Capitol Fax.com - Your Illinois News Radar

Tuesday, May 31, 2016 - Posted by Rich Miller

Amazon plans to more than double its presence in Joliet, adding a second warehouse that it says will add more than 2,000 full-time jobs to the 1,500 it announced last summer at its first Illinois warehouse.

And the state is rolling out the welcome mat, offering the online retail giant additional tax breaks expected to be worth at least $2 million a year for a decade. […]

Ikea and candy giant Mars also are building new distribution centers in the area, which has become a favorite for national retailers looking to serve the Chicago market, thanks to its transportation links and availability of affordable labor: Joliet in March had an 8.8 percent unemployment rate, well above the statewide average of 6.8 percent, according to the Illinois Department of Employment Security. […]

Increased demand for its same-day Amazon Prime delivery service and competition from other Internet retail operations, including Wal-Mart, are pushing it to expand the number of warehouses it operates. In addition to the Joliet warehouse, it also on Wednesday announced additional distribution centers in California.

Loving the jobs, but a company with a $338.55 billion market cap really needs another million bucks a year from us to open yet another much-needed warehouse near a gigantic profit center?

* The Illinois Policy Institute wasn’t all that fired up, either…

Bribing large corporations with tax breaks, though, isn’t what will revive Illinois’ sluggish economy and generate more jobs growth. In August 2015, when Amazon announced its first new warehouse and the new jobs that would come with it, it was revealed that the state had given the online retail giant tax breaks worth approximately $1 million annually – for 10 years. The Tribune now reports Amazon’s estimated tax breaks for the expanded facilities are worth $2 million annually. While more job opportunities are necessary for Illinois’ growing labor force, strong growth will not happen unless the state embraces reform rather than handouts.

* But, hey, it’s a done deal. So the state trumpeted all those new jobs and development, right? Nope…

Other governors have used such news to trumpet the good things about Illinois. But the state Department of Commerce and Economic Opportunity, which is part of the governor’s administration, didn’t even issue a news release about the development.

A spokeswoman for the department led me to an Amazon news release. At least Rauner was quoted in that document.

“By expanding its investments and operations in Illinois, Amazon will employ thousands more hardworking residents to grow our economy,” Rauner said. “This expansion is a vote of confidence in the state’s new way of doing economic development in Illinois with the ILBEDC (the public-private Illinois Business and Economic Development Corp. Rauner formed by executive order) working alongside” DCEO.

I asked Rauner about the 2,000-job development for Will County after a roundtable discussion he had about property taxes and reform at Wiley Office Furniture in Springfield.

“Oh, there’s many companies that are trying to come here, or a few have come here, and many are leaving,” Rauner said. “We’ve been treading water. … I don’t want to go down the list today of the companies who are leaving, and who have announced cutbacks this year and last year. We’re treading water, and we’ve got to grow.”

Oy.

49 Comments

- wordslinger - Tuesday, May 31, 16 @ 1:01 pm:
Geez, at least those no-good socialists would get a piece of the action for their taxpayers for investing millions in corporations.

In the United States it’s just corporate shakedowns and welfare.

- Montrose - Tuesday, May 31, 16 @ 1:04 pm:
That’s a nice one-two punch. We are going to give tax breaks to a company that doesn’t need it and also downplay the benefits to the state.

Now that’s leadership.

- Mama - Tuesday, May 31, 16 @ 1:04 pm:
The Governor ‘The Great Salesman’ is not a salesman for the state of Illinois.

- Not quite a majority - Tuesday, May 31, 16 @ 1:05 pm:
This economic development stuff has got to take a backseat to the Turnaround Agenda, don’t you get that??

- Formerly Known As... - Tuesday, May 31, 16 @ 1:05 pm:
His earlier reforms to Illinois’ corporate welfare incentives were well done and desperately needed.

Still, this sort of corporate welfare is the Quinn-Madigan type of handout that helped dig this debt hole to begin with. We have better things to be spending on.

- Formerly Known as Frenchie M - Tuesday, May 31, 16 @ 1:07 pm:
You mean, “car salesman,” right?

The guy that manipulates you into getting something you don’t need.

That’s “slings and arrows” Bruce.

- Oswego Willy - Tuesday, May 31, 16 @ 1:07 pm:
Perspective?

Rauner tweeted the status Illinois unemployment. The tweet, ambiguous as it is, seemed gleeful(?) at the state’s unemployment status?

A governor “touting” bad economic news?

Speaks volumes.

- ChicagoVinny - Tuesday, May 31, 16 @ 1:16 pm:
I don’t really understand this as a political strategy.

But 2,3,4 years in, people will have forgotten about Quinn and if all they hear is bad news about their state, who does Rauner think is going to wear it?

(Unless the Dems do something dumb like run Quinn again I suppose)

- Liberty - Tuesday, May 31, 16 @ 1:16 pm:
SHHHH, the agenda hasn’t passed yet…

- Demoralized - Tuesday, May 31, 16 @ 1:17 pm:
My question to the Governor would be this: Do you think it’s helpful in the quest to attract business to this state by consistently bad mouthing the state?

- Saluki - Tuesday, May 31, 16 @ 1:19 pm:
“Today Amazon has announced an expansion of their operations in Joliet Illinois. This expansion will create careers for Illinois residents and expand the tax base. I applaud Amazon for choosing to continue to invest in Illinois, and appreciate Amazon recognizing the many benefits of doing business in Illinois. I still believe that reforms are needed in order to encourage more companies to consider Illinois for development, however that should not stop us from recognizing that Illinois is still a great state with much to offer Fortune 500 companies and small business alike.”

- Not Bruce Rauner

- Red Ranger - Tuesday, May 31, 16 @ 1:21 pm:
The IPI was allowed to disagree with Rauner. First the override, and now this?????

- Trolling Troll - Tuesday, May 31, 16 @ 1:21 pm:
Didn’t Amazon make this deal way BEFORE the ILBDEC was formed?

- Anon221 - Tuesday, May 31, 16 @ 1:29 pm:
“And the state is rolling out the welcome mat, offering the online retail giant additional tax breaks expected to be worth at least $2 million a year for a decade.”

*****
Who did the offering- DCEO or ILBEDC (the “quiet” company)??? EDGE credits??? Any “Superstar” get a “commission” on the deal???

- illini97 - Tuesday, May 31, 16 @ 1:30 pm:
Amazon is also locating in the Metro East. Guessing there won’t be a DCEO/ILBDEC press release on that, either.

500+ jobs in one warehouse with options for more.

- Skeptic - Tuesday, May 31, 16 @ 1:32 pm:
Rauner’s “death spiral” spin is immune to facts.

- lech W - Tuesday, May 31, 16 @ 1:33 pm:
So just because Rich thinks the DCEO should have sent out a news release that becomes news ?

- Rich Miller - Tuesday, May 31, 16 @ 1:36 pm:
===So just because Rich thinks===

Actually, it was Bernie’s story that I quoted.

But, um, who do you think owns this here blog? It ain’t a cooperative, bub.

Don’t like it? Start your own blog and praise your glorious governor for whatever you darned well please. I’m sure you’ll make tons of money.

- A Parent - Tuesday, May 31, 16 @ 1:39 pm:
Has this Governor ever said anything positive about why people would want to live or work in Illinois? I can’t think of anything. Anyone want to take a stab at why that is? Anyone want to explain why he would suddenly change his tune?

- Honeybear - Tuesday, May 31, 16 @ 1:39 pm:
–”This expansion is a vote of confidence in the state’s new way of doing economic development in Illinois with the ILBEDC (the public-private Illinois Business and Economic Development Corp. Rauner formed by executive order) working alongside” DCEO.–

Funny that, a deal inked well before ILBEDC which Rauner I’m sure is trying to give credit to the EDC that doesn’t even have it’s 501c3 status yet and I believe four employees.

The reason for the silence is that the ILBEDC is not the group that brought in the fish. DCEO, or what’s left of it, brought it in. I’m sure that is galling that a government agency did it’s job. But truth be told I’m sure that Amazon did most of the work since DCEO has not been staffed.

- Honeybear - Tuesday, May 31, 16 @ 1:42 pm:
Oh and before I forget, HUURRRRAAAAHHHHH We got some jobs!!!!!!!!!!!!!!!!!!

- John Reynolds - Tuesday, May 31, 16 @ 1:50 pm:
2 million bucks for some book shippers?

- Honeybear - Tuesday, May 31, 16 @ 1:50 pm:
–Oh, there’s many companies that are trying to come here, or a few have come here, and many are leaving,” Rauner said. “We’ve been treading water. … I don’t want to go down the list today of the companies who are leaving, and who have announced cutbacks this year and last year. We’re treading water, and we’ve got to grow.”–

There is the perfidy.

- Norseman - Tuesday, May 31, 16 @ 1:54 pm:
From the Rauner perspective, he doesn’t want good news. More convenient if people think the place is horrible. They then believe any proposal sold as reform is better than the status quo.

- Downstate - Tuesday, May 31, 16 @ 1:55 pm:
Building long term economic growth for a community is not about “recruiting” an employer to come to town. Because, those organizations can just as easily leave.

Long term viability comes from growing locally owned firms. Those are the ones with real staying power.

On a side note, just heard this morning of two more Illinois residents setting up residency in Florida. One is a multi-millionaire, the other a billionaire. Estimating their net income, Illinois would need a factory paying $45,000/employee to land in Illinois and employ 800 citizens to replace the lost taxes from these two departing the state.

- Huh? - Tuesday, May 31, 16 @ 1:56 pm:
“2 million bucks for some book shippers?”

That is how Amazon got started. Now you can buy just about anything your little heart imagines.

- Henry Francis - Tuesday, May 31, 16 @ 1:57 pm:
This deal was done before the IEBDC. Heck, it was done before Rauner was elected governor.

- Trolling Troll - Tuesday, May 31, 16 @ 2:20 pm:
Downstate-
I just heard of 2 billionaires, 12 millionaires, and a former hockey great moving into Illinois.

I’ll give the names as soon as I see the list of companies waiting to relocate when big brains TA passes.

- LizPhairTax - Tuesday, May 31, 16 @ 2:24 pm:
Downstate,

Plug us in to your source bro! Where you picking up these fat tidbits? I don’t think your numbers are right but not looking for an argument on it.

Is Jimmy John one of them?

- blue dog dem - Tuesday, May 31, 16 @ 2:27 pm:
Just once I would like the state to announce that a couple hundred mom&pop enterprises received millions in tax breaks.you could find them all in Joliet.you know the ones that have been supporting the schools,non profits, churches, kids sports for the last 100 years or so.

- Downstate - Tuesday, May 31, 16 @ 2:40 pm:
LizPhairTax:
Fair enough question. Was speaking with the multi-millionaire that operates in the same industry as me. The billionaire is NOT Jimmy John, but is also shifting residency out of state.

- Blue dog dem - Tuesday, May 31, 16 @ 2:44 pm:
Forgot one thing. Although old blue doesn’t care much for more taxes, how about sales tax on Internet sales? Kinda think they put a demand on infrastructure just like the aforementioned mom& pops.

- Now What? - Tuesday, May 31, 16 @ 3:08 pm:
Sorry IPI and Trib; you don’t get to have it both ways. You touted job production and here’s what you get. Are you both really that naive as to how this bid-ness works? Perhaps you’re naive in thinking that people don’t know how the bid-ness works. Not our first outsourced rodeo…

- Honeybear - Tuesday, May 31, 16 @ 3:11 pm:
Just once I would like the state to announce that a couple hundred mom&pop enterprises received millions in tax breaks.you could find them all in Joliet.you know the ones that have been supporting the schools,non profits, churches, kids sports for the last 100 years or so.

Totally with you on that! Mainstreet not Wallstreet!

- Earnest - Tuesday, May 31, 16 @ 3:14 pm:
Friends, Romans and Countrymen: I have come to bury Illinois, not to praise it.

- burbanite - Tuesday, May 31, 16 @ 3:26 pm:
Hey Downstate any chance one of them is Rauner? That would be awesome!

- working stiff - Tuesday, May 31, 16 @ 3:40 pm:
does rauner have an actual list that he is referring to?

- molly maguire - Tuesday, May 31, 16 @ 4:09 pm:
don’t let the door hit ya, JJ

- LizPhairTax - Tuesday, May 31, 16 @ 5:41 pm:
Thank you, Downstate.

- Anonymous - Tuesday, May 31, 16 @ 5:51 pm:
–Start your own blog and praise your glorious governor for whatever you darned well please. I’m sure you’ll make tons of money.–

Strange that hasn’t happened, given the big money available for paydays with Bruce’s Excellent Hobby.

Should have done it myself. The mindless content would have been easy, the payday sweet.

I mean, Proft is starting “newspapers” with Rauner money all over the state, right?

If the newspapers are just Rauner/Proft beards that don’t have to make money, why not a blog?

Is it because the Tribbie’s Big Brain Bruce and Hurricane Katrina are giving it away. Their insurance when their public employee union owners finally can dump them to Gannett?

- RNUG - Tuesday, May 31, 16 @ 6:23 pm:
== You mean, “car salesman,” right? ==

The first things that comes to mind for me is “timeshare salesman” immediately followed by “Medicare supplement scam men” …

- PublicServant - Tuesday, May 31, 16 @ 6:56 pm:
Nah, Reverse Mortgage con man is what he is.

- DuPage Dave - Tuesday, May 31, 16 @ 7:20 pm:
My first though was snake oil salesman, but that’s not quite right. Although it lacked genuine medicinal properties, at least snake oil had enough alcohol in it to get the purchaser snockered once or twice.

What Rauner is selling does no good for anyone except the donors to his political fund (the guys with the numerous zeros on their checks).

- Arthur Andersen - Tuesday, May 31, 16 @ 7:35 pm:
I don’t think Jimmy John is going anywhere anytime soon. He has a nice jet (Challenger 300 for those who care) that can get him anywhere he wants uh, freaky fast.

He’s taken so much bad PR from animal rights folks about his hunting trips that he appears to be low-key, and avoiding anything that would foul up his plans for an eventual IPO of the company.

- blue dog dem - Tuesday, May 31, 16 @ 8:55 pm:
I knew there was a reason I loved Jimmy Johns. Particularly the Tuna on whole wheat. Now that I know he is a hunter, I will go there more often.

- Illinoisvoter - Tuesday, May 31, 16 @ 9:49 pm:
“Oh, there’s many companies that are trying to come here, or a few have come here, and many are leaving” Governor you know there are companies that grew here for over a hundred years and are
still investing their futures in Illinois. Follett
just bought Baker & Taylor right down the road
from Joliet in Momence. Chasing strange with tax
breaks erodes trust in government and can we
afford that cost?

- wordslinger - Tuesday, May 31, 16 @ 10:20 pm:
–I knew there was a reason I loved Jimmy Johns. Particularly the Tuna on whole wheat. Now that I know he is a hunter, I will go there more often.–

I’m a carnivore. I have no problem with responsible hunting and fishing.

Anyone, like JJ, who pays big money to bait tusker elephants, or cheetahs, or rhinos, or grizzlies, for candy-ass trophy kills, is a disgusting slob.

Just to be clear — disgusting slob, to bait, endangered species, for sport, trophy kills.

Disgusting. Slob.

Clear?

If not, imagine the banned words under the rules of the house, in context, and I think I’m clear.

Google “jimmy john trophy kills” images. Still a bad-ass?

- blue dog dem - Tuesday, May 31, 16 @ 10:46 pm:
I am pretty sure I will be ordering Jim Johns for the whole factory tomorrow.

- wordslinger - Tuesday, May 31, 16 @ 10:57 pm:
–I am pretty sure I will be ordering Jim Johns for the whole factory tomorrow.–

Meh, you can dream all you want, but it still won’t make your johnson bigger.

That’s the idea about baiting an elephant or grizzly for an easy trophy kill, right, bwana?

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