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* Tribune…
Housing advocates and other community activists — including someone in a “giant Alexa costume” — are going to City Hall on Tuesday, calling on Amazon to help people living in whichever city gets the giant company’s new headquarters.
Members of the Grassroots Collaborative are scheduled to hold a news conference to press for community involvement in Amazon’s planning. They want living wages in all jobs created by the company, as well as affordable housing guarantees to help stave off gentrification that they warn could push residents out of working-class neighborhoods as thousands of Amazon workers move in.
“This setup is a losing deal for everybody but Amazon,” the group said in a news release Monday. “Instead of trying to win the race to the bottom, residents in cities bidding for Amazon are coming together to collectively demand that wherever Amazon HQ2 ends up it actually benefits the people who live and work there.”
* Greg Hinz…
Chicago voters like the idea of trying to lure Amazon’s second headquarters here, at least in the abstract. And they give Mayor Rahm Emanuel some credit for leading the effort.
That’s the gist of a new poll released today that found, as in an earlier survey, voters see some benefits to chasing after a big corporate prize so long as you’re not hitting them over the head with the potential cost. […]
Asked flatly if they back the city’s efforts to win Amazon, which promises to bring up to 50,000 jobs to the winning city, 48 percent said the bid has their strong support, with another 27 percent saying they somewhat support the move. By comparison, just 12 percent said they strongly or somewhat oppose, with 13 percent saying they don’t know.
Support was greatest among Gen Xers (84 percent), and somewhat stronger among African-Americans (81 percent) then Latinos (78 percent) or whites (73 percent). […]
The survey found somewhat stronger backing for the HQ2 bid than an earlier poll I reported on last month. But that poll, unlike this one, at least mentioned that incentives are being offered to Amazon, though it failed to mention the reported figure: $2.2 billion, mostly in state job credits.
The latest poll, including methodology, is here. The earlier poll Greg mentioned is here.
* Related…
* Brady vs. Pritzker on Amazon: Illinois Senate Republican leader Bill Brady of Bloomington said he believes Bezos will be concerned about higher tax rates, contending that J.B. Pritzker’s call for a graduated income tax could doom Chicago in the contest… “I really believe, if what I read about Jeff Bezos and his philosophy at Amazon is the only thing that would keep them from coming here would be the J.B. Pritzker tax increase,” Brady said.
* Debate over warehouse job quality rages on
* Who’s going to win the Amazon hustle?: New York University marketing professor Scott Galloway thinks all the speculation about the new site is moot at this point. “The cake is baked,” he said, and the winner is one of three D.C.-area sites. After all, D.C. is where Bezos recently acquired a huge house, where he and his family might want to spend time, where the political action is, where decisions will be made about the company’s future. And given that President Donald Trump has expressed special animus for Amazon, wouldn’t it be better to be a player where the decisions are made? “The only thing standing between Amazon and a trillion-dollar market capitalization is regulation,” said Galloway, dubbed the Amazon whisperer after his lucky or brilliant prediction that Amazon would buy Whole Foods last year (it did a few weeks later). “The ultimate prophylactic against regulation is to be the local boy in D.C.”
* Chicago’s Amazon bid video released, William Shatner narrates
* What the US post office really gets from Amazon
posted by Rich Miller
Tuesday, Apr 10, 18 @ 9:47 am
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I don’t dispute DC / NoVA is the clear front-runner, but the whole “Jeff Bezos bought a big house there” seems like a weak argument. Jeff Bezos could buy a large tropical island, and it would be a rounding error in his virtual checkbook.
Comment by ZC Tuesday, Apr 10, 18 @ 9:49 am
===seems like a weak argument===
It’s actually one of the biggest tells in the corporate sweepstakes game.
Comment by Rich Miller Tuesday, Apr 10, 18 @ 9:51 am
Quite frankly Trump / the modern day Republican party might be Chicago’s last best hope of landing HQ2. Virginia at least certainly -seems- “stable’ from Amazon’s perspective, but after Georgia / Delta, they’ve got to be at least a little concerned about planting themselves down in VA, and then seeing the GOP take back unified control of Richmond.
Comment by ZC Tuesday, Apr 10, 18 @ 9:52 am
–I don’t dispute DC / NoVA is the clear front-runner, but the whole “Jeff Bezos bought a big house there” seems like a weak argument.–
Corporations move where the CEO/owner wants to live. Same as it ever was.
Amazonmania is a sideshow. Illinois government should focus on the basics that already make it a top state in the country for relocations and expansions.
https://capitolfax.com/2018/03/05/rauner-admin-touts-positive-review-from-site-selection-magazine/
Comment by wordslinger Tuesday, Apr 10, 18 @ 10:01 am
==the only thing that would keep them from coming here would be the J.B. Pritzker tax increase==
If Bezos isn’t working out of HQ2, any tax increase wouldn’t impact him personally.
Comment by City Zen Tuesday, Apr 10, 18 @ 10:02 am
Pretty dumb poll. Only one poll matters - Jeff Bezos. Sure he loved all of JB’s tax talk
Comment by Sue Tuesday, Apr 10, 18 @ 10:02 am
Dear Senator Brady: The top income tax rate in Virginia is 5.75% on everyone making more than $17K per year. Most Amazon workers would pay more in taxes in Virginia than they would in Illinois, even under a progressive tax.
As for the politics of it, I don’t know that locating in Virginia really gets you all that much, compared to locating in Chicago which likely gets you just about the entire Democratic Party.
I think the big weakness for Illinois is the lack of bipartisanship, which is why Brady’s finger-pointing is so infuriating.
Comment by For Pete's Sake Tuesday, Apr 10, 18 @ 10:04 am
How about 2.2 billion in state aid for Sears? It’s the original Amazon, employs a lot of people, needs help, and it’s already here.
Comment by Da Big Bad Wolf Tuesday, Apr 10, 18 @ 10:05 am
==Most Amazon workers would pay more in taxes in Virginia than they would in Illinois, even under a progressive tax.==
Virginia’s effective property tax rate is 3x lower than Illinois. I would trade VA’s income/property tax structure for ours any day.
Comment by City Zen Tuesday, Apr 10, 18 @ 10:16 am
=How about 2.2 billion in state aid for Sears? It’s the original Amazon, employs a lot of people, needs help, and it’s already here.=
There would be absolutely no return on that investment.
Comment by Pundent Tuesday, Apr 10, 18 @ 10:17 am
Given Bezos/Trump relationship and the disdain this Mayor has for the President. Maybe that works in his favor. And if there were ever a state a company could manipulate and take advantage of…Welcome to Chicago, Illinois.
Comment by A guy Tuesday, Apr 10, 18 @ 10:17 am
–Virginia’s effective property tax rate is 3x lower than Illinois.–
That’s not how multiplication works. Do you mean a third?
Comment by wordslinger Tuesday, Apr 10, 18 @ 10:18 am
I agree that Chicago and Illinois should work on what makes Chicago attractive to businesses in the first place—education, infrastructure, transportation, diversity, cultural attractions, amenities, etc.
I am heartened to hear that crime has gone down in Chicago, in part because technology is used to reduce it. Kudos to all who are successfully implementing this.
Marijuana legalization would also be an economic boon and should help reduce crime and unburden many who get the short end of the criminal justice stick—people in low-income communities. People aren’t killing each other over alcohol turf and illegal sales.
Comment by Grandson of Man Tuesday, Apr 10, 18 @ 10:21 am
HQ2 is going to be in Northern Virginia, so Illinois politicians should devote their energy elsewhere.
Comment by Chicagonk Tuesday, Apr 10, 18 @ 10:52 am
good to spend time showing the business world what Chicago can offer even if Amazon does not come here. Isn’t some other Tech company coming with hundreds of jobs if without fanfare?
Comment by Amalia Tuesday, Apr 10, 18 @ 10:55 am
“The top income tax rate in Virginia is 5.75% on everyone making more than $17K per year. Most Amazon workers would pay more in taxes in Virginia than they would in Illinois, even under a progressive tax.”
Incorrect, Virginia is ranked #27 in state and local tax burden. Illinois is #5.
Comment by Ron Tuesday, Apr 10, 18 @ 11:24 am
==There would be absolutely no return on that investment.==
Then you think giving 2.2 billion to Amazon would be am equally bad investment?
Look I’m not crazy about a government giving up revenues/gifting to a private corporation, but I guess I’m in the minority. If giving up tax revenues is a good thing to do to gain jobs, then giving up tax revenues to prevent job losses is an equally good thing to do.
Comment by Da Big Bad Wolf Tuesday, Apr 10, 18 @ 11:40 am
===…given that President Donald Trump has expressed special animus for Amazon, wouldn’t it be better to be a player where the decisions are made?===
It would probably be best for Amazon if they located their headquarters in a Trump holding anywhere.
Comment by PublicServant Tuesday, Apr 10, 18 @ 12:02 pm
Sears is beyond repair. They won’t last but a few more years.
Comment by Ron Tuesday, Apr 10, 18 @ 12:11 pm
==Sears is beyond repair.==
Then they should’ve have outsourced the manufacture of Craftsman tools.
Comment by City Zen Tuesday, Apr 10, 18 @ 12:42 pm
“How about 2.2 billion in state aid for Sears? It’s the original Amazon, employs a lot of people, needs help, and it’s already here.”
EDGE credits are useless to companies carrying net losses. Illinois could give them $10 billion in EDGE credits and they’d never be used.
Comment by ihpsdm Tuesday, Apr 10, 18 @ 1:10 pm
Sears has been liquidating for years. The crash of commercial real estate in 2008 delayed some of it for a while. They unload when the price is right.
Comment by wordslinger Tuesday, Apr 10, 18 @ 1:13 pm
=Then you think giving 2.2 billion to Amazon would be am equally bad investment?=
No. I don’t think you understand how EDGE credits work. The credit is a percentage of wages paid to Illinois workers and is used on the IL-1120 against corporate income tax. The credit is contingent on jobs/wages to Illinois workers.
Comment by ihpsdm Tuesday, Apr 10, 18 @ 1:17 pm
Whew, a busy evening.
EGDE credits are roughly half of the 2.2 billion offered. I was referring to the general concept of spending taxpayer money to encourage companies to move here. What about the companies already here?
Even if Amazon doesn’t move here we have shown our hand,unfortunately.
And if we decide it is a good thing to do, why not use that money burning a hole in our pocket to prop up struggling local companies? Like I said before I’m not a fan of this but everyone else is. And this is a democracy.
State troopers drive cars. Cars need tires, Sears sells tires, buy tires from Sears. Smart procurement is the way to go.
Comment by Da Big Bad Wolf Wednesday, Apr 11, 18 @ 5:39 am
It would cost the state nothing if Amazon came and utilized EDGE credits. These are taxes we wouldn’t be collecting anyway.
Comment by Ron Wednesday, Apr 11, 18 @ 7:15 am
It would cost the state nothing? No. Companies consume services and use infrastructure. If Amazon moves in it will use services and infrastructure. If it doesn’t pay, then everyone else has to pay Amazon’s share.
Comment by Da Big Bad Wolf Wednesday, Apr 11, 18 @ 7:46 am
What state services does Amazon use?
Comment by Ron Wednesday, Apr 11, 18 @ 8:11 am
50,000 employees paying re taxes, sales taxes, car registration fees
Comment by Anonymous Wednesday, Apr 11, 18 @ 8:12 am
Roughly half of the incentive package is state EDGE grants. Let’s look at state services.
To keep the Amazon Headquarters and their employees safe from robbery, arson and physical harm the state has a criminal justice apparatus. This includes courts, electricity and heat for the building, the people who work in the courts, i.e.judges, district attorneys, bailiffs, janitors and then there are the state police and the bus that transports prisoners from jail to court and the bus driver. It also includes parole officers, social workers, prisons, prison guards, prison nurses, etc. All paid for by taxpayers.
Then there is the highway apparatus, that allows Amazon headquarters to get supplies and employees to come and go to it. There is the highway itself, the raw material, machines and people who work on it, and the people who plan it, minuteman, salt spreaders and the drivers, the people who remove debris and dead animals, the people who test new drivers, etc. Paid for by state taxpayers.
There are food inspectors so Amazon doesn’t have lethal food in their cafeteria.
Do I have to keep on going? Infrastructure and services is a more concise way to say this.
Comment by Da Big Bad Wolf Wednesday, Apr 11, 18 @ 11:27 am