Whose downtown is it? Mayors wary transit board will control development near stations

A good-faith effort to increase housing and retail near bus and train stations? Or overreach by a non-elected board to control downtown economic development?

There’s not much middle ground over a provision buried in House Bill 3438, which seeks to create a new Northern Illinois Transit Authority overseeing Metra, Pace and the CTA, and offset a $771 million shortfall in 2026.

The provision states that NITA “shall have power to acquire by purchase (and) condemnation” any property within half a mile of a train or bus station for the purpose of transit-supportive development, such as housing or retail.

A number of suburban leaders call the plan appalling.

“It would be catastrophic to a lot of people,” Libertyville Mayor Donna Johnson said.

Libertyville’s Metra station is next to its downtown, which offers a mix of popular restaurants and shops, she explained.

“Egg Harbor’s within a half mile radius. The Board Room (restaurant) is within a half mile radius. There are residences that young people have just bought (by the train station). All of that is fair game,” Johnson said.

Cary Mayor Mark Kownick contends “it would be detrimental to local control, something we fight for every day.”

“We as mayors take our roles and our communities very seriously. We would hate for some board that is made up of appointed people to come in and say: ‘We want do this. We want to take this building out and add more housing there.’”

But “this bill would not usurp a community’s land use authority,” said Audrey Wennink, senior director at the Metropolitan Planning Council, which supports the legislation.

Wennink cited an excerpt stating it “does not exempt the board of trustees of any transit district from complying with land use regulations applicable to the property involved in a transit-supportive development.”

Rather it would enable the CTA, for example, to build a store next to a station and lease it, she explained.

“We think there’s a lot of really great stuff in here,” Wennink said.

That includes creating a state database of property owned by transit agencies, sidewalk requirements with new construction, and the potential for increased ridership and revenues, she said.

Johnson, an attorney, said “in the context of legalese there are always these counter arguments that appear to be safety nets, but are they really? If you don’t plan to implement a taking and you don’t plan to use it — it shouldn’t be there.”

Romeoville Mayor John Noak noted that already “most of the communities around Chicagoland firmly embrace transit-oriented development. It’s been a growing trend for a number of years. Private industry also embraces it.”

Cary is currently working with the private sector on incoming restaurants and a residential project.

“We’re wondering, why isn’t transit staying in its own lane?” Kownick asked.

State Sen. Ram Villivalam, who spearheaded the transit legislation, explained it “builds upon discussions from riders, stakeholders and advocates to ensure that transit is accessible for all.

“Streamlined transit-oriented development helps secure housing and commercial development near public transit — affording residents a better quality of life and access to a robust and integrated public transit system,” the Chicago Democrat said.

The legislation would prohibit minimum parking restrictions on new transit-related development, another red flag for local officials.

Wennink said the provision seeks more flexibility on parking requirements, reflecting input from developers who have reported spaces being underused.

Senators passed Bill 3438 late on May 31, the final day of session, but it flatlined in the House.

Negotiations among lawmakers are continuing. Although there’s consensus on the need to prevent a transit crisis, proposed solutions such as a tax on many online deliveries are controversial.

The Metropolitan Mayor’s Caucus issued a statement last week objecting to being excluded from last-minute revisions to the bill and seeking a “seat at the table.”

“I strongly believe that this transit bill should be about funding reliable transit services; it should not make the transit authority a land development agency in communities throughout Cook and the Collar counties,” Hanover Park Mayor Rod Craig said.

“The impact to our local tax base and schools is unprecedented.”

The caucus will present its recommendations to lawmakers before the fall veto session.

Villivalam said, “as we continue to work to fix and fund public transit, local leaders and residents will continue to have a voice on these proposals.”