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“I’ve got $400 million at risk in our city”

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Illinois

Chicago hotelier Laurence Geller is agitated and disappointed by the Illinois budget morass, and he’s taking political leaders to task for it.

“Please, everyone, will you just grow up? I’ve got $400 million at risk in our city,” he says, referring to the value of his two Chicago hotels, the Waldorf Astoria and soon-to-open Conrad.

Particularly galling, he says, are budget cuts at Choose Chicago, the tourism promotion group that operates, in part, with taxes collected from hotel bookings. Unlike the vast majority of the state budget, in which spending either is automatic (bond payments) or mandated by court order (some social services), funds designated for tourism promotion have been frozen while the state operates without an approved budget.

That’s correct. And the hotel tax is not GRF, so it’s yet another hostage.

* Back to the story…

“I stay away from politics,” Geller says. “But now, whether it’s the mayor, the governor or the (House) speaker, I say, ‘Please, can we have money for tourism?’ The city needs taxes. The state needs taxes. But tourism gives you taxes.” […]

Geller says “the constant series of crises every year” makes it difficult to do business and that political leaders should know better.

If our leaders in this state listen to anybody, it’s the very rich. CME thinking of moving? Give ‘em a tax break law. Giant conventions upset about costs? Whack organized labor and override a veto to do it. A group of wealthy people want education reform? Give it to them on a silver platter.

Geller maxed out to Rauner’s campaign in 2013. So, maybe if some of Geller’s wealthy pals also speak up, things will start moving.

In other words, more like this, please.

posted by Rich Miller
Friday, Oct 16, 15 @ 12:12 pm

Comments

Exactly what the city of Chicago and state of IL needs, more government aid for the already wealthy.

Comment by Angry Republican Friday, Oct 16, 15 @ 12:14 pm
Looks like that Brown guy nailed it again….line item/reductions vetoes could have saved the slush fund for the tourism ads….what did he say “another bungle” ?
Nailed

Comment by Anonin' Friday, Oct 16, 15 @ 12:16 pm
I missed the part where he cared until it hit his wallet.

Another Laurence with a “u” looking out for anyone but you.

Comment by LizPhairTax Friday, Oct 16, 15 @ 12:19 pm
Gee, a rich guy being held hostage by the rich guy.

By the way, Bruce said thank you for the money. It put me in the position to take you hostage.

Comment by Norseman Friday, Oct 16, 15 @ 12:24 pm
Choose Chicago fired 28 people last week due to its hotel tax money being held hostage. Real people, out of work.

And, of course, McPier lost its AAA bond rating, busted down seven notches, due to its hotel tax money being held hostage.

Those are real consequences to the governor’s political strategy for the agenda he can’t articulate any tangible benefits for.

Comment by Wordslinger Friday, Oct 16, 15 @ 12:31 pm
Don’t worry Laurence Geller, you are going to get the business savvy and money makin’ term limits out of this mess. Just keep sacrificin’ and maybe we’ll get some real reforms!

Comment by 360 Degree TurnAround Friday, Oct 16, 15 @ 12:35 pm
Until the affected “powerful” (moneyed) Republicans begin to push-back on Rauner nothing is going to change.

Comment by Buzzie Friday, Oct 16, 15 @ 12:45 pm
So we gave CME a tax break, they then doubled-down on their data center presence here, and now that they are “trapped”, folks are pushing the LaSalle St tax.

Excellent bait and switch.

Comment by nixit71 Friday, Oct 16, 15 @ 12:52 pm
Nixit, is that a gag? A transaction tax has been “pushed” for forty years.

A Democratic majority GA and a Democratic governor gave CME a huge tax break at the lowest point of The Great Recession.

Who, exactly, do you think is going to roll them now?

Comment by Wordslinger Friday, Oct 16, 15 @ 1:06 pm
“Shaking up Springfield” isn’t something that can be isolated from things which can’t or shouldn’t be shaken.

The longer this governor is out of control, the more unstable Illinois becomes. Rauner’s nine months in office has caused huge damage to our state. Shaky governments don’t attract new businesses. A governor with a history of embracing chaos, bankruptcy and confusion cannot employ these tactics in a state needing stability.

Comment by VanillaMan Friday, Oct 16, 15 @ 1:25 pm
@Word-I’m aware that the FTT has been pushed for awhile. My comment is more directed at CME’s significantly large technical footprint today and folks using that now as a good reason to levy the tax as they are “trapped” (I’ve heard that term used by the pro-FTT folks).

My comment is not on the tax itself. Rather, the logic and mentality behind levying a tax on an entity that has been rendered immobile.

Comment by nixit71 Friday, Oct 16, 15 @ 1:35 pm
Nix, CME was never moving. Nanoseconds count in trades, and they need the pipes.

Where were they going to go, low-tax Manhattan?

Comment by Wordslinger Friday, Oct 16, 15 @ 1:41 pm
VMan 1:25 above

Worth rereading

Comment by walker Friday, Oct 16, 15 @ 2:40 pm
Somebody’s assignment: watch to see if there’s any big change in this guy’s political contributions.

Comment by Sangamo Sam Friday, Oct 16, 15 @ 3:45 pm
Geller got exactly the governor he paid for.

Comment by MasterPiece Friday, Oct 16, 15 @ 3:49 pm
Wee bit of historical irony:

Back in 2010, businessman Rauner was head of the Chicago Convention and Tourism Bureau, the forerunner of Choose Chicago.

NBC dug up a tape of a speech in which he praised, “on behalf of the business community,” the “extraordinary teamwork” of “leaders” Quinn, Madigan and Cullerton for keeping the restaurant show in Chicago, because there was no business more important than conventions and tourism.

It’s trippy. Google “Bruce Rauner ward room Chicago convention and tourism speech.”

Comment by Wordslinger Friday, Oct 16, 15 @ 4:01 pm
==Please, everyone, will you just grow up?==

+1

Comment by Formerly Known As... Friday, Oct 16, 15 @ 4:34 pm
===his two Chicago hotels, the Waldorf Astoria and soon-to-open Conrad===

Doesn’t Ken Griffin own a couple of floors in the Waldorf? Maybe Geller ought to knock on his door.

Comment by 47th Ward Friday, Oct 16, 15 @ 4:41 pm