Chicago’s getting an L3C newsroom before Peoria

October 26, 2009
By Billy Dennis

Via Nieman Journalism Lab:

The new Chicago News Cooperative, unveiled on Thursday by former Chicago Tribune managing editor Jim O’Shea, will begin life as a nonprofit, but will change over to an L3C after Jan. 1, when a new Illinois law takes effect, according to a Tribune report.

The L3C is a hybrid corporation that straddles the line between for-profit and nonprofit enterprise. Vermont last year was the first state to pass a law allowing formation of L3Cs, and Illinois this month became the most recent. Several other states are considering similar legislation, as is Congress.

The Chicago News Cooperative doesn’t appear to have investors yet. But it does have a major donor in the John D. and Catherine T. MacArthur Foundation. And it has a paying customer in the New York Times, which is planning a beefed-up Chicago-area edition, much like the Bay Area edition it announced earlier this month. There, the Times will partner with Warren Hellman’s nonprofit Bay Area News Project.

Here in Peoria, The Newspaper Guild has been looking at L3C as a way to save newspaper jobs at the Peoria Journal Star. But I’ve been left with the impression that they need legislation at the national level before they can hope to get potential investors.

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4 Responses to “ Chicago’s getting an L3C newsroom before Peoria ”

  1. Elaine Hopkins on October 26, 2009 at 11:10 am

    It’s fascinating that Tribune executives looted the company with high pay, loaded it up with debt, laid off staff and dumped it. Should they be surprised that the laid off staff will now be competing with it? A sort of rough justice. But how journalism in Chicago will be affected remains to be seen.

  2. Rod Mckiminson on October 27, 2009 at 11:02 am

    Rod Mckiminson writes

    FIGHT AMEREN’S RATE INCREASE PROPOSAL

    Ameren is back at the trough again — filing a formal request with the Illinois Commerce Commission (ICC) for a $226 million rate increase that will raise YOUR electric and natural gas rates.

    AARP is urging you to contact the ICC and say “NO WAY!” to Ameren’s request.

    Less than a year ago, Ameren was granted a $162 million dollar increase.

    Now, they’re asking for a $226 million annual increase in service charges — a huge burden for consumers already struggling with rising utility bills in a tough economy.
    We need YOU to contact the ICC and oppose the rate increase!

    SO, WHAT CAN YOU DO?

    –Attend the ICC Public Hearing and voice your concern over the proposed rate increase!

    Tuesday, October 27th, 2009
    7:00pm Pekin City Council Chambers
    111 S. Capitol Street, Pekin

    If you cannot attend the meeting, call the ICC at 1-800-524-0795 and tell them “NO WAY” to the Ameren rate increase!

  3. Sam Bush on October 27, 2009 at 8:23 pm

    And this has what to do with Chicago getting an L3C newsroom?

  4. AnotherExJSer on October 28, 2009 at 9:44 pm

    Rod, see Billy’s ‘Eight steps to Internet unpopularity.’