chicago ppp
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Partnerships Redefined:Chicago’s New OpportunitiesDonald Haider
Overview presented by:Julie RadaJune 28, 2010PUB650PR
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
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?
Economics
1920s: Exemplar of nineteenth-century city Completely transitioned from
agricultural to manufacturing basis of wealth
Productive power Massed population Industrial technology
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
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
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
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
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
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
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%
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
Politics
The ward system Council composed of aldermen▪ One from each of 50 wards▪ Elected on nonpartisan basis
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
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
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
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
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
Politics
1989 – present: Mayor Richard M. Daley
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
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
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
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
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
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
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
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
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
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)
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