* Tribune editorial board…
Amazon founder and CEO Jeff Bezos, one of the world’s most successful entrepreneurs, is also — suddenly — one of the most important figures in Chicago. His Thursday announcement that Seattle-based Amazon is searching for a North American location in which to establish a second headquarters puts this city in the running for an extraordinary prize.
The powerhouse digital retailer plans to invest $5 billion to create a massive office complex that in time could employ 50,000 people. These would be great-paying tech, white-collar and other positions in such vast numbers they could transform the economy and identity of whichever city Amazon chooses. As one commentator noted, the nearest comparison might be the competition to choose an Olympic host city — except Amazon’s jobs won’t disappear after three weeks.
Amazon could pick Dallas, Boston, Toronto or elsewhere, including Chicago. We’ve got lots of reasons why Amazon should pick Chicago. But we also know why Bezos might steer clear of Illinois: Springfield dysfunction, with its decades of fiscal mismanagement and the vast public debts that now fall on employers and all other taxpayers.
Can Illinois improve its reputation in time to snag all those jobs? House Speaker Mike Madigan, Senate President John Cullerton, we’ve suggested that you step down from leadership and, like former Senate Minority Leader Christine Radogno, make way for fresh leadership. Gentlemen, your combined 86 years in the legislature have left Chicago and Illinois weakened for this competition. Show Amazon and others in the most convincing way possible that this state’s future holds more promise.
* Meanwhile, Neil Steinberg penned a tongue in cheek letter to Amazon’s top guy…
The New York Times immediately worked up a shaggy dog analysis of all the metropolitan areas in the country, dismissing Chicago based on the grim finances of the state. Which are real enough, but also rather like skipping Paris on your spring vacation because of France’s high unemployment rate.
The Times cooked their figures and came up with . . . Denver.
Have you been to Denver? It’s Cleveland, with mountains.
Finding a city based on a list of criteria evokes the classic blind men and the elephant tale, where one guy feels the trunk and declares it like a rope, another finds its side as very wall-like, another a tree. Nothing like the magnificent beast itself. Which is what Chicago is — a magnificent beast. There is more to life than tax rates and profit margins. A guy who paid $250 million for a newspaper in 2013 — the going rate today is $1 — must know that.
Sure, you can take the train to the airport from downtown Chicago for $2.25. But that isn’t the main allure. The main allure is you’re here, and your people are living their lives here. We’re a place that instills significance to whoever arrives and grabs for it. Chicago brought the world the blues, and helped birth jazz. Michael Jordan, Oprah Winfrey and Barack Obama all showed up nobodies and thrived here. What did Denver give the world besides a crunchy omelet?
* And John Pletz at Crain’s believes this is Chicago’s to lose…
But that’s the catch: Amazon says it’s looking for a metro area that can support up to 50,000 jobs, most of them tech-oriented. That eliminates all but a handful of cities. Although the San Francisco area has the largest concentration of tech workers, at more than 300,000, it’s too close to Seattle to give the company the benefits of geographic diversity. Besides, the labor market there is even more expensive and more cutthroat than the one in its hometown.
Outside San Francisco, only Washington, New York, Toronto, Dallas/Fort Worth and Chicago have bigger pools of tech talent than Seattle, according to research by real estate firm CBRE. Only four metro areas produce more than 10,000 tech graduates a year: New York, Washington, L.A. and Chicago.
Given that Amazon CEO Jeff Bezos has become very familiar with the nation’s capital since he bought the Washington Post, I wouldn’t count out Washington. It has the biggest collection of talent outside the Bay Area and is a primary connection point for internet traffic.
Yet Chicago remains a strong candidate. It has as many tech workers as Seattle, although that’s lost on most outsiders because Chicago’s economy is dispersed across so many industries. One potential drawback, however, is a relatively small pool of software talent, which is Amazon’s primary focus. Chicago has about 44,000 software developers and programmers, about equal to Boston, Atlanta and Toronto. New York has 143,000, while Washington is about equal to Seattle’s software base of 72,000. The Bay Area has about 143,000.
- Oswego Willy - Monday, Sep 11, 17 @ 10:20 am:
All I’m saying is… if Amazon chooses Chicago (big if, we’ll see) and Madigan and Cullerton didn’t resign, and Rauner is all giddy they chose Illinois…
… how ridiculous will the Trib Edit Board look… calling on the resignations of Madigan and Cullerton.
Then again, they don’t care anymore, that Trib Edit Board, about how they may look.
- Steve - Monday, Sep 11, 17 @ 10:23 am:
Chicago’s problems are bigger than 2 individuals. Given Texas’ more friendly business environment: they would have an advantage over Illinois.
- The Old Professor - Monday, Sep 11, 17 @ 10:23 am:
Make it Madigan, Cullerton and RAUNER resign, and maybe you’ve got yourself a deal. Wouldn’t we be better off if they ALL decided not to run for re-election?
- Whatever - Monday, Sep 11, 17 @ 10:27 am:
And when the Democrats nominate another Blago, who wins for the same reason Rauner won in 2016 (because the incumbent is so incompetent), and there is no Madigan to stand up to him . . . ? How quickly and thoroughly the “because Madigan” crowd has forgotten.
- Sue - Monday, Sep 11, 17 @ 10:30 am:
One word comes to mind after reading this post- idiotic. As if the resignation of two people might change the business climate. If any one individual leaving might make a difference- it’s more likely Tom Balanoff. Illinois needs structural reform and the reduction of union influence. It takes more then a handful of people being replaced
- Anonymous - Monday, Sep 11, 17 @ 10:30 am:
Bruce Dold and the Trib Ed board should lead the way. Really show’em how it’s done.
- DuPage Saint - Monday, Sep 11, 17 @ 10:33 am:
I want to see real numbers about real benefits. By the time state and local government get done giving everything away will be a net loss. Unless of course we can get Wisconsin to chip in.
- wordslinger - Monday, Sep 11, 17 @ 10:35 am:
What’s fascinating about the tronclodyte editorials is that presumably a number of adults read them and put them to the test before they’re committed to print.
A lot of work goes into hitting that standard of incoherent, shallow and juvenile reasoning.
I’m sure Amazon has already decided where they want to make this huge investment. They’ll gin up a “competition” to maximize the corporate welfare from the choice city.
Learn a lesson from ADM: Make sure your execs don’t jump the gun and start buying multi-million-dollar homes in the city of your choice until the “competition” is over. That kind of hurt their bargaining leverage.
- Moe Berg - Monday, Sep 11, 17 @ 10:37 am:
I truly hope that all Democrats will boycott the Tribune’s editorial endorsement process. The ed board is just a house organ for the GOP. That’s fine. It’s their first amendment right. But, no need for Dems to lend it any legitimacy as being any sort of objective or thoughtful vetting. Verdict first, then the trial.
The regular reporters, sometimes, are capable of good journalism. But, I’ll never spend a cent of my money supporting a publication with such an irresponsible editorial voice so at odds with the sensibilities of the city it calls home.
- Bruce Please - Monday, Sep 11, 17 @ 10:38 am:
The Trib Ed Board just can’t help itself. Rather than finally being a public cheerleader for potentially the best candidate city, they squander the opportunity to make a ridiculous political argument. The city deserves better than these clowns. Dold - you should know when to realize you’ve got a forest/trees issue.
- illinois manufacturer - Monday, Sep 11, 17 @ 10:42 am:
In all seroiusness we should work with the neighbors on this and Foxxconn. I doubt they want all downtown. So we could do something with Wisconsin or Indiana or even Iowa or Michigan.The Midwest looks pretty good these days.
- Honeybear - Monday, Sep 11, 17 @ 10:45 am:
Excellent job Trib. Always Be Framing
Blame Madigan and Cullerton for the loss of Amazon.
Nice
Except that the biggest reason we won’t get it is because
We don’t have the incentives to pay Amazons extortion
Because of the 15 billion in unpaid bills
Rauner not having signed the EDGE bill
The destruction of higher ED and the private social service safety net
Yeah, we’re not getting it because our state I’d a smoldering heap
This is where the whole “burn it down to rebuild it” plan went awry
The capitalist utopia hasn’t been built yet
We just look like East St. Louis to Amazon
A ruin
All Rauners Fault
- walker - Monday, Sep 11, 17 @ 10:47 am:
Up there among the stupidest editorials ever.
Bezos’ response would be “who?”
- Downstate - Monday, Sep 11, 17 @ 10:48 am:
Landing Amazon, Google, Microsoft or Facebook won’t solve our underlying problems. They would be nice victories, to be sure.
But, we’ve got to get the state, counties and municipalities on firm financial footing. Everyone I speak with in the Chicago suburbs are feeling tremendous stress over CURRENT real estate taxes, knowing that they will only get worse. The out-migration has now moved from the “wealthy” to regular middle class folks.
- Ahoy! - Monday, Sep 11, 17 @ 10:50 am:
Chicago hasn’t been as damaged by our pathetic economic leadership as much as downstate has. While I appreciate the sentiment, Chicago could still land Amazon. Is their chances hurt by our poor economic and fiscal management? Of course! But the real damage is in everywhere outside of the Chicago metro. Our state legislature has really ignored economic and businesses issues that face the rest of us. It’s hard for downstate to complete with Iowa, Indiana, Missouri, Kentucky and Ohio. Just go up to the Quad Cities and look at the difference between the Illinois side and the Iowa side.
It is time for new leadership so long as that leadership starts addressing our problems and stops treating our state like as a game of accumulating and managing power.
- Langhorne - Monday, Sep 11, 17 @ 10:50 am:
Madigan and cullerton voluntarily resign? Are you nuts?
10,000 tech grads per year? Probably would be more, if we werent sending 72,000 kids out of state.
- Romeo - Monday, Sep 11, 17 @ 10:52 am:
Lol @ “Have you been to Denver? It’s Cleveland, with mountains.”
I was just in Denver last month. You know what I saw? A growing city and growing state, with people actually happy to live there. Colorado has mountains-actual scenery. Cranes up everywhere in downtown Denver.
- We'll See - Monday, Sep 11, 17 @ 10:57 am:
A “The Speaker and President resign “would be about as accurate as the Trib’s “Dewey defetes Truman” infamous headline.
- Robert Lincoln - Monday, Sep 11, 17 @ 10:59 am:
I see a question of the day. Why should Amazon choose Chicago? Snark encouraged.
- Dan Vock - Monday, Sep 11, 17 @ 11:01 am:
Has Neil Steinberg been to Denver lately? Seriously? It has a booming economy, a beautiful city, amazing nearby natural resources, and a very promising future. The transformation of the city in just the last decade is breathtaking.
That doesn’t mean Denver should necessarily get the Amazon HQ, but there is a lot Chicago could be learning from Denver. Hopefully, Chicago’s leaders (including its columnists) won’t be too parochial to see that.
- Out Here In The Middle - Monday, Sep 11, 17 @ 11:09 am:
And Hardik Bhatt - former CIO for the City of Chicago just resigned as CIO for the State of Illinois to take a new position with Amazon . . . .
- Fairness and Fairness Only - Monday, Sep 11, 17 @ 11:14 am:
What a waste! While most newspapers are spending resources to help sell the benefits of their city, the Tribune can’t pass up another daily opportunity to continue useless political bickering. Meanwhile, Denver and Dallas are spending their talents attracting good jobs instead of wallowing in political waste.
- RIJ - Monday, Sep 11, 17 @ 11:15 am:
Just another Trib editorial that strikes a childish and petulant tone. The Trib is very disappointing.
- Joe M - Monday, Sep 11, 17 @ 11:25 am:
Rauner is always the one knocking Chicago (and the State of Illinois too). He touts hiss anti-Chicago message all the time. He should be the one to resign.
And if Amazon doesn’t choose Chicago, Rauner will also claim that it was because job creators love term limits - and Illinois doesn’t have them.
- Publius - Monday, Sep 11, 17 @ 11:33 am:
Amazing will go where is the most demand of their services.
Thinking a company picks a location on any other criteria is silly.
- Arsenal - Monday, Sep 11, 17 @ 11:34 am:
==Learn a lesson from ADM: Make sure your execs don’t jump the gun and start buying multi-million-dollar homes in the city==
Too bad Bezos just bought a house in DC then, huh?
- Skeptic - Monday, Sep 11, 17 @ 11:42 am:
Wait, so it actually isn’t redistricting that would make businesses want to move here?
- zatoichi - Monday, Sep 11, 17 @ 12:13 pm:
The Tribune has not exactly been the model of financial stability. You would think they would be cheerleading why strong players should come to help build the Chicago powerhouse. There is plenty of room in northeast Illinois for 50,000 tech professionals and their families. Got jobs paying $100,000 a year? People will come. Need more graduates? The Illinois based university systems are very capable of crank them out with reasonable support from the state. Quit the ‘broken’ mantra and focus on what will work.
- dbk - Monday, Sep 11, 17 @ 12:14 pm:
I read the RFP over the weekend, and am almost certain it’s a mirror tender, designed for Chicago but not conspicuously so.
A few points:
(1) Chicago fulfills all the high-end criteria stipulated and then some, with the exception of
(2) a “stable business environment”, etc. But it’s pretty interesting to see how far down the list that one is. Companies like Amazon know that state governments/legislators/governors - even House Speakers - come and go. This move will outlast many successive state governments. They’re prepared to deal with it.
(3) The major hurdle for any fully-developed metropolitan region is housing near the Amazon offices/”campus”, which is clearly what the company favors. (That’s why San Francisco’s a non-starter.)
(4) When I started to research what sorts of big parcels Chicago is looking to develop, I discovered that South Works was just awarded (August)to a Dublin-based clean energy/sustainable living firm which can build sustainable housing at ten times the speed of normal construction - this is important, given the timeline (operations start in 2019). And the company’s mission looks uncannily like what Amazon wants in terms of sustainable construction.
(5) South Works is 440 acres; in addition, the North Branch Industrial Corridor was recently re-zoned (finalized in May) in the biggest re-zoning since 1871, the fire. That’s 760 acres. One section of it near the southern tip is set to be developed into office/commercial for up to 6000 employees and 800 residents. Guess where the developers (Riverside) spent their summer vacation - yep, on the West Coast, figuring out what tech millenials want in the way of housing and extracurricular onsite amenities.
I think Chicago’s probably solved the biggest challenge - massive amounts of new housing, deliverable in record time.
My bet would be on South Works as the “main campus” - it’s the right size, the Dublin clean energy developers are tailor-made for Amazon, and the site is tentatively planned to accommodate 20,000 - 30,000 residences. Eight million square feet of office space is very doable there.
P.S. Hardik Bhatt is joining Amazon this very week, and will assume a “public-oriented” position involving the IoT, hmm. I suspect he may become the informal point man in negotiations with the city and state on technical issues.
P.S. Anyone interested in the detailed argumentation can click and visit … published yesterday.
- Chicago Cynic - Monday, Sep 11, 17 @ 12:17 pm:
The Trib embarrasses itself more and more each day. First they blamed Madigan and Cullerton for our failure to get FoxConn even though Rauner didn’t even compete for it, and now this. Guys, let me break it down for you. Illinois does not rise and fall based on the whims of Madigan and Cullerton. It’s a great state and should be marketed as such. But you can’t attract new businesses here if you send Eyore out with a message of how awful we are.
Let’s see how that would work if they were dating.
Trib: Hi there Sarah. Would you like to go out with me? I’m short, fat, have bad hygiene, only listen to Engelbert Humberdin, live with my Mom and I can’t hold a job.
Sarah: I’d rather rearrange my sock drawer.
Trib: Yea, but Madigan and Cullerton.
Sarah: Who? Get away creep.
- wordslinger - Monday, Sep 11, 17 @ 12:21 pm:
arsenal, I’m sure Bezos has many homes. And he owns The Washington Post, among other things.
I was referencing the Decatur-based CFO of ADM buying a multi-million-dollar crib in Lincoln Park during the alleged corporate hq competition. Kind of gave the game away.
- Grandson of Man - Monday, Sep 11, 17 @ 12:21 pm:
Bad slur on Denver by Steinberg. Denver is a booming, beautiful city with lots of construction. It has beautiful parks, and of course, the Rockies just a few miles west.
Colorado is doing great, with a super-low unemployment rate and none of the union-busting that goes on in the Midwest. With marijuana legalization and investment in schools, among other things, Colorado is a forward-thinking state. I won’t be surprised if Denver wins Amazon.
- City Zen - Monday, Sep 11, 17 @ 12:33 pm:
== Colorado is a forward-thinking state. ==
And a flat state income tax.
- igotgotgotgotnotime - Monday, Sep 11, 17 @ 12:50 pm:
Or offer to make Bezos the potentate if his own wholly owned subsidiary of Illinois, that should make tronc happy.
- blue dog dem - Monday, Sep 11, 17 @ 12:56 pm:
Improve its reputation=more tax dollar incentives. Plain and simple math.
- Ron - Monday, Sep 11, 17 @ 1:11 pm:
- Steve - Monday, Sep 11, 17 @ 10:23 am:
Chicago’s problems are bigger than 2 individuals. Given Texas’ more friendly business environment: they would have an advantage over Illinois.”
Nope, not according to the RFP requirements.
- igotgotgotgotnotime - Monday, Sep 11, 17 @ 1:13 pm:
“And a flat state income tax.”
With an 8% better return on their federal tax dollars than Illinois gets, to boot.
- Ron - Monday, Sep 11, 17 @ 1:15 pm:
That doesn’t mean Denver should necessarily get the Amazon HQ, but there is a lot Chicago could be learning from Denver.”
I think Denver has a very remote chance. It is hardly any quicker to get to NYC and DC, than Seattle.
But Illinois does have a lot to learn from CO. Like how to legalize, regulate and tax pot.
- SPC 605 - Monday, Sep 11, 17 @ 1:31 pm:
Get Mrs Bezos to like Chicago and you have 95% of the problem solved. The Bezos donated $2.5 million to a campaign to legalize same sex marriage - good bye TX,GA and other “red” States. Stay liberal Illinois - educated people like that!
- SPC 605 - Monday, Sep 11, 17 @ 1:33 pm:
Get Mrs Bezo and you get Mr Bezo. See as how they support same sex marraige with their wallet to the tune of $2.5 Million, say goodbye to TX and GA along with most of the other redder states.
- Blue dog dem - Monday, Sep 11, 17 @ 1:57 pm:
Dear Mr.&Mrs. Bezo; on behalf of the Blue Dog family, we only want your company to relocate to Illinois if we dont have to pay a ransom. Thank you for your consideration.
- commonsense 171 - Monday, Sep 11, 17 @ 3:28 pm:
Add Emanuel to the list. We need a wholesale changeover in government
- Ron - Monday, Sep 11, 17 @ 3:45 pm:
Emanuel is the only thing keeping Chicago together. Chuy would have destroyed the city.
- wordslinger - Monday, Sep 11, 17 @ 3:53 pm:
–Emanuel is the only thing keeping Chicago together.–
Do you get dinner and a movie after comments like that, or just a mint?
- Ron - Monday, Sep 11, 17 @ 4:07 pm:
word, under Rahm, Chicago has boomed. Even though he has been forced to increase taxes due to Daley’s horrible fiscal management.
Chuy would just give the bank to CTU and coddle criminals.
- wordslinger - Monday, Sep 11, 17 @ 4:29 pm:
–word, under Rahm, Chicago has boomed.–
Yeah, it was all because of him. That’s how it works.
Daley was the Indispensable Man, too.
- Ron - Monday, Sep 11, 17 @ 4:39 pm:
Rahm has certainly been business and investment friendly. Unlike the mopes that ran against him and despite a bunch of fools on the City Council.
You really think Chuy would attract large corporations like Rahm has?
- Lulu Belle - Monday, Sep 11, 17 @ 7:25 pm:
Chicago has much to offer. Centrally located within the country, international airport, reasonable base of tech employees to draw from and a mega Democrat as mayor. Bezos has to love all of the above. And there is a very high probability that there will be a Dem in the governor’s office soon.
I hope it all comes to fruition. I don’t know what everyone here would complain about then, but it sure would be different.
As for Madigan and Cullerton, relax - they will both be carried out of their offices feet first.
- blue dog dem - Monday, Sep 11, 17 @ 7:43 pm:
Folks. Without buku ransom money, Illinois has no chance. But fear not. Our illustrious elected officials will see to it to pony up a whole bunch of our newly raised income taxes to entice this multi-billion dollar corporate behomoth to come to our state.
- Annonin' - Monday, Sep 11, 17 @ 8:59 pm:
Anyone notice they are adding 7K jobs to their will county center….apparently Bozos thinks Illinois not that bad. Statehouse chick swings and misses again. Stick with pining away for Blagoof.
- Ron - Tuesday, Sep 12, 17 @ 8:12 am:
Distribution center jobs are very different than a hq. They don’t pay all that well. Amazon distribution close to huge population centers its whole purpose.