-- 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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Chicago Teachers Pension Fund ? Are you kidding me ? Underfunded, headed by an executive director who has never led a pension fund. It has a bare bones investment department led by a chief investment officer who has never been a chief investment officer, let alone made a single direct investment in anything. They do not appear to have a real estate invest department to review direct real estate investments. The Board of Trustees has zero experience analyzing or reviewing direct investments. Might as well invest in DV Urban, oh wait, they did.
The retirees should be storming the gates.
CTU pension could invest only on the condition that all apartments are section 8
Hmmmm…..smells suspiciously like a criminal enterprise, there will, be phone taps everywhere, they’ll find nothing!
Detroit did that many times hopng to provide union jobs at union payscales as a trade-off for pension risk. It was assumed that the taxpayers would foot the bill WHEN things went south, as everyone anticipated at the outset. Generally the pension funds got second and third liens and construction lenders and workers had first claim on land and partially completed structures. Needless to say, lots of lawyers were paid lots of bucks to generate lots of paper. Probably some finders’ fees and CPA firms [questionable] feasability studies added to the up-front costs. Later the gift keeps on giving as… Read more »
Oakbrook Center is partially owned by CalPERS.
Well that takes a lotta chutzpah!
Noooooooo!!!!!. If the private investors won’t join it means IT SHOULDN’T BE BUILT.
These already white wealthy areas will do just fine without it.
No tax payer funds. It goes south we on the hook for it.
Heads they win, tails taxpayers lose. That is a good bet.
So the geniuses at Stirling Bay pulled an LTCM? Let them hold onto it and develop it as cash flow allows…. Pathetic.
Unbelievable. No, wait, it’s the Chicago Teachers Pension Fund.
Why – commercial development is in terrible shape. The pensions can’t afford to enter into risky ventures.
Why worry about risk? We have been told ad nauseum that pensions will be paid no matter what, and there is plenty more tax revenue to be had. They believe they are operating in a risk-free environment.
Crooked Corrupt Connected Developer
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Crooked Corrupt Techers Union
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= THE MOTHER OF ALL FEDERAL CORRUPTION PROBES