1. A Guide For Locating Future Retail
Developments
Department of Urban Planning
UW-Milwaukee, APW 2011
Michael Slezak
Cal Stoffel
Jorian Giorno
Ryan Krzos
Joseph Wantoch
2. Problem
• Industrial sector is vital to Chicago economy
• Large retailers prefer industrial land
• Industrial zones vulnerable to R & C intrusion
• Aldermen significantly control rezoning process
• Need a policy to guide retail to appropriate locations
3. Industrial Value
• Still vital source of jobs
• Significant competitive advantages
• Workforce
• Transportation
• Research
• Multiplier effect- 2.1
“Manufacturing has the greatest
potential for ensuring our long-term
economic growth because it
represents our society’s most
dynamic intersection of science,
technology, research, innovations,
entrepreneurial spirit and human
talent”
-Chicago Manufacturing
Renaissance Council
Cook County Employment
Total Employed Average Annual
Wages
Retail
276,119 $29,598
Manufacturing
236,100 $68,722
4. Retail- Threat or Opportunity?
• Larger developments will have better funding
opportunities.
• There will be a decreased reliance on TIF's to fund
development.
• Projects requiring public investment will require
creative financing, i.e., third-party involvement
• Deteriorating physical conditions in low-income
areas will require financing from local
organizations.
5. Big Box retail is
formatting stores to
capture the urban
market, and Chicago
will see a significant
increase in this type
of development.
Save-A-Lot:
30 stores by 2015
Walmart:
Committed to
opening at least
21 stores by 2015
Specific numbers of targest
Retail Trends
6. National Urban Retail Trends
• Annual Urban Retail Spending $85 billion
• $76 million/$8 million retail dollars/sq mile
• Saturation of suburban markets
• Developer belief in urban market cycle
• Urban retail still heavily reliant on:
o Low rent
o Extended leasing schedules
o Large parcels
o Favorable project financing
o Suburban format & market models
• Industrial land favorable
8. Case Studies: Ideal Retail Practices
• Best practice "big box" retail is moving away from industrial
tracts of large area and toward dense, well-established
residential and commercial areas
• Typical characteristics:
o Mixed-use, multi-story
First floor retail, apartments/condos above
o TIF-financed parking structures
Reduced parking ratios
Suburban grocery ratio: 5 spaces per 1,000 sq ft
Safeway Vista: 2.9 spaces per 1,000 sq ft
12. Public Input- Cal
• Engaged Developing Communities Project (DCP)
• DCP currently is working on Visioning for Roseland
Neighborhood associated with proposed Red Line Extension
• Our goal was to present our recommendations for Retail
Development and receive feedback, while also assisting
their activities
• To do so we cycled participants through focus groups
including:
o a Retail-based Visual Preference Survey
o a Neighborhood Design Charrette
o a Discussion on Safety and Crime issues
o a Discussion on Transportation issues
• Results from our activities affirmed our recommendations
13. Recommendations: Parcel Level
Design
The City of Chicago should consider the following design
element features on the parcel level:
• Aesthetics
o Materials
o Facade appearance
o Roof design
o Glazing versus blank
walls
• Walkability and transit
connectivity
o Sidewalk connections
14. Recommendations: Parcel Level
Design
H Street Wal-Mart Proposal
Washington D.C.
• Parking requirements
and layout
• Mixed-Use
Developments
• Size Limits/ Retail
Caps
o Setbacks
15. Recommendations: Block Level Design
The City of Chicago should emphasize the use of block
level design features to:
• Reinforce pedestrian activity;
• Improve walkability;
• Improve transit;
• Improve safety;
• & reduce crime
{Each of these areas will help address critical challenges retail
developers have identified as barriers to entering underserved
markets}
16. Recommendations: Block Level Design
• Incoporate public space
• Promote sense of urban enclosure
• Continuous sidewalks & pedestrian connectivity
• Wayfinding signage- pedestrian & transit
• Use unifying elements
o paving, street furniture, lighting, & trees
• Orientation of transit stops {around places of interest
(retail)}
20. Current Conditions: Retail Policy- Ryan
• Zoning
o Commercial and Business Districts
Pedestrian Street
o Planned Developments
o Parking, Landscaping, Signs
• Incentives
o TIF
o Property Tax Incentives
o Enterprise Zones
o Grocery-Anchored Retail Loans
o City Owned Property/Negotiatied Sales
21. Recommendations: Policy Adjustment
• Leverage Retail
Development tools to
incentivise development to
more ideal locations.
• Grocery-Anchored Retail
Loan
o Restrict to Food Deserts
• TIFs, Property Tax
incentives
o Define higher priority
areas
• Enterprise Zone
o Expand
geographical
area
23. •Incorporating residential that aims to increase purchasing
power, income density, and pedestrian traffic.
Safety is important to developers and consumers.
Retail location analysis involves risk assessment. Prevention of loss
through the design of the surrounding environment increases the
attractiveness of development.