Open Illinois.org

It seems Chicago is still in denial about the (former) Sears Tower name change to “Willis Tower.”  Numerous people have vowed not to accept the name and continue calling the tower by its traditional one.  But, as Willis CEO Joe Plumeri put it, “You got to make a decision between sentimentality and the reality of what puts food on your table.  There’s no food on the table called sentimentality cookies.  There’s no food on the table that’s called tradition steak.”

He might have a valid point.  People will have to accept the change eventually, especially when they realize they funded it indirectly.  While many Chicagoans have been munching on sentimentality cookies, Mayor Daley and Chicago government have been busy making this change happen with the help of some taxpayer money–money that could have been used to put real food on your table (not just “tradition steak,” either).  Through the use of tax increment financing (TIF), Chicago taxpayers have subsidized Willis’s move to Chicago to the tune of $3.8 million.  That’s 22% of the company’s estimated $17 million moving and renovation costs.

“You mean we paid to make this name change happen?!”  Yup, at least partially.  Hope you like it!

“Why would the city do such a thing?”  To develop Chicago’s struggling real estate market, of course. “The companies just don’t want to invest,” according to Alderman Fioretti. “It’s an economic development tool.” Indeed, tax-increment financing has been used extensively to promote “economic development” in “blighted” areas, like run-down public schools. Or the Sears..er…Willis tower on Wacker drive.  In downtown Chicago.  In the heart of the Loop.

“Why wouldn’t companies want to invest?”  Well surely it’s not because of the high tax burden, government subsidization, and ballooning bureaucratic business regulation (as outlined in our most recent Policy Point on Cook County).  Sometimes, if the stars aren’t aligned, you just need a few million to sweeten the deal.

“Why didn’t I know about this?!”  Well, the city didn’t want to upset us over such a sentimental issue.  Plus, this is important economic development.  They figured as long as we are busy chowing down on tradition steak, we won’t care.  What we don’t know can’t hurt us, right?

On the contrary.  This is a case in point for transparency in all aspects of government spending, especially in the highly discretionary slush fund created by TIF.  How about keeping us in the loop when spending in the Loop?

But this isn’t just about transparency. It’s about failed economic policies.  Somewhere along the way, Chicago decided that they could compensate for their anti-business policies by giving subsidies to “special” organizations, like Willis and United Airlines.  However, if taxes and regulation were low, businesses wouldn’t need special incentives to open up shop.  They would come here on their own. Cook County is making a step in the right direction by repealing the County sales tax.  Maybe they’re starting to realize that wealth reallocation through taxes like TIF is not the answer to our problems.  More economic liberty is.

Kudos to Progress Illinois for exposing this story–and for proving that transparency is a universal issue that affects all citizens, regardless of political views.

Next time you hear someone complain about the new “Willis Tower,” you may want to remind them that it changed with the help of their money.  Perhaps a sentimentality cookie will cheer them up.