(Crain's) — An Ohio steelmaker is in line to receive more than $1 million in financial incentives from the city of Chicago to move its headquarters to a downtown office tower.
JMC Steel Group Inc. plans to bring 50 people from its corporate offices in suburban Cleveland to the 26th floor of the former AT&T Corporate Center, at 227 W. Monroe St., according to people familiar with its plans. The Community Development Commission on Tuesday will consider a proposal for the city to provide $1.1 million in tax-increment financing to help pay for the construction of JMC's offices, the people say.
The move would represent another victory for Mayor Rahm Emanuel, who has made a series of new-job announcements since he took office in May. Last week, the mayor and Seaton Corp. announced plans by the Chicago-based staffing and recruitment firm to add 400 jobs here.
(See related story: Seaton Corp. to add 400 Chicago jobs.)
In addition to the 50 jobs that will move from JMC's Beachwood, Ohio, headquarters, the company, which makes steel pipes and tubes, plans to retain 50 corporate jobs already in Chicago that could have moved to Ohio.
A JMC subsidiary, Atlas Tube, has its headquarters at 1855 E. 122nd St., while another subsidiary, Wheatland Tube Co., operates a plant at 4435 S. Western Blvd. In all, JMC employs about 300 manufacturing workers in Chicago.
A JMC representative did not return phone messages left at the firm's headquarters.
Earlier this year, JMC Executive Vice-chairman Barry Zekelman and his family acquired a majority stake in the company from Carlyle Group, a big Washington, D.C.-based private-equity firm,
In March, Mr. Zekelman told Metal Bulletin, a trade publication, that he planned to grow the company through acquisitions.
“We'll keep doing our thing,” he said. “But I think with now having ultimate control of the company, I'll probably try and really look at acquisitions in a much more aggressive way if they make sense.”
The state of Illinois is also providing $2 million in tax credits through the Economic Development for a Growing Economy Program, says a spokeswoman for the Department of Commerce and Economic Opportunity. A spokesman for Gov. Pat Quinn was not available late Monday.
JMC will occupy 29,000 square feet in the former AT&T building, a 60-story, 1.6-million-square-foot tower now known as Franklin Center. The building is 81% leased, according to CoStar Group Inc., a real estate data provider.
Source: http://www.chicagobusiness.com/article/20110913/NEWS05/110919981/steel-company-moving-hq-to-chicago
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