Capitol Fax.com - Your Illinois News Radar

* UPDATED x1 * Report: Impasse kills lucrative Thompson Center deal

Posted in:

Illinois
Updated Posts

Gov. Bruce Rauner has rejected a new offer from Chicago Mayor Rahm Emanuel to clear the way for construction of an enormous, 2 million-square-foot office tower where the aging Thompson Center now stands, sources close to the matter in both Chicago and Springfield are reporting.

Insiders say Rauner had two reasons: He wanted a free hand to sell the state-owned property for an even larger building, one approaching the size of the Willis Tower. And he was unwilling to grant Emanuel’s requests to, in exchange, sign a bill dealing with city pensions, arguing that the mayor instead needs to lean on House Speaker Michael Madigan to make concessions on broader statewide matters. […]

The deal would have allowed Rauner to dispose of the Thompson site, perhaps netting the $300 million the governor wants to shore up his budget, putting the Loop site back on the taxable property rolls. Emanuel would have won final approval of a plan designed to refinance and put on stronger footing two city pension funds that cover municipal workers and laborers.

But the deal didn’t get done—even though House GOP Leader Jim Durkin personally intervened in recent days in an effort to reach a compromise. And now, “not much is going to pass until” a broader deal on the budget, taxes and other structural changes Rauner wants is agreed upon, says one top state government insider.

Go read the rest. Unreal.

*** UPDATE *** Sun-Times…

The Rauner administration said Thursday the city’s offer wasn’t a “fair trade,” and they issued a counter-offer to instead encourage Senate Democrats to send over a gun bill that has been held since it was passed by both chambers last month.

The administration said sending over the gun bill would be a show of “good faith” and would benefit the city. The city said they’d get back to the Rauner administration about their offer.

So, why wouldn’t the city agree to release the gun bill that the mayor fought so hard to pass? Something doesn’t seem quite right here.

posted by Rich Miller
Thursday, Jun 22, 17 @ 1:07 pm

Comments

Selling the Thompson Center has never been a good idea in my opinion, especially because no one had outlined where the state employees will be relocated and who is going to profit from those leases. The $300 million, give or take, that they’d net from the sale (wildly optimistic btw), is a drop in the bucket. It’s a one-time payment that needs to be off-set by the amount of new office leases over decades. No way was this a good idea fiscally, so I’m not surprised it collapsed.

Comment by 47th Ward Thursday, Jun 22, 17 @ 1:13 pm
“…for an even larger building, one approaching the size of the Willis Tower.”

Right next to the CTA Loop tracks?

Comment by Terry Salad Thursday, Jun 22, 17 @ 1:16 pm
–$300 million to shore up his budget.–

Is that a gag?

If not, some remedial math and English are in order.

Who does Rauner have in mind to build a Junk Tower as tall as the Sears?

Comment by wordslinger Thursday, Jun 22, 17 @ 1:19 pm
Never good “enough” is the Rauner mantra. It’s always “little rather, more leverage, more here, more there”

Rauner had triangulation of Madigan. Rauner had triangulation with Radogno and Cullerton with TWO Grand Bargain attempts, forcing Madugan.

Rauner’s Rules: 100% of his wants, nothing less, leverage it for other stuff too. Otherwise, no deal. That’s “this”. That’s Rauner.

Comment by Oswego Willy Thursday, Jun 22, 17 @ 1:19 pm
This guy just can’t recognize victory.

Comment by Wow Thursday, Jun 22, 17 @ 1:20 pm
There is NEVER going to be a deal with Rauner on anything.

The ONLY way anything gets done is if the IGOP Legislators abandon Rauner and create a veto-proof majority with the D’s. Right now, the IGOP legislators are the ones with some leverage … as long as they don’t over play their hand.

Heck, at this point, Madigan should pick out a few, promise not to run a D in that district, and even offer to help fund them if Rauner primary’s them.

Comment by RNUG Thursday, Jun 22, 17 @ 1:25 pm
Rauner’s Rahm obsession lives on.

== (Rahm) needs to lean on Madigan ==

Wake up, Raunerites. Rahm’s influence over Madigan is very limited. If push came to shove, how many House Dems would side with Rahm and against Madigan? Not enough to matter.

Comment by Roman Thursday, Jun 22, 17 @ 1:26 pm
“…for an even larger building, one approaching the size of the [Sears] Tower”?

Geez. Between his death feud with Madigan and this, Rauner’s motive becomes more obvious…

Comment by Northsider Thursday, Jun 22, 17 @ 1:26 pm
Agree with RNUG. Rauner doesn’t know a good thing when he sees it. He is greedy and holds out for more. That’s why we don’t already have a budget. Maybe Madigan can wean a few GOP members off of their addiction to Rauner’s money. I have doubts that we’ll ever get a budget unless a few GOP members show some courage like McCann did.

Comment by The Dude Abides Thursday, Jun 22, 17 @ 1:36 pm
Don’t sell the building, give it away. But, the builder has to provide xx,000 square feet of office space to the state, lease free, for 20 years.

Comment by Casual observer Thursday, Jun 22, 17 @ 1:36 pm
==- 47th Ward - Thursday, Jun 22, 17 @ 1:13 pm:
Selling the Thompson Center has never been a good idea in my opinion, especially because no one had outlined where the state employees will be relocated and who is going to profit from those leases. The $300 million, give or take, that they’d net from the sale (wildly optimistic btw), is a drop in the bucket. It’s a one-time payment that needs to be off-set by the amount of new office leases over decades. No way was this a good idea fiscally, so I’m not surprised it collapsed.==

From a fiscal perspective this is a good idea. The Thompson Center has been neglected for decades and there are several mechanical units ready to blow. It could be inhabitable at any time. The cost of operating the building is currently more per square foot than most leases in Chicago. Engineers estimate it will cost nearly $600M over the next 5 years to get it in shape. Plus, selling it and getting that property back on the property tax rolls will result in more sales tax for the State and property taxes for the city. The bill requires the constitutionals to be moved to the Bildandic, which isn’t exactly utilized well right now. Take all of this into consideration - the deferred maintenance, the cost of maintaining the building, sale price, benefits of sale - it is likely a better deal for the taxpayers to cut and run.

Comment by not again Thursday, Jun 22, 17 @ 1:42 pm
@47th Ward,

Don’t know who gets the money but I’ve heard that several agencies will be going into https://en.wikipedia.org/wiki/Bilandic_Building and have even seen some floor plans for the build outs with a target date of December.

Comment by Kevin Highland Thursday, Jun 22, 17 @ 1:44 pm
Whoever said this whole mess is over a $1 bet about busting the unions or getting rid of Madigan, I think a third bet possibility was just identified: erecting the biggest building in Chicago.

Comment by RNUG Thursday, Jun 22, 17 @ 1:45 pm
…for an even larger building, one approaching the size of the [Sears] Tower”?
Approaching? Almost certainly bigger: Rauner’s xxxx Has to be bigger than Trump’s (or anybody else’s). It has become obvious to me that Rauner has major inadequacy problems…

Comment by downstate commissioner Thursday, Jun 22, 17 @ 1:46 pm
Worst. Governor. Ever. Governor Junk is all or nothing. That’s why he’s 2 1/2 years in with nothing but a corporate bailout to show for it.

Comment by Chicago Cynic Thursday, Jun 22, 17 @ 1:46 pm
RNUG, i have been wondering about that for a while. Maybe Rauner doesn’t want any agreement. i can’t see much evidence that he does. Maybe he is afraid to stick his neck out and sign a compromise. Maybe he’s set the bar too high, and raised supporter’s expectations too high. Many of you hav been around here, and around him for a long time–I wonder if any kind of compromise agreement would get Rauner’s signature?

Comment by Molly Maguire Thursday, Jun 22, 17 @ 1:46 pm
Now can we drop the “both sides are at fault” stuff? Can anyone imagine the Speaker not making that deal if presented to him or at least not killing it? Seriously, these two individuals, the Speaker and the Governor are not equal when it comes to making demands in negotiations. To keep saying that it is a clash between the two without recognizing the Gov’s extreme position and inability to waiver from that position is keeping us budgetless is wrong. To me, this has been obvious for some time, I wonder why Rich says this is “unreal”. No, it really is him.

Comment by ADKvoa Thursday, Jun 22, 17 @ 1:46 pm
You cannot read this story and possibly come away believing Rauner is a guy you can cut a deal with. He’s not interested in policy wins, he only wants full capitulation.

Comment by ILPundit Thursday, Jun 22, 17 @ 1:46 pm
Why sell the Thompson Center when the state still owns Sox Park? Sell that first, and the county can then collect millions on property taxes as well.

Comment by SammyG Thursday, Jun 22, 17 @ 1:54 pm
We hammered and shaken yet?

– MrJM

Comment by @MisterJayEm Thursday, Jun 22, 17 @ 1:58 pm
Are you all familiar with the blog/meme Reasons My Son Is Crying? This could be spun off for Rauner-

Reasons My Governor Won’t Compromise:

“Cullerton said he’s open to reasonable reforms, but I’m the most reasonable person I know and he won’t agree with everything I say, even when I say different things to him one day apart.”

“Madigan looked at the bill first, now it isn’t special.”

“It’s too warm in here, it reminds me of how hot Chicago can get in the summer, and Rahm said he was my friend, now he isn’t my friend, and I’m SAD.”

Comment by Moon Thursday, Jun 22, 17 @ 2:01 pm
Dude, it’s all a bad act by Rauner.

He’s a grievance peddler; bad people are preventing him from doing good things. The deals always fall short, the mess is all their fault.

In reality, he’s accomplishing much of what he wants via the Social Darwinist method.

Comment by wordslinger Thursday, Jun 22, 17 @ 2:06 pm
===Engineers estimate it will cost nearly $600M over the next 5 years to get it in shape.===

Interesting. I’d love to read that report. That seems very high to my untrained eyes.

Comment by 47th Ward Thursday, Jun 22, 17 @ 2:10 pm
I have to agree that keeping the building makes no sense. It’s design never made any sense and it’s current state of disrepair make it’s demise that much more necessary. Having said that, in the long run I think it would make more sense to build another building. One which is designed to house a large number of government office workers and be accessible to the public. We still have too many state employees working out of rented space, throughout the city/suburbs who could be for efficiently housed in one place.

RWP

P.S. I could be convinced that it is less expensive to house those workers in a non-state building if someone truly had some numbers to show it would save money over the long haul, but the “long haul” really has to be over 20 years.

Comment by RWP Thursday, Jun 22, 17 @ 2:31 pm
===Engineers estimate it will cost nearly $600M over the next 5 years to get it in shape.===

Interesting. I’d love to read that report. That seems very high to my untrained eyes. ‘

Sounds fishy to me too. Seems to me if that were the case we’d be talking about $600M of deferred maintenance, not just $100M.

Comment by Skeptic Thursday, Jun 22, 17 @ 2:31 pm
It is only a lucrative deal if they have a buyer for the site with a plan to build. If there is no buyer yet, no harm in stalling.

Comment by Last Bull Moose Thursday, Jun 22, 17 @ 2:49 pm
This is an even grander display of his total incompetence then buy attack ads and giving the “unity speech.
GovJunk could unload an awful burden grab some cash and avoid the building being repurposed as a county jail annex.

Comment by Annonin' Thursday, Jun 22, 17 @ 3:18 pm
–This is an even grander display of his total incompetence then buy attack ads and giving the “unity speech.–

You guys still think it’s “incompetence,” huh? Unbelievable.

If you can’t spot the chump the first time the deal goes round, you’re it.

Comment by wordslinger Thursday, Jun 22, 17 @ 3:33 pm
The state really needs to sell that building.

Comment by Ron Thursday, Jun 22, 17 @ 3:39 pm
Again: Rauner killed the deal because he only got 90 percent of what he wanted.

Comment by Juvenal Thursday, Jun 22, 17 @ 4:56 pm
Oh well. At least it wasn’t a live hostage.
As an aside, Big Jim is probably breathing easier.

Comment by Winnin' Thursday, Jun 22, 17 @ 7:03 pm
At this point, as big a boondoggle as the sale has become, someone should introduce a bill to rename the JRTC to the BVRC.

Comment by RNUG Thursday, Jun 22, 17 @ 7:41 pm