Tax Base Still Imploding
Since downtown is more a ghost town lately, with Groot's policies still driving out high-end tax generating businesses three months after she left, one has to wonder what BJ might do to top her reign of error.
Drive out the smaller tax generators it seems:
GRANT PARK — A summer of park closures, rising rents and competition from unlicensed vendors has some Grant Park concessionaires at their breaking point as they allege “subpar management” from the Chicago Park District torpedoes their businesses.
Bill Prahofer has had concessionaire contracts with the Park District since 2013. Over 11 seasons, Prahofer has gone from operating two restaurants in Grant Park and one at Osterman Beach to just one after he couldn’t afford rent on three places after COVID.
Prahofer’s last standing restaurant is Pie Life, which sells pizza, gelato, pie, beer and wine on the north end of Buckingham Fountain. He pays steep rent for the prime spot: $62,000 for the 2023 season, which lasts roughly Memorial Day weekend through Labor Day weekend. When Pie Life opened, the rent was about $50,000, Prahofer said.
But it’s not just rising rent that’s ailing Prahofer. In recent years, he’s increasingly had to compete against unlicensed vendors in Grant Park who can sell cheaper ice cream, water and other goods with lax enforcement from parks officials. Special events like NASCAR and Lollapalooza that shut down parts of Grant Park and nearby roads means fewer customers and less time to operate, Prahofer said.
This owner says he's losing $100,000 year-over-year from previous summers (meaning if he made $400K in 2021, he's down to $300K in 2022, $200K in 2023). He's not operating at a loss.....yet. But he's losing profitability. He probably won't be back next year.
He blames a majority of his problems on unlicnesed vendors, and no doubt that's a big part of it. But the other part - in typical city fashion - is over-regulation. These licensed vendors have to go through "pre approved suppliers" meaning someone connected is getting a piece of the pie.
Where have we heard this before? Oh yeah, McCormick Place. We can't remember how much they were charging for a case of soda. We had a price list up on the blog years ago, and a 24-pack of soda was something like $40 or $50. If someone has a current list, let us know. It's Goodfellas writ large - "Fuck you, pay me."
Unfortunately, the pie is shrinking. Quickly shrinking. And the upcoming September COVID lockdowns will shrink it even more.
Labels: money questions
posted by SCC at 12:05 AM
24 Comments:
Know quite a few guys who are trying to sell their businesses and get out of here. Impossible because of the high taxes, they can't even lease them.
So I have a friend who is a commercial contractor. He was showing me a filter cover which was made of high impact plastic. It was about 16 X 16in. In commercial installations it must be changed every 5 to 7 years per federal law. To remove the old cover you remove 8 screws. You install the new one with 8 screws. Takes about 15 minutes. So it only functions as a cover and nothing more. So you probably could show the feds that you complied by sending them evidence that you complied with changing the part. But the City of Chicago wants a cut and a big one! But before you can change it you must get a permit from the City and you have to get an architect to provide a drawing of the new cover. Photos of the covers are all over the internet but that’s not good enough for the City. So you provide the drawing and a cashier’s check for $3,000.00 to the Hall before you can change the filter. So the contractor does not take the hit, the commercial company you are providing the service to has to eat it. The contractor still has to run around to get the check, the drawing and then the permit. Where does this money go? It is outlandish. But if you have a business in Chicago the permit racket is a form of pay to play.
Got zero sympathy for him.
He’s only there to begin with because he’s hooked in with what can best be described as organized crime orchestrating the whole kit and caboodle.
Prahofer got fat for over a decade and now he’s crying that someone else learned the hustle.
He knew what he was getting into. He shoulda read the fine print in the Rule Book.
They always eat their own, Bill. And it’s you who’s on the menu.
The city is driving out small business. They do this with fees, permits and bidding. Generally small businesses don’t campaign donations to the Democrat Party. Big companies do and it’s a drop in the bucket for them. Take for exampled when they closed businesses for Covid. About 60% of small businesses closed for good because they lost too much money becaused of the forced closing by the city who put them out of business. A company like McDonalds was able to absorb the losses because they are so big plus they make donations. And a small company trying to bid on city contracts is a waste, you have to be connected and usually the chosen companies are the ones that have gotten all the work before.
I am sure that Downtown Office Buildings with 40-60% vacancies are going to keep paying all their property taxes too.
If Chicago where in the toilet it got flushed and it is in a death spiral down the toilet!
Everyone I speak with is taking of moving. It’s the crime stupid!
I'm so glad I moved out of that democRAT liberal shithole. The honor students ruined downtown with the wilding funnin and clownin its so nice to be living with civilized people. Everyday more businesses will leave.
Corruption is expensive. Pony up or leave.
$3.25 for a bottle of water vs $1.50 and the protection racket shake down does not provide any protection at all, You can't fix stupid. Obama's concession stand hanger-on-ers waiting for hope and change that will never com
Heart bleeds for a connected business owner. Love it when Karma bites him in ass. They want him out because someone else has offered bigger under table money for his spot. Once he is gone more under table cash will insure ridged enforcement until another connected crook offers Park District people more under table money. That is exactly how city works. Payoffs bribes and favors all involving cash transactions at every level. If you think all those Merit promotions are not bought and paid for your living in your own little fantasy world.
$12,000 to $16,000 a month for four months for a shack on the lake. Meanwhile thousand of future push cart elote stand and bottle water entrepreneurs being staged by the park district field houses for free. More people in Chicago just walk in the Walgreens and take what he want for free today why should they get ripped off by the park district vendors? Like kim foxx says nobody died its just water they have insurance take whatever you want
Ten percent for "the big guy"
"Since downtown is more a ghost town lately, with Groot's policies still driving out high-end tax generating businesses three months after she left, one has to wonder what BJ might do to top her reign of error."
Humor: I don't know, SCC. When I heard a Groot interview on "NewsRadio" (NPR-Lite!), she said downtown/loop/miracle mile was dead because of Covid.
"Peaceful protests" were never mentioned.
Might have to get re-educated! LOL
After all the businesses close, and the corporate offices abandon the Loop, the city will still have bills to pay. Lots and lots of bills to pay. Those teachers are still going to get paid. All the city employees will get paid. Where is a that money going to come from?
That money is going to come from you! Your property taxes are going to pay for it all.
Smile and fork it over. Watch while the value of your home goes to shit while your taxes skyrocket. Who will want to buy anything in the Democrat Hellhole?
51 year old Indiana man on meth gets slapped with felony dui while driving a kids Power Wheel Jeep. Indiana troopers not playin.
Terminate that chase!! --in chicago
https://nypost.com/2023/08/25/ind-man-charged-with-driving-under-the-influence-in-toy-jeep/
Create the crisis so as to not let the resulting opportunities go to waste. Lots of land to be scooped up in Chicago, Maui, Hawaii and all over the country for that matter.
Cui bono?
Soon there will be only unlicensed vendors, and that will have to be okay. Thats the way the city's current leaders wanted it...
We closed our stuff down earlier this year, sold for more than we bought and were sad to leave. However, the cost of potential nightmares, headaches, and the fostering of criminal activity for the sake of agenda / woke-ism.... easy decision. In the burbs, we've been open and lucky for now. It's strange to have nicer element out here and dare I say, folks that wave! Stay safe CPD, we miss you all.
Legalize prostitution and tax heavy.
FLEE ILLINOIS!!
Anonymous Anonymous said...
Legalize prostitution and tax heavy.
8/27/2023 01:51:00 PM
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And the Chicago Cops can become Pimps, driving the unlicensed whores off the Chicago Streets.
"Hey Candy! You want to peddle your ass on my street, you got to be one of my Chicago licensed bitches, and you better not try to hold out on me!"
Get blown in the Windy City....
Illinois and other heavy blue states will implode.
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