-- 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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There is some validity to their argument, but what they really want is to force landlords to rent their space for pennies on the dollar. There are repercussions to exorbitant property taxes and runaway crime. Maybe focus on removing some of the govt hurdles both businesses and landlords have to deal with.
Unfortunately a vacant building really doesn’t give the alderperson anyone to target for extortion. If they force you to lease it now you you need to get permits, alderperson approval etc. One of the things that people don’t understand about real estate is that for some landlords renting a space for below market rent is a bad idea. If that landlord wants to sell the property any potential buyer is going to value it based on that below market rent.
Your leaders are delusional. They believe that tax breaks, and not the underlying taxes, are why there are vacant storefronts in Chicago. In many areas in Chicago, the real estate taxes often exceed the market rate rent and landlords often lose money every month because the mortgage and taxes mean they are paying money out of their own pockets to cover the difference. The tax break for vacant property merely minimizes the loss. Do these people even understand what a ‘tax break’ even means on a tax returns? Reminds me of the Seinfeld episode where they were talking about write… Read more »