* React is starting to come in regarding the loss of the OfficeMax headquarters to Florida. From state Sen. Bill Brady…
State Senator Bill Brady (R-Bloomington) is calling on Governor Pat Quinn to bring the House back to Springfield to pass an incentive package to keep multinational agricultural product processor Archer Daniels Midland (ADM) in Illinois after it was announced on December 10 that the newly merged office Max and Office Depot had chosen Boca Raton Florida as their new corporate headquarters instead of Downers Grove.
“We have to do what we can to keep job creators in the state of Illinois,” said Brady. “The Senate did its job and passed incentives for Office Depot Inc. and ADM. The House adjourned without taking up either measure and now we’ve lost out on the jobs that would be created by having a major corporate headquarters in our state. But this goes far beyond one lost opportunity. The leisurely, passive attitude of the Governor and House sends a powerful message to all businesses in Illinois, that they don’t really feel any urgency to protect jobs and assist employers. Instead, we have to actively foster a business climate that creates jobs for the people of this state.”
The newly formed Office Depot Inc. had sought an EDGE tax credit from Illinois as an incentive to locate their headquarters in Illinois during the spring legislative session. While the incentive passed in the Senate in early December during a one day special session, the house adjourned without taking up that measure. After the tax incentive failed to pass in the Illinois House, Office Depot chose to relocate its headquarters to Boca Raton.
The House also failed to take up a similar measure aimed at keeping ADM in Decatur. ADM announced earlier this year that it was considering relocating its global headquarters after more than 40 years in Decatur IL. While Chicago was among the cities under consideration, it was also revealed that major cities in other states were also trying to woo the agricultural giant.
The incentive package for ADM requires the company to maintain 200 full-time employees at its new corporate headquarters, relocate 100 employees into Decatur from somewhere outside of Illinois within five years and further stipulates that ADM must hire at least 100 new employees every year for five years at the Decatur location to continue to qualify for the EDGE credit. Additionally, the bill requires ADM to establish an internal committee for five years that promotes jobs in Decatur.
“I urge the Governor Quinn to bring the House back to Springfield so we can keep jobs in Illinois,” said Brady. “The House needs to act soon if we want to ensure that ADM does not to follow Office Depot’s lead and leave Illinois. But, more importantly, the Governor and the House Speaker need to wake up to the need to keep jobs and employers in Illinois.”
* House Republican Leader Jim Durkin…
“I am disappointed Office Max has chosen to leave Illinois, and I am concerned about the families who will be impacted by the move and the jobs lost to the region. While there is no guarantee the Office Max decision would have been different had we passed legislation giving them enhanced EDGE tax credits last week, their departure is further proof that we have more work to do in terms of improving our overall business climate and need to revisit criteria for the EDGE program.”
* Rep. Darlene Senger…
State Rep. Darlene Senger (R-Naperville) released the following statement today after Office Depot announced they have chosen Boca Raton, Florida over Illinois to locate their new global headquarters.
This decision comes after the Illinois House Speaker, Michael Madigan, refused to allow debate on legislation that would have allowed Illinois to compete with other states, like Florida, to retain Office Depot and their global headquarters.
“Illinois continues to export jobs to other states and the result for Illinois families is higher taxes, higher unemployment and less opportunity,” Rep. Senger said. “This month, we had an excellent opportunity to improve Illinois’ job climate and keep over 2,000 jobs in Illinois, but Democrat leaders took no action and as a result we will continue to lead the Midwest in unemployment and over 2,000 Illinois jobs will be leaving for Florida.”
I’ll post other statements as I get them.
*** UPDATE *** From the Illinois GOP…
The Illinois Democrats’ Jobs Disaster: Office Depot Edition
CHICAGO – In the latest proof of the Democrats’ toxic business climate in Illinois, Office Depot announced today that it will locate its headquarters in Florida, instead of the current OfficeMax headquarters in Naperville, Ill. As many as 1,600 jobs could be in the balance as a result.
“Pat Quinn and the Democrats’ failure on jobs in Illinois is affecting real people and real families,” said Illinois Republican Party Chairman Jack Dorgan. “The Democrats promised to make jobs a priority, but companies keep leaving, the unemployment rate is unacceptable, and too many Illinoisans still can’t find work.”
Today’s announcement by Office Depot is the latest in a line of business leaving or moving jobs out of Illinois for better-run states, including Kenall Manufacturing and Jimmy John’s. Illinois’ business climate has also meant rumors and uncertainty for workers at businesses including StateFarm, Caterpillar, and Archer Daniels Midland, among others. And that trend is likely to continue, with states like Wisconsin, Indiana, and Texas activelytrying to recruit businesses to relocate headquarters and employees.
Illinois’s state unemployment rate is 8.9 percent, the fourth worst of any state, and well above the national rate of 7.0 percent.
In 2013, Illinois ranked 3rd worst on CEO Magazine’s list of “Best and Worst States for Business,” and 13th worst on Forbes Magazine’s list of “Best States for Business.” Both rankings are worse than they were in 2010, when Gov. Pat Quinn took office.
In 2010, Gov. Quinn and the Democrat-controlled General Assembly forced through a 46 percent increase in the corporate income tax rate, making it the fourth highest in the country, along with a 67 percent income tax hike.
“The Democrats have done severe, lasting damage our state’s business climate,” Dorgan said, “and Illinois is desperate for a change in leadership.”
- too obvious - Tuesday, Dec 10, 13 @ 12:42 pm:
blah blah blah.
What part of it’s Boca don’t they understand.
Last we heard, Brady keeps his Porsche in Florida too for same reason I assume.
- Knome Sane - Tuesday, Dec 10, 13 @ 12:48 pm:
“In other news, the sun rose in this east this morning.”
- downstate commissioner - Tuesday, Dec 10, 13 @ 12:52 pm:
Doesn’t affect me either way, on either side, but giving big corporations a tax break in the same session as cutting state retirement benefits would have seemed to be just a tad unfair…
- Will - Tuesday, Dec 10, 13 @ 12:59 pm:
Haven’t they received special tax breaks in the past? Is there anything IL could try to collect on? Quinn should be looking at punitive measures.
- 39th Ward - Tuesday, Dec 10, 13 @ 1:00 pm:
This was the result of a merger between Ofice Max (based in Naperville) and Office Depot (based in Boca Raton). The name of the new merged company is Office Depot. You don’t have to be a rocket scientist to figure out which executive team would come out of top when it came time to determine who would have to move to the other team’s HQ. Office Max never had a chance. Neither did Naperville.
- Montrose - Tuesday, Dec 10, 13 @ 1:14 pm:
Pro tip - Encourage corporations to make HQ location decisions that involve pitting Illinois against Florida in the summer.
- Belle - Tuesday, Dec 10, 13 @ 1:16 pm:
Maybe they just wanted to be in sunny FL? I wish I was there today. It could be that simple.
- Liberty First - Tuesday, Dec 10, 13 @ 1:23 pm:
You won’t build a state on cronyism.
- wordslinger - Tuesday, Dec 10, 13 @ 1:26 pm:
Office Depot was the big dog in the merger. nearly twice as large as Office Max. They were already in Florida. Guess who wins?
The deal with Madigan and ADM is a weird game of chicken. No matter how you slice it, the money is oogats to both of them.
I can’t believe ADM would bolt the state over $2 million, but I can’t believe the state would risk it for that cash, either.
- He Makes Ryan Look Like a Saint - Tuesday, Dec 10, 13 @ 1:33 pm:
Florida over Illinois…..NO BRAINER. Florida has no state income tax. CEO’s stand to save a boat load just on that. I look for others to join them in getting out. I can’t say I blame them either.
- Bigtwich - Tuesday, Dec 10, 13 @ 1:39 pm:
oogats?
- Soccermom - Tuesday, Dec 10, 13 @ 1:40 pm:
They’re not “moving to Florida.” Post-merger, they had two headquarters, one here and one there. They decided to stay with the Florida site — and today, I can’t say that I blame them. Brrrrr….
- 47th Ward - Tuesday, Dec 10, 13 @ 1:45 pm:
Yeah, I don’t think they were ever serious about moving to Illinois. I think they wanted to extort Florida for more dough and I hope the taxpayers there were gullible enough to give it to them.
- VTTK17A1 - Tuesday, Dec 10, 13 @ 1:51 pm:
For once we have kept the money when someone threatened to “leave for another state”.
News Flash: The “Big Dog” in the deal was Office Depot. They were NEVER going to move to Chicago no matter what they were given.
The “controversy” is pure spin by those who want to feed at the public trough.
“Look! Office Depot left! We will too if you don’t buy us off!”
How stupid do they think we are? Oh, never mind. This is Illinois…
- sal-says - Tuesday, Dec 10, 13 @ 2:00 pm:
Not convinced there was causal between no tax break & decision. Depot took control of Max; Depot already HQ’d in FL.
- Nearly Normal - Tuesday, Dec 10, 13 @ 2:23 pm:
Talked to a manager at my local Office Depot about the merger. He said that the expectation was that the corporate office would be in Boca from the get go. His concern is the fact there is an Office Max in Bloomington and an Office Depot in Normal. Scuttle is that there will be only one store going forward but timeline and location is uncertain.
- a drop in - Tuesday, Dec 10, 13 @ 2:34 pm:
He is stealing from Chef Robert Irvine…..”Government Impossible”?
- 47th Ward - Tuesday, Dec 10, 13 @ 2:38 pm:
Does Senator Oberweis have a comment about Illinois losing out to Florida in a recent relocation matter?
- wordslinger - Tuesday, Dec 10, 13 @ 2:40 pm:
It’s been said many times, but it obviously bears repeating, often.
The Illinois corporate incomes tax applies to income derived from Illinois. Headquarters location does not matter.
So the Illinois corporate income tax means oogats to Office Max, ADM, Abbott, McDonalds, CAT, Walgreens, ITW, Deere, etc.
It means a lot to your local contractor, store owner, homebuilder, independent restaurant owner, tavern owner, etc.
When it comes to the Illinois corporate income tax, its Wall Street vs. Main Street, and Main Street is taking a beating.
And the sick thing is that the big dogs who don’t pay get all the breaks, while the little guy has to pay full freight.
- Give Me A Break - Tuesday, Dec 10, 13 @ 2:40 pm:
- Liberty First - Tuesday, Dec 10, 13 @ 1:23 pm:
You won’t build a state on cronyism.
Sure you can, the GOP did it for 26 years.
- Another One Bites the Dust - Tuesday, Dec 10, 13 @ 2:40 pm:
Another faux pas by Madigan. If the House had simply called the bill and voted as the Senate did…
Another instance where Cullerton winds up looking far better than Madigan.
- Jim'e' - Tuesday, Dec 10, 13 @ 2:41 pm:
The bottom line was a game the corporates played to get more money out of government. Plus, the Florida offices were already large enough to accommodate the staff from IL. Don’t you just love the econ dev game. The political rhetoric is hilarious.
- Ruby - Tuesday, Dec 10, 13 @ 2:42 pm:
He @ 1:33pm: Florida has no state income tax. CEO’s stand to save a boat load just on that.
But then Office Depot won’t be able to keep their employees’ state income tax if Florida has no state income tax..
- wordslinger - Tuesday, Dec 10, 13 @ 2:49 pm:
Just spotted the Illinois GOP release. It’s stupid and dishonest.
I don’t know Dorgan, but I heard he’s supposed to have game. This is the same old boilerplate.
And to JJ, it’s hard to miss you when you won’t leave, cousin. You’ve been crying for years now, to anyone who will listen.
When you finally rent that U-Haul (drink ‘em if you’ve got ‘em), give me a call and I’ll help you load.
- Timmeh - Tuesday, Dec 10, 13 @ 3:18 pm:
==“The Democrats have done severe, lasting damage our state’s business climate,” Dorgan said, “and Illinois is desperate for a change in leadership.”==
Don’t be dishonest. The truth wasn’t that bad. We lost jobs because Office Depot is the stronger company in a merger, so the headquarters moved to where the stronger company is. Your response shows that you don’t care about leading Illinois to a better tomorrow; you just care about the power of the office.
- Sanity Check - Tuesday, Dec 10, 13 @ 3:22 pm:
I recall not too long ago when the GOPs crtoiicized Dems for not going full bore on a fertilizer plant that went to Iowa. Turns out the incentives would have been worth more than the jobs. Egg on Gov. Branstat’s face.
- Grandson of Man - Tuesday, Dec 10, 13 @ 3:35 pm:
“Wisconsin, Indiana, and Texas”
Let us not forget Minnesota. Minnesota is doing very well, much better than Wisconsin, with an unemployment rate at or under 5%. Minnesota raised the state income tax on the wealthy and is investing in itself with the revenue. Minnesota also has a high business ranking. Minnesota has its own health insurance exchange and has relatively low premiums. The other states are refusing to implement and expand Obamacare. Those states have millions of people without health insurance. Texas can really use some health insurance expansion. It has the largest percentage of uninsured residents of any state.
California is also doing much better, after raising the income tax on the wealthy.
- CircularFiringSquad - Tuesday, Dec 10, 13 @ 3:35 pm:
Pretty funny watching the GOPies jump around asking for giveaways.
Wondering why DarlingDarlene did not stand up and wave her little pinkies to demand a giveraway vote before the pension bill — duh
Fire, Aim, Ready!
- PoolGuy - Tuesday, Dec 10, 13 @ 3:44 pm:
CEO and Forbes magazines, which focus mostly on wealthy execs, and I’m sure taxes are high on their list.
There are better and more positive rankings out there that those 2 pubs, Mr. Dorgan. but Jack I still love ya.
- bk - Tuesday, Dec 10, 13 @ 4:18 pm:
“Doing much better after raising taxes on the rich” is what you see when you compare mid-western states! WOW! Way to be closed minded and narrow focused. My stomach hurts from laughing at you liberals! The 1 party system does not work! Period! I can only praise God that I moved away from you self appointed fairness experts. Employers are leaving for lower taxes and friendlier environments, Spin it away! Whats the real reason they are leaving? I bet you have a different theory? Emotional based thinking is SO hard to understand.
- Trudat - Tuesday, Dec 10, 13 @ 4:30 pm:
why don’t we give 1/2 the money we considered paying off ADM (this time) and distribute it to the small businesses /start ups in Decatur - via grants and low interest loans. Help the communities that get hurt when big fish move on.
- Grandson of Man - Tuesday, Dec 10, 13 @ 4:32 pm:
“My stomach hurts from laughing”
So does mine, from your aversion of facts.
California’s budget is recovering, thanks to the tax increase on the wealthy. Its economy is also improving. The same can be said of Minnesota and the U.S. The federal budget deficit is shrinking at a record rate thanks to, in part, tax increases on the wealthy.
- Timmeh - Tuesday, Dec 10, 13 @ 4:35 pm:
==Employers are leaving for lower taxes and friendlier environments, Spin it away!==
How is this for spin: Illinois currently has a flat income tax, so the rich can pay a fairly low income tax compared to many states. Corporations can threaten to leave because of high taxes and a bad business environment and be given handouts from the state. When they threaten, the Republicans can use the situation to their advantage to attack the Democrats. Republicans, who are also more likely to attack unions, want lower taxes, and give those corporations handouts, so when they threaten, even if they don’t get what they want, they boost the chances that later on, they’ll have a Republican in office who might give them what they want. So what’s so bad about Illinois’s business environment? For the big businesses with the balls, the money, and the connections, it’s pretty good.
Look at ADM. They pay 1.2% in state income taxes and no corporate property taxes. That’s it other than federal taxes; I’m sure you can guess how much they’re paying there. That’s a pretty good deal and they’re still asking for more.
- Demoralized - Tuesday, Dec 10, 13 @ 4:45 pm:
==I can only praise God that I moved away==
So can we.
- wordslinger - Tuesday, Dec 10, 13 @ 4:46 pm:
This rhetoric from the new Dorgan Illinois GOP is just dreary. Not even phoning-it-in. Like the early shift at an Eagle River strip club.
Seriously, no game at all? Belly up for corporate handouts? That’s it?
I have one word for any Republican with a brain: Universities. They are around you. They are backbone communities. They are drivers of progress. They aren’t hedgies looking to rob you.
What’s your beef, Dorgan? Can’t make the NICOR bill today?
I guess you and the Stephens family are going to pull up stakes in Rosemont because you can’t make a buck due to Illinois government and politics?
Somehow, I thought Rosemont and Leyden were kind to your crew.
Who’s driving the U-Haul (drink)? Skip and DeLeo? Or is it a big-honking Bentley? Like a pimped-out “Grapes of Wrath?” I hope you have enough gas money.
I weep when I hear Rauner, Griffin, Ty and the Civvies testify to their burden to live in a state where some of them made billions. The other victims, they just made millions. Such a cross to bear.
Sorry to hold them back.
God knows that generations of a bad-ass working class that provided for an educated work force, universities, infrastructure, rule of law and quality of life had nothing to do with their opportunities to get rich.
It was just Bruce and Ken. Like their mommas told them, they were special.
Don’t you feel a sense of pride when you go out in the marketplace and buy a “Rauner” or a “Griffin?”
They’re producers, right?
Final Jeopardy question: What do they produce?
The rest of us are peasants, especially you cops, firemen, teachers, janitors, lunch ladies, etc. What did you ever do?
Who are you to make life a living hell for Bruce and Ken, and their lackies like Dorgan and Kass, with your lives and you vulgar pensions.
I bet all you retirees are just buying moated Central Park penthouses, Hawaiian plantations and partying all the time at Versailles, just like Bruce and Ken.
You should be ashamed.
If not, vote accordingly.
- Nearly Normal - Tuesday, Dec 10, 13 @ 6:04 pm:
Well said, Wordslinger! I lift my beer to you.
Salud.
- jerry 101 - Tuesday, Dec 10, 13 @ 6:23 pm:
Liberty First: “You won’t build a state on cronyism.”
Why not? Florida’s done a pretty good job of it.
http://www.nytimes.com/2008/12/14/weekinreview/14marsh.html?_r=0
Florida - Number 1 in the country from 1998 to 2007 in number of public officials convicted of crimes (Illinois is #7).
Illinois wasn’t going to get that HQ. Office Depot’s Boca HQ is twice the size of Office Max’s HQ. This wasn’t Illinois ‘losing’ an HQ to Florida. This was a Florida company buying an underperforming Illinois company, and closing a redundant branch office.
- DuPage - Tuesday, Dec 10, 13 @ 8:09 pm:
@Timmeh, how does ADM get out of paying property tax?
- wordslinger - Wednesday, Dec 11, 13 @ 7:56 am:
– Employers are leaving for lower taxes and friendlier environments–
Sure. Because margainal tax rate differences are the only consideration in some minds.
Make sure to tell the last billionaire to leave Manhanttan, London and Beverly Hills to turn out the lights.
- Pete - Wednesday, Dec 11, 13 @ 8:20 am:
Illinois is a centrally located state that would put the merged firm near the hub of an efficient distribution cent.
Illinois has a greater corporate talent pool with a large market of talented and educated business leaders.
Illinois doesn’t shut down during hurricane season.
But this boils down to a business decision. Where does the company make more money? Basing a business decision on anything less would be irresponsible. The fact that Illinois didn’t make the effort to at least call the bill for a house vote makes it an easy decision. As the saying goes… “A bird in the hand is better than two in the bush.”
- Pete - Wednesday, Dec 11, 13 @ 8:22 am:
@ wordslinger.
Why do you think Lebron James is in Miami?
Ask Cleveland about who turns off the lights?
- PoolGuy - Wednesday, Dec 11, 13 @ 8:33 am:
if LeBron is only in Miami for no state income tax purposes, and not to win buku titles with the Heat, I’m not sure how your comparison fits.
- Pete - Wednesday, Dec 11, 13 @ 2:08 pm:
@PooGuy,
When the three started looking where they would go, they could have picked any team in the country. Miami wasn’t selected for the market, because New York, Chicago, and LA are all bigger. The 3 could have hit the West Coast and turned the Clippers into superstars, or made a deal in the house that Jordan built, or possibly set up shop in th Big Apple…
Miami’s income tax factors into the decision of all Pro athletes.
- wordslinger - Wednesday, Dec 11, 13 @ 2:27 pm:
Pete, you’re just making things up.
There have been countless articles written on Lebron’s jump to the Heat. Find one that mentions state income taxes (by the way, Wade was already in Miami on a long-term contract when they started cooking up the deal).
–Miami’s income tax factors into the decision of all Pro athletes.–
First of all, Miami doesn’t have an income tax, nor does Florida. But pro athletes pay income taxes in all state’s in which they play when on the road.
Secondly, name one pro athlete who took a Florida team deal because of income taxes — and back it up.
When the Broncos landed Peyton Manning, Elway gave Tim Tebow a choice: I can trade you to the Jets or Jaguars. You choose.
Tebow is a legend in Florida. Jacksonville offered more money.
Tebow chose New York.
And I can back that up.
http://sportsillustrated.cnn.com/longform/tebow/index.html
- Leonarden - Monday, Dec 16, 13 @ 12:13 pm:
good post thx 445 dolidze