives to businesses wanting to move into downtown office space would be a much smarter way to increase revenues and maintain a vibrant downtown.
- Myth: at 35 stories, the changed proposal fits in Evanston's newly adopted Downtown Plan.
- Reality: the "central core" that was approved (6-3) against the recommendation of both the Plan Commission and a majority of citizen testimony sets a maximum height of 35 stories or 385 feet. However, there is also a base or "by-right" height of 25 stories. Several things should be noted about the maximum height:
1. According to the "plan" 385 feet is the tallest that a structure can be built on this one block. However, the maximum height is NOT a given. In order to achieve the maximum, the developer must provide a specific number and type of benefits to the City.
2. The Downtown Plan is simply a "plan." It is NOT zoning and until the zoning process is complete, the existing zoning (D2 with a by-right height of 42 feet) must be followed. The developer is asking for D3 which has a by-right height of 85 feet. It should be noted that the current zoning allows four floors of parking which do not count towards the maximum building height.
- Myth: Approval of the project will result in an immediate increase in jobs and income for Evanston.
- Reality: The developers have said themselves that they are simply working on getting the "zoning" so that they can build when market conditions improve. Even at their highly optimistic guess of occupancy by 2015, the lot would sit vacant for several years. Any business owners or retailers wanting to move into the immediate area would probably have second thoughts, knowing they would have to move in 3-5 years. Financially, this project is a disaster for the downtown economy.
- Myth: The shorter skyscraper addresses all of the problems with the project.
- Reality: While the development team proposed a slightly shorter building, nothing has really changed. The height was never the only issue. There are still no significant public benefits, the building is still over 110 feet taller than the tallest building in Evanston, the density has not changed, there is still less retail space, existing office space that is already contributing to the Evanston economy is being removed and not replaced, along with many other issues. The City hired a consultant (at taxpayer expense) to look at the economics of the project and while the project made money for the development team, the City didn't get anything substantial in return for the massive zoning allowances. For a more detailed accounting of what "changed" and the issues, click here.
- Myth: The project will add nearly 2.5 million in annual taxrevenue for the city.
- Reality: A more accurate estimate of tax revenue is in the $400,000 to $500,000 range -- after the building is fully occupied and assessed.
The projected property tax revenue represents the total for all tax districts. Because the development is in a TIF, most of the taxes will go into a special fund controlled by the City to fund a limited set of eligible activities for the remaining life of the TIF (set to expire in 2019). After the TIF expires, other tax districts will receive their full share of the taxes generated.
The City's portion of the overall tax bill has historically averaged around 20%. While the TIF is in existence, property tax revenues generated by this building will not be available to support increased operating costs of providing police, fire, emergency service or other City services to residents because they are not TIF-eligible project costs.
Since there are existing leases in the 708 building extending to 2012 (e.g. Williams Shoes), it is possible that construction would not begin until after that date.
- Myth: The developer is not asking for any financial assistance from the City of Evanston.
- Reality: It is true that the developer has withdrawn their request for TIF assistance to renovate the Hahn building. With this withdrawal, they have also removed their often quoted benefit of the historic preservation of the Hahn Building.
- Myth: The project has already been approved.
- Reality: The project has NOT been approved. While the Plan Commission narrowly recommended conditional approval (4-3), the project must now finish with the Planning & Development committee before it proceeds to the Council for a binding vote.
Because of the excessive variances being requested, approval will take a super-majority vote of 6 of the 9 Aldermen. The positive recommendation from the Plan Commission included a long list of conditions including at least one level of underground parking, restoring the 2nd story office space and further refinements to the design among other things.
- Myth: Fire Safety is not an issue with a 35-story skyscraper in Evanston.
- Reality: As Evanston Fire Chief Berkowsky explained in a memo to the Plan Commission, an aerial ladder is only effective for 105 feet or roughly 7 floors.Therefore, it is imperative that there be redundancies of water pumps and a newly designed "robust elevator" capable ofwithstanding an initial fire. The main issue is the INITIAL response to a fire. While the City of Chicago can send 61 fire fighters as a first-response, Evanston can only send a maximum of 26. While Evanston has a reciprocal response agreement with neighboring communities, the average response time -- after a call for additional resources has been made -- is in excess of 15 minutes. Time is critical in fighting a high-rise incident.
- Myth: The City Aldermen have already expressed approval of the project.
- Reality: The executive session of the City Council held in March of 2007 was ruled in violation of the open meetings act of Illinois by the Illinois Attorney General. This meeting was not a part of the approval process for planned developments. The minutes of the meeting were eventually released to the public and are available here.
- Myth: The housing market can absorb more condominium units.
- Reality: Questionable. There are currently around 460 condominiums listed on the Evanston market. This figure has decreased from a high of around 700 due partially to owners pulling their units off the market due to poor financial conditions.
Additionally, the City Council has approved several projects over the past 2-3 years that have not been able to break ground due to a lack of pre-sales. In February of 2009, 1881 Oak and 1890 Maple both asked for a 3 year extension until 2013 due to poor economic conditions. 1720-22 Central also asked for an extension and will not be built in the near future. Sienna was only able to build two of their four buildings and is currently investigating what they can build on their property. Does this sound like a market that needs 218 additional luxury condos?
- Myth: The building would not put undue burden on the existing public utilities.
- Reality: In the August 2nd Staff Report on 708 Church, the Evanston Public Works Department repeatedly reported that the developer had given them insufficient information to make a statement.
- Myth: The addition of 218 condos will bring much needed revenue to downtown merchants.
- Reality: There is no way to accurately gauge the amount of money that roughly 300 new residents would spend downtown. However, the fact is that we would be losing the 100 plus professional offices that currently occupy 708 Church. If each professional had only 3 clients a day, that would equal, or even surpass, the positive impact on downtown from the proposed building. Many, if not all, of the professionals and their clientele use downtown parking and dine or shop while they are here.
- Myth: Evanston will get much needed retail space.
- Reality: The original proposal of the developers actually created LESS retail space than currently exists. In an effort to minimize the impact of the base of the building, the developers proposed that this retail space be cut in half.
- Myth: The new retail space will attract higher quality national retail.
- Reality: The retail space being provided is marginal when it comes to national chain stores. Additionally, it will increase the rents for local retailers who will be forced out of Evanston. Long-time retailers like Williams Shoes will potentially go out of business.
- Myth: High-rise condominiums are the best way to maximize tax revenue for the City.
- Reality: To the contrary, professional office and retail uses pay taxes at a much higher rate than residential units. Ten stories of offices could easily generate more income for the City of Evanston than 218 luxury condominiums occupying the same footprint.
- Myth: One benefit for the City will be a contribution to affordable housing.
- Reality: While the developers are planning to give a contribution to affordable housing, it is not a voluntary contribution. By ordinance, EVERY new planned development must contribute to affordable housing through a monetary contribution or through providing affordable units on site.
- Myth: The developers will preserve the historic Hahn building.
- Reality: The development team has abandoned their plan to restore the Hahn Building.
- Myth: The project will add an "iconic" building to the Evanston skyline.
- Reality: A 35 story skyscraper that is similar to buildings in any number of major metropolitan cities cannot be considered iconic. It is simply a tall building that is out of context with the surrounding buildings.
- Myth: The project includes a complete renovation of Fountain Square.
- Reality: The developers do not have any ownership of Fountain Square and do not intend to include renovation of Fountain Square in their plans. What they have said is that they will consider a "meaningful" contribution to the redevelopment of Fountain Square. They have suggested a $1 million dollar contribution which would not go very far considering the City just last year spent in excess of $500,000 to simply get the fountains working again.
- Myth: The Fountain Square (Rothchild's) building will be torn down as part of the project.
- Reality: Absolutely false. There has been no deal made with the owner of this building.
- Myth: Re-zoning the block to D3 will minimize the allowances requested by the developer.
- Reality: Even if the block is zoned from D2 to D3, the height and density allowances are staggering. Current D3 zoning allows for a maximum of 85 feet in height -- after subtracting a bonus of 4 stories for parking. If the building is a mixed-use planned development (residential/retail) there is the possibility for an allowance for a total height of 220 feet. The developer is asking for more nearly DOUBLE the height. Current D3 zoning allows for a floor area ratio (FAR) of 4.5 for buildings and 8.21 for parking. The developer is asking for an FAR of 15.14. D3 allows for up to 96 units, where the developer is asking for 218 units. This is only the beginning of the exceptions.
- Myth: The developer is providing a public benefit of additional tax revenue.
- Reality: This is true of ANY development. Because the project is in a TIF district, the City is restricted in where revenue can be used and will not see measurable benefit until 2019. The use of TIF funds is restricted geographically, but also to a limited range of expenditure categories. While it can support increased capital costs (buying a new fire truck or high-rise equipment, for example), it can't be used to fund the salaries or pension fund contributions for any new fire personnel that may be needed.
- Myth: The proposed building will be LEED certified.
- Reality: While the developer has reluctantly promised "silver" LEED certification, there is no guarantee that the developer will ultimately realize this goal. Silver certification is the second lowest certification available -- a step above basic. Gold or Platinum certification would be more appropriate for the significant variances being requested.
- Myth: Downtown traffic will not be affected by the building.
- Reality: Of course traffic will be affected to some degree. The question is whether a quality and independent traffic analysis has been performed. Cars and trucks will need to enter and exit the building from a one-way street, causing additional congestion while some circle the block. Because the developer is only building two loading berths (instead of the required five), there is the potential for delivery trucks to be backed up on Orrington while waiting for an available berth.
- Myth: The developer has adequately addressed the wind issue.
- Reality: Absolutely false. While the developer has said they have had talks with a company in Canada, they have yet to present any viable independent study that will show the effects of wind from such a structure. As anyone who walks the area today knows, Sherman Plaza created a significant increase in wind making pedestrian travel unpleasant at times.
- Myth: Development is necessary for Evanston to survive.
- Reality: We absolutely agree. However, we believe that the development needs to be done responsibly and in context with the needs of EVERYONE in the City. There needs to be balance between residential, office and retail uses in the downtown. Too much of any of these components is in conflict with good planning principles.
- Myth: The Plan Commission overwhelmingly approved the proposal.
- Reality: The Commission narrowly approved the proposal by a vote of 4-3. The three commissioners who vehemently opposed the project exercised their right to publish their own "findings of fact" that will go to Planning and Development in early 2008.
- Myth: My voice doesn't count as a decision has been made.
- Reality: WRONG. The elected members of the City Council work for you. They have an obligation to hear all comments about this development. We would urge you to take a moment and call or email your alderman expressing your opposition to the current proposal. Contact information can be found here.
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