* Various news sources are reporting that Archer Daniels Midland has decided to open its new world headquarters office in Chicago without any state tax incentives.
ADM had asked for up to $30 million in tax breaks over 20 years. Gov. Pat Quinn said he opposed any such proposal until after pension reform was passed. The Senate overwhelming approved the incentive as part of a broader package earlier this month after passing a pension reform bill, but House Speaker Madigan refused to call it for a vote, later blasting unnamed corporations for trying to get a free ride on the taxpayers’ dime.
* In reality, everybody probably shoulda seen this one coming back in October when this report emerged…
D. Cameron Findlay, ADM’s recently hired senior vice president and general counsel, paid $2.619 million for a 21st-floor condominium unit in a newly built Lincoln Park tower in Chicago.
Findlay closed on the unit in early September, before the company went public with its announcement that it’s planning to move its headquarters. It has said Chicago is its preferred city, although it’s seeking $24 million in tax incentives and is entertaining offers from other states.
* Crain’s…
Sources said the new deal reportedly was struck after a series of conversations between Gov. Pat Quinn and ADM CEO Patricia Woertz.
If true, that’s yet another win for Quinn. He stood against the incentives while most everybody else jumped on board.
* In contrast, Bruce Rauner said Quinn was “avoiding responsibility” and “playing games” with ADM when Quinn tied the passage of pension reform to more corporate subsidies.
Sen. Kirk Dillard’s running mate Jil Tracy claimed Quinn had displayed a “terrible lack of leadership to link these two issues,” adding…
“We need to assess and analyze, and certainly not hinder or antagonize them in the public as the governor’s done,” said state Rep. Jil Tracy (R-Quincy)
* Both Dillard and Sen. Bill Brady voted for the ADM bill in the Senate this month. Brady demanded a special session to take up the issue after the House refused to act and Office Depot did what everybody expected and announced its new headquarters would be in Florida…
Hours after the Office Depot decision was aired, state Sen. Bill Brady, R-Bloomington, called on Gov. Pat Quinn to call the House back to town for a special session regarding ADM’s tax breaks.
“We have to do what we can to keep job creators in the state of Illinois,” said Brady, who is running for governor. “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.”
* The company won’t be creating new jobs, but, then again, it’s not getting any state money…
According to multiple sources with first-hand knowledge, ADM has reached an agreement with the state under which the headquarters and 60 to 75 top jobs will be moving from Decatur, where the agricultural giant now is based, to an as-yet-unidentified location in downtown Chicago.
That’s less than the 100 headquarters jobs the firm originally had mentioned when it announced in September that it was in search of a location with better international air connections and a wider talent pool than are available in Decatur.
Also not included are the 100 jobs at a technology center that the company said it would open in conjunction with its new headquarters. The fate of those positions is being left ambiguous, I’m told, with the company perhaps feeling that it has a better chance to get incentives for newly created positions rather than to just move jobs from one corner of the state to another.
* Mayor Rahm Emanuel is jumping on board today with a press release…
Mayor Emanuel today welcomed the announcement that Archer Daniels Midland has chosen to move its global headquarters to the city of Chicago.
“I am pleased to welcome ADM to Chicago and I look forward to the company’s continued success out of their new home,” said Mayor Emanuel. “As I said throughout this process, our goal was to put the city’s best foot forward and highlight Chicago’s strengths: an outstanding workforce, globally renowned transportation and infrastructure, and excellent quality of life. These strengths will help ADM as it continues its growth in the future just as they continue to drive our economy forward every day.”
The announcement comes a day after IBM released its annual “World’s Most Competitive Cities” report, which ranks 100 cities around the world in several key categories. In the category of International Headquarters, Chicago ranked 7th globally and second in North America, and the ADM headquarters move will only serve to solidify this ranking. Additionally, attracting corporate headquarters to the city is a key tenet of the Plan for Economic Growth and Jobs, the city’s economic development plan that is implemented by World Business Chicago.
Throughout the several month process, Mayor Emanuel marshaled all of the city’s economic development entities toward the goal of attracting ADM, including World Business Chicago, and the city’s Department of Housing and Economic Development (DHED). He was also directly involved in the recruiting process on a number of occasions.
Emanuel’s refusal to publicly support ADM’s bid for state incentives and/or add in his own city’s money was blamed in part on Speaker Madigan’s reluctance to move the ADM bill. So, I guess it’s a sorta win for Emanuel, too.
Mainly, though, Quinn winds up looking pretty good here and at least three of his Republican opponents don’t.
* Also too, maybe ADM’s decision will finally get people to realize that Illinois can compete and that Chicago is our jewel in the crown for attracting corporate headquarters and more jobs. The Republican candidates for governor (and lots of others, myself included at times) apparently believed that Illinois couldn’t pull this off without a government subsidy.
Constantly running down your own state may play well in a primary, but as it turns out, doing so can be a dangerous little political game.
- Downstate - Wednesday, Dec 18, 13 @ 8:23 am:
Kudos to Chicago and the state for having the courage to say “no”. This type of approach may encourage others to follow suit….hopefully.
It was a high stakes game of “chicken” and ironically, the food processor flinched.
Good for Illinois.
- Yellow Dog Democrat - Wednesday, Dec 18, 13 @ 8:30 am:
Ditto what Rich said.
- Jim'e' - Wednesday, Dec 18, 13 @ 8:38 am:
Cudos to all and especially to ADM; did anybody really think location wasn’t the driving point.
- PoolGuy - Wednesday, Dec 18, 13 @ 8:38 am:
maybe this sets a precendent. maybe not.
still hope Boeing picks here one way or another.
- Juniper - Wednesday, Dec 18, 13 @ 8:44 am:
Wasn’t part of the incentive negotiation a requirement that a certain number jobs be kept in Decatur? With ADM choosing Chicago without the incentive, couldn’t this be very bad news for Decatur?
- Yellow Dog Democrat - Wednesday, Dec 18, 13 @ 8:46 am:
Not only is Illinois and Chicago in particular a great place to do business, but the business groups spewing rhetoric and backing candidates claiming otherwise are shooting themselves in the wallet.
Why would the Illinois Manufacturers Association encourage its members to leave Illinois?
If you are in the business of selling other businesses goods and services, which is 80 percent of commerce, why would you fund a campaign to convince those potential customers to locate elsewhere?
Doug Whitley gets it, but a lot of other leaders from the business community still haven’t figured it out.
- wordslinger - Wednesday, Dec 18, 13 @ 8:48 am:
This was such a weird story from the get-go.
Did anyone really believe that $1.5 million in annual tax incentives was going to be a deal-breaker for the Fortune 27 corporation, with $81 billion in revenues and $2 billion in profits annually?
They probably spend $1.5 million a year in exec car leases, golf club fees, catering, and conference travel.
The CEO makes $18 million a year, for crying out loud. Where she wants to live and work is the deciding factor, not chump-change tax incentives.
I thought it was bizarre that ADM even went to the GA to beg for such small potatoes. Have some pride, people. Don’t you look silly now.
Rauner, Dillard and Brady didn’t play their hands well at the poker table with taxpayer money. They got rattled. Not CEO-like.
This was an obvious bluff from the beginning. ADM was always going to Chicago and they’ll hire the people they need to to run the show, incentives or not. Nobody’s hiring out of the goodness of their heart.
Still, the money was so small, I was surprised when MJM called the bluff. I’m wondering if he got the inside dope on the space ADM is leasing.
From what I understand, MJM has friends in Chicago commercial real estate circles.
- In the Middle - Wednesday, Dec 18, 13 @ 9:24 am:
In the past few weeks ADM has taken a dozen private flights from Decatur to… not Dallas, not Atlanta, not Minneapolis, but Chicago.
It hasn’t been much a secret that Chicago is where ADM wants to be.
- Anonymous - Wednesday, Dec 18, 13 @ 9:31 am:
Wonder how much money we’ve given away in tax breaks to companies who would’ve stayed anyway, like ADM, but we got shaken down?
- hisgirlfriday - Wednesday, Dec 18, 13 @ 9:32 am:
The way ADM botched this state incentives shakedown attempt is reminding me of Mark Whitacre in “The Informant!”
- Tom Joad - Wednesday, Dec 18, 13 @ 9:35 am:
Great news. Now we should review all the past incentives and see if the agreed jobs created in exchange are being lived up to.
Funny how “it was obvious” what ADM would do now that its over.
- A guy... - Wednesday, Dec 18, 13 @ 9:46 am:
Daniel Burnham wins. Carl Sandburg wins. City of Big Shoulders, Hog Butcher to the world wins. Why would a company like ADM want to be from anywhere else? Welcome home.
- Grandson of Man - Wednesday, Dec 18, 13 @ 10:16 am:
“Chicago is our jewel in the crown”
That has a very nice ring to it, considering all the bad press Chicago has had lately. I believe Illinois should sell its strengths, which are the opposite of many red states that boast of low or no income taxes. Those states favor corporations over the wages and benefits of workers. Florida, for example, recently passed a law allowing the state to override local governments’ paid sick leave ordinances. Florida is also trying to harm the implementation of the ACA, and expansion of health insurance, by stripping its health insurance regulator’s office of the power to negotiate for lower prices.
Texas, the supposedly great state of job creation, is also blocking Medicaid expansion and has a million or more people without health insurance.
We have a more socially tolerant state, a higher-paid workforce, no right to work, health insurance expansion, great schools, etc. These to me are assets that we can sell and counter the states who offer only “business-friendly” incentives.
- Anon - Wednesday, Dec 18, 13 @ 10:18 am:
I predict no Republicans will give Quinn an ounce of credit here. Nor will the GOP critics admit they would’ve given away $30 million from the Treasury for nada.
- Rahm'sMiddleFinger - Wednesday, Dec 18, 13 @ 10:23 am:
“Doug Whitley gets it, but a lot of other leaders from the business community still haven’t figured it out.”
YDD, couldn’t disagree more. The Chamber has been leading the Illinois bashers for years. They’ve succeeded at creating a business friendly approach in Springfield, but at what price?
- walkinfool - Wednesday, Dec 18, 13 @ 10:25 am:
Any relocation manager who doesn’t ask for tax incentives in this environment, as part of his due diligence, will be looking for a new job. They become a (very small) part of the relative costs of doing business.
To think that tax incentives alone actually sway decisions for the biggest of companies, is foolish.
They can be more valuable to some small and medium-sized companies, but the legislators seem to have forgotten those job creators.
ADM made the right decision, for the right reasons.
Madigan did too.
- walkinfool - Wednesday, Dec 18, 13 @ 11:22 am:
===”The Chamber has been leading the Illinois bashers for years”===
Agreed.
They also favor the giant over the smaller businesses, which I find disgraceful for a pro-business advocacy group.
But Whitley has said a few nice things in the past year. Maybe he’s finally coming to realize that encouraging his members to consider moving out of state isn’t the greatest strategy.
- 3rd Generation Chicago Native - Wednesday, Dec 18, 13 @ 11:29 am:
Wonder what it is going to cost them to move all the executives up here?
I feel bad for US Foods right outside of Chicago in a two tower complex, that’s a lot of jobs that will be lost with the Sysco merger. Sysco is based in Texas.
Has anyone been to a Dominick’s lately? There is not too much left since everything went 50% off, yet I got a regular full size sale ad in my paper today? Really?
- flea - Wednesday, Dec 18, 13 @ 11:32 am:
ADM was going to move to Chicago regardless of the $. I cannot see how Quinn should get any credit in this scenario…just another bit of his grandstanding.
- Roadiepig - Wednesday, Dec 18, 13 @ 11:33 am:
You can ignore the fact that ADM was just “doing what was best for our shareholders” ( as was stated a few weeks back), but their people in charge at corporate HAD to realize how pathetic yet would have looked if they demanded breaks to move where they obviously wanted to move at the same time the GA took earned and constitutionally guaranteed pension benefits from its retirees. And for such chump change to such a major company to boot. Guess they figured they covered their butts with the shareholders and it was time to do what they planned on doing from the start. And for those new jobs included in the incentive package that are not going to be filled? If they need employees to do jobs at Decatur they will be hired anyway. The food products manufacturing will continue in central Illinois because it is centrally located in the heart of growing country. Now if the folks here in Decatur can somehow woo Boeing into locating their new factory here…
- Tom Joad - Wednesday, Dec 18, 13 @ 11:39 am:
Whitley knows how to cut jobs but not create them.
He thought he could run for Governor after that performance?
- MrJM - Wednesday, Dec 18, 13 @ 12:43 pm:
Once again, good news for Illinois that’s bad news for Baron Carhartt.
But I’m sure that if he’s elected, Rauner’s interests and those of our state will somehow magically converge.
– MrJM
- Liandro - Wednesday, Dec 18, 13 @ 1:20 pm:
Good. I’m convinced that near-bribing companies isn’t the best long-term solutions to growing Illinois’ business community. It’s nice to see a big one stay without hosing taxpayers and small business.
- Arthur Andersen - Wednesday, Dec 18, 13 @ 1:43 pm:
Since the $18 million CEO never flies commercial in the first place, the airport access wasn’t too relevant to her. It’s more about where she wants to live, not board the Falcon.
They definitely spend more than $1.5 million a year in C-suite travel and perks.
I’m with word. Strange deal, good result.
- Yellow Dog Democrat - Wednesday, Dec 18, 13 @ 1:55 pm:
I will stand by my defense of Doug Whitley, and I think the record will back me up.
He has taken heat from his peers and I imagine some of his peers to from shifting away from the incessant union bashing, government bashing, Democrat bashing shakedown game.
Was it enlightened self-interest?
Was it the realization that you need union support, government involvement, Democratic leadership to get the really big things done?
I dunno. Maybe Rich can call him and ask him what his philosophy is.
But Whitley is on-record that we need to take a more comprehensive approach to building a stronger climate for Illinois employers, looking at the overall tax policy rather than a one-off crisis approach, strengthening the skills of our workforce, and other big picture stuff where workers and employers, Democrats and Republicans ought to find some common ground.
Is he perfect? Nope. Let ye among you who is cast the first stone.
- DuPage Bard - Wednesday, Dec 18, 13 @ 2:58 pm:
Great that ADM is staying in Illinois.
Office Depot is leaving.
So out of the final session three bills were passed for incentives and none got through the House side.
Waiting to see what Univar does?
How many more companies will be looking for these breaks come January if Univar chooses Illinois without incentives?
May finally close the spigot.
- Endangered Moderate Species - Wednesday, Dec 18, 13 @ 4:07 pm:
===”The Chamber has been leading the Illinois bashers for years”===
A company looking to locate in Illinois a few years ago had a whole list of concerns regarding relocating a facility here. When asked where they’d come up with their long list of concerns (mostly false), they provided a print-out from he IL Chamber of Commerce web site.
The company did locate a facility in Illinois over Kansas and Texas. The IL Chamber of Commerce nearly blew the deal and they ended up costing the State extra dollars because of the need to overcome the negative perception they falsely planted.
- wordslinger - Wednesday, Dec 18, 13 @ 4:28 pm:
–A company looking to locate in Illinois a few years ago had a whole list of concerns regarding relocating a facility here. When asked where they’d come up with their long list of concerns (mostly false), they provided a print-out from he IL Chamber of Commerce web site.–
Unbelievable. What a bunch of malignant hacks.
The Big Dogs sure do well here. Who’s the voice of small business — the ones who do most of the hiring and pay the taxes?
- 1776 - Wednesday, Dec 18, 13 @ 5:05 pm:
The IMA and IRMA are the groups that “get it ” and work with all sides. The Chamber brought in Scott Walker to talk about Wisconsin.
For those in the know, the IMA played a huge role behind the scenes in the ADM deal acting in a shuttle diplomacy role between Quinn and Woertz.
- mcb - Wednesday, Dec 18, 13 @ 5:10 pm:
3 things…
1-Why in all the coverage does everyone forget to mention that ADM is the largest company headquartered in Illinois. They just say big, or large, or growing.
2-Bad deal for Decatur. 600 jobs, millions for the school district. EDGE credits could have actually been used to help the city with the highest unemployment rate create and retain jobs. How is that a bad use for incentives?
3-THe idea that the breaks didn’t matter to ADM because they were too small. Anyone who believes that has no understanding why ADM is the giant they are. Billions are being spent on Carbon Sequestration just to get rid of CO2. ADM sells CO2 emissions. They make money where no one else looks.
- Arthur Andersen - Wednesday, Dec 18, 13 @ 7:40 pm:
word, as others note, the IMA and IRMA are the ggod guys in these battles. The Chamber is becoming irrelevant.
The IT center discussed previously is still up in the air-that could go to Decatur.
mcb, true that ADM might move the couch and look for change while the rest of us just look under the cushoins, but they are also politically savvy, having been burnt once or twice-they aren’t going to just hoover up public dough without considering the potential for blowback.
Pushing back from relocation dough right after the teachers’ pensions were cut is a good example.
- Ruby - Wednesday, Dec 18, 13 @ 7:57 pm:
Quinn is showing strength in the art of negotiation. While Brady, Dillard and Rauner are displaying weakness in that area.
- Just The Way It Is One - Wednesday, Dec 18, 13 @ 7:57 pm:
Re. ADM’s Decision: it’s about time! You (and we Local Yocals) all knew the Land of Lincoln and the City of Broad Shoulders was the best/right choice all ALONG, so, in that sense, all of the melodrama was really uncalled for. But, we’re all glad you’re stickin’ around in the Neighborhood.
Also, hats off to Gov. Pat Quinn. Yet another key victory for the World’s “Luckiest Politician.” And all done withOUT any tax break this time.
To borrow one of Darth Vader’s more notable quotes from the Star Wars flicks, “Impressive. MOST impressive…but you’re not a Jedi YET…!”
- Nearly Normal - Wednesday, Dec 18, 13 @ 8:22 pm:
It’s official–
ADM to Establish Global Headquarters in Chicago
DECATUR, Ill., Dec. 18, 2013
–
Archer Daniels Midland Company (NYSE: ADM)announced today that it has selected Chicago as the location for its global headquarters and customer center.
“While we considered other global hubs, Chicago emerged as the best location to provide efficient
access to global markets while maintaining our close connections with U.S. farmers, customers
and operations,” said ADM Chairman and CEO Patricia Woertz.
“Chicago also provides an environment where we can attract and retain employees with diverse
skills, and where their family members can find ample career opportunities.
“In keeping with our intention to establish our global center in a cost-effective manner, we expect to locate a small corporate team of about 50 to 75 employees in the new center,” Woertz commented.
In addition, Woertz noted that the company will now evaluate alternative sites for its new Information Technology and support center, where it expects to locate about 100 new IT jobs. The company said it will continue to consider potential locations for the IT center in several states and expects to make a decision by mid-year 2014.
Woertz noted that one of the options the company considered was a comprehensive plan that would
have established both a larger global headquarters and the information technology center in one location and included state government support and multiyear commitments to stakeholders.
However, that plan could not be realized within ADM’s timeframe.
“We decided to move forward in the way that
best meets our organizational objectives,” Woertz said.
Woertz noted that ADM will continue to have a significant presence in Decatur, which will be
designated the company’s North American headquarters, and that the company does not
plan any layoffs in connection
with the move to a new global center.
“We appreciate the interest and support expressed by many civic and governmental leaders as we
have considered a variety of options for our new global center,” Woertz said.
“We look forward to finalizing the selection of a site in Chicago soon, and to accelerating the selection of a suitable location for our IT center.”
This was a cut and paste from the press release on the ADM website. It was a PDF so I apologize for format errors.
- Ruby - Wednesday, Dec 18, 13 @ 9:19 pm:
“The Senate overwhelming approved the incentive as part of a broader package earlier this month”
Does anyone know the number of the bill passed in the IL Senate giving EDGE tax credits to ADM?
- Yellow Dog Democrat - Wednesday, Dec 18, 13 @ 9:28 pm:
IRMA and IMA?
LOL
They issued a news release earlier in the year referring to raising the minimum wage as a “job killing,” despite all the empirical evidence to the contrary.
They imply that the majority of minimum wage employees are teenagers, when independent national research by Pew finds half of all minimum wage workers are age 24 and up and in Illinois, only 20% of minimum wage workers are teenagers.
They point out that Illinois minimum wage of $8.25 is fourth highest in the nation, and $1 higher than neighboring Missouri. But fail to mention that three other states also have the same minimum wage as ours and because Missourians tied their minimum wage to the cost of living, it has already gone up and will continue to rise.
It is the same old story line. You would think some sensible retailers would stand up and say “Enough is enough. We are proud to be an American company, and we believe our employees should have a shot at the American dream of owning a home, raising a family, sending their kids to college and retiring with dignity.”
- mcb - Wednesday, Dec 18, 13 @ 11:10 pm:
Ruby-
HB2536
- wordslinger - Wednesday, Dec 18, 13 @ 11:58 pm:
–But Whitley is on-record that we need to take a more comprehensive approach to building a stronger climate for Illinois employers, looking at the overall tax policy rather than a one-off crisis approach,–
Say what? Illinois corporations pay $2.5 billion in income taxes. about 7 percent of GRF revenues.
Of course, that’s small business. Not the Civvie coporations, who pay oogats.
Still, corporations should pay less? Who picks up the slack?