Public Watchdog.org

Parking Study A Good Start, But…

06.26.17

Ever since Park Ridge’s Uptown area was reborn a few years ago as a dining and drinking mecca, enough folks have complained about a lack of parking that it spurred the Park Ridge City Council to engage the firm of Gewalt Hamilton Associates, Inc. (“GHA”) to perform a parking study.

The Uptown Parking Study dated June 8, 2017 makes several noteworthy points, not the least of which is that “the Uptown area has a sufficient amount of parking” (Report, page 2) – even if any difficulty in finding parking is perceived by some residents as a shortage. GHA explains the perceived shortage as “a lack of balance in parking supply at primary locations or destinations” (Report, page 18).

Tell that to our local merchants, especially those who need parking to accommodate both their customers and their employees.

One potential problem identified by the consultants is that Uptown parkers have become used to free and cheap parking. Commuters can park all day in the 125-space Summit “lot” along the METRA tracks (from Euclid down past St. Paul of the Cross) for a mere $1.50, or in the 58-space Prairie Ave. lot for a mere $2.00. Based on an average of 21 work days per month, that’s a paltry $31.50 and $42.00 per month, respectively.

“Prime” commuter parking can be found in the 38-space triangle lot just west of the Uptown METRA station. Those permits cost $350 per 6 months, or $2.70/workday – a slight convenience premium based on its proximity to the METRA station.

Even the 12-hour meters on the south side of Summit between Prospect and Euclid are only $6 for 12 hours – although with the current meters you’ll have to suffer the inconvenience of feeding them 24 quarters.

The Council needs to face the basic fact that commuter parking, although a necessity for commuters, is an economic drain on Uptown: The parking spaces taken up by commuters from 7 a.m. to 7 p.m. produce no other direct or indirect parking revenue, or indirectly help generate sales tax revenue from parkers who presumably are purchasers of products or services.

Should commuters be charged more than $1.50 or $2.00 per day? Given the perceived shortage of Uptown parking – and the 10-12 hour occupancy of spaces – just the basic concept of supply and demand would dictate “yes.” And based on the Summit meters, the appropriate amount would appear to be at least $6 per day.

Another noteworthy conclusion is that “[a]t this point GHA does not recommend a parking garage be constructed anywhere within the Uptown study area” (Report, page 19), either on the City lot at Summit and Euclid or on the Park Ridge Library lot. GHA believes such a garage would cost too much and be hard-pressed to pay for itself, at least if constructed and owned by the City.

That might be the case IF the current fee structure for commuter parking remains in place. At $2 per day for 252 workdays per year, a 125-space parking structure – that could basically replace the Summit 125-space Summit lot – would generate $63,000 per year of revenue even with full occupancy. At that rate, paying off a $2 million parking structure would take 32 years without even factoring in any debt service or maintenance!

Maybe that’s why we haven’t heard about any private developer who is chomping at the bit to build a parking deck.

Instead of a parking deck, GHA suggests that the City “repurpose” 20 spaces in the Library lot and treat them the same as the triangle lot parking, with 6-month permits.

Because the Library closes at 5:00 p.m. on Fridays, Saturdays and Sundays, its 151 spaces now become available for patrons of the Pickwick Theater and the other Uptown businesses on what would appear to be their 3 busiest evenings.

The Summit lot spaces, serving primarily commuters Monday through Friday, also tend to become available by 5:00 p.m. most week nights.

Although we tend to agree with GHA’s findings that there is not a true “shortage” of parking in the Uptown area, their study seems to equate a $1.50/day parking space down by St. Paul of the Cross with a $1.50/day space at Euclid. That might be the case for an all-day commuter, but we doubt that somebody looking to buy a box of Fannie May or a Hallmark birthday card would agree. And providing 8-10 hour parking for employees of Uptown businesses is a problem the GHA report appears to have given short shrift.

At the end of the day, however, it looks like the City Council and Uptown businesses will need to find more innovative ways of balancing commuter and customer parking if Uptown is going to continue to thrive and grow as a shopping and entertainment destination for locals and visitors alike.

The GHA parking study is a good start, but it’s nowhere close to the final word.

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Council Right To Opt-Out Of Crook County Minimum Wage Hike

06.09.17

Kudos to newly-minted 3d Ward Ald. Gail Wilkening for some recent spot-on observations about the City of Park Ridge opting out of Crook County’s graduated minimum wage increase from Illinois’ current $8.25/hour ($1/hour above the federal version) to $13/hour by July 2020.

“The market will decide what we need to pay people,” she opined, adding: “Anything Cook County wants, I usually don’t want.”

“Amen!” to both sentiments.

Don’t get us wrong: A minimum wage is a good thing to the extent it reduces the opportunities for outright worker exploitation, especially of the lower-wage workers whom it tends to affect most strongly. On the other hand, it’s an arbitrary, non-market based number that is much more of a temporary palliative than a cure for the underlying problem of lower wages for lower-skilled (or lower-risk) work.

Notwithstanding some hyperbolic claims by proponents, the minimum wage was not designed to enable the minimum-wage worker to raise a family of four, or to become a homeowner instead of a renter. It was designed to provide a wage above a welfare-level subsistence for the person earning it and perhaps one “dependent” – back in that day, often/usually a stay-at-home wife.

Not surprisingly, considering that this initiative was produced by the head-scratchers comprising the Crook County Board, that $13/hour, 2020 target rate would provide a minimum-wage employee working 40 hours per week for 50 weeks a year with $26,000 – or roughly the poverty threshold for a family of four in today’s dollars, without taking into account any inflation over the next 3 years before that full $13 wage is achieved.

Three nights ago (June 5) the Council voted unanimously in favor of opting out of this latest Crook County attempt at selling activity as achievement. Under City procedures, however, a second vote is needed to pass the opt-out ordinance, which will be taken at the Council’s June 19 meeting.

Although last Monday night’s vote was unanimous, Alds. John Moran (1st) and Marc Mazzuca (6th) explained their votes, in part, by arguing that a minimum wage standard is best left to the state or federal government.

Exactly right.

Crook County’s intrusion into minimum wage policy reminds us of Evanston’s 1985 enactment of an ordinance declaring Evanston a “nuclear-free zone,” ostensibly to prohibit Northwestern University professors from conducting research that might be used in the development of nuclear weapons. The ordinance was unenforceable, but that’s Evanston for you.

Should our City Council complete its opt-out at its June 19th meeting, it will be interesting to see what effect, if any, that will have on Park Ridge’s economy. Given Park Ridge’s borders with Chicago and Des Plaines, one of the suburbs that has chosen not to opt-out of Crook County’s latest sideshow. Will Park Ridge suddenly become a haven for small businesses, or for cheaper goods/services, because of a lower wage for low-end workers?

We doubt it.

But we think the opt-out is a win for folks who are tired of further intrusions from a unit of local government that has been mismanaged for decades and shows no signs of improving.

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Time For City Council To Consider Population Issues

06.02.17

How many residents should Park Ridge have?

We don’t know.

But the recent proposed 34-townhouse development for the Mr. K’s property has caused us to once again consider that question. And we think the Park Ridge City Council should do likewise – sooner rather than later, given how regularly the issue pops up, directly and indirectly, in the context of re-zoning or zoning variances for new developments.

New 3d Ward Ald. Gail Wilkening apparently is thinking about this. So are two of Park Ridge’s zoning and land use mavens, Pat Livensparger and Missy Langan.

All of them cited one of the most significant reasons why the size – and demographics – of Park Ridge’s population is important: More school-aged children mean more students receiving expensive Park Ridge-Niles School District 64 and Maine Twp. High School District 207 educations that will end up being paid primarily by the majority of taxpayers whose kids aren’t getting those expensive public educations, including some of whom are also paying out-of-pocket for private/parochial educations.

That situation already is producing some problematic responses.

From talking to a few local RE brokers, we’re hearing that empty nesters are downsizing sooner than they used to, or are moving out of Park Ridge entirely and heading to lower-taxed communities. And in most instances, the homes they are moving out of are being purchased by young families with multiple school-aged kids – and the prospect of more on the way.

The math is simple, albeit a bit rough because of all the variables that need to be taken into consideration. So to make it a bit easier, we’ll use a residence with a $15,000 RE tax bill as our example.

Almost $6,000 of that $15,000 tax bill goes to D-64, while D-207 gets around $5,000. The City of Park Ridge gets a meager $1,700 and the Park District even less.

So with D-64 per-pupil costs closing in on – if not already at – $16,000, our sample residence creates a $10,000 deficit  if only one kid from that residence attends a D-64 school. If two attend that deficit grows to $26,000 and likely crests at $42,000 for those homes where three kids are in grades K-8.

Which means that it takes 7 empty nests being taxed at that same $15,000 rate to subsidize the educational costs of just that one 3-student residence.

Or looking at it another way: If each of D-64’s roughly 4,500 kids were dispersed as tax-optimally as possible, each of them would reside in one of 4,500 individual homes, each of which would be paying $6,000 in taxes to D-64 while drawing out $16,000 in education, producing $10,000-per-home deficits totaling $45 MILLION overall. And that $45 MILLION deficit would have to be absorbed by the other 9,500 of the roughly 14,000 Park Ridge residences, at an average cost of roughly $4,700 per residence per year.

Ouch!

Yes, we know: These calculations aren’t adjusted for variables like the contributions of commercial taxpayers, or the fact that D-64 also takes in some areas outside of Park Ridge proper, etc. That’s why we labeled them “rough.” But these calculations also aren’t adjusted to reflect the reality – as we understand it – that more Park Ridge residences have RE bills below $15,000 than above; and that the students are not distributed in that tax-optimal manner.

Meanwhile, according to the “Illinois-At-A-Glance Report Card” for the 2015-16 school year, the D-64 per-pupil cost of $15,613 was $2,600 more than Glenview D-34 ($13,013); $5,000 more than Mt. Prospect D-57 ($10,663); $3,000 more than Arlington Hts. D-25 ($12,610); $5,000 more than Western Springs D-101 ($10,602); and $800 more than Wilmette D-39 ($14,804).

And according to that same source, the average D-64 teacher salary (“for teachers over the past 5 years… calculated by using the sum of all teachers’ salaries divided by the number of FTE teachers.”) was $85,970, while Glenview D-34’s was $61,207; Mt. Prospect D-57’s was $57,996; Arlington Hts. D-25 was $72,962; Western Springs D-101’s was $60,417; and Wilmette D-39’s was $76,425.

Needless to say, D-64’s average teacher salary accounts for a significant part of D-64’s higher costs.

Hence our, and many of our readers’, concern when facially-legitimate third-party ratings, rankings or other evaluations show our schools performing below many of its competitors.

It’s one thing to pay less and get less, but quite another to pay more and get less.

That’s why we think it’s time for the City Council to start a public debate about the further proliferation of multi-family residential, especially through up-zoning and variances, that could – because of its impact on our schools – adversely affect the value of Park Ridge property in ways that have the potential for becoming more significant than flooding and jet noise now are.

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