* I haven’t seen this number before and couldn’t find it elsewhere this morning, but Gov. Pat Quinn told the Illinois Radio Network that Ohio has offered Sears $400 million to move its headquarters out of Illinois…
“We are competing with, frankly, Ohio, which has announced they’re offering them $400 million,” Quinn said. “We aren’t offering anywhere close to that but I think Sears understands that being in Illinois is the best place to be in the Midwest.”
Gov. Kasich, however, didn’t seem to think that Sears will move as of a few days ago…
Kasich conceded that Ohio won’t land all the companies they go after. He didn’t seem too optimistic about Sears coming to the Buckeye State saying he expected Illinois to offer the company “whatever they wanted” to stay there. However, he said Ohio would never lose a company because “we’re not in the game.”
*** UPDATE *** The governor’s office says Sears testified to that number in committee recently.
[ *** End Of Update *** ]
* In other news, the Tribune looked at the District 300 lobbying efforts to make the Sears deal more palatable…
In August, two school board members — one a former pharmaceutical industry lobbyist — formed a legislative committee partly to focus on the economic development area. The next month, school board members and other supporters began attending Hoffman Estates village board meetings, dubbing the effort “Occupy Hoffman Estates.” Then in October, the district hired veteran lobbyist John O’Connell, a former Democratic state lawmaker who has represented cigarette giant Reynolds American.
Not all of it sat well with some lawmakers.
“If I were to describe the district’s leadership, or one way to describe their approach, I would say it’s reckless,” said Sen. Dan Kotowski, a Mount Prospect Democrat, who helped the parties broker an agreement. “They’ve been going after bill sponsors, trying to attack their integrity and attack their credibility.”
[Superintendent Michael Bregy] said that on a Sunday in mid-October, a lawmaker asked him if he was willing to negotiate. Bregy said he was, and Kotowski set up a meeting that became the first time Bregy sat at a table with Sears officials.
* And a revised CME tax cut proposal along with a Sears deal could be unveiled this week…
[Rep. John Bradley] said he cannot yet say how far the bill he’ll submit on Nov. 23 will go or whether it will satisfy the companies.
Too many interest groups now have too many conflicting views to predict what will come out of the legislative hopper, Mr. Bradley said. “I really don’t have a good sense yet of what it’s going to be.” All that can be said now is that the measure will deal with “tax reform,” he added.
Mr. Bradley said he’d file his bill Wednesday, the day before Thanksgiving, because that’s the last day he can give legal notice for a committee vote on legislation on Nov. 28. The Legislature is due back in Springfield on Nov. 29 for a one-day session to consider the proposed tax breaks.
* Related…
* Illinois factory execs turning less bullish: survey: For the second quarter in a row, slightly fewer executives described their businesses as thriving, the survey finds. The share slipped to 43% in the fall quarter, from 44% in the summer and a four-year high of 45% in the spring. Still, just 4% said their companies were in decline. The most optimistic executives were those in automotive, food and beverage and chemicals companies. But the number of executives who are pessimistic about the U.S. economy more than doubled this fall from since last spring, to 78%.
* Marin: Ordinary citizens’ voices go unheard
* Tribune files revised reorg plan with bankruptcy court
* Occupy Chicago Forms “Bread Line” at Thompson Center to Oppose CME Tax Breaks
* U.S. banks should “undermine” Occupy protesters: memo
- wordslinger - Monday, Nov 21, 11 @ 8:31 am:
Once the numbers start flying around, like the $400 million Quinn claims, who knows what’s real and what’s just smoke. It’s not like Ohio is flush with state revenues right about now, either.
You’d think the National Governor’s Association and the National Council on State Legislatures, would be working on a national approach to combat these raiding parties and companies playing one state off against another.
- dave - Monday, Nov 21, 11 @ 8:33 am:
$400M?!?! That is insane.
- Bill - Monday, Nov 21, 11 @ 8:54 am:
Sears should call Kasich’s Bluff and take his offer. Illinois should call Sears’ bluff and tell them no deal. The states are fighting over jobs that won’t even exist once Sears goes the way of the Trib and declares.
- just sayin' - Monday, Nov 21, 11 @ 8:58 am:
When will individuals start engaging in these shakedowns?
“Cut my state income tax to zero or I walk.” — Oprah
- OneMan - Monday, Nov 21, 11 @ 9:10 am:
Have to agree with Bill on this one. Considering how poorly Sears has done the past few years if they are willing to add the disruption of a major move to everything else they are trying to do to save the company they are not worth helping.
http://www.cnbc.com/id/45341508
- CircularFiringSquad - Monday, Nov 21, 11 @ 9:11 am:
How much can we get if IL moves to Ohio…Columbus a lot cooler than SPI, Rock and Roll hall of Fame, Football team has coolest name,etc. If they want to blow $400 million on one dying company how much will they give for a state that includes Abe. Think about
BTW Capt Fax was busy with the turkey slaughter and forgot to tell the readers that CME GRoup was able to sponsor the LPGA tournament in Orlando FL over weekend and ante up a $1.5 million purse….hopefully our tax dollars get there quick
- Oswego Willy - Monday, Nov 21, 11 @ 9:12 am:
KY BIDS 800 QUADRILLION DOLLARS FOR ALL IL COMPANIES
Frankfort, KY (UPI) - The Commonwealth of Kentucky has gotten into the bidding wars and it’s getting ugly. It is reported the “Super Agent” Drew Rosenhaus has been hired by the commonwealth to broker a deal for EVERY business based in Illinois, including all owner-operated Dunkin’ Donuts in Cook and the “Collar Counties”. The cost of this deal? The bid is reportedly 800 quadrillion dollars and Kentucky will also give up its claim to Abraham Lincoln to Illinois to sweeten this “super” deal.
“Dr. Evil has nothing on the Commonwealth of Kentucky. We are willing to go to 800 quadrillion to get what we want, less the sharks with laser beams on their heads,” say Rosenhaus, while holding up a massive check that was used in Happy Gilmore. “If businesses are ready to move, we have more big checks to give, it’s as simple as that!” When pressed on other states who have tuned down Kentucky, Rosenhaus responded, “Next question!”
Gover Pat Quinn of Illinois was perplexed at this announcement, but didn’t back off that every business in Illinois needs state money. A source close to Quinn, namely a neighbor in the Super 8 frequented by the Illinois governor overheard the Quinn on the phone stated that, “Quinn was very forceful. Quinn said if they go 800 quadrillion, I want to go 850 quadrillion, AND I want more Chick-Fil-As from Georgia too. Quinn was angry, no doubt.”
No official word has come from the Governor’s Office, the Governor’s Mansion, or the the alleged Super 8, but Fererra Pan did get an “unoffical call” from the Quinn administration about staying in Illinois, and the cost per Lemonhead to “make this right”.
Rosenhaus left the door open to Illinois keeping their businesses offering a side deal.
“525 Quadrillion to Kentucky, and the first offer goes away, plain and simple,” said Rosenhaus in an exclusive later that day to both the Don Wade and Roma Show and Michael Sneed of the Sun-Times. Illinois has 4 days to respond.
###
- too obvious - Monday, Nov 21, 11 @ 9:15 am:
Sears still exists?
- Lakeview - Monday, Nov 21, 11 @ 9:42 am:
Sears lost money in the 3Q. You don’t pay taxes if you lose money.
Sales were down, too. Let them go. Let them take their Krummy Kardashian Klothes to Ohio. Sears hasn’t been a retail leader for decades, and taxes are the least of the company’s problems.
- Colossus - Monday, Nov 21, 11 @ 9:56 am:
Apparently Sears (and Duffy) fancy themselves to be Bruce Willis:
http://www.youtube.com/watch?v=oRTxx_LWUWs
- zatoichi - Monday, Nov 21, 11 @ 9:58 am:
November 17 - headline of WSJ section B: “Sears Suffers as It Skimps on Stores”. Sub goes - Renovations are rare, modest, making outlets seem like ‘Dead Man Walking’. Later in article: sales at Sears Holdings have dropped every year since 2005, $316 in losses in first half of this year, spent nearly half of $1.2B it had in cash, and closed 171 full sized stores.
Not exactly on a rocket to success path. Looks like the tax breaks are primarily to keep breathing. How will they afford to move HQ anywhere?
- Yellow Dog Democrat - Monday, Nov 21, 11 @ 10:11 am:
If we put together a deal to move the Sears HQ back downtown, wouldn’t everyone be happier?
I know the employees currently commuting from all over God’s green earth to Hoffman Estates would be.
- Roadiepig - Monday, Nov 21, 11 @ 10:15 am:
Good one Colossus! The kicker at the end sounds a lot like the Chicago Civic Club’s philosophy on life too…
- Justice - Monday, Nov 21, 11 @ 10:21 am:
This is a non-issue. Sears cannot afford to move. They appear to me to be near chapter 11 and the tremendous disruption and huge cost for such a move would sink them for certain.
If this is a ploy to bilk Illinois out of near half a billion, they haven’t earned and don’t deserve, then best we let them fade quietly into the night.
Sears ceased being a major retail player years ago. The loss would be and will likely be to those employees in Hoffman Estates and throughout their stores across the country.
They are slowly fading into retail history. Too bad. They were once a great American institution.
- the Other Anonymous - Monday, Nov 21, 11 @ 10:31 am:
Both CME and Sears should be ashamed of themselves. This is clearly a shakedown — all the studies, all the evidence clearly points to the conclusion that companies (like Boeing) decide where they want to relocate, and then they try to shakedown the governments for the best tax breaks by claiming they are being courted by other locations.
You know, in March Cat threatened to move out of Illinois because of taxes. Not only did they stay, they’ve increased their operations here.
- walkinfool - Monday, Nov 21, 11 @ 10:33 am:
I recall this $400M number being reported out of Ohio, but cannot find the source. However, Ohio just paid $93.5 Million to American Greetings Corp, over 15 years, to keep them from moving from Ohio to Illinois, (their first alternative choice even after the tax increase.) With 1750 jobs, that’s $53.4K per job. For Sears, such a deal would be $331 Million over 15 years — so $400M might not be out of the question.
So that’s how Kasich spends the money saved from union worker wages. It makes no economic sense, but it’s great PR for any state or governor to gain a name-brand corporate HQ.
- wordslinger - Monday, Nov 21, 11 @ 10:39 am:
–You know, in March Cat threatened to move out of Illinois because of taxes.–
They did not. But fueled by economic anxiety, U-Haul hysteria and sloppy reporting, it has become to be accepted that they did.
- Cheryl44 - Monday, Nov 21, 11 @ 10:45 am:
I’m on the ‘fine, let them move’ couch.
- Louis Howe - Monday, Nov 21, 11 @ 10:50 am:
These corporate shakedowns are a classic sum zero game for American taxpayers. Providing state tax incentives to move from one state to another should be 100% taxed at the federal level with no offsetting deductions. Corporations are the biggest beneficiaries of government services and should pay for the many privileges they enjoy when selling within the world largest and most lucrative market. The biggest schmucks are the working stiffs paying through the nose with every pay stub.
- ebgill - Monday, Nov 21, 11 @ 11:00 am:
I agree with Mr. Howe, but I’ll go further. I think it should be illegal for a US city, state or community to engage in this type of negotiation at the expense of other American locales. This does no one any good in the long term, subjecting the successful community to future extortion and leaves the country littered with empty facilities that are dangerous empty and hard to re-let.
- anon - Monday, Nov 21, 11 @ 11:46 am:
Put this $850 million and growing Christmas tree into paying some bills to the companys that aren’t trying to black mail our state.
- Rudy - Monday, Nov 21, 11 @ 11:48 am:
Look Duffy, who died and made you boss? Don’t get all patriotic on us. An economic crisis like this presents an opportunity that comes around a couple times a century. We got these jobs, and their ffn golden, and we’re not just gonna let the State keep ‘em for ffn nothing!
We already got the Senate president slobberin, now go in there and close that deal. Or we’ll get somebody else who knows how to do that job. And don’t sign off on anything until we see the terms.
Love,
Shareholders’ Executive Committee
- mouthy - Monday, Nov 21, 11 @ 12:19 pm:
I vote for not giving them, (or anyone else), a dime. Oops. I don’t get a vote.
This is nuts!
- He Makes Ryan Look Like a Saint - Monday, Nov 21, 11 @ 12:50 pm:
Tell them goodbye
- QBRNST - Monday, Nov 21, 11 @ 12:58 pm:
If Ohio wants to give Sears $400 million to relocate their corporate HQ, I say let them have it! They’ll be paying for bragging rights and little else. Sears won’t be relocating 10,000 employees to Ohio anytime soon.
Consider the case of Boeing. Chicago & Illinois spent $63 million to lure them to the Loop. The ROI was quoted as being upwards of a $5 billion economic impact for the state.
Take a look around…do you see a $5 billion impact taking place/having occurred?
- Rich Miller - Monday, Nov 21, 11 @ 1:04 pm:
===You know, in March Cat threatened to move out of Illinois because of taxes.===
Wrong on both counts.
- mokenavince - Monday, Nov 21, 11 @ 1:16 pm:
Is Sears worth $400 Million I don’t think so.I would
rather see the State spend the money on small business that will not threaten to leave every 10 years. Firms like Boeing and Cat are worth helping
dead meat like Sears forget it.
- Loop Lady - Monday, Nov 21, 11 @ 1:19 pm:
I’m with Anon at 11:46…the only way to stop this craziness is for all States and Governors to ignore these corporate white collar thieves…Sears and it’s subsidiary KMart are not long for the retail world last I heard…this deal is simply money that we don’t have to spend on keeping a third rate retailer afloat while Costco and Wal Mart put them slowly out of business…please give the 400 mil to the State pension system Governor Quinn…we State employees deserve it, and you know it’s the right thing to do…of course that will never happen, we’re expendable and corporations give pols snappy press releases when they decide not to move or add a paltry number of employees at the lowest salary possible to their payrolls…BTW, I am on vacation this week so back off on the state employee on the blog during work time snark…gotta go make the pie crust now…
- soccermom - Monday, Nov 21, 11 @ 1:19 pm:
I believe in farming, not hunting. If we spent that kind of money on helping innovative new companies to grow and expand, we’d create real new jobs and rebuild our state economy. We have great ideas here in Illinois, and great entrepreneurs. I, for one, am bloody sick of seeing them take their ideas, companies — and humongous profits — out to California.
- Rich Miller - Monday, Nov 21, 11 @ 1:21 pm:
===Is Sears worth $400 Million I don’t think so===
Direct annual payroll at HQ is worth more than that. That $400M is likely over 10 or more years. So, yeah, it’s worth it. And if Sears goes under, so does its tax break.
- CircularFiringSquad - Monday, Nov 21, 11 @ 1:47 pm:
Yikes…here is a little shocker for all of you “run the govt like a biz” whack jobs
“…Mr. Jarrell, the trustee spokesman, said the latest estimate of missing funds came from a four-hour Sunday night meeting between the trustee, forensic accountants, officials at the Commodity Futures Trading Commission and officials from exchange-operator CME Group Inc.
“It was an exhaustive meting, and at the end of it the trustee made the decision it was his duty to disclose the number,” Mr. Jarrell said.
In the statement, Mr. Giddens said efforts to account for U.S. funds are continuing “around the clock,” but the recovery is complicated by assets located overseas. Recovery of such assets could take more time, he said. Mr. Jarrell said it was unclear how much money remains is located overseas.
The trustee said he is working with an investigative team consisting of lawyers and forensic accounts from Deloitte and Ernst & Young, as well as with the Department of Justice, regulators and exchange operator CME Group Inc. …”
We would be exhausted too if we spent four long hours looking for #1.2 billion and did not find a nickel.
Remember CME Group, sponsor of this weekend’s CME Group $1.5 million LPGA Golf Tournament in Orlando FL, is the exchange regulating MF Global’s erractic biz practices.
We know MF Global failed to keep company and customers account seperate.
We know the “missing” total is now $1.2 Billion
We know the CME Group must think IL is full of dopes because they are still asking for the tax break.
BTW a network talking head finally mentioned this a.m. that so far no one has been arrested.
If the Occupiers had a lick of sense they would launch a door to door “search” for the missing $1.2 billion
- Joe from Joliet - Monday, Nov 21, 11 @ 2:25 pm:
=== CME…sponsor the LPGA tournament in Orlando FL ===
State Farm has dropped sponsorship of the LPGA event in Springfield. Maybe we should ask CME to spend the $1.5 million right here in Illinois to keep the longest running event on the LPGA tour (35+ years) in business.
- wordslinger - Monday, Nov 21, 11 @ 2:40 pm:
In an item today of interest to CME, the MF Global “missing” funds just got doubled to $1.2 billion.
http://www.chicagobusiness.com/article/20111121/NEWS01/111129980/mf-global-trustee-says-1-2b-or-more-missing
- Rod - Monday, Nov 21, 11 @ 3:36 pm:
Carol Marin’s article “Ordinary citizens’ voices go unheard” was more of the same old Carol. Ms. Marin according to her bio in now about 63 years old, owns her own production company, and gets pay checks from newspapers and TV stations at the same time. Clearly she is not a representative of Chicago’s or Illinois’ poor. At first blush her article which Rich linked makes it look like she is going to take on the CME and Sears in defense of the downtrodden of our state - but not so fast! She writes: “It’s not that these businesses don’t have some legitimate issues worthy of discussion. They do.”
Ms. Marin then proceeds to discuss none of the supposedly legitimate issues. But rather she goes on about how it’s not right to give tax breaks when people are hurting, about political contributions, and then her forceful conclusion “where is the big, well-funded lobby for the homeowner whose taxes remain high even though his property values have tanked? Or for the unemployed hourly worker, or the family on a fixed income?” Wow, her years of accumulated journalistic experience led to that rhetorical flourish.
I have no doubt Ms. Marin on occasion reads Rich’s blog and I would suggest that on this blog there were posted in the last few weeks numerous retorts to both the CME’s and Sear’s “legitimate issues,” for once I would like to see her take on business interests directly. But that is tuff when you think that Lawrence Msall, head of the Civic Federation who she quotes as if he is above the fray isn’t effectively the head of a think tank for metro Chicago’s business interests. Carol has been around a long time and has played this game before, possibly too many times.
- Michelle Flaherty - Monday, Nov 21, 11 @ 4:21 pm:
Carol should ask her buddy Lawrence why he was so generous when he put the Sears giveaway together for Gov. Thompson back in the day.
- Chevy owner/Ford County - Monday, Nov 21, 11 @ 4:58 pm:
$400 million might keep Sears out of bankruptcy for a few extra months…
- Tired of them - Monday, Nov 21, 11 @ 5:15 pm:
How about we pay Ohio and they take Sears, Quinn and company with them