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* The Chicago Teachers Union demanded this week that Gov. Pat Quinn veto DePaul arena financing bill, which was included in a much larger economic development proposal…
As part of its protest and march, the CTU says it will demand that Gov. Pat Quinn not support a bill authorizing financing for the construction of a 10,000-seat basketball arena for DePaul University. […]
[But Chicago Public Schools spokesperson Becky Carroll] said a $50 million TIF subsidy “is not going to solve our structural deficit.”
* Quinn sided with the city and signed the bill into law. The media’s focus, however, was on the 3rd airport language. AP…
After decades of dispute, the possibility of a third airport in the Chicago area finally materialized Thursday as Gov. Pat Quinn signed a wide-ranging bill that’ll put state transportation officials in charge of the hub and allow them to spend $71 million on land.
Hopeful talk of a south suburban airport has dominated this economically struggling area since the 1970s and spanned the careers of numerous politicians, including former U.S. Rep. Jesse Jackson Jr. But movement was stalled by fights over local control, revenue and environmental impact, as well as whether it was necessary, given the metropolitan area is already served by two major airports.
* Phil Kadner has an excellent and comprehensive take on the matter. Just a snippet here, so go read the whole thing…
It was Crete Mayor Michael Einhorn who brought a dose of reality to Gov. Pat Quinn’s South Suburban Airport bill-signing ceremony Thursday.
“It’s a fact-based process now,” said Einhorn, whose community is located near the proposed airport land.
Ads by Google“I mean that private developers will now examine this idea, look at all the facts and determine if it’s worth investing their money,” Einhorn said.
“It’s not some politician’s dream. Can this airport plan make money? That’s what we’re going to find out.”
* The package also included an incentive for a huge fertilizer plant. As an added bonus, a young GOP state legislator previously known for not playing well with others finally learned how to play with others…
A Central Illinois Republican says a new law offering tax incentives to a company looking to build a fertilizer plant in either Tuscola or Iowa shows what can be accomplished when lawmakers work together.
State Rep. Adam Brown, R-Champaign, is a key supporter of trying to lure Cronus Chemical LLC to Douglas County.
In the end, a package of tax breaks for the Delaware-based startup company was combined with a number of Democrat-backed economic development initiatives, including the construction of a third Chicago-area airport. Gov. Pat Quinn signed the legislation on Thursday.
“It’s really a shining example of what we can do when we work across the aisle,” Brown said Thursday.
Cronus has said it is looking to build a $1.1 billion production facility in either Tuscola or in Mitchell County, Iowa. Illinois’ package is worth an estimated $14.5 million.
More…
A spokesman for the newly formed company said the signing of the law will start the clock ticking on a final decision.
“We expect to make a site selection within 30 days after that,” spokesman Dave Lundy said in an email.
Iowa officials have not revealed if they are offering Cronus a similar package. But state economic development officials indicated this week that they think the Mitchell County site is still an option for the company.
“We’ve not heard that we aren’t in the running,” said Tina Hoffman, spokeswoman for the Iowa Economic Development Authority.
Iowa committed a $240 million fortune to attract a similar fertilizer plant to that state last year. The Chicago Tribune editorial board used that goofy over-payment to bash Illinois, even though Illinois withdrew from the bidding when Iowa overplayed its hand, and Gov. Terry Brandstandt poked his finger in our collective eye at the time. So an Illinois win on this plant would be sweet, and relatively cheap, considering.
* Also in the bill…
Amends the property tax code so farmland property taxes are based on the income potential for the individual piece of farmland, rather than on a statewide average productivity of all farmland.
Assists with the development of the Port of East St. Louis along the Mississippi River.
posted by Rich Miller
Friday, Jul 26, 13 @ 11:05 am
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Chicago area unemployment is about 10% according to today’s Tribune. Quinn’s bill will create thousands of construction jobs as McPier builds 2 new hotels and renovates Navy Pier, the top tourist destination in the midwest.
Even if every TIF district in the city was declared surplus and the cash swept up for operations, it wouldn’t put a dent in the CPS budget problem.
The CTU wanted Quinn to veto the bill, the Chicago Federation of Labor wanted him to sign it. Quinn did the right thing to create some much-needed jobs in Chicago.
Comment by 47th Ward Friday, Jul 26, 13 @ 11:21 am
How’s MidAmerica St. Louis Airport working out?
If this politicians’ pipe dream ever really gets built, the plowing under of thousands of acres of productive farmland, the increase in sprawl and carbon and other greenhouse gas emissions, and the throwing away of money better invested in true high-speed passenger rail service will be viewed as one of our era’s biggest idiocies.
Comment by Northsider Friday, Jul 26, 13 @ 11:23 am
I’ve come to realize that the powerful, in the whole education establishment, are living in an alternate universe.
Is there a good example of a world-class airport succeeding solely on cargo operations? That’s PQ’s argument, but I don’t see it.
Comment by walkinfool Friday, Jul 26, 13 @ 11:34 am
The state’s ponying up $71 for more land purchases and then we’ll find out if there’s private investment interest? Or whether the airport will get FAA approval?
We know the airlines don’t want it.
The airport is like Rasputin — it just won’t die.
Comment by wordslinger Friday, Jul 26, 13 @ 11:34 am
how about they complete the high speed rail, setup freight lines with a branch to capital area airport, and expand the springfield airport for the cargo shipping services, help support the airport at the capital, maybe get some jet service in, and use the highspeed rail to move the cargo out of spfld to chicago, st louis etc.
Comment by Ghost Friday, Jul 26, 13 @ 11:50 am
If it is built for cargo shipping, it would result in a massive increase in warehouses along I-57 and keep trucks that go to and from the east and south away from Chicago and tying up the existing highway network………..at least that’s the theory.
Comment by Darienite Friday, Jul 26, 13 @ 12:01 pm
Northsider — You got it. This thing will be miles of concrete with a weekly flight to Myrtle Beach.
Comment by Out Here In The Middle Friday, Jul 26, 13 @ 12:03 pm
Sounds like this project could end up being similar to Boston’s big dig.
Comment by foster brooks Friday, Jul 26, 13 @ 12:11 pm
The City lays off thousands of workers and then gives the money away to private companies on the speculation that the boondoggle might create nearly as many jobs as the layoffs. Truly voodoo economics. Too bad the media just mindlessly reads Rahm’s press releases.
Comment by qwerty Friday, Jul 26, 13 @ 12:12 pm
I guess Adam Brown get tired of living in Decatur?
Comment by Marty Funkhouser Friday, Jul 26, 13 @ 1:01 pm
“Is there a good example of a world-class airport succeeding solely on cargo operations?”
‘world-class’, obviously not. But it needn’t be ‘world-class’ to be successful–MDW is a fancy bus station, but Chicago is much better off for having it. And the region *might* be better off with a cargo-only (and general aviation, I’m sure) airport in the context of an intermodal distribution hub, but I question the location for that purpose.
Think the play has to be trying to pull FedEx and UPS business away from Rockford and Indy. Possibly also co-location for a bigger express shipper like Amazon (post-Federal internet sales tax legislation, of course).
Comment by Chris Friday, Jul 26, 13 @ 1:04 pm
I keep saying this and I’ll say it again: if you want to make a more on TIFs, go big and launch a drive to cancel them altogether. It’s the difference between one-time revenues and recurring ones.
Plus the sweep ordinance in the Chicago council only goes after the “surplus,” which would just mean that there would be a huge rush to encumber fund balances with new projects if it was even close to passage.
Why do I have to lay this out? It’s much more realistic than a financial transaction tax on an electronic exchange and/or “renegotiating” bond deals.
Comment by Will Caskey Friday, Jul 26, 13 @ 1:06 pm
Actually, regarding farmland, here’s what is in SB 20 (now 98-0109):
“Amends the Property Tax Code. In a Section requiring the Department to certify to each chief county assessment officer the equalized assessed value per acre of farmland for each soil productivity index, provides that any increase or decrease in the equalized assessed value per acre by soil productivity index shall not exceed 10% from the immediate preceding year’s soil productivity index certified assessed value of the median cropped soil, with a $5 per acre deduction.”
Here’s what it looks to mean:
1) Before, the IL DOR submits an annual list of $$$ per acre to be applied to ‘Cropland’ based upon a statewide Soil Productivity Index (from 130 at the high down to something like 72. The better farmland pays a lot more per acre.
2) This changes that process to be limited to a max. 10% increase in valuation over the prior year (farmland these days is really increasing), *minus* $5 per acre (that last part is new).
Be interested to see how that ‘new’ adjustment works out in practice. Rural tax districts looking forward to an increase in their Agricultural portion of their property tax base may be disappointed.
Oh well…
Comment by Judgment Day (Road Trip) Friday, Jul 26, 13 @ 1:10 pm
You don’t have to be in the CTU to recognize this is a bad bill for the citizens of Illinois.
We already have an airport no one wants. Rockford has plenty of cargo and for that matter passenger capacity. Navy Pier may be a boondoggle, but it is not clear.
Comment by Plutocrat03 Friday, Jul 26, 13 @ 1:13 pm
Build an airport no viable business model supports, and they will come — PQ
Heck, they won’t use Gary’s airport now, which is much closer than “Monee Municipal Aerodrome”.
So why are taxpayers paying for DePaul’s stadium again???
Comment by CrookCounty60827 Friday, Jul 26, 13 @ 1:25 pm
In other news, Detroit’s emergency manager intends to go ahead with a $444 million dollar taxpayer financed stadium for the Red Wings.
http://money.cnn.com/2013/07/26/news/economy/detroit-bankruptcy-arena/index.html
Comment by Bill White Friday, Jul 26, 13 @ 1:29 pm
The CTU spokeswoman once more gives us tremendous, ahem, insight on fiscal matters. No doubt these “skills” honed by that time at Budget.
Look, there is a surplus in many of those funds. It may not have solved the problem but it would have helped. How many teachers could have been retained with that money?
Comment by low level Friday, Jul 26, 13 @ 1:33 pm
Low level, the last time the city declared a surplus in the TIF funds (in 2009 I think), they managed to get about $90 million for CPS in a one-time lump sum. That might save some teachers’ jobs next year, but what about the year after that and beyond?
Consider $90 million vs. a CPS pension payment this year of $613 million. TIFs are controversial but major TIF reform is not going to solve CPS’ long-term financial problems.
Comment by 47th Ward Friday, Jul 26, 13 @ 1:39 pm
$71M? How much land are they buying? You could double the size of Midway and that’s $47k/acre, far above the $11k for prime farmland. They’d need to be buying some 6400 acres to reach that $11k figure which is approaching the size of O’Hare.
Comment by thechampaignlife Friday, Jul 26, 13 @ 1:49 pm
-assist the Port District of East St.Louis-
the what?
Comment by Arthur Andersen Friday, Jul 26, 13 @ 2:34 pm
47th Ward- Dude, trust me . I’m definitely not an anti TIF crusader. Most people don’t know what they are talking about with them. Not a long term fix, no question. It def would be a single draw down again, but I do know many of those funds have significant surpluses in project areas where all notes or borrowing against have been retired.
You know what it is, truthfully? 2 things. One, Rahm has come in with an “it’s my way or the highway with CPS”. Two is his CPS spokeswoman. She assumes some kind of budgetary expertise at times when all she is a hack. Always was, always will be. That was the emphasis of my post- definitely not to get on the side of the Ben Javorsky’s of the world!!
Comment by low level Friday, Jul 26, 13 @ 2:59 pm
I’ve worked in the South Loop for years and seen the gradually increasing number of tourists coming into the city via Amtrak/Metra. Each one is a walking wallet ready to contribute to the local economy. If the new arena can enhance visitor head count, go for it.
The third airport is a different story. But, let the investors figure it out.
CTU seeks to enhance its pensionocracy, regardless of community economic progress.
Comment by Cook County Commoner Friday, Jul 26, 13 @ 3:03 pm
The real legislative star on the fertilizer plant was Chapin Rose he had the courage to put aside partisanship and reach out to the Senate President, Speaker and Governor’s office to move the bill. It would have been easy for it to have been left out of the big development bill, but Chapin knows his place and works with the supermajority well enough.
Comment by Thespian Friday, Jul 26, 13 @ 3:49 pm