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* I have several friends who live (or lived) in Austin, Texas. One of them told me on my last visit why he moved to Austin from San Antonio, just down the road.
In San Antonio, he said, the local government was always in your business. Unlike in Austin, everything was top-down. The town was just too involved with the art and music scene, to the point of dominance. Street festivals, he said, were organized from the top, which tended to prevent new ideas from emerging and kept old ideas in place long after their prime.
* Illinois, and particularly Chicago, have the very same problem. We’re just way too top-down oriented here.
For a good example of how top-down we are, just look at the Chicago firestorm over food trucks. From January…
Six months after the city passed an ordinance placing new regulations on the industry granting truck owners the ability to prepare food inside their vehicles, only one of Chicago’s 126 mobile food dispensers have received a license to cook on board. In other major cities, food trucks have been cooking fresh food onboard for years, according to local officials.
Austin, population 820,000, has over 1,000 food trucks. The market is probably over-saturated, but that’s capitalism, man. Survival of the fittest.
* What does Mayor Emauel do to promote local music? He wants to develop special “entertainment districts.” There’s nothing at all organic about that…
“If I were an artist, I would want to move anywhere else than Chicago,” [Paul Natkin, a longtime concert photographer and executive director of the Chicago Music Commission] said, explaining that he knew struggling artists who were fined for not having a business license under former Mayor Richard M. Daley. That sort of bureaucracy, he added, hurts the music industry as well.
“Chicago’s kind of known worldwide as one of the hardest places to get a license to open a business,” Natkin said. “It’s a daunting task to open a venue or open up a record store — or any kind of business in Chicago.”
* In Springfield, where I now live, the mayor has opposed allowing downtown music festivals to stay open past 9:30 pm - on the weekends, for Pete’s sake.
* And it’s not just art and music. As Natkin noted above, it’s difficult to start almost any business in Illinois, and it’s very expensive to keep one going. Workers’ comp costs are killing some of our employers, for example, but nothing is being done to deal with it. Yes, Mayor Emanuel has loosened countless goofy Chicago regulations. He’s to be commended for that. More, please.
Our entrepreneurship rates are the 47th worst in the nation..
This is a huge problem and it absolutely has to be addressed. For the most part, we need to just get the heck out of the way.
* That being said, Gov. Rick Perry can bite me. His high-profile visit this week is basically just a publicity stunt, planned to coincide with a speech to a bioscience convention. Biotech is one of this state’s major bright spots. From a Gov. Pat Quinn press release…
“The Economic Engine of Biotechnology in Illinois” shows the Midwest Super Cluster, which includes Illinois and the surrounding eight-state region, surpasses California and the East Coast in biotechnology-related employment, number of establishments and research and development expenditures. Its four key findings are:
* Within the Midwest Super Cluster there are more than 16,800 biotechnology establishments employing more than 377,900 people. By comparison, California has 7,500 biotechnology establishments that employ 230,000 people, and the East Coast cluster employs 253,000 among its approximately 7,100 biotechnology establishments.
* The overall economic output of Illinois’ biotechnology industry is more than $98.6 billion with 81,000 direct jobs and more than 3,500 biotechnology companies in the state. In fact, Illinois residents employed by biotechnology companies earn up to 91 percent more than the average Illinois resident. The biotechnology industry in Illinois has demonstrated the strongest revenue growth in recent years among all of the states analyzed in this [Ernst & Young LLP] study, an average annual growth of 13.3 percent.
* During the past decade, the top seven universities in Illinois have steadily increased their research and development expenditures, creating new opportunities for biotech startups. Expenditures have nearly doubled since 2001, growing from $727 million to more than $1.3 billion.
* The ability to secure early-stage funding is spurring innovation and growth among startup biotechnology companies in Illinois. Venture capital funding in Illinois has seen a 209 percent increase between 2009 and 2012.
Nurture, offer funding options if needed, deploy the universities where necessary and then get out of the way of the people who know what they’re doing. We don’t need to deregulate to the point where our fertilizer plants are exploding. But we need to let the people of this tremendous state put their fantastic minds to work on what they do best and stop being an impediment.
* Related…
* Rahm Emanuel Welcomes Rick Perry To Chicago: I Hope ‘He Remembers All 3 Of His Reasons For Coming’
* Texas governor trying to lure Illinos business
* Perry: It’s not poaching jobs, it’s just competition
* Tribune Editorial: The Illinois jobs crisis - A recovering nation leaves a Midwest laggard behind. No wonder Perry’s poaching.
* Roger Keats: Texas offers best opportunity for long term businesses
* The True State of the Texas Economy
* Rutherford: Businesses should stay in Illinois, create healthier biz environment
posted by Rich Miller
Tuesday, Apr 23, 13 @ 10:55 am
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Illinois local governments also have to realize that their biz regulations and burdens impact economic development — Illinois municipalities tend to think they operate in a vacuum and they can do no harm.
Comment by Just Observing Tuesday, Apr 23, 13 @ 10:59 am
I’m seeing so much ‘brain drain’ from the University of Illinois because of pensions, raises, and a general distrust towards the state and its ability to keep its promises.
I’m concerned that we’re going to lose the minds that make these things possible. A lot of our startups and discoveries are incubated at the university level and then spun-off or licensed to corporations.
This is not intended as a doom-and-gloom pro-pension post. It’s a genuine concern of mine.
Comment by Stuff happens Tuesday, Apr 23, 13 @ 11:01 am
Good article. Legislators and council members should pay attention.
Comment by Logic not emotion Tuesday, Apr 23, 13 @ 11:01 am
When it comes to food trucks, don’t underestimate the influence of the property owners that house bricks-and-mortar restaurants. They pay property taxes and they don’t want the competition for their tenants.
As far as regulation overall, to me, it’s on a case-by-case review basis. Some I’m sure is too much, some is vital.
Comment by wordslinger Tuesday, Apr 23, 13 @ 11:06 am
Yeah, I would so want to move my business to a state that has no water. It’s just a bonus that regulations are so lax it’s possible to build schools and nursing homes close to uninspected fertilizer plants.
Comment by Chavez-respecting Obamist Tuesday, Apr 23, 13 @ 11:06 am
I agree with you Rich except over the music festivals. Zoning was to create residential neighborhoods without business or congestion. Music events create traffic jams and late night parties can be very obnoxious. Bands are way too loud, unnecessarily so. — the City of Springfield gives all sorts of hassles about minor zoning issues and we don’t need exemptions for loud music.
Comment by Liberty_First Tuesday, Apr 23, 13 @ 11:07 am
Why is Illinois Review giving blog real estate to a hack ex-pol who hasn’t held office in 20 years and doesn’t live in Illinois to bash this state?
Remember how the vietnam era liberals were so ott against the people in power they came across as anti-american? Well that’s how todays gop is to illinois and chicago.
Its like the hatred of democrats has mixed with frustration at not beating democrats in illinois for so long that you’ve gone beyond hatred of the politicians to hatred of the voters with the negative rhetoric and attitude. You also see this with the trib edit board. Its really not appealing.
Comment by hisgirlfriday Tuesday, Apr 23, 13 @ 11:11 am
I think the subtext of what the business complaints are is what Rich is pointing out. On Paper TX and IL are both similar to business. Both have port access, Both have significant areas available for expansion, Both have major transportation access to the rest of the country, both have top notch university grads A&M and UofI. The difference is what Rich is pointing out. In IL it seems like the Government could care less if it’s actions hurt business. The appearance is that somehow if you have a business in IL you will always be here no matter what we do to you. Whereas TX and other states appear to be actively trying to encourage business by keeping regulations reasonable and minimizing harm. Again these are appearances.
Comment by Mason born Tuesday, Apr 23, 13 @ 11:15 am
My experience in Chicago is similar to the article.
They make simple things difficult. Getting a building permit is way too time consuming. Get inspectors out during construction is a pain.
And then there is Ed Burke who wants to outlaw anything he does not like.
Chicago has been blessed by geography, but at times it seems like our elected leaders are intent on screwing it up.
Comment by HenryVK Tuesday, Apr 23, 13 @ 11:19 am
the more the regulations, the more the opportunity for corruption. In order to figure out the myriad rules you either know someone who knows, and that takes time. or some pay to get around them. Yes, this part of Illinois stinks, but I’d rather live here than in no regulations on a fertilizer factory goes boom Texas.
Comment by Amalia Tuesday, Apr 23, 13 @ 11:25 am
===Its like the hatred of democrats has mixed with frustration at not beating democrats in illinois for so long that you’ve gone beyond hatred of the politicians to hatred of the voters with the negative rhetoric and attitude.===
A M E N!
That is so well put, and it crystalizes my thoughts perefctly. We in the ILGOP have got to stop “hating” on things.
We as a Party MUST decide to stand for something, embrace the idea that being less than inclusive to downright loathing anything that is not 100% perfect or pure is terrible. The ILGOP is not going to gorw and expand if we keep “hating” (like the ‘kids’ say…) on things, places, and people. You can’t have a Party “hating” on things in one breath, and go out in the Precincts and say, “we are inclusive” in another. You especially can’t go into the Cook Precicts and have that duality.
We can NOT be the Party that “hates” on things, we will be defeating ourselves more than the Democrats defeat us now.
Well, well, said, - hisgirlfriday -, huge Props.
To the Post,
You can not run government as the Big Brother, save everyone, machine that even rules over the people in control. That being said, I have yet to see a society that is based on NO rules, or laws, or civil control for the betterment of people.
It’s funny, even in discussing government’s role, we are all concerned with “massive control” and “no control”…usually there is a Middle Ground, that allows the freedom we crave, and denies the insanity of pure lawlessness.
There should be equal analysis of unregualted insanity, and overregulated opression. Local governments are a good place to deal with local issues that border EITHER situation.
Comment by Oswego Willy Tuesday, Apr 23, 13 @ 11:31 am
1 truck approved vs 1000 trucks. What, no middle ground? The control freaks will drive you nuts every time.
Comment by dupage dan Tuesday, Apr 23, 13 @ 11:34 am
Unfortunately, during this recession, there has been an increase in regulations, putting one more downward pressure on the economy.
Comment by Cincinnatus Tuesday, Apr 23, 13 @ 11:35 am
Gotta wonder why Capt Fax keeps highlighting stuff that comes from the Illinois Policy Institute….but let’s focus on the fact this index is done by a foundation based in Kansas City MO…..noted mecca of entertainment..last great events were 1976 GOP convention(picked Ford) and the day Rush Limbaugh got fired from the Royals….let us repeat a foundation based in Kansas City MO.
BTW Kaufman’s cash came from big Pharma
Comment by CircularFiringSquad Tuesday, Apr 23, 13 @ 11:36 am
–factory goes boom–
A Borden chemical plant went boom in central IL a few years ago. All those Illinois regs didn’t stop that disaster. Sometimes dangerous jobs have tragic consequences.
Comment by Joe from Joliet Tuesday, Apr 23, 13 @ 11:45 am
willy, as a voter I do not hate Democrats because they keep winning: that engenders a certain amount of respect, and it never gets past that to the voters.
What I as a voter (just one guy, not speaking for anyone but myself) don’t care for is leadership that is perceived as refusing to lead, and shown as fighting among themselves.
IL GOP leadership may be doing the right things, but if so, they have done a lousy job getting that message out.
Comment by DanL60 Tuesday, Apr 23, 13 @ 11:47 am
While I agree over regulation and government interference on both State and Local levels hinder entrepreneurship in Illinois, the most probable cause for being ranked 47th is the dismal shape of the State budget. Entrepreneurship like all other business investments want some stability and balance in a State budget and Illinois offers neither.
Comment by Anonymous Tuesday, Apr 23, 13 @ 11:47 am
==That being said, Gov. Rick Perry can bite me.==
That one made my day.
Comment by Excessively Rabid Tuesday, Apr 23, 13 @ 11:50 am
I don’t mean to carry water for Texas (pun intended),
but factory explosions aren’t unique to Texas.
http://www.csb.gov/formosa-plastics-vinyl-chloride-explosion/
Comment by anonymous1001 Tuesday, Apr 23, 13 @ 11:52 am
Stakes is High
Comment by Artis Gilmore Tuesday, Apr 23, 13 @ 11:52 am
=== Gotta wonder why Capt Fax keeps highlighting stuff that comes from the Illinois Policy Institute….but let’s focus on the fact this index is done by a foundation based in Kansas City MO…..noted mecca of entertainment..last great events were 1976 GOP convention(picked Ford) and the day Rush Limbaugh got fired from the Royals….let us repeat a foundation based in Kansas City MO.===
Just because a view is espoused by the IPI or a foundation based in… brace yourself… KCMO… doesn’t mean the view lacks all merit.
Comment by Just Observing Tuesday, Apr 23, 13 @ 12:00 pm
Agree with Rich’s point, but the food trucks in Chicago are not just being stymied by the city’s regulatory bureacracy. Their real problem is being created by a couple of well-established business groups that don’t want the competition for established restaurants. They lobbied city hall to turn the screws on the trucks.
Comment by Robert Tuesday, Apr 23, 13 @ 12:04 pm
@Joe from Joliet
The Formosa Plastics plant fire and explosion happened on April 23, 2004 in Illiopolis. The accident resulted in the deaths of five workers and serious injuries to three others. About 150 persons were evacuated to avoid contact with toxic fumes and smoke.
Of course, citing the fact that IL regulations didn’t prevent this tragedy doesn’t further the narrative of some folks commenting on this blog.
Comment by AnonIL Tuesday, Apr 23, 13 @ 12:05 pm
- the mayor has opposed allowing downtown music festivals to stay open past 9:30 pm - on the weekends -
The Springfield mayor has also told kids to get off his lawn.
Comment by SirLankselot Tuesday, Apr 23, 13 @ 12:11 pm
Regulations are crazy in Chicago. Try to put a sign up that hangs off the front of your business it is absolutely nuts. A small business owner cannot take the time off from his business to navigate this nightmare. You have to pay people to help navigate zoning and building( hmm I wonder where some of that money goes) nothing can be done online. You have to go downtown for everything. The inspection process is a nightmare. Try and get the inspectors out in a reasonable amount of time. Chicago has one of the worst small business climates imaginable.
Comment by Fed up Tuesday, Apr 23, 13 @ 12:28 pm
I think a couple of factors that create the top-down approach are the veto power of local aldermen and the influence of community groups. Both of these stymie development and protect the status quo.
I sometimes think Chicagoans fear change. Existing business owners don’t want any new competition and residents typically don’t want anything new or unpredictable in their neighborhoods. They use their collective influence on Aldermen who set legal hurdles in the path of anyone trying anything “different.” That mentality combined with locally centralized decision-making is a real impediment to new businesses. Unfortunately, it’s almost as if it’s in our civic DNA.
Comment by 47th Ward Tuesday, Apr 23, 13 @ 12:29 pm
I don’t mean this to sound drive-by, but Roger Keats? Really?
Comment by Arthur Andersen Tuesday, Apr 23, 13 @ 12:39 pm
- DanL60 -,
===that engenders a certain amount of respect, and it never gets past that to the voters.===
“Fire Madigan”?
Is that a “love note” about a Democrat, and further, when “we”…”Fire Madigan”, we throw all the Democrats out! That sounds quite a bit like hating Democrats…Make no mistake, the ILGOP in conceert with the S&HGOP made it personal, and made it about loating Mike Madigan, and the Democrats. That is real.
===…don’t care for is leadership that is perceived as refusing to lead, and shown as fighting among themselves.===
What you are alos seeing is “leadership” making it about SSM and criteria to BE a Republican, and what you are not seeing is “leadership” concerned with expanding My Party and being inclusive.
You are seeing a battle with two wings, one holding a knife to cut the nose off to save its face, and the other wing holding the knife-wielding wing from making that incision. Until My Party understands adding is more imporatnt than subtracting, you will see ZERO leadership from any side able to move a GOP agenda in Illinois forward.
===IL GOP leadership may be doing the right things, but if so, they have done a lousy job getting that message out.===
“Call Me, Maybe?”, “Fire Madigan” “Retire Brady”…
You are on to something there.
Comment by Oswego Willy Tuesday, Apr 23, 13 @ 12:45 pm
–The Formosa Plastics plant fire and explosion happened on April 23, 2004 in Illiopolis. –
Did Blago leave the state a couple of days later to brag about loose regulation (I’m sure he’d never been to Illiopolis)?
Perry could afford to do so, I guess, because the feds are now cleaning up the mess. That plant hadn’t been inspected in 30 years.
Comment by wordslinger Tuesday, Apr 23, 13 @ 12:52 pm
I’ve opened restaurants in four other states and Illinois is by far the most difficult and expensive to operate in. It appears that there is no operating decision to small for a mayor to take a personal interest in. Believe it or not, until I came here, I’d never had a mayor “suggest” we use a specific vendor.
It’s not the headlines are discouraging, it’s what is considered normal that really depresses me.
Comment by Restaurant CFO Tuesday, Apr 23, 13 @ 1:37 pm
The reason for the scarcity of food trucks in Chicago is well known. Tom Tunney, the alderman who owns a restaurant, was quite clear that he didn’t want “unfair” competition against his restaurant business. Give him points for candor, at least. So they passed the most draconian set of regulations possible (like no trucks within 200 feet of a restaurant) to make sure that none would be feasible. He succeeded beyond his wildest dreams.
Comment by Rarely Posts Tuesday, Apr 23, 13 @ 2:47 pm
=== Believe it or not, until I came here, I’d never had a mayor “suggest” we use a specific vendor ===
“By thy dollars gently flowing, Illinois, Illinois”.
Comment by dupage dan Tuesday, Apr 23, 13 @ 3:11 pm
“…it’s what is considered normal that really depresses me.”
The phrase of the week.
Comment by wishbone Tuesday, Apr 23, 13 @ 3:22 pm
Gotta tell you it is the minimum wage that kills me. I have to pay a 17 year old kid with no experience $8.50 per hour? How long did it take everyone on this blog to get to that level? A long time. It may be ok in the big city but the rest of the State suffers!!
Comment by BIG R. Ph. Tuesday, Apr 23, 13 @ 4:49 pm
~~Of course, citing the fact that IL regulations didn’t prevent this tragedy doesn’t further the narrative of some folks commenting on this blog. ~~
Factories explode. That’s why you have zoning laws that prevent corporations from building nursing homes near them.
That is, if you have zoning regulations. Apparently West doesn’t or they were ignored.
Comment by Chavez-respecting Obamist Tuesday, Apr 23, 13 @ 5:07 pm
Illinois has no state building code, and no state zoning regulations. Local authority having jurisdiction may adopt a code / zoning as they wish, or don’t wish. Just in the last several years there was adoption of a default code for all areas without a code - but there is not enforcement.
Chicago has the Chicago Building Code - the last time I saw a hard copy, it included advertisements.
Comment by In the Sticks Tuesday, Apr 23, 13 @ 9:16 pm
Regulation of business is complex and should be constantly under review — too much or too little — and there are some great comments here.
For Chicago, I think 47 and Amalia hit the nail on the head. Hisorically, mayors have pacified 50 aldermen — a ridiculously high number — by ceding them baronial powers. You want to cut through the red tape — who’s your Chinaman?
You can get away with that stuff in boom times.
Comment by wordslinger Tuesday, Apr 23, 13 @ 9:53 pm
When it comes to overall state attitude towards business, the big guys do fine, small business gets squeezed.
Check out the annual reports of Fortune 500 corps. in Illinois. They pay oogats in state income taxes, by law.
Your local small business pays the full freight.
If a Fortune 500 company gets sad, the state will fall over itself with incentives or tax breaks to make them feel all better, until the next time.
The little guy — shut up and pay up.
The difference is, the big guys have more money to spread around and have the hammer of threatening to shift jobs elsewhere. They have a national or international customer base.
Your local small business draws on its neighbors for customers. They have no leverage. If they pack up and leave, one of their competitors will take their place.
It’s a nasty marriage between big businesses who want to shake you down for every handout and politicians who want to churn out press releases for “creating jobs.”
The ones holding the bag are small business.
See CME, CBOE, Sears, Motorola, etc.
Comment by wordslinger Tuesday, Apr 23, 13 @ 11:59 pm