CHICAGO | Economic & Business Development

[paloske]

Originally Posted by BrinChi

https://www.chicagotribune.com/colum...zxi-story.html

After years of luring corporate headquarters downtown, altering the city’s skyline and transforming once-fringe neighborhoods, some of Chicago’s best-known developers are taking a new approach for 2020 and beyond.

They’re lining up real estate investments in other cities.

A decade into a Chicago construction boom, some major players known for focusing heavily on their hometown are shopping for land to develop in places including Denver, Los Angeles, Miami, Nashville, Austin, Atlanta and Dallas.

Chicago-based firms, including Vista Tower’s Magellan Development Group and Lincoln Yards’ Sterling Bay, have determined that property tax increases and other factors make it difficult to finance new projects locally.

“We love Chicago but are super nervous about the headwinds Chicago faces,” said Magellan CEO David Carlins, whose firm’s Vista Tower condominium and hotel project with China’s Dalian Wanda Group will become Chicago’s third-tallest skyscraper when it opens in the fall.

“I would call it as difficult an environment from a capital standpoint as I’ve ever seen,” Carlins said. “In the recession, it was impossible for anyone to find money. Now there’s money, but there are other markets those investors are interested in.”

...

well its not necessarily a bad thing. as the old saying goes 'Bull markets are born on pessimism, grown on skepticism, mature on optimism, and die on euphoria,'. Investors are just being cautious which makes me hopeful that this construction boom can continue for a little longer. when you start seeing headlines saying that 'real estate has nowhere else to go but up' and developers trip over each other just trying to start new projects, that's when you know the end is near

[rgolch]

It was bound to happen eventually. At some point, tax increases and the general financial mess was going to catch up with us. It's not such a bad thing, because it'll help current and upcoming inventory get soaked up, and will start the gradual buildup for the next boom.

[marothisu]

Apparently in the first 2 days of Marijuana legalization in Illinois, there was over $5.4M in sales. That's something like $1.6M in tax revenue to the state as it's taxed very highly.

Anyway..

Insurance upstart Clearcover raises $50 million

https://www.chicagobusiness.com/john...ses-50-million

The Chicago-based company launched in 2016 and started selling insurance online to consumers in California in 2018. It has since expanded to four more states, including Illinois. Clearcover wants to launch in at least 10 more states this year. CEO Kyle Nakatsuji says the company tripled its number of policies last year and is on pace to reach an annual sales rate of about $70 million.

Headcount has grown to 130 from just under 50 a year ago. The company plans to hire more than 50 people this year—mostly in product, engineering and data scienc

[jboy560]

Crain’s posted an interesting article today. Apparently Chicago is the 9th highest paying metro.

https://www.chicagobusiness.com/econ...ng-metro-areas

[Arm&Kedzie]

Originally Posted by marothisu

Apparently in the first 2 days of Marijuana legalization in Illinois, there was over $5.4M in sales. That's something like $1.6M in tax revenue to the state as it's taxed very highly.

Pretty impressive.. and if every dispensary in Chicago hadn't run out of product in the first 24hrs.. it would likely have been much higher.

[Baronvonellis]

Originally Posted by Arm&Kedzie

Pretty impressive.. and if every dispensary in Chicago hadn't run out of product in the first 24hrs.. it would likely have been much higher.

How High???

[Vlajos]

Developer scores tax-break funds for apartments near Pilsen

https://www.chicagobusiness.com/comm...ts-near-pilsen

Interesting article on Opportunity Zone tax incentives. Apparently there are very few underway in Chicago, while across the country, there are quite a lot underway. From the article:

"Pilsen Gateway is one of the few opportunity zone projects underway in Chicago, and possibly the biggest. It is the first in Chicago for Origin, which launched an opportunity zone investment fund in 2018 but until now had bypassed opportunity zones in its hometown for those in cities like Phoenix, Charlotte and Houston.

Some investors say the program hasn’t taken off in Chicago because few of the city’s opportunity zones are in transitioning neighborhoods, places that need a boost but are in the path of development. Many are in depressed areas that are still too risky, even with tax incentives, the investors say."

The City seems to have wasted this federally funded development tool unfortunately.

[bnk]

https://www.chicagotribune.com/busin...lza-story.html

Deadspin moving to Chicago after New York staff walkout shut down sports website

By Robert Channick

Chicago Tribune |
Jan 10, 2020 | 2:04 PM


Deadspin, the irreverent sports website that was all but shut down by a mass exodus of New York staffers in October, is moving to Chicago to relaunch under the same roof as the co-owned humor site, The Onion.


...

[sixo1]

Happy New Year ya'll!

George Shultz Innovation Fund invests in two UChicago startups. DrLullaby, a digital platform that allows parents to access evidence-based strategies that optimize sleep for kids and families, was awarded $250,000; and Laiya, a provider of new tools for the next generation of drug development, was awarded $250,000.

https://polsky.uchicago.edu/2020/01/...e-fall-finals/

[sixo1]

Fuyao Glass America will add 40 employees to its plant near Mount Zion.

https://herald-review.com/business/l...557e8230c.html

[Via Chicago]

Originally Posted by sixo1

Fuyao Glass America will add 40 employees to its plant near Mount Zion.

https://herald-review.com/business/l...557e8230c.html

having just watched American Factory last night (Netflix documentary on this company which is up for an Oscar. includes such hits including blatant OSHA and NLRB violations captured ON CAMERA, to say nothing of this companys attitudes towards workers rights in general..."Why cant we just force them to work overtime?"), cant say Id be too excited as a prospective hiree.

https://www.youtube.com/watch?v=m36QeKOJ2Fc

[Handro]

Originally Posted by Via Chicago

having just watched American Factory last night (Netflix documentary on this company which is up for an Oscar. includes such hits including blatant OSHA and NLRB violations captured ON CAMERA, to say nothing of this companys attitudes towards workers rights in general..."Why cant we just force them to work overtime?"), cant say Id be too excited as a prospective hiree.

https://www.youtube.com/watch?v=m36QeKOJ2Fc

thanks for the heads up, watching this tonight.

[Vlajos]

From suburban bubble to urban bustle

https://www.chicagotribune.com/busin...6ty-story.html

I thought this was a good read on McDonalds move to downtown.

[killaviews]

Originally Posted by Vlajos

From suburban bubble to urban bustle

https://www.chicagotribune.com/busin...6ty-story.html

I thought this was a good read on McDonalds move to downtown.

That is a great read. Can someone please send to the CEO of Discover for me?

I imagine the drug companies have unique challenges when it comes to relocating to the city - I assume they need lab space. But what the heck are Companies like Discover and Allstate still doing in the boonies?

[SIGSEGV]

There's plenty of room for lab space in the IMñD.

In other need, apparently Uber will be subleasing some of their space in OPO? http://www.sloopin.com/2020/01/uber-...-post.html?m=1


Not too surprising since Uber can fall apart any day now.

[SIGSEGV]

Amazon nears deal to put big distribution center in Pullman
The e-commerce giant has an agreement in principle for a $60 million, 150,000-square-foot facility that will employ up to 300 workers. That's the word from the local alderman.

https://www.chicagobusiness.com/greg...center-pullman

[jpIllInoIs]

Originally Posted by SIGSEGV

https://www.chicagobusiness.com/greg...center-pullman

Article stats Amazon will be seeking county tax cut of 50%. Not sure why we should be giving tax cuts to these distribution warehouses. They have to be close to the city. Their business model is increasingly moving to same day or 24 hr delivery. Pullman is increasingly in-demand for distribution logistics. Should be able to get equitable tax payments for the location.

[marothisu]

PayPal co-founder Max Levchin opens Chicago office for Affirm

https://www.chicagobusiness.com/john...-office-affirm

Affirm, an online consumer-lending company founded by PayPal co-founder and University of Illinois graduate Max Levchin, has opened a Chicago office that will have more than 100 people by the end of the year.

The San Francisco-based company, which is a “unicorn” startup valued at more than $1 billion, says it already has hired 20 people. It plans to hire 100 more in jobs that include sales, support, product and engineering roles.

Affirm, like many Bay Area tech companies, is looking for talent in cities that are less expensive and less competitive than its home market. It joins Google, Glassdoor, Facebook, Salesforce, Uber and ServiceNow in building out teams here.

Levchin shopped Chicago for more than a year, wanting to make sure there was enough tech talent. A Ukrainian immigrant who grew up in Chicago, Levchin launched Affirm in 2012. The company has raised nearly $1 billion.

..

Affirm did not seek any state incentives to expand here.

The office will be in River North somewhere. They have 20 employees in Chicago at the moment.


From: https://www.americaninno.com/chicago...s-to-hire-100/

“Chicago was my first home after immigrating to the United States when I was a teenager and, in many ways, it still feels like home,“ Levchin said in a statement.

Affirm said it chose Chicago for its access to talent and its central U.S. location, which bridges the gap between its existing offices on the coasts.

[IrishIllini]

https://www.chicagobusiness.com/tech...employees-year

[marothisu]

Originally Posted by IrishIllini

https://www.chicagobusiness.com/tech...employees-year

That's good. I know a few people who have worked for them and liked it quite a bit. They recruited me hard for a bit when I lived in Chicago but that's their MO. They only recruit people from the big firms - Deloitte, Accenture, IBM, etc.