CHICAGO | Economic & Business Development

[Vlajos]

Originally Posted by marothisu

Actually it's at 4.2% for the entire metro area for April. I don't know where they're getting 4.6% from. The city is at 4.7% for April (it was at 4.5% for March. Slight uptick which means that, at least my guess, there will be an increase of employment/decrease of unemployment for May numbers). The rate has dropped very rapidly since January. For the metro area, it was at 6% in January so it has gone down 1.8% in just a few months which is massive.

The thing is though that the labor force population for the MSA has decreased by 63,000 people since January. However, employment is up just over 27,000 people (aka unemployment is down over 90K people). Certain media that I have contact with doesn't want to run the story yet because they think it's just unemployed people leaving. However, that is statistically naive, in a way, considering if 3/4 of those people were previously unemployed who left the labor market and there was no net employment increase, we'd have an unemployment rate around 5.7%, not the 4.2% it's at now. Something else is going on too - which is job growth.

They don't seem to understand that it's both some unemployed people leaving but also new jobs coming up. The amount of employment added since January percentage wise isn't as good as LA or NYC, but because of people who may have been unemployed leaving along with job growth - it's resulted in massive decrease of unemployment and unemployment percentage in such a short time.

I do agree with them that maybe it's a big premature to get excited, but if the area starts adding labor force population again and the unemployment rate holds steady-ish or decreases then it's definitely worthy of a story.

4.1% in May for the Illinois portion of the metro. Also a nice additional 38K job increase from April.

https://www.bls.gov/regions/midwest/il_chicago_md.htm

[Justin_Chicago]

A Look at Chicago's Tech Unicorn Herd

Outcome Health
Valuation: $5 billion

Uptake
Valuation: $2 billion

Avant
Valuation: $2 billion

Mu Sigma
Valuation: $1.5 billion

SMS Assist
Valuation: $1 billion

ExteNet Systems
Valuation: $1 billion

Article: http://chicagoinno.streetwise.co/201...-unicorn-herd/

[Justin_Chicago]

Real estate-tech startup gets $8 million

Anyone who's ever hawked an office building or storefront knows it's usually a low-tech affair, based on fliers. Although they're delivered electronically, the process of creating them is often manual.

Buildout, a Chicago-based software firm that aims to change all that, has raised $8 million for expansion from Susquehanna Growth Equity, based near Philadelphia. The company, which employs about 35 and is based in River North, expects to double headcount in the next year, says CEO Vishu Ramanathan. Most of the new jobs will be in technology development and client services.

article: http://www.chicagobusiness.com/artic...e-tech-startup


Mental-health startup gets $6 million

Regroup Therapy is winning customers and investors for its business of providing mental-health services long distance.

The company, launched two years ago at health-tech incubator Matter, raised $6.1 million from investors, led by OSF Ventures, the venture-capital arm of the Peoria-based hospital operator. Other investors include Boston-based HLM Venture Partners and local backers OCA Ventures, Impact Engine, Hyde Park Angels and Furthur Fund.

article: http://www.chicagobusiness.com/artic...n-from-osf-hlm

[Justin_Chicago]

Surgical device startup raises $1.4 million

A medical device startup based on the work of a Northwestern University surgeon has raised $1.4 million.

The tool electronically measures depths for screws for orthopedic surgery, replacing traditional analog gauges, says K.C. Hoos, vice president of development at Edge Surgical, a startup based at Matter, a health-tech incubator at the Merchandise Mart.

The company, like a lot of medical-related startups, raised its seed money from doctors and other angel investors.

Edge acquired 15 patents from Northwestern's Dr. John Kim, who developed the intellectual property. The company plans to develop a second device for spinal surgery.

Article: http://www.chicagobusiness.com/artic...es-1-4-million

[aaron38]

Right-to-work is just globalist code for driving wages down as low as possible. My old company was all non-union. Didn't stop all the jobs from going to Malaysia and Mexico.
The corporate tax rate (and property taxes) probably has a lot to do with that.

[aaron38]

Originally Posted by Randomguy34

I am surprised no one mentioned this yet, but the Retail Thrive Zone (RTZ) program announced the 51 businesses that have received $5.1 million in grants to build or expand their business on the South and West Sides. Some of the awardees announced were long established businesses in the neighborhood, but many of them are new ones such as a brewery in Englewood, a blues & jazz club in Austin, and a cyber cafe w/ a coffee bar in West Humboldt Park. This is on top of the 32 new/expanded business that were funded by the NOF current pool of $3.2 million.

If businesses are struggling, why did the state just raise their taxes and take money away from all their customers? This will simply be the source of a new round of political kickbacks. Good luck getting a grant without the proper reelection fund contribution.

Between property tax and income tax increases, $2500 of my disposable income just went poof. Apologies to any businesses who thought they were going to earn that money from me honestly.

[marothisu]

Amazon will double its office staff and space in Chicago

http://www.chicagobusiness.com/artic...ent-in-chicago

Just a year after opening a starter office here, Amazon is doubling down on Chicago, literally. The e-commerce giant plans to double in size, making room for up to 400 workers downtown. The company opened a corporate office a year ago with 35,000 square feet at 227 W. Monroe St. and has grown to more than 200 workers. It recently signed a new lease to double the space.

The corporate positions here mainly fall into three parts of Amazon's sprawling empire: Amazon Web Services, its cloud-computing business; advertising and media; and operations for the e-commerce business. Individual jobs range from sales to technology.

It plans to add another 2,000 workers in the next 18 months as it opens fulfillment centers Monee, Aurora and Waukegan, alongside those already underway in Joliet and Romeoville, as well as downstate Edwardsville. There's also an Amazon Prime distribution center on Goose Island.

[Justin_Chicago]

CellTrak lands another $11 million

A Schaumburg tech company that helps home health care providers manage and monitor patients and workers in the field has raised $11 million.

CellTrak Technologies was founded a decade ago, but its software is taking off now as the retiree population begins to surge. It's also getting a lift from a government requirement that home visits for Medicaid patients be verified electronically.​

The funding was led by Boathouse Capital, based in Wayne, Pa., with participation from Northbrook-based MK Capital, which led a previous investment in the company. CellTrak has raised about $23 million.

The funding was led by Boathouse Capital, based in Wayne, Pa., with participation from Northbrook-based MK Capital, which led a previous investment in the company. CellTrak has raised about $23 million.

Article: http://www.chicagobusiness.com/artic...thouse-capital

[Justin_Chicago]

The Hatchery plans $30M food incubator for East Garfield Park

The Hatchery, a food incubator on Chicago's Near Northwest Side, is expected to break ground this fall on a $30 million facility in East Garfield Park, possibly spurring an influx of jobs in an impoverished neighborhood if everything goes according to plan.

The project marks an intriguing addition to a changing food industry in Chicago, where large processed food companies are increasingly rubbing shoulders with start-ups in hopes of keeping pace with — or catching up to — shifting consumer tastes. The Hatchery will nurture small food businesses, while also bringing about 150 new jobs to East Garfield Park in the first year and up to 900 jobs over the first five years, city officials said.

The new 67,000-square-foot home for The Hatchery, a joint venture of Industrial Council of Nearwest Chicago and Accion Chicago, is receiving a mix of public and private investment to get started: about $8 million in city support, mostly through tax increment financing, as well as undisclosed sums from giant food companies such as Chicago-based Conagra Brands and Battle Creek, Mich.-based Kellogg Company.

"It's an exciting project in an area that could use the investment. We plan to be there for a long, long time," Steve DeBretto, executive director of Industrial Council of Nearwest Chicago, said Monday.

Construction is planned to begin in October or November, with the facility opening in fall 2018, DeBretto said.

The Hatchery hopes to support food start-ups as they grow with access to resources, expertise and exposure to established food companies. As members eventually outgrow the shared kitchen spaces, they can rent one of the 56 on-site private food production areas, DeBretto said.

Mayor Rahm Emanuel lauded the project in a news release, noting that it follows large food and beverages companies such as Conagra, Kraft Heinz, Beam Suntory and Mead Johnson that have moved headquarters to the city in recent years.

Article: http://www.chicagotribune.com/busine...710-story.html

[Emprise du Lion]

Cook County to cut 1,100 jobs due to soda tax delay

CHICAGO (WLS) -- The court battle delaying the Cook County sugary drink tax is about to start hitting home.

A hearing on the tax has been pushed back until next week, but Cook County Board President Toni Preckwinkle said Tuesday that layoff notices will be going out soon.

Preckwinkle was counting on that tax revenue to generate tens of millions of dollars this year alone, and without it she said she has no option but to take drastic measures. So, starting later this week, more than 1,100 layoff notices will start going out.

"So let me be clear, the crisis is real, so the cuts must be real," Preckwinkle said.

With the court challenge to the county's sweetened beverage tax expected to drag on for weeks or months, the layoffs could not be delayed. And with 87 percent of the county budget going to public health and public safety, the impact will be felt most significantly at county hospitals and the sheriff's department and the courts.

"So if we don't have revenue, we end up laying off doctors, nurse, prosecutors and public defenders and jail guards," Preckwinkle said.

The sheriff's department was told to make drastic cuts.

"We need you to cut 1,000, basically 1,000 positions from your office of 6,000. And so I don't know any sane person who would suggest you can really function real well when you lose that many people from your office," Cook County Sheriff Tom Dart said.

That means courthouses will likely close earlier, and policing efforts to help Chicago and suburban communities combat violence will have to be curbed at a time when they need it the most.

More here:
http://abc7chicago.com/2206657/

[sentinel]

Originally Posted by Emprise du Lion

Cook County to cut 1,100 jobs due to soda tax delay

CHICAGO (WLS) -- The court battle delaying the Cook County sugary drink tax is about to start hitting home.

A hearing on the tax has been pushed back until next week, but Cook County Board President Toni Preckwinkle said Tuesday that layoff notices will be going out soon.

Preckwinkle was counting on that tax revenue to generate tens of millions of dollars this year alone, and without it she said she has no option but to take drastic measures. So, starting later this week, more than 1,100 layoff notices will start going out.

"So let me be clear, the crisis is real, so the cuts must be real," Preckwinkle said.

With the court challenge to the county's sweetened beverage tax expected to drag on for weeks or months, the layoffs could not be delayed. And with 87 percent of the county budget going to public health and public safety, the impact will be felt most significantly at county hospitals and the sheriff's department and the courts.

"So if we don't have revenue, we end up laying off doctors, nurse, prosecutors and public defenders and jail guards," Preckwinkle said.

The sheriff's department was told to make drastic cuts.

"We need you to cut 1,000, basically 1,000 positions from your office of 6,000. And so I don't know any sane person who would suggest you can really function real well when you lose that many people from your office," Cook County Sheriff Tom Dart said.

That means courthouses will likely close earlier, and policing efforts to help Chicago and suburban communities combat violence will have to be curbed at a time when they need it the most.

More here:
http://abc7chicago.com/2206657/

Cook County, and even the entire state need to shed thousands more jobs, in order to become remotely solvent again. Illinois has a disease called over-beaurocratitis.

[Emprise du Lion]

Originally Posted by sentinel

Cook County, and even the entire state need to shed thousands more jobs, in order to become remotely solvent again. Illinois has a disease called over-beaurocratitis.

Illinois has many redundant levels of government in comparison to other states (so many townships, so many...), but those weren't the jobs on the chopping block with the cuts. It only ended up being 300 jobs, at least for now, but nearly 1/3 of the people cut were attorneys from the state's attorney's office and the public defender's office. Those are people you need. Many of the others were supposed to be from the Sheriff's Department.

[the urban politician]

^ Sounds scary, but the reality is that it won't be doctors, nurses, and cops who get fired.

It's probably going to mostly be the administrators and paper pushers. Lack of resources is painful, but it forces systems to be more efficient.

[Emprise du Lion]

Originally Posted by the urban politician

^ Sounds scary, but the reality is that it won't be doctors, nurses, and cops who get fired.

It's probably going to mostly be the administrators and paper pushers. Lack of resources is painful, but it forces systems to be more efficient.

It'll depend. The Sun Times had been reporting that nearly 400 of them are going to be correctional officers who are apart of a union that opposed the tax and got on Preckwinkle's bad side. Kim Foxx also announced that the State's Attorney's Office could be laying off up to 100 Assistant State's Attorneys. This comes only a month or so after she had previously stated that her office didn't have the manpower to prosecute various crimes in Cook County. The Public Defender's Office is also facing cuts.

Preckwinkle could be broadcasting doom and gloom in the hope of the public siding with the tax, but she and the rest of the board are playing a dangerous game at the moment.

[LouisVanDerWright]

^^^ It's almost as if we shouldn't have a government that requires the passage of a soda tax to stay solvent. Hmm, if only there were another way to achieve fiscally functional government, like, I dunno, laying off government employees?

[harryc]

It would seem that in this new era of the interweb to maintain a vibrant downtown in a place like Oak park (or Evanston) an increase in population density is needed. The demand for storefronts per capita is just less than it was a few decades ago.

Does anyone have any studies, statistics, or references to back up this theory ?

[F1 Tommy]

Originally Posted by LouisVanDerWright

^^^ It's almost as if we shouldn't have a government that requires the passage of a soda tax to stay solvent. Hmm, if only there were another way to achieve fiscally functional government, like, I dunno, laying off government employees?

How dare you suggest such a thing in Illinois

[Justin_Chicago]

Shure to open downtown office

Shure, the Niles-based maker of microphones and other high-end audio equipment, is opening a downtown office.

The company leased 35,000 square feet—a full floor—of the National, as the renovated 20-story former headquarters of Chicago Public Schools is now known.

Shure plans to outfit the space at 125 S. Clark St. with a demonstration center for its corporate business, which is growing fast, thanks to a new line of audio-conferencing equipment. The company also is outgrowing its seven-story Helmut Jahn-designed headquarters in Niles, so it needs more office space.

"We're rapidly expanding our product-development and engineering groups," said Mark Brunner, Shure's vice president of corporate and government relations. "The Niles facility is reaching capacity."

Shure will shift 85 workers downtown. But unlike other companies that have moved downtown to be closer to young tech workers, Shure is also moving sales, marketing, customer service and market development workers into the Loop.

"The downtown location could help us be closer to clients across a variety of customer groups, such as corporate customers as well as clients in town for concert events," Brunner said.

The company could have 130 to 150 workers downtown within two to three years, said Pat Knoll, Shure's senior director of global facilities.

Article: http://www.chicagobusiness.com/artic...ning-for-shure

[aaron38]

Other states legalize (and tax) marijuana, cut spending drastically and have all the revenue they need. Illinois continues the wasteful war on drugs and then cries "we don't have enough money to pay for all the police, prosecutors, courts, and jail guards we need".

Illinois isn't nearly broke enough yet. Sadly we're nowhere close to hitting rock bottom, which is what it will take for this state to break its addiction to spending.

[the urban politician]

That Shure is good news!

Hyuk hyuk hyuk