Report: Merger near for OfficeMax, Office Depot













OfficeMax


OfficeMax store in Woodridge.
(Scott Strazzante/Chicago Tribune in 2006 / February 18, 2013)



























































Office supply companies OfficeMax Inc., based in Naperville, and Office Depot Inc. are in advanced talks to merge, the Wall Street Journal reported, citing people familiar with the matter.

The deal is expected to be a stock-for-stock transaction, the Wall Street Journal said on Monday, adding that the precise terms could not be learned.

The deal is not yet done, and talks could still fall apart, the Journal reported. An announcement could come as early as this week, the Journal added, citing the sources.

OfficeMax is expected to report its quarterly earnings on Thursday.


While the pair up had been rumored for years, one analyst said Monday that he believed a deal was less likely after a report last week that Office Depot is in talks to sell its remaining 50 percent stake in its Mexican operations.


Scott Tilghman, an analyst with investment firm B. Riley & Co. said that similarities in the pair’s U.S. and Mexican operations were thought to be a cornerstone of the consideration to combine.





But even if Office Depot does sell its Mexican stake, Tilghman said a deal would still make sense as both companies struggle to gain traction against competitor Staples Inc. and sites like Amazon.com.


By combining, the pair could cut costs by shedding stores and streamlining operations without having to raise prices. Tilghman estimates the companies could get rid of 20 percent of their combined stores and still hold onto customers.


- Samantha Bomkamp and Reuters contributed to this report

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Hockey arrives at Soldier Field













Hockey City Classic


Fans clap and cheer after the National Anthem to start a game between Notre Dame and Miami in the OfficeMax Hockey City Classic played at Soldier Field in Chicago on Sunday.
(Jose M. Osorio, Chicago Tribune / February 17, 2013)



























































The tailgates were at full steam hours before noon. Snow covered gray slats dropped on the Soldier Field turf. And they dropped a rink in the middle of a football field.


Hockey arrived by the lake on Sunday, with four college teams taking part in the first Hockey City Classic. Notre Dame and Miami (Ohio) battled first, with Wisconsin and Minnesota set to meet in the second game of the doubleheader.


It's the first hockey event at Soldier Field and, possibly, a sort of dry run to see if the building can house an NHL Winter Classic involving the Blackhawks -- who skated at the venue with wounded military veterans on Saturday -- in the future.





bchamilton@tribune.com


Twitter @ChiTribHamilton






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Discovery bets on 2 dope series about pot growers






NEW YORK (AP) — Cupcake makers, pawnbrokers and storage container raiders have all had their moments in reality television’s spotlight. Now the time may be right for marijuana growers — and the people who chase them.


The Discovery network debuts a six-episode series, “Weed Country,” at 10 p.m. Wednesday and will replace it with “Pot Cops” in April. Both examine the marijuana trade in northern California.






It fits Discovery’s efforts to introduce interesting subcultures to viewers, said Nancy Daniels, the network’s executive vice president for production and development on the West Coast. Discovery tried a series about a medical marijuana dispensary in Oakland two years ago, “Weed Wars,” and is sticking with dope even though the show didn’t do very well in the ratings.


“We still think it’s an interesting world and maybe we didn’t tap into the right part of it,” Daniels said.


Based on its first episode, “Weed Country” is a nuanced effort at giving equal time to both sides of the issue. Producers find colorful growers who use science to make the best product possible. They don’t believe what they are doing is wrong. “We’re flying the flag of civil disobedience,” one grower said.


The growers may be trying to dodge the law, but don’t hesitate to open up different facets of their business to television cameras.


At the same time, “Weed Country” shows the challenges faced by law enforcement. It follows one group’s careful training for backwoods missions to find farms guarded by growers who are armed and intent upon protecting their crops.


“It surprised me with how deep and complex it was,” Daniels said.


The show does have some distracting reality TV contrivances. Before one commercial break, a grower making a late-night delivery to a customer becomes suspicious of a van that ominously pulls out behind him on a dark road. After the break, the van drives innocently by. At another point, producers lead you to believe the grower is about to be pulled over by police when, after a commercial, it becomes clear the officer is going after someone else.


The “Pot Cops” series will be told from the point of view of law enforcement, after producers reached an agreement for access to officers hunting down marijuana farms in California’s Humboldt County.


Discovery had planned to air the two programs back-to-back on the same night and promote it as “Weed Wednesday” on the network. But those plans were dropped because unrelated programming expected to be available this spring had fallen through and Discovery needed “Pot Cops” to fill a hole on its schedule in April.


The change had nothing to do with feeling cold feet about a “Weed Wednesday” promotion, Daniels said.


Entertainment News Headlines – Yahoo! News





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Cuomo Bucks Tide With Bill to Lift Abortion Limits





ALBANY — Bucking a trend in which states have been seeking to restrict abortion, Gov. Andrew M. Cuomo is putting the finishing touches on legislation that would guarantee women in New York the right to late-term abortions when their health is in danger or the fetus is not viable.




Mr. Cuomo, seeking to deliver on a promise he made in his recent State of the State address, would rewrite a law that currently allows abortions after 24 weeks of pregnancy only if the pregnant woman’s life is at risk. The law is not enforced, because it is superseded by federal court rulings that allow late-term abortions to protect a woman’s health, even if her life is not in jeopardy. But abortion rights advocates say the existence of the more restrictive state law has a chilling effect on some doctors and prompts some women to leave the state for late-term abortions.


Mr. Cuomo’s proposal, which has not yet been made public, would also clarify that licensed health care practitioners, and not only physicians, can perform abortions. It would remove abortion from the state’s penal law and regulate it through the state’s public health law.


Abortion rights advocates have welcomed Mr. Cuomo’s plan, which he outlined in general terms as part of a broader package of women’s rights initiatives in his State of the State address in January. But the Roman Catholic Church and anti-abortion groups are dismayed; opponents have labeled the legislation the Abortion Expansion Act.


The prospects for Mr. Cuomo’s effort are uncertain. The State Assembly is controlled by Democrats who support abortion rights; the Senate is more difficult to predict because this year it is controlled by a coalition of Republicans who have tended to oppose new abortion rights laws and breakaway Democrats who support abortion rights.


New York legalized abortion in 1970, three years before it was legalized nationally by the Supreme Court in Roe v. Wade. Mr. Cuomo’s proposal would update the state law so that it could stand alone if the broader federal standard set by Roe were to be undone.


“Why are we doing this? The Supreme Court could change,” said a senior Cuomo administration official, who spoke on the condition of anonymity because the governor had not formally introduced his proposal.


But opponents of abortion rights, already upset at the high rate of abortions in New York State, worry that rewriting the abortion law would encourage an even greater number of abortions. For example, they suggest that the provision to allow abortions late in a woman’s pregnancy for health reasons could be used as a loophole to allow unchecked late-term abortions.


“I am hard pressed to think of a piece of legislation that is less needed or more harmful than this one,” the archbishop of New York, Cardinal Timothy M. Dolan, wrote in a letter to Mr. Cuomo last month. Referring to Albany lawmakers in a subsequent column, he added, “It’s as though, in their minds, our state motto, ‘Excelsior’ (‘Ever Upward’), applies to the abortion rate.”


National abortion rights groups have sought for years to persuade state legislatures to adopt laws guaranteeing abortion rights as a backup to Roe. But they have had limited success: Only seven states have such measures in place, including California, Connecticut and Maryland; the most recent state to adopt such a law is Hawaii, which did so in 2006.


“Pretty much all of the energy, all of the momentum, has been to restrict abortion, which makes what could potentially happen in New York so interesting,” said Elizabeth Nash, state issues manager at the Guttmacher Institute, a research group that supports abortion rights. “There’s no other state that’s even contemplating this right now.”


In most statehouses, the push by lawmakers has been in the opposite direction. The past two years has seen more provisions adopted at the state level to restrict abortion rights than in any two-year period in decades, according to the Guttmacher Institute; last year, 19 states adopted 43 new provisions restricting abortion access, while not a single significant measure was adopted to expand access to abortion or to comprehensive sex education.


“It’s an extraordinary moment in terms of the degree to which there is government interference in a woman’s ability to make these basic health care decisions,” said Andrea Miller, the president of NARAL Pro-Choice New York. “For New York to be able to send a signal, a hopeful sign, a sense of the turning of the tide, we think is really important.”


Abortion rights advocates say that even though the Roe decision supersedes state law, some doctors are hesitant to perform late-term abortions when a woman’s health is at risk because the criminal statutes remain on the books.


“Doctors and hospitals shouldn’t be reading criminal laws to determine what types of health services they can offer and provide to their patients,” said M. Tracey Brooks, the president of Family Planning Advocates of New York State.


For Mr. Cuomo, the debate over passing a new abortion law presents an opportunity to appeal to women as well as to liberals, who have sought action in Albany without success since Eliot Spitzer made a similar proposal when he was governor. But it also poses a challenge to the coalition of Republicans and a few Democrats that controls the State Senate, the chamber that has in the past stood as the primary obstacle to passing abortion legislation in the capital.


The governor has said that his Reproductive Health Act would be one plank of a 10-part Women’s Equality Act that also would include equal pay and anti-discrimination provisions. Conservative groups, still stinging from the willingness of Republican lawmakers to go along with Mr. Cuomo’s push to legalize same-sex marriage in 2011, are mobilizing against the proposal. Seven thousand New Yorkers who oppose the measure have sent messages to Mr. Cuomo and legislators via the Web site of the New York State Catholic Conference.


A number of anti-abortion groups have also formed a coalition called New Yorkers for Life, which is seeking to rally opposition to the governor’s proposal using social media.


“If you ask anyone on the street, ‘Is there enough abortion in New York?’ no one in their right mind would say we need more abortion,” said the Rev. Jason J. McGuire, the executive director of New Yorkers for Constitutional Freedoms, which is part of the coalition.


Members of both parties say that the issue of reproductive rights was a significant one in November’s legislative elections. Democrats, who were bolstered by an independent expenditure campaign by NARAL, credit their victories in several key Senate races in part to their pledge to fight for legislation similar to what Mr. Cuomo is planning to propose.


Republicans, who make up most of the coalition that controls the Senate, have generally opposed new abortion rights measures. Speaking with reporters recently, the leader of the Republicans, Dean G. Skelos of Long Island, strenuously objected to rewriting the state’s abortion laws, especially in a manner similar to what the governor is seeking.


“You could have an abortion up until the day the child would be born, and I think that’s just wrong,” Mr. Skelos said. He suggested that the entire debate was unnecessary, noting that abortion is legal in New York State and saying that is “not going to be changed.”


The Senate Democratic leader, Andrea Stewart-Cousins of Yonkers, who is the sponsor of a bill that is similar to the legislation the governor is drafting, said she was optimistic that an abortion measure would reach the Senate floor this year.


“New York State’s abortion laws were passed in 1970 in a bipartisan fashion,” she said. “It would be a sad commentary that over 40 years later we could not manage to do the same thing.”


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Daley turns focus toward Gary









Richard M. Daley has kept a low profile since leaving office in 2011.


That doesn't mean he has lost interest in urban issues. The former mayor has turned his attention in a surprising direction, beyond Chicago's borders to one of the most intractable urban tragedies in America: the collapse of Gary, Ind.


"I always believe no part of America should be forgotten, and I think Gary has been forgotten," Daley said.





Daley is using his influence at the University of Chicago, where he is a distinguished senior fellow, to push a modest but growing amount of manpower toward Gary Mayor Karen Freeman-Wilson.


With guidance from Daley and Freeman-Wilson, University of Chicago graduate students are trying to figure out what to do with Gary's abandoned buildings and how to promote greater use of technology to help the city accomplish more with less, among other projects.


The hope is that the students will go on to help other cities after graduation. If successful, the U. of C.-Gary partnership could be replicated in other industrial towns grappling with decline.


Gary spans about 55 square miles, nearly a quarter of the size of Chicago. Yet the steel town's population has plummeted to an estimated 80,000, meaning the city has lost about half its people since 1960. The city's problems have mounted, including abandoned buildings and homes, sagging infrastructure and a declining budget to pay for services.


Outsiders have tried to fix Gary since at least the Lyndon B. Johnson administration. Freeman-Wilson, a former Indiana attorney general, judge and Harvard College and Harvard Law School graduate, has reinvigorated Gary's renewal efforts. And she's unafraid to ask for help.


Immediately after winning the 2011 Democratic primary, Freeman-Wilson called Daley for advice. They met, and Daley invited her to be the first guest speaker at his lecture series at the University of Chicago's Harris School of Public Policy, where Daley has a five-year appointment.


This quarter, 11 students from the university's public policy, business and social services schools are getting course credit for working on projects for Gary.


"It was Mayor Daley's idea," Freeman-Wilson said as she rode from a meeting on Chicago's West Side to Gary. "I had always envisioned getting the support and work from (University of Chicago Law School) alums, because there were issues around codes and things of that nature. It was not until the mayor came up with the idea of using students from the (Harris) School of Public Policy that I said, 'Oh yeah, that would work. That would work very well.'"


Daley does not teach a class at the University of Chicago. He runs an occasional lecture series.


Carol Brown, his last policy chief at City Hall, leads the program and the class, which is called the "Urban Revitalization Project: City of Gary, Ind." Grants from the Chicago-based Joyce and MacArthur foundations help pay administrative costs, including Brown's salary and that of a part-time assistant.


Last quarter's class was divided into three project teams. One team is cataloging Gary's abandoned buildings, which are magnets for crime and eyesores that further depress surrounding property values. Another is trying to recruit pro bono legal and consulting services for the city. And a third is trying to craft a strategy to clean up front stoops and empty lots one block at a time. This quarter's class also is tackling untapped funding opportunities and economic development.


Freeman-Wilson said a major benefit of the partnership is the fresh ideas from students "who aren't jaded by the limitations of government, whereas a 20-year employee might say, 'Oh, no, we can't do that in government because we don't have X, Y and Z.'"


Already their work has prompted more widespread use among Gary employees of a technology that stores and analyzes geographic data. City workers are now using the technology to map potholes, fallen tree limbs and illegal dump sites. That way work crews can be dispatched to neighborhoods where the problems are most severe.


"This partnership encourages urban planners to think broadly about regions instead of cities — greater Chicago instead of the city of Chicago," said Stephen Paul O'Hara, a historian at Xavier University who wrote a book about Gary.


The students operate as consultants. They gather best practices and ideas from cities around the country and then recommend a course of action. At the end of each 10-week quarter, students present their recommendations to Daley, Freeman-Wilson and their staffs. Their grades are based on those presentations and supporting reports.


"I will tell you, it never stops getting nerve-wracking," second-year graduate student Jocelyn Hare said of presenting to Daley. "But it gets easier."


Last spring, Hare, 32, responded to an email seeking student volunteers to conduct preliminary research to test the idea of a partnership. Hare then interned for the city of Gary during the summer. The Harris school paid her $15 an hour. She then enrolled in the first class in the fall and again this winter, when it was opened to graduate students outside of Harris for the first time.





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Off-duty Chicago police officer dies in SUV rollover on Skyway




















Chicago Tribune reporter Peter Nickeas recaps Friday night's breaking news, involving two traffic accidents and one homicide. (Posted Feb. 16th, 2013).




















































A 31-year-old off-duty Chicago police officer who died when the SUV she was driving rolled over on the Chicago Skyway late Friday was on her way to celebrate a new position with the department, according to her family.


Shaunda Bond, 31, was pronounced dead at 1:15 a.m. at the Cook County medical examiner's office. She lived in the 4100 block of South Michigan Avenue in the Bronzeville neighborhood.


The officer's older sister works in the section of the Chicago Police Department that investigates fatal accidents and answered the phone when officers on the Skyway called to notify them of the wreck, police said.








Bond was on her way to meet her cousin Daphne Flores and three other friends at a restaurant to celebrate the woman getting a spot on a tactical response unit, said Flores. Police could not immediately confirm the information.


Bond joined the police department in December 2009 and was assigned to the South Chicago District, which covers the area from 75th Street south to 138th, between roughly Woodlawn Avenue and the state line.


"She loved helping people, she was always able to help somebody," said Flores. "She just had a warm heart."


After college, Bond worked at a rental car company until a spot opened up at the police department, Flores said. She said Bond either always wanted to become a police officer or a teacher. She had two sisters and grew up on the South Side, graduating from Longwood Academy high school.


"She liked working with people, she loved public service work," Flores said.


The crash happened about 10:40 p.m. near 81st Street on the Skyway when the 2003 Land Rover SUV Bond was driving flipped over.


Bond was the lone occupant in the SUV, which was the only vehicle involved in the crash.


According to a witness interviewed by police, her SUV was seen traveling at a high rate of speed before it hit a concrete barrier and rolled.


pnickeas@tribune.com
Twitter: @peternickeas


csadovi@tribune.com






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Epic regrets Lil Wayne lyric about slain civil rights figure






LOS ANGELES (Reuters) – Epic Records has apologized to the family of Emmett Till, whose 1955 murder spurred the U.S. civil rights movement, over a graphic reference by rapper Lil Wayne and promised to delete the lyrics upon its release, the company said on Thursday.


Epic Chairman L.A. Reid told the family it was regretful that a remix of the song “Karate Chop” by rapper Future, in which Lil Wayne likens the beating of African-American Till to sex, had been leaked on the Internet.






“He (Reid) apologized to me and our family and stated the song is being pulled,” said a post on the Facebook page of the Mamie Till Mobley Memorial Foundation on Wednesday. Mobley, who died in 2003, was Till’s mother.


The song reportedly first appeared online over the weekend.


“Mr. Reid stated the song was leaked out and he had not heard the lyric,” the statement added. “He is a man of integrity that values our family’s legacy and wouldn’t allow such a heinous usage of Emmett Till’s name or dishonor his memory.”


The foundation, which was founded by Till’s cousin Airickca Gordon-Taylor, said that it had yet to hear from Lil Wayne.


Reid, an African American, is one of the music industry’s highest-profile executives and was a judge on the Fox singing competition “The X Factor” for two seasons.


Till, from Chicago, was beaten and murdered in 1955 at the age of 14 for allegedly whistling at a white woman in the village of Money, Mississippi, where he was visiting family.


An all-white jury acquitted two white men of Till’s murder, sparking national outrage. The trial is credited with mobilizing the civil rights movement and drawing attention to racial injustice and violence in the American South.


Epic Records called the song an “unauthorized remix” and promised to delete the reference from the official version.


“Out of respect for the legacy of Emmett Till and his family and the support of the Reverend Jesse L. Jackson, Sr. founder and president of the Rainbow PUSH Coalition, we are going through great efforts to take down the unauthorized version,” the record company said in a statement.


Epic Records is owned by Sony Music Entertainment, a division of Sony Corp.


(Reporting by Eric Kelsey; Editing by Jackie Frank)


Music News Headlines – Yahoo! News





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Livestrong Tattoos as Reminder of Personal Connections, Not Tarnished Brand





As Jax Mariash went under the tattoo needle to have “Livestrong” emblazoned on her wrist in bold black letters, she did not think about Lance Armstrong or doping allegations, but rather the 10 people affected by cancer she wanted to commemorate in ink. It was Jan. 22, 2010, exactly a year since the disease had taken the life of her stepfather. After years of wearing yellow Livestrong wristbands, she wanted something permanent.




A lifelong runner, Mariash got the tattoo to mark her 10-10-10 goal to run the Chicago Marathon on Oct. 10, 2010, and fund-raising efforts for Livestrong. Less than three years later, antidoping officials laid out their case against Armstrong — a lengthy account of his practice of doping and bullying. He did not contest the charges and was barred for life from competing in Olympic sports.


“It’s heartbreaking,” Mariash, of Wilson, Wyo., said of the antidoping officials’ report, released in October, and Armstrong’s subsequent confession to Oprah Winfrey. “When I look at the tattoo now, I just think of living strong, and it’s more connected to the cancer fight and optimal health than Lance.”


Mariash is among those dealing with the fallout from Armstrong’s descent. She is not alone in having Livestrong permanently emblazoned on her skin.


Now the tattoos are a complicated, internationally recognized symbol of both an epic crusade against cancer and a cyclist who stood defiant in the face of accusations for years but ultimately admitted to lying.


The Internet abounds with epidermal reminders of the power of the Armstrong and Livestrong brands: the iconic yellow bracelet permanently wrapped around a wrist; block letters stretching along a rib cage; a heart on a foot bearing the word Livestrong; a mural on a back depicting Armstrong with the years of his now-stripped seven Tour de France victories and the phrase “ride with pride.”


While history has provided numerous examples of ill-fated tattoos to commemorate lovers, sports teams, gang membership and bands that break up, the Livestrong image is a complex one, said Michael Atkinson, a sociologist at the University of Toronto who has studied tattoos.


“People often regret the pop culture tattoos, the mass commodified tattoos,” said Atkinson, who has a Guns N’ Roses tattoo as a marker of his younger days. “A lot of people can’t divorce the movement from Lance Armstrong, and the Livestrong movement is a social movement. It’s very real and visceral and embodied in narrative survivorship. But we’re still not at a place where we look at a tattoo on the body and say that it’s a meaningful thing to someone.”


Geoff Livingston, a 40-year-old marketing professional in Washington, D.C., said that since Armstrong’s confession to Winfrey, he has received taunts on Twitter and inquiries at the gym regarding the yellow Livestrong armband tattoo that curls around his right bicep.


“People see it and go, ‘Wow,’ ” he said, “But I’m not going to get rid of it, and I’m not going to stop wearing short sleeves because of it. It’s about my family, not Lance Armstrong.”


Livingston got the tattoo in 2010 to commemorate his brother-in-law, who was told he had cancer and embarked on a fund-raising campaign for the charity. If he could raise $5,000, he agreed to get a tattoo. Within four days, the goal was exceeded, and Livingston went to a tattoo parlor to get his seventh tattoo.


“It’s actually grown in emotional significance for me,” Livingston said of the tattoo. “It brought me closer to my sister. It was a big statement of support.”


For Eddie Bonds, co-owner of Rabbit Bicycle in Hill City, S.D., getting a Livestrong tattoo was also a reflection of the growth of the sport of cycling. His wife, Joey, operates a tattoo parlor in front of their store, and in 2006 she designed a yellow Livestrong band that wraps around his right calf, topped off with a series of small cyclists.


“He kept breaking the Livestrong bands,” Joey Bonds said. “So it made more sense to tattoo it on him.”


“It’s about the cancer, not Lance,” Eddie Bonds said.


That was also the case for Jeremy Nienhouse, a 37-year old in Denver, Colo., who used a Livestrong tattoo to commemorate his own triumph over testicular cancer.


Given the diagnosis in 2004, Nienhouse had three rounds of chemotherapy, which ended on March 15, 2005, the date he had tattooed on his left arm the day after his five-year anniversary of being cancer free in 2010. It reads: “3-15-05” and “LIVESTRONG” on the image of a yellow band.


Nienhouse said he had heard about Livestrong and Armstrong’s own battle with the cancer around the time he learned he had cancer, which alerted him to the fact that even though he was young and healthy, he, too, could have cancer.


“On a personal level,” Nienhouse said, “he sounds like kind of a jerk. But if he hadn’t been in the public eye, I don’t know if I would have been diagnosed when I had been.”


Nienhouse said he had no plans to have the tattoo removed.


As for Mariash, she said she read every page of the antidoping officials’ report. She soon donated her Livestrong shirts, shorts and running gear. She watched Armstrong’s confession to Winfrey and wondered if his apology was an effort to reduce his ban from the sport or a genuine appeal to those who showed their support to him and now wear a visible sign of it.


“People called me ‘Miss Livestrong,’ ” Mariash said. “It was part of my identity.”


She also said she did not plan to have her tattoo removed.


“I wanted to show it’s forever,” she said. “Cancer isn’t something that just goes away from people. I wanted to show this is permanent and keep people remembering the fight.”


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Illinois corporate tax credits swelled to $161 million 2011









When lawmakers raised taxes on Illinois residents and businesses, they also increased corporate income tax breaks for a select group of companies.


In 2011, businesses were eligible to claim about $161 million in tax credits — double from the prior year — mostly because of the increase to 5 percent from 3 percent in the state's personal income tax rate, which is a factor in determining the value of the incentives. The boost marked the largest increase in the Economic Development for a Growing Economy tax credit program, the state's main economic development program, since its creation in 1999.


Deere & Co., Boeing Co. and Caterpillar Inc., whose leader severely criticized lawmakers for tax hikes, were among dozens of companies that received more robust tax breaks. Some companies' deals also allowed them to be in line to receive tax incentives even while laying off workers or lowering wages.








The EDGE program allows a business to claim a credit against its corporate income tax liability if it agrees to create and/or retain jobs and make an investment in the state of at least $1 million, for companies with fewer than 100 workers, and at least $5 million for larger companies.


Once accepted into the program, which typically lasts 10 years, a company applies on an annual basis for a tax credit certificate, similar to a voucher, which it can claim when it files its taxes.


Marcelyn Love, a spokeswoman with the Department of Commerce and Economic Opportunity, which administers the program, said that under the tax credit program companies make investments and employ workers, practices that otherwise would not have occurred without the credits.


"Both the private investment and the increased employment significantly increase tax revenue collection for the state in excess of the credits given," Love said in an email. Far from adding to the tax burden, she added, these incentives actually generate revenue for the state. "Further, most of these tax credits pay for themselves within two years."


The certificates are the only way to gauge the potential cost and scope of the program, because tax filings are not public. The Tribune obtained the 2011 certificates data, the latest year available, under the state's Freedom of Information Act. Companies have as many as five years to redeem a certificate.


After a deal is finalized, a company has two years to meet its side of the bargain and begin applying for certificates. Thus, the increase in the total value of 2011 tax breaks is also the result of companies receiving certificates for the first time. For example, Ford Motor Co. began applying for its certificates in 2010 from a 2007 deal.


During Gov. Pat Quinn's administration, companies have received increasingly larger deals. Many have been for retaining jobs, according to a Tribune analysis. In 2011, Sears Holdings Corp. was offered a tax credit package worth $150 million over 10 years to keep its headquarters in the state and retain at least 4,250 full-time jobs. The company, which after the deal was announced revealed that it was closing 125 stores nationwide, has yet to apply for a certificate. Five of those stores were in Illinois. State officials have said that during a recession, when few jobs are created, it's important to focus on retaining workers.


Chris Brathwaite, a Sears spokesman, said the company's employment level at its headquarters is higher than the more than 6,000 jobs it had when the deal was approved, but he declined to provide figures.


In general, the value of a certificate equals the number of jobs created and/or retained, multiplied by wages tied to those jobs and the state's personal income tax rate.


That means companies that didn't add one worker and kept wages at the 2010 rate received a 67 percent boost to their 2011 corporate income tax break. Just like individuals, corporations also registered a tax rate increase in 2011. Lawmakers set the new corporate income tax rate at 7 percent, up from 4.8 percent. The increases in breaks partially offset that hike.


The formula under which companies become eligible to receive tax breaks was aimed at encouraging job creation and increasing employee wages. Still, the 2011 data revealed that some companies made deals to allow job cuts and still qualify for incentives, a practice known as "normal attrition."


A case in point is Motorola Mobility. For the past two years, Motorola Mobility has qualified for certificates worth a total of $22.6 million while slowly chipping away at its workforce. Late last year, the smartphone-maker, which was acquired by Google Inc. in May, announced it was laying off 20 percent of its global workforce. Locally, the company cut hundreds of workers, bringing its Illinois head count to about 2,300, a figure that would make it ineligible for a 2013 certificate unless it boosts its workforce before the end of the year.


The Department of Commerce and Economic Opportunity said the EDGE program played a crucial role in keeping Motorola Mobility in Illinois after it was acquired by Google. Its presence, the agency said, is drawing more technology investment and jobs to the state.


A state lawmaker wants the state to end the wiggle room practice, cap at $100 million the annual amount of tax breaks awarded and remove the investment bar so more small and medium-size businesses can qualify for breaks.


"Large multinationals are getting all the breaks," said Rep. Jack Franks, D-Marengo, adding that his focus is to modernize the program and increase accountability.


Franks' House Bill 1336 would also limit the length of the tax breaks to five years and require that companies pay workers at least the median salary of their occupation as determined by federal data. The bill also eliminates the provision requiring companies to make a capital investment in the state of at least $1 million or $5 million, depending on their size. And it creates a nine-member board to oversee the deals, with members appointed by the governor and approved by the state Senate.


Franks said that the Department of Commerce and Economic Opportunity shouldn't promote the program while also negotiating deals with companies, because it creates a conflict of interest.





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Obama arrives in Chicago to address economy, violence









President Barack Obama is in Chicago today to talk about helping struggling families and also touch on the wide-ranging approach he thinks the country should take to fighting gun violence.


Air Force One landed at 1:23 p.m. at O'Hare International Airport. 


The president, wearing a black overcoat, walked off the jet accompanied by many members of the Illinois Congressional delegation,

Obama was greeted by greeted by Mayor Rahm Emanuel, whom he patted on the back before boarding the Marine One helicopter.

The president is headed to Hyde Park Academy this afternoon, where his remarks will be devoted to the “ladders of opportunity” he thinks will help working families, like raising the federal minimum wage and investing in education, a senior administration official has said.





Before speaking at the school, Obama plans to meet privately with 16 students involved in a youth anti-violence program, a White House spokesman said.

He’ll also talk directly about gun violence, aides say, in a visit that comes just days after the funeral of Hadiya Pendleton, a teenager killed in a shooting a mile from the Obamas’ South Side home. After attending the services for Pendleton, first lady Michelle Obama invited her parents to join her in the balcony for the president’s State of the Union address Tuesday night.


At the school, members of the Pendleton family had arrived. Also on hand were members of the Wortham family. Chicago Police Officer Thomas Wortham IV was fatally shot in front of his parents’ Chatham home in 2010 when attackers tried to rob him of a new motorcycle.


Religious leaders including the Rev. Byron Brazier, pastor of Apostolic Church of God in Woodland, and the Rev. Michael Pfleger, pastor of St. Sabina Catholic Church, are in the audience.


Among the city's political class, Obama adviser David Axelrod and Chicago Alds. Pat Dowell, Leslie Hairston and Willie Cochran were there. Mayor Rahm Emanuel, Gov. Pat Quinn and U.S. Sen. Dick Durbin are scheduled to attend.


The president is expected to speak about 2:40 p.m. and later head to Florida for some rest and relaxation during the President's Day weekend, the White House has said.

But the president’s emphasis this week is on promoting job creation and economic recovery, aides say, in the belief that solutions to violence and other social problem hang in the balance.

He and Vice President Joe Biden have made the case in recent weeks that the solution to gun violence isn’t just about gun control, but also about improving access to educational opportunities, social programs and mental health services.

To clear these pathways to the middle class, Obama on Tuesday night proposed creating “promise zones” in 20 struggling communities, helping them develop plans and leverage federal resources to increase economic activity.

He also proposes a plan to support summer and year-round jobs for low-income youth and to put long-term unemployed and low-income adults back to work.

Clergy, activists, parents and others in Chicago have said they are eager to hear a plan of action from the president to curb violence.

Annette Nance-Holt, whose 16-year-old son Blair was killed in 2007, said that if the president can set up a task force in Newtown, Conn., where a gunman killed 20 children and six adults at an elementary school Dec. 14, he can do the same in Chicago.

Cathy Cohen, founder of the Black Youth Project, said she hopes to hear a plan on how to get illegal guns off the street and how to get young people working.

Clergy said they hope the president talks about broader factors contributing to the city's violence, such as a high unemployment rate and a lack of adequate funding for local schools.

Chicago's homicides in recent years have numbered far below their annual total of more than 900 in the early 1990s. But while Chicago topped 500 homicides last year, the total fell below 500 in New York City, which has about three times the population of Chicago.


White House pool reports contributed.





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