House drops assault weapon ban plan, may tackle pension reform

The clock is ticking for Illinois lawmakers to come to an agreement on the pension crisis. CBS 2's Courtney Gousman reports.









SPRINGFIELD — With time running short in the lame-duck session, state lawmakers on Sunday dropped hot-button issues dealing with guns and marijuana but kept alive hopes of reforming pensions and giving driver's licenses to illegal immigrants.

The slimmed-down agenda unfolded rapidly as the House, returning to the Capitol for the first time in a month, pulled an assault weapons ban from consideration and the sponsor of legislation to allow Illinoisans to use marijuana for medical purposes said the chances of quick passage is unlikely.


The spotlight on whether Democratic Gov. Pat Quinn and legislators can come together on financial changes to the state's $96.8 billion government worker pension debt intensified Sunday. House Republican leader Tom Cross of Oswego signed onto a plan offered by two House Democrats and urged GOP members to support it.








Still, Cross acknowledged that Senate President John Cullerton believes a different measure is the only one that meets a state constitutional prohibition against impairing or diminishing public pensions. Cullerton's version, previously passed by the Senate, offers state employees a trade of access to state health care in return for a reduction in retirement benefits.


"Nobody has any idea what the court's going to do," Cross said. "We all have lawyers. There are a lot of lawyers in Chicago. People have opined on what works and doesn't work. The reality is, nobody knows."


Quinn spokeswoman Brooke Anderson said the administration, which wants the package passed before a new Legislature is seated Wednesday, is "encouraged with the momentum."


The pension proposal's fate is uncertain should it pass the House. The Senate went home Thursday but Cullerton left open the possibility of coming back. Cullerton spokeswoman Rikeesha Phelon said senators would return to Springfield Tuesday "to review and hear" a significant pension reform bill if one is passed by the House.


"I can't make any predictions beyond that," she said.


When the governor and legislative leaders met Saturday, Cullerton said at various points he would lobby against the House plan, Cross said. But Cross also said Cullerton indicated that he would allow for a Senate vote if the pension measure passed the House.


Still, if Cullerton balks at the House pension plan, Springfield could devolve into an all-too-familiar political game: The House passes one version of legislation, the Senate passes another, lawmakers pat themselves on the back and then blame the other chamber for failing to achieve needed reform.


Among the key features of the House plan is a freeze on cost-of-living increases for all workers and retirees for as long as six years, although the length of time was still under discussion Sunday night. Once the cost-of-living bumps resume, they would apply only to the first $25,000 of pensions. The inflation adjustments also would not be awarded until a person hits 67, a major departure among public employees who have been allowed to retire much earlier in some cases and begin reaping the benefits of the annual increases immediately.


Under the proposal, employee contributions to pensions would increase 1 percentage point the first year and 1 percentage point the second year. A lid would be put on the size of the pensionable salary based on a Social Security wage base or their current salary, whichever is higher.


The goal is to put in place a 30-year plan that would fully fund the Illinois pension systems, which are considered the worst-funded in the nation.


Meanwhile, a proposal to allow undocumented immigrants to qualify for Illinois driver's licenses could get its first House test today. Sponsoring Rep. Eddie Acevedo, D-Chicago, said he would call the Senate-passed bill on the House floor if it advances from committee.


Also Sunday, a House panel defeated a bill to require companies to file public disclosure forms when they pay no state income taxes.


rlong@tribune.com


rap30@aol.com







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Kuwaiti journalist jailed for Twitter ‘insults’






KUWAIT CITY (AP) — A Kuwait newspaper says an online journalist has been sentenced to two years in prison for posts deemed “insulting” to the Gulf nation’s ruler — the second such ruling this week.


The decision reflects a widening social media crackdown across the Gulf Arab states to quell perceived political dissent.






Kuwait’s pro-government Al Watan newspaper reported Monday that Ayyad al-Harbi, a journalist at news website Sabr, was charged with posting Twitter messages considered offensive to the nation’s Western-allied emir. No other details were given.


Kuwait, which hosts thousands of U.S. troops, has been gripped by months of political unrest led by anti-government groups, including Islamist factions.


On Sunday, Kuwaiti media said a social media activist also has received a two-year prison term for Twitter posts that allegedly insulted the emir.


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Sony, BMG in joint bid for Parlophone, EMI labels – FT






TOKYO (Reuters) – Sony Corp is joining with BMG to bid for Parlophone and other EMI labels on sale by Universal Music, reuniting Sony and Bertelsmann four years after they ended their music joint venture, the Financial Times said on Monday.


Vivendi-owned Universal is being forced to sell Parlophone – EMI’s oldest active label with artists including Coldplay and Pet Shop Boys – to satisfy regulators’ concerns about its $ 1.9 billion purchase of EMI’s recorded music business.






Sony and BMG, a music rights management group owned by Bertelsmann and private equity group KKR, will make a joint bid for Parlophone and other assets, the FT said. The two plan to split the assets and will not form another joint venture, it said.


Sony declined to comment. BMG could not be immediately reached for comment.


Other bidders for the EMI labels on sale include Warner Music and Ronald Perelman’s investment company MacAndrews & Forbes, the FT has said.


(Reporting by Mayumi Negishi; Editing by Richard Pullin)


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Tehran Is Choked by Annual Buildup of Air Pollution





TEHRAN — Already battered by international threats against their nation’s nuclear program, sanctions and a broken economy, Iranians living here in the capital are now trying to cope with what has become an annual pollution peril: a yellowish haze that engulfs Tehran this time of year.




For nearly a week, officials here and in other large cities have been calling on residents to remain indoors or avoid downtown areas, saying that with air pollution at such high levels, venturing outside could be tantamount to “suicide,” state radio reported Saturday.


On Sunday, government offices, schools, universities and banks reopened after the government had ordered them to shut down for five days to help ease the chronic pollution. Tehran’s normally bustling streets were largely deserted.


Residents who dare to go outside cover their mouths and noses with scarves or surgical masks, but their eyes tear up and their throats sting from the mist of pollutants, which a report by the municipality of Tehran says is made up of a mixture of particles containing lead, sulfur dioxins and benzene.


“It feels as if even God has turned against us,” Azadeh, a 32-year-old artist, said on a recent day as she looked out a window in her apartment that often offers a clear view of Tehran, a sprawling city that is home to millions. But on this day, Azadeh, who did not want her full name used, saw only the blurred outlines of high-rise buildings and the Milad communications tower in the distance. The setting sun was reduced to a yellowish coin by the thick blanket of smog.


The haze of pollution occurs every year when cold air and windless days trap fumes belched out by millions of cars and hundreds of old factories between the peaks of the majestic Alborz mountain range, which embraces Tehran like a crescent moon.


Iran is prominently represented in the World Health Organization’s 2011 report on air quality and health, with three of its provincial towns among the organization’s list of the world’s 10 most-polluted cities. According to the report, Tehran has roughly four times as many polluting particles per cubic meter as Los Angeles. Many cities known for their poor air quality, like Mexico City, Shanghai and Bangkok, are cleaner than Tehran.


But since 2010, when American sanctions on Iranian imports of refined gasoline began to bite, the situation has grown worse, according to the report by the municipality of Tehran.


Faced with possible fuel shortages, Iran surprised outsiders by quickly making up for the loss of imports by producing its own brew of gasoline. While the emergency fuel kept vehicles running, local experts warned that it was creating much more pollution.


A recently released report by Tehran’s department of air quality control contained blank spaces where there should have been information about levels of benzene and lead — components of gasoline — in the capital’s air. But the report did state that while Tehran experienced more than 300 “healthy days” in 2009, in 2011 there were fewer than 150.


Iran’s Health Ministry has reported a rise in respiratory and heart diseases, as well as an increase in a variety of cancers that it says are related to pollution.


The state newspaper Resalat on Saturday called the pollution a continuing crisis, and it urged the authorities to act. “Why is it that when the winds pick up, this problem is again quickly forgotten?” an editorial asked. Another newspaper, Donya-e-Eqtesad, which is critical of the government, pressed for an improvement in gasoline standards.


The pollution caused by the use of the emergency fuel concoction has been a taboo subject here, as officials try to portray each measure to counter the economic sanctions as a success that should not to be criticized by the local news media.


On state television, several officials have denied that the yellow haze has anything to do with the locally produced gasoline.


In an interview on Saturday, Ali Mohammad Sha’eri, the deputy director of Iran’s Environmental Protection Organization, strongly denied that the pollution was linked to gasoline. However, he said that only 20 percent of the emergency fuel was up to modern standards. “Hopefully in three months that level will be 50 percent,” he said.


Meanwhile, the government has imposed strict traffic regulations in Tehran, Isfahan and other major population centers. An odd-even traffic-control plan based on the last digit of vehicle license plates keeps about half of the approximately three and a half million cars in Tehran off the streets on a daily basis.


Other plans to combat the pollution have been less realistic, analysts say. President Mahmoud Ahmadinejad has long advocated a plan to move civil servants from Tehran to reduce overpopulation in the capital. In 2010, the governor of Tehran Province ordered crop-dusters to dump water on the smog in an effort to dissipate it. There have also been plans for placing air purifiers in the city, but experts say they will not work in open spaces.


For those living in Tehran and unable to leave town for a vacation home on the Caspian Sea, waiting for the winds to pick up seems to be the only option.


“My head hurts, and I’m constantly dead tired,” said Niloufar Mohammadi, a university student. “I try not to go out, but I can smell the pollution in my room as I am trying to study.”


Azadeh, the artist, said the pollution forced her to stay indoors, adding to her sense of isolation. Step by step her world was being curtailed, she said. The Western sanctions imposed on Iran make her feel like a pariah, she explained. The government’s mismanagement of the economy and the resulting inflation have left her with little purchasing power, she said; she has stopped shopping for everything but essential items. And last week, security officers removed her illegal satellite dish from her roof.


“The pollution is the last straw for me,” she said. “We should wait helpless for winds to pick up and clean the air before we can safely leave our houses. It shows we have lost all power to control our lives.”


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BofA to pay $3.6B to Fannie Mae













Bank of America


Tourists walk past a Bank of America banking center in Times Square in New York.
(Brendan McDermid/Reuters / September 20, 2012)






















































Bank of America on Monday announced roughly $11.6 billion of settlements with mortgage finance company Fannie Mae and a $1.8 billion sale of collection rights on home loans, in a series of deals meant to help the bank move past its disastrous 2008 purchase of Countrywide Financial Corp.

The settlements and transactions and other charges will result in Bank of America posting only a small profit for 2012's fourth quarter. The bank is due to report results Jan. 17.

Bank of America is paying $3.6 billion to Fannie Mae and buying back $6.75 billion of bad loans from the mortgage company to clear up all claims that government-owned Fannie Mae had made against the bank.

Fannie Mae and its sibling, Freddie Mac, have been pushing banks to buy back loans they sold to the two companies that never should have been sold to them because the loans did not meet the companies' criteria for purchasing.

Bank of America said most of the settlement would be covered by reserves, and another $2.5 billion, before taxes, that it set aside in the fourth quarter.

A separate settlement over foreclosure delays will result in Bank of America paying $1.3 billion to Fannie Mae, the mortgage company said. Bank of America had already set aside money to cover most of that, but took another $260 million charge in the fourth quarter to cover the balance.

Bank of America also sold the rights to collect payments on about $306 billion of loans to Nationstar Mortgage Holdings and Walter Investment Management Corp. Nationstar is paying $1.3 billion for the right to service some $215 billion of loans, while Walter Investment is paying $519 million for the right to service about $93 billion of mortgages.

Reuters first reported that Bank of America was talking to Nationstar and Walter Investment on Friday.


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Bears' list grows with Texans' Dennison, report says








As the number of teams searching for a head coach shrinks, the list of candidates for the Chicago Bears continues to grow.

General manager Phil Emery has requested and been granted permission to interview Houston Texans offensive coordinator Rick Dennison, according to ESPN. Dennison becomes the ninth candidate to be identified on Emery’s list and the seventh with an offensive background.

NFL rules dictate that Emery will have an opportunity to meet with Dennison this week before the Texans, a wild-card winner over the Cincinnati Bengals on Saturday, play at New England in the divisional round next Sunday. Emery is expected to interview Denver Broncos offensive coordinator Mike McCoy today.

Dennison, 54, has spent 18 seasons in the NFL with the Texans and Broncos. He has been an offensive coordinator for six years and also has a background as an offensive line and special teams coach. He played linebacker for the Broncos from 1982 to 1990 and was a member of three Super Bowl teams.

Dennison joined Texans coach Gary Kubiak in Houston in 2010 and their offenses have consistently been among the best in the NFL with a power rushing attack led by Arian Foster. The Texans also have a play-action passing game that is effective. Houston ranked eighth in points (26.0) and seven in yards (372.1) this season. In 2010, the Texans were third in yardage.

As Emery continues to add to his list of candidates, now only five teams are seeking a head coach as the Buffalo Bills hired Syracuse coach Doug Marrone overnight and the Kansas City Chiefs already filled their vacancy with Andy Reid. The Cleveland Browns and Philadelphia Eagles are reportedly locked in a battle for the services of Oregon coach Chip Kelly. The Arizona Cardinals and San Diego Chargers are also seeking a coach.

On Saturday, the name of Montreal Alouettes head coach Marc Trestman surfaced. He is a former offensive coordinator and quarterbacks coach in the NFL. Emery interviewed Cowboys special teams coordinator Joe DeCamillis on Saturday. He has already interviewed Falcons special teams coordinator Keith Armstrong, Buccaneers offensive coordinator Mike Sullivan and Saints offensive coordinator Pete Carmichael. He is scheduled to have interviews this coming week with Packers offensive coordinator Tom Clements and Colts offensive coordinator Bruce Arians.

Emery said his search would involve coaches with a defensive background but none have been indentified yet. The plan is for the Bears to develop a small group of finalists and have them go through a second round of interviews that would involve ownership and likely team president Ted Phillips. With so many candidates remaining to be intrerviewed, Emery’s first round could stretch through the entire coming week.

bmbiggs@tribune.com


Twitter @BradBiggs






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RIM unveils a new BlackBerry phone! (But it’s only a Curve for T-Mobile running BlackBerry 7)






Research In Motion (RIMM) on Thursday took the wraps off a brand new BlackBerry smartphone — but it’s not the kind of smartphone BlackBerry fans have been waiting more than a year for. Instead, it’s a low-end BlackBerry Curve 9315 that will launch later this month on T-Mobile. The phone features the BlackBerry 7.1 operating system, a 3.2-megapixel camera, microSD memory expansion and a full QWERTY keyboard, and it will launch on January 23rd… just seven days before RIM unveils its first BlackBerry 10 phones. Pre-sales for the Curve 9315 begin on January 16th and the phone will cost $ 49.99 out of pocket plus a $ 10 payment each month as part of Equipment Installment Plan. T-Mobile’s full press release follows below.


[More from BGR: ‘iPhone 5S’ to reportedly launch by June with multiple color options and two different display sizes]







BlackBerry Curve 9315 Smartphone Introduced By T-Mobile and RIM


[More from BGR: RIM teases BlackBerry 10 launch with image of first BB10 smartphone]


T-Mobile’s most affordable BlackBerry smartphone provides productivity tools and features to keep customers connected


BELLEVUE, Wash. and WATERLOO, ON – Jan. 3, 2013 – T-Mobile USA, Inc. and Research In Motion (RIM) (NASDAQ: RIMM; TSX: RIM) today announced the most affordable BlackBerry® smartphone on T-Mobile’s nationwide network – the BlackBerry® Curve 9315. Powered by the BlackBerry® 7.1 operating system with 3G connectivity, the sleek new smartphone is easy-to-use and provides tools that enable customers to stay connected to the people and information that matter most.


“At T-Mobile, our goal is to delight customers. The new BlackBerry Curve 9315 will delight customers with unprecedented value while also allowing them to combine their mobile business and personal use in one great device,” said Brad Duea, senior vice president of product management at T-Mobile. “The Curve 9315 is the most affordable BlackBerry smartphone on our nationwide network and provides our customers with a wide variety of productivity and social features to keep them connected and make their mobile lives easier.”


“We’re pleased to work with T-Mobile to bring the BlackBerry Curve 9315 to customers,” said Richard Piasentin, managing director for the U.S. at Research In Motion. “The Curve 9315 is designed to make it incredibly easy to stay connected with friends, family and coworkers and will be popular with customers upgrading to a smartphone for the first time, as well as existing Curve customers looking for a step up in speed and functionality.”


Combining an intuitive interface with a QWERTY keyboard, the BlackBerry Curve 9315 features built-in Wi-Fi® connectivity for voice and data, enabling customers to access the information they need when and where they need it, and Wi-Fi calling, allowing calls and messages over an available Wi-Fi network. With a dedicated BlackBerry® Messenger (BBM™) key, preloaded apps for Facebook® and Twitter® and the Social Feeds 2.0 app, customers can easily interact with their friends, coworkers and social networks whether it’s instant messaging, posting or tweeting.


The new BlackBerry Curve 9315 offers a 3.2-megapixel camera with LED flash and digital zoom as well as video recording capabilities. Customers also have the ability to geo-tag the location of their pictures by utilizing the smartphone’s built-in GPS. In addition, the smartphone features a microSD card slot for up to 32GB of additional media storage and a built-in FM radio letting customers tune in to local FM stations. With the BlackBerry App World™ storefront, customers have exclusive access to a wide range of apps, allowing them to enhance their smartphone experience with entertainment, personalization and productivity apps of their choosing.


The BlackBerry Curve 9315 will be available in an exclusive pre-sale for T-Mobile business customers beginning January 16 and is expected to be available in T-Mobile retail stores, via http://www.T-Mobile.com, and with select dealers and national retailers beginning January 23, 2013. For well-qualified customers, the Curve 9315 will require a $ 49.99 out-of-pocket down payment and 20 equal monthly payments of $ 10 per month via T-Mobile’s Equipment Installment Plan (EIP)1, with a two-year service agreement and qualifying T-Mobile Value voice and data plan. Customers may also purchase the Curve 9315 for $ 49.99 after a $ 50 mail-in rebate card, with a two-year service agreement and qualifying T-Mobile Classic voice and data plan.2



This article was originally published by BGR


Gadgets News Headlines – Yahoo! News




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French actor Depardieu gets Russian passport






MOSCOW (AP) — The day after receiving his new Russian passport from President Vladimir Putin, French actor Gerard Depardieu flew Sunday to the provincial town of Saransk, where he was greeted as a local hero and offered an apartment for free.


Depardieu had sought Russian citizenship as part of his battle against a proposed super tax on millionaires in France.






Putin granted his request last week and then welcomed the actor late Saturday to his residence in Sochi, the host city of the 2014 Winter Olympics. Russian television showed the two men embracing and then chatting over supper, discussing a soon-to-be-released film in which Depardieu plays Russian monk Grigory Rasputin.


Depardieu flew Sunday to Saransk, a town about 500 kilometers (300 miles) east of Moscow, where he was met at a snow-covered airport by the governor and a group of women in traditional costume singing folk songs. He flashed his new passport to the crowd before setting out on a tour of the town.


The governor invited Depardieu to settle in Saransk and offered him an apartment of his choice, according to reports on state television.


Depardieu has not said where he would take up residence in Russia, only that he did not want to live in Moscow because it is too big and he prefers a village.


The Frenchman has spent a fair bit of time in Russia in recent years, including for the filming of the French-Russian film “Rasputin,” and he expresses an admiration for Putin. But it is Russia’s flat 13 percent income tax that appears to be the biggest draw at the moment as he flees high taxes in France.


France’s new Socialist government tried to raise the tax on income above €1 million ($ 1.3 million) to 75 percent from the current 41 percent. That plan was struck down by the highest court, but Budget Minister Jerome Cahuzac said Sunday that the government is reworking the law so the superrich will still be asked to pay an elevated rate. He said the government is also considering putting the new tax in place for longer than the two years initially imagined.


“I find it a bit pathetic that for tax reasons this man — whom by the way I admire infinitely as an actor — has decided to exile himself,” Cahuzac said.


___


Sarah DiLorenzo in Paris contributed to this report.


.


Entertainment News Headlines – Yahoo! News





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Despite New Health Law, Some See Sharp Rise in Premiums





Health insurance companies across the country are seeking and winning double-digit increases in premiums for some customers, even though one of the biggest objectives of the Obama administration’s health care law was to stem the rapid rise in insurance costs for consumers.







Bob Chamberlin/Los Angeles Times

Dave Jones, the California insurance commissioner, said some insurance companies could raise rates as much as they did before the law was enacted.







Particularly vulnerable to the high rates are small businesses and people who do not have employer-provided insurance and must buy it on their own.


In California, Aetna is proposing rate increases of as much as 22 percent, Anthem Blue Cross 26 percent and Blue Shield of California 20 percent for some of those policy holders, according to the insurers’ filings with the state for 2013. These rate requests are all the more striking after a 39 percent rise sought by Anthem Blue Cross in 2010 helped give impetus to the law, known as the Affordable Care Act, which was passed the same year and will not be fully in effect until 2014.


 In other states, like Florida and Ohio, insurers have been able to raise rates by at least 20 percent for some policy holders. The rate increases can amount to several hundred dollars a month.


The proposed increases compare with about 4 percent for families with employer-based policies.


Under the health care law, regulators are now required to review any request for a rate increase of 10 percent or more; the requests are posted on a federal Web site, healthcare.gov, along with regulators’ evaluations.


The review process not only reveals the sharp disparity in the rates themselves, it also demonstrates the striking difference between places like New York, one of the 37 states where legislatures have given regulators some authority to deny or roll back rates deemed excessive, and California, which is among the states that do not have that ability.


New York, for example, recently used its sweeping powers to hold rate increases for 2013 in the individual and small group markets to under 10 percent. California can review rate requests for technical errors but cannot deny rate increases.


The double-digit requests in some states are being made despite evidence that overall health care costs appear to have slowed in recent years, increasing in the single digits annually as many people put off treatment because of the weak economy. PricewaterhouseCoopers estimates that costs may increase just 7.5 percent next year, well below the rate increases being sought by some insurers. But the companies counter that medical costs for some policy holders are rising much faster than the average, suggesting they are in a sicker population. Federal regulators contend that premiums would be higher still without the law, which also sets limits on profits and administrative costs and provides for rebates if insurers exceed those limits.


Critics, like Dave Jones, the California insurance commissioner and one of two health plan regulators in that state, said that without a federal provision giving all regulators the ability to deny excessive rate increases, some insurance companies can raise rates as much as they did before the law was enacted.


“This is business as usual,” Mr. Jones said. “It’s a huge loophole in the Affordable Care Act,” he said.


While Mr. Jones has not yet weighed in on the insurers’ most recent requests, he is pushing for a state law that will give him that authority. Without legislative action, the state can only question the basis for the high rates, sometimes resulting in the insurer withdrawing or modifying the proposed rate increase.


The California insurers say they have no choice but to raise premiums if their underlying medical costs have increased. “We need these rates to even come reasonably close to covering the expenses of this population,” said Tom Epstein, a spokesman for Blue Shield of California. The insurer is requesting a range of increases, which average about 12 percent for 2013.


Although rates paid by employers are more closely tracked than rates for individuals and small businesses, policy experts say the law has probably kept at least some rates lower than they otherwise would have been.


“There’s no question that review of rates makes a difference, that it results in lower rates paid by consumers and small businesses,” said Larry Levitt, an executive at the Kaiser Family Foundation, which estimated in an October report that rate review was responsible for lowering premiums for one out of every five filings.


Federal officials say the law has resulted in significant savings. “The health care law includes new tools to hold insurers accountable for premium hikes and give rebates to consumers,” said Brian Cook, a spokesman for Medicare, which is helping to oversee the insurance reforms.


“Insurers have already paid $1.1 billion in rebates, and rate review programs have helped save consumers an additional $1 billion in lower premiums,” he said. If insurers collect premiums and do not spend at least 80 cents out of every dollar on care for their customers, the law requires them to refund the excess.


As a result of the review process, federal officials say, rates were reduced, on average, by nearly three percentage points, according to a report issued last September.


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Chicago restaurateurs shrug off economic worries









Chicago may have lost a few of its Michelin-starred restaurants in 2012 and waved goodbye to the inimitable Charlie Trotter's, but the higher-end restaurant scene is powering up in ways not seen since prerecession days, according to industry players and observers.


Local operators with a hit or two are embarking on ambitious ventures, though keeping an eye on startup costs and menu prices. A handful of chefs with established followings, among them Curtis Duffy and Iliana Regan, are sticking out their necks with riskier fine-dining ventures. And some prominent out-of-towners are investing on a grand scale, with a Del Frisco's Double Eagle Steakhouse just opened in the former Esquire Theater on Oak Street, and an Italian food and wine marketplace, Eataly, planned for the former ESPN Zone site in River North.


The flurry of activity is seen by some as a signal the economy has stabilized, at least for now.





"People are out spending money again, and corporations are hosting expensive dinners again, and there was a period when that was not happening," said Neil Stern, senior partner at McMillanDoolittle, a retail consultancy. "It affects the high end significantly."


Still, the bubbling of enthusiasm for the upper end of the market is something of an anomaly. The rebound in Chicago restaurant startups across all price ranges is tenuous. The city issued 1,458 new retail food licenses in 2012, only 11 more than in 2010 and below the 1,589 issued in 2007, the year leading into the recession.


Just as there are new arrivals, there were some big losses last year in this notoriously volatile business. Notable exits include Charlie Trotter's, Crofton on Wells, Il Mulino, One Sixtyblue, Pane Caldo and Ria at the Waldorf Astoria, one of several luxury hotels to step away from fine dining.


Weak economic conditions played a role for some, and the forecast for 2013 remains uncertain.


"It's a precarious market, and one economic blip really can take demand out of the market very, very quickly," Stern said.


Still, upscale-restaurant operators are moving ahead, betting on Chicagoans' seemingly endless fascination with food trends, dining out and the city's robust roster of accomplished chefs.


"When I was a child, people would go to each other's homes for a dinner party every week and would rarely go to restaurants — now it is almost the opposite," said David Flom, who with his business partner Matthew Moore hit a grand slam with Chicago Cut Steakhouse in River North, which opened in 2010. Steaks range from $34 to $114; soup, salad, sauces, vegetables and potatoes all are extra.


In December, they opened The Local at the Hilton Suites in Streeterville, a more modestly priced venue where executive chef Travis Strickland, formerly of the Inn at Blackberry Farm, is serving locally sourced comfort food. Meatloaf made with prime dry-aged beef goes for $24, rotisserie chicken pot pie for $22.


"People can use The Local as an everyday restaurant," Flom said. "People can say, 'Let's just grab a burger at The Local.' It doesn't have to be $100 a person, it can be $25."


At Chicago Cut, the average check, per person, is $82, including drinks, versus $44 at The Local, he said.


Industry observer Ron Paul, president and CEO of Technomic Inc., said he is particularly intrigued by the growing strength of such emerging independents, who are nipping at the heels of Lettuce Entertain You Enterprises Inc., even as that homegrown powerhouse continues to churn out winning concepts.


As restaurant real estate broker Randee Becker, president of Restaurants!, put it: "People who are doing north of $8 million to $10 million of sales are expanding in a big way."


After establishing a high-style, large-scale foothold in River North with the opening of Epic in 2009, proprietors Steve Tavoso and Jeff Krogh last fall embarked on a second act in the neighborhood. They engaged prominent chefs — Thomas Elliott Bowman and Ben Roche, who worked together at Moto — but kept their initial investment more modest this time.


Their latest entry, the eclectic Baume & Brix, opened last fall in the former Rumba space, which had most of the necessary mechanical, electrical, plumbing and kitchen elements in place. Startup costs were about $1.5 million, compared with more than $5 million spent to open Epic. "I took raw space (for Epic) — I would never do that again," Tavoso recalled.


Mercadito Hospitality, whose Chicago offerings include high-energy Latin American tapas spots Mercadito and Tavernita, also is watching its pennies on startups, its most recent being Little Market Brasserie in the Talbott Hotel. Led by chef/partner Ryan Poli, the restaurant has quietly opened with a Parisian decor and American small plates. Its grand opening is expected Jan. 18.


"We are aware of the fact the economy is not fully recovered, so we try to keep our expenses down without sacrificing quality," said managing partner Alfredo Sandoval.


The Chicago-based group intends to keep expanding. It just signed a lease at a River North spot with a 4 a.m. liquor license, with plans to open a drinks-focused venue there in 2013.





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