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Written by Gary F. Smith
Publish Date: 2024-10-04

Harvard Case - Negotiating Unplanned Developments: The Battle Over a Massive Redevelopment Project on Chicago's North Side

"Negotiating Unplanned Developments: The Battle Over a Massive Redevelopment Project on Chicago's North Side" Harvard business case study is written by Nour Kteily, Jennifer Whitson, Cynthia Wang, Denise Akason. It deals with the challenges in the field of Negotiation. The case study is 28 page(s) long and it was first published on : Oct 21, 2021

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2. Background

**Brief summary of the case**

The case study 'Negotiating Unplanned Developments: The Battle Over a Massive Redevelopment Project on Chicago's North Side' revolves around a contentious redevelopment project in Chicago's North Side. The project, led by developer Sterling Bay, faced strong opposition from local residents and community groups who were concerned about its potential impact on the neighborhood's character, traffic, and affordability. The case highlights the challenges of balancing economic development with community concerns and the importance of effective negotiation and conflict resolution.

Main protagonists of the case study

  • Sterling Bay: The developer behind the redevelopment project
  • Local residents and community groups: Opponents of the project
  • Alderman Harry Osterman: The local alderman who supported the project
  • Mayor Rahm Emanuel: The mayor of Chicago who ultimately approved the project

3. Analysis of the Case Study

Strategic analysis

  • Sterling Bay's strategy was to emphasize the economic benefits of the project, such as job creation and increased tax revenue.
  • The residents and community groups countered by arguing that the project would harm the neighborhood's character and affordability.

Financial analysis

  • Sterling Bay estimated that the project would generate significant economic benefits for the city, including $1.5 billion in tax revenue over 20 years.
  • The residents and community groups disputed these estimates, arguing that the project would actually lead to increased costs for the city.

Marketing analysis

  • Sterling Bay launched a marketing campaign to promote the project and address the concerns of residents.
  • The residents and community groups organized their own campaign to oppose the project and raise awareness of their concerns.

Operational analysis

  • Sterling Bay planned to build a mixed-use development that would include residential, commercial, and retail space.
  • The residents and community groups argued that the project would increase traffic and congestion in the neighborhood.

4. Recommendations

Negotiation strategies

  • Principled negotiation: Both sides should focus on finding a solution that meets the needs of both parties.
  • Integrative negotiation: Both sides should work together to create a win-win solution that benefits both the developer and the community.
  • Active listening: Both sides should listen carefully to each other's concerns and try to understand their perspectives.
  • Emotional intelligence: Both sides should manage their emotions and avoid getting defensive or angry.

Conflict resolution

  • Mediation: A neutral third party can help facilitate negotiations and resolve conflicts.
  • Arbitration: A neutral third party can make a binding decision on the issue.
  • Community engagement: The developer should engage with the community early on in the planning process to address their concerns.

5. Basis of Recommendations

Core competencies and consistency with mission

  • The recommendations are consistent with the university's mission of promoting economic development and social responsibility.

External customers and internal clients

  • The recommendations take into account the needs of both the developer and the community.

Competitors

  • The recommendations are designed to help the university compete effectively in the market for redevelopment projects.

Attractiveness ' quantitative measures if applicable (e.g., NPV, ROI, break-even, payback)'

  • The recommendations are based on a sound financial analysis that demonstrates the project's potential economic benefits.

Are all assumptions explicitly stated (e.g., needs, technology trends)'

  • The recommendations are based on a clear understanding of the needs of the community and the potential impact of the project.

6. Conclusion

The redevelopment project on Chicago's North Side is a complex and challenging issue with no easy solutions. However, by following the recommendations outlined in this case study, the developer and the community can work together to find a solution that meets the needs of both parties.

7. Discussion

Other alternatives not selected

  • The developer could have abandoned the project altogether.
  • The community could have blocked the project through legal action.

Risks and key assumptions

  • The project could be delayed or even canceled due to opposition from the community.
  • The project could have a negative impact on the neighborhood's character and affordability.

8. Next Steps

  • The developer should engage with the community early on in the planning process to address their concerns.
  • The developer should develop a comprehensive plan that outlines the project's benefits and how it will address the community's concerns.
  • The developer should be prepared to negotiate with the community and make concessions if necessary.

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Case Description

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