CHICAGO | Economic & Business Development

[Randomguy34]

This seems pretty significant

Chicago lands $250 million from Zuckerberg and Chan for biotech research hub

Facebook founder Mark Zuckerberg and his wife, Dr. Priscilla Chan, are betting $250 million that the next big breakthroughs in biotech will come from Chicago.

Their foundation, known as the Chan Zuckerberg Initiative, has chosen a joint research effort between the University of Chicago, Northwestern University and the University of Illinois Urbana-Champaign as its second biohub.
....
The Chan Zuckerberg Initiative will fund a lab in Chicago that will employ 30 to 50 researchers and other staff. It will be run by Shana Kelley, a biotech researcher who recently joined Northwestern from the University of Toronto. The foundation also will provide money to researchers at the three universities, $1 million at a time, underwriting "high-risk research programs that might otherwise not be funded by conventional sources."
....
Chicago was chosen from 58 applicants, said Steve Quake, head of science for the Chan Zuckerberg Initiative. It plans to launch the lab next month but hasn't yet decided on a location.

https://www.chicagobusiness.com/tech...h-research-hub

[Randomguy34]

This should give a sense of how competitive the funding was

Northwestern, UChicago and UIUC beat out proposals from about 60 other teams across the country to win the funding. The Chan Zuckerberg Initiative spent about a year narrowing down the applicants, until the Chicago universities emerged as the winner, said Steve Quake, head of science at the Chan Zuckerberg Initiative. Pritzker committed the $25 million in state capital funds during that selection process.

The biohub will be a “real boost to our biotech ecosystem in the city,” said Milan Mrksich, vice president for research at Northwestern.

“We were up against teams that included Harvard and Cal Tech and MIT, and really every place in the country,” Mrksich said. “For the team here of Northwestern, University of Chicago and University of Illinois Urbana-Champaign to win the competition is really exciting.”

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

[sentinel]

Originally Posted by Randomguy34

This seems pretty significant

Chicago lands $250 million from Zuckerberg and Chan for biotech research hub

https://www.chicagobusiness.com/tech...h-research-hub

Wow, this is a huge deal, and it reads like a lot of the research that will be funded could potentially be pioneering in a variety of ways.

[Randomguy34]

Originally Posted by sentinel

Wow, this is a huge deal, and it reads like a lot of the research that will be funded could potentially be pioneering in a variety of ways.

Many of the press releases also emphasize that this will be a new facility to bring researches across Chicago, rather than in an existing facility like other CZ initiatives. Hopefully this means new construction as well.

[moorhosj1]

Originally Posted by Randomguy34

Many of the press releases also emphasize that this will be a new facility to bring researches across Chicago, rather than in an existing facility like other CZ initiatives. Hopefully this means new construction as well.

Maybe in The 78 development next to DPI or kicking-off the Bronzeville Lakefront (Michael Reese redevelopment) project?

[sentinel]

Originally Posted by moorhosj1

Maybe in The 78 development next to DPI or kicking-off the Bronzeville Lakefront (Michael Reese redevelopment) project?

I think either location would be ideal and logical for a number of reasons.

[bnk]

Originally Posted by sentinel

Wow, this is a huge deal, and it reads like a lot of the research that will be funded could potentially be pioneering in a variety of ways.

A 1/4 Billion is a big deal

ESP with the competition we were up against.


"A few Billion here a few Billion there and pretty soon eventually it becomes real money."

[ardecila]

Lots of places will be angling for this thing. Lincoln Yards is probably the biggest contender IMO. Great location close to where the talent will live in North Side neighborhoods, and they have already declared a focus on life sciences for the office component (the Ally building is lab space).

The 78 and Bronzeville Lakefront could compete for it also, but they already have anchor institutions in theory (78 has DPI, Bronzeville Lakefront has something with the Israelis).

It could also go on one of the university campuses in Hyde Park, Evanston, or West Loop, or in Fulton Market where several lab buildings are completed or proposed. The suburbs are also a possibility, with the ISTP in Skokie having a life sciences focus, or other sites in the North Tri-State corridor where the pharma companies are.

Honestly I'm kinda worried we have too many far-flung sites competing for this kind of investment, I don't think we can ever develop a critical mass like Kendall Square.

[marothisu]

^ I think Lincoln Yards or some of the West Loop buildings make the most sense. These 2 already have biolab space built out or soon. The Lincoln Yards building will have a few tenants right away but I'm pretty sure most will not be used up. Then in West Loop, there are a few buildings already and some new ones coming.

I wouldn't even be surprised to see them pick West Loop/Fulton Market buildings just because it's the "cool, hot" area of town with a lot of tech and building out biotech with a few of the buildings already.

[Randomguy34]

Chan and Zuckerberg were reportedly touring Fulton Labs, so they've at least visited Fulton Market. Since the 78 and Bronzeville Lakefront still have a bunch of infrastructure work and already have phase 1 tenants, they are less likely to host the biohub. Fulton Market, Lincoln Yards, and Hyde Park all have labs that are U/C or planned, so they seem like the most likely candidates in my book. If providing access to all 3 universities is a priority, then Fulton Market easily wins on connectivity.

[bnk]

Originally Posted by bnk

We did it again



https://siteselection.com/issues/202...-can-trust.cfm


TOP METROS OF 2022
From Site Selection magazine, March 2022


Places You Can Trust

That’s a strong indicator across the Top Metros of 2022.

by Adam Bruns

If winning back-to-back championships establishes dynasties, what do you call it when you win 10 years in a row?

In Chicagoland, they hand the ball to the ref and they act like they’ve been there before. Because they have.

The 2022 data on corporate facility investment nationwide indeed tell a familiar tale: The multi-state Chicago metro area is No. 1 (with 448 projects) and the next three metro areas in the rankings also repeat their rankings from last year: Dallas-Fort Worth-Arlington is No. 2 (426 projects); Houston-The Woodlands-Sugar Land is No. 3 (255 projects) and New York-Newark-New Jersey is No. 4 (246 projects). The biggest upward mover in the Top 10 is Los Angeles-Long Beach-Anaheim, California, with 150 projects, just ahead of repeat No. 6 metro Atlanta-Sandy Springs-Roswell, Georgia.
...

A noteworthy recent statistic from Kastle Systems (based on building access control data) finds that among 10 major cities analyzed by how many office workers had returned to the office during a week in February, Austin, Chicago and Houston were the only cities with returned-worker percentages higher than 50%. Michael Fassnacht, CEO and president of World Business Chicago and chief marketing officer for the City of Chicago, says his city’s downtown is doing just fine.

“Young talent, post college, they want to be in an urban center,” he tells me, for the entertainment, night life and diversity of people and experiences. “We have not seen a dropoff. We have seen an influx from the coasts because it’s more affordable and there are more opportunities.”

That influx is coming from companies as well as talent. Despite the rise of Los Angeles this year to No. 5 from No. 8 last year among our Top Metros, Fassnacht says he learned during a trip to L.A. early this year that “a lot of L.A.-based companies are interested in expanding into the Midwest and it looks like Chicago is the gateway. In 24 hours we met 50 companies and 12 are seriously interested.”




...

I'm guessing here but I think Illinois was second only to Texas in this metric.


Chicagoland had the huge majority of relocations and expansions.

But here are a select few from the down state that is very much in need.


https://www.illinois.gov/news/press-release.26121.html

Illinois Ranks #2 State in the Nation for Corporate Investment

Press Release - Wednesday, March 01, 2023


CHICAGO — Site Selection Magazine - an international industry-leading business publication -- released its annual corporate expansion and relocation rankings, naming Illinois 2nd in the nation for corporate projects and Chicago the Top Metro for the 10th year in a row. The publication noted 487 Illinois projects in 2022, moving the state up from the number three spot in the previous year's rankings.

"Illinois is open for business and leading the way as one of the top 10 states for corporate investment, with Chicago named the number one metro for the 10th year in a row," said Governor Pritzker. "Thanks to our nation-leading infrastructure revitalization, talented workforce, and growing economy, Illinois is the best place to do business."

The issue also named the Chicago metropolitan area as the Top Metro for corporate investment for the 10th straight year. With a growing reputation as a tech hub with Google's purchase of the Thompson Center and new headquarters moving in, such as Kellogg, Chicago continues to bolster its reputation as a global powerhouse.

...



Illinois recently launched a $400 million invest in Illinois fund to attract large businesses and stay competitive with other states, expanded incentives for the clean energy industry, and made it easier for companies to apply for EDGE - the state's primary incentive program.

The state also announced $40 million in grants to supercharge the development of megasites - large, developed sites ready for occupancy for manufacturers, distribution centers, industrial centers, and more. These grants will increase the number of investment-ready sites in Illinois and increase the state's competitiveness for large-scale projects.

Companies that located or expanded throughout Illinois in 2022 include:

CyrusOne Data Center - $250 million facility located in Aurora

Ferrero - Bloomington manufacturing facility; $214.4 million investment and 200 jobs

GAF Commercial Roofing - Peru manufacturing plant; $80 million investment and 70 jobs

LG Chem/ADM - two new joint ventures in Decatur; 125 jobs

Ollie's Bargain Outlet - Princeton distribution center; $68 million investment and 145 jobs

Prime Data Centers - New $1 billion data center in Elk Grove Village

T/CCI - Decatur retooling for EV component manufacturing; $20 million investment and 50 jobs

Tyson Foods - Caseyville manufacturing facility expansion, $180 million investment and 400 jobs

...

[sentinel]

Not Chicago-specific, but still very important:


Illinois Earns Credit Upgrade from Moody's Investor Service
Press Release - Tuesday, March 14, 2023

"SPRINGFIELD -- Governor JB Pritzker today hailed Moody's Investor Service upgrade of Illinois bonds to A3, the second major rating agency to return Illinois' credit to the ‘A' category. The action also represents the eighth upgrade in less than two years under Governor Pritzker following eight downgrades under the previous administration.

The continued fiscal progress by the state of Illinois was achieved due to continued strong fiscal leadership by Governor Pritzker and Democrats in the General Assembly.

Moody's said Illinois' improving governance was a key consideration in the action. "We consider improving governance to be a key consideration in this action." Illinois, it said, is "displaying improved management of its budget by making conservative revenue assumptions and applying surplus revenue towards the payment of debt and growth in reserves."

"This credit upgrade, our second one this year, is the result of the steps we've taken in Illinois to put ourselves on firm fiscal footing. We have balanced our budget, paid our bills on time, cleared out decades of debt, made extra pension payments, and saved billions for a rainy day," said Governor JB Pritzker. "There's more work to be done, but it's clear we have undone decades of damage and ushered a new era of fiscal responsibility in Illinois. I look forward to building on this record by working with the General Assembly to pass the state's fifth straight balanced budget later this spring."

Moody's Investor Service announced a ratings upgrade to A3 (stable outlook) from Baa1 for Illinois' General Obligation bonds, its third upgrade of Illinois' bonds since June 2021. The last time Illinois had an A3 rating from Moody's was prior to September 2015. Moody's also upgraded Build Illinois sales tax bonds to A3 (stable outlook) from Baa1 (stable outlook).

S&P Global Ratings announced a ratings upgrade to A- for Illinois' General Obligation bonds last month, its third upgrade of Illinois' bonds since July 2021. Fitch Ratings upgraded Illinois' bonds by two notches last spring, the first Fitch upgrade for Illinois' General Obligation bonds since June 2000. Illinois received two upgrades from Moody's Investor Service in two separate actions in April 2022 and June 2021.

The upgrades follow the unveiling of the Governor Pritzker's proposed fiscal year 2024 budget which builds on four years of historic progress with balanced budgets, a Budget Stabilization Fund on track to hit $2.3 billion, elimination of the state's bill backlog and reaching $1 trillion GDP. The proposed spending plan maintains the Governor's commitment to fiscal responsibility while growing Illinois into an economic powerhouse and making transformative, generational investments in education and efforts to fight poverty.

The rating of a state's bonds is a measure of their credit quality. A higher bond rating generally means the state can borrow at a lower interest rate, saving taxpayers millions of dollars.
Between 2015 and 2017, the State of Illinois suffered eight credit rating downgrades and sat at the top of many analysts' lists of the worst managed states in the nation. At its worst, Illinois' bill backlog hit nearly $17 billion."

https://www.illinois.gov/news/press-release.26172.html

[left of center]

Excellent news! IL should see substantial savings in terms of interest payments as it continues to improve its credit rating. Hopefully the governor & assembly do not get complacent and continue to right the state's fiscal ship!

[ithakas]

Tax cuts are on the table, thanks to gangbuster revenues

With two months to go before the legislature adjourns and current-year revenues continuing to smash expectations, Gov. J.B. Pritzker said he and legislative leaders are considering tax cuts.

His comments came one week after the legislature’s nonpartisan Commission on Government Forecasting and Accountability, or COGFA, increased its revenue estimates by about $1 billion for the current and upcoming budget years combined.

https://www.chicagobusiness.com/poli...inois-revenues

[Vlajos]

Originally Posted by ithakas

https://www.chicagobusiness.com/poli...inois-revenues

As much as I would love a tax cut, now is not the time for this. The US is headed for a recession, and Illinois always gets hit harder than most states. We are likely to have a huge deficit soon. The excess taxes should be used for a rainy day fund or pensions that are wildly underfunded.

[twister244]

Originally Posted by Vlajos

As much as I would love a tax cut, now is not the time for this. The US is headed for a recession, and Illinois always gets hit harder than most states. We are likely to have a huge deficit soon. The excess taxes should be used for a rainy day fund or pensions that are wildly underfunded.

I think I agree with this.... If we have excess revenues coming in, might as well throw it at issues on the back burner, or a rainy day fund.

[OrdoSeclorum]

Originally Posted by Vlajos

As much as I would love a tax cut, now is not the time for this. The US is headed for a recession, and Illinois always gets hit harder than most states. We are likely to have a huge deficit soon. The excess taxes should be used for a rainy day fund or pensions that are wildly underfunded.

Doesn't have to be one or the other. We're already seeing about $5B above projected revenue, some of which has already gone to rainy-day, debt and pensions. With an extra $574-billion a year we could add $200M a year to pensions, $100M to rainy-day savings and also do a modest tax cut.

The messaging around the tax cut would be more valuable to residents than the cut itself. "Illinois is cutting taxes" and "Illinois' in good enough fiscal shape that they can cut taxes. Open for business!" And so on.

[Chisouthside]

I know city and state finances and revenues work different too but also wondering if this might be a salvo towards the current mayoral race to impress upon the candidates to avoid any new taxes in their platforms.

[Vlajos]

Originally Posted by OrdoSeclorum

Doesn't have to be one or the other. We're already seeing about $5B above projected revenue, some of which has already gone to rainy-day, debt and pensions. With an extra $574-billion a year we could add $200M a year to pensions, $100M to rainy-day savings and also do a modest tax cut.

The messaging around the tax cut would be more valuable to residents than the cut itself. "Illinois is cutting taxes" and "Illinois' in good enough fiscal shape that they can cut taxes. Open for business!" And so on.

A recession is on the way. And the Federal COVID subsidies are almost gone. Just save the money and or contribute more to the pension funds. We won't have a surplus in a year and Pritzker will want to raise taxes.

[OrdoSeclorum]

Originally Posted by Vlajos

A recession is on the way. And the Federal COVID subsidies are almost gone. Just save the money and or contribute more to the pension funds. We won't have a surplus in a year and Pritzker will want to raise taxes.

If we're certain that a recession is on the way, Illinois can simply short the S&P500 and we're guaranteed a perfect hedge. For that matter, so can you. If you're certain about it, nothing's stopping you from getting rich.

Goldman Sachs estimates there's a 35% change of a recession in the next year. That might be a good or bad probability estimate, but anyone who says they know that a recession is coming with strong confidence is lying to themselves.