Still Giving it Away
- The Chicago area’s bid for Amazon’s second North American headquarters includes $2.25 billion worth of incentives — and even more if the company chooses the Thompson Center or the old Michael Reese Hospital site where the city and state could provide free land.
The incentive package includes:
Roughly $1.4 billion in state EDGE tax credits. The newly-revised program provides a 50 percent tax break for every job they create in Illinois.
$170 million in state sales tax breaks for building materials purchased by and new construction completed by “high-end businesses.”
$60 million in property tax breaks through the city and county programs known as Class 7B and 7C.
$450 million in site-specific infrastructure improvements that would come from the Illinois Department of Transportation, the Chicago Department of Transportation, the CTA and other agencies.
$250 million worth of investments in education, workforce development and “Neighborhood Opportunity Funds” to make certain that all Chicagoans can qualify for the 50,000 high-end Amazon jobs and that businesses that spring up or move here to support Amazon locate in Chicago neighborhoods.
Free land worth $100 million, if Amazon chooses to build its second headquarters at the old Michael Reese Hospital site purchased by former Mayor Richard M. Daley as the site for an Olympics Chicago didn’t get. If Amazon chooses either to re-purpose or demolish and rebuild the Thompson Center that the state has been trying desperately to sell, the free land would be worth even more money.
Amazing that Chicago can afford to give up all that to a Top Five market value company. The owner of Amazon trails only Bill Gates among richest Americans clocking in at over 80 billion in personal wealth.
Rahm might be headed for a Shortshanks-type disaster though:
Rahm might be headed for a Shortshanks-type disaster though:
- The incentive package pales by comparison to the $9 billion that New Jersey Gov. Chris Christie offered in hopes of luring Amazon to Newark.
Out-bribed again?
Labels: money questions
posted by SCC at 12:01 AM
51 Comments:
Where would they put everything in the Thompson center....Verticle... or rebuild... either way they want something flatter.
Shit face Rham, like Daley was when Brazil got the Olympics. Again, they don't know how to do business--- don't even know how to do taxes where they can draw in money. Rham can't do anything correct- just ruin people's lives. It's the democratic way
50,000 jobs ????
And if they do move here....Taxes will go up to make up for all the freebies.....
You just can't make this shit up!
Perhaps Bezos can devise a few advance scout teams ala "Running Man" throughout our fair city, maybe only then he will realize his money, resources and personnel would be better utilized elsewhere.
O.T-SCC any word/planning for Nov 4? Latest is that some even more unsavory types have signed on with their cause.
Amazon would be nuts to build a HQ in Chicago.
A Distribution Center in the suburbs with connections to the freeway network might make sense.
Kudos to SCC for informing readers that Amazon
is one of the Top 5 companies in the S&P 500
by Market Cap. It's a mind blowing list going
downward from #6.
It can be found at: Dogs of the Dow, Largest
Companies by Market Cap.
Market Caps as of 10-20-17 (last Dow record high):
Apple $807.1 Billion
Google 696.4 Billion
Microsoft 607.0 Billion
Facebook 508.2 Billion
Amazon 472.2 Billion
TOTAL, Top 5: $3,090.9 Billion
(that's $3.0909 TRILLION)
Hey a billion here a billion there. Just to be clear Christie/NJ is offering $7B in tax credits which he says will generate $9B in economic benefit. Anyway Amazon received 238 bids and there's no doubt Rahm will be short again. Pun intended. Maybe if they offer to change the name of the city to Amazon like a city in Georgia has offered there might be a chance.
They can't give it away if Bezos is smart enough to stay away.
Re: Top 5 by Market Cap
(value of stock on open market)
The Rich Are Getting Richer
7-14-2017: $2,957.2 Billion
10-20-2017: $3,090.9 Billion
--------------------
Total increase: $133.7 Billion (UP 4.5211%)
in 70 trading days.
Nice work if you can get it.
Perhaps Rahm will hand over every financial break he can, including destroying this city's budget....
in exchange for a lifetime seven-figure job with Amazon.
Stranger things have happened, haven't they, Katten Muchin Rosenman, LLP?
If the City doesn't build something on the old Michael Reese property soon, If I remember correctly, the City owes the owner a lot of money. Like Millions.
Chicago is not in the running, unless you count Bezos running away from Chicago as being in the running.
Winning the bid is wishful dreaming! Amazon is looking to the future and this place is going down in flames. In years to come history will say the politicians destroyed Chicago only because the voters kept voting the same ones in. When most voters come to their senses they know they only have one choice that's, leaving the state. Think about it; why would Amazon want to end up like Sears. Amazon hasn't gotten this far by making dumb cooperation moves. Chicago, and Cook County is a cancer that spread throughout Illinois. The state of Illinois is broke, the Biggest County is Cook and it is broke. Oh, wait the biggest city in Illinois, Chicago is broke. All junk bond status. Do you really think they are coming here. They are betting on sure things not reckless corporate gambles. High crime, large gang population, major drug problem, Police department that needs overhaul, a population that is doing a self evacuation, high murder rate, high unemployment and way to many regulations. Amazon isn't coming. It's all a distraction and wishful thinking that someone is going to save Chicago.
Good luck finding a moving truck out of here.
I read the article about the Amazon proposal and it made me sick. Imagine if any of us, and I am not including race into this at all. You walk up to McDonalds requesting a franchise. Your proposal says, you buy the land for me (that is how McCrack makes their money), you give me a tax break up to 50% of all the employees, throw in another 5 years of incentives. Now how soon would they call security on you? Jeff Bezos is not stupid. That is why when you walk into a casino or a convenience store you never see the rich playing those games. Tim Cook of Apple is the same. How much money did Apple spend on that new store in Chicago? But remember, most of us in Chicago are lazy and refuse to work.
I can't give it away on 7th Avenue
This town's been wearing tatters
(shattered, sha ooobie shattered)
It's hilarious to hear people who think Chicago is still in the running.
It's as if the Illinois politicians don't live here or see how bad this state has become.
Amazon is not interested. If you want to understand why, ask people who live outside Illinois.
How does a citizen get some tax relief? All these taxes drove business from the over taxed kingdom of Chicago. Some real piss poor money management by our elected.
Just remember they are called tax breaks but if the company doesn't come here we get 0 taxes. It's still a positive to the tax base.
Just my rant. If the city and state has this type of cheddar available for a business, then why is it when I apply for a business license there is nothing free for me? Let me open up a restaurant, downtown, land free, rent free for a couple of years, tax incentives for employees. That would give me a very good head start and employee many people. Okay not multiply that by 100. Why give this welfare to Amazon? Why not citizens already here who need the jobs and have the skills to make it happen?
Jersey? Eewww. Gross.
With the stock market rising so rapidly our pension investments must be making hundreds of millions, hope the investors are working with us not against us! To the people at the Pension Board no more bad investments no more given tens of millions in political investments like was Given to the Daley family! 60 million gone that's a lot of money how is the investigation into who gave away "our money" going?
Dv urban investments
https://chicago.suntimes.com/news/the-watchdogs-pension-funds-lost-millions-on-deals-with-daley-nephew-obama-pal/
Still relevant today that is our money given away this was criminal hopefully it will be investigated fully!
Amazon didn't get where they are by being dumb. Neither Chicago nor Newark will win unless Amazon is looking to locate in ass backwards, democrat run down, crime filled shithole.
Never under estimate the twerp murder mayor he offered his soul to the devil himself many times over and had promised to reform the Police as an added incentive to sweeten this deal...
Rahm still trying to buy friends?
The state Is broke the city is broke what the fuck
Hey, yea think this little jagoff isn't looking for that big Amazon consulting job when he loses the next election.
Just let Amazon go somewhere else. Why are taxpayers paying for all of the tax incentives.
Also, Chicago is one of the safest cities in the world.
Anything Chicago offers Amazon is nothing more than a drop or two of cologne on a pig. It can't hide the stench of dysfunctional schools, looming financial disaster, political corruption, crime, inbred cronyism, nepotism, governmental inefficiency at all levels, and on and on. Most of this also applies to the state as well with its worst-in-the-nation financial situation and unfriendly business climate.
Hell, you could dump the whole bottle of cologne on the pig and it wouldn't make a difference. The pig will still go out and wallow in a mudhole. A pig in a mudhole is exactly what Chicago and Illinois have become thanks to Madigan and his army of suck-up sleaze-bag politicians.
NOW if all those crazy lawmakers actually had sense they would build something like HIGH end housing in those location with a casino AnD super mall. Instead they build a a little college a stadium which can't be filled up
Could you imagine free parking in downtown?
How about officers on every corner of the loop with cameras.
Casino boats at Navy Pier.
Lowering the prices of catering and food,soda, and liquor at MCCORMICK place.
ARMED civilian security on those special CTA routes ie;redline
FIXING the expressway so traffic moves.
OR they can give primo land for free...
One of the requirements was that the location had to be 45 min from the airport. For ohare, that would be park ridge or des plaines. The post office is an hour and a half.
It's a bidding war. The higher your crime rate and the higher the welfare rate, the higher the bids have got to be. Doesn't make any sense at all. Amazon ought to build in Hays, Kansas. Build it and they will come Amazon. (No, I'm not from Kansas.)
J.J.
The OUT strategy is the only method to escape the graft, corruption and excessive taxes of Chicago and Cook County; in order, vote them out, move out or die out!
You don't land a $100,000 job with a CPS 8th-grade reading and 6th-grade mathematics proficiency, unless of course, that job is with City of Chicago or Cook County governmental agencies. Amazon isn't going to hire these CPS graduates, it frankly can't operationally-speaking, no matter how much "educational subsidy" thrown at Amazon, because the average non-elite CPS grad can't program and can't DO I.T. maintenance. Geez. If anything, an Amazon headquarters w/50,000 white-collar jobs would lead to significant gentrification (code: white and asian influx) to remaining reasonably-intact blue-collar neighborhoods. Let the storefront ministers and neighborhood activists deal with that unpleasant expectation.
Isn't this the political party that wants to tax the rich and their creations?
If so, why can’t small buainess get tax breaks also?
OR they can give primo land for free...
10/24/2017 10:40:00 AM
What color is the sky in your world?
10/24/2017 07:09:00 AM
Anonymous Anonymous said...
With the stock market rising so rapidly our pension investments must be making hundreds of millions, hope the investors are working with us not against us! To the people at the Pension Board no more bad investments no more given tens of millions in political investments like was Given to the Daley family! 60 million gone that's a lot of money how is the investigation into who gave away "our money" going?
Dv urban investments
https://chicago.suntimes.com/news/the-watchdogs-pension-funds-lost-millions-on-deals-with-daley-nephew-obama-pal/
Still relevant today that is our money given away this was criminal hopefully it will be investigated fully!
10/24/2017 07:12:00 AM
They lost millions of our money given to them what board snakes gave them our money? The money would of went far could of even funded CPD retired health care:
http://www.chicagobusiness.com/downloads/portfolio.pdf
Fop take them to court lets have pension board take property for money owed! Don't be scared!
Amazon is trying to leave a socialist city -- they won't come to a communist one even closer to Detroitification.
http://www.foxnews.com/us/2017/10/24/white-privilege-bolstered-by-teaching-math-university-professor-says.html
When you are checking to see what school your kid should go to..... this is what you can expect at the U of I
You don't land a $100,000 job with a CPS 8th-grade reading and 6th-grade mathematics proficiency, unless of course, that job is with City of Chicago or Cook County governmental agencies. Amazon isn't going to hire these CPS graduates, it frankly can't operationally-speaking, no matter how much "educational subsidy" thrown at Amazon, because the average non-elite CPS grad can't program and can't DO I.T. maintenance. Geez. If anything, an Amazon headquarters w/50,000 white-collar jobs would lead to significant gentrification (code: white and asian influx) to remaining reasonably-intact blue-collar neighborhoods. Let the storefront ministers and neighborhood activists deal with that unpleasant expectation.
Negative and terrible perception. I only have a GED and make over 100k in IT. Guess what, I busted my ass studying on the job because there are many jobs in IT that you cannot find classes for or they are available online only. Ever hear of network administration, ever hear of security analyst, ever hear of operational support? And Amazon has Web Services which is available online for like 15 dollars. With 5 years experience you can make 50 a hour. That is a fact. Now the tough part is cracking the ceiling to make that money. You do need strong conflict resolution skills, a thick skin and a calm demeanor. You will be challenged everyday. But the way I look at it, no offense to any first responder here, my life is not on the line. So when someone screams and yells at me, inside I am laughing. In my job, we fuck up, we can reinstall or rollback a install. And I got my start from a Indian tech guy and the WIA program. It can be done.
Pretty sure that Amazon will not put its HQ in Mogadishu on the Lake.
See Rauner has a new TV add, all the boadering states thanking Madigan for sending businesses and employees to their states by raising Illinois taxes.
Globalist amazon will soon collapse as people reject globalism.
Hope Amazon announces the winning city on live tv. It's be like Daley coming in last place in his quest for the Olympics.
Can't wait to see Rahm with egg all over his face!
You, Leonard, are the exception to the rule, and not an example of the average CPS drop-out. Congrats to you, but issue nonetheless is inescapable fact.
Can you imagine the F'ing traffic caused around any downtown location?!?
Anonymous said..
If the City doesn't build something on the old Michael Reese property soon, If I remember correctly, the City owes the owner a lot of money. Like Millions.
I remember that as well. I lived across the street from that site and learned that
at the time Shortshanks purchased the property for 85 million. If no Olympic site was built, it was to go up to 90 million. After Shanks lost the bid, he threw his tantrum and had 25 of the 26 buildings demolished, many of them could've been re-purposed. The site sits empty except one structure being guarded by security.
Quick side note... Prickdinkle was the alderfool of that ward at the time and promised the historic main Reese building would be saved. After the bid loss, it all of a sudden had too much damage from a leaky roof and had to be torn down as well.
No offense SCC but I think you are on the wrong side of this. 50,000 white collar jobs is, roughly, about $8 billion in tax revenues for Illinois and Chicago over a 20 year period, and that's not including any increase in property taxes from gentrifying neighborhoods.
Let's say the subsidies have been vastly understated and are really $4 billion. That's still $4 billion of extra money into governments with otherwise parlous finances.
These same politicians giving it all away for free are the same people always bitching how the rich and corporate America are always getting breaks and exploiting loopholes. Bullshit
My question is how the hell can Chicago offer land in schaumburg one of the sites is for the old Motorola site where Zurich and Motorola currently have buildings. Building it in schaumburg wouldn't entitle Chicago to jack. Heck if amazon was smart they would build there as its prime location and 14 minutes right to the ohare airport for them which is what they want. isnt going to get any better then that location in Chicago let alone having to try and make it to midway taking 55.
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