More Found Money
- A growing economy—combined with consumers' desire to have purchases shipped directly to their door—is helping drive up air freight traffic worldwide. City Hall wisely aims to capitalize on the trend.
As Crain's political columnist Greg Hinz has reported, Chicago Aviation Commissioner Ginger Evans is renegotiating leases for warehouse space at O'Hare International Airport. Before you yawn and turn the page, play this little guessing game: How much does United Airlines pay to rent space in a 1.3 million-square-foot cargo facility at O'Hare?
The answer is a nickel. A nickel a square foot. Per year. It's been that way since 1986.
But under letters of intent that American Airlines, FedEx and six other carriers have signed with Evans & Co., ground leases will soon go for $1.75 to $2.25 a square foot, depending on whether the site has direct access to the airport. In addition, rental rates on warehouses on that property, if city-owned, now will go for a standard $10 a square foot per year. United's charge, meanwhile, will rise to the new standard level, $2.25 a square foot, when its current contract expires in 2022. And the city for the first time will begin imposing a fee of $5 a ton on carriers that store their cargo off-field but move it through O'Hare.
Evans says the hikes should net the city an additional $37.6 million a year on O'Hare land leased for cargo, hangars and parking—up more than 900 percent from the current $4 million — while still leaving the field in a competitive position relative to peer airports around the country.
That was certainly a sweetheart deal since 1986 - a nickel per square foot? Who took the bribes on that one to steer a few billion dollars in savings over the past 30 years? Those billions could have been used to spare taxpayers a lot of pain and given certain pensions a lot of growth opportunities.
Labels: money questions
posted by SCC at 12:05 AM
38 Comments:
That is barely a Billion Dollars over thirty years, 1.128 billion to be pedantic.
I wish it was more, and I really wish they had collected it.
Crooked is as crooked does.
It takes two to tango.
Corrupt attorneys on both sides of the fence here.
United Airlines, City of Chicago shame on you.
Corporate greed knows no bounds.
I wonder how many free flights and family vacation fares
were generated under this scheme.
Ginger must raise the rent so she can pay $175K for Vasquez the security czar.
More to steal!
Thank you Ginger.
Your fellow DemocRATS.
United probably paid the momey upfront to build the warehouse. Most likely a long term lease that when completed, the building is owned by the City free and clear. Even the City bureaucrats are smarter than one gives them credit for.
A step in the right direction; however, taxpayer need to shoulder their fair share of cost for living in a world class city. Tax adn fee wise, the citizens of Chicago/Cook Co., have had it too easy for too long. This ain't Kansas you know.
That money would have never ever went to pensions. Just more money for some stupid new idea on how to make the city great with most of it going in someones pocket
That warehouse property is worth probably about $25-$75 a square foot but when you go look at the campaign contribution website you can see how much money is donated to the elected that is how they pay for the warehousing they get a sweetheart deal the over taxed citizens get the shaft! Whatever happened to investigative reporting oh that's right all the reporters are owned they are all quick to report on the phony Russian bullshit with the president of United States The dishonest media constantly talks of this but since they are owned like the slaves they are by the elected nothing happens. How long did ginger Evans know of this? Is there a federal investigation being conducted into this?
There needs to be a lot more investigating done. For those warehouses that are privately owned, who the hell would accept a nickel a foot??? That wouldn't even cover the property taxes. Unless of course, King Madigan worked out some really sweet bit of chicanery with taxpayer dollars spread around to anyone with his hand out. Only in "Illinoise".
Can anyone remember the Daley Crime Family or their current smaller than life minion the twerp murder mayor?
Finally, someone making sense?
Ed Burke got his cut only in chicago could his happen
It's about time someone with a little real estate sense looks at true value and worth negotiations a decent real estate lease for the taxpayers of Chicago. You have to wonder if she figured this out or one of the political flunkies did.
Or, with Chicago's shrinking population, the airlines could just quit services to and from the city. Why would they stay? On this very website, people claim to no longer buy groceries or gas or whatever, in the city because of taxes. Sometimes businesses just close up and move on. Besides, does anyone really believe that new tax money will be used to off set or reduce any current taxes?
If they collect more tax dollars, they'll just use it to import more illegal aliens or defend criminals that do wind up in court.
How long ago was it that the projected income from a new tax even come close to the estimate? Besides, Airlines never pay for anything. Costs are passed on to the customers.
Taxes are necessary for governments to operate, but a liberal government will never have enough money.
J.J.
So this "found" money will go to shore up our pension?
I have said it before, WE NEED TO HAVE EVERY GOVERNMENT AGENCY IN THIS COUNTRY INDEPENDENTLY AUDITED. This goes for sweetheart deals like the airport that probably went to politicians in the form of campaign donations, that should be required to be paid back by the politician, party or PAC that may have benefitted in whole plus interest!!!
While we are auditing, every TIF in the state should face the same scrutiny.
There is no telling how many new prisons would need to be built and we would solve the pension funding crisis as well as balance the budgets.
Now the public can begin to understand how civil servants like the Daleys enter politics broke and retire millionaires.
I'm going to predict that the Gary, Milwaukee, and Rockford airports will have an uptick in air cargo, with Milwaukee the biggest beneficiary since they have a nice free highway to all those distribution centers conveniently located in Pleasant Prairie.
Once again, the politicians' predictions about tax revenue will be mysteriously inaccurate.
The revenues generated at either airport can only be used for airport operations. Though the city has tried to divert some to the city's general revenue, lawyers aren't buying it. The airlines pick up the tab for airport operating expenses in excess of revenues. Still plenty of room for corruption though.
I wasn't a sweetheart deal since the airlines paid to build and maintain the buildings.
"City Hall wisely aims to capitalize on the trend."
You spelled Cannibalize wrong.
As for who took bribes on that particular sweetheart deal, well, kickbacks and campaign contributions gotta come from somewhere to be laundered correctly through that progressive tax code, right?
Well, expect prices of everything to go up massively in 2022 because A) the price for rental will go up by then, you know this. Government wants more tax revenue so property tax must be driven up by driving property VALUES up. You call know how this works. And then there is B) Maybe there is no bribery at all, there is simply a "united" (pardon the pun front where shippers stood together and said NO MORE to the amount Chicago Government could SKIM?
Government at all levels has reached the brick wall. It has come up with all the different "streams", tributaries, trenches, gutters, and every other synonym one can come up with the milk the cattle called Americans and THEIR business. They are now at the point they can only jack up the already existing waterways, rather than create new ones.
Doing that is risky, because there is no way now to pit people, groups, against each other to distract people away from what is REALLY happening - government just taking too large a chunk. Look at the gasoline there in Chicago for a tidbit, a morsel. An additional ten cents a gallon, just for little old Chicago! That makes it roughly 65 cents a gallon that governments TAKE, off a product it has nothing to do with bringing to market except riding coattails, driving up cost intentionally with policy and skimming. Governments take That cut, while Station OWNERS profit between 4 cents and 12 cents a gallon.
Government is at a point now where it is raping more and more and more industries this same way, unable to create NEW taxes without going FULL retard like the sugary drink tax.
Gotta LOVE it. I actually look FORWARD to the coming fight.....as the story will be the MASSIVE price increases for all goods coming through Ohare, or, more hilariously, as many goods manufacturers or retailers do like many gun folks have done for years - simply REFUSE to SHIP TO CHICAGO altogether because it just ain't worth the headache, the risks and the rapacious skimming at every turn.
But hey, keep voting Democrat to protect those PENSIONS.....or something.
This is how business gets away from paying their fair share....as you stated millions of dollars missing from city revenue
Again, it is very easy to shop for groceries and get sick in the stomach watching a woman paying for food with LINK. Your guess is she is lazy and refuses to work, you focus on the phone she is using, how healthy the kids, look, etc. You go home but you ignore the obvious. Pension money mismanaged or stolen, property such as this rented for next to nothing, billion dollar companies not paying any taxes. That matters more than someone getting 200 a month for damn food. The manufacturing jobs are gone, so are other menial labor gigs. America has set shop up in India and the Philippines with call centers. Trump has not made a move to get any of those jobs back. Zero movement. You get jobs back to America much of this bullshit ends. My rant.
United & American crying poor mouth?
The two CEO's total annual compensation tops $30 mil a year.
Not only Daley connected developers and venture capital outfits are raking in the money.
There's earth movers and builders that donate heavily to Democrats.
Try finding who the building owners and of all the vacant or leased properties that popped up when the new south runways were built, FedEx has a new building on lease and many vacant building exist in the wake of Irving Park re-route.
Then there's the whole north airfield redevelopment.
Lots of empty building to be demolished for another runway and more land being cleared for warehousing.
Must mean more Cook Co. real estate revenues coming why the soda pop tax?
With just Ohare's ecomonic engine revenues all homeowners should be paying only $1500 a year for property taxes.
We never see the ecomonic benefits of Ohare like Las Vegas sees from the casinos.
Only Daley, Pritzker and the like are cashing in first.
A nickle a square ft for the last 50 years? Your kidding? Raise my taxes, charge for garbage pick up, cut my benifits and your still charging what was charged in the 1960's. That is total bullshit. Someone should be in jail on this one.
We have entrusted our so called political leaders with the ability to tax, to regulate, to enact laws, to exercise fiscal diligence, and to conduct their public policy actions with the best interest of the public in mind.
Evidence of government officials choosing winners and losers is apparent when tax breaks and specific legislation are granted after intense lobbying with an expectation of political campaign contributions and other perks given to so called public leaders. The system is broken when lawyers acting as lobbyists can gain a competitive advantage for a few at the expense of the taxpayers. And legally I might add. Politicians love absolute control. Power and money are the prime motivators for the perpetually elected ruling class. Best govt money can buy.
Similarly, Michael Madigan can screw up the state's finances for the past fourty years. The media proclaims a "victory" when confiscatory taxes targeting the working class are passed overriding a gubernatorial veto. Screw up the states finances for decades to the point of bankrupcy and junk bond status. Raise income taxes on Joe six pack . Politicians are given media praises and annointed "winners" for a continuation of reckless out of control spending and punitive taxing schemes.
The media obviously sides with reckless govt spending and powerful politicians giving a thumbs up to legislated habitual criminal financial assaults on the working class. Why do you suppose media and the politicians are despised?
Speaking of more found money...
Nine-and-a-half just gave away $5 million in grants to aspiring minority only business owners in the south and west side ghettos. Money is supposed to be earmarked for improvements to properties/businesses. One chick - I believe she was from Austin - indicated her quarter million dollars was going to be put toward a new "sports bar". Just what the ghetto needs... another liquor establishment.
Another "entrepreneur" remarked: "This grant means it is going open up a door, an avenue for me not to have to use my own money or not to have beg someone to give me a loan to rehab this property," said Letrusia May, L. May Creations.
Yeah, sure, Letrusia. The first to demand equal rights and treatment unless it's GibsMeDat Time. The Taxpayer funded nanny state chugs on full steam ahead. The story indicated that people can reapply again in late fall and that they want to expand the program. Makes my stomach churn.
For the whole sickening story to where more of our pension $$$$ is going, Google "$5M IN GRANTS AWARDED TO RE-ENERGIZE CHICAGO NEIGHBORHOOD RETAIL CORRIDORS".
And before I forget...
FUCK YOU, RAHM.
Anonymous said...
United probably paid the momey upfront to build the warehouse. Most likely a long term lease that when completed, the building is owned by the City free and clear. Even the City bureaucrats are smarter than one gives them credit for.
7/09/2017 02:32:00 AM
Yep, they're so smart they're stealin' from you while you're looking straight at 'em.
Any contracts at the airport on money stays at the airport and doesnot come into the general budget . And Gary airport is part of O'Hare Midway and Gary-Chicago international airport.
Watch for some to leave.
Much like UPS did for Rockford Regional AP.
Saving approx. $ 4 Million a year.
ORD has the only group of commissioners
that all report up the chain. Six layers that is....
Hey Mayor Rambo....want to locate more funding....
dig into the once Daley Store Front aka O'Hare AP.
If the brothers Daley can make Millions to include
Maggie's best girlfriend too.....then why up set
the most corrupt airport in the country.
Wonder how much fast Eddie the alderman pulled in
from owning the old Gaslight club...days ?
Anonymous Anonymous said...
Again, it is very easy to shop for groceries and get sick in the stomach watching a woman paying for food with LINK. Your guess is she is lazy and refuses to work, you focus on the phone she is using, how healthy the kids, look, etc. You go home but you ignore the obvious. Pension money mismanaged or stolen, property such as this rented for next to nothing, billion dollar companies not paying any taxes. That matters more than someone getting 200 a month for damn food. The manufacturing jobs are gone, so are other menial labor gigs. America has set shop up in India and the Philippines with call centers. Trump has not made a move to get any of those jobs back. Zero movement. You get jobs back to America much of this bullshit ends. My rant
This is what happen when you make a job a requirement for food stamps. Huge drop in the rolls. Link is below.
http://www.foxnews.com/politics/2017/07/04/food-stamp-rolls-plummet-in-states-that-restore-work-requirements.html
Maybe you old schoolers will remember this one. North Avenue where the massive shops are now, used to be empty CTA owned property. The city sold that entire fucking piece of land for ONE DOLLAR, period. Yes one fucking dollar to a obviously connected member of the Bridgeport GED crew. Imagine how many millions could have been direction to, ah fuck it. Well you get what I am saying. Kass is still refusing to discuss the felons on the loose for electronic monitoring.
Let's not forget what happens when you ask where the money is going. Ask chief mauer
Cut 25 % of city ,county and state workers
Job will get done in three hours a day instead of two hours a day
Where was the IG when the city bought the closed hospital property for the Olympics , Chicago never got. Bought the property with tax payers money even before knowing if Chicago was getting the Olympics. Who got rich with that scam!!?? Hear crickets
"... however, taxpayer need to shoulder their fair share of cost for living in a world class city."
Chicagoans need to quit gulping the Kool-Aid, get a clue, and take a look at some real world class cities for a change. Maybe then they'd finally quit voting in the same tired-ass political crooks year after year.
"Trump has not made a move to get any of those jobs back."
Yeah, because he's only been in office what....oh...only 6 months. And all of it under extreme attack from the biased media, left-wing babies squalling like they've all got full diapers, and the Republican establishment. Keep your shirt on.
Wasn't a whole bunch of federal dollars and matching grants used for the airports expansion and remodeling?
Was there any audits for those funds?
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