CHICAGO | Economic & Business Development - Page 59

the urban politician · #1 Posted **May 10, 2018, 2:30 PM**

^ I like to read what you’re saying, but in reality it’s all just conjecture.

I’d like to see the evidence that companies actually perform better when located in the heart of cities as opposed to in suburban campuses

F1 Tommy · #2 Posted **May 10, 2018, 2:42 PM**

Moving 15 miles east does all that.... Do you have the numbers to prove that or are they moving for tax breaks?? Is FTD going to fire it's workforce and hire only people from Chicago??

" It means less waste, better innovation, more growth in services as employees find themselves with more time. It means more and greater specialization in the work force making not only FTD more competitive nationally and globally, but all the other firms proximate to FTD who reap the ancillary benefits of yet more white collar workers nearby. Moving jobs downtown benefits Chicago most of all, it actually puts us in a position where we can leverage the second densest CBD on Earth to make our economy as a whole more competitive. "

OrdoSeclorum · #3 Posted **May 10, 2018, 3:57 PM**

Quote:

Originally Posted by the urban politician

I’d like to see the evidence that companies actually perform better when located in the heart of cities as opposed to in suburban campuses

To some extent, the burden of proof is on the person making the opposing claim here. Why wouldn't, corporations perform better in a location where they have access to more talent, shorter commutes, a wider employee collection watershed and easier access to business services and collaborators?

Beyond that, the proof of the pudding is in the tasting, right? If corporations are increasingly choosing to be downtown, they are making a statement that they see it as being better for the bottom line.

We also have countless examples of industries thriving because they co-localize. Jewelers in Amsterdam. Finance in various locations. Technology of various sorts in various locations. Of course, not all of these examples will speak to city-versus-burbs specifically, but the proximity affect scales. It would be weird if it didn't. This is literally why cities exist, even in pre-history. It's easier to defend, share resources, communicate, efficiently utilize infrastructure and increase the velocity of trade when barriers between connections are low.

Ed Glaeser has a lecture on the economics of agglomeration here: https://www.setthings.com/en/economies-agglomeration/

Here's a chapter examining agglomeration effects. synthesis: very strong: http://www.nber.org/chapters/c7977.pdf

F1 Tommy · #4 Posted **May 10, 2018, 5:03 PM**

Quote:

Originally Posted by OrdoSeclorum

To some extent, the burden of proof is on the person making the opposing claim here. Why wouldn't, corporations perform better in a location where they have access to more talent, shorter commutes, a wider employee collection watershed and easier access to business services and collaborators?

Here's a chapter examining agglomeration effects. synthesis: very strong: http://www.nber.org/chapters/c7977.pdf

\

Not really unless they have a big turnover in employee's. The commute is longer for most. Also Downers Grove has very good train service. That being said I can see why they would like to be downtown. It's more about the prestige of being there along with the fact they may have gotten a good lease deal. Also one of the owners lives downtown. This is not a real gain for the local economy. Chicago needs to focus on the out of state and international companies.

Steely Dan · #5 Posted **May 10, 2018, 5:08 PM**

Quote:

Originally Posted by F1 Tommy

Also Downers Grove has very good train service.

downers grove: 1 metra line

downtown chicago: 12 metra lines and 9 el lines.

F1 Tommy · #6 Posted **May 10, 2018, 5:12 PM**

Quote:

Originally Posted by Steely Dan

downers grove: 1 metra line

downtown chicago: 12 metra lines and 9 el lines.

That is true, but most people working at FTD live closer to Downers Grove than downtown. They are probably all pissed about the move but will just jump on the train and go downtown wich should be easy enough. Or like a lot of morons, they will try to drive for some uknown reason.

Vlajos · #7 Posted **May 10, 2018, 3:11 PM**

Were tax breaks mentioned? Highly doubt anything was offered by the city.

F1 Tommy · #8 Posted **May 10, 2018, 3:26 PM**

Quote:

Originally Posted by Vlajos

Were tax breaks mentioned? Highly doubt anything was offered by the city.

My point is this is just a location change that might pick up a few new local employees. The attitude around here is wrong. Moving from point A to point B in the Chicago area is not helping the overall economy as much as some think. When they went the other way from Chicago to the suburbs people just drove to a new location. I do like seeing Chicago do well but all this hate for the suburbs is silly. We need to pull companies from other states and countries, not from the METRO CHICAGO AREA.

Vlajos · #9 Posted **May 10, 2018, 3:34 PM**

Quote:

Originally Posted by F1 Tommy

My point is this is just a location change that might pick up a few new local employees. The attitude around here is wrong. Moving from point A to point B in the Chicago area is not helping the overall economy as much as some think. When they went the other way from Chicago to the suburbs people just drove to a new location. I do like seeing Chicago do well but all this hate for the suburbs is silly. We need to pull companies from other states and countries, not from the METRO CHICAGO AREA.

Sure, I am very happy seeing the trend back to the City though.

Vlajos · #10 Posted **May 10, 2018, 5:08 PM**

It is far easier for the vast majority of Chicago metro area residents to get to downtown Chicago than to Downers Grove.

Chi-Sky21 · #11 Posted **May 10, 2018, 7:26 PM**

I can assure you most employees from FTD do not want to work in the city, most live in the immediate area or right off 355. It is a higher level decision, thinking they will get better web developers there. However, they already hired all the new web developers and they are working in DG already so not sure the reasoning other than the C level guys live in the city and they will be closer to work. FTD is retaining its office in DG since they own the building not much real cost to keep it.

Vlajos · #12 Posted **May 10, 2018, 11:02 PM**

do you work for FTD? do you recruit for them?

As far as I can tell FTD made this decision, so the company apparently thinks this makes sense.

cmmcnam2 · #13 Posted **May 11, 2018, 2:55 PM**

Quote:

You do realize they have the operations center in Willis Tower and the corporate types are at 77W Wacker.

Uh... no: https://www.united.com/ual/en/us/fly...dquarters.html

F1 Tommy · #14 Posted **May 11, 2018, 3:19 PM**

Quote:

Originally Posted by cmmcnam2

Uh... no: https://www.united.com/ual/en/us/fly...dquarters.html

You are correct, my mistake. They moved out when they moved to Willis. My point still remains about the specialized airline employees at Wills Tower and the main reason for the move.

Vlajos · #15 Posted **May 11, 2018, 3:27 PM**

This conversation is really stupid. FTD is moving their HQ because they think it's good for the company. Very likely due to the fact that nearly 10Million people have an easier time getting to downtown Chicago than to DG. No one forced them to move and as far as I can tell, there are no incentives for the move.

End of the discussion.

F1 Tommy · #16 Posted **May 11, 2018, 3:30 PM**

Quote:

Originally Posted by Vlajos

This conversation is really stupid. LTD is moving their HQ because they think it's good for the company. Very likely due to the fact that nearly 10Million people have an easier time getting to downtown Chicago than to DG. No one forced them to move and as far as I can tell, there are no incentives for the move.

End of the discussion.

You mean FTD... Good point...I will stop.

Vlajos · #17 Posted **May 11, 2018, 3:58 PM**

Quote:

Originally Posted by F1 Tommy

You mean FTD... Good point...I will stop.

Damn, bad typo on my part!

IrishIllini · #18 Posted **May 11, 2018, 6:47 PM**

Per usual I agree with Vlajos. There's really no reason for any of our largest companies to be out in the burbs anymore. The city isn't stigmatized like it has been in the past and no one wants a hellacious commute on 55/90/94/290/294. We're fortunate to have a great commuter rail network in place, so lets put it to use. Lets also capitalize on the synergies of having hundreds of thousands/millions of qualified workers concentrated downtown. NYC is what it is because of the concentration of talent. We have everything we need to keep that going here.

Vlajos · #19 Posted **May 14, 2018, 4:55 PM**

http://www.chicagobusiness.com/artic...s-going-public

Illinois really needs to legalize, regulate and tax adult marijuana use.

marothisu · #20 Posted **May 11, 2018, 3:40 PM**

Quote:

Originally Posted by Vlajos

This conversation is really stupid. LTD is moving their HQ because they think it's good for the company. Very likely due to the fact that nearly 10Million people have an easier time getting to downtown Chicago than to DG. No one forced them to move and as far as I can tell, there are no incentives for the move.

End of the discussion.

Yep. Exactly. I'm sure they did actual analysis to back up their move. Big companies don't just shoot from the hip and randomly decide these things.