To many, Little Village is not what it used to be.
So much so that a Starbucks will be opening up in one of the new storefronts that replaced small businesses in the Little Village Plaza, the shopping center adjacent to the neighborhood’s iconic arch, a symbol of the Mexican community in Chicago.
Years of pleas from residents and community activists that space in the plaza remain home to small businesses were mostly in vain.
Now, they said, the high-profile site seems poised to become the most visible sign yet of the upcoming displacement of locals, mostly Mexican immigrants. The arrival of Starbucks in any neighborhood in cities across the country has long been a sign of accelerating gentrification, many said.
“That means that working-class families that have been here for decades will eventually not be able to afford to live here,” said Kristin Juarez.
The floor-to-ceiling Mexican flag that adorned the wall of the Little Village Discount Mall has been replaced by industrial-like single-colored walls and a national chain store.
At a community meeting last week, store leaders of the Starbucks that is set to open at the end of September were met with discontent and concern by many residents. A few others, however, praised the move, saying it could add economic value to the neighborhood and they view it a sign of progress.
The new store is part of the corporation’s Community Stores focus program, which launched in 2015 and aims to provide economic opportunity through local hiring, partnering with local artists and working with diverse contractors and subcontractors.
“We are incredibly proud to open a Starbucks Community Store in the Little Village community, and we will continue to work closely with community members as this store and our partners (employees) connect with their neighbors, build partnerships with local organizations, and support community events,” a spokesperson for Starbucks told the Tribune.
The store, which intends to hire 15 residents, would be Starbucks’s fourth community store in Chicago. Other Starbucks Community Store locations include 63rd and Halsted in Englewood, which opened in 2016; 95th and Ashland, which opened in 2022; and North and Cicero, which opened in 2023.
During the community meeting, Ana Gutierrez, director of retail operations of the new location gave few details of how the store intends to partner with local organizations or if and how the store intends to collaborate with small business owners, such as other bakeries in the area.
But “anything is possible,” she said.
Most of the 40 attendees referred to the gentrification of the neighboring Pilsen as a way to justify their concerns, saying that new developments invite a less diverse, higher-income demographic to live in the neighborhood, increasing property values but also property taxes. They also questioned if their model considered how other immigrant-owned bakeries and coffee shops could be affected by their model.
“I don’t know why we’re pretending like you’re (Starbucks is) coming here for us when you’re coming here for the people that you want to eventually live here. We don’t need a Starbucks,” said Elizabeth Crisostomo. Most in the meeting echoed her concerns.
The concerns go hand in hand with an analysis of the new tax bills released in 2022 by Cook County Treasurer Maria Pappas, that showed property owners in gentrifying Latino neighborhoods in Chicago would see some of the biggest increases.
According to the analysis, on the Lower West Side, property owners saw their median tax bill jump from $4,964 to $7,239, a 46% increase. Over the last two years, residents of Pilsen and Little Village have protested the increases and continue to demand financial aid and solutions from Cook County Assessor Fritz Kaegi and Board of Review Commissioner George Cardenas.
Over the last decade, the working-class community has experienced a slow but constant redevelopment, particularly near the California Pink Line Station, some community leaders and residents said. Old multi-unit houses have been sold and renovated, offering apartments for rent at prices that working-class families most likely cannot afford.
After a ward remap, the plaza is now in the 25th Ward of Ald. Byron Sigcho-Lopez. The purchase of the plaza by Novak Construction, however, was initiated and completed when it was part of the 12th Ward, which was overseen by Ald. George Cardenas in 2020.
Sigcho-Lopez could not be reached for comment.
According to Angela Clark, store development manager of the Midwest region plans to open the store in Little Village were already in place when she started working for the corporation two years ago. Clark, who is from Woodlawn, a predominantly Black community, said that she was “sensitive to some of the issues” they raised, but that she “wanted to see the same level of investment in communities like Little Village that we see in other parts of the city.”
The new store will provide opportunities, she said.
Hector Izaguirre was one of the few attendees who agreed with Clark, suggesting that the community must take advantage of the development to benefit from it rather than resist it.
But “it is unfair for a corporation to come in to invest in the area now that it is a bit better,” said one resident during the community meeting. “Why didn’t you come before? When did we have a bigger gang problem? When we needed you? You’re here because now we’ve worked to create a better community.”
Though street violence still very much affects the community, recent reports show that anti-violence efforts over the last decade have helped to mitigate gang conflicts, making it a safer community, and for some certainly a more attractive neighborhood.
Like Pilsen, known for its rich culture, Little Village has a vivid history of Mexicans in the Midwest. It’s strong in activism, there are murals, family-owned businesses, many selling Quinceañera dresses and other items for traditional celebrations and holidays, and restaurants with food that can’t be found anywhere else in the city.
It is dubbed “the Mexico of the Midwest,” in part because people from neighboring cities and states would come to the “La 26″ in search of that authentic touch of Mexico not found anywhere else.
About a decade ago, the 26th Street stretch became known as the second-highest tax-generating district after the Magnificent Mile. Showcasing the economic and cultural power of the Mexican immigrant population.
The neighborhood is made up of immigrant families that lent a hand to each other when arriving in the country. That is still the case as Little Village has welcomed thousands of new migrants from Venezuela, Guatemala, and Ecuador in the last two years.
Rafael Hurtado, a son of Mexican immigrants and a lifelong resident of Little Village, said he recognizes the value of the area and has seen how it has slowly changed since he was a child. He chose to return to the neighborhood after graduating college by investing in property and getting involved with community projects.
“This is the place that made me, my family is still here. It was one of the few places where my parents could invest and it paid off for us and I want to do the same,” Hurtado said. “If you want to make a change, you have to play your part too.”
For a long time, he said, those children of immigrants who made it to professional white-collar jobs after graduating college, would typically leave the neighborhood: “Everyone wanted to leave. No one wanted to stay, no one wanted to return.”
“I’m very proud of my other friends who also decided to stay and who won’t run away from here because we have a chance to preserve our community,” Hurtado said.
He understands, however, why a new Starbucks makes some people more concerned about rising rents. Over the last five years, since he bought his properties, property taxes have also gone up and therefore, rent is “a little higher.”
On the other hand, corporations such as Starbucks can offer benefits to residents who work there, something that small businesses may not be able to offer.
Ideally, Hurtado and many more residents, including those who oppose Starbucks, agree that residents should be provided with resources to find ways to invest in the neighborhood and other opportunities to ensure they are not abruptly displaced.
Only about 6% of the residents are white, while 60% are Latinos, mostly Mexican and the rest are Black, according to the latest data. Though the average median household income is around $43,000, per capita income is $14,234, about a third of the city average, and 24% of residents live below the poverty level, compared to 17% citywide.
However, educational attainment in Little Village has been consistently improving over the years, thus resulting in higher incomes for some.
Jennifer Aguilar, executive director of the Little Village Chamber of Commerce said that their goal is to “ensure that any corporation operating in Little Village, including Starbucks, is aware of the community’s needs, concerns and values.”
Aguilar added that the chamber acknowledges the concerns of residents regarding the potential impact Starbucks could have on small businesses and the character of the neighborhood.
“We want to clarify that while the chamber advocated for a local small business to occupy the space, the final decision was made by the property owners, and the chamber had no role in bringing Starbucks to the neighborhood,” Aguilar said. “Our focus now is to ensure that Starbucks engages in a responsible and positive way with the community, while continuing to support local businesses in Little Village.”
larodriguez@chicagotribune.com
