Chicago Business News Roundup: Major Developments and Announcements

Strategic Insights -

Chicago's West Side is gearing up for a new major motion picture production facility, with the city's Community Development Commission set to vote on a proposed $45-million movie-making center. The facility, which would be built by Raleigh Enterprises and Stephen Allison, would be a significant boost to the city's entertainment industry. Meanwhile, SBC Communications is requesting a bigger rate hike from the Illinois Commerce Commission, citing errors in the June 9 order that granted a 30% increase. The commission had previously approved a $3.75 rate boost, but SBC claims this is still too low.

Key Takeaways:

  • The proposed movie-making center would be built on the 4300 block of West Roosevelt Road, a former dump site.
  • The facility would be a five-soundstage, 182,000-square-foot facility, and construction could begin by year-end.
  • The city is proposing $10.5 million in tax-increment financing subsidies for the project.
  • The SBC rate hike request is part of a broader controversy over wholesale telephone rates in Illinois.
  • AT&T Corp. and other SBC competitors have also petitioned the commission to reconsider the rate increase.
  • Royal Fox Country Club has merged with the Blackhawk Golf Club, acquiring the competing club for approximately $4 million.
  • John Weiss, managing partner of Royal Fox, plans to invest an additional $3 million in course improvements over the next two years.
  • Jamba Juice Co. plans to open four more area stores later this year and another in 2005.
  • Sonic Network Inc. is suing Motorola Inc. for $160 million over ring-tone technology used in some Motorola cellular telephones.
  • Publishers Circulation Fulfillment Inc. will lay off 88 workers from its Orland Park office.
  • The Illinois Department of Commerce and Economic Opportunity is forming a blue-ribbon advisory group to vie for the $1-billion research facility for the U.S. Department of Energy.
  • First Midwest Bank has agreed to improve controls designed to prevent money laundering, after a regulatory review turned up "deficiencies."
  • Eagle Test Systems Inc. is planning to go public with a $166.8 million sale of stock.
  • Chicago attorney Todd A. Smith was named president of the American Trial Lawyers Assn.
  • United Airlines employees will receive a bonus of 1.25% of their monthly pay, due to the carrier's on-time performance for the second quarter.

Statistics:

  • $45 million: proposed cost of the movie-making center
  • 182,000 square feet: size of the proposed movie-making facility
  • $10.5 million: city's proposed tax-increment financing subsidies for the project
  • 30%: increase in wholesale telephone rates granted by the Illinois Commerce Commission
  • $3.75: rate boost granted by the commission
  • $9 per telephone line: amount SBC had sought to increase its wholesale rate
  • 88: number of workers being laid off by Publishers Circulation Fulfillment Inc.
  • $166.8 million: amount of stock to be sold by Eagle Test Systems Inc. in its IPO
  • $9.6 million: net income of Eagle Test Systems Inc. last year
  • $55.8 million: revenues of Eagle Test Systems Inc. last year
  • 62,500: number of United Airlines employees eligible for bonuses
  • $25 million: aggregate amount of bonuses paid to United Airlines employees in the first quarter

Sources:

  • "City Studio Project Moving Ahead Again" (CR Business)
  • "SBC Requesting Big Rate Hike" (CR Business)
  • "Country Clubs: St. Charles Clubs Merge" (CR Business)
  • "Jamba Juice Expands in City, Suburbs" (CR Business)
  • "Motorola in Ring-Tone Spat" (CR Business)
  • "Publishers Circulation Cuts 88 Jobs" (CR Business)
  • "Argonne: Chase Begins for $1-Billion Project" (Washington Post)
  • "First Midwest Bank Agrees to Beef Up Money Laundering Safeguards" (CR Business)
  • "Eagle Test Systems Files for IPO" (CR Business)
  • "Trial Lawyers: Local Lawyer Named to Head National Lobby" (CR Business)
  • "UAL: Employees Land Bonuses" (CR Business)