In July the newly merged beer giant MillerCoors announced that it was moving its corporate operations from Milwaukee and Denver to Chicago, which it had narrowly selected over Dallas. Mayor Daley was jubilant. “The company’s decision to locate its headquarters here strengthens our reputation as a world-class city in which to conduct business and confirms that Chicago is a great place to live, work, and raise a family.”
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That seems fair enough. But it might not be, considering the mess that ensued from a strikingly similar deal the city made with Republic Windows & Doors. Republic received $10 million in TIF funds to build a factory on Goose Island. In exchange for the subsidy—disbursed between 1996 and 2006—Republic pledged to keep 610 workers on its payroll until 2019.
By last year the company’s payroll was down to less than 300. And on December 5, it shut down altogether, abruptly firing the remaining workers. What’s worse, Republic said it couldn’t pay the workers vacation or severance pay unless its creditors, Bank of America and JPMorgan Chase, unfroze its assets. The workers took over the factory, drawing attention from the international press, and pointed out that Bank of America had been the recipient of a bailout from the federal government. Overnight the showdown at the factory became a symbol of the double standard in the bailout legislation—the bank got the billions and the workers got the shaft.
To his credit, Flores persisted. He wondered if Republic had even bothered to let the city know it was having financial problems. Georges said nothing had been said until the factory was shuttered. “I have a problem with that,” Flores said. “We gave them $10 million and I understand this agreement is in place through 2019. If that’s true I think we could expect at least a courtesy call.”
Three days after this hearing, on January 15, we sent a Freedom of Information Act request to Georges’s office, asking for all documents and reports relating to the monitoring of the Republic TIF agreement. According to state law, municipalities, including the city, are supposed to respond to FOIA requests within seven working days.
“The city has to post this information so that everyone can keep track,” says Waguespack. “The technology clearly exists. This shouldn’t be an issue.”
Ben Joravsky discusses his weekly column with journalist Dave Glowacz at mrradio.org/theworks. And for even more Joravsky, see our blog Clout City.
