Thursday, October 28, 2004

ANDERSONVILLE STUDY EXAMINES CHAINS' IMPACT

By Gary Barlow

Staff writer

A study released Oct. 20 shows chain stores and large condominium developments not only threaten local businesses but could severely hurt the local economy in Andersonville, bring lower-paying jobs and lead to a loss of revenues for the City of Chicago.

The study compared the economic impact of 10 local businesses in Andersonville to 10 chain stores in the same industries, finding that the local firms generate 70-percent more dollars for the Chicago economy than chain stores.

The report, by Civic Economics, a consulting firm based in Chicago and Austin, Texas, was commissioned by the Andersonville Development Corporation and supported by the Andersonville Chamber of Commerce.

"For every $100 in consumer spending with chain firms, $43 will remain in the local economy; if that same spending occurs with a locally owned firm, that value jumps by 70 percent, to $73," the study found.

Local businesses in Andersonville, the study said, tend to spend more of their revenues on labor and purchase services and goods from other local businesses at much higher rates than the chains. In addition, profits from locally owned businesses stay in Chicago and the local firms contribute more money to local charities and fundraising efforts, the report said.

The study concluded that the locally owned Andersonville businesses generate a local economic impact of $179 per square foot, compared to $105 per square foot generated by the chain stores.

"That means 70-percent more money circulating in the local economy, which may mean 70-percent more home improvement, 70 percent more in the collection plate and 70 percent more in taxable transactions to fund city services," the study said.

The North Side neighborhood is home to a large GLBT population and business community. Among the 10 local Andersonville businesses studied by Civic Economics were Women and Children First, Star Gaze, The Chicago Aquarium and Pond Company and The Joel Hall Dancers and Center.

The community is also noted for its Swedish roots and small-scale, pedestrian-friendly business district along Clark Street.

"The charm of the street is due to its scale, architecture, diverse and multicultural mix of retail businesses, restaurants and bars, its safety and the tireless devotion of its stakeholders in protecting the street," Ald. Mary Ann Smith (48th) said in a recent letter to residents.

But, Smith noted, developers have begun to inquire about properties along Clark Street. Those developers, the study noted, offer above-market prices, drawn by the business vitality of the street and the purchasing power of the surrounding population. To stave off such purchases and subsequent teardowns that would replace existing buildings with taller condominium and chain store retail complexes, Smith has pushed legislation in the City Council to limit the height of new development on the portion of Clark Street in her ward.

That action, she acknowledged, is a stopgap "to preserve the status quo while the community decides what our permanent zoning ought to be."

With the release of the study, ADC officials called for comprehensive action by city and state lawmakers to preserve Andersonville's locally owned businesses.

"Locally owned businesses have been the key to Andersonville's success from its beginning as a small Swedish enclave," said attorney Jill Metz, president of ADC. "The study provides hard economic data to support our feeling that these businesses are a vital resource and must be protected."

New zoning regulations that take effect Nov. 1 restrict drive-through businesses on Clark Street in Andersonville and preserve the existing footpoints of stores.