SUBSCRIBE to Capitol Fax      Advertise Here      Mobile Version     Exclusive Subscriber Content     Updated Posts    Contact
CapitolFax.com
To subscribe to Capitol Fax, click here.
Chicago a “dystopian nightmare” for business

Tuesday, May 20, 2014

* Matthew Yglesias

The US Chamber of Commerce Foundation put together a little pamphlet looking at municipal business regulations in 10 major American cities. They combine all the information into a somewhat arbitrary aggregate index, but some of the specific findings are striking.

For example, if you want to start a professional services business in Chicago you are basically facing a dystopian nightmare:

* If the accompanying chart doesn’t make you sick to your stomach, I don’t know what will…

32 days compared to five in heavily regulated San Francisco?

- Posted by Rich Miller        


42 Comments
  1. - RonOglesby - Tuesday, May 20, 14 @ 11:39 am:

    You can cut that down… If you know the right people.


  2. - Formerly Known As... - Tuesday, May 20, 14 @ 11:42 am:

    Crazy.

    Especially since this isn’t skewed against Chicago. It compares Chicago to other major cities, apples to apples.


  3. - Nonplussed - Tuesday, May 20, 14 @ 11:44 am:

    Heavily regulated San Francisco? If you are trying to build housing, yes. But otherwise, it is the start-up capital of the U.S.


  4. - wordslinger - Tuesday, May 20, 14 @ 11:45 am:

    Yet the startups keep coming to the dystopian nightmare.

    http://www.mediapost.com/publications/article/223518/chicago-la-colorado-digital-startups-boom-in-q1.html


  5. - Formerly Known As... - Tuesday, May 20, 14 @ 11:49 am:

    This

    == Chicago also makes this relatively expensive with $900 in permitting fees, but New York charges even more — $1,306. ==

    and this

    == Immigrants, for example, often find it especially burdensome to navigate a complicated permitting process because they don’t have as many language skills or local contacts as native born Americans. Chicago is responding to this with special programs to help immigrants deal with the system, but simplifying the system might be smarter. ==

    also stood out.


  6. - RonOglesby - Tuesday, May 20, 14 @ 11:49 am:

    @Word,
    Pro-services company vs money raised by startups (VC Backed). your showing an article with data that doesnt speak to the type of business being evaluated in the post.


  7. - VanillaMan - Tuesday, May 20, 14 @ 11:50 am:

    It takes less than a day in Houston, which is booming in population and business.

    This is Chicago.
    We don’t want your business.


  8. - RMWStanford - Tuesday, May 20, 14 @ 11:50 am:

    To some degree in Illinois when it comes to the business climate we focus to much on taxes and not enough on issues like this. There is little questions that Illinois needs to make itself more friendly to growth and start ups.


  9. - Commander Norton - Tuesday, May 20, 14 @ 11:55 am:

    Forgive me for asking an impertinent question, but are there social/economic/civil benefits to some of these regulations and costs to NOT regulating? Not all regulations are arbitrary, and the Chamber’s assumption that longer time periods and more procedures are necessarily a bad thing is simplistic.


  10. - walker - Tuesday, May 20, 14 @ 11:58 am:

    I thought “dystopian nightmare” might be a bit harsh, until I saw the chart. This is the kind of barrier Rahm has the personality to smash.


  11. - PublicServant - Tuesday, May 20, 14 @ 12:00 pm:

    Wouldn’t a balanced article ask Chicago officials for comments, or would that be too much work?


  12. - OneMan - Tuesday, May 20, 14 @ 12:01 pm:

    Well commander norton I will give an example…

    It costs $90 to form an LLC in Indiana vs $500 in Illinois vs $170 in Wisconsin.

    So if you are here and looking to start a small professional services firm (or even do something on the side) the ‘dealing with the government’ costs are much higher and might discourage some folks from doing it.


  13. - Formerly Known As... - Tuesday, May 20, 14 @ 12:01 pm:

    I had to look at a larger version of the chart in order to make sure that was a “32″ next to Chicago and not a “12″.

    This makes it appear Chicago succeeds “in spite of”, rather than “because of”, its regulatory climate compared to the city’s peers.


  14. - RonOglesby - Tuesday, May 20, 14 @ 12:02 pm:

    @commander
    Its hard to argue that we would be worse off in “Social/economic/civil benefits” if we made it faster to start a pro-services business… When compared to SanFran or NYC we are 4 or 5 x slower.

    Of course rich grabbed one piece of this. if you look at that actual article they grade for:

    Starting a business (time to start and licensing)
    Construction permits
    Registering Property
    Paying Taxes
    Contract enforcement (efficiency)

    Its actually an interesting look at the 10 cities.


  15. - RMWStanford - Tuesday, May 20, 14 @ 12:11 pm:

    Regulations are not always written with the best interest of soceity in mind, in some cases they end up written in way that protects existing businesses at the cost of new business ( ie possible compeitors)


  16. - Chicago Cynic - Tuesday, May 20, 14 @ 12:13 pm:

    I really don’t understand this. It hasn’t been my experience (I own and run a prof svcs firm in Chicago) nor has it been the experience of people I know.


  17. - Pete - Tuesday, May 20, 14 @ 12:15 pm:

    When Rahm sees this, the fee will increase from $900 to $1305.


  18. - Chicago Cynic - Tuesday, May 20, 14 @ 12:15 pm:

    Ok - Ron Oglesby - that explains it. You have to do none of those things to start a business when you’re renting. You pay your landlord and they take care of those things so this seems like a very misleading piece.


  19. - RonOglesby - Tuesday, May 20, 14 @ 12:17 pm:

    The 25 days of waiting for a license in the mail seems Sirius useless.


  20. - Will Caskey - Tuesday, May 20, 14 @ 12:19 pm:

    That really depends on what kind of professional services you’re talking about. If it’s not a category the city regulates then there are no permits required and you can set up in a day or so (expedited incorporation + FEIN application, voila).

    It should also be noted that the current mayor has drastically reduced the number of required licenses: http://www.cityofchicago.org/city/en/depts/mayor/press_room/press_releases/2012/april_2012/mayor_rahm_emanuelannounces60percentreductioninlicensetypestohel.html


  21. - A guy... - Tuesday, May 20, 14 @ 12:29 pm:

    Anyone who had tried to open business here would tell you this report is optimistic. For real entertainment, look at small manufacturing or retail, something other than professional services. Pro services is the quickest business to open. Anywhere but Chicago of course. This is absolutely real, repressive and depressing. The labor force here remains attractive. And the location. Without both those factors, we’d have almost nothing going for us. Everything takes forever.


  22. - Formerly Known As... - Tuesday, May 20, 14 @ 12:29 pm:

    == It hasn’t been my experience (I own and run a prof svcs firm in Chicago) nor has it been the experience of people I know. ==

    True question, no snark: How were you and those you know able to do things so much more quickly than most others?

    Do other people just not understand all the rules and procedures in Chicago as well as you and they do? Is the Chamber’s work mistaken somehow? Is there no problem at all in your opinion? Is it the RonOglesby factor concerning “who you know”? What would you say accounts for your experience being so much different than (apparently) most others?

    Also, best wishes for prosperity towards your business.


  23. - Chicago Cynic - Tuesday, May 20, 14 @ 12:33 pm:

    True answer - when I set up my business, I did it the normal way - no special access or favors. As Will Caskey said above, if you’re talking law, marketing, accounting, PR, other kinds of generic professional services, it’s easy as pie to do it in Chicago. I can’t speak for retail or manufacturing or worse, hospitality.


  24. - Almost the Weekend - Tuesday, May 20, 14 @ 1:00 pm:

    =Forgive me for asking an impertinent question, but are there social/economic/civil benefits to some of these regulations and costs to NOT regulating? Not all regulations are arbitrary, and the Chamber’s assumption that longer time periods and more procedures are necessarily a bad thing is simplistic.=

    These statements are very frustrating on this blog. I love Chicago and am pro-Illinois all the way, but this statement is just an assumption with no research or details to support it. San Francisco and Los Angeles are both cities in California, which receives terrible reviews from groups like the Chamber of Commerce, yet they are on the same level to Dallas, a city in Texas, a stte the Chamber of Commerce adores. I think the link below shows why it takes 32 days in Chicago.

    http://www.chicagobusiness.com/article/20130807/BLOGS02/130809833/ford-dealer-held-up-by-politics-gives-chicago-a-deadline


  25. - Almost the Weekend - Tuesday, May 20, 14 @ 1:02 pm:

    For people who dont have a subscription, here is another link from this blog last year.

    http://capitolfax.com/2013/08/08/the-chicago-way-2/


  26. - Chi - Tuesday, May 20, 14 @ 1:03 pm:

    My experience is in line with Chicago Cynic. And the chart says “professional services”. So I don’t understand how they got to 32. Again, I don’t doubt it may be more difficult to open a bar, restaurant, widget factory, etc.


  27. - horse w/ no name - Tuesday, May 20, 14 @ 1:29 pm:

    Don’t worry about this Mr. Mayor or City Council. Let’s get back to banning plastic bags and e-cigarettes and building a Star Wars museum


  28. - ArchPundit - Tuesday, May 20, 14 @ 1:29 pm:

    4 Days in Saint Louis–bawaaaa…sure…and I have the Eads Bridge to sell you.


  29. - OldSmoky2 - Tuesday, May 20, 14 @ 1:48 pm:

    And yet corporations keep coming to Chicago and moving headquarters here, Chicago’s gross metropolitan product is larger than most states and many countries, and Chicago continues to be ranked by business insiders as one of the top 10 places in the world to do business. Hmmm… I guess these dumb business leaders are just too focused on making money to listen to the political partisans who are running the U.S. Chamber these days.


  30. - Demoralized - Tuesday, May 20, 14 @ 1:52 pm:

    It on only took God 6 days to create the entire world.


  31. - Formerly Known As... - Tuesday, May 20, 14 @ 2:05 pm:

    Chicago Cynic - thanks for adding some details. I meant “true question” as in “please understand I am not attempting to assume or imply anything about why the experience of you and those you know has been so different from most”

    The experience of some people, such as yourself and those you mention knowing, is apparently much different than the Chamber’s findings and the normal experience of others in Chicago.

    Asking why you think that is was basically a way of asking how you think we might help others have the same experience you have.


  32. - A'mous - Tuesday, May 20, 14 @ 2:26 pm:

    The bigger problem is that it takes decades to overcome a bad reputation. Just ask Decatur


  33. - Illiana - Tuesday, May 20, 14 @ 2:29 pm:

    I would like to see what the figures would be in Joliet & Naperville.


  34. - Shark Sandwich - Tuesday, May 20, 14 @ 2:34 pm:

    It’s nothing to be proud of, but ‘dystopian nightmare’ is just hyperbole. It’s not like Rahm is sending out murderous search parties to find the last copy of the bible…


  35. - Enough - Tuesday, May 20, 14 @ 2:53 pm:

    Must not be too bad since Illinois is the 4th largest manufacturing state.


  36. - 47th Ward - Tuesday, May 20, 14 @ 3:27 pm:

    Chicago takes its zoning laws pretty seriously, as opposed to say, oh I don’t know, Houston, which doesn’t seem to have zoning laws from what I’ve seen.

    If you need to change the property’s zoning as part of your business plan, then yeah, it’s going to take a while. 32 days is optimistic in that regard, but hardly unreasonable.

    I’m not sure the Cubs qualify as a professional services firm (they’re professional losers recently), but take a look at how long they waited before the could do what they wanted to do on their own property.

    Plus, we’ve got 50 Alderman looking for a piece of the action. If we approve these businesses too quickly, how are they going to feed their families?


  37. - Chris - Tuesday, May 20, 14 @ 3:39 pm:

    “Houston, which doesn’t seem to have zoning laws from what I’ve seen”

    Doesn’t have zoning laws, period.


  38. - Steve - Tuesday, May 20, 14 @ 4:47 pm:

    Just a remember , Matthew Yglesias wrote this for Vox. When you’ve lost Matthew Yglesias you are in trouble. He’s an official “off the books” press operative for Barack Obama at Vox. He gets special briefings at the White House from Obama himself. So, you aren’t talking about some libertarian type here bad mouthing backward Chicago. You are talking about an errand boy for Barack Obama.


  39. - Anyone Remember - Tuesday, May 20, 14 @ 5:00 pm:

    Sometimes “excessive regulation” is a result of dealing with past problems like organized crime. For example, one (of many) reasons taxis are so highly regulated:
    http://en.wikipedia.org/wiki/John_C._Montana


  40. - Mama - Tuesday, May 20, 14 @ 9:58 pm:

    It could be due to under-staffing by S.O.S. in the business dept.???


  41. - Precinct Captain - Tuesday, May 20, 14 @ 11:20 pm:

    ==Just a remember , Matthew Yglesias wrote this for Vox. ==

    If you’re a longtime Yglesias reader, you’d know he has been against the concept of widespread professional licensing schemes for a long time.


  42. - Johnny Utah - Wednesday, May 21, 14 @ 11:49 am:

    Starting your new business and competing with the established players is a crime here in Chi-town.

    If you do the crime be ready to do the time! Simple as that!


Sorry, comments for this post are now closed.


* CPS running on fumes
* This has to change
* Today's number: 86 percent
* Department of Revenue projection slammed as "absurd"
* Looking on the bright side
* *** UPDATED x1 - Cullerton responds *** Manar proposal whacked by GOP
* Stuff that sounds good
* Illinois Credit Unions: Giving Back to Our Communities
* State receipts down $5 billion, unpaid health insurance claims top $3 billion
* Lawsuit filed by unpaid social service providers
* Games people play
* Lucas threatens to walk
* Whistling past the graveyard
* Group warns another power generator has hands out in GA
* *** UPDATED x1 - Mitchell won't call it *** Graduated tax hike blasted
* Today's quotable
* *** LIVE *** Session Coverage
* SUBSCRIBERS ONLY - Supplement to today’s edition
* SUBSCRIBERS ONLY - Today's edition of Capitol Fax (use all CAPS in password)
* Yesterday's blog posts

Support CapitolFax.com
Visit our advertisers...

...............

...............

...............

...............

...............

...............


Search This Blog...

Search the 98th General Assembly By Bill Number
(example: HB0001)

Search the 98th General Assembly By Keyword

  
* Tesla ramps up its ambitions, expecting to produce 500,000 cars annually by 2018
* Xiaomi Mi Band 2 delayed with mass-production issues to blame
* 272 million Mail.ru, Yahoo, Outlook, Gmail accounts poached in Russia
* Spirocall measures lung health over any phone – no app necessary
* One year in, Apple Music will get an interface refresh at WWDC [UPDATED with specifics]
* Samsung tops US smartphone market — with caveats
* Cricket targets mom for new LG Stylo 2

* Danks has no hard feelings for White Sox
* Quintana quiets Red Sox as Abreu stays hot
* Abreu's bat sizzling after early fizzle
* Rodon moves up as series continues with Red Sox
* Quintana quiets Red Sox as Abreu sets pace
* Quintana quiets Red Sox as Abreu stays hot
* Quintana quiets Red Sox as Abreu sets pace

...............


Main Menu
Home
Illinois
YouTube
Pundit rankings
Obama
Subscriber Content
Durbin
Burris
Blagojevich Trial
Advertising
Updated Posts
Polls

Archives
May 2016
April 2016
March 2016
February 2016
January 2016
December 2015
November 2015
October 2015
September 2015
August 2015
July 2015
June 2015
May 2015
April 2015
March 2015
February 2015
January 2015
December 2014
November 2014
October 2014
September 2014
August 2014
July 2014
June 2014
May 2014
April 2014
March 2014
February 2014
January 2014
December 2013
November 2013
October 2013
September 2013
August 2013
July 2013
June 2013
May 2013
April 2013
March 2013
February 2013
January 2013
December 2012
November 2012
October 2012
September 2012
August 2012
July 2012
June 2012
May 2012
April 2012
March 2012
February 2012
January 2012
December 2011
November 2011
October 2011
September 2011
August 2011
July 2011
June 2011
May 2011
April 2011
March 2011
February 2011
January 2011
December 2010
November 2010
October 2010
September 2010
August 2010
July 2010
June 2010
May 2010
April 2010
March 2010
February 2010
January 2010
December 2009
November 2009
October 2009
September 2009
August 2009
July 2009
June 2009
May 2009
April 2009
March 2009
February 2009
January 2009
December 2008
November 2008
October 2008
September 2008
August 2008
July 2008
June 2008
May 2008
April 2008
March 2008
February 2008
January 2008
December 2007
November 2007
October 2007
September 2007
August 2007
July 2007
June 2007
May 2007
April 2007
March 2007
February 2007
January 2007
December 2006
November 2006
October 2006
September 2006
August 2006
July 2006
June 2006
May 2006
April 2006
March 2006
February 2006
January 2006
December 2005
April 2005
March 2005
February 2005
January 2005
December 2004
November 2004
October 2004

Blog*Spot Archives
November 2005
October 2005
September 2005
August 2005
July 2005
June 2005
May 2005

Syndication

RSS Feed 2.0
Comments RSS 2.0
WordPress

Loading


* O'Fallon and Shiloh school districts would bene.....
* Social service groups sue Rauner over unpaid bi.....
* Illinois service agencies sue governor for $100.....
* Sponsor shelves graduated income tax proposal, .....
* Illinois service agencies sue Rauner for $100M .....
* Social service providers sue Rauner for vetoing.....
* Illinois service agencies sue governor for $100.....
* Social service providers sue Rauner for vetoing.....
* Sponsor shelves graduated income tax proposal, .....
* Illinois service agencies sue Rauner for $100M .....


* Trial set for 2 men accused of dismembering woman's body
* Urbana officers hope crime lab can help solve 1988 cold case
* Chicago mayor hopes court appeal can save Lucas museum
* Illinois service agencies sue governor for $100M past due
* Illinois senator wants to stop using 'alien' for immigrants
* EXCHANGE: Veteran's lost dog tag returned 45 years later
* Illinois youth home worker pleads not guilty in teen's death
* EXCHANGE: The legend of Bloody Gulch Road lives on
* Advocacy group says Illinois fantasy sports bill needs work
* U of Illinois students now must take minority culture class

* Families sue over transgender access to locker room in Palatine
* After Hastert sentencing, Illinois weighs change to child sex abuse law
* Illinois service agencies sue Rauner for $100M past due
* Sponsor shelves graduated income tax proposal, then blames Rauner for lack of votes
* Illinois Senate OKs measure to stop using 'alien' in reference to immigrants
* Advocacy group says Illinois fantasy sports bill needs work
* Legislative remap amendment proposal receives approval in Illinois House
* Caterpillar moving mining division offices to Arizona
* Legislative panel votes against plan to close Kewanee youth detention center
* Graduated income tax proposal delayed in House, expected to come up Wednesday

* Illinois service agencies sue governor for $100 million past due
* Illinois service agencies sue for $100 million past due
*
* Crain's hires Bertagnoli as nonprofits reporter
* Hillicans? As Trump wins, Clinton explores how to woo GOPers


* Police: Three cellphone robberies reported in South Chicago
* Former Comcast worker guilty of killing second woman
* A way to bring tourism to Chicago’s neighborhoods
* Andrew McCarthy fond of ‘strange’ role on ‘The Family’
* Brian D’Arcy James notes American musicals are always evolving
* Dumb, dumber: Past MLB drug testing, players using ancient ‘roid
* Man shot in vehicle in Brighton Park
* Man charged with murder outside Chatham bar
* Joliet man gets 12 years for attempted murder of ex-girlfriend
* Police: Man stole three cellphones at gunpoint in South Shore


* Trump vs. Clinton: At this point, what difference does it make?
* Cop in Laquan McDonald slaying proposes deputies protect him at courthouse
* Wednesday's recap: Cubs 6, Pirates 2
* Police investigate assault of University of Iowa student from Naperville as hate crime
* Students sue school system, U.S. Dept. of Ed. over transgender access
* Were any picks drafted with Vic Fangio's 'big nickel' formation in mind?
* Takata recall to grow by 35 million to 40 million
* Social service groups sue Rauner over unpaid bills
* Why didn't the Bears draft a quarterback?
* Environmental Nutrition: Some ovarian problems treatable by diet


* Families sue over transgender access to locker room in Palatine
* After Hastert sentencing, Illinois weighs change to child sex abuse law
* Illinois service agencies sue Rauner for $100M past due
* Sponsor shelves graduated income tax proposal, then blames Rauner for lack of votes
* Illinois Senate OKs measure to stop using 'alien' in reference to immigrants
* Advocacy group says Illinois fantasy sports bill needs work
* Legislative remap amendment proposal receives approval in Illinois House
* Our View: Bring some transparency to SHS coaching search
* Catherine Rampell: Hillary Clinton is a fiscal conservative — look it up
* E.J. Dionne Jr.: The irony of celebrity populism


* Champaign man gets six years in drug case
* Crash in Edgar County kills one
* Woman sentenced to 20 years for strangling boyfriend
* Probation violations bring prison term
* The Health Reporter Is In: May 4, 2016
* Street closures listing
* Illini target another Morgan Park point guard
* 05-14-16 Penny for Your Thoughts
* 05-04-16 Jim Turpin with Jim Nowlan on his recent trip to Cuba and column on people leaving Illinois
* UPDATED: Kasich dropping out, AP sources say; Trump on clear GOP path


* Comedian Patton Oswalt remembers wife in touching essay
* Palatine Park District hosts inaugural Volunteer Fair May 15
* District 211 sued over transgender student's locker room access
* The blotter
* Naperville teen says he was victim of hate crime at University of Iowa

* House lawmakers overcome hurdle on key tra...
* Rodney Davis talks funding with Bloomingto...
* The agency that fought Illiana gets a new ...
* Rep. Dold takes educational cruise down Ch...
* Lawmakers decry high turnover rate of VA h...
* CBD Oil, and politics
* Simon considering state Senate bid
* Killer Congressman Tom MacArthur trying to...
* Shutdown? State may not notice
* Rep. Bob Dold

* Progress toward a better future - The Edwa......
* Durbin gets update on Jackson Center activ......

* Kirk campaign, Brendan Kelly spar over pho......
* Relocating NGA to North St. Louis is a big......

* Downtown Chicago Security Guards 'Win Big' Under New Labor Contract
* Trump Wins Indiana GOP Primary (UPDATED)
* Wage Theft Alleged In Lawsuit Against Chicago Dunkin' Donuts Franchisee (VIDEO)
* Graduated Income Tax Amendment Stalls In Illinois House
* Di Leo: Bound and Unbound - A Convention under Attack
* Parents file lawsuit over Illinois' transgender bathroom policy
* Cartoon Of The Day
* Lucas Family Eyeing Locations Outside Of Chicago For Museum
* Illinois Budget Impasse 'Destroying' State's Mental Health Services, Providers Say
* Dynegy Announces Phase Out Of Central, Southern Illinois Coal-Fired Units


* Emergency Management Officials, National Weather Service Encourage Winter Preparedness - November is Winter Weather Preparedness Month in Illinois
* Keep Your Family Safe This Winter - November through February are leading months for carbon monoxide related incidents
* Governor Takes Bill Action
* Illinois Department of Labor Director Hugo Chaviano Awards Governor’s Award for Contributions in Health and Safety to the Illinois Refining Division of Marathon Petroleum Company LP
* State Regulator Elected Treasurer of Interstate Medical Licensure Compact




Hosted by MCS -- CapitolFax.com Privacy Policy -- SUBSCRIBE to Capitol Fax -- Advertise Here -- Mobile Version -- Contact Rich Miller