PLAYING FAVORITES

(There is something wrong with the lay out of the blog today.  I don't know how to fix it, so I will have to get technical help.  I apologize.)

"Quinn is playing favorites with big businesses at the expense of small businesses," said Illinois State Rep. Jack Franks (D-Marengo) in response to the announcement last week of more companies getting money as “bribes” not to leave the friendly confines.

 On May 19^th, I wrote a blog, “Does Anyone Know How to Do The Math,”  about the $22 million Continental Tires America (CTA) was receiving in incentives for promising to create 444 jobs.  I compared the amount per retained/new job versus the amount per job other companies had recently gotten. I found the amount CTA was receiving ludicrous because previously the average had been between $15,000-$29,000.

Reminder of amount given per job:

Groupon-$14,500

Motorola Mobility-$34,750

CTA- $49,549.54

Notice the escalation in amount per job as the months go by?  Could it get even higher?  Well, how about the nearly $2 million that JMC Steel Group Inc. just got to create only 25 jobs in Chicago?  That is $80,000 per job!

We got away cheap in persuading Steiner Electric Co. not to move to Hobart, Indiana after they shut down a facility in South Holland.  They decided on Tinley Park instead and got $436,714 to create 7 jobs and retain 29 workers.  That is a paltry$12,130 per job.  How pissed Richard Kerman, the company’s president and chief operating office must be when he sees how much money everybody else is getting.  Especially after he was quoted in the Chicago Tribune  as saying, “Any time that you can expand and create growth and have incentives of any kind, (they) help lessen the expense of that expansion.”   You should have held out for more, Mr. Kerman!

Some other companies getting money and the amount per job:

$858,750 to IronBridge Capital Management L.P. to create 10 jobs and retain 30 workers in Oakbrook Terrace.- $21,468 /per job

$601,061 to Chicago Metallic Corporation to create 25 jobs and retain 6 workers in Bridgeview.- $19,389 /per job

$589,758 to ACL Transportation Services LLC to create 15 jobs and 25 workers in Cairo.$14,743 /per job

$1.3 million to Kapak Company LLC to create 55 jobs and retain 55 workers in Hanover Park. $11,818 /per job

$949,846 to John Boos & Co. to retain 120 jobs in Effingham.-$7,915/ per job

$432,850 to Interior Investments LLC to create 5 jobs and retain 69 workers in Lincolnshire-$5,849/ per job

While Interior Investments did not get a lot of money, they sell office furniture, so they now have great leads on companies who might want a new look now that they are flush with cash.  Also, I am not how sure Interior Investments really were about leaving.  Their Lincolnshire web site description is:

“Our regional headquarters houses all executive, administrative, and service functions including an adjacent eighty thousand square foot warehouse. Teams comprised of sales, design, project management and customer care all make Lincolnshire their home.

This dynamic facility also houses our project implementation and logistics teams and is our primary distribution hub for Illinois.”

The tone makes one feel that they are solidly entrenched in that location.  I don’t think they were planning to pack up and leave anytime soon. They probably hinted at it just to see what they could get! Cha,ching!

Since the City of Chicago is in such dire straits, maybe Mayor Emanuel should tell Illinois governor Quinn that we are all packing up and moving to Indiana unless he gives the city money.  Anyone need to borrow some baggage?