-- Connecting the dots between our economy, government and business --
Summary and audio linked here.
Chicago’s political leadership is floating a pension buyout program as evidence it is seriously addressing the city’s thirty-six-billion-dollar unfunded pension liability, but Mark Glennon, founder of the Illinois policy research organization Wirepoints, said that the proposal moves debt from one column to another rather than reducing it, and that the broader fiscal picture facing the city continues to deteriorate across every measurable dimension. Audio here.
Expect no retraction or apology. This what they do.
The state’s existing buyout program for its own pensions is the precedent for Chicago, which should be a warning: Look out for similar exaggerated claims and shoddy analysis.
Full interview and summary linked here.
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The right way to say this is “After writing the $126 million loan down twice, the bank seized the northern portion of the 53 acre project.” In the next 6-9 months the other lenders will seize the rest of the space and try to sell it to a Brookfield or somebody who actually knows how to execute a project like this. Only question is, who will want it. A former industrial waste site in a failing city with no upside in sight. Developers will look at the recent CTU contract process and put Chicago at the top of the list… Read more »
Chicago & Illinois are moving in the exact opposite direction of a good place to do business. It could be years before there is a recovery.
This is really a bad sign. If a powerhouse like Sterling Bay gets in trouble, no one will be immune from the downturn.
This is why I suggest the United Center development will never happen.
What a tragedy. It truly would be a sterling site and opportunity if Chicago were in good shape.