Chicago seeks investors for potential Midway Airport deal









Mayor Rahm Emanuel's administration on Friday began testing the investment market's appetite for a potential deal to privatize Midway Airport, launching the process for finding prospective bidders.


The city posted a "request for qualifications," seeking expressions of interest and documentation of credentials from teams interested in financing, operating, maintaining and improving the Southwest Side airport, which is the nation's 26th busiest, with about 9 million passengers passing through annually.


The document reiterates a framework, laid out by Emanuel earlier, aimed at providing city taxpayers with a better deal than the widely criticized 75-year agreement to privatize parking meter operations, carried out during former Mayor Richard Daley's administration. Proceeds from the earlier deal were used to plug operating deficits, and meter rates rose sharply.





This time, proposed leases must be less than 40 years, which locks in the city for a shorter period.


Rather than awarding the city only an upfront payment, the private operator also must share revenue with the city on an ongoing basis. Initial proceeds would be used to pay down debt issued since 1996 to rebuild the airport, the mayor's office said. There is about $1.4 billion in outstanding debt.


Longer term, cash flow would be directed to city infrastructure needs. The mayor has pledged proceeds would not be used to pay for city operations.


The city also is seeking assurances that prices for parking, food and beverages will be kept reasonable.


This is the second time Chicago has looked at privatizing Midway. A 99-year lease that would have brought in $2.5 billion died in 2009 when the financial markets froze up.


Prospective bidders will be asked to prove their ability to raise the needed financing, said Tom Alexander, a spokesman for the mayor.


As in the first go-round, the city is using Credit Suisse Securities LLC as its lead financial adviser.


"The city's process and approach will be thorough and open," Lois Scott, the city's chief financial officer, said in a written statement.


Southwest Airlines, the airport's dominant carrier, supports the move.


Some observers have said a structure with a shorter lease and greater control for the city could translate into lower bids.


But Alexander said the city was confident investors "would gladly meet our terms and still make very attractive offers." The city has declined to estimate how much such a deal could garner.


The request for proposal states "there is significant potential to increase commercial revenue both in terms of variety of activities and increases in sales per passenger."


The city posted the request for qualifications shortly after the Federal Aviation Administration accepted its preliminary application to privatize the airport, clearing the way for the city to move forward in its evaluation process.


Prospective bidders were asked to formally express their interest by Feb. 22. If the city moves forward and seeks proposals, a privatization plan could be submitted to the City Council this summer.


kbergen@tribune.com


Twitter @kathy_bergen





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Chicago Jazz Festival moving to Millennium Park








After more than three decades at the Petrillo Music Shell in Grant Park, the Chicago Jazz Festival will be leaving the venue for Millennium Park, according to the city’s Department of Cultural Affairs and Special Events (DCASE).


Though in recent years the Chicago Jazz Festival has expanded to Millennium Park’s Pritzker Pavilion and other Loop venues, the Petrillo and its nearby stages have been the event’s focal point.


This summer, the 35th annual festival will be physically restructured.






The opening night, on Aug. 29, as in recent years will unfold at the Pritzker Pavilion in Millennium Park and will double as the closing night of the “Made in Chicago: World Class Jazz” series.


On Aug. 30, the fest will play the Pritzker Pavilion plus stages in the park’s Chase Promenade, just north and just south of the Cloud Gate sculpture.


On Aug. 31 and Sept. 1, the Chicago Community Trust Young Jazz Lions Stage will be added to the mix, the emerging musicians performing on the Harris Theater Rooftop, in Millennium Park.


In addition, performances sites may be added elsewhere in Millennium Park, with concerts also taking place at the Chicago Cultural Center, said Michelle Boone, commissioner of DCASE.


This year’s artist in residence will be Chicago percussionist Hamid Drake.


For more information, visit chicagojazzfestival.us.


hreich@tribune.com
Twitter @howardreich






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Samsung, Apple seen pulling ahead in smartphone race: poll


HELSINKI (Reuters) - Samsung and Apple pulled ahead in the global smartphone race last quarter, according to forecasts by analysts in a Reuters poll, while Nokia and others are expected to have fallen further behind.


Overall shipments of handsets are expected to have risen in the fourth quarter, with most of that growth dominated by Samsung. Analysts forecast the South Korean company shipped 61 million smart devices, up 71 percent from a year earlier.


Samsung forecast earlier this month that it expected to earn a quarterly profit of $8.3 billion on strong sales of its Galaxy handsets as well as solid demand for flat screens used in mobile devices. Samsung's full results are due by Jan 25.


While some are wary that Samsung's momentum may slow in coming quarters owing to market saturation, it is still expected to outpace Apple as sales of the new iPhone 5 appear slightly weaker than originally forecast.


Apple is forecast to have shipped 46 million iPhones in the quarter, up 25 percent from a year earlier, according to the poll.


Shares in Apple dipped below $500 earlier this week for the first time in almost a year after reports it was slashing orders for screens and other components as intensifying competition eroded demand for the new iPhone.


The poll showed analysts expect Apple's full-year shipments to grow to 167 million this year from 134 million in 2012, while Samsung's shipments are expected to grow to 283 million smartphones in 2013 compared to 210 million in 2012.


NOKIA, RIM AIM TO CATCH UP


Nokia, once the world's biggest handset maker, is expected to have lost more market share. It is now pinning its recovery hopes on Lumia smartphones, which use Microsoft's Windows Phone software.


Analysts forecast Nokia's fourth-quarter shipments of mobile phones fell 15 percent to 80 million units while those of smartphones, including Lumias, fell 65 percent to 7 million units.


Nokia last week said it sold around 4.4 million Lumia handsets in the fourth quarter. Full results are due on Jan 24, and analysts are anxious to hear whether Nokia is confident that Lumia sales will continue to grow in coming quarters.


BlackBerry-maker RIM, another handset maker struggling to claw back market share, is expected to report a 30 percent fall in fourth-quarter shipments to 7 million units, the poll showed.


RIM is to launch new BlackBerry 10 smartphones later this month. The poll showed, however, that analysts expect its full-year sales to fall to around 30 million in 2013 from 33 million in 2012.


(Reporting by Ritsuko Ando; Editing by Sophie Walker)



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Anti-doping officials say Armstrong must say more


For anti-doping officials, Lance Armstrong's admission of cheating was only a start. Now they want him to give details — lots of them — to clean up his sport.


Armstrong's much-awaited confession to Oprah Winfrey made for riveting television, but if the disgraced cyclist wants to take things further, it will involve several long days in meetings with anti-doping officials who have very specific questions: Who ran the doping programs, how were they run and who looked the other way.


"He didn't name names," World Anti-Doping Agency President John Fahey told The Associated Press in Australia. "He didn't say who supplied him, what officials were involved."


In the 90-minute interview Thursday night with Winfrey — the first of two parts broadcast on her OWN network — Armstrong said he started doping in the mid-1990s, using the blood booster EPO, testosterone, cortisone and human growth hormone, as well as engaging in outlawed blood doping and transfusions. The doping regimen, he said, helped him in all seven of his Tour de France wins.


His openness about his own transgressions, however, did not extend to allegations about other people. "I don't want to accuse anybody," he said.


But he might have to name names if he wants to gain anything from his confession, at least from anti-doping authorities.


Armstrong has been stripped of all his Tour de France titles and banned for life. A reduction of the ban, perhaps to eight years, could allow him to compete in triathlons in 2020, when he's 49.


Almost to a person, those in cycling and anti-doping circles believe it will take nothing short of Armstrong turning over everything he knows to stand any chance of cutting a deal to reduce his ban.


"We're left wanting more. We have to know more about the system," Tour de France race director Christian Prudhomme told the AP. "He couldn't have done it alone. We have to know who in his entourage helped him to do this."


U.S. Anti-Doping Agency chief Travis Tygart, who will have the biggest say about whether Armstrong can return to competition, also called his confession a small step in the right direction.


"But if he is sincere in his desire to correct his past mistakes, he will testify under oath about the full extent of his doping activities," he said.


Pierre Bordry, the head of the French Anti-Doping Agency from 2005-10, said there was nothing to guarantee that Armstrong isn't still lying and protecting others.


"He's going in the right direction, but with really small steps," Bordry said. "He needs to bring his testimony about the environment and the people who helped him. He should do it before an independent commission or before USADA and that would no doubt help the future of cycling."


It's doubtful Armstrong could get the same kind of leniency today as he might have had he chosen to cooperate with USADA during its investigation. But in an attempt to rid cycling of the doping taint it has carried for decades, USADA, WADA and the sport's governing body aren't satisfied with simply stopping at its biggest star. They still seek information about doctors, team managers and high-ranking executives.


Tyler Hamilton, whose testimony helped lead to Armstrong's downfall, says if Armstrong is willing to provide information to clean up the sport, a reduction in the sanctions would be appropriate, even if it might be hard to stomach after watching USADA's years of relentless pursuit of the seven-time Tour de France winner.


"The public should accept that," Hamilton said. "I'm all for getting people to come clean and tell the truth. I'm all for doctors, general managers and everyone else coming forward and telling the truth. I'm all for anyone who crossed the line coming forward and telling the truth. No. 1, they'll feel better personally. The truth will set you free."


The International Cycling Union (UCI) has been accused of protecting Armstrong and covering up positive tests, something Armstrong denied to Winfrey.


"I am pleased that after years of accusations being made against me, the conspiracy theories have been shown to be nothing more than that," said Hein Verbruggen, the president of the UCI from 1991-2005. "I have no doubt that the peddlers of such accusations and conspiracies will be disappointed by this outcome."


But Verbruggen was among the few who felt some closure after the first part of Armstrong's interview with Winfrey. The second was set for Friday night.


Most of the comments either urged him to disclose more, or felt it was too little, too late.


"There's always a portion of lies in what he says, in my opinion," retired cyclist and longtime Armstrong critic Christophe Bassons said. "He stayed the way I thought he would: cold, hard. He didn't let any sentiment show, even when he spoke of regrets. Well, that's Lance Armstrong. He's not totally honest even in his so-called confession. I think he admits some of it to avoid saying the rest."


___


AP Sports Writers Jerome Pugmire in Paris, Dennis Passa, John Pye and Neil Frankland in Melbourne; Stephen Wilson in London; Steve McMorran in Wellington, New Zealand; Nesha Starcevic in Frankfurt, Germany; and Andrew Dampf in Cortina, Italy, contributed to this report.


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Bob Dylan considering Dylan Thomas centenary show in Wales






LONDON (Reuters) – American singer-songwriter Bob Dylan may play a special concert in Wales to mark the centenary of the birth of Dylan Thomas, the Welsh poet after whom he may or may not have named himself.


The member of parliament for West Swansea, Geraint Davies, said he had asked Dylan if he would perform in the city as part of a series of commemorative events next year.






“Bob Dylan named himself after Dylan Thomas. I have asked Bob Dylan whether he would be prepared to give a centenary concert in Swansea, in order that he could blend his music with Dylan Thomas’s poetry,” Davies said in the British parliament on Thursday.


“Sony Music has come back and said that Mr. Dylan is thinking very positively about the idea.”


Dylan, 71, was born Robert Allen Zimmerman and the reason he picked his adopted name while a young folk singer in Minnesota has long been debated by fans.


The most popular theory is that he did indeed name himself after the Welsh poet, though another says it was after Marshal Matt Dillon in the TV Western “Gunsmoke”.


Dylan Thomas, whose works include “Under Milk Wood” and “Do Not Go Gentle Into That Good Night”, was born in Swansea in 1914 and died in New York 1953 after a drinking binge.


Bob Dylan still tours regularly and his latest recording “Tempest”, released last September, was hailed by the critics.


(Reporting by Angus MacSwan; Editing by Paul Casciato)


Music News Headlines – Yahoo! News





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Flu season 'bad one for the elderly,' CDC says


The number of older people hospitalized with the flu has risen sharply, prompting federal officials to take unusual steps to make more flu medicines available and to urge wider use of them as soon as symptoms appear.


The U.S. is about halfway through this flu season, and "it's shaping up to be a worse-than-average season" and a bad one for the elderly, said Dr. Thomas Frieden, director of the Centers for Disease Control and Prevention.


It's not too late to get a flu shot, and "if you have symptoms, please stay home from work, keep your children home from school" and don't spread the virus, he said.


New figures from the CDC show widespread flu activity in all states but Tennessee and Hawaii. Some parts of the country are seeing an increase in flu activity "while overall activity is beginning to go down," Frieden said. Flu activity is high in 30 states and New York City, up from 24 the previous week.


Nine more children or teens have died of the flu, bringing the nation's total this flu season to 29. That's close to the 34 pediatric deaths reported during all of the last flu season, although that one was unusually light. In a typical season, about 100 children die of the flu and officials said there is no way to know whether deaths this season will be higher or lower than usual.


The government doesn't keep a running tally of adult deaths from the flu, but estimates that it kills about 24,000 people most years.


So far, half of confirmed flu cases are in people 65 and older. Lab-confirmed flu hospitalizations totaled 19 for every 100,000 in the population, but 82 per 100,000 among those 65 and older, "which is really quite a high rate," Frieden said.


"We expect to see both the number and the rates of both hospitalizations and deaths rise further in the next week or so as the flu epidemic progresses,'" so prompt treatment is key to preventing deaths, he said.


About 90 percent of flu deaths are in the elderly; the very young and people with other health problems such as diabetes are also at higher risk.


If you're worried about how sick you are and are in one of these risk groups, see a doctor, Frieden urged. One third to one half of people are not getting prompt treatment with antiviral medicines, he said.


Two drugs — Tamiflu and Relenza — can cut the severity and risk of death from the flu but must be started within 48 hours of first symptoms to do much good. Tamiflu is available in a liquid form for use in children under 1, and pharmacists can reformulate capsules into a liquid if supplies are short in an area, said Dr. Margaret Hamburg, head of the Food and Drug Administration.


To help avoid a shortage, the FDA is letting Tamiflu's maker, Genentech, distribute 2 million additional doses of capsules that have an older version of package insert.


"It is fully approved, it is not outdated," just lacks information for pharmacists on how to mix it into a liquid if needed for young children, she said.


This year's flu season started about a month earlier than normal and the dominant flu strain is one that tends to make people sicker. Vaccinations are recommended for anyone 6 months or older. There's still plenty of vaccine — an update shows that 145 million doses have been produced, "twice the supply that was available only several years ago," Hamburg said.


About 129 million doses have been distributed already, and a million doses are given each day, Frieden said. The vaccine is not perfect but "it's by far the best tool we have to prevent influenza," he said.


Carlos Maisonet, 73, got a flu shot this week at New York's Brooklyn Hospital Center at the urging of his wife, who was vaccinated in August.


"This is his first time getting the flu shot," said his wife, Zulma Ramos.


Last week, the CDC said the flu again surpassed an "epidemic" threshold, based on monitoring of deaths from flu and a frequent complication, pneumonia. The flu epidemic happens every year and officials say this year's vaccine is a good match for strains that are going around.


___


Online:


Flu vaccine finder: http://www.flu.gov


CDC flu info: http://www.cdc.gov/flu/index.htm


___


AP Photographer Bebeto Matthews in New York contributed to this report.


___


Follow Marilynn Marchione's coverage at —http://twitter.com/MMarchioneAP


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'Django Unchained' action figures discontinued


LOS ANGELES (AP) — The Weinstein Co. has asked a toy maker to discontinue a line of "Django Unchained" action figures after receiving complaints that they were offensive.


The studio said Friday that such collectibles have been created for all of director Quentin Tarantino's films, including "Inglourious Basterds," and that they were meant for people 17 and older, the audience for the film.


"Django Unchained" is a violent mix of spaghetti Western and blaxploitation genres about a freed slave (Jamie Foxx) who becomes a bounty hunter. Civil rights groups argued that the toys trivialized the horrors of slavery.


"We have tremendous respect for the audience and it was never our intent to offend anyone," The Weinstein Co. said in a statement. Toy maker NECA did not immediately respond to a request for comment.


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Liguori named CEO of Tribune Co.

Peter Liguori named CEO of Tribune Co.









Television executive Peter Liguori was named the new chief executive of Tribune Co. Thursday, taking the reins of the reorganized Chicago-based media company weeks after its emergence from bankruptcy.

In a widely expected announcement, Liguori, 52, a former top executive at Fox Broadcasting and Discovery Communications, was confirmed by Tribune Co.'s new seven-member board, which met for the first time Thursday in Los Angeles. In Chicago, Tribune Co. owns the Chicago Tribune, WGN-Ch.9 and WGN-AM.






"It can be daunting; I tend to view it as being exciting," Liguori said in an interview about his new job. "It's just a company of tremendous media assets with big iconic brand names, and many of those names are in major markets."

Liguori said he looked forward to leading Tribune Co. into a new era, focusing on content development across all media platforms. And despite speculation by analysts and industry insiders that the company was unlikely to retain its full portfolio of TV stations and newspapers, Liguori said he is hoping to keep Tribune's broadcasting and publishing businesses together under one roof.

"I don't care if it's newspapers or TV or digital operations or our other media assets: I'm hoping to make them work together," Liguori said. "And I'm really interested in building the company through innovation and through commitment to our mission of creating compelling content and best-in-class services."

Liguori replaces Eddy Hartenstein, who has been CEO of Tribune Co. since May 2011. Hartenstein will remain on the board and continue as publisher of the Los Angeles Times. He also will serve as special adviser to the office of CEO, according to Liguori.

"Eddy has done an exemplary job taking this company through some very, very rough times," Liguori said. "He has done a very good job as the publisher of a key asset, and I will benefit from having his advice and counsel and institutional knowledge at my side."

Tribune Co. filed for bankruptcy protection in December 2008, saddled with a total of $13 billion in debt after real estate investor Sam Zell completed his $8.2 billion buyout less than one year earlier. It emerged from Chapter 11 on Dec. 31, 2012, with a healthy balance sheet, owned by its senior creditors: Oaktree Capital Management; Angelo, Gordon & Co.; and JPMorgan Chase & Co.

Bruce Karsh, president of Los Angeles-based investment firm Oaktree, the largest Tribune Co. shareholder with about 23 percent of the equity, was named chairman of the new board, which also includes Liguori; former Yahoo interim CEO Ross Levinsohn; entertainment lawyer Craig Jacobson; Oaktree managing director Ken Liang; and Peter Murphy, a former strategy executive at Walt Disney Co.

A Bronx native and Yale graduate, Liguori is a former advertising executive who transitioned into television more than two decades ago. He is credited with turning cable channel FX into a programming powerhouse during his ascent to entertainment chief at News Corp.'s Fox Broadcasting. More recently, he was chief operating officer at Discovery Communications Inc., where he helped oversee the rocky launch of the Oprah Winfrey Network. He became interim CEO in 2011 after the previous executive was forced out; he left the company when Winfrey made herself CEO of OWN. Liguori has been working since July as a New York-based media consultant for private equity firm Carlyle Group.

Liguori said job one will be assessing Tribune Co.'s diverse portfolio of assets, which include 23 television stations; national cable channel WGN America; WGN Radio; eight daily newspapers, including the Chicago Tribune and Los Angeles Times; and other properties, all of which the reorganization plan valued at $4.5 billion after cash distributions and new financing.

Despite its roots as a newspaper company, broadcasting has supplanted the declining publishing segment as the core profit center for the company. Liguori acknowledged broadcasting will be a focus going forward, but not necessarily at the expense of Tribune Co.'s newspaper holdings.

"I'm tasked to be a chief executive officer and a general businessman, and I'm going to take the same principles that I've used in broadcasting, and (extend) them out to all of our business," he said.

Liguori became president of Fox's FX Networks in 1998, when it was a small basic cable channel airing mostly reruns. Elevated to CEO in 2001, he remade FX by offering edgy original programming such as the "The Shield," "Nip/Tuck" and "Rescue Me," creating a string of first-run successes.

Unlocking the value of WGN America, which lags top cable networks such as TBS and FX, will be a priority, Liguori said.

"In this very co-dependent media environment, it's not just sitting there and focusing on how quickly we could grow the bottom line," Liguori said. "The bottom line is the outcome of great content, great marketing, which will drive great ratings, which will attract advertisers, which will further our relationship with affiliates, and will lead to natural growth based on the fact that we have high levels of usership."

Content development will also be key for Tribune Co.'s other media properties, including newspapers, Liguori said.

"I look at the newspapers and appreciate what we do for the local communities, and do recognize that the newspaper business is challenged right now," he said. "But how do we innovate, how do we go out and create stories, create coverage, servicing community and spreading that content across all media platforms?"

In the face of digital competition and sagging publishing industry revenue, Tribune Co.'s newspaper holdings have declined to $623 million in total value, according to financial adviser Lazard. With some newspaper owners expressing interest in acquisitions, Liguori said: "I have a fiduciary responsibility to hear those out."

"Those would be evaluated on an as-come basis. However, with all that being said, it's my job to make sure it doesn't stop me from focusing on our day-to-day business and growing the assets that we have."

He added: "Newspapers are a core part of our business."

Further, Liguori said all of Tribune Co.'s assets will be assessed, with an eye toward maximizing performance, and ultimately, value for the company. That includes real estate holdings such as Tribune Tower in Chicago and Times Mirror Square in Los Angeles, which were on the block until they were taken off the market in 2009.

"In places like Chicago and LA, particularly, there's a bunch of underutilized space that's being leased and has high demand and getting very good rates," Liguori said. "As I look toward the real estate assets, I've just got to ascertain what the value of the properties are and are we best utilizing them."

With a clean balance sheet and the company operating profitably, Liguori said strategic acquisitions will also be on the table, as Tribune aspires to be more of a growth company going forward.

"I think it really changes the driving mission of Tribune versus the past four years, where it undoubtedly had to be a bit shackled," he said. "I look forward to seeing what possibilities are out there and with great financial rigor and diligence, determining whether or not acquisitions would help us."

While the first board meeting was held in Los Angeles, Liguori said it doesn't presage a westward migration for the 166-year-old Tribune Co.

"The corporate office will continue to be in Chicago, and I'm going to be spending considerable time there," Liguori said. "There's great tradition and great history of Tribune being an iconic brand in Chicago."

rchannick@tribune.com | Twitter @RobertChannick



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Teen shot after high school game: 'His mom thought he was safe'

The aunt of 17-year-old Tyrone Lawson, who was shot and killed after watching a prep basketball game between Simeon and Morgan Park, talks about her nephew.








Pamela Wright had dropped her son off at Chicago State University for a basketball game and was waiting for him to call back when she got the awful news.

Her son Tyrone Lawson had been shot, apparently as he ran from a fight that had spilled out of the gymnasium Wednesday night.

"It hurt so bad," said Lawson's grandmother, Barbara VanHughs, 70, clutching a photo of Lawson and crying. "My baby."

Police say an argument broke out while players were in a handshake line after the game between Simeon Career Academy and Morgan Park High School. The dispute spilled into the parking lot near 95th Street and King Drive and someone pulled out a gun and shot Lawson around 9:30 p.m., officials said.

Lawson was shot twice in the back while running away, said Kurtistein Bailey, his 41-year-old aunt. Amid the chaos, someone knelt down and told Lawson to get up but he couldn't move, his grandmother said.

"This was at the school where his mom thought he was safe," Bailey said. "His mother thought he was safe there. That's why she let him go."

Lawson had called his mother earlier in the day, asking if he could go to the game. "Mom, can I go to the basketball game? It's only $10," Lawson had asked, according to VanHughs.

His mother dropped him off and waited for him to call back, she said.

A fight broke out at the end of the game, and video shows security getting players off the court. It was unclear what the fight was about. Nothing outside ordinary bumps and physical contact appeared to have happened during the game between the two schools, which are located on Vincennes Avenue about 30 blocks apart.

University police issued a message to its officers, asking them to watch for a Jeep. It was pulled over east of the school and two people were taken into custody, officials said. Police said they found a gun inside the Jeep.

The Jeep's owner told the Tribune this afternoon that she was not aware of any gun in the car. "I was not there," the owner said. "I don't know what happened."

CPS spokeswoman Marielle Sainvilus said the district worked with the university and Chicago police to provide security at the game.

Sainvilus said there was a significant security presence both inside and outside the gym, and there had been screening to prevent anyone from carrying guns into the game. All fans were also searched.

The university released a statement Thursday morning saying it was "deeply saddened by the tragic shooting death."

“(Chicago Public Schools) periodically uses the university’s athletic facility to provide a neutral setting for student sporting events. This is the first such incident to occur on the campus of Chicago State University where CPS students have played many times over the last three years," the statement said.

"Additional security is provided by the university and all external partners during high school sporting events. Arrests have been made and university officials are awaiting the outcome of a full investigation to learn details about the shooting incident.”

Relatives said Lawson was an honor student at Morgan Park and hoped to study engineering in college next year. They remembered him as "high-spirited" and "loved by all," a popular student with friends on the basketball team.

Bailey said Lawson loved animals, and took care of snakes, an iguana and turtles over the years. His aunt said he loved animals so much he gave up his bedroom for his 2-year-old dog, Midnight, and slept on a futon in another room.

VanHughs said she helped raise Lawson while his mother traveled for her job. Family members described the two as having a strong relationship.

"He was definitely a momma's boy," Bailey said. "They were very close and he was her only child."


CPS chief Barbara Byrd-Bennett ordered extra security personnel for the two high schools today. Crisis teams, including counselors, also have been deployed at Morgan Park.


Contributor Mike Helfgot and Tribune reporters Peter Nickeas, Rosemary Regina Sobol and Jeremy Gorner contributed to this story.


chicagobreaking@tribune.com
Twitter: @chicagobreaking






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Amazon holiday results to show sales tax impact


SAN FRANCISCO (Reuters) - Acting as a tax collector may have hurt Amazon.com, Inc's holiday sales analysts and industry executives said, but they expect to know more when the internet retailer reports its fourth-quarter results on January 29.


Best Buy Co., an archrival of Amazon in consumer electronics, saw holiday online sales increase in three states where Amazon started collecting sales tax ahead of the period.


"There was a little softness in states where Amazon is now collecting sales tax," said R.J. Hottovy, an equity analyst at Morningstar. "That isn't surprising to me. It levels the playing field for brick-and-mortar retailers."


Critics of Amazon argued it had an unfair advantage because most retailers have had to collect state sales tax on online sales for years because they have stores and other physical operations in these locations.


But many states, hungry for extra tax revenue in the wake of the 2008 financial crisis, introduced new laws requiring that Internet-only retailers also collect sales tax. Brick-and-mortar retailers hope the requirement will reduce Amazon's price advantage and help them recoup lost sales.


CHANNELADVISOR DATA


Amazon, the world's biggest Internet retailer, began collecting sales tax of 7.25 percent to 9.75 percent in California on Sept 15, about two weeks before the start of the fourth-quarter. Third-party sellers on Amazon.com saw a drop in sales during the quarter, compared to other states, according to an analysis by e-commerce firm ChannelAdvisor.


It also started collecting sales tax in Pennsylvania in September and in Texas in July.


Amazon's fourth-quarter results should provide clues on whether consumers changed their shopping habits when faced with higher taxes on their purchases from the company's website.


ChannelAdvisor, which helps merchants sell more online, analyzed its clients' sales on Amazon.com in California, and compared them to other states before and after the sales tax kicked in.


Before Amazon began collecting the tax in California, ChannelAdvisor client sales were 5 percent to 10 percent above other states. The week before the September 15 start of the tax, sales spiked as high as 70 percent compared to other states.


"The surge before the tax went into effect was much larger than I thought it would be," said Scot Wingo, chief executive of ChannelAdvisor. "Californians definitely bought a lot in the three or four days before the tax went into effect."


After Amazon began collecting tax, its California sales leveled with other states. Then, in early November, they slipped as much as 10 percent below other states, ChannelAdvisor data showed.


During one of the busiest holiday periods, in late November and early December, sales dipped further in California vs other states. Toward the end of the holiday period, client sales in California recovered, the data showed.


"There was a sales impact of about 10 percent at the worst point of the dip," Wingo said. EBay, another Amazon rival, is an investor in ChannelAdvisor. Wingo also owned Amazon shares, but sold them in the fourth quarter for personal tax-related reasons.


Amazon's tax collection in California had the most impact on fourth-quarter sales of more expensive items priced at $200 to $250, Wingo said.


PRICES, PROFIT


Amazon probably lowered prices by 8 percent to 9 percent on items most affected by this, although it is tricky to separate such reductions from the usual holiday season promotions that were also happening, Wingo said.


The extra price competition may dent Amazon's profitability in the fourth quarter, Morningstar's Hottovy said.


Amazon is expected to make 52 cents a share in the fourth quarter, on revenue of $22.3 billion, according to Thomson Reuters I/B/E/S. In late October, the company forecast operating results ranging from a profit of $310 million to a loss of $490 million.


Hottovy expects $22.4 billion in revenue and an operating loss of $210 million, or a $135 million loss after excluding stock-based compensation and other operating expenses.


BEST BUY


In California, Texas and Pennsylvania, Best Buy said it saw a 4 percent to 6 percent increase in online sales during the holiday versus the rest of its chain.


The retailer also saw an increase of 6 percent to 9 percent in online orders that are picked up in its stores in those three states compared with the rest of its chain.


Overall, Best Buy reported better-than-expected holiday sales last week, sending its shares up more than 10 percent.


"This makes Amazon equal to everyone else. They no longer have that sales tax advantage," said Anne Zybowski, vice president of retail insights at Kantar Retail. "If this had happened to Amazon when they were just a bookseller years ago, they may not be as big as they are now.


Despite the tax changes, Amazon's consumer electronics prices were still at least 5 percent below Best Buy's during the holiday season, Zybowski said. But Best Buy may have benefited from even a small change in this area.


"Particularly in consumer electronics, any narrowing of Amazon's price advantage at the margin is important because Best Buy brings service and other shopper benefits to the category," she said.


Best Buy will take away people's old TVs when they buy a new one and the company's Geek Squad service will install devices in shoppers' homes, services Amazon does not provide, she noted.


An Amazon spokesman declined to comment when asked if the company saw an impact on fourth-quarter sales from the collection of sales taxes in the three states.


In the past, Amazon executives have said there was little or no impact from such changes in other regions.


Several analysts have argued that shoppers use Amazon for its vast product selection and convenient, fast shipping and returns, and not just its low prices.


"While not great for Amazon, it's just one of many consumer benefits its service offers," said Ken Sena, an analyst at Evercore Partners. "And while there may be early effects from this change, I still see usage trends remaining in Amazon's favor."


(Editing by Leslie Gevirtz)



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