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DRAFT— MAY 2014

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Inside cover

DRAFT—For Review May 2014

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Chicago’sFultonMarketareaisaplaceinwhichtraditionalandinnovative

businesses coexist amid an evolvingmixed-use landscape on the edge of

downtown.Toensuretheareacontinuestoservetheneedsofbothexist-

ing and new companies, the City of Chicago is implementing a strategic

landuseplan thatpreserves thearea’s fundamental characteristicswhile

providingaframeworkforsustainableeconomicgrowthandinvestment.

RoughlyboundedbyHubbardStreet,HalstedStreet,RandolphStreetand

OgdenAvenue (Map1), the217-acrearea ishome tomeatpackers, food

distributors,andmanufacturers,alongwithagrowingnumberof innova-

tion-driven +irms, restaurants, retailers, and leisure-oriented businesses

thatcollectivelyemployapproximately10,000people.Morethan500tech-

nology-related jobs expected tomove into the area within the next two

yearswillreinforceitsroleasaninnovation-drivenemploymentcenter.

Thestrategicplanisintendedtopreserveexistingjobswhileaccommodat-

ingprivatesector investmentsthatreinforcethearea’sexpandingroleas

an innovation-drivenemployment center.The “FultonMarket Innovation

District”planwill alsoensure thatnewdevelopmentprojects serve their

intended purposes without detracting or impeding the often disparate

needsofotherbusinessesandcommunitystakeholders.

At the request of local landowners, roughly half of the planning area is

zoned C-1, which restricts most uses to small scale business endeavors

(Map2).Thenorthernhalfoftheareaiszonedformanufacturing.Future

developmentproposals are expected to exceed theC-1district’sparame-

ters, necessitating the need for broader development guidelines that ac-

commodatefutureneedswhilealsoprotectingthefundamentalcharacter-

isticsofthearea,particularlyitshistoricroleasahometolightindustries

andfood-orientedbusinesses.

TheFultonMarketInnovationDistrictAlanduseplanforcoordinatedeconomicgrowth

Map 2: Exis�ng zoning in the Fulton Market Innova�on District

Hubbard

Ha

lsted

Randolph

Ogd

en

Hubbard

Ha

lsted

Randolph

Ogd

en

Map 1: Fulton Market Innova�on District boundary

The zoning of the Fulton Market Innova&on District is predominantly a mix of manufacturing

and commercial districts which allow for smaller-scale development.

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TheFultonMarketInnovationDistrictplanconsistsofalandusemap,ahistor-icdistrictdesignation,designguidelines,andasuiteofpublicinvestments.• The land usemap guides height, density and use parameters for future

constructionprojects,ensuringthatproposedzoningchangesaremadeincontextwithfourspeci+icsubareaswithintheFultonMarketarea,includ-ingportionsofanexistingCityofChicagoIndustrialCorridorandPlannedManufacturingDistrict.

• Thehistoricdistrictdesignationpreserves thearea’s industrial character

byprotectingkeybuildingsfromdemolitionorsigni+icantalterationwhileprovidinginvestmentincentivestotheirowners.

• Thedesignguidelinesensurenewconstructionorredevelopmentprojects

maintainthearea’suniquevisualidentityassociatedwithfoodwholesalingandlightindustry.

• Thepublicimprovementswilladdresscriticalinfrastructureissuesaswell

ascreategatewaysandothervisualcuesthatreinforcethesenseofplacewithinthedistrict,alongwithspeci+icimprovementsthatsupportthear-ea’suniqueassociationwithfood, includinganincubatorfacilityto fosterlocally produced and regionally distributed meats, vegetables and otheritems.

Unlikeother innovation-orientedemploymentdistricts across the country inwhich public entities own the land and buildings, FultonMarket InnovationDistrict properties are almost exclusively owned by individuals, businessesandorganizations.Theplan’sgoalsandobjectivesrelyonselectCityofChicagodevelopment tools and regulations to succeed, including economic develop-ment subsidies, historicpreservation regulations and incentives, zoning, andpublicinvestment.The plan does not proposewholesale zoning changeswithin the study area.Theplan’sdesignguidelinesapplyonlyintheeventofanewconstructionorredevelopmentwithinthearea.Developmentproposalswouldbeassessedforcompatibilityby community stakeholders andelectedof+icials,with +inal ap-proval fromCityCouncil. Thehistoricdistricthasa specialsetofguidelinesandstandards. Theseadditionalruleswouldapplytosubstantialchangesoradditions to existing buildings and new developments proposed within thehistoricdistrict.ProposalswillrequireadditionalapprovalbytheCommissiononChicagoLandmarks.

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Poisedforcontinuedbusinessgrowth,theFultonMarketareaisanidealloca-tion for Chicago’s +irst self-proclaimed “innovation district.” Innovation dis-trictsarearelativelynewtypeofbusinesscenterthatareattractivetocompa-nies that leverage technology to produce real and virtual goods. Innovationdistrictsalsopossess traditional industrialandsupportiveservices thatofferurban vibrancy and authenticity that attract new economy companies. Theconcentrationofinnovation-oriented+irmsinselectpartsofBoston,Brooklynandothercitiesre+lectthistrend,onethatwillsigni+icantlyexpandintheFul-tonMarketareawiththearrivalof500Googleemployeesin2015.Innovationdistrictsshareothercommoncharacteristics,includingprotectionsformanufacturinguses,proximitytoacentralbusinessdistrict,uniquenaturalor cultural features, public infrastructure investments, and technology-oriented anchors. The FultonMarket Innovation District possesses all thesecriteria,plusproximitytoaffordable,youth-orientedneighborhoodslikeWick-erPark,UkrainianVillageandLoganSquare,whichreinforcethearea’sviabil-ityforinnovation+irmsandtheirworkforces.ManyofthecurrentbuildingsandbusinesseswithintheFultonMarketInno-vationDistrictre+lectthearea’s150-yearassociationwithfoodentrepreneur-ismandbroaderthemesaboutthecity’seconomichistory.Theusesandbuild-ingsconveyChicago’simportanceasawholesalingcenterthatdistributedtheagriculturalbountyoftheheartlandacrossarapidlygrowingregion.Theyalsore+lectChicago’simportanceformeatprocessinganddistributionwhileexem-plifyingtheimportanceofmanufacturingtothecity’sdevelopment.Though the term Fulton Market is used colloquially to reference the entireplanningarea,thenameformallyappliestoacorridorofmeatprocessorsanddistributorsonthedistrict’seasternend.Thelastremainingmarketdistrictinthecity, themeatpackingarea is centeredalongFultonMarketStreet,whichoncehousedsatellite facilities for industrialmeatpackinggiants likeArmour,Swift,Morrisandothercompanies.Today,wholesalerscontinuetooccupyFul-tonMarket buildings. Several of thesewholesalers, alongwith a number ofarearestaurants,sourcetheirrawmaterialsfromsmallfarmersthatspecializeinorganic,pesticidefree,and/orhumanelyraisedproducts,re+lectingthear-ea’s ongoing association with market-driven innovation, and representing auniquenexusbetween traditionalwholesale foodpurveyors and restaurants

thatserveregionallysourcedfood(Map3).

APlaceofInnovation

Map 3: Wholesale food license holders and restaurants serving regional products

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Themeatpackingdistrict’ssuccess ispartlydue toeasyaccessandegressbyshippers and receivers and its proximity to businesses and consumers. Theconcentrated location also offers relatively insulatedwork areas inwhich tooperatewithoutcon+lictfromnon-compatibleusesinvolvinghousing,lodging,

andcertainretailuses,especiallyduringearlymorninghourswhensidewalks

andotherpublicspacesareutilizedbyfoodcompaniesforoperationalneeds.

Asof2011,63%ofthejobsintheFultonMarketInnovationDistrictwerein-

volvedinthemakingorhandlingofrealandvirtualproducts.(AppendixI).A

portionoftheinnovationdistricthasaPlannedManufacturingDistrict(PMD)

zoningdesignation,oneof15PMDsinChicago.ThepurposeofaPMDistopro-

vide land use stability to serve the needs of both traditional and advanced

manufacturersandotherproduction-orientedcompanies.Asof2011,90%of

the jobs in the PMD portion of the innovation district were involved in the

makingorhandlingofrealandvirtualproducts.AstheFultonMarketInnova-

tionDistrictevolves,thePMDwillcontinuetoprovideanaffordableenviron-

mentthat’sfreefromdisparateusesthatareincompatiblewiththemakingand

distributionofrealandvirtualproducts.

Approximately18percentofthejobsinFultonMarketInnovationDistrictare

relatedtoleisureandlodgingactivities,manyofwhicharelocatedadjacentto

industrial companies within the southern half of the area. Since the early

1990s,thesouthernportionhasbecomeincreasinglyassociatedwith+inedin-

ing,entertainmentvenues,artgalleries,andspecialevents,makingittodayone

of themost eclectic concentrations of culturally focused entrepreneurism in

thecity.

Publicstreetsandprivateparkinglotsinthesouthernportionarealsousedfor

events like theannualTasteofRandolph foodandmusic festival; theannual

Guerilla Truck Show designer products event; and the bimonthly Randolph

StreetMarketfestivalfeaturingvariousvintagegoods.

ThesouthernhalfoftheFultonMarketInnovationDistrictincludesthemajori-

tyoftheapproximately125propertiesproposedtobeincludedinaformalhis-

toricdistrict.Thedesignationofthe“Randolph-FultonMarketHistoricDistrict”

willprotecttheexteriorsofkeybuildingsfromsigni+icantalterationordemoli-

tion,ensuringtheheartoftheareawouldmaintainitstraditionalappearance

and visual in+luence on local streetscapes. A special set of design guidelines

willbemandatoryfornewconstructionprojectswithinthehistoricdistrict.

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TheuniqueurbansettingandpedestrianscaleoftheFultonMarketInnovationDistrictare largelyattributedtoongoingprivatedemandinthearea,atrendwhichwas facilitatedbyvariouspublic improvementsover theprevious twodecades.Themostnotableinvestmentsincludea$5.9millionstreetscapepro-jectin1996,whichbeauti+iedRandolphStreetwestofHalstedStreet,andthenew$38millionMorganCTAstationin2013,whichprovidedmasstransitintotheheartofthearea.Thelatterprojectwillcontinuetodrivedemandfornear-by real estate, a trend exacerbated by Google’s announcedmove toMorganStreetandFultonMarketin2015.

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KeyActions

1. Designate a historic district within a portion of the Fulton Market Innovation

District

The Randolph-Fulton Market Historic District recommendation being considered by the

Commission on Chicago Landmarks should be +inalized and forwarded for adoption by City

Council to preserve the historic core of the innovation district. The City Council designa-

tion would also provide new +inancial incentives for building rehabilitation and mainte-

nance needs. Encompassing 47 acres, the Randolph-Fulton Market Historic District focuses

exclusively on architecturally signi+icant buildings and others that best represent the ar-

ea’s industrial growth and association with food production and distribution (Map 4). Like

all historic districts, the designation would be limited to the exterior elevations of proper-

ties to allow +lexibility to adapt the interiors for new uses that align with market demands.

2. Adopt design guidelines

Design guidelines should be +inalized and adopted by the Chicago Plan Commission to

guide the treatment of properties and streetscapes throughout the Fulton Market Innova-

tion District in order to preserve and enhance its unique character (Appendix II). The

guidelines are intended to strengthen the identity of the area and support existing uses,

while encouraging new, compatible development. Renovation of existing buildings for

contemporary use is encouraged and new construction and additions are allowed, pending

compliance with zoning and land use parameters.

For properties outside of the historic district but within Fulton Market Innovation District,

the General Design Guidelines are recommended for all new construction and rehabilita-

tion projects. Compliance will be monitored by City of Chicago zoning and land use staff,

which reviews all zoning change applications within the city. Speci+ic recommendations

will be made, as appropriate, to property owners as part of the zoning change review pro-

cess. Property owners should reference the guidelines prior to pursuing a building permit

within the innovation district.

HistoricDistrictProperties

Forpropertieswithin theRandolph-FultonMarketHistoricDistrict,compliancewith theRandolph-FultonMarketHistoricDistrictDesignGuidelines is required for all new con-

structionandrehabilitationprojects.TheseguidelineswillbeadoptedbytheCommission

onChicagoLandmarks.CompliancewillbemonitoredbyCityofChicagohistoricpreser-

vationstaff,which reviewsbuildingpermits forall properties subject to theCity’s land-

marksordinance.PropertyownersshouldreferencetheRandolph-FultonMarketHistoric

DistrictDesignGuidelinespriortopursuingabuildingpermitwithinthehistoricdistrict.

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Map 4: Fulton Market Innova�on District— Design Guidelines applicability

New development should follow the Design Guidelines in Appendix II

Fulton Market Innova&on District boundary

New development and renova&ons in the proposed Randolph—Fulton Market Historic District will be required to comply with the Randolph—Fulton

Market Historic District Design Guidelines to be adopted by Commission on Chicago Landmarks

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3. Adopt the Fulton Market Innovation District Land Use Map

to minimize future land use con&licts and maximize the

production of real and virtual products

TheFultonMarketInnovationDistrictLandUseMap(Map5)pro-videsspeci+iclanduseparametersforfuturezoningchangeswithinthedistrict.Itsheightanddensitystandardsforfourkeysubareasare tobeusedby theChicagoPlanCommission,CityCouncil,andcommunity stakeholders to assess the appropriateness of futurezoningchangeproposals.Thefourspeci+icsectionsofthemapin-clude:InnovativeIndustriesSubarea

Locatedwithinandadjacent to theKinzie IndustrialCorridorandPlanned Manufacturing District (PMD), the Innovative IndustriesSubarea is primarily occupied by manufacturing, industrial, anddistribution-orientedcompanies.Landuseparametersforthesub-areawillprotecttheviabilityofexistingcompaniesandthearea’sroleasa jobscenter, especially involving itsburgeoning roleasahome to innovation and technology-driven companies. New resi-dential development is prohibited and retail establishments arelimited to stores that sell goods produced on-site.New construc-tionislimitedtolow-risebuildings.Typical uses include: Manufacturing, artisanal manufacturing, in-dustrial, business and industrial services, food purveyors, foodtruckcommissaries,sharedkitchens,printingfacilities,commercialphotography studios, of+ices, high-tech of+ices, data storage cen-ters, business trade schools, warehouses, employment agencies,constructionof+ices,small-scalerestaurants,coffeeshops,taverns,and other small-scale commercial uses that support these trades,suchasbarbershopsanddrycleaners.Buildingscale:Onetoapproximatelyfourstories.

FultonMarketSubarea

LocatedalongFultonMarketStreet,thehistoriccoreoftheFultonMarketInnovationDistricthasprovidedmeatandfood-relatedservicestothecityformorethan150years.Thelandusemapprovidesforusesthatarecom-patiblewiththeoperationoffoodproductionanddistribution-relateden-terprises. Existing residential uses are allowed to remainbutnewor ex-pandedresidentialdevelopmentisprohibited.Retailislimitedtosmaller-scalebusinesses, includingstores thatsellgoodsproducedoff-site.Build-ingheightsarelimitedtotheexistingscaleofthestreetwallalongFultonMarket Street.Newuses should renovate and incorporate existingbuild-ings,especiallywithinthehistoricRandolph—FultonMarketHistoricDis-trict.Typicalusesinclude:Manufacturing,artisanalmanufacturing,wholesaling,foodpurveyors,butchershops,grocerystores,of+ices,high-techof+ices,co-workingof+ices, restaurants, coffee shops, bakeries, taverns, art galleries,artstudios,apparelshopsandbikeshops.Buildingscale:Onetothreestories;large+loorplates.LeisureandLodgingSubarea

TheLeisureandLodgingSubareastraddles theLakeStreetpublic transitcorridorandthenewMorganStreetCTAstation,whichprovidesopportu-nitiesforincreaseddensityandheightthroughTransitOrientedDevelop-mentprovisionswithintheChicagozoningcode.LakeStreetalsofunctionsasaserviceroadformanyindustrialcompanieswithinthedistrict,provid-ing for larger scale development projects that could face adjacent sidestreets. Mid-rise buildings are permitted, including structures with non-accessoryparkingthatcouldaccommodatepatronsofnearbyrestaurants,entertainmentvenuesandhotels.Typicalusesinclude: Retail, restaurants, salons, personal services, foodpurveyors,artgalleries,artstudios,entertainmentvenues,hotels,residen-tial(abovethe+irst+loor),of+ices,high-techof+ices,andbicyclestations.Buildingscale:Threetoapproximatelyeightstoriesormore.

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Map 5: Fulton Market Innova�on District Land Use Map

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RandolphRowSubarea

Asoneofthemostpopulardestinationsforrestaurant-goersinChicago,Ran-dolphStreetislinedwithrestaurantsandotherhospitalityorientedbusiness-

esthatprovideeclecticdiversityfortheentireFultonMarketarea.Locatedat

thesouthernportionofthedistrict,thesubareaalsocontainsentertainment

venuesandculturallyawarebusinessesthatdrawvisitorsfromoutsideofthe

neighborhood.Newusesshouldrenovateandincorporateexistingbuildings,

especiallywithinthehistoricRandolph—FultonMarketHistoricDistrict.

Typicalusesinclude:Full-servicerestaurants,coffeeshops,taverns,boutique

hotels, entertainment venues, retail, of+ices, personal services, foodpurvey-

ors,butchershops,groceriesandresidential(abovethe+irst+loor).

Buildingscale:Twotoapproximately+ivestories.

4. Establish Subdistrict B within the Kinzie Planned Manufacturing Dis-

trict (PMD)

AnewPMDsubdistrictshouldbedesignatedwithintheKinziePMDtorein-

force thearea’sexpanding roleasan innovation-drivenemploymentcenter

(Map6).Thepurposeofthesubdistrictistoprovideadequateandaffordable

space forabroader rangeofbusinesseswithinaportionof thePMD,while

stillprotectingagainstthepotentiallynegativeimpactsofhousing,entertain-

ment,andlodginguses.Bsubdistrictsprovideforawiderangeofretailand

commercialuseswhilestillaccommodating the industrialandemployment-

basedgoalsofthePMD.Noresidentialusesareallowed.

5. Invest in facilities for regional food products, traditional wholesale

businesses and associated historic buildings

To complement the FultonMarket area’s associationwith food production,

distribution, and consumption, a facility should be established within the

PMD to serve as an artisanal food incubator anda regional foodwholesale

and processing facility for use by local chefs, restaurant owners and other

foodentrepreneurs.Thefacilitycouldbemodeledaftertheexistingincubator

intheKinzieIndustrialCorridorthatsuccessfullysupportsvariousindustrial

and food processing niches within the local economy. In addition, the City

shouldexpandassistancetoexistingwholesaleandmanufacturingcompanies

withintheKinzieIndustrialCorridorbyincreasingtheSmallBusinessInvest-

mentFund(SBIF)andTIFWorks.

Map 6: Fulton Market Innova�on District Land Use Map and Kinzie Corridor

Planned Manufacturing District

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6. Coordinate public infrastructure investments to create a cohesive

districtidentityandsupportongoingprivateinvestmentprojects.

The Fulton Market Innovation District land use plan will provide the frame-

work for capital improvements in the area. Streetscape improvements focused

on pedestrian safety and business loading operations will be initiated for the

length of Fulton Market Street. To inform additional improvements, a traf+ic

and curbside use study will begin in the fall of 2014 to address the wide range

of users and the changing character of traf+ic throughout the day. In conjunc-

tion with the streetscape work on Fulton Market, sewer and water mains in

the area will be evaluated and improved.

7. ProvideprogrammingandeventsonfoodandChicago’srolewithin

theregionalandnationwidefoodsystems

The Fulton Market Innovation District’s long association with food provides

unique opportunities for public events and programming that contribute to

the local economy. Given the existing food focus and proximity to downtown

and public transit, the Fulton Market Innovation District is an ideal area for a

seasonal, outdoor farmers market and/or an indoor market that caters to the

public, chefs, or both. A potential market steward could be an organization like

Green City Market, which is a 16-year old, not for pro+it organization that oper-

ates a farmer’s market from May through December in Lincoln Park. The or-

ganization is investigating the feasibility of a second market in Chicago, with a

primary objective of enhancing access and convenience in order to better con-

nect local producers to downtown restaurateurs. Additional regional and sus-

tainable food programming activities should be explored for opportunities in-

volving pop up exhibits, podcasts/walking tours, demonstrations (cooking,

preserving, drying herbs, etc.) and opportunities to learn about how food gets

from regional farms and producers to the table.

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Blank

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APPENDIXIDPDstaffused2011CensusBureauemploymentdatatocategorizethejobswithintheFultonMarketInnovationDistrictusingamethodologydevel-opedfortheChicagoSustainableIndustriesplan.I,ii,iiiJobcategoriesweregroupedinto1)Real&VirtualProducts,2)BusinessandInstitutionalSer-vicesand3)LeisureandLodgingServicesandaredetailedbelow.

EmploymentdataforselectedsectorswithintheFultonMarketInnovationDistrictandKinziePlannedManufacturingDistrict

NAICSgroupingsforanalysisofemploymentdatawithintheFultonMarketInnovationDistrictareasfollows:Real&VirtualProducts=Manufac-turing;Movingorstoringgoods(Utilities,Construction,WholesaleTrade,Transportation&Warehousing,AdministrativeSupport,WasteManage-ment&Remediation;Information,Technology&Management(Information,Professional,Scienti+ic&TechnicalServices,ManagementofCompaniesandEnterprises).Business&InstitutionalServices=EducationalServices;Finance&Insurance;RealEstate(RealEstate,Rental&Leasing);HealthCareandSocialAssistance.LeisureandLodgingServices=Retail;Arts,Entertainment&Recreation,Accommodations&FoodService.Other=OtherServices(ExceptPublicAdministration).NotethefollowingNAICScodeswereexcludedfromanalysisduetozerocounts:Agriculture,Forest-ry,FishingandHunting;Mining,Quarry&OilandGasExtraction;PublicAdministration.

i. U.S.CensusBureau,CenterforEconomicStudies,OnTheMapapplicationandLEHDEmploymentStatistics.http://onthemap.ces.census.gov/.ii. DPDGISShape+ileswereusedtode+inetheareaselectionandtoextractemploymentdatafortheFultonMarketInnovationDistrictandsegmentofPMD4.iii. In2012,JonDeVries,whochairedtheLandUseTaskForcefortheChicagoSustainableIndustriesplan,andhiscolleagueJohnMcDonald,bothprofessorsatRooseveltUniversity,

analyzedemploymentdatafor24Chicagoindustrialcorridorstoassessindustriallandusepolicy.Employmentsectorsweredividedintothreeland-usecategoriesusingNAICSdata:Manufacturing(includingwholesaletrade,transportationandwarehousing,andadministrativesupportandwastemanagementservices);Retailtrade(includingarts,en-tertainmentandrecreationandaccommodationandfoodservice);andOf+iceemployment(including7sectorsofprivateemployment).

Area

Manufact-

uring

Moving,

storing

goods &

Construc-

tion

Informa-

tion,

Technolgy

& Mange-

ment

Education

Services

Finance &

Insurance

Real

Estate

Health

Care &

Social

Assis-

tance Retail

Arts,

entertain-

ment,

recrea-

tion

Accomo-

dations,

Food

service Other TOTAL

Fulton Market

District 855 2350 3011 63% 561 313 132 532 10% 278 273 1255 18% 358 4% 9918

Within PMD

only 78 1422 57 90% 83 2 8 1 5% 19 3 1 1% 52 3% 1726

Real & Virtual Products Business & Institutional Services

Leisure and Lodging

Services