Tax "Incentives" Returned
After Daley spent millions paying companies to move to Chicago without creating a single job and Rahm has continued that tradition, what's the end result?
- United Continental Holdings, parent of United Airlines, is giving back $5.6 million in City of Chicago tax incentives.
The incentive money is tied to United's 2007 move to its corporate headquarters at 77 W. Wacker Drive, along the Chicago River.
Because of United's recent plans to move out of that building and consolidate its headquarters into Willis Tower where it has other operations, the airline said it was "appropriate" to return the money. However, it wasn't necessary.
If United didn't live up to the terms of the TIF handouts, it "wasn't necessary" to return the money? What the hell is that? It would seem that everything written about TIF money being an unaccountable bucket of cash used to bribe certain interests is coming to light.
Looks like they're keeping some other cash though:
- The giveback does not include $35.9 million in TIF money tied to a separate 2009 incentive agreement that involved moving 2,500 workers from Elk Grove Village to Willis Tower.
And buried at the end of the article? This information that almost no one will read:
- United is the fourth company to return TIF funds recently, according to the mayor's office. The others are CME Group, CNA Group and Bank of America, which together returned some $34 million in TIF money last year. CNA and Bank of America fell short of the 2,700 or so jobs each was required to keep in exchange for the tax breaks, which helped them update buildings. However, they returned the money earlier than they had to, a city spokesman said.
We imagine they kept a sizable portion of the money to defer moving costs and the like, essentially making it a risk free move for their stockholders to secure Chicago digs. How very....corrupt.
Labels: money questions