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Partnerships Redefined: Chicago’s New Opportunities Donald Haider Overview presented by: Julie Rada June 28, 2010 PUB650PR

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Page 1: Chicago Ppp

Partnerships Redefined:Chicago’s New OpportunitiesDonald Haider

Overview presented by:Julie RadaJune 28, 2010PUB650PR

Page 2: Chicago Ppp

The Situation

1975 – New York City in the midst of a major financial crisis

The nation looked to Chicago Remained stable while urban conditions

were deteriorating elsewhere No municipal labor strife No budget deficits No lack of public/private leadership The envy of other major large cities

Page 3: Chicago Ppp

The Situation

1980’s – Chicago’s partnership model had fallen into disrepute Local press – the “Vietnamization of

Chicago” National media - “Beirut on the Lake”

What happened? What is happening?

Page 4: Chicago Ppp

Economics

1920s: Exemplar of nineteenth-century city Completely transitioned from

agricultural to manufacturing basis of wealth

Productive power Massed population Industrial technology

Page 5: Chicago Ppp

Economics

1950s – 1970s: Decomposition of industrial base 1957 – private sector jobs peaked at 1.4 million ±120,000 jobs lost during 1979-83 economic

downturn 1983 – 1.1 million jobs Stockyards & appliance manufacturing

disappeared Steel & fabricated metals dropped Machine dye, tools, and food processing declined

Page 6: Chicago Ppp

Economics

1950s – 1970s: Decomposition of industrial base (continued) Service sector increased Industrial firms declined by 30% Manufacturing employment fell more than

40% 1977 – 1983 change in property tax

base: 26% decline in industrial property assessment 50% increase in commercial component

Page 7: Chicago Ppp

Economics

1973-76 recession – Midwest had lowest unemployment rates through 1978

1980-83 recession – Chicago was the most severely affected area

Employment rate dropped from 60% in the 1960s to 45% in 1983

Page 8: Chicago Ppp

Economics

Impact to Chicago business community Collapse of International Harvester, the Continental

Illinois Bank, First Federal Savings, as well as several steel firms

Losses to merger/acquisitions, ownership changes or corporate relocation: Marshall Field, Montgomery Ward, Sunbeam, Chemetron, Fansteel, Transunion, and Northwest Industries

Old families, wealth, and corporate traditions faded Major industrialists, retailers, and packers departed New wealth and power derived from real estate

interests and financial exchanges

Page 9: Chicago Ppp

Demographics

1950: Population peaked at 3.6 million 1950s -2% 1960s -5% 1970s -10%

1982: Population fell below 3 million lowest in 60 years Los Angeles replaced Chicago as second

largest city in the nation

Page 10: Chicago Ppp

Demographics

1923: Polish, Irish, German, Scandinavian, and Eastern European

1950 – 1970: Population remained stable in size, but underwent change in dynamics Out-migration of predominantly white,

middle-class Immigration from the South, Puerto Rico,

Mexico and Asia

Page 11: Chicago Ppp

Demographics

1970s: population became smaller, more black, and more poor White population dropped by 600,000 (a

reduction from the 700,000 out-migration during 1960s)

Black population increased from 33% to 40%

Hispanic composition rose to 14% Number of residents living below the

poverty line grew by nearly 40%

Page 12: Chicago Ppp

Demographics

2006-2008 American Community Survey Non-Hispanic Whites 31.5% Black/African American 34.6% Hispanic/Latino 27.8%

2000 Census 19.6% of the population lived below the

poverty line

Page 13: Chicago Ppp

Politics

The ward system Council composed of aldermen▪ One from each of 50 wards▪ Elected on nonpartisan basis

Page 14: Chicago Ppp

Politics

The machine Irish Catholic dominance 1933 – 1979 (46

years) The Daley era – 1955 – 1976 (21 years)▪ Public-private partnerships▪ Strengthened mayor’s role in city government▪ Upgraded municipal services▪ Mutual self-interest with business and labor elites▪ Patronage benefitted ward committeemen▪ Effective political-government-private sector interest group

system▪ Highly personal system dependent upon interpersonal skills

as well as formal powers of public office

Page 15: Chicago Ppp

Politics

Shift in socioeconomic influences 1950s & 1960s: Political divisions ran along

party lines and socioeconomic differences▪ Lower classes in inner-city wards supported the

machine▪ Outlying middle-class supported Republicans and

independent challenges Late 1960s into 1970s: Race began to replace

class and party as basic political divisions▪ The most racially threatened White wards backed the

organization against Black disaffection with the party▪ Partisan labels became increasingly meaningless

Page 16: Chicago Ppp

Politics

Shift in socioeconomic influences (continued) Signs of change▪ 1965-66: Dr. Martin Luther King, Jr.’s open-housing

marches▪ 1968: West Side riots▪ Anti-Vietnam demonstrations during 1968 Democratic

Party Convention▪ Restlessness of Young Turks within Democratic Party▪ Defection of Daley’s newspaper support▪ Neighborhood discontent over downtown focus of City Hall▪ The negative impact to areas of the city as a result of a

changing urban economy

Page 17: Chicago Ppp

Politics

Shift in socioeconomic influences (continued) 1979: Administration paralyzed by worst

snowstorm in city history▪ Coalition of angry Blacks, lakefront liberals,

and dissident white ethnic groups united against City Hall▪ Elected Jane Byrne mayor, ending the

Machine’s domination▪ Byrne remained aligned with segments of the

old machine

Page 18: Chicago Ppp

Politics

Shift in socioeconomic influences (continued) 1983: Harold Washington elected as first

Black mayor▪ Washington declared the machine “to be

dead”▪ White politicians seized control of the City

Council, resulting in “Council Wars”▪ Served until his death in 1987

Page 19: Chicago Ppp

Politics

1989 – present: Mayor Richard M. Daley

Page 20: Chicago Ppp

Public-Private Partnerships

Historical Rebuilt city after the 1871 Chicago fire Reversed the flow of the Chicago River World’s Columbian Exposition in 1893 1909 Burnham plan sponsored by

Commercial Club of Chicago – economic and physical development

1933-34 Century of Progress

Page 21: Chicago Ppp

Public-Private Partnerships Machine Era

Chicago 21 / Dearborn Park Project helped preserve the Loop (Chicago’s central business district)

Possessed basic ingredients for successful public-private partnerships:▪ Participatory civic culture▪ Community vision▪ Effective civic organizations▪ Key group network▪ Civic entrepreneurs▪ Policy continuity

Page 22: Chicago Ppp

Public-Private Partnerships

Machine Era (continued) Grass-roots reaction against “downtown

attention” Growing demand for partnerships that

address neighborhood development, community services, housing and jobs

Page 23: Chicago Ppp

Public-Private Partnerships Machine Era (continued)

1992 World’s Fair▪ Gained momentum under Mayor Jane Byrne in 1980▪ Enlisted support from Chicago’s top chief

executives and officials of major newspapers, labor unions, financial institutions, and city, state, and Federal governments

▪ Tens of millions of dollars expended for architectural renderings, intergovernmental accords, planning and feasibility studies, affirmative-action agreements, marketing and numerous public hearings

Page 24: Chicago Ppp

Public-Private Partnerships

Machine Era (continued) 1992 World’s Fair (continued)▪ Perceived as an answer to infrastructure and

unemployment problems▪ Would be the culmination of the city’s

transformation from a predominantly industrial economy to an international service center▪ Failed due to lack of leadership, shared vision,

and trust

Page 25: Chicago Ppp

Public-Private Partnerships Post Machine

Commercial Club of Chicago▪ Business-led task forces to capitalize on

economic growth opportunities▪ Chicagoland Enterprise Center▪ Enhance small business access to managerial and

financial resources

▪ Financial Planning Committee▪ Develop a strategic plan for Chicago’s fiscal stability

▪ Information Industry Council▪ Promote the area’s information-telecommunications

position

Page 26: Chicago Ppp

Public-Private Partnerships Post Machine (continued)

Chicago United▪ Coalition of black, white, and Hispanic business

leaders formed in the 1960s in response to urban upheavals

▪ School stabilization, minority purchasing, summer youth employment, and overall urban economic development

Chicago Central Area Committee▪ Since 1950s had focused on the well-being of the

central business district▪ Redefined its master plan to include adjacent

neighborhood development

Page 27: Chicago Ppp

Public-Private Partnerships Post Machine (continued)

Chicago Energy Savers Fund▪ Utilities response to more deregulated environment▪ Promotes housing preservation and energy

conservation Community Equity Corporation▪ Illinois Bell in partnership with local foundations▪ Provides equity for small businesses in Chicago’s

neighborhoods Chicago Association of Neighborhood

Development Organizations (CANDO)▪ Key linkage in business-community partnerships

Page 28: Chicago Ppp

Public-Private Partnerships

Post Machine (continued) Additional issue specific partnerships:▪ Rehabilitation lending (housing)▪ Public schools and human resource

development▪ Rebirth of civic groups having narrow focus

and limited in effectiveness

Page 29: Chicago Ppp

Transition

“Chicago is a study of contrasts – ethnic diversity and racial tensions, parochialism and internationalism, individualism and bold collective actions, old and new politics. Its transition has been noisier, livelier, and tougher than the transitions in other cities. Opportunities have been missed in Chicago, but more promising and perhaps durable foundations are emerging.” (Haider, p.12)