CHICAGO | General Developments

[Marcu]

2 developers planning 300 Northwest Side homes

(Crain's) — In separate proposals, two developers have rival plans for more than 300 new homes on 13 acres of former industrial land on Chicago’s Northwest Side.

The projects are a sign that despite the current slowdown, city developers who build moderately priced homes are preparing for an eventual upturn.

“You’ve got to wait until the market picks up a little,” says developer David Dubin, who is planning the larger of the two projects. “You know what’s going on, unless you’ve been away for two years.”

The development sites are roughly two blocks south of Fullerton Avenue, and bounded by Oak Park and Natchez avenues and a Metra rail line. The surrounding area has already residential, says Ald. William J. P. Banks, (36th), whose ward includes the two parcels.

“You’re talking about an area where families can settle in,” he says.

Mr. Dubin is proposing 213 town houses and 20 single-family homes on a 9.5-acre parcel that has an address of 2208-10 N. Natchez Ave. His company, Dubin Residential, has a contract to buy a long-shuttered Illinois Gear manufacturing plant from Regal Beloit Corp., a Wisconsin manufacturing concern.

“It’s a strong neighborhood on the Northwest Side, middle-income,” says Mr. Dubin, who specializes in neighborhood development. He says he hasn’t determined what prices he will charge.

Mr. Dubin’s proposal is “an absolutely gorgeous project, and they have downsized considerably,” Alderman Banks says. “The green space is extreme.”

Mr. Dubin admits he was outbid on the other parcel, a four-acre site north of the one he controls. “I can only pay so much,” he says.

On that site, with an address of 2208-10 Natchez Ave., Chicago-based Park Development Group LLC is proposing to build 90 units in a series of 15 three-story buildings. Park Development has a contract to buy the site from auto dealer Jacobs’ Twin Buick-Pontiac LLC, public records show. The property is currently used to store cars.

“If interests continue to stabilize or come down, the unit mix that we have there would be a good first-time buyer product,” says Joseph DiCosola of Park Development, who estimates that prices for the development will begin at about $255,000 per home. He recently completed a similar, 54-unit project on a neighboring site.

The Alderman says he hasn’t seen the Mr. DiCosola’s proposal, which is slightly denser than Mr. Dubin’s.
“We have a lot of scrutiny left to go on this one,” Alderman Banks says. “They may have to clip some units.”

Both proposals must still be approved by the Department of Planning and Development and the City Council.

[SamInTheLoop]

Thanks for posting the Spertus photo, Tom. It looks like it's shaping up nicely. I'll have to walk down there soon and check it out.

[SamInTheLoop]

Speaking of Kruek & Sexton-designed projects, has anyone heard any news recently about the new Children's Museum in Grant Park? I still have mixed feelings about the location choice, but I'm very interested to see what K&S come up with...of course I guess a lot of the structure will be underground...

[honte]

^ Bob O'Neil mentioned it at the CS meeting. The way he was describing it, it sure sounded like a Daley Done Deal.

[Chi_Coruscant]

I thought it was interesting, especially the service hours stay opened till 4am!!!

Burgers for everyone -- except Elvis
River North spot to offer 24 flavors, but no Hunka Hunka
http://www.suntimes.com/news/metro/319920,CST-NWS-burger30.article

March 30, 2007
BY JANET RAUSA FULLER Staff Reporter

How many ways can you dress a burger? Leon Toia would say at least 24.

That's how many burgers will be on the menu at his newest restaurant venture, Hop Haus, opening soon in River North.

Burgers at Hop Haus will have some unusual toppings like peanut butter, bannanas and strawberries. You can even have an elk burger.

Toia's not just talking about Swiss vs. American cheese, either -- try buffalo, elk and wild boar burgers paired with boutique beers. Toia has recruited two employees at the hypermodern restaurant Alinea, sommelier Justin Leone and cook Andrew Brochu, to consult on the menus.

Burgers popular
Toia, owner of the Leona's restaurant chain, said he is converting the Leona's outpost at 646 N. Franklin to capitalize on the late-night crowd. Hop Haus will stay open until 4 a.m. -- 5 a.m. on Saturdays -- and will offer 33 beers and 25 wines.
Burgers are a good bet. They're the most-ordered entree at a restaurant, according to the NPD Group, which tracks people's eating patterns.

"I've done Leona's, and it borders on the Cheesecake Factory in terms of the menu, but it's a very difficult exercise. So I said, let's just do burgers great and create as much diversity and excitement and flavors as we can," Toia said.

When it comes to flavors, anything goes -- almost. One concoction by Brochu and Leone, both 25, was an ode to Elvis Presley involving a deep-fried patty, bacon, peanut butter, bananas and strawberries.

"We're playing on the PB&J and Elvis idea all in one," Leone said. And, he added, it worked.

'Too far out there'
"The main components of every balanced dish should be sweet, salt to cut the richness, and then a little acid," Leone said.
But the so-called Hunka Hunka Burnin' Love burger was "too far out there" for Toia. He isn't even sure if the other wild-game burgers will fly, though he is keeping those on the menu.

"They'll probably grow legs and run out the door," he said.

Hop Haus is slated to open April 9. General manager John Kinder says the Elvis burger may still make an appearance as a special.

[the urban politician]

Not to be a downer, but say bye-bye to Tribune Corp.

Chicago's only media powerhouse will be gone soon (to LA Billionaires). Sometimes I regret following the Chicago economic scene--it's so damn depressing. Nobody can do anything about these losses--we just sit by and watch a city throw away its dominance in so many things.. :babyeat:

[spyguy]

^Don't be so down, or at least not yet. From what I've read and heard, Zell's offer is still preferred. At the same time, of course, anything can happen.

[SamInTheLoop]

^ That's right - if it's between Zell and Burkle's group, the word is Zell is heavily favored...

[the urban politician]

^ That's right - if it's between Zell and Burkle's group, the word is Zell is heavily favored...

^ Just out of curiosity, why is that the case?

Is it simply local bias or does he actually have a superior offer?

[Pandemonious]

^ ^
Right, that would be an AMESOME view! Th one thing I would do at the end of the pier would be to make sort of a viewing area to look at the skyline.

I agree, but it looks like they already included something of that sort. While not at the very end, that eliptical bulge in the pier is pretty far out and I assume for just that purpose.


Edit: Shit.. was responding to a post from 5 pages ago... didnt even notice this thread had gotten so many pages added since I last read it. Been so busy..

[SamInTheLoop]

^ Just out of curiosity, why is that the case?

Is it simply local bias or does he actually have a superior offer?

imo a significant part of it is related to the whole Chicago board vs. Chandler family (LA-based) fight - the Chicago-based board likely doesn't want to give in to LA investors.......also probably a big factor is simply Zell's track record for execution - perhaps he's also viewed as more likely than the Burkle group to close on the deal (that one is more speculation on my part)...

[Marcu]

Originally Posted by the urban politician
^ Just out of curiosity, why is that the case?

Is it simply local bias or does he actually have a superior offer?

On one hand, Chicago is a global city with people from all over the world. On the other hand, there seems to be this distrust of outsiders more commonly seen in smaller midwest towns that are more dependent on a few set of companies. The deal for the Trib, the potential ICE/CBOT merger, Macys, or any talk about a bank buyup seems to trigger a response among Chicagoans that's more common to places like Detroit or Columbus than to other world class cities like LA and New York that seem to welcome outside commercial influences.

If the LA firm buys up the Trib, we'll survive. We're not a one industry town and we should welcome Chicago's economic connection to the world, rather than fear it just because it may mean losing a Chicago brand. In any case, most jobs will likely stay in Chicago - which should be our real worry not whether outsiders will come in and buy up our companies.

[sentinel]

On one hand, Chicago is a global city with people from all over the world. On the other hand, there seems to be this distrust of outsiders more commonly seen in smaller midwest towns that are more dependent on a few set of companies. The deal for the Trib, the potential ICE/CBOT merger, Macys, or any talk about a bank buyup seems to trigger a response among Chicagoans that's more common to places like Detroit or Columbus than to other world class cities like LA and New York that seem to welcome outside commercial influences.

If the LA firm buys up the Trib, we'll survive. We're not a one industry town and we should welcome Chicago's economic connection to the world, rather than fear it just because it may mean losing a Chicago brand. In any case, most jobs will likely stay in Chicago - which should be our real worry not whether outsiders will come in and buy up our companies.

But that's the key isn't it, and I think the biggest concern of those of us who worry about Chicago can potentially lose about a lot of these business issues: with the Tribune company, if the Chandler family deal goes thru and then Tribune Media is sent to LA, will the jobs be moved to LA as well; and the same for ICE's hostile bid for CBOT: it's an Atlanta company and regardless of their CEO supposedly buying something in Chicago for his family to move into, no established company and it's leader will ever seriously consider relocating an entire corporation to another city which is also a major competitor as a permanent resolution; it's smoke and mirrors to appease greedy stockholders who want that extra $1-2 per share, when their ignorace blinds them from seeing the bigger picture (Boeing was the exception not the rule, I'm afraid; and Chicago was just lucky to have won that relocation from WA.). The thing is, regardless of national affiliation (as being part of the USA), my feeling is that because of the massive organs of commerce in this country which really rule everything, we're almost entering a new era of the rule by City-state, comparable to the Renaissance when a city with power controlled a region, not how in America where a city grows into a region that is already established (as happened in the 18th and 19th centuries, with the colonies, then the states and territories). That is why you see so many charts and polls now-a-days, as was posted in these forums a while ago, that ranked the GDP of cities and their metropolitan regions and not of a state, territory or even country. I think that is where the trend is heading: every regional City-state for itself and it will only get worse, so that is why it is so important, in my opinion that companies and shareholders think more broadly in how they see their business located and if they want to keep everything local, they should and not be tempted by outsider offerings. It sounds antiquated but there is historical precedence and it's scary.

[SamInTheLoop]

There was a front-page article in today's Tribune featuring yet more oh-so-suspect biannual population estimates from the Census Bureau, and some analysis by a Loyala demographer who seems to eagerly eat it all up. I want to see some journalists actually do their job and examine the Bureau's shoddy track record with these estimates in redeveloping urban areas, particularly Chicago, instead of starting their article with the assumption that the Census Bureau is actually publishing facts.......that's probably far too much to ask however...

[SamInTheLoop]

Does anybody know when the North-South Wacker reconstruction project will begin? I had thought it was planned for 2007, but I haven't heard anything about it in quite some time. Is it perhaps next year?

[bnk]

Zell wins bidding for Tribune: WSJ

Reuters
Monday, April 2, 2007; 8:41 AM

http://www.washingtonpost.com/wp-dyn...200353_pf.html



NEW YORK (Reuters) - Chicago real estate magnate Sam Zell won the bidding for newspaper publisher and broadcaster Tribune Co. <TRB.N>, The Wall Street Journal reported on Monday, citing a person familiar with the matter.

A deal with Zell could freeze out Los Angeles billionaire philanthropist Eli Broad and his partner, billionaire grocery store investor Ron Burkle, who had also bid for Tribune.

Tribune, owner of leading U.S. newspapers including the Los Angeles Times, Chicago Tribune, Newsday and The Baltimore Sun, has been pushing Zell to raise his bid, which had been close to $34 a share, the New York Times said on Sunday.

Tribune shares rose 2.8 percent to $33 in premarket trading from Friday's close of $32.11.

Broad and Burkle last week made a bid of $34 per share including $500 million in cash, a source said. That offer was worth about $8.21 billion, based on Tribune's 241.4 million shares outstanding as of December 31.

Representatives for Tribune, Zell, Broad and Burkle were not immediately available for comment.

The Journal said the exact terms of Zell's offer should be disclosed on Monday morning, including a low break-up fee that could encourage Broad and Burkle to make a higher offer.

Media reports have said Zell's plan included $300 million of his own cash and was structured as an employee stock ownership plan, as is Broad's and Burke's bid.

AUCTION PROCESS

Tribune, which is also a major TV broadcaster and owns the Chicago Cubs baseball team, has been fielding several offers for a buyout or the spinoff of various divisions after its largest shareholder, the Chandler Trusts, publicly aired their anger with the decline in the company's stock price last year.

The Chicago-based company has been considering a spinoff of its television operations as well as the Cubs, leaving it as a newspaper publisher, according to reports.

Tribune started soliciting offers last fall, but was unimpressed with what it received. It said in January that it would consider options that it could achieve on its own.

"Tribune is one of the biggest companies in the business so I think it was difficult for another media company (to bid), plus there were complications with the cross-ownership issues ... but it looks like they found a buyer," said Benchmark Co. analyst Ed Atorino. "I think it's good news for the shareholders, maybe good news for the group."

Like most U.S. newspaper publishers, Tribune has seen advertising revenue and circulation fall at its papers as more people use the Internet to get news and entertainment.

The company has stakes in online ventures, including jobs site Careerbuilder.com and local news search service Topix.net. It co-owns those companies with fellow publishers Gannett Co. Inc. <GCI.N> and McClatchy Co. <MNI.N>

A special board committee met over the weekend to decide which option it preferred, with Tribune having said earlier that it would make a decision by March 31.

Any successful bidder would have to deal with the approximately $5 billion in debt that Tribune has on its balance sheet, according to its annual report filed on February 26.

[pottebaum]

You beat me to it!

Good news, though. :tup:

[museumparktom]

wrong thread

[museumparktom]

________________________________________

Printed from ChicagoBusiness.com
________________________________________

By Eddie Baeb April 02, 2007

The downtown office vacancy rate declined in the first quarter to its lowest level in almost four years on increasing demand from companies looking to expand or add new office space.

DOWNTOWN VACANCY
The overall office vacancy rate fell in every submarket in the first quarter.

1st qtr. 2007 4th qtr. 2006 1st qtr. 2006
Central Loop 11.7% 12.0% 13.2%
East Loop 14.1% 14.7% 18.2%
N. Michigan Ave. 13.2% 14.3% 13.7%
River North 17.7% 19.8% 20.7%
West Loop 13.2% 14.4% 15.1%
Total 13.0% 13.8% 15.1%
Source: CB Richard Ellis Inc.
The vacancy rate fell to 13.0% in the quarter from 13.8% at the end of last year, according to CB Richard Ellis Inc. Vacancies downtown have fallen five straight quarters since hitting a nine-year high of 16% in the fourth quarter of 2005.

“It’s clearly a different market than it has been,” says Gregg Witt, a senior vice-president in the Chicago office of CB Richard Ellis who represents tenants. “It seems like every lease we’re doing tends to be a little bigger than the previous one. I think people are more confident that they’re going to be seeing more growth.”

DEMAND FOR SPACE
Demand for office space, as measured by net absorption, increased during the first quarter with the most activity among top-quality, so-called Class A space. Figures below are in square feet.

1st qtr. 2007 4th qtr. 2006 1st qtr. 2006
Class A 583,946 228,258 373,188
Class B 23,130 186,643 276,066
Class C 60,982 -30,255 -86,840
Total 668,058 384,646 562,414

Source: CB Richard Ellis Inc.
Mr. Witt expects vacancies to continue falling this year and next until five new buildings with more than 4 million square feet of space open in late 2008 and 2009. He says some landlords earlier this year began asking for higher rents, a trend Mr. Witt figures will continue as the market keeps moving landlords’ way.

The vacancy rate is the lowest since the second quarter of 2003, when it stood at 12.6%, according to data from El Segundo, Calif.-based CB Richard Ellis.

Demand, as gauged by net absorption, was 668,058 square feet during the quarter compared with 563,414 square feet in the year-ago period. Net absorption is the change in the amount of leased and occupied space compared with the prior period. A positive number is a sign of business expansion.

Last quarter’s net absorption was the highest since the second quarter of 2000, when the technology and telecommunications industries were booming.
Mr. Witt says expansions by law firms and the financial services industry are driving the growth now, though he noted that demand in the market is more diversified than it was during the tech boom.

“It’s a good start to the year,” Mr. Witt says.
The greatest demand was for top-tier, so-called Class A office space, with net absorption of 583,946 square feet in the quarter. New towers such as the Hyatt Center building at 71 S. Wacker Drive and 111 S. Wacker have benefited and are enjoying low vacancies.

Related story: Leases put Hyatt Center vacancy under 5%

Mr. Witt says some firms, anticipating growth, are even adding space to recent leases. Law firm Jenner & Block LLP, for instance, earlier this month leased 28,000 additional square feet at a new tower being built at 353 N. Clark St. Jenner originally signed a lease for about 390,000 square feet.

The three largest leases during the quarter, according to CB Richard Ellis, are:
• Law firm Skadden Arps Slate Meagher & Flom LLP signed a lease for 175,000 square feet at a new tower to be built by John Buck Co. at 155 N. Wacker Drive.
• Cash America International Inc., a payday loan company, leased 105,000 square feet at 200 W. Jackson Blvd.
• Law firm Segal McCambridge Singer & Mahoney Ltd. leased 63,813 square feet in the Sears Tower at 233 S. Wacker. The firm is moving from 333 N. Wabash Ave. where it has about 50,000 square feet.

[the urban politician]

You beat me to it!

Good news, though. :tup:

^ Those LA dudes could still cough up a better offer. The break-up fee is a surprisingly low $25 million

[StormFire]

On one hand, Chicago is a global city with people from all over the world. On the other hand, there seems to be this distrust of outsiders more commonly seen in smaller midwest towns that are more dependent on a few set of companies. The deal for the Trib, the potential ICE/CBOT merger, Macys, or any talk about a bank buyup seems to trigger a response among Chicagoans that's more common to places like Detroit or Columbus than to other world class cities like LA and New York that seem to welcome outside commercial influences.

If the LA firm buys up the Trib, we'll survive. We're not a one industry town and we should welcome Chicago's economic connection to the world, rather than fear it just because it may mean losing a Chicago brand. In any case, most jobs will likely stay in Chicago - which should be our real worry not whether outsiders will come in and buy up our companies.


This is ancedotal, but I have worked for a few Chicago companies that have been bought out. Yes, jobs to stay in Chicago, but any room for material advancement goes out of state. And with attrition, a lot of the jobs that stay eventually get lost. Besides winning Boeing and the Stone-Smurfit and Sears-Kmart (there's a prize) mergers, Chicago has lost a ton of Fortune 500 HQs over the last decade or two. And it is not like we have gained back at least 1/2 of what we lost. Besides prestige, there is a huge loss of high paying jobs. The good news is that Chicago has lots of growing companies, but those growing companies and incoming fortune 500s are still losing to the outgoing (at least in stature).

Detroit and Columbus have reason to worry - really, nobody is going to move there from somewhere else (seems like everybody moves to Dallas for some reason). But Chicago used to almost rival New York for large corporate HQs, now we are in line with a lot of smaller cities.

Now this is all my anecdotal observation and is a lot of generalities, but it is in the ballpark. And as a Chicagoan with civic pride (and an continued interest in working here), it bums me out when companies leave or go out of business. Here is a partial list: First Chicago/Bank One, Morton Salt, Amoco, Ameritech, Dean Foods, Helene Curtis, Quaker Oats, Kraft (kind of), Sara Lee (for the 'burbs - doesn't really count...), Aurther Anderson, Zenith....

[Mr Downtown]

[The Census Bureau has a] shoddy track record with these estimates in redeveloping urban areas, particularly Chicago

Can you cite an example where the Census Bureau missed the mark by any significant margin? Some sort of citation, please, not a vague "I remember hearing on the radio in the mid 90s them saying that Chicago was shrinking . . ."

[Marcu]

This is ancedotal, but I have worked for a few Chicago companies that have been bought out. Yes, jobs to stay in Chicago, but any room for material advancement goes out of state. And with attrition, a lot of the jobs that stay eventually get lost. Besides winning Boeing and the Stone-Smurfit and Sears-Kmart (there's a prize) mergers, Chicago has lost a ton of Fortune 500 HQs over the last decade or two. And it is not like we have gained back at least 1/2 of what we lost. Besides prestige, there is a huge loss of high paying jobs. The good news is that Chicago has lots of growing companies, but those growing companies and incoming fortune 500s are still losing to the outgoing (at least in stature).

Detroit and Columbus have reason to worry - really, nobody is going to move there from somewhere else (seems like everybody moves to Dallas for some reason). But Chicago used to almost rival New York for large corporate HQs, now we are in line with a lot of smaller cities.

Now this is all my anecdotal observation and is a lot of generalities, but it is in the ballpark. And as a Chicagoan with civic pride (and an continued interest in working here), it bums me out when companies leave or go out of business. Here is a partial list: First Chicago/Bank One, Morton Salt, Amoco, Ameritech, Dean Foods, Helene Curtis, Quaker Oats, Kraft (kind of), Sara Lee (for the 'burbs - doesn't really count...), Aurther Anderson, Zenith....

Should Chicago try to hold on (and recruit) corporate headquarters? Absolutely. But the loss of the HQs you listed has really not adversly affected Chicago in the long-run. An average Chicagoan today is much better off than he or she was 15 or 20 or 30 years ago when before the city lost its HQs. The city is doing better than ever economically and there are more high paying jobs here than ever before.

I guess what I'm mostly concerned with is this fear of globalization surrounding Chicago. I've independly heard from people that relocated here from DC, New York, and the UK that Chicago seems to have this insecurity about its position in the world. When it comes to the city's economy, Chicagoans fear outside influences when they should welcome them as it'll only make the city more globally connected; which in the long-run can only help the city.

[Mr Roboto]

Can you cite an example where the Census Bureau missed the mark by any significant margin? Some sort of citation, please, not a vague "I remember hearing on the radio in the mid 90s them saying that Chicago was shrinking . . ."

Check out these links: http://www.usmayors.org/uscm/wash_update/census/census_findings.htm

http://www.demographia.com/db-cenerr-city.htm

One says they undercounted chicago in the 90's by 160,000 (they predicted a loss of about 50,000 - Ive heard this one more often), the other by 95,000. Im not sure which is more accurate, but they both basically say the census bureau was off big-time. It also negatively affected the amount of federal and state aid recieved by the city.

[the urban politician]

Should Chicago try to hold on (and recruit) corporate headquarters? Absolutely. But the loss of the HQs you listed has really not adversly affected Chicago in the long-run. An average Chicagoan today is much better off than he or she was 15 or 20 or 30 years ago when before the city lost its HQs. The city is doing better than ever economically and there are more high paying jobs here than ever before.

^ While we're all asking eachother to site specific data, do you actually have data showing that the city is doing "better" and that Chicago has more "high paying jobs" than it did in the past? Just curious

I guess what I'm mostly concerned with is this fear of globalization surrounding Chicago. I've independly heard from people that relocated here from DC, New York, and the UK that Chicago seems to have this insecurity about its position in the world. When it comes to the city's economy, Chicagoans fear outside influences when they should welcome them as it'll only make the city more globally connected; which in the long-run can only help the city.

^ Chicago has every right to be scared. It lost half its major HQ, it lost its second city status to LA, it's often overlooked, it's surrounded by a rustbelt full of downtrodden economies (until the recent revival we're seeing, I guess), and EVERYBODY is flocking to the coasts. All you ever hear about is "New York this" or "LA that" or "lets all run to Arizona!". This when 50 years ago America's economy was NY and Chicago (at least in people's minds). Chicago is certainly a magnet but people aren't coming in droves the way they are to Miami, LA, Houston, etc etc etc.

I can understand why civic leaders are concerned. Look at Inc, or Fortune, or Fast Company, or the hordes of other magazines that list the fastest-growing companies in the US. I read these lists regularly--year after year 90% of them are in California, NY, or Massachussets, and perhaps 1 or (if we're lucky) 2 will be from the Chicago area. Usually it'll be some cute little chocolate-maker or something. Where are those swarms of growing companies that would replace a Tribune Co., or a United Airlines, or a Motorola? If Chicago were to lose one of those I'm guessing we shouldn't expect a replacement.

I realize that I sound very pessimistic here, but I'm simply trying to explain why Chicagoans are so worried about globalization and what it would mean to their city's fortunes. I'm actually glad Chicagoans are like that--if they simply didn't care then Chicago wouldn't be where it is today.

[BorisMolotov]

Chicago is certainly a magnet but people aren't coming in droves the way they are to Miami, LA, Houston, etc etc etc.

Its ok, they'll all be back in 50 years when all those cities are underwater :tup:

[Mr Downtown]

One says they undercounted chicago in the 90's by 160,000 (they predicted a loss of about 50,000 - Ive heard this one more often), the other by 95,000. Im not sure which is more accurate, but they both basically say the census bureau was off big-time.

Interesting choice of citations. One is from big-city mayors in 1999 asking for a statistical adjustment in 2000 because they believe big cities will be undercounted. The other is from a noted conservative using the Census Bureau's predictive inability 1990-2000 to explain why statistical adjustment is a bad idea. In any case, the Republican Congress--fearing that suburban redistricting might be diluted by Democratic urbanites--forbade any statistical adjustment of the 2000 Census.

Now personally, I agree with the argument that statistical adjustment would give us more accurate results. Undercounts are associated with poor people who don't care and Latinos who don't want to be known to the government. What I don't see is how Chicago's undercount would be any worse than LA, Atlanta, San Antonio, Cairo, Flint, or Yuma.

The idea that "revitalizing" cities are vastly undercounted by the Census Bureau or its mid-decade estimates seems to rely on the idea that Chicago's residential building boom is visual evidence of population increase. But the new dwelling units in the central city are dwarfed by two other continuing trends: increasing numbers of Hispanic families and shrinking household sizes for whites and blacks.

[alex1]

too bad Zell won out. In a rare instance, I'd rather the out of state team win. It's all politics to me of course. Two liberals from L.A. controlling the trib would have been a welcome change. Instead, moderate/conservative Zell wins out.

oh well, not over yet.

[Alliance]

Its ok, they'll all be back in 50 years when all those cities are underwater :tup:

:haha:

[Chicago3rd]

Can you cite an example where the Census Bureau missed the mark by any significant margin? Some sort of citation, please, not a vague "I remember hearing on the radio in the mid 90s them saying that Chicago was shrinking . . ."
I thought this was about the yearly estimates that the Census board made and how far they turned out to be wrong. In the 1990's they showed Chicago losing people when the office 2000 census showed an increase? And I thought this was brought up because we keep hearing how Chicago is still losing population even though there is tons of growth and infill.

[Marcu]

Originally Posted by The Urban Politician
^ While we're all asking eachother to site specific data, do you actually have data showing that the city is doing "better" and that Chicago has more "high paying jobs" than it did in the past? Just curious


Just figured that's one of those assumptions we'd feel comfortable making. Isn't there a general consensus that the city was in the toilet in the mid 80s. And the US economy as a whole more than doubled since. I'm sure the stats are out there. I just don't feel like looking for them and I don't feel like turning this into one of those "does gdp really mean anything?" threads.

[SamInTheLoop]

Can you cite an example where the Census Bureau missed the mark by any significant margin? Some sort of citation, please, not a vague "I remember hearing on the radio in the mid 90s them saying that Chicago was shrinking . . ."


Mr. Downtown – thanks for putting me up to the task. I gladly accept.
The Census Bureau in the 90s (the first decade in which we experienced this large-scale reinvestment and redevelopment in urban cores) proved itself very ill-equipped in inter-decennial census estimates of redeveloping cities. Here are but a few examples of cities in which they were waaaaaay off the mark. The 1990s estimates data come straight from the Census Bureau website.

(www.census.gov/popest/archives/1990s/su-99-07/)


I calculated the average annual total population growth rate using their estimates from the 90s (July 1990-July 1999) vs. the average annual increase in total population using the official 1990 and 2000 census counts. Here are but a few cities that suffered from the Bureau’s atrocious inter-decennial census esimates:

Avg ann grth per official census avg ann grth per 90s estimates
New York 0.90% 0.14%
Chicago 0.40% 0.05%
Boston 0.26% -0.34%
Oakland 0.71% -0.87%
San Francisco 0.71% 0.33%

Source: US Bureau of the Census

The differences are clearly outrageously huge. For Chicago, the estimates showed total pop. decreasing in 3 years and increasing by less than 5,000 people in each of 5 years. Chicago’s actual growth rate turned out to be 8!!!! times that which was estimated. However, looking at some of the other cities above shows that they were screwed even worse!! For example – look at poor Oakland.

The bottom line is this – (I’ve said it before and I’ll say it again) – there are legitimate trends out there (such as newly constructed downtown homes having smaller household sizes than families that are migrating out of the city, Latinos moving to suburbs, immigrants moving directly to suburbs which could be used in arguments that the city’s population is decreasing. However, the Census Bureau (as shown above) clearly has a very poor methodology for estimating population between decennial censuses (censi?) in redeveloping urban areas. In effect, they are undercounting immigration and not capturing population growth in multifamily housing structures (both existing and newly constructed). Instead of massively overhauling their methodology (which is desperately needed, they rely on citing the trends which are holding back population growth in Chicago and other urban areas from being even greater to explain away their woefully inaccurate estimates.


Park Michigan Must Be Built (at 80 stories!)

[SamInTheLoop]

The growth rates got a little jumbled - hopefully this is easier to read.
Below - the first percentage is the actual average annual population growth based on '90 and '00 Census. The second rate is calculated average annual population growth rate based on Census annual estimates during the 90s (over the period July 1990 to July 1999). These data should put to rest any argument that the Census Bureau actually has any clue what it's doing when estimating population in redeveloping urban areas between official census counts!


New York : 0.90% vs. 0.14%
Chicago: 0.40% vs. 0.05%
Boston: 0.26% vs. -0.34%
Oakland: 0.71% vs. -0.87%
SF:: 0.71% VS. 0.33%

Source: US Bureau of the Census


Park Michigan Must Be Built (at 80 stories!)

[SamInTheLoop]

Should Chicago try to hold on (and recruit) corporate headquarters? Absolutely. But the loss of the HQs you listed has really not adversly affected Chicago in the long-run. An average Chicagoan today is much better off than he or she was 15 or 20 or 30 years ago when before the city lost its HQs. The city is doing better than ever economically and there are more high paying jobs here than ever before.

I guess what I'm mostly concerned with is this fear of globalization surrounding Chicago. I've independly heard from people that relocated here from DC, New York, and the UK that Chicago seems to have this insecurity about its position in the world. When it comes to the city's economy, Chicagoans fear outside influences when they should welcome them as it'll only make the city more globally connected; which in the long-run can only help the city.


I completely agree. The one thing Chicago needs to do to stay competitive is to embrace the global economy wholeheartedly and figure out ways to capitalize on it, use our strengths to create new service export industries. Having a global thinker as the city's mayor is definitely an asset in this regard. The one thing Chicago needs not to do is to develop protectionist attitudes and tendencies. Those only hurt in the long run. Chicago needs to continue to strengthen its connections to the entire globe and constantly seek out new ones...

[the urban politician]

I completely agree. The one thing Chicago needs to do to stay competitive is to embrace the global economy wholeheartedly and figure out ways to capitalize on it, use our strengths to create new service export industries. Having a global thinker as the city's mayor is definitely an asset in this regard. The one thing Chicago needs not to do is to develop protectionist attitudes and tendencies. Those only hurt in the long run. Chicago needs to continue to strengthen its connections to the entire globe and constantly seek out new ones...

^ Chicago's banking industry is often regarded as GONE. It has been swallowed up in this sea of global connections.

And as a banking center, Chicago gets a humbling, pathetically low ranking (numbering in the 60's, I believe?). In this particular industry, just how has allowing this process of 'globalization' to occur benefited Chicago? How did Bank One's merger with Chase "strengthen" Chicago's connections?

A recent Crains article (posted in the Chicago Economy Thread, SSC) about a week ago laments the potential loss of a bank HQ (LaSalle Bank) if Abn Amro gets bought out. The article discusses how losing a locally-based middle-sized financier could spell trouble for growing small local companies seeking capital. While these companies could seek capital elsewhere, there are certain advantages to having a locally-based bank that understands the nuances of the local economy and can participate accordingly.

Many of you know I'm not in finance or banking, but it sounds like a logical argument and it came from Crains, a reliable (although pessimistic) source. If you guys want the link to that article just ask

[the urban politician]

^ Here's the first few paragraphs of that article. For Crains subscribers, at least, you can click the link for the whole thing:

http://www.chicagobusiness.com/cgi-b...ticle_id=27468
By Steve Daniels
LaSalle's future gets murky
Parent's sale could claim name, jobs
Odds are increasing that a buyout of LaSalle Bank Corp.'s Dutch parent company will mean big changes for the Chicago bank, ranging from a new name to thousands of job cuts — and a retreat from its core business of lending to mid-sized local companies.
LaSalle owner ABN Amro Holding N.V. confirmed last week that it's in merger talks with Britain's Barclays PLC, a deal industry insiders figure would lead to the sale of LaSalle to a large U.S. bank looking to expand or establish a presence in Chicago.

Such a sale would likely end the autonomy LaSalle has enjoyed during three decades as ABN's flagship in the United States. A U.S. buyer is likely to cut between 3,000 and 4,500 of the bank's 15,000 jobs and slap its own name on the 138 LaSalle branches in the area, industry experts say. Less certain is what would become of LaSalle's civic commitment and emphasis on serving the mid-sized, privately owned companies that form the bulk of the region's economic base. (click link above for rest...)

[tennis1400]

I hear that Zel is possibly interested in partnering with David Geffen!

[Marcu]

^ Chicago's banking industry is often regarded as GONE. It has been swallowed up in this sea of global connections.

And as a banking center, Chicago gets a humbling, pathetically low ranking (numbering in the 60's, I believe?). In this particular industry, just how has allowing this process of 'globalization' to occur benefited Chicago? How did Bank One's merger with Chase "strengthen" Chicago's connections?

A recent Crains article (posted in the Chicago Economy Thread, SSC) about a week ago laments the potential loss of a bank HQ (LaSalle Bank) if Abn Amro gets bought out. The article discusses how losing a locally-based middle-sized financier could spell trouble for growing small local companies seeking capital. While these companies could seek capital elsewhere, there are certain advantages to having a locally-based bank that understands the nuances of the local economy and can participate accordingly.

Many of you know I'm not in finance or banking, but it sounds like a logical argument and it came from Crains, a reliable (although pessimistic) source. If you guys want the link to that article just ask

Will globalization produce some losers? Certaily. But I'm not sure taking one particular situation, such as the layoff of a few thousand workers immediately after a buyout, really presents the whole story. I'm also not sure the banking stuff is accurate since it really depends on what ou measure. I've seen some contrary evidence on this forum. In any case, I’ll take the NA headquarters of a worldwide bank or even the Midwest headquarters of a national bank over the worldwide headquarters of a regional mid-size bank any day. And that’s what really separates a global city from a typical Midwestern town, where there’s a litany of “hometown” banks that market themselves as “being pro local business” (whether that’s actually true is questionable). We can't really be a global city without being connected economy.

The Crains article talks about Lasalle getting out of mid-size lending but it doesn’t address whether that market would really suffer. My guess would be that it’s fairly saturated and that’s the reason Lasalle is getting out. And if that lending market will shrink, it's probably for the better - a contraction of higher risk loans that should have never been issued to begin with.

[VivaLFuego]

Will globalization produce some losers? Certaily. But I'm not sure taking one particular situation, such as the layoff of a few thousand workers immediately after a buyout, really presents the whole story. I'm also not sure the banking stuff is accurate since it really depends on what ou measure. I've seen some contrary evidence on this forum. In any case, I’ll take the NA headquarters of a worldwide bank or even the Midwest headquarters of a national bank over the worldwide headquarters of a regional mid-size bank any day. And that’s what really separates a global city from a typical Midwestern town, where there’s a litany of “hometown” banks that market themselves as “being pro local business” (whether that’s actually true is questionable). We can't really be a global city without being connected economy.

The Crains article talks about Lasalle getting out of mid-size lending but it doesn’t address whether that market would really suffer. My guess would be that it’s fairly saturated and that’s the reason Lasalle is getting out. And if that lending market will shrink, it's probably for the better - a contraction of higher risk loans that should have never been issued to begin with.

Right, isn't Chicago 2nd in the country in terms of the number of employees in the banking field, or some other similar metric? It really does come down to how you measure it. Would anyone seriously argue that Cleveland or Charlotte are bigger financial/banking centers, just because they have banks headquartered there?

[honte]

^ Yeah, but where are the decisions being made? Where are the charitable contributions going? Ultimately, where do the biggest salaries get earned and where is this income spent?

[VivaLFuego]

^ Yeah, but where are the decisions being made? Where are the charitable contributions going? Ultimately, where do the biggest salaries get earned and where is this income spent?

Valid points of course, but conversely isn't there a promenade or some such in Millenium Park named after Chase?

I guess the short of it is, globalization and consolidation/mergers aren't necessarily bad, but it depends on the stewardship and respect displayed by the acquiring firm. Kraft is now independent and publicly traded again (woohoo for a 'new' Fortune 500 public company in the Chicago area), but even while it was part of Altria it still had a greater connection to Chicago than the East Coast.

[Marcu]

Right, isn't Chicago 2nd in the country in terms of the number of employees in the banking field, or some other similar metric? It really does come down to how you measure it. Would anyone seriously argue that Cleveland or Charlotte are bigger financial/banking centers, just because they have banks headquartered there?

Here's what I managed to find with a google search

http://pages.sbcglobal.net/samclark/dallas/Banking2.jpg
http://pages.sbcglobal.net/samclark/dallas/Banking2.jpg

Look at the number of institutions and number of offices. I'll take 300 office managers making 150k over 1 CEO making 3mil. Also, the high number of institutions creates more competition, more loan opportunities for businesses and individuals, and in the end lower interest rates. Chicago's decline as a "banking center" is greatly overstated.

[Mr Downtown]

Valid points of course, but conversely isn't there a promenade or some such in Millenium Park named after Chase?

They chiseled off the Bank One name after the park opened. Decision was probably made when it was still FirstChicago.

[aaron38]

Man, this is freakin' comedy. I'm watching the Palatine plan commission meeting talking about that proposal I posted pictures of.

One of the commission members is asking about how the 5 story building is going to 'tower' over the neighborhood, and she seriously asked if they'd done wind tunnel testing to see if this 'huge tall building' is going to funnel the wind and make the streets 'unliveable'.

Seriously, it's a 5 story building, and these podunk suburbanites are freaking out. Too big, too many people, the people who move there may have kids that will clog the schools, and there's not nearly enough parking.

They're also freaking out because the land use guide was for 79 units and the developer plans 109, and accusing the developer of pure graft for wanting to clog downtown Palatine with people.
Oh, the horror, people living downtown.

Well look at this, a woman is addressing the committee and telling them how rediculous they're being. Sanity reigns!!

[Alliance]

Man, this is freakin' comedy. I'm watching the Palatine plan commission meeting talking about that proposal I posted pictures of.

One of the commission members is asking about how the 5 story building is going to 'tower' over the neighborhood, and she seriously asked if they'd done wind tunnel testing to see if this 'huge tall building' is going to funnel the wind and make the streets 'unliveable'.

Seriously, it's a 5 story building, and these podunk suburbanites are freaking out. Too big, too many people, the people who move there may have kids that will clog the schools, and there's not nearly enough parking.

They're also freaking out because the land use guide was for 79 units and the developer plans 109, and accusing the developer of pure graft for wanting to clog downtown Palatine with people.
Oh, the horror, people living downtown.

Well look at this, a woman is addressing the committee and telling them how rediculous they're being. Sanity reigns!!

You should have heard the uproar when a 4 story was proposed in Madison that would double public library space within the mixed use and be rife with parking.

People everything, including shadows (from across the street, no less). I loled and then cried to be back into Chicago.

[simcityaustin]

Here's what I managed to find with a google search

http://pages.sbcglobal.net/samclark/dallas/Banking2.jpg
http://pages.sbcglobal.net/samclark/dallas/Banking2.jpg

Look at the number of institutions and number of offices. I'll take 300 office managers making 150k over 1 CEO making 3mil. Also, the high number of institutions creates more competition, more loan opportunities for businesses and individuals, and in the end lower interest rates. Chicago's decline as a "banking center" is greatly overstated.

Chicago owes this fact greatly to O'hare because it eliminates collection float as much as possible.

[Marcu]

Chicago owes this fact greatly to O'hare because it eliminates collection float as much as possible.

Can you explain what this means?

Thanks

[SamInTheLoop]

^ Anything else actually newsworthy in the piece about State St., or was it a lot of fluff?

[SamInTheLoop]

Will globalization produce some losers? Certaily. But I'm not sure taking one particular situation, such as the layoff of a few thousand workers immediately after a buyout, really presents the whole story. I'm also not sure the banking stuff is accurate since it really depends on what ou measure. I've seen some contrary evidence on this forum. In any case, I’ll take the NA headquarters of a worldwide bank or even the Midwest headquarters of a national bank over the worldwide headquarters of a regional mid-size bank any day. And that’s what really separates a global city from a typical Midwestern town, where there’s a litany of “hometown” banks that market themselves as “being pro local business” (whether that’s actually true is questionable). We can't really be a global city without being connected economy.

The Crains article talks about Lasalle getting out of mid-size lending but it doesn’t address whether that market would really suffer. My guess would be that it’s fairly saturated and that’s the reason Lasalle is getting out. And if that lending market will shrink, it's probably for the better - a contraction of higher risk loans that should have never been issued to begin with.

Agreed. Does anyone really think the Chicago market would go underserved? If there actually was a situation (unlikely) in which a particular banking submarket in the metro was not served very well, someone would come in and pounce on it very quickly.


Although I welcome embracing globalization (and figuring out how to capitalize on it) as the only realistic way to make sure Chicago thrives economically, I do have one worry (this was touched on earlier by others). That is, I'm disappointed with the amount of major entrepreneurial activity currently. That is one area where scores of other metros seem to be much more successful of late...

[trvlr70]

I do have one worry (this was touched on earlier by others). That is, I'm disappointed with the amount of major entrepreneurial activity currently. That is one area where scores of other metros seem to be much more successful of late...

It's the nature of Midwesterners. We are all far too conservative and don't like to take risks.

[Alliance]

It's the nature of Midwesterners. We are all far too conservative and don't like to take risks.

And we also always build really little flat houses miles apart and have no reason to build vertical ;)

[simcityaustin]

Can you explain what this means?

Thanks

Sure, it just means that businesses send all their checks to O'Hare because planes are flying in their so often and the banks pick up the checks from airport multiple times a day to 'clear' the checks (the business gets their money..aka.it moves from Accounts Recievable to actual cash) thus the time where the check is given to the business and time until redeemed is the 'floating' time, know in the business world as collection float.

[SamInTheLoop]

It's the nature of Midwesterners. We are all far too conservative and don't like to take risks.

Also, perhaps if the governor succeeds in his boneheaded tax reform, we can kill off all of what little entrepreneurship we have in Chicago...

[VivaLFuego]

Also, perhaps if the governor succeeds in his boneheaded tax reform, we can kill off all of what little entrepreneurship we have in Chicago...

Right, and encourage vertical integration (or simply moving operations out of state altogether), thereby eliminating the tax base we're hoping to exploit.

[Marcu]

Right, and encourage vertical integration (or simply moving operations out of state altogether), thereby eliminating the tax base we're hoping to exploit.

I'm glad to see that there is a general consensus on how idiotic this tax proposal is. Just imagine the effect this will have on real estate in the state. A project like the Spire will have gross receipts of over $1.5 billion yet the developer wlll be lucky to make somewhere around 20 million (if that). 1.9% of $1.5 billion is $28.5 million. So the tax will be substantially higher than the money the developer would actually take home.

Also, avoiding the tax would essentially amount to an accounting trick on the part of companies in Illinois. Instead of selling the service directly, sell it to a subsidiary in Indiana which will see it to the customer.

[Chicago3rd]

Bag's wish is to become president and he will do it on the backs of the Illinois people. Make us happy we get a tax cut in the short term and by the time people realize we are bleeding out corporations because of this tax increase he will be in a higher level job.

[SamInTheLoop]

Bag's wish is to become president and he will do it on the backs of the Illinois people. Make us happy we get a tax cut in the short term and by the time people realize we are bleeding out corporations because of this tax increase he will be in a higher level job.


Oh lord. Well I guess the good news is that the bill in its current form is pretty much DOA (the House won't buy it). The question is: how much does it get amended? Hopefully a lot. It's funny - a couple years ago he made the news by implying that his (I think this is what he said) father-in-law (Ald. Dick Mell) had a lack of "testicular fortitude" (whatever exactly that is). Whatever the precise definition is, it is clear with his lame tax plan that he has none of it. If he did, he would undertake the difficult work that is necessary to acheive some of his laudable social goals (education funding equity, access to health care, etc) by doing what everyone knows is necessary - increasing the state income tax and decreasing property taxes. Also, anyone with the most basic understanding of economics knows that in the end it is consumer taxpayers that pay just about all tax anyway (businesses are for the most part just tax collectors), as tax is passed on to the taxpaying consumer public in the form of higher prices, lower demand for goods and services, etc...

[bnk]

Oh lord. Well I guess the good news is that the bill in its current form is pretty much DOA (the House won't buy it). The question is: how much does it get amended? Hopefully a lot. It's funny - a couple years ago he made the news by implying that his (I think this is what he said) father-in-law (Ald. Dick Mell) had a lack of "testicular fortitude" (whatever exactly that is). Whatever the precise definition is, it is clear with his lame tax plan that he has none of it. Also, anyone with the most basic understanding of economics knows that in the end it is consumer taxpayers that pay just about all tax anyway (businesses are for the most part just tax collectors), as tax is passed on to the taxpaying consumer public in the form of higher prices, lower demand for goods and services, etc...

I sure hope so.

Gov needs new idea, and he needs it now
(http://www.suntimes.com/news/commentary/325530,CST-EDT-edits04a.article)

April 4, 2007

There's a reason why Gov. Blagojevich is barnstorming the state trying to drum up public support for his proposed new gross receipts tax on business. It's because his idea is going nowhere in Springfield. It's not just that Republicans and business groups are raising a ruckus. Blagojevich can't even get key Democrats on board -- Mayor Daley, Lt. Gov. Pat Quinn, Comptroller Dan Hynes and the Rev. Jesse Jackson are among those who have argued it's the wrong approach. While its broad base and low rates have appeal, they don't overcome the defects of the gross receipts tax. It's time to find Plan B.

Blagojevich wants to tax all the money a business takes in, not just its profits. Small businesses with less than $2 million in receipts would be exempt, and manufacturers would be taxed at a lower rate than service businesses. Companies subject to the new tax would no longer pay the corporate income tax. The plan would raise $7.6 billion to cover some necessary expenses, such as school funding and property tax relief, and one proposal we think should wait until the state's finances are in better shape: universal health insurance.

The governor says too many companies can now avoid paying any corporate tax because of legal loopholes.
Businesses say that will be devastating. They say the costs will be passed on to consumers, meaning "working families" will end up paying the tax. And businesses argue that they do pay their fair share, when you consider that business taxes account for about half of all state and local taxes collected each year.

Blagojevich is so far taking a hard line, refusing to break his promise to not raise income taxes or sales taxes. But he's already acknowledged the need for new revenue, something he didn't do during his campaign last year. Without the gross receipts tax, he must find other revenue sources. He and the Legislature have a variety of choices. They could and should make a more serious effort to identify loopholes that are being abused. They could explore the idea of extending the sales tax to services. They could consider a graduated income tax. They could revive the idea of a "tax swap" -- raising the income tax and lowering property taxes. But doing nothing, and letting the state's finances further deteriorate, is not an option.

[Marcu]

Oh lord. Well I guess the good news is that the bill in its current form is pretty much DOA (the House won't buy it). The question is: how much does it get amended? Hopefully a lot. It's funny - a couple years ago he made the news by implying that his (I think this is what he said) father-in-law (Ald. Dick Mell) had a lack of "testicular fortitude" (whatever exactly that is). Whatever the precise definition is, it is clear with his lame tax plan that he has none of it. If he did, he would undertake the difficult work that is necessary to acheive some of his laudable social goals (education funding equity, access to health care, etc) by doing what everyone knows is necessary - increasing the state income tax and decreasing property taxes. Also, anyone with the most basic understanding of economics knows that in the end it is consumer taxpayers that pay just about all tax anyway (businesses are for the most part just tax collectors), as tax is passed on to the taxpaying consumer public in the form of higher prices, lower demand for goods and services, etc...

Absolutely. If Blago is really worried about the rich getting richer, evil corporations not paying taxes, etc. than raise the income tax on any income over 200k to 4 or 5%. The same way the progressive fed income tax works. In the end, corporations are the people who run them so tax them directly.

He talks about fairness, but is it really fair to have low margin high volume businesses like car dealerships and repair shops, manufacturing, real estate developers and gas stations bear the burden of the state corporate tax? The 2mil exemption is a joke. A law firm with 5 lawyers can easily gross 2mil which each lawyer taking less than 100k home. Business trying to break into the market by undercutting the competition will be especially hurt.

[VivaLFuego]

Oh lord. Well I guess the good news is that the bill in its current form is pretty much DOA (the House won't buy it). The question is: how much does it get amended? Hopefully a lot. It's funny - a couple years ago he made the news by implying that his (I think this is what he said) father-in-law (Ald. Dick Mell) had a lack of "testicular fortitude" (whatever exactly that is). Whatever the precise definition is, it is clear with his lame tax plan that he has none of it. If he did, he would undertake the difficult work that is necessary to acheive some of his laudable social goals (education funding equity, access to health care, etc) by doing what everyone knows is necessary - increasing the state income tax and decreasing property taxes. Also, anyone with the most basic understanding of economics knows that in the end it is consumer taxpayers that pay just about all tax anyway (businesses are for the most part just tax collectors), as tax is passed on to the taxpaying consumer public in the form of higher prices, lower demand for goods and services, etc...
Right, Gross Receipts Tax is like a double-whammy business and sales tax, since the higher cost of supplying goods through a supply chain will merely be passed onto consumers, and the consumers will absorb that regardless of their income.

A truly awful governor, unable to build any sort of functioning coalition to pass legislation.

[bnk]

Right, Gross Receipts Tax is like a double-whammy business and sales tax, since the higher cost of supplying goods through a supply chain will merely be passed onto consumers, and the consumers will absorb that regardless of their income.

A truly awful governor, unable to build any sort of functioning coalition to pass legislation.

True and just think about the laughable thought that this man really has, or had, an eye on the Whitehouse.:haha:

What a fool he has shown himself to be to the state and to his supporters.

How did he get elected again?

Anyone? Bueller? Mell? Bueller? Mell?...

[honte]

Sooo Sorry to take our minds off of bad governors and census polls...

... but I wanted to let everyone know that tomorrow the Old Coast Guard Station off of Dime Pier will be granted Preliminary Landmark Designation.

If you all recall, this very building was spared from demolition a few years ago when it was decided that it would be cheaper to rehab it instead of demolishing. Now, it looks like it will be saved for posterity. :tup:

[Marcu]

Sure, it just means that businesses send all their checks to O'Hare because planes are flying in their so often and the banks pick up the checks from airport multiple times a day to 'clear' the checks (the business gets their money..aka.it moves from Accounts Recievable to actual cash) thus the time where the check is given to the business and time until redeemed is the 'floating' time, know in the business world as collection float.

It was my understanding that as of a few years ago, all checks are now processed electronically and don't need to be physically flown and picked up. Is this not the case?

[simcityaustin]

It was my understanding that as of a few years ago, all checks are now processed electronically and don't need to be physically flown and picked up. Is this not the case?


Not all, but a lot do. (Wal-Mart being the most obvious, giving you back the check and all) But a lot of small businesses don't, as well as people who send in checks for utilities and whatnot. Often they send your check to a PO Box near Chicago.

EDIT - I should add I'm not 100% about the above, but I know that not all checks are automatically electronically withdrawed. I can ask my professor for some clarification on Monday.

[bnk]

An interesting observation from the recent census data

Illinois

2000/ 2006

Chicago 9,098,615 / 9,505,748 4.5%

Peoria 366,875 / 370,194 0.9%

Rockford 320,204 / 348,252 8.8%

Champaign-Urbana 210,279 / 216,581 3.0%

Springfield 201,440 / 206,112 2.3%

I looks like the Rockford area is merging into Chicago at a good clip now.
I suspect most of Metro Rockfords growth is east in Boon Co.
A lot of people are waiting for the merging of Milwaukee/Chicago.
It is only a matter of time before we see the Chicago/Milwaukee/Rockford/Michigan city CSA.

http://upload.wikimedia.org/wikipedia/en/thumb/2/24/Chicagoland_Map.svg/200px-

[BorisMolotov]

Where can I find a rendering of this?

[sentinel]

Where can I find a rendering of this?

http://www.ecslimited.com/projects/chicago_art_lg.jpg

Sorry it's such a small image, this is the north elevation, facing the Millenium Park bandshell.

[spyguy]

http://www.nearwestgazette.com/update0407.htm

Disappointment over future plans for Ramova Theater

Eleventh Ward Alderman James Balcer reiterated his commitment to salvaging as many architectural details of the Ramova Theater as possible as the City moves forward with a developer to transform the space from its dilapidated condition.

Balcer said the developer is working with an architect to draft a formal, detailed proposal that would maintain the façade’s architectural details.

“The developer has a history of acquiring historical buildings and restoring them,” said Balcer, who declined to name the developer.

The developer’s current concept would turn the theater into a bakery and restaurant with possible outdoor dining. The city anticipates finalizing the deal by early summer and hopes to start construction by year end, Balcer said.

Maureen Sullivan, one of the founders of the Save the Ramova organization, said she was told she would be able to meet with the developer to review the plans. She is especially interested in preserving the theater’s marquee and lobby.

Sullivan expressed disappointment the Ramova will not be turned into a performance space, saying, “We have no places for entertainment besides bars or restaurants, and I’m tired of taking our money out of our neighborhood to the North Side or downtown. It would be nice to have a place to take our kids or meet other couples, however, if it is a restaurant, it would be nice if it was upscale or something different than the others nearby.”

http://img442.imageshack.us/img442/6154/update25td4.jpg

[spyguy]

http://www.nearwestgazette.com/Archive/0407/Newsstory0407h.htm

Balcer, CDC look to redevelop old bank property, brownfield

By April Galarza

Alderman James Balcer of the 11th Ward and a City agency, the Chicago Community Development Commission (CDC), are working to turn abandoned buildings and industrial landfills in the ward from community eyesores and potential environmental hazards to valuable productive assets.

They are considering several development proposals for the old Live Stock National Bank, a boarded-up property at the southwest corner of Pershing Road and Halsted Street in the Stockyards Annex. According to the minutes of the January 2007 CDC meeting, Halsted Pershing Morgan, LLC, is the leading candidate to redevelop the property, although the CDC is seeking additional proposals.

Constructed in 1925, the old bank building was designed by Abraham Epstein, who also designed the International Amphitheatre.

“The ideal purpose of the building would be a high-class restaurant or banquet hall,” Balcer said. “It’s a beautiful building for a restaurant.” The decision will be made by summer, and Balcer insisted only the best proposal will be accepted. If a proposal “isn’t right for the needs of the community, it will be rejected,” he said.

In Canaryville, an oblong lot running from Halsted Street on the east to 100 feet east of Morgan Street, which has been vacant for more than 25 years, is slated for “repurposing” as an industrial complex by Howard Wedren, a local development company.

Having seen more than 150 years of industrial activity, the site is classified a brownfield, and more than ten feet of landfill waste matter must be cleaned up before construction begins.

The federal Environmental Protection Agency defines brownfields as “abandoned, idled, or under-utilized industrial and commercial facilities where expansion or redevelopment is complicated by real or perceived environmental contamination.” The cost of developing the Canaryville lot is projected at $2 million, while the land is valued at $1.6 million; given that discrepancy, the CDC plan mentions selling the land for $1 as one possibility.

The CDC also will help with the extra labor costs associated with cleanup. The property will be closely monitored and tested; it must be certified as clean before construction can begin.

The site’s new purpose will be industrial because few available industrial areas remain in Chicago. Plans call for an 80,000 square foot building, and the CDC hopes the project will be complete by fall 2008.

After the site has been cleaned, the future owner will work through a broker to identify potential tenants. The building could accommodate up to three smaller tenants or one large company. Unsurprisingly at this early stage, no firms have shown interest so far.

The industrial complex will create at least 35 permanent jobs as well as temporary and contract construction jobs. The City also wants the developer to get involved with nearby Taylor-Laurdsen Playground Park (also known as Boyce Park).

“We are trying to get developers to be part of the community, and I think this is a good way to do it,” said John Malloy from the Chicago Department of Planning and Development.

http://img444.imageshack.us/img444/4709/newsst13mn5.jpg

[spyguy]

http://www.nearwestgazette.com/Archive/0407/Newsstory0407r.htm

Rush gets go-ahead for orthopedic care facility

By Susan S. Stevens

Illinois Medical District (IMD) commissioners have given Rush University Medical Center permission to build a five-story orthopedic ambulatory care facility on the southwest corner of Ashland Avenue and Harrison Street.

IMD commission board members at their Feb. 27 meeting also approved construction of a parking lot for the University of Illinois at Chicago on the southwest corner of Roosevelt Road and Wood Street.

The IMD, which oversees land use and zoning in the area, approved the Rush project only after Rush officials made modifications to address IMD concerns about traffic flow in the area. The project now will provide underground loading docks and create turn restrictions.

“No left turns will be permitted off of West Harrison between Ashland Avenue and Paulina,” IMD Executive Director Samuel Pruett said.

Rush will build a central energy plant and parking deck extension at the same time.

“It is a well designed project,” said commission member John E. Partelow.

“The IMD commission applauds Rush's bold expansion plans,” Pruett said.

The $137 million project will consolidate outpatient offices and facilities of Rush’s growing Department of Orthopedics. Rush officials expect to begin construction in July and complete all components by 2009.

“This represents the first, visible phase of construction in our campus transformation and is the necessary first step required to advance our other phases that will include construction of a new inpatient clinical facility,” said Peter Butler, Rush executive vice president and chief operating officer.

Later phases will upgrade Rush’s complex at a cost of $810 million; improvements will include a hospital addition, a new emergency medical center, and renovations of existing buildings. The Illinois Health Facilities Planning Board and the IMD must approve the plans, however. Tentative plans have construction beginning in 2008.

Flournoy Street will be closed during construction, so left turns off Harrison will continue to be allowed on an interim basis. Once work is complete, only eastbound Harrison traffic will be allowed to make right turns into Rush's Harrison Street parking lot entrance. Right turns out of Rush onto Harrison still will be allowed.

Commissioners expressed reservations about UIC’s parking lot proposal.

“Although the commission understands the need for additional parking on UIC's west campus, it is not encouraged by this use on the proposed site and does not find this use to be in keeping with the IMD Master Plan,” which calls for higher density construction on the Roosevelt Road corridor, Pruett said.

In the end, commissioners approved the plan unanimously, except for Kenneth Schmidt’s vote to abstain because he is a University of Illinois trustee and wanted to avoid a conflict of interest.

University officials expect to build on the property at some point. While the parking lot is in use, the IMD wants UIC to make spaces available to other institutions.

IMD commissioners also are looking at a plan for a heliport and maintenance center on Wood Street between 14th Place and 15th Street near Illinois State Police and FBI headquarters.

“There has been a great deal of interest expressed on behalf of law enforcement and public safety agencies as well as by IMD’s medical centers,” Pruett said.

The IMD scheduled a use value hearing, open to the public, at 3:30 p.m. on Monday, April 16, in the auditorium at 2100 W. Harrison St. Commissioners Leon Dingle Jr. and Abraham C. Morgan will serve as hearing officers, reporting on the hearing and making recommendations to the full IMD commission May 15.

Pruett said the railroad tracks on the district’s southern boundary will provide a buffer between it and residential areas.

Commissioners began the meeting with a moment of silence in tribute to a commissioner who died Feb. 24, Dorval R. Carter, MD. “He was very committed to caring for the poor,” Schmidt said.

Carter, 72, was chairman of obstetrics and gynecology at St. Cabrini Hospital until it closed and then took the same post at St. Anthony Hospital. He also taught at Northwestern University. Carter died of pancreatic cancer.

Mayor Richard M. Daley had appointed Carter an IMD commissioner, one of two mayoral appointees to the board, and will name a replacement.

http://img363.imageshack.us/img363/5462/newsst21mh9.jpg

[Loopy]

^^Is this a Perkins and Will project?

[BorisMolotov]

That looks incredible! That looks about 12-14 stories...

[museumparktom]

http://i97.photobucket.com/albums/l221/Mansmith_2006/newsst21mh9.jpg

WOW. I really like this design for Rush Medical. Spyguy is this the building that your article quotes as braking ground this July?

"The $137 million project will consolidate outpatient offices and facilities of Rush’s growing Department of Orthopedics. Rush officials expect to begin construction in July and complete all components by 2009."

[SamInTheLoop]

^^Is this a Perkins and Will project?


I believe it is - I had previously read that they were designing the Rush expansion, and this looks to be the kind of high-quality work they would come up with. This is exciting stuff!! I hope the state hospital board reformulation or whatever the heck they're doing does not delay this project....
I'm so glad P+W got this one (assuming so). I was very disappointed when I found out they weren't designing the new Children's Hospital (but then again I suppose their work is just too high-quality for the Northwestern hospital campus (most recent additions) area - a standard-quality design by P+W there would look just too "out of place", ie too good...

[Chicago Shawn]

An interesting observation from the recent census data

Illinois

2000/ 2006

Chicago 9,098,615 / 9,505,748 4.5%

Peoria 366,875 / 370,194 0.9%

Rockford 320,204 / 348,252 8.8%

Champaign-Urbana 210,279 / 216,581 3.0%

Springfield 201,440 / 206,112 2.3%

I looks like the Rockford area is merging into Chicago at a good clip now.
I suspect most of Metro Rockfords growth is east in Boon Co.
A lot of people are waiting for the merging of Milwaukee/Chicago.
It is only a matter of time before we see the Chicago/Milwaukee/Rockford/Michigan city CSA.

http://upload.wikimedia.org/wikipedia/en/thumb/2/24/Chicagoland_Map.svg/200px-

How the hell is the Rockford area growing so fast? The job market out there is downright awful. Most of the new people must be working in Chicago's suburbs and exurbs.

[Chicago Shawn]

[url]http://www.nearwestgazette.com/Archive/

http://img363.imageshack.us/img363/5462/newsst21mh9.jpg

^^^KICK ASS! Easily the best hospital design in the city.

[Mr Roboto]

^^^KICK ASS! Easily the best hospital design in the city.

I agree. I cant believe its a hospital, but Im not complaining.

[bnk]

How the hell is the Rockford area growing so fast? The job market out there is downright awful. Most of the new people must be working in Chicago's suburbs and exurbs.

I also found this odd and that is why I posted it. Like I said I think most of the Rockford growth is in the eastern areas of Boone Co. where there is a lot of new development. A lot these people commute to Elgin, Hoffman E. and Schaumburg ect.

A lot of people are waiting for the merging of Milwaukee/Chicago.
It is only a matter of time before we see the Chicago/Milwaukee/Rockford/Michigan city CSA.

[wrab]

^^Is this a Perkins and Will project?

The project is P&W, per the Rush Medical website: http://www.rushcampaign.org/content.php?id=11

[honte]

^^^KICK ASS! Easily the best hospital design in the city.

Better than Goldberg's Prentice Hospital? :sly: I think not!

But... it is AWESOME. I am really excited.

Now, the last I heard, SOM was doing the master planning and design for Rush. What happened to them? Was there some kind of falling out that led to their choice of Perkins+Will?

[Busy Bee]

http://i97.photobucket.com/albums/l221/Mansmith_2006/newsst21mh9.jpg

I just saw this for the first time and it has MADE MY DAY! This building is fantastic! I got that weight-lifted-off-your-shoulders feeling and I didn't even know I had any weight on my shoulders http://forum.skyscraperpage.com/images/smilies/tongue.gif. This looks like the type of architectural risk taking I've been holding my breath so long for here. I also want to say that I love this height range and bulk. On non-downtown and hyper urban streets, this massing can create some fantastic buildings—Optima Old Orchard and the new Smithfield project off of North come to mind.

[SamInTheLoop]

Better than Goldberg's Prentice Hospital? :sly: I think not!

But... it is AWESOME. I am really excited.

Now, the last I heard, SOM was doing the master planning and design for Rush. What happened to them? Was there some kind of falling out that led to their choice of Perkins+Will?


Maybe I'm confusing the UIC Medial Center expansion with Rush's.....now I'm not as sure its Perkins + Will......I know I had read they were designing one of the expansions in this area...

[Alliance]

Wow. Thats a great hospital expansion.

[honte]

Maybe I'm confusing the UIC Medial Center expansion with Rush's.....now I'm not as sure its Perkins + Will......I know I had read they were designing one of the expansions in this area...

Wrabbit's post above seems to confirm P+W. Maybe SOM was just the master planner?

[denizen467]

Better than Goldberg's Prentice Hospital? :sly: I think not!
How can you say this without seeing a fuller rendering or the (eventually) completed project itself? Is Bertrand Goldberg so untouchable that a work of his cannot be challenged by a project that hasn't even fully materialized yet? Prentice may be nice, but it's also a diminutive concrete bunker separated from the public's reach by a large, incongruous base. Had the same design been larger, extending to the ground (but keeping the flared bottom rim), with more windows - as was successful with Hilliard - it would be an easier contender here.

[honte]

How can you say this without seeing a fuller rendering or the (eventually) completed project itself? Is Bertrand Goldberg so untouchable that a work of his cannot be challenged by a project that hasn't even fully materialized yet? Prentice may be nice, but it's also a diminutive concrete bunker separated from the public's reach by a large, incongruous base. Had the same design been larger, extending to the ground (but keeping the flared bottom rim), with more windows - as was successful with Hilliard - it would be an easier contender here.

OK, whatever, sorry I irked you. IMO, I can easily already say that this pales compared to Prentice; I don't care how good or bad the rendering is. It's looking like it will be a fine building, but nothing too radical, which in hospital design is perfectly fine. The physical form of the building owes a lot to the 1950s design of hospitals in wings, such as Schmidt Garden and Erikson's well known work (such as the endangered VA hospital) or, ahem, that of Goldberg. The exterior is basically a curtainwall with very well proportioned glazing.

Structurally alone this thing has none of the daring or inventiveness of Goldberg's work. It's a simply-supported floor plate branching from a core. Compare that to a cloverleaf, four-way post-tensioned structure with 50-foot cantilevers in each direction supporting several floors above. You dig? Oh, did I mention that it's one of the few shell-structure high-rises in the world? They're not even in the same league.

Prentice was a response to physical and sociological goals, the ultimate culmination of an entire career spent researching and perfecting a new type of form in architecture. It's as conceptual as the Koolhaas crap and as true to its structure and ideology as Mies. It was also an ingenious solution to two completely different program elements that were in direct conflict yet required by the client. On top of that, it was a pioneering effort to use computer technology to engineer and design a building. Sorry if the base is displeasing to you - you can't win them all.

[denizen467]

^ I think we are approaching our commentary in two different ways. I was considering the building as a single completed whole, and how it is enhancing the built environment in which it is situated; in other words, how 98% of the public will perceive it. I think you are looking more at the way in which a given architect has solved a given problem, and other factors involved in the completion of the project. While I am delighted that we analyze buildings on multiple levels here, and I hope we continue to do so, and even believe your approach is a more interesting discourse, I feel that it is secondary to the question of how a structure contributes, in the long term, to the life of the community at large. I'd like to elaborate some more here, so I'll try to come back to this when I've got a bit more time.

[honte]

^ OK, fair enough. Thanks for considering my points. I am always interested to hear people's comments, even when they are concerning some of my favorite buildings and those buildings are not seen in a favorable light. But I will always have a pretty strong reaction... ;)

I hope that neither you nor anyone here feels that I am trying to force my opinion on you or the board as a whole. My original post to Shawn was intended to be friendly and lightweight, merely a nudge, and not condescending in any way.

I agree that Goldberg, Netsch, and many other phenomenal architects, even Mies, Corbu, and Wright, are not always (or even often) seen positively in the public's eye. But is that the right way to judge architecture? The majority of Americans wear crappy jeans and tee-shirts and want nothing to do with high fashion, yet we aren't going to judge or appreciate that art form based on their rather limited and naive opinions of the subject.

[brian_b]

^^^ I guess the question remains - will CBOT shareholders be too blinded by dollar signs to see the writing on the wall?

[GregBear24]

^ The answer is hell yes. Most of these people running CBOT and CME don't really care about that too much- it's all about money. A lot of these people move out of chicago once they make enough money to, and their concerns are for themselves. This business is all about how greedy you are and how much money can be made; believe me, no one wants the CME to win the CBOT bid more than I do, but the reality is that there isn't too much concern amongst these people since ICE says it'll move here. Honestly, we all know everyone is out to get us, and the powers that be in NY don't want chicago to have any financial power on an international scale. However, I think there's still a good chance that CME could win the bid. They're playing games with ICE right now, and they have more than enough money to up their bid higher than ICE's.

[spyguy]

http://nwitimes.com/articles/2007/04/08/business/business/doc6acaa501d7e59acc862572b5007a93a7.txt

CBOT traders sweet on Chicago Merc
Sunday, April 8, 2007 12:01 AM CDT

BY ALEX SHERMAN AND CLAY DILLOW
Medill News Service

While Chicago Board of Trade directors have indefinitely postponed a vote on the exchange's future, many traders have made up their minds. They see more value in marrying the girl next door.

Merger rivals Chicago Mercantile Exchange Holdings Inc. (CME) and Atlanta's Intercontinental Exchange (ICE) are both wooing CBOT shareholders with promises of cash, stock and long-term value. But while ICE has made the sweeter bid -- nearly $1 billion sweeter -- no one understands future value like futures traders.

"The Merc has a better future strategy," said Michael Hill, a CBOT seat owner. "Looking at the long-term, two years down the road, the Merc is a better bet. However, in the short-term money talks."

ICE's all stock bid, valued at $9.9 billion when it was initially submitted March 15, eclipsed CME's original bid of $8 billion. But today's share prices are not the concern of seat holders, who must keep their shares in order to maintain their membership privileges.

"To get certain breaks on trading, you have to own stock," CBOT seat holder Francis Wisnieski said. "We are probably never going to sell BOT stock, and I imagine that nearly half the seat owners are in the same boat. So an extra $10 (per share) on the ICE's bid will not benefit us that much."

Numerous traders noted the close ties that already exist between CME and CBOT.

"The Board of Trade and the Merc are so close already that ICE will have to really blow them away," CBOT seat holder Kent Spellman said, noting that cross marketing and margin breaks encourage traders on one exchange to trade on the other.

Some Chicago traders are more comfortable with open-outcry markets than the ICE's electronic-based platform. CBOT traders are also familiar with the Merc's reliable servers and trading platform.

Perhaps most importantly, the Merc is just around the corner.

"I think people would rather the Merc get it because it's a local company," said a CBOT clerk, who asked that his name not be used.

Even traders who lease their seats at CBOT feel the Merc is a better fit.

"It would be better if the Merc bought it -- they seem to have run (the Merc) like a business, and I think they could do a pretty good job with us," CBOT trader John Wisockur said.

The Merc's buyout is not without its critics. The Futures Industry Association, the Washington, D.C.-based national trade organization for the futures industry, is concerned the merger would "substantially lessen competition among U.S. futures exchanges and raise even higher the barriers to entry for new competitors," according to a statement regarding the CBOT-CME merger.

The association declined to comment on the ICE proposal.

While the debate continues upstairs, traders on the CBOT floor like Wisockur admitted that, in the end, either partner will do.

"Unless they tell me they're kicking me off the floor, then whoever buys it buys it," Wisockur said.

[honte]

^ Bring on the powerhouse!

[chicubs111]

Its time for chicago to get agressive on the business front..im sick and tired of this taking a back seet to NY all the time...this is a huge potential gain for chicago...its time to get some balls and stop playing on the sidelines.

[sentinel]

Its time for chicago to get agressive on the business front..im sick and tired of this taking a back seet to NY all the time...this is a huge potential gain for chicago...its time to get some balls and stop playing on the sidelines.

Amen!

[laro3]

most of the traders on the floor of the merc believe the board and merc will merge,they can merge with us and be the biggest exchange this world has ever seen ,or dissolve into the ice.....

[BorisMolotov]

Looking good! Will they be repainting the backs of the buildings?

[honte]

^ I hope not. It's colorful and honest as-is. I think the small improvements are just enough to make it nice without being Disneyfied.

[Alliance]

Amen!

Amen!

[forumly_chgoman]

I forgot in this proposal were they going to add small vendors along couch pl or are the improvements simply the lighting and such....I think there was a rendering of this several months ago.....but I am blanking on it details

[headcase]

I forgot in this proposal were they going to add small vendors along couch pl or are the improvements simply the lighting and such....I think there was a rendering of this several months ago.....but I am blanking on it details

As far as what has been released, it is all cosmetic...

SSDD