Businesses Moving from Illinois

[Fernando]

There use to be 2 SBUX in town to get coffee. Now there's 1 and about 7-8 other mom/pop or other franchise coffee shops.

I don't know how they do it. They're buying expensive out lots for $500K to $1M and then putting a small drive-thru on it. Probably total of $1.5 - $2M to sell coffee and other minor food items. But I suppose when you sell a cup of coffee/coffee clones for $5-$10, there's quite a bit of profit.

Before Covid, I was thinking of buying Starbuck properties, but I didn't like them being NN. I prefer NNN.
Cap rates were acceptable being a loyal customer and could see how they had growth potential back then.
Now I don't like to invest in companies/properties if I see slow or no potential.

 

[Terrel L. Shields]

When $2 worth of coffee beans can brew 50 cups and sell for $5, the profit margin is unreal, and unsustainable. Someone figured out that coffee can be sold for $2 and be very profitable indeed without picking some prime real estate to site the building.

 

[Terrel L. Shields]

 

[Terrel L. Shields]

And it isn't just Chiciago

Without reforms, pension insolvency will eat Chicago alive

If Chicago’s pension systems become insolvent, the city will have to reduce benefits or make serious cuts to city services. The only way out is constitutional reform.

www.illinoispolicy.org

 

[TerryRohrer]

And it isn't just Chiciago

Without reforms, pension insolvency will eat Chicago alive

If Chicago’s pension systems become insolvent, the city will have to reduce benefits or make serious cuts to city services. The only way out is constitutional reform.

www.illinoispolicy.org

I suspect that it is just a matter of time before this becomes an "American" problem.

• Postal Service Reform Act of 2022: This law provided substantial financial relief, including covering retiree health benefits for postal workers, which Congress previously mandated pre-funding for, creating massive unfunded liabilities.
• American Rescue Plan (ARPA) (2021): This bill created an $86 billion fund to rescue critically underfunded multi-employer pension plans (common in sectors like trucking, retail), directly using federal funds to cover shortfalls for millions of retirees, making it a significant taxpayer-funded bailout.

The basis for such programs, and ensuing results will likely mirror these...money done been spent, problem bigger than ever.
"Three government reports since April 20, 2023 show that the financial assumptions Congress used to enact PSRA were way off. The new reports also confirm Congress should have been more diligent in demanding answers from USPS, as well as in demanding true reforms.

For starters, USPS now says it will lose $56 billion more than it represented to Congress before the 2022 votes."

https://thehill.com/opinion/congress-blog/3993213-the-imploding-us-postal-service-bailout/

 

[ucbruin]

Why do so many businesses move....
But not move to AR, MS, LA....

 

[Terrel L. Shields]

But not move to AR, MS, LA....

• U.S. Steel is building a new $3 billion, technologically advanced steel mini-mill in Osceola, which represents the largest economic development project in the state's history.
• Envirotech Vehicles, based in California, relocated its manufacturing facility to Osceola in 2022 to produce zero-emission electric vehicles.
• AVAIO Digital Partners is developing a multi-phase data center campus near Little Rock with a first phase investment of $6 billion.
• Montrose Environmental Group, originally founded in California, moved its headquarters to North Little Rock after an acquisition in 2020.
• Inuvo Inc., an advertising technology company, moved to Arkansas from New York in 2013.
• Weyerhaeuser Company is investing $500 million in a new TimberStrand® facility near Monticello and Warren.
• Highbar LLC is constructing a $500 million rebar steel mini-mill in Osceola.

Mississippi

• • Liebherr: Swiss manufacturer expanding in Tupelo with significant investment and job creation.
  • Biewer Lumber: Major $130 million investment in Montgomery County.
  • Milwaukee Tool: Expanded operations in Grenada County.
• Automotive: Nissan, PACCAR, and Toyota have substantial facilities, supported by numerous parts manufacturers.
• Food Processing: Tyson Foods invested in Warren County.
• Logistics/Energy: Significant investments at the BWC Terminal Facility near the Chevron Refinery.