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The Metropolis Principles for Livable Communities

Why is the jobs-housing-transportation issue important for business?

Employers and employees in the Chicago region are experiencing a frustrating combination of circumstances that, if left unchecked, threaten not only the region’s economic productivity, but also its attractiveness as a world-class place to live and work.

The issue is simple to describe. Many job-rich suburban communities do not have enough housing that is affordable, while other communities that are home to large pools of workers do not have enough jobs. The imbalance could be reduced if public rail and bus lines were able to transport workers quickly and economically to and from their jobs. Unfortunately, the distances between affordable housing and jobs are growing, and rail/bus transportation alternatives are not viable given the travel times involved.

The impact of the jobs-housing imbalance is already being felt throughout the Chicago metropolitan region. Suburban employers are having difficulty finding people to work in their facilities. Many of their current employees have lengthy commutes which affect their on-the-job productivity and which create family problems related to time away from home. Workers are leaving for work earlier than ever and getting home later and later. One sign of the times: virtually all our local television stations now have a 5:00 AM newscast, something that would have been unheard of twenty years ago.

How can the imbalance between housing and jobs be rectified? By positive action in both the public and private sector. Municipalities and other governing bodies can modify local zoning and building codes to allow for mixed-income and higher density housing developments to be built near employment centers. State and federal officials can encourage local flexibility and help by improving housing and tax policies that influence growth and development patterns. The private sector can play a key role as well both on its own and through collaboration with others.

Leadership, in all cases, is required. The Commercial Club of Chicago endorsed the Chicago Metropolis 2020 report that called for “a new social compact”. Chicago Metropolis 2020 with the help of a group of Club members and business leaders drafted the compact, calling it The Metropolis Principles for Livable Communities. This working group will reach out to individual corporate leaders for endorsement of the principles. In addition to the commitment by The Commercial Club, Chicago Metropolis 2020 will work with civic, foundation and faith-based organizations, and with municipal government leaders to promote and implement the principles.

What do the Metropolis Principles Say?

The Metropolis Principles for Livable Communities

Preamble

We employ people who live and work in the Chicago metropolitan region. We are finding it harder and harder to find, attract and keep quality employees. Many of our employees are finding their commutes to and from work are taking more time, are adding more stress to their lives, and are affecting their work.

We are concerned about the growing mismatch between job growth and affordable housing. We feel that to keep our region economically viable, we must actively encourage communities to provide a variety of housing for all people who live and work in the community. We must also encourage the same communities to provide viable transportation alternatives for working people. To these ends, we endorse the following principles:

Metropolis Principles

In making decisions relating to the expansion of an existing facility or the location of new facility in a given community, we will give substantial weight to:

  • Whether a community has zoning, building and land use policies that allow the construction of housing which is affordable to working people; and
  • Whether a community is served by reliable and accessible mass transit, especially mass transit near work sites.
How would the Metropolis Principles work in practice? The Metropolis Principles would become part of a company’s normal decision-making process that takes place when it creates or expands a facility. Typically, companies look at a number of factors in making an expansion decision:
  • Location: Is the facility near customers, suppliers?
  • Cost: What will land and construction cost?
  • Employees: Is a stable, educated workforce available?
  • The Quality of Education: Are schools in the area the kind of schools that will attract employees with children?
  • The Quality of Life: Do surrounding areas have the kind of recreational, cultural, and other amenities that are attractive to employees?
  • Incentives/taxes: What kinds of financial incentives local governing bodies offer? How high are local state taxes?

Now two additional factors will be added to the expansion decision checklist of a company that adopts The Metropolis Principles:

  • Does the target community, the community where the proposed new facility or the facility to be expanded is located, have zoning, building and land use codes which permit the construction of housing which is affordable to working people?
  • Does the community have commuter rail and bus lines near work sites, lines which operate frequently enough to be used by employees,?
Communities that have or encourage the construction of affordable housing and that have available mass transit alternatives for working people will have an advantage over those that do not. In the highly competitive world of economic development, this advantage may make the difference between success or failure in terms of attracting new employers or keeping existing employers.

What is the “return on investment” if my company signs on to The Metropolis Principles?

A handful of direct and indirect benefits are possible to companies that adopt The Metropolis Principles and incorporate them into their operations and organizational philosophy:

1. Stable Work Force

A company that abides by The Metropolis Principles will make location decisions that place facilities in communities with sufficient housing and transportation options for employees. This should reduce employee job dissatisfaction because the negative impact from long commutes, high travel costs, and lost personal/family time will be minimized. Employers should experience less absenteeism, greater on-time rates, and lower employee turnover.

2. Concentration on Productivity

The Texas Transportation Institute recently estimated that drivers in the Chicago metropolitan region lose 44 hours per year due to congestion—the equivalent of a full workweek. (1999 Annual Mobility Report). Companies that abide by The Metropolis Principles make a commitment to their employees to minimize the stress associated with housing and transportation concerns. The reduction in employee stress can be converted into increased productivity because employees are no longer balancing issues of long commutes, reduced personal time, and are better able to concentrate on work.

3. Improved Air Quality

A company that makes location decisions based on a community’s (or region) efficient public transportation systems promotes clean air and eases traffic congestion. A company may see reduced health insurance costs and employee sick days because cleaner air can help lower workforce illnesses. By reducing congestion, we improve air quality, reduce stress, decrease healthcare costs, and help increase productivity.

4. Stronger Regional Economy

The Metropolis Principles have the potential to help ensure a sustained and stronger Chicago regional economy because of the combined benefits from a stable workforce, healthier environment, and greater productivity. Companies that abide by the Principles and succeed in securing diverse housing and transportation options in communities are also helping enrich the region’s quality of life. The chain reaction of direct benefits from a corporate commitment to The Metropolis Principles, including focused employees, a stable workforce, stronger local communities, and a healthy environment combine to produce a Chicago region that is world class and sustainable.

What should my company do to carry out The Metropolis Principles?

1. Sign The Metropolis Principles for Livable Communities.

Demonstrate to your employees, your host communities, your fellow business leaders, and your stockholders that you are taking a proactive role in keeping the Chicago region economically competitive.

2. Reach Out.

Reach out to the leaders of other businesses—your suppliers, subsidiaries, and friends—and convince them to sign The Metropolis Principles. The success of our efforts will be measured in more affordable housing and greater access to reliable transit. The more business leaders we have supporting housing and transit, the greater our likelihood of success.

3. Implement.

Implement the principles in your decision-making process. Consider the mix and quantity of housing in the municipality where you will be locating. Look at the transit and transportation system that will be moving your employees and products. Locate your facilities where the housing is affordable to your employees and the transit system can move people.

Chicago Metropolis 2020 is prepared to be a leading advocate for a region that has affordable housing and an accessible and reliable transit system. We can broker collaborations between you and key partners at all levels of government and community so that the goals of The Metropolis Principles can be realized.