CHICAGO | Economic & Business Development

[emathias]

Originally Posted by sentinel

There's a reason production was down in 2017: the Teamsters exec who was trying to shakedown the folks at Cinespace has film/tv executives legitmiately pulling back and questioning whether or not more productions should be filmed here in the future..
https://chicago.suntimes.com/chicago...ortion-scheme/

My best friend works on a top 10 tv show that has filmed here for the past four seasons (I've had the privilege of visiting the set a couple of times, and am very familiar with how the business operates), and he and the entire crew of his show, as well as the 4-5 other shows still filming here are REALLY worried that LA production companies are starting to bypass Chicago for Toronto, because there are no new shows committed to filming here in 2018 and beyond - just (maybe) a couple of pilots and possibly (big question mark) one film, compared to multiple films just a couple of years ago.

Entertainment execs are not saints by any means, but even the filthiest of film/tv bosses don't want to be involved with greedy sleazeball union pigs, like with what happened at Cinespace. If nothing new in the development pipeline is announced within the next month or so, then 2018 is gonna be a relatively lean year....and 2019 is probably gonna be worse, sadly.

This is exactly why unions have such a bad reputation with the general public anymore. Even people who believe in the positive aspects of unions are loath to have to defend them in the face of this sort of terrible scenario.

[left of center]

Wow, that's terrible. I just read that SunTimes article the other day about what a success story CineSpace Chicago has been. I seriously hope they weed out the bad apples and corruption so that the city's film industry keep on chugging at full speed.

F*cking teamsters...

[bnk]

Right now Rauner is our biggest obstacle for landing HQ2




https://www.chicagobusiness.com/arti...o-work-for-hq2



January 26, 2018

Rauner and Emanuel, bury the hatchet and get to work for HQ2N




Chicago has been in need of some good news lately, and we got a dose this month when Amazon announced the city is in the running to win the e-commerce giant's second headquarters. Chicago reads like a perfect match for Amazon's HQ2 wish list, with a well-educated workforce as deep in tech as it is in consulting, financial services, law, accounting, logistics, advertising and even retailing—not to mention its relatively affordable housing stock, robust public transit system, global air connections and cosmopolitan lifestyle. So Chicago has had reason to be confident since the HQ2 race began, and now the city is widely seen among the 20 finalists as a front-runner for the prize along with Washington, Atlanta, Dallas and Boston.

That's something to cheer. It's also a moment to look around and see what needs doing, to pull together and organize, and perhaps even sweeten the offer now on the table for Amazon. But before we can do any of those things, the two most important point men on this project—Gov. Bruce Rauner and Chicago Mayor Rahm Emanuel—have to agree to bury the hatchet, and not in each other's skulls.



The governor has displayed a perplexing habit of kneecapping the city and state, never missing a chance to make one of his Turnaround Agenda-style political points even when the situation at hand calls for salesmanship and statecraft and acknowledging the glass may be half-full.

In January 2016, when crisis-rocked Chicago Public Schools was poised to tap the bond markets, the governor went before reporters to declare, "Let's be clear: Chicago Public Schools are in dramatic trouble. They're looking at a disaster somewhere in the next nine months." The mayor wasn't shy about suggesting that the governor was attempting to torpedo the bond deal.


As Crain's Political Columnist Greg Hinz reported later that month, Chicago's near-miss in wooing the international headquarters of General Electric was due in part to the wrangling between Springfield and Chicago—in particular, what sources described as Rauner's effective promise that the state's then-intractable budget war would be wrapped up in a few months, a promise that would in fact take years to fulfill.

Then, last September while in Tokyo on a trade mission, Rauner told WBEZ there's no contradiction in bashing the state while seeking foreign investment. "What it is is the truth."

And while celebrating the Jan. 18 Amazon news, he got yet another shot in: "Gotta keep in mind, Jeff Bezos, the CEO of Amazon, knows how bad taxes are (here). "If we make progress on this, this will send a great message to Amazon that Illinois is not always just raising taxes with a corrupt system."

The mayor, rarely one to suffer in silence, responded testily: "It would be helpful if (Rauner) still was pulling with us." An understandable reply, perhaps, but not helpful. One of Chicago's biggest potential demerits in the Amazon beauty contest, as the Wall Street Journal noted recently, is its reputation for political dysfunction.


If we can't unify around an opportunity like Amazon's potential for as many as 50,000 jobs paying perhaps in the $100,000 range, then this state is even more hopeless than even the governor would have us believe.
...


Amazon could be transformative to Illinois' economy—and if a cooperative effort to lure the company also manages to transform our politics, all the better.

[bnk]

I have read from other site selection bids stating at full build out it would add 700,000 extra people to the region. Ancillary and core workers an their families. That like almost as close to the entire population of Lake county Il for cripes sake! But of course Chicago would not get it all. Cook and all of the collar counties, esp those close to the METRA would benefit from such a landing.

That would for sure make us # 5 surpassing PA once again. If one of the PA sites gets it. Illinois will be locked in at # 6 for a long time ... until we are # 7 sometime in the distant future.

This is something the entire state needs

Rauner should be smart enough to realize this but I think he so bull headed and so tax goal driven that he himself is willing to hold the entire state hostage to get what he want he himself is enough to kybosh the whole plan just by his words and actions.

These are delicate time. Obama and Durban need to be drawn into the mix and personally meet and greet the great Bezos and hold court with him.


Obama did not have an effect on the 2016 Olympics because Rio already used billions in bribes and hookers galore to buy their way in.
There would be no negative for Obama to press some Amazon flesh, esp when he is going to be building his own personal lifetime enshrinement by the UC, not unlike any other president of the USA have done since Regan. I think the latest and least intelligent Bush spent a least a Billion dollars in contributions but build his in somewhere in Texas.

There is no reason Obama cannot raise a Billion likewise for his own library campus.

[the urban politician]

Originally Posted by bnk

Right now Rauner is our biggest obstacle for landing HQ2




https://www.chicagobusiness.com/arti...o-work-for-hq2



January 26, 2018

Rauner and Emanuel, bury the hatchet and get to work for HQ2N




Chicago has been in need of some good news lately, and we got a dose this month when Amazon announced the city is in the running to win the e-commerce giant's second headquarters. Chicago reads like a perfect match for Amazon's HQ2 wish list, with a well-educated workforce as deep in tech as it is in consulting, financial services, law, accounting, logistics, advertising and even retailing—not to mention its relatively affordable housing stock, robust public transit system, global air connections and cosmopolitan lifestyle. So Chicago has had reason to be confident since the HQ2 race began, and now the city is widely seen among the 20 finalists as a front-runner for the prize along with Washington, Atlanta, Dallas and Boston.

That's something to cheer. It's also a moment to look around and see what needs doing, to pull together and organize, and perhaps even sweeten the offer now on the table for Amazon. But before we can do any of those things, the two most important point men on this project—Gov. Bruce Rauner and Chicago Mayor Rahm Emanuel—have to agree to bury the hatchet, and not in each other's skulls.



The governor has displayed a perplexing habit of kneecapping the city and state, never missing a chance to make one of his Turnaround Agenda-style political points even when the situation at hand calls for salesmanship and statecraft and acknowledging the glass may be half-full.

In January 2016, when crisis-rocked Chicago Public Schools was poised to tap the bond markets, the governor went before reporters to declare, "Let's be clear: Chicago Public Schools are in dramatic trouble. They're looking at a disaster somewhere in the next nine months." The mayor wasn't shy about suggesting that the governor was attempting to torpedo the bond deal.


As Crain's Political Columnist Greg Hinz reported later that month, Chicago's near-miss in wooing the international headquarters of General Electric was due in part to the wrangling between Springfield and Chicago—in particular, what sources described as Rauner's effective promise that the state's then-intractable budget war would be wrapped up in a few months, a promise that would in fact take years to fulfill.

Then, last September while in Tokyo on a trade mission, Rauner told WBEZ there's no contradiction in bashing the state while seeking foreign investment. "What it is is the truth."

And while celebrating the Jan. 18 Amazon news, he got yet another shot in: "Gotta keep in mind, Jeff Bezos, the CEO of Amazon, knows how bad taxes are (here). "If we make progress on this, this will send a great message to Amazon that Illinois is not always just raising taxes with a corrupt system."

The mayor, rarely one to suffer in silence, responded testily: "It would be helpful if (Rauner) still was pulling with us." An understandable reply, perhaps, but not helpful. One of Chicago's biggest potential demerits in the Amazon beauty contest, as the Wall Street Journal noted recently, is its reputation for political dysfunction.


If we can't unify around an opportunity like Amazon's potential for as many as 50,000 jobs paying perhaps in the $100,000 range, then this state is even more hopeless than even the governor would have us believe.
...


Amazon could be transformative to Illinois' economy—and if a cooperative effort to lure the company also manages to transform our politics, all the better.

Cut your political crap out, dude.

I think people like you are what’s keeping HQ2 out. Because you don’t know your head from your ass regarding what’s happening in this State, and just how miserable our finances are, and that we actually need some fiscal discipline and need to make tough choices to fix it. That’s what will keep HQ2 away, as well as the fact that people like you will blindly keep voting for fucktards who will just keep adding to the financial time bomb.

[marothisu]

^ For as many problems as Illinois has fiscally, they aren't going to fix it overnight no matter what - no matter if you get everyone aligned. The issue is that you can't have the chief, so to speak, throwing shade at things publicly. This is basic management 101 that everyone who's ever held a position of power whether it's management or representing their own district, state, etc as a public official knows or should know.

Yes, many problems could lead to Chicago not landing a big thing like HQ2 - you could say that about every single city on the list. They all have bad things about them - these are real cities, not utopias. There are real, big problems in all of them - different forms based on the city but still problems nonetheless. However, what you need is the backing of all the major players at least publicly and that will also be a negative mark against landing this or any other big office opening/expansion/whatever. But again, everyone should be smart enough to know these things won't be fixed overnight or even in a year - and the last thing anybody needs is a governor throwing shade at a city in his own state in front of a company they're trying to woo at the same time that would add a lot to the economy of not only the city's metro area but also to the state and even some to the surrounding states. It's completely idiotic IMO no matter what you think of the state's finances/methods. Honestly this goes beyond politics - it's a guy who used to be a businessman, now a politician, who doesn't even know one of the most basic practices of leading something which could have impact on the economy. I don't care what side the politician is on - I would be giving them shit for saying things like this in a situation like this. Now if it was the governor of New York or Indiana or Ohio saying it then fine, makes sense - but not the governor of Illinois while trying to woo someone so big.

This is 101 shit and he should be held to an actual standard of not being a fucking idiot in public speaking/public statement situations like this. I'm not a Rauner fan, but even if this was my favorite politician saying this, I'd think it was completely idiotic purely from a business standpoint and would post the exact same thing.

[bnk]

Originally Posted by the urban politician

Cut your political crap out, dude.

I think people like you are what’s keeping HQ2 out. Because you don’t know your head from your ass regarding what’s happening in this State, and just how miserable our finances are, and that we actually need some fiscal discipline and need to make tough choices to fix it. That’s ill keep HQ2 away, as well as the fact that people like you will blindly keep ving for fucktards who will just keep adding to the financial time bomb.

Cut your crap defeatist. Your like is so hurtful to this entire process.

I thought with your education you would understand the importance of this big process I guess I was wrong.

BTW I voted for Rauner last election FYI. But he really knows the art of blowing a deal. I'm glad you are not involved in our state politics

Do what you do best and avoid personal attacks in the future. That would be my advice you my young friend.

[the urban politician]

Gotta disagree in part, guys. Yes, I grant that Rauner is being an idiot by advertising our political dysfunction publicly.

But you are wrong if you think that companies are not turned off by the State's finances. Regardless of if it's an overnight fix or not, we have junk credit status and may not meet our pension obligations--ever. Would you want to be a company seeking incentives from a State that may not be able to meet its obligations? No budget for 2.5 years. Our state Medicaid system is behind on payments to medical providers. The Secretary of State's office didn't pay rent for months to landlords and nearly got evicted. The list of dysfunction goes on and on. We don't have the political will to fix our problems, and instead everybody just wants to sweep it all under a rug.

Many speculate that this is what cost us the GE HQ.

Trust me, whether or not Rauner opens his mouth, companies are very much in tune with these issues.

[the urban politician]

Originally Posted by bnk

I have read from other site selection bids stating at full build out it would add 700,000 extra people to the region. Ancillary and core workers an their families. That like almost as close to the entire population of Lake county Il for cripes sake! But of course Chicago would not get it all. Cook and all of the collar counties, esp those close to the METRA would benefit from such a landing.

That would for sure make us # 5 surpassing PA once again. If one of the PA sites gets it. Illinois will be locked in at # 6 for a long time ... until we are # 7 sometime in the distant future.

This is something the entire state needs

Rauner should be smart enough to realize this but I think he so bull headed and so tax goal driven that he himself is willing to hold the entire state hostage to get what he want he himself is enough to kybosh the whole plan just by his words and actions.

These are delicate time. Obama and Durban need to be drawn into the mix and personally meet and greet the great Bezos and hold court with him.


Obama did not have an effect on the 2016 Olympics because Rio already used billions in bribes and hookers galore to buy their way in.
There would be no negative for Obama to press some Amazon flesh, esp when he is going to be building his own personal lifetime enshrinement by the UC, not unlike any other president of the USA have done since Regan. I think the latest and least intelligent Bush spent a least a Billion dollars in contributions but build his in somewhere in Texas.

There is no reason Obama cannot raise a Billion likewise for his own library campus.

You were just like this for the Olympics bid. I guess you're just all about these one-time longshots.

That's cool, but I'd much rather Rahm, Obama, and local leaders make a real, dedicated effort to advertise Chicago's brand to the planet. Gun really hard on all cylinders to make Chicago more visible, and with a new image. That would ultimately bring jobs and investment. Lots of jobs. And depending on such a multiyear effort's success, it could bring many or perhaps not so many. But certainly it would be better than 50,000 or zero.

Rahm has a lot of political capital and pull. If I could lay out one strategy with which to make the most of that, it would be something along these lines.

[marothisu]

Originally Posted by the urban politician

But you are wrong if you think that companies are not turned off by the State's finances.

You are misinformed by what I wrote. I never once stated that companies aren't turned off by it sometimes (and everyone on here knows that there's been many companies to still open up offices in the Chicago area in the last handful of years for good reason and this stuff wasn't enough to turn them off to not open up in Chicago area). However, my point around this was that every city on the list and every city in the country has issues that are major. I read a lot of stuff written from Chicago and honestly it just seems like a lot of people have no idea what's going on around the US and that Illinois/Chicago is the only state with issues. Again, these are major issues and many companies will care, but at the same time it's time to cut the crap that Illinois is the only state with any sort of issue that a company might view unfavorably.

I read an interesting article on NJ.com comparing a lot of different "HQ2 finalist cities" in various forms. One was corporate tax - and I wasn't very keen on it by metro but surprisingly to me, Chicago is basically middle of the pack. Boston, DC, Los Angeles, Newark, Philadelphia, Pittsburgh, and Toronto all have higher corporate tax rates than Chicago apparently. NYC is right under Chicago and Boston and Chicago are fairly similar.

Grass is always greener on the other side - state's fiscal issues are not a small deal and could end up being a big deal if there's another big recession soon, but at the same time - every state has shit that stinks in some form or another that is not favorable to any company.

We'll see how important it is to Amazon or any other company in the end. I'm not worried right now.

[the urban politician]

^ This is not a "grass is greener" deception.

We have the largest pension obligations (with no way to pay them except exorbitant tax increases) and the worst credit rating in the US.

Yes, we're still attracting companies, building skyscrapers, and the allure of Chicago is always gonna be there. But we need to understand that this isn't a problem that just parallels problems elsewhere. It stands out like a sore thumb.

[LouisVanDerWright]

On a side note, screw the GE headquarters, they are a dying husk of what once was...

[marothisu]

Originally Posted by the urban politician

^ This is not a "grass is greener" deception.

We have the largest pension obligations (with no way to pay them except exorbitant tax increases) and the worst credit rating in the US.

Yes, we're still attracting companies, building skyscrapers, and the allure of Chicago is always gonna be there. But we need to understand that this isn't a problem that just parallels problems elsewhere. It stands out like a sore thumb.

I was not talking about THIS as a "grass is greener" perspective. I was talking in general - reading comments online is almost disheartening with how "woe is me" everyone is now in Chicago. It's like they have no idea how things are in some other parts of the country. People will complain about income tax rates as if Chicago/Illinois is the worst because their baseline is Texas or Florida, but they don't know anything other than that and just assume that the rate is higher than everyone else's. I'm not talking about this particular thing, just other things in general. It's like "Woe is Me" is the new saying in Chicago in the last handful of years.

[marothisu]

In other news in the Outcome Health saga... maybe some better news? Hopefully they can find someone who is good and do right

http://www.chicagotribune.com/busine...126-story.html

Outcome Health struck a deal with its investors to settle allegations of fraud and end a monthslong and very public legal battle.

CEO Rishi Shah and President Shradha Agarwal have stepped down from day-to-day management of the company to become chairman and vice chair of the board of directors, which will search for a new CEO, according to a news release from the company. The newly expanded board will also include three new independent directors and two investor representatives.

The agreement settles all litigation between the company and its investors, according to the news release.

Shah and Agarwal also plan to join investors and lenders in investing another $159 million into the business, $77 million of which will be used to pay down debt, according to the news release.

[IrishIllini]

Originally Posted by marothisu

I was not talking about THIS as a "grass is greener" perspective. I was talking in general - reading comments online is almost disheartening with how "woe is me" everyone is now in Chicago. It's like they have no idea how things are in some other parts of the country. People will complain about income tax rates as if Chicago/Illinois is the worst because their baseline is Texas or Florida, but they don't know anything other than that and just assume that the rate is higher than everyone else's. I'm not talking about this particular thing, just other things in general. It's like "Woe is Me" is the new saying in Chicago in the last handful of years.

I saw someone complaining about the state income tax hike. They were planning their move to Seattle because Washington doesn't have a state income tax. I was surprised by how many people agreed with the comment, but the vast majority of responses highlighted that housing costs in Seattle are significantly higher than in Chicago. It seems that people are happier giving companies and private citizens their money rather than the state of whatever. It's completely irrational, but people are people.

[the urban politician]

^ Well, if you're talking about housing costs, many won't mind buying a costly house when that house and its future property value will be an element of your personal wealth.

And taxes are just hated across the board

[Halsted & Villagio]

^ But those "No State Tax" states get a good chunk of that money back anyhow... they just get it in other ways. For instance, when I helped a friend of mine open up a second law office in Florida, he had to pay all kinds of fees to the State... fees that he did not have to pay in Illinois. If I had more time today I could give you more examples of this... charged in Florida but did not have to pay anything in Illinois.

There is no "state tax" in Florida but the state of Florida taxes you heavily in other ways.

[left of center]

Originally Posted by IrishIllini

I saw someone complaining about the state income tax hike. They were planning their move to Seattle because Washington doesn't have a state income tax. I was surprised by how many people agreed with the comment, but the vast majority of responses highlighted that housing costs in Seattle are significantly higher than in Chicago. It seems that people are happier giving companies and private citizens their money rather than the state of whatever. It's completely irrational, but people are people.

If you put 100k down on a property, that money is still equity to you, its just less liquid. You will eventually sell the property, or your descendants will inherit it. Either way, that money is still there, locked away in the value of the property.

Paying taxes to a government entity is money that's now out of your wallet/hands/bank account. Its not hard to see taxpayers getting upset about that, especially if they think that the money they are paying is getting misused or wasted, which isn't exactly an overstatement when it comes to the state of Illinois...

[IrishIllini]

Originally Posted by left of center

If you put 100k down on a property, that money is still equity to you, its just less liquid. You will eventually sell the property, or your descendants will inherit it. Either way, that money is still there, locked away in the value of the property.

Lol, how many people have $100k to drop on a property? Seattle's housing is entirely unaffordable. If someone can't afford to or is unwilling to pay $50 per pay period to Illinois, moving to Seattle is going to be a rude awakening.

Originally Posted by left of center

Paying taxes to a government entity is money that's now out of your wallet/hands/bank account. Its not hard to see taxpayers getting upset about that, especially if they think that the money they are paying is getting misused or wasted, which isn't exactly an overstatement when it comes to the state of Illinois...

This assumes that all government spending is bad. The government is responsible for making infrastructure improvements and other projects that increase property values.

[left of center]

Originally Posted by IrishIllini

Lol, how many people have $100k to drop on a property? Seattle's housing is entirely unaffordable. If someone can't afford to or is unwilling to pay $50 per pay period to Illinois, moving to Seattle is going to be a rude awakening.

Its a number I pulled out of my ass, lol. The point still stands, that money isn't gone in the same way it would be gone if you went to Vegas and blew it all on hookers and blow.

Originally Posted by IrishIllini

This assumes that all government spending is bad. The government is responsible for making infrastructure improvements and other projects that increase property values.

Of course not all government spending is bad. Most of it is necessary. But the perception people have doesn't always jive with reality. This is especially true in the current "alternative facts" political climate of ours.

But its safe to say that Illinois residents, who have one of the highest tax burdens in the US, are very dissatisfied with how they think their money is spent. The Cook County beverage tax revolt was a big eye opener for many local politicians, and it may very well cost Preckwinkle and several other Cook County commissioners their job come November.

Regardless, my point here is that money spent on an expensive home is very different from money paid in taxes. In regards to the former, its still your money, whereas in the latter you would count this as one of your expenses, like a car payment or the gas bill. You gain utility from spending that money, but it isn't an investment.