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* Tribune…
Gummy bear-maker Haribo of America will expand its U.S. headquarters in Rosemont and add 55 jobs to its workforce there, Gov. Bruce Rauner’s office announced Friday.
The German company is eligible to receive $1.67 million in incentives for the expansion through the state’s Economic Development for a Growing Economy program, according to the Department of Commerce and Economic Opportunity. The new jobs will nearly double the current corporate workforce of 59 by 2021, according to the governor’s office.
That works out to $30,363 per job. If we gave Amazon the same level of incentives to snag its new headquarters and its 50,000 jobs, the state’s cost would be $1.52 billion.
posted by Rich Miller
Monday, Oct 16, 17 @ 9:18 am
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If it only costs 1.5 billion for 50,000 workers earning 100k a year on average, then Rahm and Rauner deserve reelection on the spot.
Comment by DownstateKid Monday, Oct 16, 17 @ 9:22 am
That’s not economic development, but extremely expensive taxpayer-financed p.r. for the governor.
That’s not just a knock on Rauner, but the whole scatter-brained, false, political/media mindset that government “creates jobs” with these giveaways. It’s a virus across the political spectrum, across the country.
Comment by wordslinger Monday, Oct 16, 17 @ 9:27 am
===If we gave Amazon the same level of incentives to snag its new headquarters and its 50,000 jobs, the state’s cost would be $1.52 billion.===
Not to be a downer, but $1.52billion is probably 1/3 of what Amazon will actually receive from the “winner” of the HQ2 sweepstakes.
Comment by Ducky LaMoore Monday, Oct 16, 17 @ 9:34 am
“If it only costs 1.5 billion for 50,000 workers earning 100k a year on average”
A reminder about averages: Jeff Bezos and you have an average net worth of over thirty-three billion dollars.
– MrJM
Comment by @MisterJayEm Monday, Oct 16, 17 @ 9:37 am
Strip mining of our public coffers
For private gain
That’s money that won’t come in
For necessities of our people
It’s old but read The Great American Jobs Scam by Leroy
EDGE is perfidy
Comment by Honeybear Monday, Oct 16, 17 @ 9:40 am
How many years will it take the State to just break even on that $30,363 per job? That could take many years, especially if the jobs aren’t high-paying.
Comment by anon2 Monday, Oct 16, 17 @ 9:42 am
And Amazonies will pay about $250,000,000 in state income tax
Comment by Annonin' Monday, Oct 16, 17 @ 9:43 am
– If it only costs 1.5 billion for 50,000 workers earning 100k a year on average, then Rahm and Rauner deserve reelection on the spot. –
The jobs at Amazon are probably higher paying - so it would probably cost more. But at a 5% tax rate, at 30k per job, it would take us 6 years to break even. However, if you include the sales tax collected, and the other economic activity that is spurred by these jobs it would be less than that..
Comment by ughh.. Monday, Oct 16, 17 @ 9:54 am
Well, if you really want to make it an apples to apples comparison to the Haribo deal, Amazon will initially sign an EDGE agreement promising 50,000 jobs, and then a few months later say nah, we’re only going to create 25% of the jobs we originally promised. And the superstar negotiators at Intersect will roll over and say “ok”.
I guess when the Guv’s administration has made a habit of entering into contracts in which it has no intention of actually delivering what is promised, companies will take note and start doing the same to them.
Comment by Henry Francis Monday, Oct 16, 17 @ 9:56 am
=== Jeff Bezos and you have an average net worth of over thirty-three billion dollars. ===
Well played, Mr. JM. Well played indeed.
Comment by Free Set of Steak Knives Monday, Oct 16, 17 @ 9:57 am
==And Amazonies will pay about $250,000,000 in state income tax==
Double Chicago bonus: They will occupy high-rent apartments and will have minimal to any kids in CPS.
Comment by City Zen Monday, Oct 16, 17 @ 10:00 am
Since it’s a National HQ, it’s at least conceivable that the average salary for those 55 people is high enough to make $30K more reasonable, but you’re never going to scale that.
Comment by Doofman Monday, Oct 16, 17 @ 10:04 am
About half what Wisconsin paid for Foxconn. With almost 2/3 more jobs and much higher wages than in that Foxconn deal. If they can pay that off future state income tax revenue, well done Gov.
Comment by Anonymous Monday, Oct 16, 17 @ 10:12 am
=== Jeff Bezos and you have an average net worth of over thirty-three billion dollars. ===
If Jeff Bezos has a net worth of $66.0 Billion, then mine and his average is actually less than $33.0 billion
Comment by ughh.. Monday, Oct 16, 17 @ 10:15 am
Toyota and Mazda are looking for $1 Billion in state incentives for their automobile plant that will create 4,000 jobs. I’m not a super math genius, but that sounds like $250,000/job. https://www.bloomberg.com/news/articles/2017-10-13/toyota-mazda-are-said-to-seek-1-billion-package-for-u-s-plant
Comment by SAP Monday, Oct 16, 17 @ 10:38 am
Their plant is moving to Wisconsin. http://www.jsonline.com/story/money/business/2017/08/23/haribo-get-21-million-state-incentives-new-candy-plant-pleasant-prairie/593252001/
Comment by alegra Monday, Oct 16, 17 @ 10:51 am
Nice. Just what all conservatives want. Bought and bought and paid for economic development. Whats next. A sugar tax on gummy bears so we can up the ante.
Comment by Blue dog dem Monday, Oct 16, 17 @ 10:55 am
Wisconsin is doing out over $50k per haribo job. Looks like illinois is getting a better deal.
Comment by Ron Monday, Oct 16, 17 @ 11:59 am
Given this logic the state would be up a billion and a half dollars by dropping out of the Amazon competition.
Taking this flawed thinking further, the state could make trillions of new dollars by not competing for economic development.
Comment by Postbot 5999 Monday, Oct 16, 17 @ 1:44 pm
==If it only costs 1.5 billion for 50,000 workers earning 100k a year on average, then Rahm and Rauner deserve reelection on the spot.==
Anyone who believes that Amazon’s second HQ is going to be the same size, etc., as its primary HQ is dreaming. What does any company need with 100,000 headquarters employees? According to their 2017 10-K, they only have 341,000 total employees now. The Amazon pitch is full of weasel words like “as many as” 50,000 jobs and the jobs will be “high paying.” Neither the 50,000 nor the $100,000 per is going to happen.
Comment by Whatever Monday, Oct 16, 17 @ 7:24 pm