Capitol Fax.com - Your Illinois News Radar


Latest Post | Last 10 Posts | Archives


Previous Post: We’ve been a sorry state for a long time
Next Post: State bond sale goes well, but still paid a higher price

*** UPDATED x1 *** Picking on the little guys

Posted in:

* One of Chicago’s biggest problems is its over-regulation of small businesses, particularly very small one or two-person start-ups. So pardon me if I don’t get too excited by this

Nearly four years after Chicago aldermen crafted a new law regulating food trucks, an investigation by the Chicago Sun-Times and ABC7 Chicago’s I-Team has found the rules are frequently broken with violators seldom facing any consequences because enforcement by Mayor Rahm Emanuel’s administration is so lax.

Under the ordinance Emanuel proposed and the Chicago City Council approved in 2012, the city designated 37 “mobile food vehicle stands” across the city. The stands are supposed to be about 40 feet long — enough space for about two trucks. No other trucks are allowed to park in the same block outside of a stand. And the food trucks aren’t allowed to operate at the same location for more than two hours at a time.

Is anybody getting sick from the food? Are customers complaining about the quality? Are any brick and mortar restaurants going out of business because of the competition? Are there any serious problems as a result of this other than a little parking situation?

No idea, because it’s not in the story. It’s just a needlessly complicated city ordinance that isn’t being fully obeyed.

Meh.

* Meanwhile

The good folks at Airbnb are out with a study on how fast their business is expanding in the Midwest, and it inadvertently may have provided some ammunition for City Council critics of how the house-sharing service is changing the city.

The study, conducted July 1, 2015, to this June 30, found that, not unexpectedly, business is booming, with the number of nights someone used Airbnb to get a room up 91 percent over last year in Chicago and even more in smaller markets such as Indianapolis, Columbus, Ohio, Kansas City and Milwaukee.

What struck me, though, is the median number of nights hosted in that year by service providers: 38 nights, well over a month in which someone other than the owner was staying in the house or apartment that was being rented. The typical host here earned $4,300 from Airbnb in that year—a figure that could be far higher in some cases. […]

But downtown Ald. Brendan Reilly has a much different take.

“These are professional operators,” Reilly emailed me after reviewing a copy of the report. “So much for Airbnb’s laughably false ‘it’s all about the occasional nightly rental in my second bedroom to help pay rent’ narrative. . . .Looks like ’sharing’ remains incredibly lucrative for Airbnb in Chicago despite the new ‘industry-killing’ law on the books.”

Look, if the Airbnb folks are causing real problems in their neighborhoods (and some are), then address that and do something about it. If somebody wants to rent out their own home a few nights a month, why get everybody’s shorts in such a tight knot?

*** UPDATE ***  Some good news on Rep. Mike Zalewski’s Facebook page

On November 18 of last year, Noelle and Derrick came to see me in my district office. They run craft distilleries here. Our state happens to be gaining national notoriety for this particular industry. Illinois does this well.

We had a good conversation and it turned out Illinois law was preventing Noelle and Derrick from growing their small business. We drafted a bill, filed it, got input from stakeholders. Some stuff stayed in, some came out and ultimately it passed General Assembly. It’s my expectation that Governor Bruce Rauner will sign it later today and it’ll become law. And I thank him for that.

There’ll be no massive needle-moving as a result of #SB2797. Its effect won’t show up on graphs and charts and in commercials. But it’s real and It’ll help small businesses thrive. And we can all drink to that.

* Related…

* The private sector must unite to halt City Hall’s anti-business agenda

posted by Rich Miller
Friday, Aug 26, 16 @ 12:32 pm

Comments

  1. Glad ABC 7 decided to go after those bad food trucks. Also surprised that a complex set of rules is not being enforced.

    Comment by OneMan Friday, Aug 26, 16 @ 12:37 pm

  2. The Harold’s Chicken food truck parks right outside my office every day and stays until they run out of chicken. It’s the best thing that ever happened to lunch in the south Loop, and my waistline is proof. There is a constant line of people throwing cash at them and devouring the unbelievably awesome chicken they make.

    Mmmmmmm, fried chicken.

    Comment by 47th Ward Friday, Aug 26, 16 @ 12:43 pm

  3. ” If somebody wants to rent out their own home a few nights a month, why get everybody’s shorts in such a tight knot?”

    Problem in Chicago is that they aren’t renting out rooms in detached, single-family homes. They are renting out rooms in apartments and condos, meaning that they are affecting other residents in the building (and, not incidentally, are often in violation of their leases or the condo/coop rules).

    Comment by JoanP Friday, Aug 26, 16 @ 12:53 pm

  4. ==The typical host here earned $4,300 from Airbnb in that year—a figure that could be far higher in some cases. […]==

    Translated: people who need to live in their own home full time have to pay a $438/month average rent increase because that’s what the market will now bear thanks to Airbnb.

    Comment by crazybleedingheart Friday, Aug 26, 16 @ 12:53 pm

  5. == And last year 14 percent of Chicago hosts — nearly 900 people — have avoided foreclosure or eviction thanks to the money they made sharing their homes. ==

    Maybe.

    But the pseudohotel industry is driving up the cost of housing stock at breakneck pace.

    Strain people to the breaking point and then crow over providing a way out to a few?

    Great spin. Terrible business.

    Comment by crazybleedingheart Friday, Aug 26, 16 @ 1:02 pm

  6. Let’s not forget that you need two different city agencies to approve your business sign, plus the Alderman who then promptly will send you a campaign invitation while he waits on whether to approve your sign or not. Moreover, if you have more than one location you have to follow different rules for each location. It’s maddening.

    Comment by Just Me Friday, Aug 26, 16 @ 1:10 pm

  7. ===are often in violation of their leases or the condo/coop rules===

    If they’re already in violation, there’s no need for an ordinance. Am I missing something here? There is already an avenue to address this in those cases.

    Comment by Rich Miller Friday, Aug 26, 16 @ 1:10 pm

  8. I suspect the food truck restrictions are being ignored because most us don’t mind the violations. It is nice having those options. Two hours seems like a short time.

    The funny thing is that although it would make sense to loosen the restrictions, it likely would lead to another battle. It is probably better to continue down the present path and just ignore them.

    By the way, if anybody sees the Tamale Spaceship truck, I highly recommend a visit. It really is outstanding stuff. It is sort of funny that my three favorite Mexican places are a Rick Bayless place and two food trucks.

    With regard to the short term rentals — that has been a huge issue, with Alderman Reilly in the lead, since 2007. They create serious problems for condominium associations. As the Alderman notes, these are not just people at times renting out a back bedroom. Many of these owners are effectively running hotels out of their condos.

    Comment by Gooner Friday, Aug 26, 16 @ 1:13 pm

  9. I agree with what seems to be the consensus on this board.

    Let’s loosen some of these restrictions on food trucks. It’s a bit of a hike for me to get to some of the dedicated locations in my office across from City Hall. There are some really good vendors with really good food out there.

    Comment by Arthur Sellers Friday, Aug 26, 16 @ 1:31 pm

  10. Rich Miller - Friday, Aug 26, 16 @ 1:10 pm:

    ===are often in violation of their leases or the condo/coop rules===

    If they’re already in violation, there’s no need for an ordinance. Am I missing something here? There is already an avenue to address this in those cases.

    Yep.

    Comment by Ron Friday, Aug 26, 16 @ 1:58 pm

  11. well, anti business agenda unless your business is restaurants and hotels. those are two very powerful industries that go up against food trucks and air bnb so that is what these stories are really always about. it’s not anti business, it’s anti new business.

    Comment by Amalia Friday, Aug 26, 16 @ 2:02 pm

  12. - Amalia - Friday, Aug 26, 16 @ 2:02 pm:

    well, anti business agenda unless your business is restaurants and hotels. those are two very powerful industries that go up against food trucks and air bnb so that is what these stories are really always about. it’s not anti business, it’s anti new business.

    Exactly.

    Comment by Ron Friday, Aug 26, 16 @ 2:04 pm

  13. http://nolarentalreport.com/#/

    Comment by crazybleedingheart Friday, Aug 26, 16 @ 2:08 pm

  14. Glad to see the bill is expected to be signed, but just a small observation: let the Governor announce what he is going to do or not do.

    Comment by Just Me Friday, Aug 26, 16 @ 2:53 pm

  15. @crazybleedingheart

    “But the pseudohotel industry is driving up the cost of housing stock at breakneck pace.”

    I’m not as plugged into this issue as I’d like. I’ll look it up myself later, but are there any articles you know of that explain AirBnB’s effect on housing stock that you’d recommend?

    Thanks.

    Comment by Chicago_Downstater Friday, Aug 26, 16 @ 3:05 pm

  16. http://harvardlpr.com/wp-content/uploads/2016/02/10.1_10_Lee.pdf

    Comment by crazybleedingheart Friday, Aug 26, 16 @ 3:45 pm

  17. https://www.theguardian.com/us-news/2016/jun/27/airbnb-new-york-city-housing-stock-reduction-study

    Comment by crazybleedingheart Friday, Aug 26, 16 @ 3:50 pm

Add a comment

Sorry, comments are closed at this time.

Previous Post: We’ve been a sorry state for a long time
Next Post: State bond sale goes well, but still paid a higher price


Last 10 posts:

more Posts (Archives)

WordPress Mobile Edition available at alexking.org.

powered by WordPress.