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* Tribune…
As Chris Kennedy campaigns for governor, he’s talked about his business successes. He’s pointed to his management of the Merchandise Mart, “one of the great economic engines of Illinois,” and to his role developing skyscrapers on Wolf Point along the Chicago River.
Kennedy, however, has not highlighted one of his biggest projects to date — a nearly half-billion dollar public-private partnership to build a convention center and Medical Mart in Cleveland.
Local politicians, led by a longtime family friend, gave Kennedy’s company a no-bid contract and pushed through a controversial sales tax hike to pay for it.
As the project got off the ground, Kennedy told Cleveland residents the one-stop medical superstore would remake the Rust Belt city’s image into a “Disney World for doctors” and draw coveted medical conventions to town.
Instead, the project was plagued by accusations of insider dealings, secrecy and failed promises. Kennedy’s company made millions of dollars, while residents are stuck paying more on items they purchase.
The concept was flawed from the start. The idea was to build a Merchandise Mart for the medical profession, but the idea hadn’t worked elsewhere. A Cleveland tax hike paid for just about everything, and by the looks of things, Kennedy’s side risked almost nothing. From October…
Part of the $465 million taxpayer-funded complex that also includes the convention center, the 235,000-square-foot Global Center has been nothing short of an abysmal failure in each of its three or so different incarnations in the short five years since it opened: The original plan for a healthcare mall showcasing high end medical wares was scrapped early on, replaced by a vision of attracting trade shows and conferences with a focus on education.
Anyway, go read the whole thing. (Headline explained here.)
posted by Rich Miller
Thursday, Nov 16, 17 @ 9:17 am
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A business venture gone wrong, what else is new? He is still the most capable of governing in this race. He has been completely transparent. You can’t tell me that voting for Blago’s protege is inherently better.
Comment by Max Bayer Thursday, Nov 16, 17 @ 9:24 am
I applaud the Simpsons reference. Well done.
Comment by Nuke the Whales Thursday, Nov 16, 17 @ 9:30 am
No-bid contracts are evil (especially for any project that big). This took place a while ago - if I were CK I’d claim that I learned from the experience and say it’s an example of why reform is needed (maybe bring up the Northstar lottery thing or other examples).
Comment by lake county democrat Thursday, Nov 16, 17 @ 9:30 am
===A business venture gone wrong, what else is new?===
Um, really? He socialized all the risk and privatized all the benefits. And you’re OK with that.
Hyperpartisans never cease to amaze me.
Comment by Rich Miller Thursday, Nov 16, 17 @ 9:35 am
Honestly fault lies with both the local Government and Kennedy. The government was desperate to get more businesses and was willing to do anything to do it. Kennedy shall that desperation and used that and his family connections to get himself a sweet deal that other companies may have not gotten if they were doing the job. But, I would say fault lies mostly with the government being blinded by the idea and did stupid things to achieve it.
Comment by Epic Thursday, Nov 16, 17 @ 9:39 am
This has to be a little reaching Rich. I mean read the last sentence of the article, Kennedy was the only one willing to invest in Cleveland at the time. That is a key portion of the story that you are excluding.
Comment by Robert Beasley Thursday, Nov 16, 17 @ 9:41 am
Great - now I’m picturing Chris Kennedy dressed up as a Willy Wonka knock-off character and singing-and-dancing about boondoggles.
Comment by Curl of the Burl Thursday, Nov 16, 17 @ 9:41 am
“I call the big one ‘Bitey.’”
Comment by Doofman Thursday, Nov 16, 17 @ 9:43 am
If anything this makes Chris look like the better man for investing in Cleveland. What was the local government to do?
Comment by Robert Beasley Thursday, Nov 16, 17 @ 9:52 am
Ehh. This is a stretch. Maybe he did have a sweet deal, but the convention center is actually really nice and I have been there for an actual medical convention. People forget how much influence Cleveland Clinic has on the City and the fact that Toby Cosgrove (CEO of C.C.) directly called Kennedy to ask for his help says it all. If you go to the Cleveland Clinic campus, it is filled with cavernous buildings not typical for a hospital. The Global Center is simply a result of Cleveland Clinic’s influence and aspirations and Kennedy carried out the wish.
Comment by Marquette Thursday, Nov 16, 17 @ 9:53 am
==He is still the most capable of governing in this race.==
Based on what? He’s never been in government, and organizing medical care is a huge part of government. We now know his track record on that sucks.
Comment by Arsenal Thursday, Nov 16, 17 @ 9:58 am
==I mean read the last sentence of the article, Kennedy was the only one willing to invest in Cleveland at the time.==
Cool, he took advantage of a desperate city.
I’m having trouble distinguishing this from stadium deals.
Comment by Arsenal Thursday, Nov 16, 17 @ 9:59 am
===for investing in Cleveland===
Cleveland put up the money.
Comment by Rich Miller Thursday, Nov 16, 17 @ 10:00 am
“Is there a chance the track could bend?
-Not on your life, my Hindu friend!”
Comment by Lunchbox Thursday, Nov 16, 17 @ 10:02 am
Wait, you mean Chris Kennedy got a no bid, no risk contract through insider dealings? That can’t be. Don’t you know that he’s an anti-establishment outsider who’s taking on the machine? Yes, I know that Bill Daley is his finance chair, but nevermind that. He’s an outsider! Yes, yes, his grandfather made his fortune bootlegging and his Uncle became president because Daley’s dad stole the election for him. But that’s all old news. Chris is a good government reformer who is a self made man! He built that Merchandise Mart brick-by-brick with his own two hands!
Comment by andjusticeforall Thursday, Nov 16, 17 @ 10:02 am
“He is still the most capable of governing in this race.”
Based on his stellar job as Chair of the U of I board? Some folks I know who served with him on the board and dealt with him in that capacity would beg to differ.
Comment by Anon0091 Thursday, Nov 16, 17 @ 10:06 am
“Socialized the risk and privatized the benefits”. Beautifully stated - short, accurate, and properly stinging.
Comment by Anonymous Thursday, Nov 16, 17 @ 10:11 am
- What was the local government to do? -
Pay for it, apparently. Is reading not your strong suit?
I like Kennedy, but he’s not Gov material. Congress maybe.
Comment by Anonymous Thursday, Nov 16, 17 @ 10:16 am
Sounds like he got the best deal possible for his company. It was the county’s decision on how to pay for it and negotiate the terms. Not good, but this is super weak in comparison to JB disconnecting his toilets for a $250K tax break and talking Rod about appointments after he was under investigation.
Comment by LilLebowskiUrbanAchiever Thursday, Nov 16, 17 @ 10:44 am
Anon0091- You want to back that up? As I understand it, James Montgomery and Patrica Brown Holmes both support Kennedy after serving with him.
Your baseless claims and JB-cheerleading are getting old.
Comment by Rahm's Middle Finger Thursday, Nov 16, 17 @ 11:01 am
Sung to “Even a Miracle Needs a Hand”:
“I’ll take your money;
You pray, and I’ll plan;
To make my cash, cash and carry cause
Clevleand’s center needed a hand!”
“I’ll build you a bulding,
the finest in the land,
with your tax money,
firmly in my hands!”
“My friends are ecstatic; they
cashed in while they can.
Thanks Cleveland for your money,
‘Cause Cleveland’s miracle needed a haaaand!”
Not the first time the rich got richer, and the rest got taxed. And he wants to help the 99%???
Comment by rivvedup Thursday, Nov 16, 17 @ 11:02 am
I don’t find it useful to compare this to Pritzker’s misdeeds. It’s a simple story of how private sector folks shake down governments who are desperate for a win and make bad deals. Sure it’s arguably good business but it’s also bad for society. I think it’s clear that Kennedy thought this would work, but it didn’t. The more troubling aspect for Kennedy is that it appears this was an insider deal and it highlights his privilege and his access to elite circles. Not that he can do anything about that given he’s a Kennedy.
Comment by Veil of Ignorance Thursday, Nov 16, 17 @ 11:05 am
==“I call the big one ‘Bitey.’”
No Kennedy orthodontia jokes, please.
Comment by City Zen Thursday, Nov 16, 17 @ 11:17 am
This is a tough one to spin especially when your campaign hangs on the candidate being the “outsider” who calls out others for being “insiders” that get access and privilege not afforded to others.
Comment by Shytown Thursday, Nov 16, 17 @ 12:22 pm
Kennedy reminds me of the old joke about the person who was born on third base, scores, and thinks he hit a home run.
Comment by Harry Thursday, Nov 16, 17 @ 1:24 pm
“Medical tourism” and “convention centers” definitely have been the monorails of recent decades.
Comment by wordslinger Thursday, Nov 16, 17 @ 1:44 pm
==Kennedy reminds me of the old joke about the person who was born on third base, scores, and thinks he hit a home run.==
What’s that about JB Pritzker?
Comment by Anonymous Thursday, Nov 16, 17 @ 1:55 pm
==”Medical tourism” and convention centers”definitely have been the monorails of recent decades.==
Very witty, but McCormick Place has pursued the medical shows quite aggressively and has been successful at this. Not sure why this failed in Cleveland. It helps if you are a city that doctors and their spouses are excited to visit in the first place.
Comment by Da Big Bad Wolf Thursday, Nov 16, 17 @ 1:58 pm
“What did I say” Monorail! “What’s that sound” Monorail! “What’s it called?” Monorail!
Comment by Boone's is Back Thursday, Nov 16, 17 @ 2:12 pm
Wolf, looking at the Mac Place calendar, I see five medical shows over the next year, with RSNA by far being the big kahuna.
That’s been in Chicago forever and it’s a huge score; 55K wealthy medical professionals filling the hotels, and dining, partying and shopping for the full week after Thanksgiving.
Ten years ago, the show drew 80K.
Thats’s my point. Over the last 25 years or so, dozens of cities of all sizes have built convention centers, and they’re all chasing a piece of a shrinking market of fewer and smaller shows.
It’s a simple equation of rising supply and declining demand.
Comment by wordslinger Thursday, Nov 16, 17 @ 2:22 pm
Always appreciative of Simpsons references
Comment by Vote Quimby Thursday, Nov 16, 17 @ 5:03 pm