City's execs cheer Daley, look forward to stability

Chicago's business community is breathing a collective sigh ofrelief over the election of Richard M. Daley as mayor. The victorywill, they believe, mean several years of governmental stability.

"The one thing businessmen don't like is risk," said FrankCassell, professor emeritus of industrial relations at NorthwesternUniversity. "They see the possibility of years of continuitycomparable to what they had under Richard J. Daley and HaroldWashington. Whether they get it or not remains to be seen."

Business put its money where its hopes were in the election.Members of the city's business establishment were the majorcontributors to Daley's $6.5 million campaign war chest.

"The business community is beside itself with joy," said WimWiewel, director of the Center for Urban Economic Development at theUniversity of Illinois at Chicago. "Business people care more aboutpredictability and consistency than they do about who is in CityHall."

A random selection of the city's business leaders pointed tohopes that Daley will follow through on promises to push throughreform of the Chicago public schools, that he will refocusdevelopment efforts downtown and that he will foster a generallycooperative relationship between city government and business.

"I see school reform as the No. 1 item on the civic agenda,"said B. Kenneth West, chairman of Harris Bank & Trust Co. and aleading proponent of the school reform plan. "And I know this is atop priority with Mr. Daley."

Companies are worried that the poor quality of educationprovided by the Chicago public schools will make it increasinglydifficult for them to hire qualified workers in the future. Already,businesses have launched their own summer jobs program to linksuccess in high school to success in the working world. The issuewill become more critical as the labor force shrinks in the future.

"Retailing provides many entry-level jobs in this city, and weneed a better-educated work force," said Sara Bode, president of theGreater State Street Council. "It's in everybody's interest thatyoung people get a better-quality education."

Another key concern among the city's retailers is the proposedCentral Area Circulator, an above-ground railway system that wouldlink the Near North Side with the suburban commuter rail stations onthe west side of the Loop.

"We consider Rich Daley to be a leader who recognizes essentialvalues and requirements of the central city, which includes our NearNorth Side," said Nelson Forrest, president of the Greater NorthMichigan Avenue Association.

Developers, in particular, supported Daley's candidacy, and theyexpect to reap the rewards.

"Real estate values should increase, and financing will beeasier for city projects than in the days when we had Council Wars,"said Kenneth Sheetz, managing partner of Oxford Cos.

"Development produces jobs, and I think this administration isgoing to be very keyed to job creation," said Robert Wislow,president of U.S. Equities.

Some constituents are worried that Daley will focus on thecentral city and that neighborhood development, which flourishedunder Washington, will wither under Daley's tutelage.

"If he's smart he will realize that good economic development isneeded in neighborhoods throughout the city, black or white orother," said Jacoby Dickens, chairman of Seaway National Bank and amember of the city's Economic Development Commission.

Ronald Gidwitz, chief executive officer of Helene CurtisIndustries and chairman of the Economic Development Commission, saidhe believes Daley will keep the support of the business communitythrough example, not promises. "Economic climate basically is amatter of perception," he said.

Robert Malott, chairman of FMC Corp., said he has been"frustrated" with the lack of follow-through on the part of the cityin responding to a 1986 Civic Committee report that called for tightreins on pay and benefits for city employees and "privatization" ofservices to ward off budget deficits.

Malott said his message to Daley is: "The business communitysincerely wants to help, and we do so without any expectation of quidpro quo."

Karl D. Bays, chairman of Whitman Corp., agreed.

"Rich Daley had just the right message in the campaign when hesaid, `Let's lower our voices. Let's work together for education,housing, and jobs.' That's what all the voters wanted to hear.Business is ready to work with him. If he follows through, he'll bea great mayor."

David Greising, Jerry C. Davis, Lisa Holton, Greg Burns, SusanChandler, Frederick H. Lowe and Patricia Moore contributed to thisstory.