Crain's Chicago Business by crainschicago

HEALTH CARE: Inside hospitals’ decisions to not require COVID boosters for staff. PAGE 3

CRAIN’S LIST: Our look at the area’s biggest employers. PAGE 13

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NOW COMES THE HARD PART FOR WALGREENS’ CEO Roz Brewer in her first year disassembled a merger, navigated COVID and launched her predecessor’s plan to turn the drugstore chain into a health care provider BY ALLY MAROTTI

See BREWER on Page 20

Roz Brewer

Raises keep coming at Northern Trust

Chicago keeps biz in the loop on crime An exclusive Slack channel provides direct access to city officials and real-time info as events unfold

A year ago, Northern Trust CEO Michael O’Grady was laying off 500 workers and warning the rest that raises would be slim and many would get no increase at all. That was then. Northern did an about-face and hiked pay late last year and will do so again in a few

months. Salary increases this year will be double the usual bump. Chicago’s largest locally headquartered bank sees a war for talent emerging in financial services and doesn’t want to be caught napping. But the substantial pay hikes have the potential to negate the significant and long-awaited profit boost

STEPHEN J. SERIO

The bank gives up some of its profit gain from longawaited interest-rate hikes to keep workers happy BY STEVE DANIELS

AP IMAGES

A YEAR INTO HER TENURE, Walgreens Boots Alliance CEO Roz Brewer leads a different company than the one she took over. Since Brewer joined the Deerfield-based pharmacy chain from Starbucks in March 2021, Walgreens has started unraveling a trans-Atlantic merger that reshaped the company. It’s also transforming from a vertically integrated drugstore and pharmaceutical distribution company into a health care provider with doctor’s offices attached to its stores. At the same time, business has surged as COVID-19 sends droves of customers in for vaccinations, booster shots and hard-to-find test kits. The influx lifted Walgreens’ net earnings to $3.5 billion last quarter,

Northern expects when the Federal Reserve begins raising interest rates next month. See NORTHERN TRUST on Page 7

BY A.D. QUIG Like many Chicagoans, downtown business leaders were worried about potential unrest in late summer 2020 after the police shooting of Jacob Blake in Kenosha, Wis. The Loop had seen two rounds of looting that summer after similar incidents.

Unlike most Chicagoans, they had access to real-time updates directly from city officials on an invitation-only Slack channel for office building owners and managers, retailers, condo associations and others in the central business district. This exclusive See CRIME on Page 22

THE TAKEAWAY

BOOTH INSIGHTS

He aims to be a public historian for a new generation.

It can be tough to slow down. Instead, do less, but better.

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2 FEBRUARY 21, 2022 • CRAIN’S CHICAGO BUSINESS

The mayoral campaign has definitely begun T GREG HINZ It won’t be easy. Nor will it be impossible. Lightfoot has been warming up to the re-election task for a while. After a miserable stretch, the turning point, I think, came around the holidays, when she abruptly dropped the happy talk about how crime is getting better and started discussing solutions, like redeploying more police into neighborhoods and working with—rather than brawling against—prosecutors. Lightfoot amplified some of those solutions in a high-profile talk to the Civic CommitQUITE A FEW CONTENDERS ARE tee a few days ago. ComSIZING UP THEIR CHANCES. bined with comments to reporters—and yet another fundraising trip out of town, this one only Uncle John Daley, a county commissioner, in office in a town his to New York City—the mayor now has removed any reasonable doubt family politically owned for better of her intentions to run. than half a century. Rather, what’s Crime remains the top problem changed is really this: Lightfoot, in for the mayor and the city, even if order to hang onto office, will have COVID has rattled law enforcement to fight like hell, work her rabbit’s throughout the country by upendfoot for every ounce of luck she can ing many of the conventional norms squeeze out of it and hope for the of civic life. It will continue to be a best. No easy dynasty for her. here’s probably some poetic justice in the fact that, in the same week in which Mayor Lori Lightoot finally made it crystal clear that she’s running for re-election, the House of Daley finally fell. How different Chicago has become in just a few years. Lightfoot, of course, had nothing to do with the conviction of Ald. Patrick Daley Thompson, 11th, on tax evasion charges. The nephew of one Mayor Daley and grandson of another did that to himself, leaving

problem for her as long as she keeps as her top cop David Brown, an official about whose performance I never, ever heard a flattering word from anyone at any time. Crime is a real-life metaphor for a bigger challenge: proving competency. The combination of a series of teacher strikes, mayhem in the streets, a struggling central business district and fiscal woes that only have been papered over are obscuring Lightfoot’s legitimate claims to have moved the needle on spurring investment in outlying neighborhoods. If she wants Chicagoans to give her a new term—especially liberal voters in North Side neighborhoods that put her over the top last time—she’ll have to demonstrate she can handle the job. How well and how effectively Lightfoot does that depends on who’s running against her. Not to make a phrase, it takes somebody to beat somebody. The surest bet to run at the moment is Arne Duncan, former secretary of education under President

ON POLITICS

Barack Obama and former head of Chicago Public Schools. He’s actually to the political left of Lightfoot on crime issues, so much that her team has memorized its lines about Duncan wanting to defund police. But he’s struck a tougher tone lately, something he’ll have to continue if he wants to get the big money from the business community that’s within reach. I hear Duncan has moved up his timetable. Look for a decision before the daffodils are up. Almost as sure to run is Paul Vallas, another ex-CPS chief and former city budget director, who lately has hammered the crime issue almost daily. Voters may want to see a new face; Vallas ran three years ago for mayor, and before that for lieutenant governor. And he can be

a bit much. But voters also may be in the mood for a sharp-talking, nopunches-pulled fellow who wants to lock up the bad guys. Period. Progressives who’ve been waiting for Chicago Teachers Union Vice President Stacy Davis Gates to be their champion may be disappointed. “I’m only interested in the presidency of the CTU,” Gates tells me, saying there are a lot of other talented people in the union. Other names: businessman Willie Wilson, once again. Maybe state Rep. Kam Buckner, D-Chicago. Maybe an alderman, like Silvana Tabares, 23rd—if she’ll give up her seat, that is. And almost certainly more to come. The campaign has begun, folks. At this writing, Lightfoot is the one to beat.

Illinois’ Black workers worse off than peers

esearch shows that racial and ethnic inequalities have cost the U.S. economy $51 trillion in lost economic output in the past 30 years. From labor alone, the losses add up to $22.9 trillion since 1990. For Illinois, a state with a racial employment gap that is double the national average, lower returns to skills for Blacks partly explains why the racial gap in educational attainment persists. The result is lower productivity growth, restraining improvements in living standards for all Illinoisans—not just Blacks. Not only are Black Illinoisans less likely to be employed than similar whites, but they also earn less. Among prime working-age Illinoisans with at least four years of postsecondary education, the median annual wage for white men was 40% higher than that of Black men in 2019. For women, the gap was less pronounced—6.4% higher for white women compared to Black women—according to data from the American Community Survey.

Illinoisans are less likely to find a job than their peers in other states. The unemployment rate among Black Illinoisans is almost 9% compared with 5.7% for American Blacks on average. Historically, Black workers faced comparatively higher risk of job loss at the first sign of economic downturn. On the other hand, a tight labor market tends to reduce the racial and ethnic unemployment gaps. In 2021, there were on average 1.1 job openings for every job seeker in the U.S. However, Illinois barely managed 0.9 job openings per job seeker. That means there weren’t enough jobs for unemployed Illinoisans. A tighter labor market could help improve outcomes for Illinois’ Black population. On the other hand, longer unemployment duration for Blacks will have a lasting negative impact on Illinois’ economy because persistently higher Black joblessness represents lost production, forgone investments and reduced economic potential. Research shows that labor market institutions affect job creation and productivity Growth-favorRACIAL AND ETHNIC INEQUALITIES growth. ing labor market instiHAVE COST THE ECONOMY TRILLIONS. tutions include portable pension and health insurance plans, and individualWhile COVID-19 and public ized and flexible wage setting. health responses caused racial The evidence is overwhelming employment gaps to increase evthat limiting government intervenerywhere, the gap widened more in tion in labor markets and constraints Illinois than the rest of the country. on government union collective Why has the gap increased more bargaining agreements lead to highin Illinois? er employment opportunities and All signs seem to point to fewer higher productivity growth. employment opportunities and Illinois has the third-highest Illinois’ inability to keep up with regulatory burden in the U.S., which other states. means higher costs associated with Despite living closer to cities and business formation and job creation. having higher college attainment rates, Black Illinoisans are less likely Illinois is also highly unionized, and cumbersome public-sector collecto be employed than other similar tive bargaining agreements, as well Black Americans. At the end of 2021, Current Pop- as the state’s constitutional public employee pension protection, mean ulation Survey data showed Black

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spending-and-tax policy cannot quickly adapt to reflect changing labor market conditions. An amendment on the November ballot, Amendment 1, would grant unprecedented powers to government unions—already Illinois’ most powerful special interest group— including the power to override voters. And research shows stronger public-sector unions drive up the cost of government. Already, government unions have applied their political muscle to drive up public-sector wages 60% faster than the private sector in Illinois from 1998 to 2019. Constitutionally protected public retirement

ORPHE DIVOUNGUY ON THE ECONOMY

benefits have saddled the state with $130 billion in public pension debt, which deters business investment as taxes go up while services decrease. Another constitutional restriction would make policymaking impotent and unable to adjust to market conditions. Although discrimination in the labor market persists, policies that

lower barriers to entry and reward productive market activity for all businesses, but especially for Black employers, will be the first steps toward improving the lives of Black Illinoisans. Crain’s contributor Orphe Divounguy is chief economist at the Illinois Policy Institute.

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CRAIN’S CHICAGO BUSINESS • FEBRUARY 21, 2022 3

JOE CAHILL ON BUSINESS

JOHN R. BOEHM

Why hospitals aren’t requiring front-line staff to get boosted Wary of losing more staff amid the omicron surge, Advocate, Northwestern and others pass on another mandate, despite evidence showing protection against the coronavirus drops sharply without a third jab BY KATHERINE DAVIS

See BOOSTERS on Page 16

WHETHER OR NOT BOOSTERS ARE EVER REQUIRED FOR ILLINOIS HEALTH CARE WORKERS, SOME ARE STILL OPTING TO GET THEM.

An offer they can’t refuse Bally’s, one of the bidders for Chicago’s coveted casino project, is reserving the right to buy out its minority investors in a few years—whether those investors want to sell or not, and at a non-negotiable price BY GREG HINZ One of the main bidders to own and operate Chicago’s proposed casino is pitching a plan that would allow it to buy out its minority investors within just a few years—potentially leaving it with no minority ownership long term. Even as Mayor Lori Lightfoot is seeking diversity in casino ownership, a term sheet being circulated by bidder Bally’s Corp. indicates that, six years after opening its proposed Chicago operation, it “will have the right to purchase” the 25% of

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ownership shares that the company has promised the city it will make available to minorities. The minority owners would not have the right to refuse, and the sale price would not be negotiated at the time but based on the profitability of the casino in the preceding year. Bally’s says there is nothing unreasonable about the plan, in part because most investors will want to cash out after a few years rather than holding a long-term investment. It also says the proposed terms are “illustrative” and subject to change if the city objects.

ount McDonald’s among the potential economic casualties of a shooting war in Ukraine. President Joe Biden has vowed to hit Russia with punishing sanctions if its 100,000plus troops encircling Ukraine invade. That, in turn, would likely trigger Russian backlash against American interests, including any U.S. companies within its reach. With nearly 800 outlets in the country, McDonald’s is very much within Russian reach. And the Chicago-based burger giant makes a particularly juicy target as perhaps the most recognizably American company operating globally. Around the world, the Golden Arches are seen as standins for Old Glory, symbols of U.S. power. As such, McDonald’s has long been vulnerable to geopolitical conflicts and public sentiment in countries from China to Chile. When anti-American sentiment surges anywhere, McDonald’s often becomes a focal point of popular anger and government sanctions. Over the years, crowds aggrieved by U.S. actions or policies have laid siege to its restaurants in Pakistan, Indonesia, Mexico, Lebanon, Italy and elsewhere. McDonald’s declined to answer my questions about the situation in Ukraine, but history shows that the chain has reason to worry about developments there. When the U.S. hit Russia with sanctions after it invaded Ukraine’s Crimea region in 2014, Moscow retaliated against McDonald’s. Vladimir Putin’s regime ordered a dozen McDonald’s restaurants closed and conducted snap

City Hall isn’t commenting, consistent with its policy in dealing with prior reports about possible drawbacks in some of the casino bids. But an outside expert who once served on the Nevada Gaming Control Board said such a clause would be “troublesome” if it came to him for ruling. “Having such a clause makes it look like there isn’t a true arm’slength investment,” attorney Jeff Silver said in a phone call. Allowing the majority owner to See BALLY’S on Page 16

inspections of hundreds more. Tensions reheated a few years later when Russia came under fire for meddling in the 2016 U.S. presidential elections. Nationalist Russian politicians called for shutting down McDonald’s restaurants in the country and labeled it a “foreign agent.” In 2018, authorities fined 44 Moscowarea McDonald’s for health code violations. In the face of such pressures, McDonald’s took steps to integrate itself into the Russian economy. The company advertises the fact that its Russian outlets buy 98% of their supplies locally. A McDonald’s executive in Russia declared, “We’re one of the most Russian companies there is.” McDonald’s has continued to expand in Russia. The company wouldn’t provide an up-to-date count, but Reuters reported McDonald’s had 750 Russian restaurants in 2020, with plans boost the total to 800 by opening more in the country’s far east. Russian outlets represent a small fraction of McDonald’s 38,000 restaurants around the world. But Russia is a source of growth for a company that’s weighted heavily toward mature markets in the West. Now McDonald’s faces a potential threat to that growth as Russian troops menace Ukraine. The company may have weathered the Crimean annexation without losing much ground in Russia, but the current crisis is different. A full-scale invasion of Ukraine is on the table. Biden has warned such an attack would be met with far harsher sanctions than Russia has See CAHILL on Page 4

ALAMY

ven though many Chicago hospitals required employees to get the initial two doses of the COVID-19 vaccine, several are not requiring booster shots, reflecting the challenges and pressures health care providers face amid a nationwide health care worker shortage. Some of Chicago’s largest hospital chains, including Advocate Aurora Health, Northwestern Medicine, the University of Chicago Medical Center, NorthShore University HealthSystem and Sinai Chicago, confirmed to Crain’s that they’re not requiring employees to receive the third jab despite data showing that protection against the COVID-19 virus and its variants drops sharply for those without a booster. Some hospitals say they are encouraging their staffs to get the

Why Ukraine matters to McDonald’s

A McDonald’s in Kyiv, Ukraine

2/18/22 3:32 PM

4 FEBRUARY 21, 2022 • CRAIN’S CHICAGO BUSINESS

Chicago hotels still lagging national recovery A reliance on business travel and the meetings industry continues to hold back Chicago’s downtown hospitality sector

Chicago hotel owners last year got a desperately needed jolt of new business after 2020 devastated their bottom lines and pushed some properties into foreclosure. But the recovery from the COVID-19 pandemic is still happening much more slowly in the city than it is elsewhere in the country. Downtown hotels finished 2021 with an average occupancy rate of 43% for the year, according to research from hospitality data and analytics firm STR. That was up dramatically from the 27% average the year before, but still well below the 74% average in 2019, STR data shows. The national average, meanwhile, got much closer to pre-pandemic levels: Average occupancy nationwide in 2021 was nearly 58%, compared with 66% in 2019, according to STR. The disparity highlights the uneven comeback for the hotel sector almost two years into a public health crisis that initially flattened demand and is still causing massive headaches for local hoteliers. While some markets that rely more heavily on leisure tourism enjoyed a surge

a rudderless city tourism bureau on a protracted hunt for new leadership, and Chicago’s COVID hill is a steeper climb. “There are clear winners, and there are markets that did not win or recover quite as well,” said Jan Freitag, national director of hospitality analytics for CoStar Group, which owns STR. “Chicago is lagging the national occupancy recovery.”

SETBACKS

The slower recovery is happening in other major markets, too. Revenue per available room, a key metric that accounts for both occupancy and room rates, was down by 33% last year compared with 2019 among the nation’s 25 largest markets. The national average was down just 17% from 2019 levels, according to STR. But hotels in the Chicago area underperformed both, with RevPAR that was 40% below 2019 levels. It was a disappointing result for hotel investors that were hoping the early-summer surge in leisure travel to the city would continue into the fall. But the delta and omicron variants quashed dreams of a return to normalcy for tourists. Those setbacks also pushed many companies to postpone bringing employees “ALL MAJOR MARKETS ARE SUFFERING back to offices FROM CRIME, BUT IT SEEMS PARTICULARLY on a regular basis, which Freitag sees as the PUNITIVE IN THE CHICAGO MARKET.” key for busiHotel investor Bob Habeeb ness travel-reliant cities like of visitors last year as the vacci- Chicago to catch up with other nated population grew, Chicago markets. fit the profile of the type of mar“For a lot of people, being in ket that has struggled the most: the office is still not a thing. As urban, dense and dependent on long as people aren’t back in the business travel and a convention office, downtown areas will conindustry that has yet to recover in tinue to hurt” from a lack of cora meaningful way. porate travel business, he said. Layer in a surge of crime causJust as crucial is the return of ing both real and perceived issues conventions and trade shows, among prospective tourists and whose attendees typically accorporate travelers to the city and count for 20% of all downtown

BLOOMBERG

BY DANNY ECKER

hotel rooms booked each year, according to city tourism arm Choose Chicago. McCormick Place reopened to events last summer and has hosted 77 events since July 1 that drew more than 674,000 guests, according to the Metropolitan Pier & Exposition Authority, which owns and operates the convention center. But the impact on hotels was watered down compared to pre-pandemic times, as those events only drew about 65% of their forecasted attendance, according to MPEA.

CLOUDY FUTURE

Hotel investor Bob Habeeb, whose Chicago-based development firm Maverick Hotels & Restaurants opened the new Sable hotel at Navy Pier early last year, said downtown business over the last several months has been especially sluggish as COVID variant waves set in. He is once again hoping for a strong

summer leisure travel season ahead—”Last year it happened almost overnight, and it was an avalanche,” he said—but acknowledged the market will trail other cities until business travel comes back. Then there’s the crime issue. COVID remains the biggest problem for hotels, Habeeb said, but the recent rise in carjackings in the city and other violent crime isn’t far behind in keeping visitors away. “All major markets are suffering from crime, but it seems particularly punitive in the Chicago market,” he said. “The business community looks forward to the same strong, decisive leadership at the city, county and state levels on crime that we saw on the pandemic.” Hotel owners are counting on the recovery pace picking up speed in 2022 to avoid another rash of property distress and loss of value that plagued last year.

Hotel Felix and JW Marriott Chicago joined the Palmer House Hilton on the list of properties whose owners were hit with big foreclosure lawsuits, while the owner of the Hilton Suites Chicago Magnificent Mile in the Gold Coast handed its deed to its lender to avoid a legal battle. Prices paid for downtown hotels reflected the cloudy future ahead for the city’s hospitality sector: The Thompson Chicago and Talbott Hotel in the Gold Coast were both sold for just more than the value of the debt the sellers owed on the properties; the previous owner of the St. Clair Hotel just off the Mag Mile sold the 208-room property for close to its debt level in the face of a deadline to pay off the loan; and the Hotel Audrey at 166 E. Superior St. traded late in the year for a fraction of the sellers’ investment in the 216-room hotel over the past decade.

Big Mac makes a big target for Russian retaliation against U.S. sanctions CAHILL from Page 3 seen before. American companies like McDonald’s could be in for equally extreme Russian retaliation. Putin likely would look for opportunities to hurt the U.S. wherever he can find them. And McDonald’s Russian restaurants couldn’t be more conveniently located for the purpose. It’s not hard to imagine crowds stoked with nationalistic fervor storming those restaurants, or Kremlin apparatchiks ordering closures. McDonald’s has little, if any, influence on Putin’s decisions regarding Ukraine. And it may have some decisions of its own to make. For example, would it close

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Ukrainian restaurants if Russia invades? In 2014, it shuttered three Crimean outlets, a move that may have contributed to Russian actions against McDonald’s back then. Or would it continue operating Ukrainian restaurants to the extent possible in a war zone, a choice that could mollify Putin but also potentially come across as acquiescence in Russian aggression? And what about the Russian McDonald’s? If Putin allows the company to continue operating after a Ukraine invasion, McDonald’s will have to decide whether or not to do so. From a purely financial perspective, it’s an easy call. You keep the restaurants open. And the reality is that companies

rarely abandon profitable, growing markets just because local governments abuse the populace or wage war. That’s pretty much the approach McDonald’s and other global U.S. companies have taken as authoritarianism has increased around the world. They’ve kept doing business in China despite Xi Jinping’s genocidal treatment of the Uyghur minority; in Russia as Putin poisoned and imprisoned dissenters; and in other countries where oppressive autocrats have taken power.

DEBUNKED

There was a time when Western politicians and business leaders argued economic

engagement with dictatorial regimes would lead them to embrace Western-style civil liberties. Events of the past decade debunked that argument. Repression is rising in China, the former Soviet bloc and other places where markets are open to U.S. companies. Perhaps more persuasive is the argument that corporate exits would sacrifice profits and hurt people without changing government policies in places like Russia. The Putins of the world will do whatever they can get away with, even if it costs their people Big Macs, Oreos or Cokes. When companies leave such a country, they lose money, consumers lose products, employees lose jobs and suppliers lose business. But

it probably won’t get anybody freedom of speech or force foreign invaders to withdraw. Still, Ukraine could become a new test of big companies’ flexibility in matters like human rights, individual liberty and self-determination. Unprovoked, large-scale territorial aggression across widely recognized international borders would require a further tightening of the moral blinders that enable companies to disregard authoritarian abuses around the world. Is corporate America willing to associate itself with regimes that invade sovereign states? A Russian attack on Ukraine would force McDonald’s and others to face that question. Unless Russia kicks them out.

2/18/22 3:35 PM

How we’re boosting the fight against hunger Bank of America is proudly supporting our employees’ health and safety and addressing one of our local community’s most critical needs. Each day, millions of Americans suffer from food insecurity, which typically spikes during the winter months. For every employee who lets us know they’ve received a booster shot, Bank of America is donating $100 to local hunger-relief organizations. This is a direct investment in the health of our teammates, and in the well-being of the communities where we work and live. Through this effort, our team in Chicago recently presented Northern Illinois Food Bank and Greater Chicago Food Depository with checks totaling $400,000. This contribution is in addition to our long-standing philanthropic support to help fight hunger and food insecurity across the country. We are proud to be able to help our community as we work together to move forward.

Rita Sola Cook President, Bank of America Chicago

Learn more at bankofamerica.com/chicago

Donations in each market reflect $100 per employee who has recorded their booster and an additional company contribution. Vaccination boosters and vaccination reporting are voluntary. Bank of America, N.A. Member FDIC. Equal Credit Opportunity Lender. © 2022 Bank of America Corporation. All rights reserved.

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Sherman ‘Dilla’ Thomas The rapid rise of Thomas, an urban historian by avocation and ComEd worker by vocation, was sparked by a series of sprightly, engaging Chicago history videos on TikTok (where he is 6figga_dilla). And now, he’s developing an idea to pitch to Netflix on a Chicago-set, fact-based history series. The father of seven, who gives South Side tours via ChicagoMahogany.com on the side, lives in the Auburn Gresham neighborhood with his wife and family. By Steve Johnson

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How did you become a history buff? I’m coming to understand it was always in me. We used to go to Gary, Indiana. My mom’s dad stayed over there. And for the longest time, none of them could tell me who Gary was. Like, as a kid, it just drove me crazy: Why does Gary get a whole city, right? Come to find out he was a steel magnate (Elbert Henry Gary, a U.S. Steel founder).

And how did you, a guy who is 40, find his way to TikTok? I think it’s a great example of not being scared of what’s right in front of us. Because I have children, I always want to listen to the newest rapper or the newest pop star to stay engaged with them, and TikTok was one of those things. I was really pushing for my daughter to recite the history lines. She’s 8. I thought TikTok would go crazy, this cute little girl, have her tell those stories. And she was like, “You do it.”

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P33 CEO Brad Henderson, Cleveland Avenue Investor Andrea Zopp and Techstars Managing Director Neal Sáles-Griffin will join Crain’s reporter Katherine Davis to discuss the gaps in tech workforce training, who will fill them and other avenues to pursue a career in technology.

What explains people’s interest in what you do? I don’t know if it’s the messenger. It’s certainly the message, though. Chicagoans are really, really tired of everybody beating up on our city. And those of us who really care understand that it ain’t an overnight solve. History lessons don’t solve all the problems in the world, but I think those history lessons spark conversations. And those conversations are what changes the world. And now that I’m in this space, I realized that this generation didn’t have a public historian. There are other African American storytellers here, but I wouldn’t say that we had a historian. And that’s now very much what I want to be.

What’s your best advice for young people? Survive not being cool in high school. It’s real hard when you live in the ‘hood, and you’re the nerd. So you do everything you can not to be the nerd. But I was a big, big closet nerd. In my heart, I just wanted to be home, reading. A lot of us make the mistake of not going after opportunities because they aren’t cool.

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Where does “Dilla” come from? I got it from my mother when I was like 11 or 12. If you live in Chicago long enough, somebody you know bought a junk car off of Western Avenue, right? You know the car’s gonna be a lemon, but we all went and bought one anyway. So, she used to say I was like the Western Avenue car dealers: I could sell her anything. “Dilla” kind of just stuck, urbanized from “dealers.”

CRAIN’S CHICAGO BUSINESS • FEBRUARY 21, 2022 7

Northern Trust is determined to win the war for talent with big salary increases NORTHERN TRUST from Page 1 The quandary has Northern’s stock lagging archrivals State Street, based in Boston, and Bank of New York Mellon, based in New York. All three comprise the world’s foremost managers of the assets of the largest institutional investors and wealthiest families. But a management challenge for Northern’s executives is undoubtedly good news for Northern’s 7,000 workers here. They’re seeing the steepest salary increases in years, and possibly ever. The last time compensation costs climbed like this was in 2017, and much of that was due to a one-time employee bonus tied to passage of dramatic corporate tax cuts. In a Jan. 20 conference call with analysts, Chief Financial Officer Jason Tyler said salary increases toward the end of last year, which isn’t Northern’s normal time of year for wage adjustments, added $13 million to compensation expenses and will add an additional $3 million this quarter. But that wasn’t the end. “What we are going to do with our normal base pay adjustments—that starts in the second quarter—that’s going to be higher, and it’s reflective of inflation,” he said. “Usually we see that (as) an $8 (million) to $10 million a quarter impact. This year it’s going to be more like $20 million a quarter.” Salaries alone will boost compensation costs 5% in 2022, he said. Overall compensation expenses, including bonuses and performance payouts, are expected to rise 9%, according to Deutsche Bank analyst Brian Bedell. Last year, compensation costs rose just 3% and the year before less than 5%.

REWARDING WORKERS

Compensation totaled $2 billion in 2021, so a 9% increase would amount to about $181 million. Inflation cuts both ways, though. Higher interest rates will mean Northern can stop waiving fees investors in its moneymarket mutual funds normally would pay. Fund fee waivers totaled $80 million in the fourth quarter. That money will return to the bottom line. In addition, Northern Trust has $70 billion in earning assets whose yields rise and fall with interest rates. The first 0.25% increase the Fed makes will generate about $35 million in net revenue in that quarter, Tyler said, with additional rate hikes after that producing substantially less in net revenue growth. Spread out over four quarters, that’s $140 million. At a minimum, Northern should see $220 million of added revenue due solely to higher interest rates. Salaries and bonuses aren’t the only ways employees are compensated, of course. The cost of benefits rose 11% last year and 9% the year before. A 10% increase in 2022 would mean $43 million in added expense. So that num-

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ber, combined with wage hikes, essentially equals the minimum revenue lift from higher rates. “Northern and other trust banks have increased compensation, tech spending, and promotional costs as inflationary pressures have taken hold,” Wells Fargo analyst Mike Mayo wrote in a Jan. 20 report. “In the short term, there is a mismatch between increased spending and benefits from higher rates, but that should mostly equalize and perhaps swing toward the benefit of trust banks (and others) later in 2022.” For now, though, Northern’s

stock performance reflects investor concern about its costs. Its stock is up 4.7% so far this year, while State Street’s and BNY’s are up 7.9% and 7.2%, respectively. Northern’s rivals are benefiting from Wall Street’s focus on expense control in the high-cost custody-banking business.

COMPETITIVE NECESSITY

The stock-price gap also reflects a broader philosophical divide on Wall Street between banks and other financial services companies perceived as holding the line on costs versus those that see rewarding their employees

as a competitive necessity. That divide—currently favoring the penny pinchers—is sharply evident in the stock prices of the nation’s two largest banks. No. 1 JPMorgan Chase is down about 2.3% this year, while No. 2 Bank of America is up 7.4%. Chase CEO Jamie Dimon said last month that CEOs “shouldn’t be crybabies about wage inflation.” “It’s a lot of competition, and we intend to win,” Dimon said. “And sometimes that means you’ve got to spend a few bucks.” Northern CEO O’Grady agrees. “To compete and win in the marketplace, we need the best people

and we need digital capabilities,” he told analysts. “If you’re in an inflationary environment, that’s something you have to deal with.” Northern’s edge in the race against inflation is its track record of faster fee growth than State Street and Bank of New York. Those fees, though, are tied to another big economic wild card that has shown a lot of volatility lately but little clear direction: the stock market. With many of its fees tied to the value of investor assets it manages or safeguards, Northern will be rooting for a stock market that has soared in recent years to resume its upward trajectory.

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8 FEBRUARY 21, 2022 • CRAIN’S CHICAGO BUSINESS

Go slow to go fast: A disciplined approach to growth ing and over time has managed to create a multimillion-dollar global enterprise. Having worked in venture capital and at a private-equity-backed business, I found this level of discipline dogmatic. There is so much capital available, why not take advantage of it? After all, in business school, we learned that the first step of starting a company was to create a business plan in order to get funding. Yet we celebrated equity and funding rounds without fully understanding what they meant. These raises represented money that needed to be paid back—with an expected return, fast. When did it become standard to celebrate owing and borrowing so much?

Jamie Shah is an entrepreneur-in-residence at the Polsky Center for Entrepreneurship & Innovation at the University of Chicago. GETTY IMAGES

fter spending seven years working alongside my dad at our family’s business, Chem-Impex, I took a year off to join another family-founded company, this one backed by private equity, in hopes of getting a new perspective. I recently sat down with my dad to reflect on my time away and exchange thoughts on what I’ve learned and still have left to learn. My biggest takeaway: A long-term, generational horizon gave us freedom to take things slow. It’s an approach I think all businesses should consider. Some of my earliest childhood memories involved driving with my family and watching my dad point out which businesses he predicted would go out of business and which would stand the test of time. My family would debate the merits and faults of the companies, using our own frameworks to make our case. One value that we pointed to frequently was discipline. My dad is disciplined in every way: At 74 years old, he has never consumed alcohol and will tell you how many days in a row he has made it to the gym. His discipline is also reflected in his business. He has never taken any external fund-

TIME AND ENERGY

While not everyone can take a multidecade approach to growth, I think many businesses would benefit from going slower. Consider expanding into one less market, releasing one less product feature and borrowing a little less. This will give you the time and energy to be able to execute with excellence. It will also allow you to maintain a steady pace and avoid burnout. In a recent article in The New

Advice for small businesses and entrepreneurs in partnership with the University of Chicago Booth School of Business.

Yorker, author Cal Newport makes the case for what he calls Slow Productivity, with the goal of keeping “an individual worker’s volume at a sustainable level.” As the volume of work increases past a certain

threshold, he argues, “the weight of these efforts can become unbearably stressful.” This thinking ties back to the Toyota Production System principle of heijunka, a lean manufacturing method for reducing the unevenness in a production process and minimizing overburden. A steady, predictable amount of work can be liberating and motivating. It can be tough to intentionally

slow down, particularly when we feel there’s always someone else willing to work harder. But there are diminishing returns. Instead, do less, but better. As my dad reminds me, “Business is like an allyou-can-eat buffet. Our eyes are always bigger than our stomachs. Fill half your plate and come back for seconds. If you fill yourself up too early, you might not have room for dessert.”

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10 FEBRUARY 21, 2022 • CRAIN’S CHICAGO BUSINESS

EDITORIAL

Mayor’s chance to put more chips on equity

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rograms designed to undo the damage of decades of disinvestment in Black and Brown communities are a proper use of government resources, incentives and muscle. We all benefit when opportunity is shared equitably, and Mayor Lori Lightfoot has put a needed emphasis on neighborhood-level action in this vein through her Invest South/West program and other initiatives. Now, with City Hall poised to bless one of five proposals for Chicago’s first casino, the mayor has a chance to again put her passion for equity into action— this time in the very heart of the city— by holding the bidders for this lucrative project to their promises to include minority investors in their ventures. Of course, all of the casino bidders have assembled proposals that speak to the city’s desire to promote diverse investment. To even be considered, the proposals had to include at least 25% minority ownership, according to the city’s original request for bids. The fine print on at least one of the bidders’ plans, however, deserves a closer look. As Crain’s Greg Hinz reports, Bally’s Corp., which is helming two of the five casino proposals now under review, is reserving the right to buy out its minority investors in six years—whether those investors want to sell or not, and at a non-negotiable price. Bally’s, for its part, says there is nothing unreasonable about the plan outlined in a term sheet being circulated among potential investors. Most minority investors, the company argues,

THE CASINO PROJECT PRESENTS A RARE OPPORTUNITY TO CREATE WEALTH FOR CHICAGOANS WHO HAVE BEEN FROZEN OUT FOR TOO LONG. will want to cash out after a few years rather than holding a long-term investment, and the opportunity to sell back shares to Bally’s at a price based on the

previous year’s earnings before interest and other matters affords them needed liquidity. The company also says the proposed terms are “illustrative” and

subject to change if the city objects. So far, the Lightfoot administration isn’t commenting. But an outside expert who once served on the Nevada Gaming Control Board tells Crain’s the buyout clause is unusual to say the least, and gives the impression the minority partners’ involvement is mere window dressing. Crain’s reporting finds, meanwhile, that no other bidders for the Chicago casino are seeking such a buyout provision. As Hinz points out, minority buyouts have been a flashpoint in Illinois in the past. In 2019, Rush Street’s partner in its Rivers casino in northwest suburban Des Plaines sold its stake to Churchill Downs. In the process, most of the minority stockholders cashed out, selling their share to Churchill Downs. Despite reservations, the Illinois Gaming Board ended up approving the deal, even though the minority ownership share dropped from 17% to roughly 2.7%. Of course, the selection of a downtown casino bid should ultimately be decided based on a wide array of factors. Hopefully the winning bid will be one that can deliver the maximum economic development punch to the neighborhood where it lands while creating jobs within relatively easy reach for people throughout the city. But a project of this scope also presents a rare opportunity to create wealth for Chicagoans who have been frozen out for too long. The financial agreements surrounding that bid should provide meaningful and durable investment opportunities for Black and Latino investors. Anything less would be reasonable cause to consider a different bid.

Chicago’s lakefront with a natural open card-perfect lakefront and skyline? Since the building was first clouted space and wetland habitat harmonizing onto the lakefront generations ago, the with Northerly Island and return to the city and its people have become more en- people of “nature’s metropolis” its garvironmentally sensitive and aware of how den in the city. It can be an ecological restoration of access to nature is as important to healthy city living as clean air and clean water. global significance: recycling the buildThe plan of Chicago’s century-delayed vision of Northerly Island as a natural respite area where IT’S TIME TO RESPECT THE INTEGRITY OF the prairie meets Lake Michigan CHICAGO’S LAKEFRONT WITH A NATURAL has been realized through Studio Gang’s interpretation of the plan. OPEN SPACE AND WETLAND HABITAT But still separating the prairie and the lake is the dull-black HARMONIZING WITH NORTHERLY ISLAND. hulk of steel, glass and concrete of the Lakeside Center, which calls for an ing’s enormous volumes of steel and ecological solution—not a casino—to re- glass and using its concrete foundations alize Daniel Burnham’s and Edward Ben- to create lake fish habitats and even a nett’s big idea of 28 miles of reclaimed few of Burnham’s envisioned archipelanatural lakefront interrupted only by the go of small islands along the South Side lakefront. Chicago River. But not a casino. Not now. Not ever. It’s time to respect the integrity of

Write us: Crain’s welcomes responses from readers. Letters should be as brief as possible and may be edited. Send letters to Crain’s Chicago Business, 150 N. Michigan Ave., Chicago, IL 60601, or email us at letters@chicagobusiness.com. Please include your full name, the city from which you’re writing and a phone number for fact-checking purposes.

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YOUR VIEW

the fire-melted steel and rehe McCormick Place storing Chicago’s lakefront to Lakeside Center should a natural waters’ edge. never have been alArchitecture and struclowed to violate Chicago’s tural engineering have also “forever open, clear and free changed since the great Mcof any buildings” lakefront Cormick Place fire when doctrine, but special-interthe Lakeside Center was reest political forces pushed built on a forest of vertical through the construction beams—as shown by the vast of the massive, black, and open spans of later convennow mostly obsolete buildtion center expansions west ing across from Northerly of South DuSable Lakeshore Island—twice, including re- Paul O’Connor is the Drive. The old building’s vibuilding the original struc- former executive ability as a place for largeture after it burned to the director of World scale conventions is past. ground. Business Chicago. Now some are suggesting Chicagoans saw the world differently back then when we were that this structural wall dividing the uniknocking down irreplaceable architec- ty of Chicago’s unique, green lakefront tural landmarks in the Loop and were into north and south be repurposed as a not much aware of the natural environ- casino. Do the city and its people really ment and its importance to us. It was a want a black box blinking lurid, colored missed opportunity, not clearing away lighting to blemish its signature post-

On Char lion cine least need in Ch Nort Ch in th our e goan He is pa com prev

Sound off: Send a column for the Opinion page to editor@ chicagobusiness.com. Please include a phone number for verification purposes, and limit submissions to 425 words or fewer.

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CRAIN’S CHICAGO BUSINESS • FEBRUARY 21, 2022 11

LETTERS TO THE EDITOR

Chicago only thrives when everyone is thriving One of the prime reasons the Bluhm Family Charitable Foundation announced a $45 million gift to establish the Northwestern Medicine Bluhm Heart Hospital has been one of the least discussed by the mainstream media: the need for investment in achieving health equity in Chicago and beyond (“Bluhm family gives Northwestern Medicine $45 million,” Feb. 14). Chicago has the largest life expectancy gap in the U.S. and it will take the collective effort of our entire community to ensure that all Chicagoans can live healthy and abundant lives. Heart disease impacts millions of lives and is particularly devastating in under-resourced communities where people are less likely to get preventive care or be screened for risk factors.

That’s why it is so critical to Chicago that Northwestern Medicine’s cardiovascular program is expanding its access to the best cardiac care, regardless of ability to pay. We are especially excited that the new Bluhm Heart Hospital will develop outreach and education efforts to support heart health and address the social determinants of health under the leadership of Dr. Clyde W. Yancy, chief of cardiology at Northwestern Medicine and vice dean of diversity. We share his belief that when we achieve health equity, our patients benefit, our health care centers benefit and our city benefits. Expanding access to care and moving the needle on health equity in Chicago is critically

needed. We hope that our family’s investment in health equity will encourage other philanthropic leaders and foundations to increase funding for expanding access to health care for all Chicagoans. Chicago can only thrive when all of our neighbors are thriving, too. LESLIE BLUHM AND MEREDITH BLUHM-WOLF Directors, Bluhm Family Foundation Chicago

Give up on the Bears, Mayor Lightfoot Re: “City preparing pitch to keep Bears in Chicago, Lightfoot says,” Feb: 11: I am a 59-year season ticket holder. Doesn’t the mayor real-

ize that ingress and egress for the normal fan at Soldier Field is beyond terrible? Parking is tragically missing. Leaving the stadium on foot is like being herded like cattle. Yes, a roof would be a great addition, but the stadium is too small to hold a Super Bowl, which would be resoundingly supported by Chicago fans. And, unless those 10,000 vacant city lots— which Mayor Lightfoot mentioned the Bears could build on—are in one place, how could that benefit the Bears? Just tell the mayor to give up. What she wants to do will not benefit anybody. JOHN SIMON Arlington Heights

CRAIN’S CHICAGO BUSINESS

Chief executive officer KC Crain Group publisher/executive editor Jim Kirk Editor Ann Dwyer Creative director Thomas J. Linden Director of audience and engagement Elizabeth Couch Assistant managing editor/columnist Joe Cahill Assistant managing editor/digital Ann R. Weiler Assistant managing editor/news features Cassandra West Deputy digital editor Todd J. Behme Deputy digital editor/audience and social media Robert Garcia Digital design editor Jason McGregor Associate creative director Karen Freese Zane Copy chief Scott Williams Copy editor Tanya Meyer Contributing editor Jan Parr Political columnist Greg Hinz Senior reporters Steve Daniels, Alby Gallun, John Pletz Reporters Elyssa Cherney, Katherine Davis, Danny Ecker, Ally Marotti, A.D. Quig, Dennis Rodkin, Steven R. Strahler

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ACCOUNTING Withum, Chicago Jeff Willinger joins Withum’s Digital Technology and Transformation team as the Firm’s first Digital Experience Director. Jeff, a known Microsoft superstar and MVP, specializes in advising clients on Digital Transformation strategies creating a True Digital Workplace and building enterprise solutions and collaborative intranets and portals that increase employee engagement through modern technology solutions. Jeff is an expert in all things Google Cloud, Azure, and more.

ARTS / ENTERTAINMENT The People’s Music School, Chicago The People’s Music School has named Francis “Frank” Graffeo as their new President. Graffeo, a classically trained conductor of opera, symphony, ballet, and musical performance, was most recently the Executive Director of the Joy of Music School in Knoxville, Tennessee for 15 years. Graffeo has also been an audition judge for the Metropolitan Opera and trained at the world-class New England Conservatory of Music, Centro Linguistico Spermentale in Italy, and Texas Tech University.

PEOPLE ON THE MOVE

To place your listing, visit www.chicagobusiness.com/peoplemoves or, for more information, contact Debora Stein at 917.226.5470 / dstein@crain.com

EDUCATION

HEALTH CARE

LAW

REAL ESTATE

Chicago State Foundation, Chicago

Cancer Treatment Centers of America, Zion

Nixon Peabody LLP, Chicago

CRG, Chicago

Nixon Peabody LLP is pleased to announce the appointment of John Ruskusky to lead the global law firm’s Complex Disputes practice. With more than 20 years practicing as a trial attorney, John has extensive experience in litigating and counselling clients about their complex disputes throughout the country, including in large transaction disputes, life sciences and medical devices concerns, trade secrets, fiduciary duty claims, BIPA and data privacy matters, and dissolution and valuations.

CRG has welcomed Morgan Whiteley as Director of Investments in the firm’s growing residential group. Morgan will support the pursuit of development opportunities in the nation’s top markets, helping to lead land acquisitions, development underwriting, market research and product positioning. Morgan was previously associate director of capital markets, debt and equity placement at Walker & Dunlop, where she sourced and structured equity, mezzanine and debt financing for owners and developers.

LAW

STAFFING / RECRUITING

Nixon Peabody LLP, Chicago

Robert Half, Chicago

Nixon Peabody LLP is pleased to announce Complex Disputes attorneys Elizabeth Zamora Meraz and William Kirby to its 2022 new partner class. Zamora Meraz Elizabeth represents healthcare companies, financial institutions, and LLCs in a wide range of disputes that are resolved in courts and arbitrations throughout the country. She advises on issues related to commercial properties, residential Kirby development projects, easements, and zoning. Bill represents both local and national clients across a broad spectrum of industries in a variety of commercial disputes involving trade secret misappropriation, product liability, financial services litigation, professional malpractice, and breach of contract.

Michelle Reisdorf, a 23-year veteran of talent solutions and business consulting firm Robert Half, has been promoted to district president, overseeing operations throughout Illinois. In this role, she will lead Robert Half’s finance and accounting, administrative, contract and consulting practice solutions, matching specialized talent with companies throughout the region.

Chicago State Foundation, the chief fundraising partner of Chicago State University, is pleased to announce the appointment of two new members, Erin Inman and Joseph A. Cancila, Jr., Inman to its Board of Directors. Inman is the President & CEO of Primera Engineers, a full service engineering design and consulting firm. Inman brings nearly 30 years of leadership and a passion for supporting young engineers and Cancila women in STEM. Cancila is a Partner in Riley Safer Holmes & Cancila, LLP. Cancila has been recognized as a top litigator and legal strategist for more than 30 years. Cancila is a member of multiple bar associations and has successfully argued appeals in the United State Court of Appeals.

FINANCIAL TECHNOLOGY Halo Investing, Chicago CONSTRUCTION Executive Construction, Chicago Executive Construction is excited to announce the promotion of Karl Spitzer to Vice President. As a Senior Superintendent with nearly 30 years of experience, Karl has led many of the firm’s largest Spitzer corporate headquarters builds for McDonald’s, BMO Harris, Citibank, and Zurich NA. His attention to detail ensures safe, timely completion for his financial and hospitality clients, for whom business continuity and speed-to- Silva market is critical. The firm has also promoted Luis Silva to Senior Superintendent. In his 23-year career, he has built a robust portfolio of interior spaces. Most recently, the 100,000-sf Federal Home Loan Bank of Chicago in the Old Post Office, and the 195,000-sf space for The Aspen Group in the Fulton Market District.

CONSULTING HBR Consulting/Keno Kozie, Chicago HBR Consulting has hired Bill Elser as vice president of engineering services at Keno Kozie Services. Bill brings 25+ years of experience supporting service delivery and technical operations across a wide range of technology and services companies. Bill’s specializes in the development and implementation of services that are predictable, sustainable, and focus on continuous service improvement. Bill previously served as a Global Delivery and Practice Director for TEKsystems Global Services.

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Advertising Section

Halo Investing, an award-winning technology platform for protective investment solutions, is pleased to announce that Terry Jenkins has joined the Advisory Board of the Company. Mr. Jenkins is the former President of KeyBank Wealth Management and former President and CEO, US Wealth Management of BMO Harris Bank in Chicago. He has deep experience in all segments of the wealth management business and across banking, RIA, and BrokerDealer channels.

INSURANCE Attorneys’ Liability Assurance Society, Ltd., Chicago Attorneys’ Liability Assurance Society (ALAS), a lawyer-owned mutual insurance company providing law firms with best-in-class coverage, loss prevention, and Zabinski claims management, announced that Lawrence Zabinski will be retiring later this year after eight successful years as President and Chief Executive Officer. Zabinski leaves ALAS in the strongest shape in its history, with a record Donnelly number of insured lawyers and its highest ever net worth. Senior Vice President Daniel Donnelly will succeed Zabinski on September 1, 2022. Donnelly, a 25-year veteran with the company, currently serves as head of ALAS’s Claims Department, where he has managed thousands of lawyer professional liability claims involving almost every legal practice area.

Cancer Treatment Centers of America® (CTCA), a premier national oncology network of hospitals and outpatient care centers, is pleased to welcome Dr. Ryan Engel, Medical Oncologist, to the medical staff at its Zion, IL, hospital. Board certified in medical oncology, hematology and internal medicine, Dr. Engel evaluates and treats patients with various types and stages of cancer, with a focus on gastrointestinal and thoracic cancers. For more about Dr. Engel, visit cancercenter.com.

INVESTMENT BANKING Kroll, Chicago Kroll is pleased to announce that David Rowe has joined the Corporate Finance practice as Managing Director. David leverages over 21 years of advising boards and management teams, and provides fairness opinions, solvency opinions and business valuations related to M&A, leveraged buyouts, dividends and related-party transactions. David received an MBA in finance and accounting from The University of Chicago Booth School of Business and is a magna cum laude graduate of the University of Michigan.

NON-PROFIT Genesys Works, Chicago Genesys Works is pleased to welcome Ominara M. Caldwell as our Director of Corporate Partnerships. With over twenty years of experience within sales, leadership, and external relations, Ominara will lead our business development efforts, connecting Chicago companies to tomorrow’s talent pool and contributing to a more diverse labor force. Genesys Works is a youth workforce development resource connecting businesses with skilled Chicago Public School seniors from historically excluded communities.

PRIVATE EQUITY Kinzie Capital Partners, Chicago Kinzie Capital Partners, a Chicago-based private equity firm, is proud to welcome Roopa Weber as Director, Investor Relations and Operations. Roopa brings 23 years of industry experience to Kinzie’s growing team, providing oversight of investor relations, marketing, business administration, operations and compliance. She previously worked at Ariel Investments where she held several roles including Head of Institutional Client Services for over a decade.

LAW Nixon Peabody LLP, Chicago Nixon Peabody LLP is pleased to announce Healthcare attorney April Schweitzer, and Global Finance attorney Joshua Scarborough to its 2022 new partner class. April focuses on corporate and Schweitzer regulatory issues affecting hospitals, health systems, physician groups, and federally qualified health centers. She counsels clinical integration networks and accountable care organizations focusing on the transition Scarborough to value-based care. Josh is known for his unique skillset in various lending arrangements and transactions. He represents borrowers and commercial lending institutions in secured lending and other structured lending transactions across a variety of industries, including manufacturing, healthcare, technology, and other service industries.

TECHNOLOGY IRI®, Chicago IRI®, a global leader in innovative solutions and services for consumer, retail and media companies, has welcomed Misty Muscatel Davis as global chief marketing officer. “IRI has enjoyed tremendous growth and success, and I look forward to working with the very talented IRI team. Leading some of the world’s largest global brand and agency partnerships with Google over the last 16 years will serve as a springboard to take IRI’s marketing initiatives to the next level,” shared Davis.

TRANSPORT / LOGISTICS Redwood Logistics, Chicago Redwood Logistics is celebrating Miriam Saari’s promotion to Vice President of Pricing and Yield Management. Miriam utilizes a data driven approach in working with her team to lead Redwood’s efforts in delivering strategic solutions to its incumbent and new customers, matching their network needs against the ever changing world of carrier partner capacity. Miriam leverages twenty years of logistics experience as she continues to develop the Redwood engagement model.

2/15/22 10:03 AM

CRAIN’S CHICAGO BUSINESS • FEBRUARY 21, 2022 13

CRAIN'S LIST LARGEST EMPLOYERS Ranked by full-time local employment as of 12/31/2021. e = Crain's estimate (in gray). 2021 RANK

FULL-TIME WORLDWIDE EMPLOYEES 12/31/2021; 1-YEAR CHANGE

FY 2021 WORLDWIDE REVENUE (MILLIONS); 1-YEAR CHANGE

EMPLOYER

HEAD OF CHICAGO OFFICE

FULL-TIME LOCAL EMPLOYEES 12/31/2021; 1-YEAR CHANGE

Jonlee Anderle Chair, Chicago Federal Executive Board

52,316 -0.1%

2,779,128 -0.5%

—

U.S. GOVERNMENT 230 S. Dearborn St., Chicago 60604; Chicago.FEB.gov

CHICAGO PUBLIC SCHOOLS 42 W. Madison St., Chicago 60602; CPS.edu

Pedro K. Martinez CEO

40,119 3.8%

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CITY OF CHICAGO 121 N. LaSalle St., Chicago 60602; CityofChicago.org

Lori Lightfoot Mayor

31,020 0.3%

31,022 0.3%

$10,532.3 1 -9.3%

AMAZON.COM INC. 227 W. Monroe St., Chicago 60606; Amazon.com

Andy Jassy CEO

27,050 2 e 43.8% e

1,608,000 3 23.9%

$469,822.0 21.7%

ADVOCATE AURORA HEALTH 3075 Highland Parkway, Downers Grove 60515; AdvocateAuroraHealth.org

James H. Skogsbergh President, CEO

25,906 -2.6%

52,928 -1.5%

—

NORTHWESTERN MEMORIAL HEALTHCARE 251 E. Huron St., Chicago 60611; NM.org

Dean M. Harrison President, CEO

24,053 9.3%

25,358 9.1%

$7,359.4 17.0%

COOK COUNTY 118 N. Clark St., Chicago 60602; CookCountyIL.gov

Toni R. Preckwinkle President, board of commissioners

22,074 4 0.0%

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UNIVERSITY OF CHICAGO 5801 S. Ellis Ave., Chicago 60637; UChicago.edu

Paul Alivisatos President

20,781 5 4.2%

20,871 4.6%

$5,585.3 5.9%

WALMART INC. 8430 W. Bryn Mawr Ave., Chicago 60631; Walmart.com

Jarred Crabtree Vice president, regional general manager

18,500 9.5%

2,200,000 6 0.0%

$539,000.0 7 2.9%

WALGREENS BOOTS ALLIANCE INC. 108 Wilmot Road, Deerfield 60015; WalgreensBootsAlliance.com

Rosalind Brewer CEO

16,817 25.7%

315,000 -4.5%

$132,509.0 8.6%

JPMORGAN CHASE & CO. 10 S. Dearborn St., Chicago 60603; JPMorganChase.com

Tony Maggiore President, Midwest middle market banking

14,583 6.1%

255,351 -0.6%

$121,649.0 7 1.8%

UNITED AIRLINES HOLDINGS INC. 233 S. Wacker Drive, Chicago 60606; United.com

Scott Kirby CEO

13,171 19.1%

84,100 34.4%

$24,634.0 60.4%

AMITA HEALTH 200 S. Wacker Drive, Chicago 60606; AmitaHealth.org

Keith Parrott President, CEO

13,051 -8.6%

$4,230.4 8.8%

STATE OF ILLINOIS 100 W. Randolph St., Chicago 60601; Illinois.gov

J.B. Pritzker Governor

12,243 -12.1%

44,857 -2.2%

$40,475.0 8 6.2%

JEWEL-OSCO 150 Pierce Road, Itasca 60143; JewelOsco.com

Mike K. Withers President

10,892 8.6%

10,892 1.3%

—

RUSH UNIVERSITY MEDICAL CENTER 1620 W. Harrison St., Chicago 60612; Rush.edu

Omar B. Lateef CEO

10,502 2.7%

$2,542.4 12.1%

UNIVERSITY OF ILLINOIS CHICAGO 601 S. Morgan St., Chicago 60607; UIC.edu

Michael D. Amiridis Chancellor

10,394 -0.8%

11,699 -0.4%

$3,582.3 2.0%

AMERICAN AIRLINES GROUP INC. O'Hare International Airport, Chicago 60666; AA.com

Rich Ashlin Vice president of ORD operations

10,000 3.1%

126,000 22.7%

$29,900.0 72.8%

NORTHSHORE UNIVERSITY HEALTHSYSTEM 1301 Central St., Evanston 60201; NorthShore.org

J.P. Gallagher President, CEO

9,848 9 28.7%

9,848 28.7%

$3,289.4 34.7%

NORTHWESTERN UNIVERSITY 633 Clark St., Evanston 60208; Northwestern.edu

Morton O. Schapiro President

9,638 -2.5%

9,973 -1.5%

—

ABBOTT LABORATORIES 100 Abbott Park Road, Abbott Park 60064; Abbott.com

Miles D. White Executive chairman Robert B. Ford President, CEO

9,476 e

113,000 3.7%

$43,100.0 24.5%

ABBVIE INC. 1 N. Waukegan Road, North Chicago 60064; AbbVie.com

Richard A. Gonzalez Chairman, CEO

9,451 e -0.9% e

48,000 6 2.1%

$56,197.0 22.7%

AT&T INC. 225 W. Randolph St., Chicago 60606; ATT.com

Eileen M. Mitchell President, AT&T Illinois and AT&T Great Lakes states

9,191 e -1.6% e

202,600 6 -12.2%

$168,864.0 -1.7%

CHICAGO TRANSIT AUTHORITY 567 W. Lake St., Chicago 60661; TransitChicago.com

Dorval R. Carter Jr. President

9,057 -0.1%

$1,606.2 10 4.4%

LOYOLA MEDICINE 11 Shawn P. Vincent 1 Westbrook Corporate Plaza, Westchester 60154; LoyolaMedicine.org President, CEO

8,615 13.8%

$1,980.3 1.9%

Research by Sophie Rodgers (sophie.rodgers@crain.com) | Local employment figures include full-time employees in Cook, DuPage, Kane, Lake (Ill.), Lake (Ind.), McHenry and Will counties unless otherwise noted. Crain’s estimates are shown in gray. NOTES: e. Crain's estimate. 1. City of Chicago estimate. 2. Includes estimated distribution center employment figures from MWPVL International. Includes Whole Foods employees. 3. Includes part-time employees. Includes Whole Foods employees. 4. Represents full-time equivalent employment. Excludes Forest Preserve District of Cook County, judges and elected officials. 5. Includes employees of University of Chicago Medicine, the university's medical group. 6. Includes part-time employees. 7. Company estimate. 8. State of Illinois estimate. 9. As of Jan. 2021 Northwest Community Hospital in Arlington Heights became part of NorthShore. 10. CTA estimate. 11. Loyola Medicine is a wholly owned subsidiary of Trinity Health Corp.

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P013_CCB_20220221.indd 13

2/18/22 2:59 PM

14 FEBRUARY 21, 2022 • CRAIN’S CHICAGO BUSINESS

The buyers, a couple from the neighborhood, have experience updating Chicago greystones like this one BY DENNIS RODKIN After at least eight decades in the family of a pioneering Black attorney, a rundown Bronzeville greystone has been sold to a couple who plan a complete rehab. “There’s a lot of history there,” said Jeff Douglas, who with his wife, Stephanie, bought the 19th-century Victorian on Dr. Martin Luther King Jr. Drive for $525,000 on Feb. 14. The couple, who live about a block away in another smaller historical greystone they restored, often walked past this one with their dog and decided “it has to be brought back, and we’re the ones to bring it back,” Stephanie Glover-Douglas said. The seven-bedroom, 4,000square-foot home was built in the 1890s, and since at least the 1930s has been owned by the family of Nathan K. McGill. He was the first Black assistant attorney general for the state of Illinois and played significant roles in Chicago’s Black newspapers and public library system. In October, three brothers, who are grandsons of McGill, put the property on the market at $500,000. Along with the main house, there’s also a coach

house with a two-story apartment on the lot, which is the equivalent of 2.7 standard 25by-125 city lots. The house “demands a lot to be done,” one of the brothers, Winston McGill Jr., said at the time. Winston said his generation had been planning a full rehab since their father died in 2006, but “at this point in our lives, I don’t think we can give it what it’s demanding.”

THIRD CONTRACT

The house went under contract quickly, as predicted at the time by the listing agent, Deborah Rountree of Baird & Warner. The contract fell through, and the one that was completed Feb. 14 was the third contract. Ethics rules prohibit Rountree from disclosing what transpired with the first two contracts. The buyers, who were represented by Bertina Power of Engel & Völkers Chicago, expect to take about a year to complete the rehab. “That’s fluid, given some of the possible supply chain issues,” Glover-Douglas said. The pair—she’s a Chicago Public Schools administrator and he’s an executive with the Potbelly sandwich chain—are 20-year

residents of Bronzeville, with two children. The home’s limestone exterior has pillar carvings, a bay of windows and a detailed cornice. The utilities are working, but all need to be updated, according to McGill, and the home still has its original woodwork, tile and stained glass. Glover-Douglas said they were initially attracted by the stately beauty of the house, “but the more we looked into it, the more history we learned.” Nathan McGill got his law degree from Boston University in 1912 and practiced in his native Florida until the early 1920s. He moved to Chicago to become general counsel of the Chicago Defender. The newspaper later explained that McGill’s “color alone prevented him from receiving in Florida what he has in Illinois. In Illinois, he is a state’s attorney; in Florida, no matter how well trained he was, his color barred him. We are pointing out to you the advantages of living north, where a man with an education and a trade or profession is given a chance.”

LEGAL CAREER

McGill was an assistant state’s attorney for Cook County in the mid-1920s and became the first Black assistant attorney general for the state of Illinois in 1929.

VHT STUDIOS

Historic Bronzeville home to get full rehab

The seven-bedroom, 4,000-square-foot home was built in the 1890s. He was the first Black member of the Chicago Public Library board, appointed in 1930. For nearly a decade, he was the second in command at the Chicago Defender, the historic newspaper that urged Black Americans to move out of the south to the relatively more welcoming north. After McGill left the Defender in

1935, he founded his own newspaper, the Metropolitan News. With his wife, Beatrice, McGill bought the house, whose street was then called South Park Way, probably in the early 1930s, according to Winston McGill Jr. Nathan McGill died in 1946. Crain’s could not determine when Beatrice McGill died.

Developer plans big suburban rental home project It’s one of the biggest trends in real estate today—building single-family houses and townhomes for rent—as developers target people who want to live in a house but can’t afford one or don’t want the responsibilities of ownership BY ALBY GALLUN A Texas residential developer plans to build hundreds of single-family houses and townhomes in southwest suburban Oswego, but with a twist: They’re for rent, not for sale. It’s an idea that caught on after the housing bust and has become one of the hottest trends in real estate today. Catering to people who want to live in a house, but either can’t afford a big down payment or just don’t want to own one, developers are building homes specifically for renters. “It gives people that stepping stone from an apartment to a home without buying one,” said Adam David Lynd, president and CEO of Lynd Living, the San Antonio-based developer leading the Oswego project. A Lynd joint venture is raising money for a 178-unit build-torent townhome project at 137 Dorset Avenue, about a mile southeast of downtown Oswego, according to online marketing materials from CrowdStreet, a crowdfunding firm that’s soliciting investors for the project. Lynd also plans a large singlefamily rental development next

P014_CCB_20220221.indd 14

door that’s not part of the offering, he said, declining to discuss specifics of that project.

FINANCING

The Lynd venture aims to finance the first phase of the project, called Ashcroft Place, with $14.9 million in equity raised by CrowdStreet, about $800,000 of its own equity and $47.2 million in debt, according to the CrowdStreet website. CrowdStreet requires a minimum investment of $25,000, with a fundraising deadline of March 4, according to the site. The single-family and townhome rental market gained traction after the housing crash, as big investors bought up foreclosed homes at low prices and rented them out. It was a distressed investment strategy. But the past few years, developers have been building homes specifically for rent. They’re targeting tenants, often millennials with growing families, who don’t want to be burdened with all the responsibilities of ownership or don’t have enough savings to make a down payment for a purchase. Rising home prices also have pushed many would-be home-

buyers out of the market, creating demand for single-family rentals. Many have outgrown their apartments and are saying, “I want to live in a house and have a backyard and a dog,” Lynd said. He cited a survey showing that 45% of all renters want to own a home but can’t afford it. He sees parallels with the subprime lending craze that fueled the housing bubble more than 15 years ago. Back then, loose residential lending standards allowed people to stretch to buy a home, ultimately resulting in the housing bust. Today, home rentals are a much healthier and sustainable solution, he said.

INVESTMENT

Big real estate companies, including homebuilders like Lennar and PulteGroup, have been investing in the sector over the past few years. Last month, Harrison Street Real Estate Capital, a Chicago-based privateequity firm, and Chicago developer Core Spaces formed a $1.5 billion joint venture to build subdivisions with hundreds of homes in markets including Denver, Dallas and Nashville. The venture is also working on

A rendering of one of 178 build-to-rent townhomes planned for Oswego. plans for a project in west suburban Westmont. Growth prospects for the sector are strong, especially in metropolitan areas like Seattle, Los Angeles, Phoenix, Atlanta and Denver, according to a recent report from Green Street Advisors, a California-based research firm. “Demand is strengthened as the 35-44-year-old cohort continues to grow and age into later life stages that typically require the space a single-family home has to offer,” the report says. “Greater adoption of work-fromhome has and should continue to provide an incremental lift to demand for the sector as well, as

renters seek more space.” Green Street is less enthusiastic about the Chicago market, which ranks at the low end on key growth and return metrics. The firm forecasts a risk-adjusted expected return of 6.4% for the Chicago-area single-family rental market, versus a 6.9% average for the top 25 U.S. metro areas. Lynd plans to develop the Oswego townhomes in a joint venture including Hinsdale-based West Point Builders. In the Chicago area, Lynd also is developing a 224-unit apartment project in Willow Springs. Its past projects here include EnV apartments in River North.

2/18/22 3:03 PM

FINALISTS NAMED FOR 2022 CHICAGO CIO ORBIE® AWARDS

The Chicago CIO of the Year® ORBIE® Awards honors chief information officers (CIOs) who have demonstrated excellence in technology leadership. With support from Crain’s Chicago Business, ChicagoCIO will honor the CIOs who are driving innovation and transforming Chicagoland’s leading organizations. The CIO ORBIE Awards will take place on May 13th at Marriott Marquis Chicago. To learn more about the event visit chicagocio.org/awards/details. The finalists are below:

SUPER GLOBAL | Amir Arooni

Over $10 billion annual revenue & multi-national operations Sabina Ewing

Discover Financial Services

GLOBAL |

Abbott

Laura Kohl

TransUnion

Morningstar

LARGE ENTERPRISE

Maryann Byrdak

Francesco Tinto

Conagra Brands

Walgreens Boots Alliance

ENTERPRISE

John Mohr

MacArthur Foundation

Samir Shah

Karriem Shakoor

Anupam Khare

Dr. Kevin Lowell

Chris Walter

Janet Zelenka

Fortine Brands Home & Security

UL LLC

Over $3.5 billion annual revenue

Vava Dimond

Feeding America

Hub Group, Inc.

Anson Johnson United States Gypsum

Oshkosh Corporation

UScellular

| Over $750 million annual revenue

Brad Bodell

Heather Bunyard

Trustmark

Cision

LARGE CORPORATE Eric Levin

Sasser Family Companies

Kiran Achen

Tokio Marine Highland

Michelle Kasson The AZEK Company

Central Garden & Pet Company

Stericycle Inc.

Over $300 million annual revenue

Brock Morrison

GCM Grosvenor

tab doc.indd 1

Mindy Simon

ITW

Over $1 billion annual revenue & multi-national operations

Shawn Ellis

CORPORATE

Mike Parisi

Becky Nelson RPS

Augustus Oakes ATI Physical Therapy

Michael Pegues

City of Aurora, Illinois Gov’t

Up to $300 million annual revenue Sunitha Chamarti Jolanta Pomiotlo ReedGroup, Guardian

22cb0051.pdf

PRA

RunDate 2/21/22

Marcio Ribeiro Dom’s Kitchen & Market

Kader Sakkaria

FULL PAGE

Ruffalo Noel Levitz

Color: 4/C

Raj Sampoornam Byline Bank

2/14/22 11:29 AM

16 FEBRUARY 21, 2022 • CRAIN’S CHICAGO BUSINESS

COVID booster shots aren’t required for employees at some Chicago hospitals BOOSTERS from Page 3 booster but aren’t mandating them at this time because it’s not required by federal and local laws. Currently, the U.S. Centers for Medicare & Medicaid Services requires health care workers at facilities that participate in Medicare and Medicaid programs to have just two vaccine doses, and the state of Illinois requires all health care workers in the state to have the same. While the Centers for Disease Control & Prevention currently defines “fully vaccinated” as having only two doses of the vaccine, it does recommend boosters, which are shown to increase protection against COVID-19, and the delta and omicron variants of the virus. A study published in medical journal JAMA found that the likelihood of developing a symptomatic infection from the omicron variant, the strain that dominated the most recent COVID

Medical Center decided not to introduce additional COVID-19 vaccine mandates for UCMC employees,” UChicago Medicine said in a statement to Crain’s. “Our approach is consistent with that of our peers in the hospital community nationwide.” Advocate Aurora and Northwestern declined to explain why they are not mandating boosters, and NorthShore didn’t respond when asked for its reasoning.

DILEMMA

The reluctance of hospitals to require boosters reflects the dilemma they now face two years into the pandemic. Hospitals are struggling to handle waves of COVID patients amid widespread staffing shortages. Because some local hospitals lost hundreds of workers during the first batch of vaccine mandates, they worry a booster requirement might spark more resignations. Yet workers who don’t get boosters are more likely to fall ill with “I AM DOUBTFUL IF YOU WILL SEE COVID and trans(NEW MANDATES), BASED ON THE FACT mit it to others. “It’s a really, THAT MUCH OF THE GOVERNMENT IS really tough situation here,” Dr. ROLLING BACK REQUIREMENTS.” Emily Landon, the executive medical Amanda Sonneborn, lawyer, King & Spalding director of infecwave, was 66% lower for people tion prevention and control at who were boosted compared to UChicago Medicine, told Crain’s those who had only two shots. on Jan. 20 during the omicron “Given the ongoing critical pa- surge. “Everybody is shorttient-care demands and the pan- staffed. Our regular, everyday demic surge faced by hospitals workers are getting COVID at an in Chicago and across the coun- alarming rate.” try, the University of Chicago Hospitals across the country

and in Illinois have lost workers since the pandemic began, according to the U.S. Bureau of Labor Statistics. The number of U.S. hospital employees has dropped 2% from 5.24 million in March 2020 to 5.13 million in December 2021. In Illinois, the number of hospital workers has dropped about 4% from about 241,500 in March 2020 to 232,700 in December 2021. More evidence of labor issues turned up in a recent survey from Chicago-based American College of Healthcare Executives that polled 310 executives and shows personnel shortages are hospital CEOs’ top concern. “The hospital systems, like other employers—because of the labor shortage, they are following the CDC guidance,” says Margo Wolf O’Donnell, an attorney specializing in employment law at Benesch Friedlander Coplan & Aronoff. “In some instances, they don’t want to exceed what is required in order to ensure there is enough staffing to meet the needs of the patient population right now.”

COMPLIANCE

In accordance with state and federal requirements, Sinai Chicago, Chicago’s largest safety net hospital, required employees have two COVID-19 doses by Dec. 31. About 99% of its 3,200 caregivers have complied, with a small number of deferrals and just 14 terminations, spokesman Dan Regan says. While Sinai says it is strongly encouraging caregivers to get boosted, it’s not yet a require-

w HOSPITAL WORKERS DECLINING Hospitals across the country and in Illinois have lost workers since the pandemic began as the health care industry faces widespread burnout and turnover. As a result, hospitals are struggling to handle waves of COVID patients.

HOSPITAL WORKERS, 2012-2021 Illinois

National

260,000 6.0 million

5.1 million

245,000 5.5 million

December 2021

230,000 5.0 million

232,700

December 2021

215,000 4.5 million 200,000 4.0 million

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

Source: U.S. Bureau of Labor Statistics

ment. But more than 40% of the staff has received a booster. “Given this response and the fact that there is not yet a state or federal requirement for boosters, we have not yet decided to make boosters mandatory,” Regan says. Unlike some other states, including New Jersey, New York, California and New Mexico, Illinois has yet to require that all health care workers be boosted, though it does require the first two doses. Gov. J.B. Pritzker’s office didn’t answer questions about boosters for health care workers. But now with COVID restrictions set to ease in Illinois and around the country, it’s possible government will never mandate boosters, says Amanda Sonneborn, a Chicago-based lawyer at Atlanta

law firm King & Spalding. “I am doubtful if you will see (new mandates), based on the fact that much of the government is rolling back requirements, not adding new requirements,” Sonneborn says. Whether or not boosters are ever required for Illinois health care workers, some are still opting to get boosted. James Kerridge, the assistant chief nursing officer at Sinai Chicago, got his booster shot in November. Since then, he’s urged co-workers to get the third dose. “We have an obligation as health care professionals to recommend that people get vaccinated and boosted,” Kerridge says. “But the organizational leader in me understands that mandates can be tricky.”

Bally’s term sheet for Chicago casino bid seeks to buy out minority investors passed on to Crain’s by an interested party, and confirmed as unilaterally buy out minority authentic by Bally’s. The term sheet says Bally’s partners makes it look like their participation is “window dress- will own 75% of the Chicago ing” and “illusory,” said Silver. “I operation, and other, minorihaven’t seen anything like that ty partners 25%, with some of the latter found via a conven(elsewhere).” The other bidders, Hard Rock tional stock offering and others and a pair of partnerships head- through crowdfunding. Bally’s ed by Chicago casino mogul Neil has proposed two possible sites: Bluhm’s Rush Street Gaming, say on truck marshaling yards just they are not seeking similar buy- west of McCormick Place and on out provisions. Hard Rock adds the old Chicago Tribune printing that it has agreed to split general plant property at Halsted and partnership interest 50-50 with Chicago. The clause states that Bally’s is Loop Capital’s Jim Reynolds, a prominent Black financial exec- prepared to offer loans to potential partners who lack re“HAVING SUCH A CLAUSE MAKES IT LOOK sources. Borrowers would LIKE THERE ISN’T A TRUE ARM’S-LENGTH pay an 11% interest rate— INVESTMENT.” the company Jeff Silver, former Nevada Gaming Control Board member says it has to pay 8% to 9% utive who contends his bid will to get money on the corporate offer minorities unique and sig- debt market—but have to put up nificant control over all aspects only 10% of their total stake with of the casino and its develop- their own cash. After six years, the minority ment. The buy-out clause involved partners would have a right to is part of a 10-page “term sheet sell their stake back to Bally’s at and indication of interest” that a price based on earnings before Bally’s has sent to prospective interest, taxes, depreciation and minority investors. A copy was amortization, more commonly BALLY’S from Page 3

P016_CCB_20220221.indd 16

known as EBITDA, in the preceding year. The same standard would apply to Bally’s if it exercised its right to buy out the minority partners. That would appear to give minority investors some downside protection if the casino ended up losing money but limit the upside gain if the facility becomes a real financial hit. In a phone interview, Christopher Jewett, Bally’s vice president of corporate development, said the clause was inserted to “simplify” matters if the investors want to sell out. By allowing loans of up to 90% of equity, “We’re taking all the financial risk.” He added, “The purpose here is to provide liquidity for investors, so they can get their money back.” If the city or Illinois Gaming Board object to that clause, it could be changed, he said.

CONTROVERSY

The question of minority interests being bought out has been controversial in Illinois. In 2019, Rush Street’s partner in its Rivers casino in suburban Des Plaines sold its stake to Churchill Downs. In the process, most of the minority stockholders cashed out, selling their share to Churchill Downs. Despite reservations, the Gaming Board

An architect’s rendering of Bally’s proposal for the McCormick Place truck marshaling yard. ended up approving the deal, even though the minority ownership share dropped from 17% to roughly 2.7%. Jewett, the Bally’s executive, said minority investors are very interested in what the company is offering, with 100 term sheets returned with offers of $200 million in participation. But one of the investors the company offered for interview was not aware of the buy-out clause until I asked him about it. Blanton Canady said he’s still interested because he expects to make only a short-term invest-

ment. “I’m impressed at how they reached out to minority investors,” he said. Lightfoot has strongly emphasized economic diversity as mayor, asserting and pursuing policies designed to inject investment into predominantly Black and Latino neighborhoods that have received little for many decades. The city’s request for bidders said each would have to include at least 25% minority ownership to be considered. An announcement on who will be selected is expected in the next month or two.

2/18/22 3:33 PM

SPONSORED CONTENT

Are you anticipating that the estate and gift tax will remain the same in 2022? And do you recommend charitable giving as a tax deduction strategy? What strategies do you suggest for clients looking to preserve more of their wealth for their family or charitable giving? Katz: The only changes we have seen related to the estate and gift tax are the inflation adjustments to the annual exclusion gift ($16,000 now vs. $15,000) and the overall estate exemption ($12,060,000 now vs. $11,700.000). Current tax proposals do not decrease the estate exemption. Effective estate and charitable planning start with conversations with clients about the purpose of their wealth and their overall goals. Once we understand their vision, in terms of legacy and charity, we can put pencil to paper and start to model different strategies to optimize the financial plan. In terms of charitable giving, there are many strategies that all depend on an individual’s circumstances and goals. Giving appreciated stock or making qualified charitable donations from an IRA tend to be the most popular options. For our ultra-high net worth clients, we have been executing large gifting strategies using IDGTs [Intentionally Defective Grantor Trust] and SLATs [Spousal Lifetime Active Trusts]. Bivens: We continue to see planning focused on using the increased estate and gift tax exemption before the scheduled sunset in 2025. Continual utilization of the annual $16,000 gift tax exclusion also remains a very important strategy in reducing client estates. Charitable giving can be an effective tax reduction strategy. Donations can range from cash and securities given to public charities, up and through private foundations, depending upon the

of these rules in various countries. Further, our clients have analyzed the impact of potential U.S. tax legislation alongside these global changes. Specifically, due to the complexity of these organizations and their businesses, KPMG is assisting our clients with modeling the potential impact of OECD proposals over the short- and long-term and planning for various scenarios. This process allows a company’s tax department to more clearly communicate to leadership the potential impact of proposals, even in an environment of continued uncertainty. Bivens: With the most recent OECD release of the Global Anti-Base Erosion Model Rules, our clients recognize that the complexity of the global tax rules will increase. Regardless of the size of an organization’s international footprint, we recommend clients closely follow the evolution of global tax initiatives. Certain Baker Tilly clients have enhanced their global tax structures and transfer pricing models in anticipation of the new global standards. As a best practice, we recommend that multinational enterprises perform initial risk assessments of their global tax structures. Most importantly, they should understand where opportunities may be to drive global tax efficiencies, while still complying with the new and evolving global tax standards. What are some of the key tax issues created by a more virtual workforce? Katz: The key issue that comes to mind is state and local withholding requirements for employers and their employees. Many businesses will go from withholding in a small number of cities and states to trying to figure out if they need to withhold for all the cities and states where their

“IF THERE IS ONE THING BUSINESS OWNERS ARE GOOD AT, IT IS ADAPTING TO CHANGE AND FINDING A SOLUTION.” —JASON KATZ, BARTLETT WEALTH MANAGEMENT

ABOUT THE PANELISTS JEREMY J. BIVENS (CPA, MST), is a partner at Baker Tilly and the firm’s Chicago office tax leader. He has more than 20 years of experience providing tax and business advisory services to middlemarket, large and private equity-owned portfolio companies. A licensed Certified Public Accountant, Bivens has extensive business advisory experience in areas including manufacturing and distribution, food and beverage, professional services companies, software and technology, mergers and acquisitions and overall business development assistance. He earned a master of science in taxation at DePaul University.

ROBERT A. CLARY is a principal in KPMG’s Chicago International Tax practice and co-leader of markets for KPMG’s International Tax practice in the U.S. He has more than 16 years of experience in providing various tax consulting services, including cross-border tax planning, M&A planning and transfer pricing disputes. Clary has been a frequent speaker at professional organizations including BNA-Bloomberg, Chicago Tax Club and the Practicing Law Institute. He holds a law degree from the University of Miami and a master of laws in taxation degree from New York University.

JASON M. KATZ, CFP®, CPA, CEPA, is a wealth advisor and principal at Bartlett Wealth Management, providing strategic income tax planning, estate planning and other wealth planning services to individuals and families. He is a Certified Financial Planner and licensed Certified Public Accountant with more than 17 years of experience in providing comprehensive financial and tax planning services. Katz is passionate about solving complex financial planning issues with optimal solutions and staying on the cutting edge of tax legislation.

That could give the jurisdiction the right to tax profits and require significant tax reporting. Penalties can be imposed for noncompliance. To mitigate and/or manage this

risk, KPMG assists clients with developing proper controls, including the use of technology, to understand where employees are located and the tax consequences.

In the coming years, more and more employees will want to work from different locations. We suggest establishing a robust approval process to handle such requests.

Taxes change. Your goals shouldn’t. Tax planning should be part of your overall financial strategy, not an afterthought. At Bartlett, we dig deep to get to know you so that your goals are what drive your decisions. Let us remove the guesswork

level of contributions and family commitments clients may want. In addition, we continue to work with our clients to enact broader strategic plans focused toward wealth preservation strategies, including the implementation of revocable trusts, deliberate planning in order to remove particular assets from our clients’ estates early, as well as insurance planning. How have your multinational clients approached the global tax initiatives set forth by the OECD? Clary: Our clients have closely monitored the proposals made by the OECD regarding international taxation and the implementation

P017_019_CCB_20220221.indd 19

workers are located. Tracking days worked in each location is a huge burden that can be expensive. Clary: Even before the pandemic, tax laws in the U.S. and around the world had not fully evolved to account for an increasingly “remote” workforce. Many tax consequences for businesses and individuals turn on where an employee is physically located and carrying on his or her business activity. Coming out of the pandemic, one key issue that companies are grappling with is the possibility of unknowingly creating a tax nexus with a jurisdiction—a state or foreign country—based on the location of their remote employees.

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2/14/22 3:50 PM

20 FEBRUARY 21, 2022 • CRAIN’S CHICAGO BUSINESS

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Brewer’s eventful first year as Walgreens CEO BREWER from Page 1 compared with a $300 million loss during the same period in 2020. Retail comparable store sales—a closely watched growth metric— jumped 10.6%, the fastest rate in more than 20 years. Still, between COVID effects and predecessor Stefano Pessina’s retention of power—as executive chairman and the company’s largest shareholder—it’s hard to discern Brewer’s impact on the company. Her influence could become clearer in the year ahead, as early indications of the success or failure of the health care push reveal themselves. She’ll also have to manage the potential divestiture of Boots, a British drugstore chain acquired in the 2014 merger of Walgreens and Pessina’s Alliance Boots, a $16 billion deal that gave Pessina 16.9% of the combined company’s stock. Brewer announced last month that Walgreens would seek bids for Boots, which is expected to draw bids as high as $9 billion from private-equity firms. Walgreens unloaded another big piece of Alliance Boots in a deal struck shortly before Brewer arrived last year, selling drug wholesaling operations mostly in Europe to AmerisourceBergen for $6.5 billion. “What now happens over the next year will be fascinating,” says Harry Kraemer, clinical professor at Northwestern University’s Kellogg School of Management and former CEO of health care company Baxter International. “Are they really doing what they said they’re going to do? Are they capable of getting (Boots) spun out at the right price?” Depending on COVID’s twists and turns, challenges that dogged the company pre-pandemic—like pressure on drug pricing and competition from online retailers—may dominate its story again. No pharmacy operator has figured out how to deal with profit pressures caused by pharmacy benefit managers that dictate drug prices, says Dylan Finley, equity analyst at Morningstar. The strategy has been to grow in other areas. In Walgreens’ case, that comes in the form of its investment in primary care provider VillageMD and other newly acquired health care businesses.

HEALTH CARE PUSH

The company bought into VillageMD before Brewer came in, but she made a $5.2 billion investment in October that upped Walgreens’ stake to 63% from 30% and accelerated plans to put medical clinics in stores. The company now plans to open VillageMD clinics in 160 of its nearly 9,000 stores this year, with a goal of 1,000 clinics by 2027. Walgreens added more health care capabilities last fall, when it invested $330 million in home care provider CareCentrix and $970 million in specialty pharmacy company Shields Health Solutions. At an investor conference in October, Brewer issued unprecedented growth goals that hinge on the success of the health care push, targeting 11% to 13% long-term growth in earnings per share. To hit those targets, she’ll have to weave Walgreens’ pharmacy operations and its new health care businesses into a synergistic whole.

She grouped the health care units into a new business segment called Walgreens Health, the finances of which will be disclosed in earnings reports. Some analysts laud Brewer for her clear vision and transparency surrounding the company’s health care push but say it’s too early to know if the strategy is working. “We don’t know the long-term economics, and it’s hard to truly value what Walgreens Health will contribute to the company and if it will be enough to mitigate the margins concern,” Finley says, “but she’s been as transparent as she can be and she’s made all the right moves from a strategic point of view.” Primary care can be a hard business, says Joel Shalowitz, a health care consultant and adjunct professor at Northwestern University’s Feinberg School of Medicine. The costs of maintaining a practice have risen, and unlike specialty doctors who make money off high-cost procedures or treatments, there are few ways for primary care practices to increase revenues. “It’s a very tough business, and you have to watch it very, very carefully,” said Shalowitz, who ran a primary care group for more than 30 years. “All kinds of costs are continuing (to rise).”

AGGRESSIVE STRATEGY

Though Brewer’s growth goals are aggressive, they’re tied to the strategy Pessina set before she joined Walgreens. Her predecessor’s presence still looms in other ways, too. Before Pessina stepped aside as CEO, a company spokesperson said he would “continue to play a key role in developing the strategy of the company, along with the new CEO, his or her leadership team and the board of directors.” Brewer has named a handful of top executives, some from Walmart and Starbucks. They include Danielle Gray as global chief legal officer, Tracey Brown as president of retail products and chief customer officer, and Holly May as global chief human resources officer. Pessina appointees still hold high-ranking posts, too, including his life partner, Ornella Barra, as international chief operating officer; James Kehoe as global chief financial officer and John Standley as president of Walgreens. One of his longtime lieutenants, Alex Gourlay, stepped down as co-chief operating officer last May. Walgreens says in a statement that “Roz is working closely with our executive chairman, Stefano Pessina, board of directors and leaders across the company to ensure Walgreens Boots Alliance is gaining momentum by the day and well positioned for sustainable, long-term value creation.” The statement also said Walgreens “has performed very well across many key metrics” since Brewer took over, pointing to 7.8% sales growth and 53% earningsper-share growth in the quarter that ended Nov. 30. Walgreens has completed three quarters since Brewer took the helm March 15. Total sales increased 5.9% during those quarters to $102.2 billion, compared with the same period the prior year. Walgreens booked $5.3 billion in profit during those

quarters, reversing a loss of $1.6 billion the year before. Of course, COVID closures hurt 2020 performance, and vaccinations and testing boosted 2021 results. Despite the strong numbers, Walgreens’ new strategy is still waiting for Wall Street buy-in. The company’s stock recently is down 15.3% since Brewer took over, while shares of archrival CVS Health have climbed 36.2% and the S&P 500 has gained 9.4%. Brewer declined an interview request, but she told investors in October, “We have an overall plan that will deliver sustained growth and profit based on robust, prudent and perhaps, most importantly, integrated health care, pharmacy and retail strategies. We’ve been actively working on our new health care initiative and we are well on our way to delivering on our ambitions for this new business area.” The youngest of five children, Brewer grew up in Detroit, where her parents worked at General Motors. After graduating from Cass Technical High School, she earned a chemistry degree from Spelman College. The Walgreens move isn’t Brewer’s first shift between industries. Her career began at paper-products giant Kimberly-Clark, where she started out as a scientist before switching to business operations and working her way up to a global group president role. After 22 years, she joined Wal-Mart as a regional vice president, later rising to CEO of the company’s Sam’s Club warehouse stores. In 2017, she became chief operating officer at Starbucks, where she helped transform the coffee chain’s cold beverage program and figured out which stores should be sit-down and which should cater to grab and go. Analysts said last year that Brewer brought tech savvy to Walgreens, based on experience with Starbucks’ renowned loyalty program and her launch of scan-and-go payments at Sam’s Club, which drove consumer traffic and spending. Indeed, Walgreens reported last quarter that digital sales rose 88% in the U.S., driven by 3.6 million same-day pickup orders. Brewer came to Walgreens with a reputation for attentive leadership. She makes a point of putting her phone away when she visits stores to talk with workers. Brewer also has emphasized investing in workers, including Walgreens’ recent announcement that it would spend $120 million on labor this year. Although such investments seem obvious amid a tight labor market, analysts say they are vital for Walgreens to maintain momentum on its vaccine campaign and grow retail sales. While Brewer said in October that she sees “tremendous underlying momentum” at Walgreens, she acknowledged the challenges facing the company as it tries to transform itself into a health care provider: “To survive and thrive, we need to be able to show we are more and more relevant. And we must be able to deliver what our customers and our patients need, how and when they need it. We have already achieved a lot recently . . . but we have a lot more work to do.”

2/18/22 3:27 PM

Four-Star Stories presents:

Bronzeville

All three chapters are available now on your favorite streaming platforms.

Chapter 3

A New Black Experience

Chapter 1

Unapologetically African-American

Chapter 2

Displacing Fear For more from Crain’s Audio Studio and Four-Star Stories, visit ChicagoBusiness.com/podcasts

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22 FEBRUARY 21, 2022 • CRAIN’S CHICAGO BUSINESS

SLACK EXCERPT

Slack messages reveal business leaders’ fears over crime, violence in the Loop #chicagocbdsecurity

CRIME from Page 1 communications pipeline—the existence of which hasn’t been reported previously—provided information on planned protests, crowd movements, police tactics and other developments that wasn’t available to the general public. On Sept. 29, Samir Mayekar, deputy mayor for economic and neighborhood development, engaged in a running dialogue with members of the #security_ related_communication channel about a developing protest over the Blake shooting. “(Fifty) people and very calm so far,” he wrote of a group marching on Michigan Avenue. “Is it stationary or moving? If latter, which direction?” a participant asked. After posting pictures, Mayekar responded, “barely 100 people now not enough to march. Some counter protestors so we’re just trying to keep them away from each other. Very calm and sparsely attended.” Over the next few hours, he posted updates on which streets the groups were turning down and how much the crowd had thinned. The exchange was among more than 160 messages from Mayekar on the Slack channel in the span of more than a year, according to records obtained by Crain’s through a Freedom of Information Act request. Messages on the channel show city officials’ efforts to calm fears of further looting and a rise in violent crime in the city center. The messages also reveal business leaders’ level of alarm over that violence and how it affected their attitudes toward doing business in Chicago. In one case, the exchanges suggest the city’s handling of certain road closures may have played a role in United Airlines’ decision to move a major portion of its operations to the suburbs.

‘REAL-TIME COMMUNICATION’

The 1,300-member Slack channel isn’t city-run. The Business Owners & Managers Association of Chicago, or BOMA/Chicago, an organization for downtown office landlords, set up the channel with agreement from city officials, according to BOMA/Chicago Executive Director Farzin Parang. He says the channel is accessible only by invitation, but “we don’t screen. You don’t have to pass some sort of a test to get the invitation link.” The Slack group differs from other public safety channels— like “Notify Chicago,” a city-run text alert system largely centered on traffic and weather alerts, and Chibiz, which alerts businesses in targeted geographic areas about severe weather, fires, medical emergencies or public safety disturbances—which don’t allow direct communication with city officials. The #security_related_ communication channel also differs from weekly calls the city began holding after summer 2020 with small businesses, chambers

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Keeping business in the loop

aki_moore

Exchanges on a special Slack channel for downtown businesses show their concern over crime. SLACK EXCERPT

samir.mayekar 6:32 AM

1,300 members

No looting but all should stay vigilant given activity in MN last night. We will arrange another sec urity briefing this week.

September 17, 2020

mriordan

6:03 AM

e issue--United Airlines Hello all, we had the sam d from getting downemployees were blocke in our global operations town to their shift work very concerned about center. Senior leaders are illis is our hub for world this happening again--W need to access it 24/7 (or wide global ops and we s notice to move employee have enough advance to the backup facility)

operations.center

ck d will get an answer ba I am looking into this an asap!!! Ryan-IMD

Home

DMs

and community leaders across the city, which, unlike the Slack channel, are not operated 24/7. “It’s an opportunity to not only ask questions directly from folks at (the Office of Emergency Management & Communications) and the city, but (to also) hear from your peers, which is relatively unique,” Parang says. Such measures “are paramount to the return of retail sales and workers returning to the Loop,” in the wake of COVID-19’s decimation of downtown business activity and the unsettling violence, says John Melaniphy, president of Chicago-based real estate and retail consulting firm Melaniphy & Associates. “Letting building owners and managers know that there’s events that could impact their business and their buildings, I think, is a great step.” Between August 2020 and December 2021, Mayekar and city officials offered 18 briefings for the Slack group in anticipation of high-profile police trials, the 2020 election, the Jan. 6 attack on the U.S. Capitol, Mexican Independence Day celebrations and Lollapalooza. Nearly every week, officials also shared lists of planned protests or gatherings across the city. After the verdict in the trial of Louisville police officers in the death of Breonna Taylor, city officials batted down rumors that Chicago bridges were raised for security purposes rather than a boat run, assured members of the channel that National Guard troops were “at the ready” but not deployed and that police were tracking multiple protests. “The goal was to create a forum with key stakeholders where you

You

could have real-time communication” and respond quickly to misinformation, says Mayekar. “Given the experiences of 2020, it’s so important to make sure we’re communicating with stakeholders deeply.” Mayekar says large retailers have told him the city’s text alerts, Slack communications and security briefings “are the best communications they have of any city in the country. It helps inform expansion decisions.” But ACLU of Illinois spokesman Ed Yohnka is troubled by the tracking of people exercising their First Amendment right to protest, and with whom it’s shared. It’s “discordant that so much access and so much opportunity for interaction with police leadership is being given to downtown interests.” “What about Black and Brown communities all across Chicago affected by police? I bet they would love to have access to a law enforcement agency, instead of calling 911 repeatedly and waiting and waiting and waiting for someone to show up,” Yohnka says. Although members of the channel thanked Mayekar and city officials for updates, messages on the channel reflect growing concern about violence and the city’s response to it. For example, street fighting that broke out around the city’s annual Christmas tree lighting in December 2020 sparked a flurry of messages. “Several different areas with large groups of youths fighting. Are the reports of looting downtown accurate?” one user wrote. Another asked: “What is the city’s plan to disband this group as soon as possible? Will you raise

10:51 AM

The break-in at Nordstro m this morning and the looming outcomes of the Chauvin, Toledo and other incidents have res idents on edge about the return of brazen, lawles s behavior to our neigh borhood. I am glad tha t there was at least one arrest of a suspected ind ividual and additional measures taken to also protect Michigan Ave. We have been working hard on the recovery from the ravages of the pand emic and to overcoming the PTSD-like effect tha t still lingers from the tra umatic looting episodes of last May and August. Another security briefin g this week would be much appreciated. Than k you, Samir, for your support.

7:32 AM

Mentions

6:16 AM

Has there been any loo ting on Michigan Ave in response to the Brookl yn City incident?

#chicagocbdsecurity

stone.conroy

1,300 members

Home

DMs

Mentions

bridges to prevent them entering the central business district? Will the practice drills go into (effect) for this real time situation? The videos I’m seeing seem out of control.” “CPD well aware and tracking and bringing in extra resources,” Mayekar responded, “not a looting situation like this summer... things are calming down.” Precautionary measures by the city also could spark complaints. Rolling street closures downtown for Mexican Independence Day car caravans in September 2020 made it difficult for some workers to reach their offices. “Senior leaders are very concerned about this happening again,” Stone Conroy, United Airlines’ manager of geopolitical analysis and intelligence, wrote in the Slack channel after employees couldn’t get to the airline’s global operations center at Willis Tower. “Willis is our hub for worldwide global ops and we need to access it 24/7 (or have enough advance notice to move employees to the backup facility).”

ESCALATING CONCERNS

In December 2021, United announced plans to move the network operations center to Arlington Heights, slashing Willis headcount by 900. Asked whether the incident contributed to the decision to move, United spokesman Joshua Freed said the company still has a large network operations function in Willis and is “committed to Chicago. We’re enhancing our Willis Tower headquarters with millions of dollars in investments.” Complaints grew more frequent as the months went by. In spring 2021, a Slack channel

You

user named mriordan requested a security briefing following an early-morning break-in at the Nordstrom downtown, the looming trial of Derek Chauvin and response to 13-year-old Adam Toledo’s shooting by a Chicago police officer. Residents are “on edge about the return of brazen, lawless behavior to our neighborhood,” the message reads. Mayekar offered to brief the group that night. It was much the same story in the summer that followed, including complaints of outbursts of fighting three weekends in a row after fireworks shows at Navy Pier. Channel users also worried publicly about a rise in smashand-grab robberies in and around the Loop, as many retailers hired their own security guards and slashed hours ahead of the 2021 holiday season. Again, several of those users voiced concerns about groups of young people gathering near Millennium Park. “We can’t afford teens creating issue. Our businesses can’t afford for customers to feel downtown activities like seeing the park and the tree (lighting ceremony) are too dangerous,” one user said Dec. 4. Mayekar replied a couple of hours later that a few hundred teens had gathered, and “we have significant public safety presence on hand just to manage flow of people and ensure issue(s) don’t come up.” A user replied: ”The crowd is growing. Is there anything we should implement now?” No one from the city responded. That night, a CTA bus driver was injured by two people, a 12-yearold and 15-year-old were shot, and 21 “juveniles” were arrested.

2/18/22 3:27 PM

CRAIN’S CHICAGO BUSINESS • FEBRUARY 21, 2022 23

Look inside a modern Japanese house for sale in Park Ridge Built in 1973 with shoji screens, rock gardens, a Buddhist prayer room and other traditional details, the five-bedroom house is on the market for the first time, priced at $1.1 million BY DENNIS RODKIN

CHICAGO HOME PHOTOS

Japanese house with rock gardens, shoji screens and a tatami room with a Buddhist prayer nook is for sale for the first time since it was built in 1973 for a Japanese American couple. The Rose Avenue house in Park Ridge, five bedrooms and about 4,700 square feet, came on the market Feb. 2 priced at $1.1 million. Several potential buyers have already checked it out, said Craig Tinder, the @properties agent representing the house for a son of the original owners, who are both deceased. “It’s a work of art,” Tinder said. The main rooms surround a central rock garden, with glass walls and sliding doors. Some of the home’s walls are poured aggregate concrete, with a rough texture, and others smooth plaster or wood shoji screens. There’s a large, geometrical concrete fireplace rising to a peaked, wood-paneled ceiling, and a bridge over a rock garden that leads to two children’s bedrooms. The house’s foundation is painted black “to make it look like the house is floating,” Tinder

said, and the broad, black front doors are 5 inches thick “like in a shogun’s castle,” he said. As well as having traditional Japanese elements, the internal courtyard, sunken living room and other elements give the house “a vintage vibe,” Tinder said. Architect James Henneberg designed the home for Noboru and Ayako Yamakoshi, a process

HOW TO CONTACT CRAIN’S CHICAGO BUSINESS EDITORIAL . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 312-649-5200 CUSTOMER SERVICE. . . . . . . . . . . . . . . . . . 877-812-1590 ADVERTISING . . . . . . . . . . . . . . . . . . . . . . . . . 312-649-5492

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that included visiting buildings in Japan, including the Katsura Imperial Villa, Tinder said. Noboru “Noby” Yamakoshi was the head of Nobart, a printing and graphics firm he launched in the early 1950s and by the mid-1980s had built to a $22 million operation, the equivalent of $56 million today. He died in 1995. Ayako “Aya” Yamakoshi, an artist, died in 2016.

Both Californians, the Yamakoshis separately were forced in their teen years to live in internment camps during World War II, according to a Chicago Tribune profile of him and her obituary. “It was a shock,” Noboru Yamakoshi told the Tribune in 1986. “I thought I was a loyal American citizen like everyone else.” When he was released from the camp in 1944, California was considered a

“Japanese-free zone,” he said, so he moved to Chicago. Married in 1950, the couple in the early 1970s commissioned construction of this Japanese house. It includes both a Westernstyle dining room and a Japanesestyle tatami room, where diners can sit on the floor around a low table, with shoji screens and sliding panel walls around them and a small Buddhist prayer nook off one corner of the room. Along with the central courtyard are two smaller courtyards, designed in a traditional Japanese style with rocks arranged to suggest water, islands and boats. “From almost anywhere, you’re looking at a Japanese garden,” Tinder said. In some rooms, the views are of two different outdoor spaces. The house is set on a little under half an acre, about a block from high-scoring Maine South High School and a large swath of forest preserve that runs along the Des Plaines River. A buyer may need to update some utilities and climate systems.

Vol. 45, No. 8 – Crain’s Chicago Business (ISSN 0149-6956) is published weekly, except for the first week in July and the last week in December, at 150 N. Michigan Ave., Chicago, IL 60601-3806. $3.50 a copy, $169 a year. Outside the United States, add $50 a year for surface mail. Periodicals postage paid at Chicago, Ill. Postmaster: Send address changes to Crain’s Chicago Business, PO Box 433282, Palm Coast, FL 32143-9688. Four weeks’ notice required for change of address. © Entire contents copyright 2022 by Crain Communications Inc. All rights reserved.

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