REPORT

to the
CHICAGO PLAN COMMISSION
from the
DEPARTMENT OF PLANNING AND DEVELOPMENT
OCTOBER 19, 2017

APPLICANT: DEPARTMENT OF PLANNING AND DEVELOPMENT

LOCATION: AN AREA GENERALLY BOUNDED BY OGDEN AVENUE TO

THE WEST; HUBBARD STREET TO THE NORTH; HALSTED
STREET TO THE EAST; AND CARROLL AVENUE TO THE
SOUTH

FOR APPROVAL: 1. REPEAL OF PORTION OF PMD 4; REZONE THE

FORMER PMD PROPERTY TO ITS PRIOR ZONING
DISTRICT CLASSIFICATION OR EQUIVALENT; CREATE
A NEW KINZIE CORRIDOR OVERLAY DISTRICT
2. PROPOSED MAP AMENDMENTS WITHIN THE KINZIE
INDUSTRIAL CORRIDOR

INTRO DATE: OCTOBER 11, 2017

CHANGE IN OR REPEAL OF PLANNED MANUFACTURING DISTRICT

Pursuant to the provisions of the Chicago Zoning Ordinance, Title 17 of the Municipal
Code of Chicago, the Department of Planning and Development (DPD) hereby submits
for your review this report and recommendation on a proposal to repeal a portion of
Planned Manufacturing District (PMD) 4; rezone the former PMD property to its prior
zoning district classifications or, if any such zoning district classification no longer exists,
then to the equivalent zoning district classification as provided in Section 17-1-1406 of
the Chicago Zoning Ordinance; and create a new Kinzie Corridor Overlay District and
regulations.

Section 17-13-0711 of the Chicago Zoning Ordinance gives the Plan Commission
responsibility for monitoring the effectiveness of PMDs in achieving the purposes set
forth in Section 17-6-0401-A. The Plan Commission is required to recommend changes
in or repeal of PMDs to the City Council if it determines that such purposes are not
being met. Prior to making this determination, the Zoning Ordinance requires DPD to
hold at least one public meeting in the ward in which the subject PMD is located. This
meeting was duly held on October 10, 2017 in Ward 27. The Zoning Ordinance also
requires the Plan Commission to hold a formal public hearing on any proposal to repeal
or amend a PMD, which is the purpose of todays hearing.

MAP AMENDMENT WITHIN INDUSTRIAL CORRIDOR

In addition to the Plan Commission review requirements under Section 17-13-0711 for

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changes in or repeal of PMDs, Section 17-13-0402 of the Chicago Zoning Ordinance
requires the Plan Commission to hold a public hearing on any request to rezone land
within an industrial corridor from M, PMD, POS or T zoning district classifications to any
other zoning district classification. This proposal involves rezonings within the Kinzie
Industrial Corridor, from PMD to M (manufacturing) zoning district classifications (which
does not trigger review under Section 17-13-0402), but also from PMD to C
(commercial) districts (which does trigger Plan Commission review). As a result, this
report and recommendation also addresses the proposed rezonings from PMD to those
non-manufacturing zoning districts.

The Application was introduced to the Chicago City Council on October 11, 2017.
Notice of this public hearing was published in the Chicago Sun-Times on October 4,
2017.

PROJECT SUMMARY
The Applicant, pursuant to the goals of the Fulton Market Innovation District (FMID)
Plan approved by the Plan Commission on July 17, 2014, proposes to repeal a portion
of PMD 4; to rezone the former PMD property to its pre-PMD zoning district
classification (or the equivalent current district if the original district no longer exists);
and to create a new Kinzie Corridor Overlay District. The FMID plan identifies a vision to
preserve existing jobs while accommodating private sector investments that reinforce
the areas expanding role as an innovation-driven employment center, and makes a
recommendation to refine existing zoning to accommodate this vision and existing and
projected market demands.

Planned Manufacturing District 4 was designated in 1998 and is approximately 632

acres in size, located within the Kinzie Industrial Corridor. The portion of PMD 4
proposed to be repealed is located east of Ogden Avenue, and is approximately 63
acres in size, or just 10% of the total PMD 4 area. All parcels currently zoned PMD 4
east of Ogden Avenue would be reverted to the districts in place prior to the PMD
zoning, or the closest comparable districts, including C1-5, C2-2, M2-1 and M2-3, as
shown in the map below. The remainder of PMD 4 west of Ogden Avenue would remain
in place.

Supplementing the reverted base districts, the Kinzie Corridor Overlay District would be
designated over this same area and would prohibit residential uses in any underlying
district within the Overlay District. The Overlay District would also limit future, privately-
sought zoning changes to Downtown Service (DS) and Downtown Mixed-Use (DX)
districts.

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PROPOSED ZONING MAP:

RECOMMENDATION:

Planned Manufacturing District Repeal

Section 17-13-0711 of the Chicago Zoning Ordinance states that the Plan Commission
is responsible for monitoring the effectiveness of planned manufacturing districts in
achieving the purposes set forth in Section 17-6-0401-A. The Plan Commission must
recommend to the City Council changes in or repeal of a designated district if, after the
required hearings, it finds the purposes are not being met. Such factors and an analysis
for that portion of PMD 4 east of Ogden Avenue follow:

1. Foster the Citys industrial base:

Between 1990 and 2016, land uses within that portion of PMD 4 east of Ogden
Avenue have shifted away from heavy industry. Manufacturing land uses
decreased from 57% to 25% of PMD land area, commercial uses increased from
5% to 16% of PMD land area, and transportation and utility uses increased from
8% to 30% of land area.

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 Similarly, between 2002 and 2014, the number of manufacturing jobs and moving
and storage of goods and materials jobs in the same area declined, as shown in
the table below. However, FIRE (Finance, Insurance and Real Estate), Health &
Education jobs increased 1,450%, and Information, Technology & Management
jobs increased 376%.

As shown in the above data, heavier industrial and manufacturing land uses and
jobs have shifted away from this portion of PMD 4. In addition, modern
manufacturing, office and commercial uses and jobs that are becoming more
prevalent cannot be easily accommodated in the existing PMD construct.
Therefore, that portion of PMD 4 east of Ogden Avenue is no longer fostering the
industrial base of the City, as traditional industrial and manufacturing uses are
shifting away, and modern industrial, office and commercial uses are moving in.

2. Maintain the Citys diversified economy for the general welfare of its citizens:

DPD has researched thriving modern business districts in Seattle, WA, Boston,
MA and Pittsburgh, PA and found that these business districts contain a mix of
land uses that contribute to new jobs in a diverse economy, including office
space, modern manufacturing, support services, and housing. The existing
PMDs dont allow a similarly wide variety of uses that make the example modern
business districts successful. Repealing the PMDs would in fact further diversify
the Citys economy by allowing a wider range of uses within this portion of the
Kinzie Industrial Corridor area to transition towards a more modern and
innovative business district.

3. Strengthen existing manufacturing areas that are suitable in size, location, and
character, and which the City Council deems may benefit from designation as a
PMD:

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 As shown in the earlier data, heavier industrial and manufacturing land uses and
jobs have moved away from the portion of PMD 4 east of Ogden Avenue.
Further, looking more broadly at the Kinzie Industrial Corridor east of Ogden
Avenue and immediately south of the proposed PMD repeal area, the trend of
shifting away from traditional industrial uses is also clearly visible. Since 2013,
over 30 wholesale food businesses have moved away from the area larger, as
listed below:
License at No active
Wholesale Food Establishment Address NOTES
new location license

AMITY PACKING CO INC 210 N GREEN ST X 4220 S Kildare Ave

ASPEN FOODS 1223 W FULTON MARKET X
BRIDGFORD MARKETING 170 N GREEN ST X Moving to 1415 W 44th St
COLUMBUS MEAT MARKET, INC. 906 W RANDOLPH ST X
CONSOLIDATED PRODUCE INC 856 W FULTON MARKET X
CRISTINA FOODS INC 1056 W LAKE ST X 4555 S RACINE AVE
DENNIS WHOLESALE FOODS 1215 W FULTON ST X 575 N SACRAMENTO BLVD
ECONOMY PACKING CO 932-940 W FULTON MARKET Relocating to 4501 W ANN LURIE PL
EL CUBANO WHLSE MEAT INC 926 W FULTON MARKET X 4630 W 53RD ST
G M L TRADING 1146 W RANDOLPH ST X License expired 05/15/2014
HOT POTATO 1132 W RANDOLPH ST X License expired 05/15/2014
INTERNAT'L SEAFOODS OF CHGO IN 1135 W LAKE ST X
JOHN R. MORREALE, INC. 216 N PEORIA ST X
JOSEPH G STEC WHLSE MEATS INC 230 N PEORIA ST X
KINGDOM FARMS 370 N CARPENTER ST X 2300 W LAKE ST
KALAS IMPORTS, LTD 801 W RANDOLPH ST X 1318 W CERMAK RD
LATINO MEAT & PRODUCE INC 832 W FULTON MARKET X 3449 W 48TH PL
MARKET PRODUCE 951 W RANDOLPH ST X 2522 W MADISON ST
MEADOWBROOK EGG CO. INC. 1100 W FULTON MARKET X 2455 S DAMEN AVE
MOZERKA MEATS INC. 856 W FULTON MARKET X License expired 05/15/2014
N & G PRODUCE 902 W RANDOLPH ST X License expired 05/15/2014
OLD FASHIONED MEAT CO. 920 W FULTON MARKET X 5275 S ARCHER AVE
QUALITY FOOD PRODUCTS INC 912 W RANDOLPH ST X
RICH SCHAEFFER WHOLESALE MEAT 230 N PEORIA ST X
SAM'S MEAT COMPANY 320 N CARPENTER ST X
SHIN PROVISION INC 1010 W RANDOLPH ST X 1900 N AUSTIN AVE
SHORE EGG CO 1135 W FULTON MARKET X License expired 05/15/2014
SIAM MEATS, INC. 905 W FULTON MARKET X 1847 W CARROLL ST
STAMPER CHEESE COMPANY, INC. 834 W FULTON MARKET X 2214 W HUBBARD ST
TAKI'S ROAYAL FOODS, INC. 172 N ADA ST X Relocating to 4235 W Anna Lurie Pl
THE CHEESE PEOPLE INC. 834 W FULTON MARKET X License expired 10/15/2014
WICHITA PACKING 1315 W FULTON ST X 340 N OAKLEY BLVD

Source: BACP Business License Data from 2013, 2015 & 2017 & DPD Program Data

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 However, companies such as Google and McDonalds have moved into the area
or are planning to move into the area, as well as a number of new hotels,
restaurants and retailers. This shift in business type from traditional industrial to
office and commercial has changed the character of the Kinzie Industrial Corridor
east of Ogden Avenue, including the portion of PMD 4 that is proposed to be
repealed. As shown in the above chart, a number of wholesale businesses have
found that other industrial areas of the City provide better sized parcels, locations
and industrial character than the portion of PMD 4 east of Ogden Avenue for their
purposes, while office and commercial uses prefer the Fulton Market/West Loop
location and character. The changes in land uses, jobs and businesses have left
that portion of PMD 4 east of Ogden Avenue inappropriate in size, location and
character for continued designation as a Planned Manufacturing District. The
remainder of PMD 4 west of Ogden Avenue would remain in place.

4. Encourage industrial investment, modernization, and expansion by providing for

stable and predictable industrial environments:

Again, looking at the earlier data on the change in land uses and jobs in the
portion of PMD 4 east of Ogden Avenue, the area no longer provides a stable or
predictable industrial environment. More traditional industrial and manufacturing
businesses have found that investing, modernizing and expanding their
businesses is more easily available in other, more appropriate industrial areas of
the City.

5. Help plan and direct programs and initiatives to promote growth and
development of the Citys industrial employment base:

The proposed Kinzie Corridor Overlay District would make applicable the existing
Industrial Corridor System Fee, which is intended to mitigate the loss of industrial
space in certain industrial corridors. The fee would apply in the overlay district to
any project within an area that was zoned PMD before the repeal that requests a
further zoning change from a pre-PMD zoning district classification to an allowed
non-manufacturing district classification. The fee would then be used to fund
industrial-related infrastructure and utility improvements, environmental
remediation, acquisition of industrial property and rehabilitation of industrial
buildings. This new fee could generate millions of dollars of which 100% would
be allocated for industrial development in other parts of the City.

Therefore, repealing a portion of PMD 4 could strengthen PMDs in other parts of

the City by fostering and/or expanding industrial-related businesses, ensuring
that new or expanded businesses would get the best opportunity to thrive and
provide a range of job types, improving industrial-related infrastructure and
utilities to provide a stable industrial environment and be an initiative to promote
the growth and development in the industrial employment base across the City.

In conclusion, after reviewing the materials and analyzing the proposal with respect to

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the factors above, the Department of Planning and Development has concluded that the
portion of PMD 4 east of Ogden Avenue does not achieve the purposes set forth in Sec.
17-6-0401-A.

Map Amendments Within Industrial Corridors

Section 17-13-0400 of the Chicago Zoning Ordinance (Zoning map amendments within
industrial corridors) identifies two sets of criteria for review in making decisions on
proposed zoning map amendments within industrial corridors. One set of criteria asks
review bodies to consider whether a proposal will adversely affect the continued
industrial viability of the industrial corridor (Section 17-13-0403 A-G). The other set of
criteria asks review bodies to consider whether the proposed rezoning is in the best
interests of the public health, safety, and welfare, while also recognizing the rights of
individual property owners (Section 17-13-0308 A-E). An analysis of both sets of criteria
is set forth below.

First Set of Criteria: Continued Industrial Viability (Sec. 17-13-0403)

The Department of Planning and Development has concluded that the proposed zoning
map amendments will not adversely affect the continued industrial viability of the Kinzie
Industrial Corridor based on the following:

1. The size of the district:

Only 63 acres of the 831-acre Kinzie Industrial Corridor, or 7.6% of the corridor,
is proposed to be rezoned, from PMD 4 to C1-5, C2-2, M2-1 and M2-3 districts.
All of these districts are the closest comparable districts to those that were in

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 place prior to the PMD designation.

Of the 63 acres, only 1.7 acres, or 2.7% of the rezoned area, would be reverted
to the C1-5 and C2-2 districts. These proposed districts permit residential uses,
however, the proposed Kinzie Corridor Overlay District, included in the subject
ordinance, would prohibit residential uses in these districts. Existing industrial
and manufacturing uses would be able to continue.

2. The number of existing firms and employees that would be affected:

The proposal to repeal that portion of PMD 4 east of Ogden Avenue is consistent
with the trend of increasing FIRE, Health & Education jobs (increased 1,450%),
and Information, Technology & Management jobs (increased 376%). The
proposed rezoning would allow a broader variety of commercial uses, including
office uses, which would permit more varieties of jobs to move into the corridor.
Existing manufacturing uses could continue operation under the proposed
zoning.

3. Recent and planned public and private investments within the district:

The Fulton Market Innovation District plan provided the framework for area
infrastructure improvements, some of which have been completed. The
improvements address a variety of above- and below-grade public works needs
for both current and future companies. Streetscape improvements focusing on
pedestrian safety and loading operations have been initiated. For example, the
Chicago Department of Transportation (CDOT) has recently completed the
rebuilding of Kinzie Street, installed community identifiers along Fulton Market
and is currently improving pedestrian crossings in Fulton Market. In addition, the
Green and Pink Line Morgan St CTA station opened in 2012 and, further west, a
new Green Line CTA station is proposed for Damen Avenue.

4. The potential of the district to support additional industrial uses and increased
manufacturing employment:

As discussed above, the land use and jobs trends within the Kinzie Industrial
Corridor east of Ogden Avenue have shown more traditional industrial uses
moving to other industrial areas of the City, where there are opportunities to
expand. Due to its proximity to the central business district and high-density
residential neighborhoods, market demand for non-industrial uses in the area
east of Ogden Avenue has intensified and land values have increased
accordingly, despite the PMD status of the land. As a result, the land use and
employment types in the corridor are diversifying and expanding to include more
jobs in categories like Business Support Services and FIRE, Health & Education.
The area east of Ogden Avenue is no longer economical for investment in heavy
industry. The proposed rezoning would provide the opportunity to further diversify
the Citys economy by allowing a wider range of uses within this portion of the

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 Kinzie Industrial Corridor and transition towards a more modern business district.

5. The proportion of land in the district currently devoted to industrial uses:

Only 25% of the land within the PMD repeal area east of Ogden Avenue is used
for traditional manufacturing uses, a decrease from 57% in 1990.

6. The proportion of land in the district currently devoted to non-manufacturing

uses:

75% of the land within the PMD repeal area east of Ogden Avenue is devoted to
non-manufacturing uses, including 28% which is vacant.

7. The areas importance to the City as an industrial district:

Though that portion of the Kinzie Industrial Corridor east of Ogden Avenue is no
longer a traditional manufacturing or industrial center, the Fulton Market
Innovation District land use plan outlines opportunities to further diversify the
Citys economy by allowing a wider range of uses within this area and transition
towards a more modern business district and employment center.

In conclusion, after reviewing the materials and analyzing the proposal with respect to
the factors addressing the viability of the industrial corridor, the Department of Planning
and Development has concluded that the proposed zoning map amendments, as
contemplated in the Fulton Market Innovation District land use plan approved by the
Chicago Plan Commission on July 17, 2014, would not adversely affect the continued
industrial viability of the Kinzie Industrial Corridor. Rather, the proposed rezoning will
allow that portion of the corridor east of Ogden Avenue to thrive as a modern business
and jobs center.

Second Set of Criteria: General Criteria for Zoning Map Amendments (Sec. 17-13-0308)
The Department of Planning and Development has concluded that the proposed zoning
map amendments are in the best interests of the public health, safety, and general
welfare based on the following:

1. Whether the proposed zoning change is consistent with any plans for the area
that have been adopted by the Plan Commission or approved by City Council:

On July 17, 2014, the Plan Commission approved the Fulton Market Innovation
District Plan, a land use plan for 217 acres generally bounded by Hubbard Street,
Halsted Street, Randolph Street and Ogden Avenue that consists of a land use
map, general design guidelines, a suite of public investments, and
recommendations for preserving historic buildings and providing more food-
oriented programming. The proposed zoning changes in this Application were
outlined in one of the seven key actions identified in the plan that serve to guide
City policies and investment within the area, and are consistent with the plan.

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 2. Whether the proposed rezoning is appropriate because of significant changes in
the character of the area due to public facility capacity, other rezoning, or growth
and development trends:

As discussed in the above Planned Manufacturing District Repeal section of the

report, heavier industrial and manufacturing land uses and jobs have moved
away from this area of the Kinzie Industrial Corridor due to a number of factors,
including the proximity of the area to the downtown core, market pressure and
increasing land values. However, amending the zoning map to repeal that portion
of PMD 4 east of Ogden Avenue would allow a wider range of uses within the
area to transition towards a more modern business district.

3. Whether the proposed development is compatible with the character of the

surrounding area in terms of uses, density, and building scale:

The area surrounding the Kinzie Industrial Corridor is composed of a mix of

industrial, commercial and residential uses. DPD proposes to rezone that portion
of PMD 4 east of Ogden Avenue to the pre-PMD zoning district classifications,
and then to allow further zoning changes to Downtown zoning districts. This
change would allow a greater range of office and commercial uses, similar to
what is found immediately south of the rezoning area. No specific development
projects are under consideration here. Should private property owners or
developers request to rezone their properties in the future, they will have to go
through the full review and approval process.

4. Whether the proposed zoning classification is compatible with surrounding

zoning:

The proposed rezoning would repeal that portion of PMD 4 east of Ogden
Avenue to the zoning districts that were in place before the PMD was designated,
or the most comparable district for zoning districts no longer in the code,
including C1-5, C2-2, M2-1 and M2-3. These districts are similar to those found
in the neighborhood immediately to the north of the PMD repeal area, which is
zoned with a mix of residential, commercial and manufacturing districts. Also
similar, the area to the south of PMD repeal area is zoned with commercial,
manufacturing and downtown zoning districts.

Based on the foregoing, it is the recommendation of the Department of Planning and

Development that the Application to repeal and rezone that portion of PMD 4 east of
Ogden Avenue and to create a Kinzie Corridor Overlay District, be approved and that
the recommendation to the City Council Committee on Zoning, Landmarks, and Building
Standards be Passage Recommended.

Bureau of Zoning and Land Use, Department of Planning and Development.

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