Economic Development and City Planning News: 09/10

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September 2010 :: Volume 70

Chicago By The Numbers

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Thriving Business Community Will Be One of Mayor Daley’s Legacies
Since Mayor Daley took office 21 years ago, he has coupled the city’s unmatched attributes with a pro-business environment to build a solid platform on which the community and government work together to make Chicago a premier city for business. As Chairman of World Business Chicago’s Board, Mayor Daley has brought the public and private sectors together to spur and accelerate economic growth.

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Strengthening Chicago’s Business Ties at the Shanghai World Expo
Chicago’s business and civic leaders are participating in the rare opportunity to showcase Chicago to the world during the World Expo in Shanghai, China, an event expected to bring more than 60 million attendees over six months. To kick-off “Chicago Days” a tribute to the city, World Business Chicago (WBC) hosted a VIP reception for more than 150 guests at the USA Pavilion, highlighting Chicago’s presence in Shanghai.

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Chicago's Tech Innovators Applauded; Mayor Appoints Committee to Advise on Infrastructure Demands of Explosive Tech Sector Growth
Mayor Richard M. Daley came together with Chicago’s technology leaders, pledging their continued commitment to making Chicago the top destination for technology business. At a press conference at the home to many of Chicago’s recent technology successes, the Mayor announced the creation of the Mayor’s Committee on Technology Infrastructure.

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Thriving Business Community Will Be One of Mayor Daley’s Legacies

Since Mayor Daley took office 21 years ago, he has coupled the city’s unmatched attributes with a pro-business environment to build a solid platform on which the community and government work together to make Chicago a premier city for business. As Chairman of World Business Chicago’s Board, Co-chaired by Aon Benfield Corporation Executive Chairman Mike O’Halleran, and composed of some of the city’s influential business leaders, Mayor Daley has brought the public and private sectors together to spur and accelerate economic growth.

While Mayor Daley has decided not to run in the 2011 election, he has certainly paved the way for World Business Chicago to continue to build upon our successes – stemming from Boeing’s corporate headquarters move nearly 10 years ago, to MillerCoors’ relocation in 2009, to the recent explosive growth of Chicago technology start-ups.

Since WBC’s creation nearly 11 years ago, the business community has worked closely with the Mayor in order to lay the foundation and build the ultimate global business destination. And, that foundation is strong: in August Chicago climbed two spots to #6 on the 2010 Global Cities Index, a measure of a city’s influence on and integration with global markets, culture, and innovation, assembled by Foreign Policy Magazine, A.T. Kearney, and The Chicago Council on Global Affairs.

When working with companies that are considering Chicago for relocation or expansion, we are continuously reminded of our city’s unrivaled attributes: its strong and diverse economy, central location with easy access to the world, leadership in a wide range of key industries and quality of life that cannot be surpassed.

We’ll continue to reach out and make sure the world knows that Chicago is open for business and that World Business Chicago is here to help them navigate the process of bringing businesses – and most importantly, jobs – to our great city.

Sincerely,

Rita Athas

President
World Business Chicago

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Strengthening Chicago’s Business Ties at the Shanghai World Expo

Chicago’s business and civic leaders are participating in the rare opportunity to showcase Chicago to the world during the World Expo in Shanghai, China, an event expected to bring more than 60 million attendees over six months. To kick-off “Chicago Days” a tribute to the city, World Business Chicago (WBC) hosted a VIP reception for more than 150 guests at the USA Pavilion, highlighting Chicago’s presence in Shanghai.

In order to encourage direct investment and trade, while strengthening business ties, World Business Chicago President Rita Athas traveled among Mayor Richard M. Daley and some of the city's corporate leadership, using this unique platform to showcase Chicago’s business advantages and build long-standing relationships.

Already Chicago and China have a strong relationship. Greater Chicago is home to 30 mainland Chinese-owned firms, 13 Hong-Kong-owned firms and 25 Taiwan-owned firms. And, at least 300 Chicago-area companies are in China, including Motorola, Wrigley, and Boeing.

“By having a strong presence at the World Expo, we are able to connect our business community with leadership from around the world, fostering relationships that can stimulate mutual economic growth,” said Rita Athas, President of World Business Chicago. “Chicago is lucky to be home to one of the most supportive and engaged business communities in the world, some of whom traveled with us to Shanghai to support the city’s efforts,” she added.

The business delegation represents companies including: Deloitte LLP, Abbott Biotech Ventures Inc., CME Group, A. Finkl & Sons Co, Citigroup Global Markets Inc., Northwestern Memorial Healthcare, Flying Food Group LLC, R.M. Chin & Associates and Freeborn & Peters.

The trip’s intent is to produce key relationships and position Chicago as a premier global business destination for companies and governments deciding where to invest.

The business delegation came together for a roundtable discussion hosted by Chicago Mayor Richard M. Daley and retired Chinese Vice Minister of Commerce, Long Yongtu - in association with the Chicago-China Economic Development Center and the China-U.S. People’s Association for Friendship with Foreign Countries (CPAFFC). The invitation-only discussion provided a unique opportunity for dialogue between senior business leadership from Chicago and Shanghai on how to strengthen the economic cooperation between the cities.

Moderated by Professor of Political Science and Faculty Director for the University of Chicago Center in Beijing and Director of the Confucius Institute, Dali Yang, the session explored opportunities for cooperation in renewable energy, advanced manufacturing, financial services, and high-speed rail. Chinese companies participating in the Roundtable included Suntech, Goldwind, BYD, Wanxiang, China Railways, Shanghai General Motors and Shanghai Stock Exchange. In addition to the business delegation mentioned above, Chicago companies included CME Group, United Airlines, and Boeing China.

Additionally, WBC hosted a reception for Alumni from Chicago universities who live in Shanghai. Shanghai is home to 643 alumni from DePaul, Northwestern University, University of Chicago, Columbia College, University of Illinois Chicago, Illinois Institute of Technology and Loyola. More than 250 of these distinguished guests came to celebrate Chicago’s presence at the Shanghai Expo. Mayor Daley spoke to the group, stressing the importance of building bridges with China and other countries through our education system. He mentioned how the Chicago alumni in China are our best ambassadors abroad because they have lived and studied in our city, and know it first-hand.

While in Shanghai, WBC also participated in Green Cities: A Call to Action, a multidisciplinary forum bringing together experts from technology, research, architecture, business and government to catalyze sustainable business opportunities for companies throughout the world. The conference was organized by the American Chamber of Commerce in Shanghai (AmCham Shanghai) and the Asia Society Northern California.

By coordinating these visits, World Business Chicago hopes to pave the way for future investment in Chicago, while generating far-reaching visibility that is essential to staying competitive in today’s global economy.

Chicago’s efforts at the Shanghai Expo are sponsored by American Airlines, Boeing, Deloitte, and Chicago Gourmet. The Chicago Days programming is the result of a strong collaboration between many agencies within the city. The combined effort between the Chicago Office of Tourism, Chicago Convention & Tourism Bureau, Chicagoland Chamber of Commerce, Chicago Sister Cities International, Illinois Office of Tourism and World Business Chicago is essential as the city promotes itself as an international destination for business and tourism.

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Chicago's Tech Innovators Applauded; Mayor Appoints Committee to Advise on Infrastructure Demands of Explosive Tech Sector Growth

Mayor Richard M. Daley came together with Chicago’s technology leaders, pledging their continued commitment to making Chicago the top destination for technology business. At a press conference at the home to many of Chicago’s recent technology successes, the Mayor announced the creation of the Mayor’s Committee on Technology Infrastructure. The committee will focus on how the City can continue to meet the space needs of the next generation of technology-based companies and entrepreneurs.

The press conference was held at 600 West Chicago (“600 West”), the former Montgomery Ward’s catalog warehouse – one of the country’s most successful mixed-use redevelopment projects and current headquarters to Groupon, one of the world’s fastest growing companies. Daley called 600 West “a thriving example of how government can support the technology industry in a way that improves the quality of life for every resident of Chicago.”

In 2003, the City invested $28 million in Tax Increment Financing (TIF) funding to help redevelop the building, which is almost full to capacity. “Our investment has created a home for thousands of new jobs and has helped shine a national spotlight on Chicago as a technology leader,” Daley said. “We have accomplished a lot here, but there’s much more to do.”

“As we carry out our long-term strategy to create new jobs throughout Chicago and build an even more modern and diverse economy, we must continue to target emerging business sectors that will be the foundation of economic opportunity in the 21st century,” Daley said. “The fast-growing technology field is an essential part of our plan to make Chicago the most competitive destination in the world for new businesses and new jobs,” the Mayor said.

The Mayor’s Committee on Technology Infrastructure is composed of leaders of the tech community. Its job is to offer specific short- and long-term suggestions on how to meet the explosive and unique space needs of this industry. The Committee will look at locations and spaces all around Chicago and suggest how the City can help create another success story like 600 West. The Mayor was joined at the news conference by officials of highly successful companies housed at “600 West”: Brad Keywell, and Eric Lefkofsky, co-founders, Groupon and Lightbank; Andrew Mason, Founder and Chief Executive Officer, Groupon; Chuck Whitman, Chief Executive Officer, Infinium Capital Management; Tom Sossnoff, Founder, Think or Swim.

Groupon is the successful group buying website started in Chicago in November of 2008. Forbes Magazine recently named Groupon the “fastest growing company ever.” Groupon has attracted more than 13 million subscribers, expanded its presence to 85 North American markets, in addition to 29 countries, and has hired more than 1200 people in just 18 months.

Lightbank, a $100M early-stage tech investment fund, and its founders have started seven companies that employ more than 3,000 people in over 40 offices and generate more than $1 billion in annual revenue. Infinium is one of the world’s leading financial tech services firms. Think or Swim is a leader in developing technology based investment education services.

“We take great pride in our ongoing efforts to make Chicago a prominent, growing technology sector and we are honored by Mayor Daley’s mutual enthusiasm in this evolution,” said Eric Lefkofsky. “600 West is a triumphant example of the entrepreneurial spirit of our City that we believe can be expanded with continued support such as the creation of the Mayor’s Committee on Technology Infrastructure.”

The backbone of the tech community is already in the city:

Chicago is home to 50+ publicly traded tech companies and 199 of Inc. Magazine’s 5,000 Fastest Growing Companies in 2010.
Chicago is home to more than 275,000 high-tech employees of more than 24,000 employers.
Last year, high tech sectors contributed $56 billion to Chicago’s economy and it is projected that high-tech employment will add 40,000 jobs in Chicago over the next five years.

“A secure future won't happen by accident. We have to plan for it – which we’re doing,” Daley said. “We made the investment in 600 West because we know we must support visionaries – such as Groupon and Lightbank – who can identify opportunities and take risks to develop new processes, design new products and open new markets.”

The Mayor pointed out the City has supported technology growth in other projects, as well. At the Lakeside Technology Center, 350 E. Cermak Rd., the City provided $4.5 million in support of a million-square foot data hub that’s the nerve center for Chicago’s commodity markets. The building is near maximum capacity. At Illinois Institute of Technology, the City contributed $13.4 million in TIF funding to help create a tech park on campus designed to attract broad spectrum of tech firms, including bio, medical research, software, and manufacturing.

“I believe the startling success of Groupon is the result of a new generation of mentorship, collaboration and early-stage investment capital emerging in Chicago. This momentum is allowing the city’s tech startups to thrive and it’s bringing a new wave of talent and energy to the City,” Daley said. “Now our job is to take our encouragement and support for innovation and entrepreneurship to the next level. By creating the Mayor’s Committee on Technology Infrastructure, we are doing just that,” he said.

View:
Images & video from the press conference.

Crain’s Chicago Business coverage; video.

Read:
Chicago Sun Times: Over-the-top success of Groupon signals new Chicago tech formation

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Mayor’s Committee on Technology Infrastructure:

James Tyree, President, Abbott Biotech Ventures

Chris Gladwin, CEO, Cleversafe

Kevin Willer, Head of Industry - Central Region, Google

Larry Kaplan, CEO, NAVTEQ

Brad Keywell, Co-Founder, Lightbank / Groupon

Eric Lefkofsky, Co-Founder, Lightbank / Groupon

Matt McCall, Partner, New World Ventures

Sam Yagan, Executive Director, Excelerate Labs

Cathie Kozik, Corporate Vice President, IT, Motorola

Chuck Templeton, Founder, Open Table

Chuck Whitman, CEO, Infinium Capital Management

Neil Kane, President, Advanced Diamond Technologies

Howard Tullman, CEO, Flashpoint Academy

Kirk Allen, CEO, Sloan Valve

Darren Guccione, President & CEO, Callpod

Jeff Aronin, Chairman & CEO, Paragon Pharmaceuticals

Bob Rosenberg, Associate Vice President, University of Chicago

David Baker, Executive Director, University Technology Park at IIT

David Gulley, Assistant Vice Chancellor, UIC

Eric Isaacs, Director, Argonne National Laboratory

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Chicago By The Numbers

World Business Chicago tracks indicators from month to month to gauge the strength of several aspects of Chicago’s regional economy, including employment in major sectors, residential and office real estate data, price and purchasing indexes, and auto and truck sales. As some data is released with a two-month lag, the information summarized below reflects July 2010.

Key trends evident in this month’s “By The Numbers” include:

The Chicago Midwest Manufacturing Index, a monthly index tracking manufacturing activity, rose to 81.4 in July from 79.6 in June; the July 2010 value is a point higher than it was in July 2009.
Midwest housing starts increased to 93,000 in July, from 84,000 in June.
The unemployment rate decreased to 10.5 in July from 10.6 in June.
Regional employment increased in July, for the manufacturing, information, and financial sectors; however total regional employment decreased to 4,219,300 in July from 4,266,500 in June.
The national Consumer Confidence Index fell to 51.0 in July from 54.3 in June; however the June 2010 figure is still higher than July 2009 when the index was at 47.4.

These and other trends are illustrated in this month's Chicago By The Numbers table (PDF).

Redevelopment assisted by Tax Increment Financing (TIF) is very effective in the City of Peoria. The City created three new TIF's in 2007-2009 and approved twenty redevelopments - some during the "great recession".

Total investment in the buildings is estimated at $336,000,000, creating approximately 1,050 jobs. And there are many more buildings in the works, waiting for better economic conditions.

Completed *

Warehouse TIF
LaVille De Maillet, L.L.C. *
JP Riverfront Development Comp, Inc. (Sullivan) Sealtest
Iron Front, L.L.C., (Huber) 408 Washington
Iron Front, L.L.C., (Huber) 412 Washington
Iron Front, L.L.C., (Huber) 420 Washington
Edgewater Building (Huber) River
Fastenal Company *
Drumheller Properties L.L.C *
D and B Developers, L.L.C. (Waterstreet Solutions) *
B and L Sales *

Southtown TIF
Illinois Medical Clinic *
Long Term Acute Health Care Facility Cullinan *
Cancer Research Center

Hospitality Improvement Zone
Pere Marquette Mariott Courtyard Hotel

Eagleview
Behr Peoria, Inc. *
Martco, LTD (Laser Electric) *
Pulaski Express/Adams Street Supermarket *
JWE Properties/Engler Meier and Justice (Westmont) *

CBD
Caterpillar Visitor Center
Riverfront Museum