CHICAGO | Economic & Business Development

[LouisVanDerWright]

Originally Posted by marothisu

Didn't a poster on here say something was already in the works with Netflix? Anyway, why wouldn't they? Chicago has the largest soundstage outside of LA now and thousands of people working in the industry. The work force is already here and could attract more. It would be nice to see.

Cinespace just purchased another large old warehouse at 31st and Kedzie to expand their sound stages largely to accommodate Netflix. I've also heard FX and Showtime are looking to move more production here.

[sentinel]

Originally Posted by marothisu

Didn't a poster on here say something was already in the works with Netflix? Anyway, why wouldn't they? Chicago has the largest soundstage outside of LA now and thousands of people working in the industry. The work force is already here and could attract more. It would be nice to see.

I may have posted something a while ago, based on my connections on Empire, Chicago Med, the Chi, etc. Yes, Netflix is very interested in Chicago; has already invested in shows currently in production, as well as long-term plans for a more permanent facility..."Fargo", season 4 MAY film in Chicago instead of Toronto..there are a number of..'structural' and operational issues that are coming to a head with the production office there, and Chicago is the no-brainer alternative.

The Georgia abortion issue is very much a hot-button item, but other than a number of high-profile actors/producers/directors that are immediately (and rightfully so) breaking ties with filming in Atlanta, like Kristen Wiig, most bigwigs are deliberately not doing so.....yet. From what I've heard from reliable insiders and producers on the aforementioned shows, studios like Disney, WB, Amazon and Netflix are waiting 'to see how the apppeals process plays out'. However, privately, all of the organizations mentioned above are very much planning exit strategies out of Atlanta, which is very difficult because all of those studios have invested 1-3 billions of dollar in production facilities. The era of male-dominated production heads is very much over, and each of the major studios that have productions in Atlanta have very powerful women in charge, and they will not stand for the draconian laws that are dominating the political landscape in the South. Coupled with an extensive and growing production environment here, and a very friendly political environment (especially with Pritzker), Chicago is ripe for new shows/films to start here. Studio heads are deliberately biding their time and will announce relocations in the months ahead, from what I've heard, anytime between now and before Thanksgiving. We shall see...

Edit: the Jussie Smollett issue is one of the reasons why Empire is ending after season 6 starts filming this July. The public facade of the main actors feverishly 'supporting' Jussie and 'demanding' he return to the show is utter bullshit. My best friend has worked on the show since the pilot and they speak to the actors EVERY DAY. NO ONE wants Smollett back - the production feels he cannot be trusted, and before the last season was publicly announced, the other main cast members were FURIOUS that Smollett's bullshit may have jeopardized season 6 because it would have meant no sweet syndication money (syndication starts on or around 100 episodes..which Empire was just slightly short of after season 5).

Edit edit: The funny irony is that the major studios feel completed played by the Georgia GOP, in that they privately LOVE the Hollywood money that has rolled in over the past 10-12 years, but are playing the hardcore conservative base as well...and also publicly stating that they 'don't need Hollywood money', even though they very much do because it's a major part of Atlanta's economy now. Disney and Amazon especially are L.I.V.I.D. because they have brought so much business to Atlanta, but feel betrayed because the major tax incentives are still incredibly sweet, but the GOP state government has them backed into a corner, because the studios feel it's a lose-lose situation if they pull out of the state immediately. NO major studio wants any negative press, especially for something as sensitive as this.

[sentinel]

edit

[the urban politician]

Not sure if this was posted here:

Snapsheet raised $29 million

https://www.builtinchicago.org/2019/...-29-m-series-e

[bnk]

https://www.chicagobusiness.com/educ...neering-school

May 28, 2019 10:00 AM updated 3 minutes ago

U of C adding molecular engineering school
$75 million in funding from the Pritzker Foundation is enabling the institution to add its first new school in 31 years.

Lynne Marek



The University of Chicago is creating its first new school in 31 years, adding the Pritzker School of Molecular Engineering with $75 million in new funding from the Pritzker Foundation.
The university, which hasn't had an engineering school until now, said the school will be the first of its kind in the U.S., taking an interdisciplinary approach to the engineering field with a focus on research and developments starting at one of the smallest levels of science, the molecule.
It will become the seventh of the university's schools, which also include the Booth School of Business and the Pritzker School of Medicine.
The new school will grow out of the university’s Institute for Molecular Engineering and continue the institute's ties with Argonne National Laboratory. It will offer undergraduate, graduate and doctorate degrees, with research in quantum engineering, biotechnology, immuno-engineering, advanced materials, energy storage and clean water, among other things. It will also work with the school's Polsky Center for Entrepreneurship and Innovation, with an eye to "rapidly commercialize technologies," according to a statement. The university's scientists and engineers in the field have already launched six companies, it said.

...

[the urban politician]

^ That's great news, about time!

[the urban politician]

Hear that roar?

That's the downtown apartment market

https://www.chicagobusiness.com/comm...reak-continues

[LouisVanDerWright]

Speaking of Netflix getting pissed at Georgia:

https://www.cnbc.com/2019/05/28/netf...aw-stands.html

[LouisVanDerWright]

Originally Posted by the urban politician

Hear that roar?

That's the downtown apartment market

https://www.chicagobusiness.com/comm...reak-continues

It shouldn't surprise anyone to see that the number of completed units will plunge to 2,900 in 2020. That's almost perfectly coincidental with the ARO expansion in late 2015. Basically the number of zoning changes dropped dramatically starting in 2016 which, if you know anything about highrise construction project lifecycles, puts a big dent in deliveries 3-4 years later. "Affordable" housing mandates at it again, increasing supply! Oh wait, except not, rents are skyrocketing because demand is not being met.

There is virtually unlimited demand for my units right now. Like I said a while ago I pre leased an entire building 3+ months from delivery and still have a waiting list. I'm turning tenants away and seriously considering jumping on a 50ish unit adaptive reuse given the impending supply shortage in 2020. Next year is going to be a big year for rent increases if the general delivery of units across Chicago follows the drop from 4000+ a year downtown to 2900.

[OrdoSeclorum]

Originally Posted by LouisVanDerWright

I'm turning tenants away and seriously considering jumping on a 50ish unit adaptive reuse given the impending supply shortage in 2020. Next year is going to be a big year for rent increases if the general delivery of units across Chicago follows the drop from 4000+ a year downtown to 2900.

"Why, this intrusive regulation has made bringing new units onto the market so difficult that I'm thinking of bringing 50 units onto the market!"

We had about eight years of every developer in town saying that there was about to be a huge apartment glut because there was too much getting built and that they planned to stop building. But why believe what developers actually said when that would deprive a man of an opportunity to put new batteries in the bullhorn and put on his sandwich-board?

[marothisu]

Originally Posted by sentinel

I may have posted something a while ago, based on my connections on Empire, Chicago Med, the Chi, etc. Yes, Netflix is very interested in Chicago; has already invested in shows currently in production, as well as long-term plans for a more permanent facility..."Fargo", season 4 MAY film in Chicago instead of Toronto..there are a number of..'structural' and operational issues that are coming to a head with the production office there, and Chicago is the no-brainer alternative.

The Georgia abortion issue is very much a hot-button item, but other than a number of high-profile actors/producers/directors that are immediately (and rightfully so) breaking ties with filming in Atlanta, like Kristen Wiig, most bigwigs are deliberately not doing so.....yet. From what I've heard from reliable insiders and producers on the aforementioned shows, studios like Disney, WB, Amazon and Netflix are waiting 'to see how the apppeals process plays out'. However, privately, all of the organizations mentioned above are very much planning exit strategies out of Atlanta, which is very difficult because all of those studios have invested 1-3 billions of dollar in production facilities. The era of male-dominated production heads is very much over, and each of the major studios that have productions in Atlanta have very powerful women in charge, and they will not stand for the draconian laws that are dominating the political landscape in the South. Coupled with an extensive and growing production environment here, and a very friendly political environment (especially with Pritzker), Chicago is ripe for new shows/films to start here. Studio heads are deliberately biding their time and will announce relocations in the months ahead, from what I've heard, anytime between now and before Thanksgiving. We shall see...

Edit: the Jussie Smollett issue is one of the reasons why Empire is ending after season 6 starts filming this July. The public facade of the main actors feverishly 'supporting' Jussie and 'demanding' he return to the show is utter bullshit. My best friend has worked on the show since the pilot and they speak to the actors EVERY DAY. NO ONE wants Smollett back - the production feels he cannot be trusted, and before the last season was publicly announced, the other main cast members were FURIOUS that Smollett's bullshit may have jeopardized season 6 because it would have meant no sweet syndication money (syndication starts on or around 100 episodes..which Empire was just slightly short of after season 5).

Edit edit: The funny irony is that the major studios feel completed played by the Georgia GOP, in that they privately LOVE the Hollywood money that has rolled in over the past 10-12 years, but are playing the hardcore conservative base as well...and also publicly stating that they 'don't need Hollywood money', even though they very much do because it's a major part of Atlanta's economy now. Disney and Amazon especially are L.I.V.I.D. because they have brought so much business to Atlanta, but feel betrayed because the major tax incentives are still incredibly sweet, but the GOP state government has them backed into a corner, because the studios feel it's a lose-lose situation if they pull out of the state immediately. NO major studio wants any negative press, especially for something as sensitive as this.

This is a lot of awesome info and I really do hope that more production comes to Chicago (not because certain bills are passed - just in general). It makes sense completely and the government is pretty damn friendly to all of this. Regarding Jussie - why do the actors publicly support him if behind the scenes they all don't trust him anymore and want him gone?

This is going to be really interesting to see what happens - and again, not at the expense due to a bill, but just in general hopefully Chicago keeps getting more and more..

[Handro]

moved to politics thread

[the urban politician]

Originally Posted by Handro

https://www.chicagotribune.com/polit...528-story.html

Lightfoot proving she has more than a little political muscle.

Also:



Lol just send this guy to jail already.

Great stuff! But remember, we already have a Politics thread.

[Baronvonellis]

Originally Posted by LouisVanDerWright

There is virtually unlimited demand for my units right now. Like I said a while ago I pre leased an entire building 3+ months from delivery and still have a waiting list. I'm turning tenants away and seriously considering jumping on a 50ish unit adaptive reuse given the impending supply shortage in 2020. Next year is going to be a big year for rent increases if the general delivery of units across Chicago follows the drop from 4000+ a year downtown to 2900.

Yea, I was looking for a roommate for my tiny spare bedroom with no closet, and I got a dozen people in days wanting to move in. They were begging me how fast I could let them move in. I should have raised my asking price.

I think developers were thinking there was going to be a recession by now. But so far it doesn't seem to be the case.

[Handro]

Originally Posted by the urban politician

Great stuff! But remember, we already have a Politics thread.

oops! Thought I was in that thread

[the urban politician]

Tempus raises $200 million

https://www.chicagobusiness.com/john...million-tempus

[LouisVanDerWright]

Originally Posted by OrdoSeclorum

"Why, this intrusive regulation has made bringing new units onto the market so difficult that I'm thinking of bringing 50 units onto the market!"

We had about eight years of every developer in town saying that there was about to be a huge apartment glut because there was too much getting built and that they planned to stop building. But why believe what developers actually said when that would deprive a man of an opportunity to put new batteries in the bullhorn and put on his sandwich-board?

You obviously can't comprehend the complexities of Chicago's zoning process. I am considering my project because it would be as of right and include ZERO ARO units. The ARO change only applies when a zoning change occurs. So yes, developers downtown have massively pulled back on new projects that require zoning changes and have switched to smaller as of right projects or already approved plans. That's what's causing it. That's also why there is a boom in smaller neighborhood new construction ramping up right now. No one can make the numbers work on TOD zoning changes (which is why you haven't seen a new one proposed in years) so they are ripping down truly affordable frame 3 flats on Western, Armitage, whereever, and slapping up new happy brick 3 and 4 flats. Doesn't change the supply of housing much, but it makes it more expensive.

But nice try though!

[the urban politician]

Why Chicago is starting to look like a real tech town

[sentinel]

Originally Posted by marothisu

This is a lot of awesome info and I really do hope that more production comes to Chicago (not because certain bills are passed - just in general). It makes sense completely and the government is pretty damn friendly to all of this. Regarding Jussie - why do the actors publicly support him if behind the scenes they all don't trust him anymore and want him gone?

This is going to be really interesting to see what happens - and again, not at the expense due to a bill, but just in general hopefully Chicago keeps getting more and more..

Indeed - I spoke to my buddy earlier today and he confirmed that FX is relocating Fargo Season 4 to Chicago from Toronto. Filming starts September thru March.

Also, this article reinforces what I was talking about in my earlier post:

https://www.hollywoodreporter.com/ne...nacted-1214329

Regarding Jussie, the other main actors are publicly 'supporting' him to protect their own hides, because any semblance of fractures in the production 'family' and the new owner (Disney) will not have proceeded with Season 6. Disney is very good at cutting off their weakest link, especially for IP that are new to the fold, and are potentially seen as 'problematic.'

[bnk]

http://www.chicagotribune.com/busine...529-story.html


Chicago's international port looks for funds to improve its facilities and attract more shipping business



Mary Wisniewski By Mary Wisniewski •Contact Reporter
Chicago Tribune


June 3, 2019, 5:00 AM



Most Chicagoans look at Lake Michigan and think recreation — a view and a beach, swimming and sailboats.

But the lake is also the site of a major freshwater port that draws oceangoing ships from the St. Lawrence Seaway. The Port of Chicago is in need of money to fix its aging infrastructure, and it hopes to snag a portion of the $35 million earmarked for Illinois ports in Gov. J.B. Pritzker’s capital plan.





At the South Side port, Chicago still looks like the City of Big Shoulders — with barges docked along the Calumet River and a yard heaped with shining piles of steel and aluminum. Lime, chemicals, cement, grain, stone, industrial coke and wood also come through the port, and sugar is delivered to transit storage sheds, processed and put into freight hopper cars on its way to being made into Tootsie Rolls. The port is overseen by the Illinois International Port District, which connects the Great Lakes with the Illinois waterways that lead to the Mississippi River.

A cruise ship official once complained to the district’s executive director, Clayton Harris, III, that the port looked like a “junkyard.” But Harris sees something else.





“From my perspective, it’s beautiful. All this steel, all you see is the economy growing,” said Harris, a former prosecutor and state transportation official who has run the district since 2016.

...


The Illinois Ports Association asked for $250 million for all ports, and the port district alone wanted $100 million. Pritzker’s draft $41.5 billion capital bill last month included $35 million for all 19 Illinois port districts.

Harris said he’ll take what he can get, and he’s happy the General Assembly has begun to recognize the ports’ importance to the state’s economy.

“It’s nowhere near what we need — but it’s awesome, ” Harris said. “We were never in the conversation before.”

Why $100 million? The district wants $25 million to rehabilitate the Lake Calumet dock wall and another $10 million for paving the roadway between the dock wall and the transit sheds, and the removal of old rail. The district also wants to build new transit sheds, replace the fire suppression system and add about a mile of additional rail at the Lake Calumet facility.


...


“Any expert will tell you that the value and utility of a port depends on two things — location and facilities,” said Forde, a lawyer for former Mayor Rahm Emanuel who was appointed to the board in 2011. “We have an absolute five-star location, at the intersection of the Great Lakes and the Mississippi shipping networks and in the railroad hub of North America. But our infrastructure has a lot to be desired, and that’s the result of our limited resources.”