Economic Development

Expansion of O’Hare

Mayor Daley’s decision to expand O’Hare offers a prime example of the inequity and corruption that plagues economic development in Chicago: money is ill-spent and goes to the people who need it least. The O’Hare Modernization Plan (OMP)Mayor Daley initiated stalled once money dried up and the major airlines refused to support such an ill-conceived project.more

Chicago 2016 Olympics

Mayor Daley looked at the 2016 Olympics bid as a way to escape financial crisis, though questions continued to surround who the deal would benefit and if there would be sufficient oversight. Now that the bid has fallen through, however, it remains to be seen whether Mayor Daley will return to the economic reality facing Chicagoans.more

Tax Increment Financing

Under Illinois state law, TIFs are used to address blight by helping local companies preserve and create employment opportunities for Chicago residents.

A significant portion of TIF money has gone to promote growth for the rich, however, such as the $25 million offered to United Airlines to move its operational center downtown. In addition, current measures fail to insure that companies that receive incentives continue to promote and preserve the number of jobs they agreed to in the TIF stipulations.

Alderman Flores and Waguespack introduced the “TIF Sunshine Ordinance” in 2009 in order to promote transparency and accountability. The provision included the creation of a website to inform Chicago residents of the uses of TIF funds. Unfortunately, Progress Illinois gave the TIF transparency site a “C -”. Although Chicago is facing almost a half billion budget shortfall for 2010, the most recent documents for 2008 indicate that the city ended the year with $1 billion in aggregate unspent TIF funds.more

World Business Chicago

World Business Chicago (WBC) is a non-profit economic development corporation that functions as a public-private partnership, jointly funded by the City of Chicago and the private sector. Many of the individuals who sit on the board of WBC represent companies that have received staggering sums of city money throughout the years. Terrence Duffy, for instance—the Chairman of CME Group, otherwise known as the Chicago Mercantile Exchange, which merged with the Chicago Board of Trade—sits on the WBC Board and shed some 400 jobs while still receiving $40 million in assistance from the city in the process.more

Small Business in Chicago

In Chicago, 1,991,173 individuals are employed by small businesses, a significant portion of the city’s 2.85 million people. Although many Small Business Owners (SBO) are expanding their investments in spite of the economic crisis, it is not easy to do so in Chicago. The amount of investment deals made in Illinois went from 23 in 2008 to 7 in 2009. In dollar amount, this represents a decrease from $150 million to $36.3 million.

The permit process for SBOs is complicated as well, and efforts to help have stalled. In 2008, the state planned to contribute $75 million of investment dollars to start-up seed money for new business, but the provision failed to pass, as did a tax-credit plan for start-ups. That said, both the state and non-profit agencies are doing what they can to provide loans to business owners in need.

In addition, Chicago remains hostile to street vendors, making it nearly impossible for vendors to apply for and receive a license.more

Green Jobs

Potential hope for economic recovery can be found in the green job industry. A Pew Charitable Trust study reports that between 2006 and 2008, “Illinois had more than 2,000 green businesses, nearly 30,000 green workers in 2007, and attracted over $108 million in clean energy-related venture capital.” A $100 billion investment in green jobs over the next two years could result in the creation of some 83,710 jobs.more