Link to full article on Crain's Chicago Business
Chicago keeps rolling the dice on mega-developers, with the result that vast tracts of prime, taxable land are tied up in stalled projects.
Lincoln Yards, The 78, and the Michael Reese site exemplify this failed strategy. Lincoln Yards, a $6 billion riverfront promise from Sterling Bay, has delivered just one building since 2018 — and Sterling Bay just announced that it is surrendering much of the land to its lender. The 78, a 62-acre would-be innovation district, remains a barren plot years after its unveiling. Michael Reese, a 48-acre Bronzeville parcel once eyed for Olympic glory, sits idle, mocking its redevelopment hype.
Although small Chicago developers are delivering mixed-use, multi-family housing as urban infill across the city, we keep awarding the mega-projects to single developers, only to tie up valuable real estate in stalled projects and leave communities in limbo. Meanwhile, Chicago Public Schools enrollment has plummeted 20% since 2010—down 80,000 students—as families flee to suburbs or red states like Texas and Florida, seeking space and affordability.
It is time to abandon the mega-developer gamble and embrace small developers. A form-based code would enable small developers to build incremental components of large developments, creating family-friendly density to keep families in the city.
The problem is scale. Mega-developments bet on one player to develop great expanses of land, but when financing falters or plans overreach, progress stalls—sometimes for decades. A form-based code flips this model, focusing on physical form over rigid zoning to break sites into smaller parcels—say, 5,000 to 20,000 square feet.
This opens the door for many small developers to step in, building parcel by parcel without the crushing capital demands of a $6 billion mega-plan. Pre-approved temcplates for courtyard blocks could streamline permitting, letting local builders deliver 3- to 6-story mixed-use buildings with minimal delay. Unlike the all-or-nothing approach, this incremental growth ensures steady progress.
Courtyard blocks in Europe
Better yet, a courtyard block code could make “Lincoln Courtyards” and beyond magnets for ordinary families. In perimeter blocks (aka “courtyard blocks”), mixed-use condominium buildings frame the outer edge of a city block. The buildings are built wall to wall, so that the building mass forms a perimeter–a “crust” — around the block, enclosing a lush courtyard for residential use. Courtyard blocks would be a novel solution for Chicago, but they have centuries of proven success in Europe’s most liveable, family-friendly cities, including Copenhagen, Prague, Paris, and Berlin.
The perennial success of the block form lies in balancing density with valuable amenities. The units are typically dual aspect, with windows facing street and courtyard and providing excellent light penetration and ventilation (no double-loaded corridors). With buildings going up 4-6 stories, courtyard blocks are dense: a block that sites 25 homes under a single-family zoning pattern could, under a courtyard form, site 50-100 family-sized homes (all with secure yard access) and 10-20 commercial units.
In contrast to the standard American apartment block, the courtyard block supplies residents with the aspirational “house with a yard” while maintaining the density, unit diversity, and commercial integration needed for affordable, walkable neighborhoods. Courtyard blocks are a simple and effective way to rapidly increase the supply of amenity-rich, family-oriented housing in the cities.
Critics might argue that the form-based approach scatters control and risks a patchwork mess. However, a well-crafted code ensures that buildings align, streets connect, and high-value public and private spaces emerge. The real risk lies in missing this opportunity to introduce a decentralized and resilient model of incremental growth, one that mirrors how Chicago’s best places—Logan Square, Pilsen—evolved: block by block, year by year, shaped by many hands.
Retention is the prize. Families are abandoning Chicago, draining our schools and tax base for suburban yards or red state tax savings. A 2022 Urban Institute study flagged housing costs and space as drivers of this exodus from blue state cities.
Courtyard blocks offer a solution to Chicago’s family flight problem: safe play spaces, community vibes, and bigger homes, all within reach of the 606 trail or the planned Dominick Park. Incentives like tax breaks for family-sized units, density bonuses for childcare, and a shared infrastructure fund could empower small developers to deliver. A community council could fine-tune the code, ensuring schools and parks stay front and center.
Mayor Brandon Johnson and the City Council should capitalize on Lincoln Yards’ stumble. Chicago’s mega-development obsession has left us with vacant lots and declining school enrollment. A form-based code, rooted in courtyard and perimeter designs, can unlock incremental growth that is practical and family friendly—keeping our families from bolting to Naperville or Nashville.
Under a courtyard block code, the industrial relic of Lincoln Yards becomes Lincoln Courtyards, a model of family-friendly density that may transform the way Americans perceive multi-family living in Chicago.
Alicia Pederson is vice president of the Greater Rockwell Organization and is a member of local urbanist groups Abundant Housing Illinois and Strong Towns Chicago.