What’ll ya’ have?
Wednesday, Jun 7, 2006 - Posted by Rich Miller
A million dollars, apparently.
Pabst Brewing Co. is moving its headquarters to Woodridge, marking its return to the Midwest after a decade-long absence.
Lured by the labor pool, transportation access and a nearly $1 million state incentives, the beer manufacturer is moving 31 jobs to the suburb about 30 miles west of Chicago.
The company’s executives, sales and marketing staff will relocate from San Antonio, Texas, in early July, said Kevin Kotecki, CEO of Pabst Brewing. The beer maker, which will spend nearly $2.5 million to lease an office building, already has four workers stationed in the area.
“It feels like home to us,†Mr. Kotecki said. “We are the third-largest brewery in Chicago, 10% of our business is done there and it continues to get larger every year.†[…]
The high-dollar incentive for less than three dozen jobs received some criticism from state Senator Kirk Dillard (R-Hinsdale).
“You have to remember that Blagojevich is in an election year and it is not atypical for a governor to be much more generous with the state’s checkbook when trying to win re-election, especially in a time when Illinois is 46th in job creation for the last three years,†Mr. Dillard said. “One million for 31 jobs clearly pushes the envelope, but I’m happy these jobs are locating in my senatorial district.â€
Andrew Ross, spokesman for the Department of Commerce and Economic Opportunity, said the incentive wasn’t excessive.
- Lovie's Leather - Wednesday, Jun 7, 06 @ 5:47 pm:
It’s always nice to see jobs coming to Illinois especially those involving alcohol, tobacco, or firearms. (P.S. I am not being sarcastic, I am serious.) 3 of my favorite things….
- B Hicks - Wednesday, Jun 7, 06 @ 6:55 pm:
Rod’s got a taste for living; he’s thinking cold Blue Ribbon.
Claret is the liquor for boys; port for men; but he who aspires to be a hero must drink PBR.
It gets better– stand by.
- Anonymous - Wednesday, Jun 7, 06 @ 7:24 pm:
Rich can you copy the link on the trib today about the Dixon inmate that took our union sister hostage for 25 hours and raped her at knife point? Please we need to get this out there. We have had two women raped at our prisons in the past 90 days. Someone is going to get killed if this under staffing issue is not addressed.
- Lt. Guv - Wednesday, Jun 7, 06 @ 7:48 pm:
Dillard’s against beer! That’s un-American. Pinko Republican.
- Frank Booth - Wednesday, Jun 7, 06 @ 10:05 pm:
It probably went something like this:
RB: Man it’d be nice to get some good old American jobs back here in Illinois. You know, something like a brewery.
BT: Yeah, how about incentives for Heineken?
RB: Heineken? F@#K that S&%T! Pabst Blue Ribbon.
- Hiccup - Wednesday, Jun 7, 06 @ 10:18 pm:
Dad sometimes used to drink PBR back in the day, it was considered ‘poor man’s beer’. Apparently it’s the new favorite of college kids these days. Since the college kids in state schools are seeing big increases in tutition and fees, they’ll need to pinch their pennies on their bar tabs, so this will probably the beverage of choice….
Tell me this million isn’t a lump sum, but a little discount here and there on all the various permitting fees and whatnot over time, or else it makes no sense. Roughly $32,000 in state incentive money invested per new hire, and I gotta think half of those hires will make less than this per year, the company hinted as much. While I understand conceptually about multiplier effects, this doesn’t look like the kind of state money give-away that’s going to generate more in return. Why is the ratio of incentives to new job revenue so out of balance? Are there no other good reasons to locate a business in our state?
To be fair, the republican governors liked to give away the store in incentives too, and I really have a hard time seeing how any of these administrations can justify the give-aways. TIF districts are another one: They were ostensibly to be used as incubators to get an area started on revitalization, and I can see the utility of that, but so very many of them just seem to never sunset, and that’s money out of Illinois citizen’s pockets going to the pockets of the business owners year after year after year, not necessarily being re-invested as the TIF district planners sought… Every baby chick has to leave the incubator eventually, doesn’t it? When do these TIF-shielded businesses start paying real state taxes we can apply to our debt, our schools, etc.?
You mean to tell me our state and our cities and towns suck so bad we have to (over)pay people to come here? What the heck are they doing at DCEO anyhow???
- Long Time Reader; First Time Poster - Wednesday, Jun 7, 06 @ 10:30 pm:
Talk about a “corporate loop hole” if there ever was one!
- Ignatius J. Reily - Wednesday, Jun 7, 06 @ 10:37 pm:
So with the state of the state at its bleakest point ever, Blago and his handlers tout the return of Pabst Blue Ribbon beer as a major achievement? Big deal. Bring back Blatz and I’d be forever faithful.
- Papa Legba - Wednesday, Jun 7, 06 @ 10:54 pm:
Mr. Reily,
What if they could bring back Meister Brau?
- Lovie's Leather - Wednesday, Jun 7, 06 @ 11:03 pm:
Meister Brau! Wow, haven’t seen one of those since National Lampoon’s Christmas Vacation… Eddie was drinking one while dumping the s****er into the sewer.
- Wumpus - Wednesday, Jun 7, 06 @ 11:59 pm:
The only issue I have here is the “loophole” vs incentive hypocrisy. Let’s do some math 31 jobs, it is headquarters, so let’s say they average $50,000 salary (modest) per year. 31*55k=$1,550,000 in salary the first year alone. Plus, they have to pay utilities an dbuy gas, etc, it is well worth a measley $1million. Kirk Blowhard needs to shut the heck up. Pandering, which it probably is, this is an investment.
- Scott Fawell's Cellmate - Thursday, Jun 8, 06 @ 12:44 am:
Wow - Senator Dillard really puts out the welcome mat for the business community in his district. He didn’t put together an incentive plan to attract Pabst, didn’t offer regulatory relief to the company, didn’t even pick up the phone to call Pabst reps to let him know he wants them in his community - no, rather than focus on job creation and development, he’d rather play partisan, carry Judy’s water and say “One million for 31 jobs clearly pushes the envelope, but I’m happy these jobs are locating in my senatorial district.†Pabst moved to Illinois in spite of - not because of - Kirk Dillard.
31 people moving to IL from TX mean approximately 31 new homes to be sold and/or built, 31 homes that need 31 new refrigerators, dishwashers and/or other appliances, 31 new cars, and 31 people otherwise buying goods and services from Illinoisans. Always a good thing.
Also, the “$1 million” amount probably is misleading. State incentive packages usually are a mixture of lump sum (e.g. funds for worker training and municpal monies for road and sewer construction) and incentives (e.g. if you have x # of employees by the end of FY2007, then you get Y% reduction in Z coprorate taxes). I’d be interested to know the package details. For years IL and other midwestern states engaged in stupid smokestack hunting, where we bid, outbid and overbid each other.
Finally, this has been a good week for job creation in Illinois. DCEO announced last Thursday that it was awarding almost $16 million in Opportunity Returns support to Triumph Foods, a pork processing company headquartered in St. Joseph, Missouri, to locate a new, modern processing plant in East Moline. Triumph Foods is investing $135 million to build the 620,000 square foot plant, which will be located on 116 acres in East Moline. Construction is expected to begin the spring of 2007 with occupancy anticipated by the first quarter of 2009. The project will create an estimated 350 new jobs by 2009 and a total of 1,000 new jobs by 2010. The new plant will be a pork processing facility only, with no hog confinement planned, and will feature new automated processes to the community concerns traditionally associated with pork processing facilities. (I’m guessing this new technology is more than just building an enormous fan to aim west and stocking the processing plant floor with 1000 pine tree air fresheners.)
The DCEO press release contains details of the incentive package: “The Illinois Department of Commerce and Economic Opportunity (DCEO) is administering the business investment package. It includes Economic Development for a Growing Economy (EDGE) corporate income tax credits over the next ten years based on job creation; a Community Development Assistance Program (CDAP) grant to the City of East Moline to make needed improvements related to water and sewer infrastructure; a Large Business Development Program (LBDP) grant; Employer Training Investment Program (ETIP) job training funds that will help enhance the skills of its workforce; as well as additional financial benefits, such as investment tax credits and tax exemptions through the High Impact Business (HIB) program.”
Overall, a good use of state econdev funds and a good result.
- Anonymous - Thursday, Jun 8, 06 @ 5:02 am:
Scott Fawell’s Cellmate,
Did I missed your review of the 1,000 lost Maytag jobs?
- Anonymous - Thursday, Jun 8, 06 @ 6:58 am:
PBR…the favorite beverage of former state senator Larry Walsh, now the Will County Chief Executive. If they had just located a couple miles south of Woodridge into Will County, they would have had a very warm welcome.
- Wile Coyote - Thursday, Jun 8, 06 @ 9:43 am:
Even with the move, they will still brew this nectar out of state. Now excuse me while I light up my non-filter Camel that goes so well with a PBR.
- HappyToaster - Thursday, Jun 8, 06 @ 10:35 am:
Pabst doesn’t brew. Miller does all the brewing under contract. Pabst is a holding company for “throwback” and low cost regional brands.
- Jake from Elwood - Thursday, Jun 8, 06 @ 11:18 am:
Woodridge Mayor Murphy may require a case of PBRs to divert attention from his son’s well-publicized legal troubles.
- pickles!! - Thursday, Jun 8, 06 @ 2:00 pm:
I made a promise to myself a few years back the only time I would drink PBR it is in Wisconsin. I wont drink it Woodridge, thats for sure.
maybe Blago can lure Olympia, Hamms and Fallstaff here, among other bad beers. Illinois would be famous for having the worst beers in the union…..
- Eagle I - Thursday, Jun 8, 06 @ 4:10 pm:
Pickles, we don’t need those old bad beers when we still have Stag! Real men still drink, gargle, wash and clean tools with Stag every day.
- Pabst Blue Ribbon Man - Thursday, Jun 8, 06 @ 8:51 pm:
Is 1 million worth 31 jobs? You bet it is. Plus, to have an outstanding beer like PBR being able to call Chicago home is great. Let’s support Pabst Blue Ribbon, Old Style, Old Milwaukee, etc. and buy some today! PBR ME ASAP!