CHICAGO | Economic & Business Development

[Justin_Chicago]

This Kohler director has a new side job in health care

Rachel Kohler has spent most of her career running parts of the family business, the high-end plumbing products company based in the Wisconsin town that also shares her name. Past a certain point in life, though, she wanted to do something besides sell luxury fixtures to wealthy people.

A few years ago, through her board-level connections​ at the University of Chicago—she earned her MBA there in 1989—she met Dr. Stacy Lindau, and a new avenue opened up. Lindau, a gynecologist and professor at University of Chicago Medicine, is the founder and chief innovation officer at NowPow, a health care startup in Hyde Park that links patients with complex medical problems to social services agencies and support organizations that can help them regain their health and stay out of the hospital. Kohler is co-owner and CEO.

The firm hires from the South and Southwest sides, says Lindau, 49. Indeed, the office staff is a youthful array of black, Hispanic and Asian faces. "We generate a tax base for this community," she says. "We have a chance of paying back our original investment." That investment was a grant of $5.9 million in 2012 from the federal Centers for Medicare & Medicaid Services' Innovation Center, a creation of the Affordable Care Act intended to jump-start fresh approaches to solving health care bottlenecks.

NowPow had 35 employees in June. By mid-July it had grown to 53.

Article: http://www.chicagobusiness.com/artic...hronically-ill

[Justin_Chicago]

Can AI help you find office space?

Chicago startup Truss raised nearly $8 million to help automate finding small amounts of office space. The company built a web-based virtual assistant called Vera that incorporates artificial intelligence to help tenants find offices of less than 10,000 square feet.

The virtual assistant helps with onboarding and narrowing down the search, and humans take over to schedule walk-throughs and negotiate the leases. Truss acts as the tenant broker, collecting a commission from the landlord. Because of the savings from automation, the company says, it's able to rebate 30 percent of the commission back to the tenant.

Article: http://www.chicagobusiness.com/artic...ts-7-7-million

[Justin_Chicago]

Consulting firm to add 500 jobs in Chicago

West Monroe Partners, a Chicago management and technology consulting firm, plans to hire 500 employees in the city over the next five years.

The hiring push is part of a larger effort to recruit 1,000 nationwide. About 350 to 400 of the new hires will work in technology, said firm CEO Kevin McCarty. Many will be recruited directly from colleges like University of Illinois, Purdue University and Miami University in Ohio.

The firm currently leases 80,000-square-feet on the 11th floor at 222 W. Adams St. in Franklin Center and plans to add another 35,000 square feet in January. It has added a call center and acquired other firms specializing in Salesforce integration and health care IT.

The firm plans to add about 100 people a year in Chicago, McCarty said. About 450 of the 500 will be consultants, with the remainder working in the firm's HR, marketing, legal and finance departments.

Article: http://www.chicagobusiness.com/artic...obs-in-chicago

[Justin_Chicago]

U of C medical startup gets $3 million

Anyone who saw Explorer Surgical pitch at the University of Chicago's startup competition, the New Venture Challenge, a couple years ago could tell that the team was onto something. Its aim: using tablets and software to make the operating room run smoother and bring surgical procedure checklists into the digital age.

Now investors are getting onboard. Explorer raised $3 million, led by Aphelion Capital, a Bay Area venture fund focused on medical investments. Other investors include the University of Chicago, Elliott Management, M25 Group and HBS Angels. The company previously raised $1 million.

The U of C invested $500,000 in the latest round, the first investment out of its new $25 million fund for startups that is run by the team managing the university's endowment. Explorer got a previous investment from a $20 million innovation fund that makes seed-stage investments.

Article: http://www.chicagobusiness.com/artic...gets-3-million

[Justin_Chicago]

Planned warehouses could bring thousands of jobs to Pullman

Moonths before a Whole Foods distribution center is set to open in Pullman, developers are planning more than a million square feet of distribution space next door.

The project could bring thousands of jobs to the South Side neighborhood.

Minneapolis-based developer Ryan Cos. and nonprofit community developer Chicago Neighborhood Initiatives said they plan multiple industrial buildings totaling as much as 1.2 million square feet on land immediately north of the Whole Foods facility. U.S. Bank, which owns the land, is also involved in the project.

The exact number of jobs will depend on the type of tenants that lease space, but the project could potentially create as many as thousands of jobs, according to 9th Ward Ald. Anthony Beale.

"This is the culmination of a lot of our work to bring more jobs to the community," said David Doig, president of Chicago Neighborhood Initiatives. "In the last 30 to 40 years this area has lost tens of thousands of jobs, which has been a source of the area's decline. Jobs are important in rebuilding the area."

Construction of the more than 50-acre complex, called Pullman Crossings, could begin by next summer, said Tim Hennelly, Ryan's president for the Great Lakes region.

The warehouses will be along 103rd Street and Woodlawn Avenue, just west of Interstate 94 and Harborside International Golf Center.

Warehouses are the latest phase of the larger, 180-acre Pullman Park development to replace a former Ryerson Steel plant. Previous phases brought in the nearby Method Products soap factory and Gotham Greens rooftop greenhouse.

Article: http://www.chicagotribune.com/busine...01-column.html

[emathias]

This isn't Chicago-specific, but would be amazing if Chicago won it.

Amazon wants a second headquarters city. Chicago already got one headquarters from Seattle with Boeing, could it get a second (far more valuable) one?

Amazon HQ2 will be Amazon’s second headquarters in North America. We expect to invest over $5 billion in construction and grow this second headquarters to include as many as 50,000 high-paying jobs – it will be a full equal to our current campus in Seattle. In addition to Amazon’s direct hiring and investment, construction and ongoing operation of Amazon HQ2 is expected to create tens of thousands of additional jobs and tens of billions of dollars in additional investment in the surrounding community.

[k1052]

I know where they can get a running start with a few million square feet of available urban office space in one building...

Chicago will probably be solidly in the hunt for this. I presume Atlanta, Dallas, and maybe Denver as well.

[Justin_Chicago]

ForeverCar raises $15 million in debt, equity

ForeverCar, an online provider of extended warranties for car owners, has raised another $15 million as it expands the business.

The Chicago-based company is going to offer financing of extended warranties to consumers, as well, launching ForeverCar Consumer Credit. It raised $12 million in debt financing, as well as $3 million from existing investors, including CMFG Ventures (the venture-capital arm of Cuna Mutual Group), Method Capital (formerly called KDWC Ventures), Fieldglass founder Jai Shekhawat and others.

ForeverCar raised $10 million about a year ago.

Article: http://www.chicagobusiness.com/artic...in-debt-equity

[emathias]

Originally Posted by k1052

I know where they can get a running start with a few million square feet of available urban office space in one building...

Chicago will probably be solidly in the hunt for this. I presume Atlanta, Dallas, and maybe Denver as well.

I think Chicago will make a strong bid. I don't know that I'd put any city above about a 25% chance at this point, but Atlanta and at least one of the big Texas cities will almost certainly be on the short list. I don't think they'll choose a city as expensive as New York or SF, plus SF is still West Coast so not much regional diversity there. I think the whole West Coast is probably out, although I'm sure they'll vet anything they get from SoCal.

Philly or Pittsburgh might also be looked at if they pitch a good proposal, although I'm not sure how their international flight connections are, which is one of the few things Amazon mentions as wanting, so it must be pretty key in their decision. That helps Atlanta, Dallas and Houston - and Chicago. The research triangle in North Carolina is probably going to get a hard look, too.

In theory Minneapolis could get a look, but I think between the uber-harsh winters and the fact that it is culturally similar to Seattle it won't be the selection. I'm guessing they want a place that has a progressive feel because that's their corporate culture, but also want someplace that has some key differences from Seattle in order to be able to offer real choice to prospective employees. Chicago is pretty different from Seattle culturally, but is still deep blue. It's interesting they say they're considering a suburban campus given that they're so intensely urban in Seattle. Maybe they'll want to offer that as an option. Certainly Chicago can offer both excellent suburban and urban sites for them. Chicago probably has among the broadest possible types of sites for them to consider, which might be a key factor. Amazon could easily build their own namesake tower downtown, or do an urban campus as part of the North Branch projects underway, or they could take over the Old Post Office, or either build new or take over an existing suburban campus among those abandoned by companies coming downtown.

But holy cow, it will really give whatever city wins the bid an enormous boost. Both the actual cash spent and the prestige will be significant for any city short of SF or New York. Their payroll alone would boost Chicagoland's GDP by over 1.5%, and smaller metros the impact would be even bigger. Seattle Transit gets $43 million a year from Amazon, so similar monies to the CTA would be quite helpful.

[LouisVanDerWright]

They probably are considering suburbs because of the high costs in many urban areas these days. That is probably the driving factor for this decision: to get jobs that have become cost prohibitive in Seattle out to a more reasonably priced area. If it ends up here, it will be somewhere downtown as Amazon can get low costs and central location here.

Another thing we have going for us is a labor market able to absorb such staggering numbers easily. When you start talking urban areas less than a third of our size, 50,000 highly skilled professional employees becomes a struggle.

This type of situation is when you are glad Rahm is mayor, he's probably already got a trip planned to go schmooze the shit out of Bezos.

[emathias]

Originally Posted by LouisVanDerWright

They probably are considering suburbs because of the high costs in many urban areas these days. That is probably the driving factor for this decision: to get jobs that have become cost prohibitive in Seattle out to a more reasonably priced area. If it ends up here, it will be somewhere downtown as Amazon can get low costs and central location here.

Another thing we have going for us is a labor market able to absorb such staggering numbers easily. When you start talking urban areas less than a third of our size, 50,000 highly skilled professional employees becomes a struggle.

This type of situation is when you are glad Rahm is mayor, he's probably already got a trip planned to go schmooze the shit out of Bezos.

I agree. Crime perception and winter are probably Chicago's only big drawbacks. And the crime thing is more of a perception issue than day-to-day reality for people in Amazon income brackets, and the weather, well, you can always put on a coat ...

Bezos is a big urban guy, so he probably would prefer another downtown location and, as you said, Chicago can accommodate that. But if they were aiming at suburbs, Chicago also has several recently-vacated campuses that could be tailored to Amazon's liking. I get the impression that Bezos and Rahm have similar personalities, which probably means either they really click or they really grate on each other. Personality differences shouldn't be a deciding factor, but it never hurts to get along well with someone you're selling to.

If it happens, it might also finally be the thing that gets the City to figure out how to fund one or more new downtown rail transit lines like the Clinton Street subway and/or some version of the Circle Line and/or parts of that massive proposal that some group came out with a year or two ago. Funding will always be an issue, but if they utilized some mechanism using new construction taxes as a core part, the amount of new residential this could drive might help make that a possibility.

The estimated 100,000 new jobs (Amazon+supportive companies' positions) this would create, if located in the Central Area or nearby, would be around a 15% boost in jobs downtown. We would need more transit. If the city were smart, it would even find ways of encouraging new Amazon employees to choose to live near under-utilized transit lines like the Pink Line and the Orange Line, or the less-used branches of the Blue, Red and Green Lines. Bridgeport, McKinley Park, Pilsen, Little Village would all benefit from that, as could Bronzeville - and if that happened, it would increase transit use without overburdening the current Howard/Kimball/O'Hare nearly maxed-out branches. If a lot of people chose to locate in the suburbs, Metra might even have some capacity issues.

[bnk]

https://www.geekwire.com/2017/six-ci...-headquarters/

Six cities Amazon should consider for its second headquarters

by John Cook on September 7, 2017 at 7:14 am

...

# 5

Chicago: The Windy City already poached one Seattle area corporate titan when Boeing moved its headquarters to Chicago in 2001. Could it happen again? A big city, with big ambitions to grow its tech credibility, Chicago already employs over 143,000 people in its tech sector, including 44,000 in software engineering and development. It does not boast an MIT, Carnegie Mellon, University of Toronto or University of Texas, but Chicago’s cosmopolitan appeal, welcoming culture and central location could serve it well as a contender for Amazon’s second headquarters. Amazon plans to have more than 8,000 employees working in Illinois by the end of next year (most in fulfillment centers), and the state has shown a history of doling out massive tax incentives to lure the company. A transportation hub, Chicago could be a relatively easy commute from Seattle.

...




No mention of Northwestern or the University of Chicago?

[k1052]

Originally Posted by emathias

I think Chicago will make a strong bid. I don't know that I'd put any city above about a 25% chance at this point, but Atlanta and at least one of the big Texas cities will almost certainly be on the short list. I don't think they'll choose a city as expensive as New York or SF, plus SF is still West Coast so not much regional diversity there. I think the whole West Coast is probably out, although I'm sure they'll vet anything they get from SoCal.

Philly or Pittsburgh might also be looked at if they pitch a good proposal, although I'm not sure how their international flight connections are, which is one of the few things Amazon mentions as wanting, so it must be pretty key in their decision. That helps Atlanta, Dallas and Houston - and Chicago. The research triangle in North Carolina is probably going to get a hard look, too.

In theory Minneapolis could get a look, but I think between the uber-harsh winters and the fact that it is culturally similar to Seattle it won't be the selection. I'm guessing they want a place that has a progressive feel because that's their corporate culture, but also want someplace that has some key differences from Seattle in order to be able to offer real choice to prospective employees. Chicago is pretty different from Seattle culturally, but is still deep blue. It's interesting they say they're considering a suburban campus given that they're so intensely urban in Seattle. Maybe they'll want to offer that as an option. Certainly Chicago can offer both excellent suburban and urban sites for them. Chicago probably has among the broadest possible types of sites for them to consider, which might be a key factor. Amazon could easily build their own namesake tower downtown, or do an urban campus as part of the North Branch projects underway, or they could take over the Old Post Office, or either build new or take over an existing suburban campus among those abandoned by companies coming downtown.

But holy cow, it will really give whatever city wins the bid an enormous boost. Both the actual cash spent and the prestige will be significant for any city short of SF or New York. Their payroll alone would boost Chicagoland's GDP by over 1.5%, and smaller metros the impact would be even bigger. Seattle Transit gets $43 million a year from Amazon, so similar monies to the CTA would be quite helpful.

There may be political problems with TX and NC though given the fetish both their legislatures have for passing socially regressive laws. That's not going to help their chances.

I agree that west coast is very unlikely. The east cost for cost and practicality probably doesn't work either.

An very internationally connected airport is surely a must have. So points for points for Atlanta and Chicago.

[k1052]

Originally Posted by LouisVanDerWright

They probably are considering suburbs because of the high costs in many urban areas these days. That is probably the driving factor for this decision: to get jobs that have become cost prohibitive in Seattle out to a more reasonably priced area. If it ends up here, it will be somewhere downtown as Amazon can get low costs and central location here.

Another thing we have going for us is a labor market able to absorb such staggering numbers easily. When you start talking urban areas less than a third of our size, 50,000 highly skilled professional employees becomes a struggle.

This type of situation is when you are glad Rahm is mayor, he's probably already got a trip planned to go schmooze the shit out of Bezos.

There is literally already a story in Crain's about Rahm working Bezos.

Yes, the reality of adding that kind of load would seem to rule out a lot of places that could possibly be competitive. I mean the need for stuff just like hotel rooms alone would be enormous.

[Kenmore]

landing amazon would be huge for rahm, he needs this bad

[k1052]

Reading the RFP they want:

Within 30 miles of pop center

45 minutes to international airport ww/ frequent favorable distance and schedules to e/w coasts

1-2 miles to major highways

access to mass transit AT SITE

minimum 500,000 sq ft initial footprint by 2019
Up to 8M sq ft by 2027

Optimal fiber optic connectivity

The importance of adhering to their time table is mentioned several times in the document. I think I know somebody who can deliver any and all required entitlements at the speed of light...

[Randomguy34]

^^ The RFP literally makes it sound like they want the Old Post Office (direct Blue Line service to O'hare, large initial footprint by 2019, West Loop has some of the best fiber optic access in the country, literally on top of a highway, etc..)

[IrishIllini]

I think we have a chance to land the Amazon second HQ. 50,000 employees would be a hard find Atlanta, Dallas, or Austin. Given that the Texas construction industry is already short on labor, I can't imagine them being able to provide homes for possibly 50,000 new residents and their families in addition to filling current demand AND rebuilding the destroyed parts of Metro Houston. We'll see though.

How many UIUC grads do we think currently work for Amazon in Seattle? Chicago is a short drive away. Would make recruiting a breeze. I like our odds here. I've looked into it on some other forums and it seems like even people outside of Chicago are thinking we end up with this one.

This would be a great get for the city. Would really turn around perceptions and send the current development boom into a straight up frenzy.

[IrishIllini]

For us boosters who'd love nothing more than to see this HQ here, please take a few minutes to write an email to Amazon showing your support for a Chicago HQ. I think we've got a real shot here!

amazonhq2@amazon.com

[Handro]

Originally Posted by IrishIllini

For us boosters who'd love nothing more than to see this HQ here, please take a few minutes to write an email to Amazon showing your support for a Chicago HQ. I think we've got a real shot here!

amazonhq2@amazon.com

Sent