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Lila Aryadwita, UIC chapter president of the Society of Women Engineers

Replacing a legend at the AbilityLab

City Hall’s design panel has its critics

A new advisory group seeks to uphold Chicago’s architectural reputation. Developers aren’t thrilled.

BY DANNY ECKER Real estate developers trying to navigate a pandemic, rising property taxes and stricter affordable housing requirements in Chicago are getting antsy about another possible obstacle: Their buildings might not be stylish enough to win over the city.

It’s a concern some are voicing

privately about the new Committee on Design within the city’s Department of Planning & Development, an advisory group formed in July of highly credentialed architects, urban planners and assorted members from the development community that will review certain projects each month and weigh in with aesthetic and other suggested changes.

JOHN R. BOEHM

Colleges with high minority enrollments see the George Floyd effect as companies seek to ramp up their diversity and inclusion efforts — PAGE 15

Trailblazing rehabilitation hospital grapples with change as it faces a future without Joanne Smith

BY STEPHANIE GOLDBERG

Planning Commissioner Maurice Cox The 24-person panel, which is common in other major cities but the first of its kind in See DESIGN on Page 27

Big questions loom for the nation’s top-ranked rehabilitation hospital following the death of its longtime leader this month.

Over the course of three decades, Dr. Joanne Smith transformed and defined Shirley Ryan AbilityLab, formerly the Rehabilitation Institute of Chicago, making

the specialty hospital a premier destination for patients recovering from strokes, traumatic brain injuries and other complex conditions. And during her 15 years as CEO, Smith pioneered a new clinical model that combines research and technology to tackle medical problems in real time.

See ABILITYLAB on Page 26

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CRAIN’S LISTS

ARTS

We take the pulse of the biggest hospitals and hospital systems. PAGE 12

Steppenwolf readies its comeback from a pandemic pause.

PAGE 4

9/17/21 4:08 PM

2 September 20, 2021 • CRAIN’S CHICAGO BUSINESS

COVID costing Chicago hotels $2.2 billion this year

BY GREG HINZ The still-raging COVID-19 pandemic will cost Chicago-area hotels a staggering $2.2 billion in lost revenue from business travel this year, a national trade group reports.

The American Hotel & Lodging Association projects hotels in the metropolitan area will end the year with just $346 million in revenue, an 86% cut from the $2.53 billion grossed in 2019.

Other major markets had it worse: San Francisco (down 93%), Boston (-89%), New York (-88%) and Washington, D.C. (-87%).

Chicago’s drop is worse than competing convention markets Orlando, Fla., which saw an 82% reduction, and Las Vegas, down 71%.

Statewide, Illinois hotels saw revenue fall $2.4 billion, or 80%, the largest on a percentage basis except for Massachusetts, New York, Wyoming and the District of Columbia.

Michael Jacobson, president and CEO of the Illinois Hotel & Lodging Association, said the figures strike him as sadly true, based on research his group has done.

“Things certainly have im-

proved from the worst,” he said, pointing a large metal-industry trade show, Fabtech, that is meeting at McCormick Place this week and is expected to attract about 31,000 attendees.

But a more substantial turnaround won’t even begin to surface until at least the end of the year, Jacobson said. That’s a particular problem for the industry here because, unlike warm-weather competitors such as Orlando and Dallas, Chicago hotels won’t be able to rely on tourists this winter and will suffer from the continuing decline in business travel.

BLOOMBERG

With business travel still suffering and a turnaround months away, Chicago’s lodging industry heads into winter at a disadvantage to warm-climate rivals

An industry group projects an 86% drop in Chicago-area hotel revenue this year compared with 2019.

“For some hotels, it’s going to be really difficult to survive without help,” Jacobson said.

His group is urging Mayor Lori Lightfoot to allot to hotels a portion of the $2 billion the city is receiving from the latest federal

COVID relief bill. “They’re listening,” but have made no commitment, he said. “Dialog is ongoing.”

Jacobson says he believes Chicago eventually will regain all of its lost business but not until 2024 at the earliest.

State must stop pandering to public-sector unions

T

here’s another element to the growing income gap in Illinois: Public-sector unions misrepresent the facts to lobby their political allies to levy higher taxes on private individuals and businesses to benefit themselves. In reality, collective bargaining in the government sector is part of the problem.

Public-sector unions’ absolute dominance over every facet of Illinois government has led to a pension crisis that has set the state back hundreds of billions of dollars. This alliance has hollowed out state government’s ability to deliver basic services as state leaders placate powerful public-sector union leaders who then bankroll many politicians’ war chests.

While unions are right to argue bargaining power has shifted in favor of employers, they ignore the rest of the story. By raising

the private sector, the threat of unionization alone is sufficient to induce nonunion companies to pay higher wages. This is because raising wages to avoid lengthy, costly collective-bargaining disputes tends to benefit everyone.

Businesses could end up more profitable because well-paid, happier workers are more productive while also less likely to see a need to unionize in the first place.

The same isn’t true for public-­ sector unions.

Public-sector unions represent virtually all public-sector employees. And these unions are in the business of raising salaries and benefits and protecting job security regardless of employee performance.

Average compensation for government employees in Illinois exceeds that of private-sector workers by 38.2%, according to data from the Bureau of Economic Analysis. This is even college attainment THIS ALLIANCE HAS HOLLOWED OUT though among private-sector STATE GOVERNMENT’S ABILITY TO workers exceeds that of public-sector workers in DELIVER BASIC SERVICES. Illinois.

A deeper dive reveals the gap is larger for similar workers in labor costs, stronger unions some occupations. Public-sector incentivize business to seek subworkers in service occupations stitutes. Research shows union such as health care, food service density affects business location and maintenance with college and labor demand. degrees earned 60% more than When businesses face higher similar private-sector countercosts, they employ fewer workparts. Those without a college ers—especially workers at the degree earned 50% more than lower end of the skill distributheir peers. tion—while requiring the workWhen public-sector unions ers they do employ to be more increase their demands, govproductive. ernments face tighter budgets, It is important to point out that causing them to borrow more, to private-sector unions aren’t the raise taxes or to cut funding for problem. In 2020, only about 10% other programs. of Illinois’ private-sector workIn Illinois, public employee ers were members of a union. In

GREG HINZ

retirement costs capture nearly 27% of the state’s general funds budget. In the latest state budget, pension costs amounted to $10 billion. This is more than the state spends on K-12 education or human services. In fact, spending on higher education, children and family services, human services and public health fell since 2010.

That is despite two record income tax hikes during that same period.

While public-sector unions benefit from unfair contracts, Illinois’ economy grows less and most Illinoisans—especially the poorest—suffer.

It gets worse.

In the case of teachers unions,

ORPHE DIVOUNGUY ON THE ECONOMY

research shows exposure to unionized teachers lowers students’ future earnings. The effect is larger for Black and Hispanic students. Collective bargaining for public school teachers directly exacerbates income inequality and racial disparities.

Illinoisans who are concerned about inequality and want to see their home state thrive must

BE

resist power plays that give more authority to government unions, such as Senate Joint Resolution Constitutional Amendment 11.

The future of our home state depends on the government’s commitment to stop pandering to public-sector unions.

Orphe Divounguy is chief economist at the Illinois Policy Institute.

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CRAIN’S CHICAGO BUSINESS • September 20, 2021 3

City’s tech scene lures a Bay Area law giant Cooley is on the hunt for Midwest clients— and legal talent, too

BY ELYSSA CHERNEY

See COOLEY on Page 22

Modern Hill Furniture Chief Revenue Officer Mike Solan, left, and CEO Barry Louks

JOHN R. BOEHM

Cooley’s expansion in Chicago is heating up.

The Silicon Valley-based law firm, best known for its dominance in tech and life sciences, is adding to its new Chicago office at a rapid clip, growing from a group of 10 founding attorneys to about 40 since late May. Many of the office’s 14 partners were poached from elite rivals like Latham & Watkins, Winston & Strawn and, most recently, DLA Piper. And just four months in, Cooley solidified its footprint by committing to a full-floor lease at the Bank of America Tower.

Cooley’s decision to lay down roots in Chicago is a vote of confidence in the city’s startup scene, which is garnering record investment from venture-capital funders this year and churning out “unicorns,” or private companies with a valuation over $1 billion. Through the first six months of this year, Chicago companies garnered $3.8 billion in venture-capital funding—surpassing all of the money raised in 2020, which was the highest amount since 2014.

But a new market also brings new challenges. Despite its reputation as a leading tech law firm, it’s unclear if Cooley can lure the type of top tier talent it needs from other big Chicago firms, where equity partners are earning more income. And though Chicago’s prominence as a startup hub is on the rise, some aren’t sure if it will produce enough business for a transactional giant like Cooley

WHY ANTIQUES ARE HAVING A MOMENT Old furniture has an advantage over new: It’s in stock FURNITURE SHOPPERS are rediscovering antiques as sluggish supply chains delay delivery of new sofas, chairs and tables.

Unlike retailers who must wait months for stock, auction houses and vintage dealers in the Chicago area can deliver goods on the spot. As a result, their sales are soaring.

“Things are moving very, very quickly,” says Duane Scott Cerny, co-owner of Broadway ­Antique

Market in the Edgewater Glen neighborhood, where revenue is up 20% this year.

Tight supplies of new furniture have extended an upward sales trend in antiques that began last year, as nesting consumers spent money on furniture instead of travel. Industry operators wondered if the revenue bump would fade, but 2021

“IF THE CONSUMER CAN’T GET WHAT THEY WANT RIGHT NOW, THEN THEY’RE GOING TO LOOK FOR ALTERNATIVES.”

See ANTIQUES on Page 27

Mark Schumacher, Home Furnishings Association

BY ALLY MAROTTI

Chicago’s about to claw back to a home-price record It’s taken us 15 years to get back to the levels we saw in 2006, lagging other metros’ growth in the post-housing bust period. Is that bad? It depends.

Chicago condo owner Ned English

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JOHN R. BOEHM

BY DENNIS RODKIN When Ned English bought a $297,000 condo on Humboldt Boulevard in 2006, the neighborhood was slightly scruffy but within a mile of the hip core of Logan Square.

“There were tough guys on the corner, and when I had guests I had to drive them to the el at night,” English recalls.

Like most people, English

didn’t know then that a massive housing crash lay just ahead. Chicago-area home prices peaked in September 2006, the month he bought his three-bedroom condo, according to a yardstick now known as the S&P CoreLogic Case-Shiller Indices. Prices slid ever-downward through March 2012, with a few small and shortlived upticks along the way.

The condo “pretty quickly was worth way less than I paid,” En-

glish recalls now. He estimates it was worth about $200,000 at the bottom of the housing market.

Over the years, English’s neighborhood improved dramatically, with the hot zones around Logan Square to his north and Bucktown to his east expanding in the 2010s and the 606 opening in 2015. An entrance to the popular See HOME PRICES on Page 26

9/17/21 4:00 PM

4 September 20, 2021 • CRAIN’S CHICAGO BUSINESS

JOE CAHILL ON BUSINESS

Aviation maintenance school lifts hopes

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Steppenwolf Theatre’s new co-artistic directors Audrey Francis and Glenn Davis in the 400-seat Round Theater, which opens this fall.

With new stage and new leaders, Steppenwolf prepares to return

FRANK ISHMAN

A

“Because of the specialized training our maintenance teams require, it’s imperative that we have access to state-of-the-art facilities and programs like this one to help ensure we are pulling from a pipeline of quality talent,” United Senior Vice President of Technical Operations Tom Doxey said in a news release announcing the McKinley Park school.

The new center reflects an effort to tap talent sources the industry hasn’t always reached.

It’s a broad-based collaboration among AIM, industry players such as United, AAR, City Colleges of Chicago and Southern Illinois University’s aviation program.

“This one-of-a-kind pipeline, from high school to a bachelor’s degree, will help our underrepresented populations find careers in aviation,” said AAR CEO John Holmes.

The state of Illinois provided incentive in the form of $1.5 million in tax credits for AIM, which plans to spend $10 million on the training center and hire 75 full-time workers by 2022.

“I’m committed to building on Illinois’ transportation leadership by working to THERE’S PLENTY OF DEMAND educate and empower new FOR THE SKILLS TO BE LEARNED. talent and bring historically underrepresented populations into the field,” Gov. need for high-skill jobs that J.B. Pritzker said. support a middle-class lifestyle.

Political and industry leaders Aviation jobs pay about $70,000 a deserve credit for bringing this year on average, according to the training to communities often Bureau of Labor Statistics. excluded from opportunities. But And there’s plenty of demand access to training isn’t the only for the skills AIM graduates will thing aspiring aircraft technicians learn. Chicago is a hotbed of avianeed. tion jobs, with two major airports, Affordability is another obseveral airlines and aircraft serstacle for many young people vice operations. They need skilled looking to acquire marketable technicians to keep planes aloft. skills. Students from low-income On top of current openings, the families often drop out of college industry will have to fill 600,000 because they can’t afford tuition. technical jobs over the next 20 AIM’s 21-month training years as baby-boomer retirecourse, which is certified by the ments deplete the workforce.

Federal Aviation Administration, Short-term demand also looks costs $50,000. That’s less than the likely to pick up as commercost of a four-year college degree, cial aviation emerges from the but still steep for students of modCOVID-19 slump. Plane-maker Boeing recently predicted air trav- est means.

But it’s affordable to an aviation el would rebound to prepandemindustry looking to cultivate wellic levels late next year or early in trained workers for decades to 2023, and continue growing from come. AIM says employees of its there. industry partners get discounted Chicago-based United Airlines tuition. AIM trainees also can expects to add 25,000 workers apply for federal student aid. over the next five years, 3,000 of That’s a good start, but if aviathem locally. Wood Dale-based tion companies want the program aircraft services company AAR to churn out as many qualified plans to hire nearly 500 mechantechnicians as possible, they ics in the U.S. over the next 18 should make sure every student months, including more than 100 has the funds to finish school. It at a facility in Rockford. would be even better if financial Aviation companies appear aid takes the form of grants, rathto realize they need a bigger er than loans. That way, newly talent pipeline to fully staff their certified aircraft technicians can operations now and in the future. take off in their careers without That means expanding training the heavy drag of student debt. opportunities.

mong the more encouraging pieces of news this week was the unveiling of an aviation maintenance school on the Southwest Side of Chicago.

Aviation Institute of Maintenance said classes will begin Sept.

27 at a converted warehouse in McKinley Park. An initial class of about 40 students will learn how to maintain and repair sophisticated aviation technology such as jet engines, hydraulics and cockpit instrumentation. AIM expects to enroll 200 by next year.

It’s great to see this kind of training available in a location accessible to young people who need more pathways to economic opportunity. AIM’s other local school is in Romeoville, 35 miles away from the city. In a news release, AIM said recruiting efforts for the McKinley Park campus “will focus on the local demographic and underserved populations within a 50-mile radius of the campus.”

Students from poor neighborhoods on Chicago’s South and West sides can get to McKinley Park by public transit, making it easier to get the training they

As the theater readies its comeback from a pandemic pause, Steppenwolf’s new artistic directors talk about what COVID afforded the ensemble and what’s in store

BY TED COX Steppenwolf Theatre is returning to live performances in November.

But while the North Side theater company picks up where it left off—with “Bug,” Tracy Letts’ psychosomatic (or is it?) fever dream of lovers’ viral paranoia, whose run was suspended when COVID-19 hit in March 2020—it’s also moving forward under new leadership: Audrey Francis and Glenn Davis are the first pair of co-artistic directors in the company’s 46-year history.

They’re charged with getting Steppenwolf back up to speed, as “Bug” launches the 2021-22 season. They’re also opening a 50,000-square-foot building that includes an in-the-round theater and education center. And they’ll have to keep the company on track to pay the $54 million price tag.

“This might be my idealism,” Francis said in a joint call with Davis at the end of August, as they were about to take the reins at Steppenwolf, succeeding Anna Shapiro. “But I don’t feel the pressure yet, because in a very strange way I think our timing is oddly lucky.

Maybe we haven’t craved human interaction (before) as much as we do now. And for the first time, we have more than enough space for that. . . .With the staff and the community and the ensemble, I think we’re all yearning to be in the same space together and to be creating new work and to be finding new ways to bring more work in. So at this moment, I don’t feel fear. I feel hope and excitement.”

“Pressure? What’s pressure?

Never heard of it,” Davis said. “We don’t feel pressure because it’s not just me and Audrey. It’s the entire ensemble that’s dug in at this moment to secure the future of our company.”

Francis and Davis joined the ensemble in 2017 under Shapiro.

This says something about the immediate impression they made:

When the artistic director post was thrown open to the company this year, they tied for the most nominations.

“Anna was really clear with the ensemble in the fall of last year in saying, ‘Hey, my contract is coming up, and I think we all need to start thinking about a succession plan,’ “ Francis recalled.

‘A CHANCE TO RECONNECT’

At the same time, the company was dealing with the pandemic.

While that separated them from their audience, it also gave Steppenwolf “a chance to reconnect with the ensemble in ways that we haven’t in years prior,” Davis said.

“You’d never get everyone (together), or rarely would you get everyone” in the same place at the same time—a persistent problem with a group of actors as famous and famously busy as Steppenwolf’s.

“With Zoom, it’s given us a chance to reconnect and to talk. . . .The silver lining of COVID is that we’ve had to really be in conversation about what the future of the company is.”

And the future pointed to co-leadership. Steppenwolf has “a 49-member ensemble of really amazing artists who all have very strong artistic visions,” Francis said.

“So yeah, I think it makes sense for us to have an ensemble-style leadership.”

In ramping back up, Francis and Davis have extra runway, as the pandemic pushed back Steppenwolf’s schedule. Not only is this season set; next year is, as well.

After “Bug,” the 2021-22 season moves early next year to the highly anticipated “King James,” which should appeal to sports fans among theatergoers. Davis, who’s cast in the production, said the Rajiv Joseph play examines “the relationship between two men through the aperture of their relationship to LeBron James,” the NBA star who left the Cleveland Cavaliers for the Miami Heat in 2010.

“He talks about that play in relation to what men specifically are able to talk about,” Davis said. “He says, you can get men together in a barber shop and talk about basketball or talk about who’s better, LeBron James or Michael Jordan or Kobe Bryant, and they will come to fisticuffs, right? But if you ask those same men to talk about their relationships, or you see them in their relationships with their partners, sometimes they’re immovable or they can’t seem to go deeply into their own personal feelings.

He says there’s something about sports that brings out our deepest feelings. That is really fertile ground for self-examination.”

For the first time in Steppenwolf history, each play in the season was written by an ensemble member. That includes Tarell Alvin McCraney’s “Choir Boy,” and “Seagull,” a new adaptation of the Chekhov classic written and directed by Yasen Peyankov that will debut in the new building’s 400seat Theater-in-the-Round. Before that, the Steppenwolf for Young Adults series occupies the new space in February for “1919,” an adaptation of Eve Ewing’s poetry collection about the Chicago race riots. Steppenwolf will also continue video streaming other online performances.

Steppenwolf is observing protocols requiring patrons to show vaccine proof or a negative COVID test. Masks are mandatory for the audience. Those onstage will go maskless.

Going forward, Francis and Davis agreed on one thing above all: They want more ensemble members onstage.

“At its core, the ensemble is committed to making sure that Steppenwolf is a place where artists can come repeatedly over the course of their life to take risks, to try new things, to launch new work,” said Executive Director E. Brooke Flanagan. “That yields more visceral, raw, authentic work onstage.”

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6 September 20, 2021 • CRAIN’S CHICAGO BUSINESS

THE TAKEAWAY

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Information: Contact Nancy Marquez at nmarquez@midtown-metro.org or 312/738-8300, ext. 23 Founded in 1965, Midtown Educational Foundation guides low-income urban youth in Chicago along pathways of success.

What’s the best part of being an entrepreneur?

Controlling your own destiny.

I think most people would say that they take their lives into their own hands when they become an entrepreneur. When I was graduating business school in 2005, entrepreneurs were kind of the losers that couldn’t get jobs. It wasn’t until the success of Facebook with Mark Zuckerberg and Jeff Bezos with Amazon, and, of course, Elon Musk, that they sort of turned entrepreneurs into these rock stars.

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How do you like your coffee?

I switched to matcha green tea because as an entrepreneur, I’m too high anxiety and coffee wasn’t helping.

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Speaking of restaurants, let’s talk about Edie’s. How is it different from other cafes?

We explored Australian cafe culture, so it’s this all-day cafe that has healthy options but also a great coffee program. Then at night, it turns into something where you can get a casual yet delicious cocktail.

<

Where do you like to shop?

Oh, gosh. I’m so boring.

I’ve worn the same things for 20 years, and I usually just wear branded swag of whatever my company is. Now, it’s our Shopflix (apparel) with Lululemon.

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What’s the last thing you splurged on?

We just had our three-year wedding anniversary, so I took my wife to the Ritz in Chicago and did a little stay­ cation. We ordered room service from gobs of Chicago restaurants.

>

What could I buy on Shopflix?

We never thought we’d have so many pet care brands on our platform, but pet care is something where you have pet parents who are very involved with the lives of their animals in a way that they would be with their children.

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What’s Shopflix? Who’s watching?

We’re trying to bring this retail experience of browsing, learning and discovering online, and in a way that hasn’t existed before. Our target is women 32 and older. We call them “technologically engaged.”

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Install or retrofit fire sprinklers today!

Serial entrepreneur Matros, 42, founder of Limitless Coffee and Protein Bar, has a new venture: Shopflix. The company, backed with nearly $2 million from local investors, is a 24/7 video streaming network for brands to showcase and demo products for shoppers. It so far has 70 paying customers. Videos can be accessed on a web browser, mobile app and social media. Matros also opened Edie’s last year, an all-day cafe with more locations planned. He lives in River North with his wife, 9-monthold son and Wheaten terrier. By Katherine Davis

>

Deduct the Full Cost of Fire Sprinkler Systems in Qualified Property

Matt Matros

We’re chatting the Tuesday after Labor Day. Summer is officially over. How’d you end it?

Last weekend I did a 20-mile hike in Glacier National Park with my best friend. We try to challenge ourselves to something every year—usually it’s triathlons— but as we’ve aged, we’ve had to choose things that fit into our lives a little bit easier.

9/17/21 2:26 PM

CRAIN’S CHICAGO BUSINESS • September 20, 2021 7

Chase makes a power move with Illinois wind farm

BY STEVE DANIELS JPMorgan Chase has a deal with the developer of a 22-turbine wind farm in Lee County, Ill., to purchase 70% of the project’s output once it’s completed.

The contract is Chase’s first such deal since announcing its plan in 2017 to source 100% of the power it consumes around the world from renewable resources.

The deal enabled the developer, a unit of Algonquin Power & Utilities, based in a Toronto suburb, to obtain financing. Construction began in May. The 108-megawatt facility, located about 90 miles west of Chicago, will have the capacity to power more than 32,000 homes.

For Chase, it’s a first step in a plan to finance new renewable projects around the world. Its portion of the wind farm is sufficient to meet 14% of its global electricity demand. Future deals are likely to occur in other markets where Chase has a significant presence.

The New York-based bank is the largest commercial and re-

tail bank in the Chicago area and also has a major presence in Columbus, Ohio. Both Chicago and Columbus are within the PJM regional power grid, the network that the Lee County wind farm will feed.

ENERGY BILL

News of the deal corresponds roughly with enactment of the sprawling energy bill, signed into law Sept. 15 by Gov. J.B. Pritzker.

That measure will generate hundreds of millions annually from ratepayers throughout the state to finance new wind and solar projects in order to meet the law’s phaseout of fossil fuel power plants no later than 2045.

In recent years, most of the new wind projects in Illinois have been the result of deals like this one with Chase. Corporate heavyweights like Google, Ikea and Amazon often have been the buyers of the output, enabling developers to continue to build even as state subsidies to bolster new development waned. In Illinois, at least, big banks haven’t yet gotten involved until now.

Allstate expects $1.4B hit from Hurricane Ida

Beginning next year, the state will be back in the business— and in a big way.

That’s fine by Chase, which could meet its 100% renewable goal by purchasing far cheaper credits from existing wind farms but is willing to pay more to expand the industry. “We want to put as much new (green) energy on the grid as possible,” says Brian DiMarino, Chase’s head of operational sustainability.

Asked if the moves by states like Illinois to ramp up subsidization of the renewable industry again will make such future deals more competitive for Chase and other corporations, he says, “We’re happy to have that problem.”

“The best-case scenario is the grid is so green that we don’t have to be doing these deals anymore,” he adds.

The contract by law must last for at least 10 years, but DiMarino declined to disclose its term.

It is creating 100 construction jobs and will generate up to $1.2 million in annual property taxes for Lee County.

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ously written about our expectation for Hurricane Ida losses using market share data—the $1.4 billion gross loss is at the low end of our range of estimates.”

Bloomington-based State Farm is the largest home insurer in Louisiana and is sure to bear significantly more of the cost of the hurricane than Allstate.

This year is proving to be an active one for hurricanes; recent years have been more benign. A scan back at Allstate’s annual SEC filings appears to show Ida the most costly storm for the insurer since Sandy in 2012.

An Allstate spokeswoman didn’t respond to a request for confirmation.

Allstate’s gross losses in Sandy were $1.3 billion. That is more than $1.5 billion in 2021 dollars, making Sandy slightly more costly than Ida. Initial loss estimates often rise after all the claims are tallied, so Ida could yet surpass Sandy.

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It’s the Northbrook-based insurer’s costliest catastrophe since Superstorm Sandy slammed the East Coast in 2012 Allstate estimates a $1.4 billion gross loss from Hurricane Ida’s path of destruction last month through 19 states, its single biggest catastrophe hit since Superstorm Sandy hammered the East Coast in 2012.

The Northbrook-based insurer said Sept. 16 that it will absorb only part of that thanks to arrangements it has with reinsurers, which will bear hundreds of millions of the cost. Overall, for the month of August, Allstate estimated net catastrophe losses at $876 million, or $692 million after tax.

Allstate’s disclosure comes as estimates of total insured losses from the hurricane, which made landfall in Louisiana and snaked northeast with torrential rains that caused widespread flooding in New York City and up and down the coast, are rising. RMS, a wellknown catastrophe risk modeling firm, on Sept. 16 raised its estimate of insured losses from Ida to between $31 billion and $44 billion from $25 billion to $35 billion earlier.

“The company’s reinsurance program was a strong benefit for August catastrophe losses, but even the gross loss was not horrible,” Paul Newsome, analyst in Chicago with Piper Sandler, wrote in a note Sept. 16. “We had previ-

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The contract with the 22-turbine project in Lee County is JPMorgan Chase’s first major move to meet its goal of sourcing 100% renewable energy

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9/17/21 2:14 PM

8 September 20, 2021 • CRAIN’S CHICAGO BUSINESS

Can your company live long and prosper? forever, but as the German proverb says, “Trees don’t grow to the sky.” There’s a natural limit to the growth of your business. At some point your business model, product or service will become obsolete, and the S-curve begins the descent.

COMMIT TO INNOVATION

Once profits start that dip, it’s usually too late. This is why you are wise to commit to innovation and entrepreneurship early on.

You need to start building a new S-curve before the old one goes away.

That’s certainly risky, but I teach a process that will help you assess new ventures. I call it POP!—How good are the people? How good is the opportunity? How good is the proof?

People involved in a new venture should be scrappy, knowledgeable about the product or service, and have a high degree of integrity and a solid professional network.

Opportunity is the heart of the

Gregory Bunch is an adjunct professor of entrepreneurship at the University of Chicago’s Booth School of Business.

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

framework. Here the focus is on identifying the customers and why they make purchases. We think

GETTY IMAGES

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pple went from selling desktop computers to iPods to iPhones. Ama­ zon started with books, morphed into the “everything store” and makes a tremendous amount of money with Amazon Web Services, a totally different type of business.

Alphabet, Google’s parent, has another division focused on new businesses to supplement and replace ad revenue: Other Bets.

These are examples of companies that built new S-curves on purpose. And you can and should follow those examples, even if you’re not the same size as they are.

The S-curve describes the life stages of every business and product. When we start businesses, we experience a downward turn of the curve where we’re searching for product-market fit. We’re investing money and time without certainty of a good return. Once you land on a winning business model, you begin to move up and to the right.

That’s the beautiful part.

We like to think it will go on

A fo

about the strategy models that will help us create and capture value. We ask how big this can be at scale. And we pay close attention to the risks involved.

Proof involves having great data and rigorous analysis that predicts success.

The easiest way to build a new S-curve is to “scratch your own itch.” Develop a product or service that you would use yourself. The second way is to pay close atten-

tion to your customer’s job to be done. What’s motivating them? Is your new offering easy for them to buy and use? Have you crafted an effective buying prompt?

There are simple and systemic ways to approach the innovation your company needs to succeed.

Follow this and you’ll make better bets. You’ll stand a good chance of building a new S-curve that will help your business to continue flourishing.

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CRAIN’S CHICAGO BUSINESS • September 20, 2021 9 SPONSORED CONTENT

talking Two Wacker Drive office buildings MANUFACTURING . . . go up for sale at a tricky time BECOMING THE PRODUCTIVITY POWERHOUSE

They hit the market in a tough period for downtown office landlords, but especially those that have big blocks of space amid record-high vacancy

Illinois manufacturers have proven time and again that we will rise to any challenge. With the pandemic, manufacturers recovered from the initial shocks quickly, focused action to rebound steadily, and continue to adapt to changing conditions. However, there is a significant challenge lurking underneath our successful navigation of the pandemic.

BY DANNY ECKER

DAVID BOULAY

COSTAR GROUP

A pair of Wacker Drive office landlords whose properties have plenty of available space have put them up for sale, hoping to find buyers that want to bet on a comeback for the pandemic-rattled downtown office market.

In one of two new listings on the high-profile West Loop corporate corridor, Chicago-based Zeller Realty Group and Chinese investor Cindat Capital Management have hired brokerage Hodges Ward Elliott to sell their 65-story office building at 311 S. Wacker Drive, a tower the owners expect to fetch bids of nearly $360 million, according to a source familiar with the offering. In the other, a venture led by Toronto-based Sun Life Financial and advised by real estate investor ­ BentallGreenOak has put the 10-story office building at 29 N. Wacker Drive on the market. An asking price for the 133,580-square-foot building is not listed in marketing materials from the Chicago office of Jones Lang LaSalle, but a source close to the owners said they anticipate it will trade for close to $36 million.

Both buildings are hitting the market at a tough time for all downtown office landlords, but especially those that have big blocks of vacancy. As many companies rethink their office needs after adjusting to life with remote workers over the past 18 months, office building owners have been shelling out more cash and other incentives to land tenants. The Wacker Drive listings will test investor appetite for properties in need of leasing wins while the COVID-19 crisis continues to rankle landlords and pushes the vacancy rate in the central business district to an all-time high.

Companies collectively va-

311 S. Wacker Drive which first reported that the property was on the market. An upgraded fitness center and new tenant lounge and conference center were among the projects it completed, and the owners lured several new small tenants to the building during their first year of ownership.

Zeller and Cindat refinanced the building in 2018 with a $215 million loan from Morgan Stanley, property records show.

GROWING INTEREST

The tower could benefit from growing corporate interest in office space near the southwest corner of the Loop, where the redeveloped Old Post Office, renovated Willis Tower and new BMO Tower that is under construction next to Union Station were gaining lots of traction with tenants pre-COVID. But the building’s tenant roster was dealt COMPANIES COLLECTIVELY VACATED two big blows just beMORE DOWNTOWN OFFICES DURING fore the pandemic began when professional services firm Duff & THE SECOND QUARTER THAN THEY Phelps (since rebrandDID DURING ANY YEAR ON RECORD. ed as Kroll) and law firm Faegre Drinker cated more downtown offices Biddle & Reath inked deals to during the second quarter than leave more than 120,000 square they did during any year on re- feet combined in the building for cord, according to data from new offices in the Fulton Market brokerage CBRE. But in a more District and next to Union Stapositive sign for building owners, tion, respectively. The 31-yearthe downtown apartment market old tower was 86% leased just bein recent months has posted a fore the pandemic, though Real strong comeback from the early Estate Alert reported that number days of the pandemic, typically a is now below 80%. leading indicator that office leasA Zeller spokesperson couldn’t ing will follow. be reached. The Wacker Drive Zeller and Cindat paid about tower is the firm’s sole downtown $302 million in 2014 for the 1.3 office asset, according to data million-square-foot tower at 311 from research firm Real Capital S. Wacker and spent an addi- Analytics. Zeller sold off the office tional $78 million renovating it, tower at 401 N. Michigan Ave. in according to a report by indus- 2017 and the Wrigley Building in try newsletter Real Estate Alert, 2018.

P009_CCB_20210920.indd 9

Up the street at 29 N. Wacker, Sun Life and BentallGreenOak are looking for a more profitable outcome than the deal they recently completed at 100 N. LaSalle St., which sold for a fraction of what they paid five years ago.

A sale anywhere close to $270 per square foot for the Wacker Drive building would likely generate a major windfall for the owners and defy the soft downtown office market. Sun Life— which later acquired real estate firm Bentall Kennedy and formed BentallGreenOak—paid just $13.4 million for the building in April 2010, according to Cook County property records. That deal was made amid the Great Recession, before a barrage of suburban companies began moving their offices downtown and shortly after vacancy in the building shot up to almost 37%.

There is just as much empty space in the building today, according to the JLL marketing flyer, but many of the rental rates have risen over the past decade and the owners are hoping buyers will look past the current market malaise and be willing to pay for the opportunity to lease up one of the few boutique office properties on Wacker Drive.

A spokesperson for the building’s owners did not provide a comment.

JLL is playing up the building’s relatively small, 14,000-squarefoot floor plates as a potential leasing advantage at a time when many companies are shrinking their office footprints. The 60-year-old building has just under four years of weighted average lease term—a measure of tenants’ remaining lease commitments to the property—and a tenant list that includes small law firms, consulting firms and communications companies.

President IMEC dboulay@imec.org

U.S. manufacturing productivity has remained flat, even declined, over the past decade. This means we are producing the same amount of goods but more people are needed to produce it. Growing productivity makes us more competitive, improves resource efficiency, and creates higher wages. Conversely, stagnant performance slowly deteriorates our ability to compete globally. To quote Paul Krugman, “Productivity isn’t everything, but in the longrun it is almost everything. A country’s ability to improve its standard of living over time depends almost entirely on its ability to raise its output per worker” (The Age of Diminished Expectations).

DAVID BOULAY is president of IMEC, a public-private partnership committed to driving growth through enterprise excellence. He holds a bachelor’s degree in operations management, an MBA and a doctorate in workforce development.

This performance challenge comes at a time when new supply chains, such as electric vehicles, will reshape the trajectory of what and how we serve societal needs. A few years ago, I would not have believed we would co-host a supplier matchmaking event with NASA and their prime suppliers, like Boeing and Blue Origin, to help build the supply chains for Mars missions. What felt like science fiction is reshaping today’s manufacturing. Solving the productivity challenge is an incredible opportunity to embrace the changing manufacturing landscape and seize a robust global competitive position.

At its’ core, productivity is about skills and automation. Each company bringing together their unique combination of talent and technology in ways that should do more with the same. While we face an unrelenting workforce skills and body gap, there needs to be little debate whether technology will replace jobs. For our path to competitiveness, the solution is both skills AND automation. As one example, a collaborative robot performs the repetitive, mundane low-skill tasks while workers upskill to operate the advanced technologies.

“Illinois manufacturers will prove again how we rise to the challenge and preserve our globally competitive position for our companies and communities.”

Illinois manufacturers have the can-do mindset to overcome this challenge too. We must create the urgency ourselves. Otherwise, we may be too late to fix the slow drip that erodes our competitiveness. It takes fully embracing new technologies and owning how we upskill our workforce.

We can propel from lagging productivity to a productivity powerhouse.

We can shift from a skills gap to a workforce surplus. It is hard work.

Yet, Illinois manufacturers will prove again how we rise to the challenge and preserve our globally competitive position for our companies and communities.

About IMEC IMEC is a team of improvement specialists and technicians dedicated to providing organizations in Illinois with the tools and techniques to create sustainable competitive futures. The experienced hands-on team at IMEC works closely with its clients to plan critical business improvements in the areas of Leadership, Strategy, Customer Engagement, Operations, and Workforce. IMEC, Illinois affiliate of the U.S Commerce NIST Manufacturing Extension Partnership (MEP) National Network, has demonstrated a return on investment that exceeds 19:1. This is made possible as organizations become more effective and efficient and together with IMEC excel toward enterprise excellence. For more information, visit imec.org.

9/17/21 2:09 PM

10 September 20, 2021 • CRAIN’S CHICAGO BUSINESS

EDITORIAL

All of Chicago should be rooting for this man Pedro Martinez

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e ask a lot of our public schools.

Not only are they places where we send children to learn what they need to know to lead healthy, productive and fulfilling lives. They’re also a hub of community, a gathering place that forms the backbone of strong neighborhoods.

They keep children safe—or at least relatively safe—while their parents go to work.

Coaches and club leaders teach life lessons in resilience and teamwork. Nowadays, particularly in massive, urban school districts like Chicago, schools are also the place where many children have reliable access to their only nutritious meal of the day. School social workers respond to the needs of students’ families when circumstances like unemployment, illness or crime interfere with a child’s learning. School counselors tend to kids’ emotional needs, while career advisers help them to shape their long-term goals.

When schools function well, they are also economic drivers, attracting families in search of the best possible education and opportunity for their children. When schools function poorly, they have the opposite effect, driving families away and reinforcing the racial, social and economic inequities that bedevil our city.

So a ton is at stake as the Chicago Public Schools greets the arrival of a new CEO, the district’s seventh in the last decade.

That span has been volatile to the say the least, marked by two teachers strikes, the conviction of a former CEO in a kickback scheme, the outbreak of a global pandemic, ongoing budget challenges, a downturn in enrollment and the passage of new elected school board legislation that will significantly shrink the mayor’s say-so

over decision-making within the district.

Mayor Lori Lightfoot’s pick for the district’s top job, Pedro Martinez, presided over the San Antonio school district as superintendent and helped lift the Texas system from an F on that state’s accountability rankings to a C in three years, and to a B in the most recent results. Under Martinez’s leadership, San Antonio in 2018 was named one of the state’s fastest-improving school districts, with graduation and college attainment rates rising. Martinez also showed some serious backbone, defying Texas Gov. Greg Abbott’s executive order banning public entities from requiring masks or COVID shots. It was a bold move, which he defended in a letter to parents as an effort “to enforce stability

in our classrooms, minimize disruption to your child’s academics, and lessen hardship on families whose children are affected by quarantines for up to 14 days, or worse, illness,” according to Chalkbeat Chicago.

Martinez will need that sort of backbone here at CPS, where the Chicago Teachers Union has successfully wrested all but official control of the district from the mayor’s hands. Union leadership’s public response to the Martinez announcement read more like a warning than a welcome: “Mr. Martinez returns to a different Chicago than the city he left in 2009, as we move toward an elected school board and embrace the return of full bargaining rights for teachers, paraprofessionals, counselors, clinicians,

case managers and librarians,” the statement observed, noting correctly that Martinez has no classroom experience. “Many of the failed strategies that our new CEO is accustomed to no longer exist in Chicago, as the experiments of education reform and privatization have proven to be a failure.”

That’s the state of things between the CTU and the administration at this point: frosty at best. Can this graduate of Pilsen’s Benito Juarez High School improve relations with the union without giving away what’s left of the administration’s power?

It’s tempting to call that task Job One, but that would obscure the bigger mission.

Despite the revolving door at the top, CPS has actually managed to eke out some important but often overlooked gains, with improved graduation rates and testing outcomes. But Chicago is still a long way from delivering a high-quality education to every child in every corner of the city, and the perception that our schools are falling short persists despite those signs of progress. So keeping his eye on the prize—ensuring a better education for all children in all neighborhoods, and doing so within the district’s means—has to be Job One. If a better relationship with the teachers union moves CPS in that direction, fine. But getting along with the union can’t be the goal unto itself.

Other key priorities: rebuilding trust in the school system so that families can feel good about staying in the city and giving their kids a good education, ensuring kids’ safety in school and in transit to school, and figuring out a way to fill the education gap created during the COVID era.

The union was right when it said Martinez has “a tall task ahead of him.” For the sake of everyone who cares about Chicago, we all must wish him luck as he takes it on.

Katelyn Jones is vice president of policy, research and evaluation at the YWCA Metropolitan Chicago.

Nabilah Talib is director of education and training.

workplace. Supervisors and employees charged with monitoring and confronting harmful behaviors often fail to act.

Organizations must embrace policies and practices that transform workplace culture and climate. But where should they begin?

Evidence-based research makes it clear that organizations and their staff need the skills and tools needed to identify, prevent and

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Assist

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respond to sexual harassment and abuse.

Powerful tools include workplace climate surveys and subsequent action, bystander-­ intervention trainings and increasing diversity among leadership.

Firms, organizations and social groups should conduct regular and frequent employee climate surveys to detect harassment and design policies to eliminate it. Successful efforts should be rewarded, celebrated and shared beyond their own organizations.

Such data can help other organizations to improve their workplace cultures. More information and understanding of employees’ experiences will help organizations design trainings to address persistent cultural problems and produce lasting climate change.

Such policies will not only reduce harassment but also hold individuals accountable and support survivors of sexual harassment.

Try to make the actors (e.g., bosses, employers, co-workers, customers) in these dramas visible—rather than leaving them absent. Bystander trainings may empower everyone in the workplace to stop harassment and encourage employees to disrupt sexual harassment before it happens. Skills

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.

Group

How we can better fight sexual harassment

D

YOUR VIEW

espite the gains of the #MeToo and #TimesUp movements, sexual harassment is not a problem of the past.

As of 2018, 59% of women and 27% of men in the U.S. reported receiving unwanted sexual advances or verbal or physical harassment of a sexual nature, either in or outside of work environments. Toxic work environments recently made national headlines when Gov. Andrew Cuomo was investigated following reports of sexual harassment in his office, resulting in his resignation. In Chicago, both the Chicago Park District and the city of Evanston are confronting investigations after widespread reports of sexual harassment and abuse by lifeguards.

Given the pervasiveness of sexual harassment, what can we do to better prevent and respond to sexual harassment and abuse?

Across the board, organizations must go beyond conventional, compliance-centric trainings that focus on legal compliance.

They simply don’t work, often reinforcing gender stereotypes. Because conventional trainings typically portray men as powerful and women as vulnerable, they prevent women from feeling empowered in the

I

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learned from such trainings make bystanders more likely to help survivors report and get support after experiencing harassment.

At YWCA Metropolitan Chicago, participants in these types of training report walking away with stronger collegial relationships and a stronger sense of community at work, both critical components for a more inclusive workplace and preventing sexual abuse and harassment. Including a focus on bystander interventions may transform a workplace environment into a community by demonstrating what are and aren’t acceptable behaviors.

Promoting more women in leadership positions, including on boards, will strengthen safeguards against sexual harassment.

The pervasiveness of sexual harassment makes the problem seem insurmountable.

But it isn’t. Organizations can take evidence-proven steps to prevent sexual harassment from happening in the first place.

By going beyond conventional workplace sexual harassment trainings, organizations can transform workplace cultures to be mutually supportive spaces that are inclusive and congenial rather than toxic.

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.

9/17/21 3:12 PM

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CRAIN’S CHICAGO BUSINESS • September 20, 2021 11

LETTERS TO THE EDITOR

Who wants to boycott democracy in action?

I

n her op-ed, Marilyn Katz criticizes a sixyear-old Illinois law requiring state pension funds be divested from foreign companies that boycott Israel (“Illinois should avoid the ice cream war,” Aug. 17). That bill enjoyed uncommon common ground: every Democrat and Republican voted for it. Despite that rare bipartisan achievement, Katz claims that it is “tak(ing) up the time (and) resources of the state of Illinois.”

Too onerous to implement is a novel criticism of a duly adopted law that costs next to nothing to implement.

Did Katz oppose the state’s divestment law of companies that did business with South Africa, or do so with Darfur and Iran?

Were those earlier laws also too onerous?

Katz also throws in the First Amendment, arguing boycotts by foreign companies are protected by our Constitution’s free speech clauses. While it remains controversial whether even U.S. companies have First Amendment rights, claiming foreign companies do is simply revolutionary.

Corporations are free to both criticize and, for legitimate commercial reasons, not do business with Israel. Those are protected choices, immune to Illinois divestment laws.

Companies do not, however, enjoy carte blanche protections from discriminatory conduct, and they certainly do not have

constitutional guarantees to receive government investment dollars.

Illinois’ anti-apartheid, anti-genocide, anti-Iranian nuclear weapon and anti-boycott of Israel divestment laws synchronize our government’s actions with our values.

That is public policy at its best. It is neither too onerous or treasonous. It is democracy in action. Who wants to boycott that?

MICHAEL ZARANSKY

Chair, Chicago Jewish Community Relations Council

Here’s who can help lure tech talent Crain’s reported that Penny Pritzker’s P33 and World Business Chicago are running ad

campaigns in cities like San Francisco to attract techies to Chicago (“How are we doing wooing techies? Sept. 1). Chicago can attract people on its own merits if three key people step up their game.

First, Mayor Lightfoot needs to stop feuding with the police.

Second, Cook County State’s Attorney Kim Foxx needs to incarcerate criminals.

And finally, Penny Pritzker needs to ask her brother, Gov. J.B. Pritzker, to enact some meaningful public pension reform.

These three individuals doing their jobs better will make ad campaigns unnecessary.

MIKE MCLAUGHLIN Evanston

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9/17/21 3:12 PM

12 September 20, 2021 • CRAIN’S CHICAGO BUSINESS

CRAIN’S LIST CHICAGO’S LARGEST HOSPITALS Ranked by 2020 net patient revenue 2020 rank

Hospital

Hospital administrator

Network affiliation

2020 net patient revenue (millions); 1-year change

2020 net profit (millions); 1-year change

No. of inpatient days

Hospital employees

Available beds

Daily occupancy rate

1

1

NORTHWESTERN MEMORIAL HOSPITAL 251 E. Huron St., Chicago 60611 312-926-2000; NM.org

Julie Creamer President

Northwestern Memorial HealthCare

$1,889.2 -1.9%

$126.5 -14.4%

233,233

6,617

828

77.00%

2

3

RUSH UNIVERSITY MEDICAL CENTER 1653 W. Congress Parkway, Chicago 60612 312-942-5000; Rush.edu

Omar B. Lateef CEO

Rush University System for Health

$1,867.3 -2.6%

$128.5 41.1%

159,788

9,397

756

58.00%

3

2

UNIVERSITY OF CHICAGO MEDICAL CENTER 5841 S. Maryland Ave., Chicago 60637 773-702-0025; UChicagoMedicine.org

Thomas E. Jackiewicz President

University of Chicago Medicine

$1,750.0 -2.9%

NA NA

208,856

9,406

687

NA

4

4

ADVOCATE CHRIST MEDICAL CENTER 4440 W. 95th St., Oak Lawn 60453 708-684-8000; AdvocateHealth.com

Rich Heim President

Advocate Aurora Health

$1,234.2 -0.9%

$136.1 40.8%

268,986

5,548

735

77.30%

5

5

LOYOLA UNIVERSITY MEDICAL CENTER 2160 S. First Ave., Maywood 60153 708-216-9000; LoyolaMedicine.org

Tad A. Gomez President

Loyola Medicine1

$1,214.2 1.3%

$20.2 -24.8%

131,412

6,861

520

69.00%

6

6

ANN & ROBERT H. LURIE CHILDREN’S HOSPITAL OF CHICAGO 225 E. Chicago Ave., Chicago 60611 312-227-4000; LurieChildrens.org

Thomas P. Shanley President, CEO

Independent

$1,090.3 -1.2%

$1.7 -96.7%

79,305

6,911

364

60.00%

7

7

NORTHWESTERN MEDICINE CENTRAL DUPAGE HOSPITAL 25 N. Winfield Road, Winfield 60190 630-933-1600; NM.org

Kevin Poorten President, west region

Northwestern Memorial HealthCare

$1,049.1 -1.8%

$239.3 15.3%

72,440

4,141

359

55.30%

8

8

ADVOCATE LUTHERAN GENERAL HOSPITAL 1775 W. Dempster St., Park Ridge 60068 847-723-2210; AdvocateHealth.com

Terika Richardson President

Advocate Aurora Health

$853.5 -5.2%

$163.7 7.4%

204,960

3,922

560

71.50%

9

9

UNIVERSITY OF ILLINOIS HOSPITAL & CLINICS 1740 W. Taylor St., Chicago 60612 312-996-3900; Hospital.UIllinois.edu

Michael Zenn CEO

University of Illinois at Chicago

$780.0 2.6%

$7.0 -79.1%

90,694

4,241

367

67.50%

10

10

NORTHSHORE EVANSTON HOSPITAL 2650 Ridge Ave., Evanston 60201 847-570-2000; NorthShore.org

Douglas M. Silverstein President

NorthShore University HealthSystem

$677.3 0.1%

NA NA

88,671

3,403

321

75.00%

11

11

EDWARD HOSPITAL 801 S. Washington St., Naperville 60540 630-527-3000; EEHealth.org

Joe Dant President, CEO

Edward-Elmhurst Health

$623.8 -5.1%

$22.6 -50.4%

84,908

2,206

378

62.00%

12

New

NORTHWEST COMMUNITY HEALTHCARE 800 W. Central Road, Arlington Heights 60005 847-618-1000; NCH.org

Steve Scogna President, CEO

Independent3

$561.7 -8.6%

-$19.4 NM

102,236

3,470

509

73.90%

13

16

ADVOCATE ILLINOIS MASONIC MEDICAL CENTER 836 W. Wellington Ave., Chicago 60657 773-975-1600; AdvocateHealth.com

Susan Nordstrom Lopez President

Advocate Aurora Health

$561.2 25.8%

$89.5 36.3%

91,789

2,119

251

56.20%

14

12

JOHN H. STROGER JR. HOSPITAL OF COOK COUNTY 1969 W. Ogden Ave., Chicago 60612 312-864-6000; CookCountyHealth.org

Robert Sumter Interim chief operating officer

Cook County Health & Hospitals System

$554.42 -8.6%

$82.2 NA

82,121

4,027

432

52.00%

15

13

COMMUNITY HOSPITAL 901 MacArthur Blvd., Munster 46321 219-836-1600; COMHS.org

Luis F. Molina CEO

Community Healthcare System

$499.3 -3.4%

$48.7 4,791.4%

95,086

3,063

413

63.90%

16

14

ELMHURST HOSPITAL 155 E. Brush Hill Road, Elmhurst 60126 331-221-1000; EEHealth.org

Pamela Dunley President, CEO

Edward-Elmhurst Health

$461.8 -4.5%

$33.2 7.1%

73,335

2,127

268

75.00%

17

18

SILVER CROSS HOSPITAL 1900 Silver Cross Blvd., New Lenox 60451 815-300-1100; SilverCross.org

Ruth A. Colby President, CEO

Independent

$442.12 5.7%

$49.9 67.4%

81,055

2,921

300

73.70%

18

15

AMITA HEALTH ALEXIAN BROTHERS MEDICAL CENTER 800 Biesterfield Road, Elk Grove Village 60007 847-437-5500; AmitaHealth.org

Polly Davenport President, CEO

AMITA Health

$441.52 -7.1%

$15.4 41.2%

68,526

1,901

304

62.00%

19

17

RUSH COPLEY MEDICAL CENTER 2000 Ogden Ave., Aurora 60504 630-978-6200; Rush.edu

John Diederich President, CEO

Rush University System for Health

$435.2 -0.7%

-$19.6 NM

49,535

2,499

210

64.00%

20

20

NORTHWESTERN MEDICINE LAKE FOREST HOSPITAL 1000 N. Westmoreland Road, Lake Forest 60045; 847-234-5600; NM.org

Thomas J. McAfee President

Northwestern Memorial HealthCare

$370.8 0.2%

-$22.7 NM

34,372

1,598

114

82.60%

21

19

ADVOCATE GOOD SAMARITAN HOSPITAL 3815 Highland Ave., Downers Grove 60515 630-275-5900; AdvocateHealth.com

Allison Wyler President

Advocate Aurora Health

$358.3 -5.4%

$50.7 18.4%

105,408

1,601

288

63.70%

22

22

NORTHWESTERN MEDICINE DELNOR HOSPITAL 300 Randall Road, Geneva 60134 630-208-3000; NM.org

Maureen Bryant President

Northwestern Memorial HealthCare

$351.6 -1.3%

$38.7 -2.4%

31,124

1,342

159

53.60%

23

23

AMITA HEALTH SAINT JOSEPH’S MEDICAL CENTER - JOLIET 333 N. Madison St., Joliet 60435 815-725-7133; AmitaHealth.org

Herb Buchanan Senior VP, chief regional officer

AMITA Health

$335.72 -4.8%

-$13.3 NM

65,536

1,284

406

44.00%

24

New

NORTHWESTERN MEDICINE PALOS HOSPITAL 12251 S. 80th Ave., Palos Heights 60643 708-923-4000; NM.org

Jeff Good President

Northwestern Memorial HealthCare

$332.2 NA

-$12.2 NM

81,342

2,862

368

60.60%

25

25

METHODIST HOSPITALS 600 Grant St., Gary 46402 219-886-4000; MethodistHospitals.org

Matthew Doyle President, CEO

Independent

$329.4 -0.6%

$14.9 NA

77,654

2,195

460

46.10%

To qualify for this list, hospital systems must be headquartered in the seven-county area of Cook, DuPage, Kane, Lake, McHenry, and Will in Illinois and Lake in Indiana. This list comprises information provided by participating hospital systems, and all figures are as of Dec. 31 unless otherwise noted. NA: Not available. NM: Not measurable. “Total community benefit” includes the unpaid cost of Medicare, Medicaid, uncompensated care, research, health profession education, community health services, subsidized health services and financial donations. “Charity care” refers to strict charity care as defined by the Illinois Community Benefits Act. “Staffed beds” are those that are licensed and physically available, where staff are on hand to attend to the patient who o ­ ccupies the bed. Staffed beds include those that are occupied and those that are vacant. “Licensed beds” refers to the maximum number of beds a hospital holds a license to operate. 1. Loyola Medicine is a wholly owned subsidiary of Trinity Health Corp. 2. Revenue includes CARES Act funding. 3. Northwest Community Healthcare was acquired by NorthShore University HealthSystem effective January 2021.

Researched by Sophie Rodgers (sophie.rodgers@crain.com)

P012_CCB_20210920.indd 12

9/17/21 4:44 PM

CRAIN’S CHICAGO BUSINESS • September 20, 2021 13

CRAIN’S LIST CHICAGO’S HOSPITAL SYSTEMS Ranked by 2020 net patient revenue 2020 rank

Hospital system

Top executive(s)

2020 net patient revenue (millions); 1-year change

2020 net profit (millions); 1-year change

2020 total community benefit (millions); 1-year change

2020 charity care (millions); 1-year change

2020 bad debt (millions); 1-year change

Staffed beds; licensed beds

Local physicians; total physicians

Local full-time employees; total full-time employees

1

1

ADVOCATE AURORA HEALTH 3075 Highland Parkway, Downers Grove 60515 630-572-9393; AdvocateAuroraHealth.org

James H. Skogsbergh President, CEO

$11,337.8 -4.9%

NA NA

NA NA

NA NA

NA NA

NA NA

2,276 4,510

26,585 53,731

2

2

NORTHWESTERN MEDICINE 250 E. Huron St., Chicago 60611 312-926-2000; NM.org

Dean M. Harrison President, CEO, Northwestern Memorial HealthCare

$5,570.7 -1.7%

$293.0 3.3%

$1,166.0 15.9%

$89.7 31.3%

$172.7 -34.1%

2,622 2,649

2,092 2,152

21,999 23,252

3

3

AMITA HEALTH 200 S. Wacker Drive, Chicago 60606 844-366-0610; AmitaHealth.org

Keith Parrott President, CEO

$3,591.51 -6.7%

-$437.2 NM

NA NA

NA NA

NA NA

NA NA

610 610

18,202 20,697

4

4

COOK COUNTY HEALTH & HOSPITALS SYSTEM 1950 W. Polk St., Chicago 60612 312-864-6820; CookCountyHealth.org

Israel Rocha Jr. CEO

$3,015.91 17.6%

$8.0 -56.1%

NA NA

$284.3 -45.7%

$166.5 -43.3%

NA NA

882 882

6,104 6,104

5

5

RUSH UNIVERSITY SYSTEM FOR HEALTH 1725 W. Harrison St., Chicago 60546 312-942-5000; Rush.edu

Ranga Krishnan CEO

$2,460.6 10.5%

$171.6 -30.4%

$17.9 6.5%

$33.0 8.4%

$86.5 3.9%

976 983

863 863

12,261 12,261

6

7

NORTHSHORE UNIVERSITY HEALTHSYSTEM 1301 Central St., Evanston 60201 847-570-2000; NorthShore.org

J.P. Gallagher President, CEO

$2,134.4 2.1%

-$18.3 NM

$268.4 43.3%

$27.9 52.7%

$54.9 3.9%

1,037 1,101

1,094 1,094

7,654 7,654

7

6

UNIVERSITY OF CHICAGO MEDICINE 5841 S. Maryland Ave., Chicago 60637 773-702-1000; UChicagoMedicine.org

Kenneth S. Polonsky, Executive vice president for medical affairs, University of Chicago

$2,050.0 -3.7%

$50.9 -33.6%

$656.9 NA

NA NA

NA NA

NA 1,296

1,390 1,390

13,6002 13,600

8

8

LOYOLA MEDICINE3 1 Westbrook Corporate Plaza , Westchester 60154 708-216-3215; LoyolaMedicine.org

Shawn P. Vincent President, CEO

$1,573.0 -2.0%

-$11.1 NM

$249.0 32.7%

$12.8 30.0%

$25.8 10.5%

1,049 1,088

737 737

7,568 7,568

9

9

EDWARD-ELMHURST HEALTH 4201 Winfield Road, Warrenville 60555 630-527-3000; EEHealth.org

Mary Lou Mastro CEO

$1,303.8 -4.4%

$55.8 -35.0%

$123.6 -31.9%

$12.6 -2.7%

$10.7 -30.4%

747 725

353 371

6,045 6,149

10

10

SINAI CHICAGO 1500 S. Fairfield Ave., Chicago 60608 773-542-2000; Sinai.org

Karen C. Teitelbaum President, CEO

$446.8 -3.9%

$10.7 NA

$58.8 16.4%

$38.6 33.1%

$62.8 34.9%

491 652

225 225

3,250 3,250

To qualify for this list, hospital systems must be headquartered in the seven-county area of Cook, DuPage, Kane, Lake, McHenry, and Will in Illinois and Lake in Indiana. This list comprises information provided by participating hospital systems, and all figures are as of Dec. 31 unless otherwise noted. NA: Not available. NM: Not measurable. “Total community benefit” includes the unpaid cost of Medicare, Medicaid, uncompensated care, research, health profession education, community health services, subsidized health services and ­financial donations. “Charity care” refers to strict charity care as defined by the Illinois Community Benefits Act. “Staffed beds” are those that are licensed and physically available, where staff are on hand to attend to the patient who occupies the bed. Staffed beds include those that are occupied and those that are vacant. “Licensed beds” refers to the maximum number of beds a hospital holds a license to operate. 1. Revenue includes Cares Act funding. 2. Approximate. 3. Loyola Medicine is a wholly owned subsidiary of Trinity Health Corp.

Researched by Sophie Rodgers (sophie.rodgers@crain.com).

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Developer makes no representations regarding any view and/or exposure to light at any time including any existing or future construction by either owner or a third party. Square footage and ceiling heights are approximate and may be based on various measurement methodologies, subject to construction variances and tolerances, as well as redesign, and vary from unit to unit (and may vary from floor to floor). This brochure shall not constitute a valid offer in any jurisdiction where prior registration is required and not yet fulfilled. Where used, developer shall mean Tribune Tower West (Chicago) Owner, LLC DL# 2556130 and its affiliated entities and their respective managers, members, directors, shareholders, partners, agents, affiliates and employees.

P013_CCB_20210920.indd 13

9/17/21 2:40 PM

PEOPLE ON THE MOVE

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

ARCHITECTURE / ENGINEERING

FINANCIAL SERVICES

LAW

LAW

REAL ESTATE

SmithGroup, Chicago

Aaron Wealth Advisors, Chicago

Golan Christie Taglia, Chicago

MB Real Estate, Chicago

SmithGroup, one of the nation’s leading integrated design firms, hired Susanne “Charli” Buchberger to serve as director of business development at its Chicago office. With nearly 25 years of experience, Charli will draw upon her expertise to expand the office’s substantial portfolio of work across the waterfront, urban design, health, higher education, science & technology, and workplace markets.

She is a passionate steward of the environment and supports local non-profit agencies.

Aaron Wealth Advisors announced the firm has added veteran industry leader Toula Courouklis. She joins as Vice President of Client Services responsible for day-to-day support for clients, including facilitating account openings and cash management at Aaron Wealth Advisors. Courouklis joins Aaron Wealth from Goldman Sachs where she was Vice President of Private Wealth Management. She provided client management and operational support in the ultra-high net worth space.

Leynee Cruz Flores joins GCT as a partner, bringing nearly a decade of experience in all areas of trust and estates including trust and estate administration, litigation and estate planning. Leynee represents individuals and corporate fiduciaries as guardians, trustees, and representatives of decedent’s estate as well as beneficiaries in asset disputes.

In her estate planning practice, Leynee draws from her litigation experience to create custom solutions to fit the needs of her diverse clients.

Robbins, Salomon & Patt, Ltd., Chicago

CONSTRUCTION SERVICES

RSP welcomes Tina M. Paries as a Shareholder in the firm’s Construction Law Practice based in Chicago downtown.

She concentrates her practice on all aspects of construction law and represents a wide variety of clients, including owners, developers, architects, engineers, general contractors and subcontractors. Tina also is involved in the drafting and negotiation of contracts for both public and private projects and has extensive experience litigating a myriad of construction disputes.

Leopardo Companies, Chicago Ryan Haase started as a project engineer in 2007, most recently serving as Sr. Project Manager (SPM) in the TI market.

His experience includes the USO at Naval Station Haase Great Lakes, Sonova, Grant Thornton, LUMC labs and many projects for TIAA/Nuveen Investments. He holds a degree in architectural technology from Harper College and is a member of BOMA. Ryan is also a LEED AP O+M. Sebastian Steve Sebastian started as a PM in 2016 and was most recently an SPM in the residential market. His experience includes the Ravenswood Senior Living complex, Midwest Orthopaedics at Rush Oak Brook, UCM for Advanced Care. He holds a BA in engineering construction management from Southern Illinois University, and an MBA from Northern Illinois University.

Steve is also a LEED AP.

LAW INFO TECHNOLOGY

Taft Law, Chicago

Zing Health, Chicago

LAW

Medicare Advantage plan company Zing Health welcomes Vrajesh Shah as chief information officer. A 25-year innovator in managed care health IT, Shah built technology platforms that help reduce impacts of the social determinants of health. His ability to analyze data and offer strategic healthcare solutions has enabled pharmacy, telehealth and clinical data teams. Shah’s unique understanding of Medicare and desire to help others strengthens Zing Health’s dedication to under-resourced populations.

Hahn Loeser & Parks, Chicago

INSURANCE

LAW

Health Care Service Corporation, Chicago

Ice Miller LLP, Chicago

Hahn Loeser & Parks welcomes litigation partner Sarah Dunkley to its Chicago office.

Dunkley has practiced in federal and state courts in the U.S. and Australia. Her practice includes regulatory disputes, tax prosecutions, international arbitration, class actions, construction litigation, insolvency defense and general contract disputes. Dunkley earned her LL.M. in International and Comparative Law from Indiana University and her LL.B and B.A. from Murdoch University in Perth, Australia.

CONSTRUCTION SERVICES Omni Ecosystems, Chicago Omni Ecosystems welcomes Alita Tucker as Director of Human Resources & Community Engagement. Alita brings with her 20 years of Human Resources experience across multiple industries, including Healthcare, Fine Arts, Consumer Products, Higher Education, and Government. She is a problem solver who connects talent processes to Omni values, culture, vision and strategy for organizational impact and community growth.

DESIGN / BUILD

Health Care Service Corporation (HCSC), the country’s largest customer-owned health insurer, appointed Kassie Maroney to Chief Actuary. Maroney previously served as a Vice President of Actuarial for the company. She will be responsible for actuarial pricing for products, underwriting and actuarial planning and forecasting.

Prior to HCSC, she held actuarial leadership positions at Florida Blue and Aetna. Maroney is an alumnus of Drake University.

Jennifer Fredericks has joined Ice Miller LLP as the new director of business development for public finance. Previously Fredericks was a vice president of business development for the corporate trust group at Bank of New York Mellon.

At BNY Mellon, Fredericks led the corporate trust business development efforts for public finance, municipals, project finance and public-private partnerships.

P014_CCB_20210920_v2.indd 1

LAW LAW

Ice Miller LLP, Chicago

Elrod Friedman LLP, Chicago

Yankun Guo has joined Ice Miller LLP as a Partner in the Business Law Group.

Her practice focuses on cryptocurrencies, emerging technologies, fund formation, venture financing and corporate compliance. She also advises clients on matters involving trademark registration, product counseling, technology and financial services commercial agreements.

Yankun also provides outside general counsel services to a variety of her small business and start-up clients.

Marcus Martinez has joined Elrod Friedman LLP. His practice will be focused on land use, municipal, and real estate law. He previously served as a City of Chicago Assistant Corporation Counsel, most recently in the Real Estate and Land Use Division. His experience includes overseeing the City of Chicago’s eminent domain program, and serving as counsel to the Chicago Zoning Board of Appeals.

TECHNOLOGY IAA, Inc., Westchester

NON-PROFIT Gift of Adoption Fund, Northbrook Gift of Adoption Fund, a non-profit providing financial assistance to complete adoptions, is excited to announce the appointment of Alison Gutterman and Gregory J. Stemler to its national Gutterman board of directors.

Their experience and skill sets will help make adoption possible for more vulnerable children.

Gutterman, CEO and third-generation family owner of Jelmar, pursued the adoption process Stemler with her two daughters.

The experience fostered her passion for making adoption accessible to children in-need.

Stemler is a recently retired EY Senior Partner for the Strategy and Transactions practice, leading the global consumer products industry sector. A longtime supporter, he was drawn to the organization’s mission of advocating for families.

PUBLIC AFFAIRS

Clayco, Chicago Clayco welcomes Mark Smith as VP in the Industrial Business Unit. In this role, Mark will help implement Clayco’s design-build delivery method in the automotive and advanced manufacturing industries, specifically for electric vehicle, semiconductors and battery plants. With over 35 years of experience managing large-scale design and construction projects for global clients like Tesla, Intel and Lucid Motors, Mark will also help mentor Clayco’s next generation of design and construction leaders.

Associate attorney Reginald Lys joins Taft’s Employment and Labor Relations practice with experience in all aspects of employment litigation, including pre-trial preparation.

MB Real Estate (MBRE) would like to announce the promotions of Katherine Lula and Cory Schauer to senior vice president. Lula and Schauer will also join Lula the MBRE Executive Committee. Lula has also been appointed director of operations. Lula has a background as a litigation attorney, joined MBRE in 2014 as a part of the property team, and has worked for asset management and risk Schauer management at MBRE’s corporate office since 2016. Lula will also serve as MBRE’s general counsel.

Schauer started at MBRE in 2007 and quickly proved capable of handling the many facets of HR. She became the director of MBRE’s HR department in 2018 and has led countless improvements, including a comprehensive overhaul and renegotiation of employee health benefits.

Cozen O’Connor Public Strategies, Chicago Cozen O’Connor Public Strategies, an affiliate of the Global 100 law firm Cozen O’Connor, has promoted Patrick Martin to Managing Director.

Directing government relations and public advocacy efforts in the Midwest, Martin works out of the Chicago and Washington, D.C. offices.

His practice focuses on advising highly regulated companies across a variety of business sectors and he advocates for his clients before Congress, the White House, federal agencies, and state and local governments.

Susan Healy has joined IAA, Inc. as Chief Financial Officer.

Healy is a finance and Wall Street veteran with over 25 years of experience driving growth and operational improvement at a number of highly respected, multinational companies including $20 billion beauty retailer Ulta Beauty and Lands’ End. Healy will leverage her proven financial expertise as well as her strong data and measurement philosophy and experience to further IAA’s digital transformation and product leadership position.

WEALTH MANAGEMENT Stableford Capital, Chicago Mark Rehn recently joined Stableford Capital as Director of Client Services. With more than 20-plus years of leadership in taxation and finance, Mark will help Stableford’s clients with estate and tax strategies. His credentials in Tax Law include a J.D. and a L.LM. earned from DePaul University.

Before joining the firm, Mark was the Tax Director of the Americas for part of the largest privately held global chemical company and spent many years as a personal tax and estate planning consultant.

To order frames or plaques of profiles contact Lauren Melesio at lmelesio@crain.com or 212-210-0707

9/15/21 7:47 AM

CRAIN’S CHICAGO BUSINESS • SEPTEMBER 20, 2021 15

SOLUTIONS: The fastest ways to achieve employment equity. PAGE 18 DATA POINTS: Black enrollment decline ‘a crisis statistic.’ PAGE 19

CRAIN’S CHICAGO BUSINESS COLLEGE ACCESS

‘HIRE ED’: Apprenticeships address skills and equity gaps. PAGE 20

RECRUITING Colleges with high minority enrollments see the George Floyd effect as companies seek to ramp up their diversity and inclusion efforts | BY JUDITH CROWN In the eight months following George Floyd’s murder, college administrator LeRoy Jones started receiving calls from corporate recruiters he hadn’t spoken with before. There was Abbott Labs, Cresco Labs, Hyatt, Pfizer, Relativity and other companies and government agencies.

Jones, dean of the College of Arts & Sciences at Chicago State University, recalls the message: In the post-George Floyd world, we’re trying to ramp up diversity and inclusion. The methods we had in place didn’t do the job. Could Chicago State help us recruit and retain diverse talent?

That was a sea change, Jones says.

In the past, companies would offer job postings or show up at a career fair. But there was little follow-up or investment.

These days he has deeper conversations

with callers to assess their level of sincerity and commitment. “Sometimes I feel as if they are just checking a box,” Jones says.

With the gaping inequalities underscored by Floyd’s murder, area companies have been scrambling to bring a better racial and ethnic balance to the workplace and boost minority representation in high-paying STEM jobs and corporate leadership. Citing 2020 National Science Foundation data, Jones notes that while African Americans account for 12% of the national population, they represent only 8% of undergraduate science, technology, engineering and math degrees and only 5% of the STEM workforce.

Consequently, area recruiters are romancing presidents, deans, career office administrators and students at lo-

cal colleges and universities with large numbers of Black and Latino students, including the University of Illinois at Chicago, Chicago State and City Colleges of Chicago.

Administrators say that while the number of raw inquiries is up, it’s more significant that companies are more intentional in their approaches. Software company Postman offered a workshop on its software interface through the student-run Women in Computer Science organization at UIC. Hyatt set aside five summer internships for Chicago State students this summer. And Northwestern Medicine is expanding its apprenticeship program with City Colleges.

“We’re seeing a more purposeful approach to supporting diverse candidates, says Rose Coppola-Conroy, director

LeRoy Jones, dean of the College of Arts & Sciences at Chicago State University

JOHN R. BOEHM

WITH INTENTION

of the UIC Engineering Career Center.

“They’re more specific and targeted.”

Engineering and computer science students at UIC who have made it to their junior and senior years say they expect to have good choices for their first jobs.

The hard part is getting there. More than two-thirds of students from diverse backgrounds who enter college saying they plan a STEM major aren’t in those fields by the time they get to junior year, according to an analysis of academic research and administrative data by nonprofit P33, which works with area companies to help source and develop tech talent from diverse backgrounds. That’s a far steeper decline than the overall student population, according to P33.

See RECRUITING on Page 16

SPONSORS

P015-P020_CCB_20210920.indd 15

9/17/21 3:02 PM

16 September 20, 2021 • CRAIN’S CHICAGO BUSINESS

CRAIN’S CHICAGO BUSINESS

RECRUITING

a ful in M will do s durin

Continued from Page 15 Companies and university programs extend resources to help freshmen and sophomores through the grueling first two years as well as to area high schools to motivate students toward STEM careers. At UIC, the Society of Women Engineers reaches students as young as fifth grade through its Mom, Me & SWE program. “We invite them to campus, show them our research office so they can see what a career in engineering would look like,” says chapter President Lila ­Aryadwita.

Have more corporate job opportunities opened for Chicago State graduates? “There’s more interest in making sure there are more opportunities, but it’s early,” says Chicago State President ­Zaldwaynaka “Z” Scott.

In leges prog pren onee ture, The tions is th job e scho their norit Cit comp appr 21 in Parti as C gram pani Nort partm Colle years tices direc partm

P015-P020_CCB_20210920.indd 16

Lila Aryadwita, UIC chapter president of the Society of Women Engineers

Chicago State University President Zaldwaynaka “Z” Scott not as well developed, college administrators say. Some companies are reaching out for the first time, while others are looking to expand their involvement or start new initiatives.

Itasca-based Knowles, a maker of microphones and audio devices, had a partnership with UIC dating to 2015 that aims to attract more women to engineering. Af-

ter George Floyd’s murder, “we formulated our (diversity, equity and inclusion) strategy to focus more on people of color and recruit more African American engineers,” says Ray Cabrera, senior vice president of human resources and chief administrative officer. The company established new scholarships for students of color at the University of Illinois

at Urbana-Champaign and Penn State University. This summer, the company arranged for Knowles engineers to tutor 10 rising high school freshmen in math and science. “This focuses on academically average students from the highest-risk communities, not the stars,” Cabrera says. “This is to help them get through high school and then be college-bound.”

PHOTOS BY JOHN R. BOEHM

LONG-TERM RELATIONSHIPS

Of course, many Chicago companies are familiar names in the halls of UIC because they recruited well before George Floyd.

Grainger participates in networking events, panel discussions and “lunch and learn,” says Chief Human Resources Officer Kathleen Carroll. “Administrators want to meet with senior leaders,” she says. “Students want to hear from new hires. What does a day in the life at Grainger look like?”

ComEd in 2019 launched a program that awards partial scholarships to promising sophomores from diverse backgrounds pursuing STEM degrees at UIC and the Illinois Institute of Technology. Those students gain access to a mentor from the company and the opportunity to apply for internships, says Michelle Blaise, senior vice president of technical services. More than half of the 40 graduate engineers hired last year were from minority communities, and more than 70% were interns at some point, she says. ComEd has awarded 12 scholarships since 2019.

“We’re growing our pool through these programs,” Blaise says. Another scholarship program supports high school students at DePaul College Prep, and other initiatives seek to expose minority middle and high school students to the possibilities of STEM careers.

UIC engineering graduate Keziah O’Neal, a self-described math and science geek who is African American and a first-generation college student, started a full-time job in June as an associate engineer at ComEd. She wasn’t in the company’s scholarship program but had been courted by the utility for more than two years with internships in the summers of 2019 and 2020. For O’Neal a welcoming workplace was paramount: “People of color want to go to a company where they know they’re respected and valued and not there because they’re a diversity hire,” she says.

Most corporate engagement is

Discussions between Hyatt and top Chicago State administrators led the hospitality giant to establish five internships for students from the university. “Hyatt said, ‘We want you to send students to us who are interested in a longterm relationship, and here are the skills we need,’ ” Jones says.

Administrators publicized the opportunity and then worked with Hyatt to select the candidates they thought would be the best fit. Then the interns attended a boot camp run by the career services department to prepare them for the corporate environment, covering etiquette, proper dress and other soft skills.

Minority students often aren’t as savvy about higher education as majority students, which is why Chicago State needs more intentional engagement from companies, Scott says, adding, “It can’t be, ‘Here’s a scholarship; good luck.’ ” In cases where Chicago State students don’t have the proper clothes for a corporate job, they can take advantage of a closet of donated clothes at the career services department to build a wardrobe. Some students struggle for train fare to get to work. Others need child care: 30% of students have at least one child, Scott says.

The first group of Hyatt interns completed their programs this summer, and one rising senior in IT and cybersecurity was offered

9/17/21 3:02 PM

a full-time job when he graduates in May, Jones says. The student will even have an opportunity to do some contract work for Hyatt during the school year.

NAVIGATING THE ENGINEERING CURRICULUM

In another approach, City Colleges of Chicago is expanding its program with the Chicago Apprenticeship Network that was pioneered four years ago by Accenture, Aon and Zurich Insurance.

The program has varying iterations, but the underlying premise is that students get paid, on-thejob experience while they attend school, and companies expand their recruiting pipelines for minority talent.

City Colleges worked with 38 companies on internships and apprenticeships last year, up from 21 in 2019, a spokeswoman says.

Participation fell earlier this year as City Colleges retooled the program, but it is aiming for 40 companies by year-end. For example, Northwestern Medicine’s IT department, which has hosted City Colleges interns for the past five years, recently added two apprenticeship positions, says program director Chrissy McNulty. Her department expects to expand that

to 10 apprenticeship positions by spring 2022.

“We’re seeing more employers coming to us for different opportunities—apprenticeships, internships and full-time jobs,” says Chadra Lang, City Colleges’ director of apprenticeships and workforce solutions. The colleges coordinate with employers to customize curriculum so students are prepared for the specific roles being offered, she says.

A $1 million donation from consultancy SDI Presence helped fund Tech Launchpad, a program at Kennedy-King College in Englewood that offers credit and certification classes in cybersecurity, software development and game design and development.

At the UIC College of Engineering, corporate inquiries often are referred to student organizations such as the Society of Hispanic Professionals in Engineering, the National Society of Black Engineers, Women in Computer Sciences and the Society of Women Engineers.

Administrators estimate that inquiries are up by 25% to 30% since the middle of 2020. But corporate recruiters sometimes have to be coached to put a finer point on their outreach, says Coppola-Conroy at UIC. “A student of color, or a wom-

an, wants to be hired because of who they are and what they bring to the situation, not because of their skin color,” she says. Just over 30% of the 4,100 students enrolled at the College of Engineering as of August were underrepresented minorities.

Student organizers say they are receiving more requests for meetings than they can accommodate.

“One of the hardest parts is picking and choosing which companies to schedule for an event,” says Aryadwita of the Society of Women Engineers. “I’ve already told five companies, ‘partner with us for the spring.’ ” The most valuable interactions, students say, are hands-on sessions such as workshops and résumé reviews. They appreciate when recent grads return, including women and people of color, who can describe what it’s like to work for a particular company.

The Postman workshop offered through Women in Computer Science was valuable because the company offered a certificate for members who attended, says President Ameesha Saxena. “They came in for education; they wanted to connect,” she says.

UIC junior and senior engineering students from diverse backgrounds say they have good career

choices. But they place a priority up the benefits of STEM education.

Then there’s the Society of Womon finding an environment that’s welcoming. “If you don’t have en Engineers’ Mom, Me & SWE that, there’s no point in diversity,” program that targets fifth- through says Karenly Gerena, president of eighth-grade girls. A lot of compathe UIC chapter of the Society of nies want to collaborate and will Hispanic Professionals in Engi- sometimes lead an activity, Aryadwita says. The program has grown neering.

The hard part is getting through to a core group of 60 students who the tough early years of the engi- come to events, although recently neering curriculum. Many students they’ve been virtual.

When it comes to recruiting aren’t ready for the demanding courses. Some underclassmen be- students, companies that have dicome defensive and complain that versity organizations and affinity they’re being picked on, says Gerald groups in place are more interSmith, director of minority affairs esting to the students, Smith says. for the UIC College of Engineering. When they visit campus, it’s smart As an African American, Smith says to bring a diverse team: a person he tries to be a role model so that a student consid- “WE’RE SEEING MORE EMPLOYERS ers, “He’s success- COMING TO US FOR . . . APPRENTICESHIPS, ful. How do I get a piece of that?”

INTERNSHIPS AND FULL-TIME JOBS.” Smith’s department provides tu- Chadra Lang, City Colleges of Chicago toring and other resources. The College of Engineer- from HR and a younger employing guarantees a paid internship, ee and one from a minority backeven if it involves assigning a stu- ground. Even bringing a veteran dent to a UIC department. “Hiring can be effective.

“We had an executive from GE’s managers want to see some experience—academics are not enough,” health care division who said, ‘My Smith says. He and team members team is 90% white, and that has to visit schools and attend communi- change,’ ” Smith says. “It was a true ty events to recruit for UIC and talk confession.”

PHOTOS BY JOHN R. BOEHM

ers

CRAIN’S CHICAGO BUSINESS • September 20, 2021 17

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COMMITTED TO CHICAGO At Wintrust, we’re proud to serve a variety of unique, diverse communities. We know to truly be Chicago’s Bank®, we need to reflect that diversity not only in the neighborhoods we serve, but also the people we employ, the organizations we work with, and our banking and lending practices. We’re dedicated to making our communities more equitable places to live, work, and do business, and we strive to foster inclusivity and diversity within our organization and beyond.

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Banking products provided by Wintrust Financial Corp. banks.

9/17/21 3:02 PM

18 September 20, 2021 • CRAIN’S CHICAGO BUSINESS

CRAIN’S CHICAGO BUSINESS

En

SOLUTIONS

The fast lane to equity in high-demand jobs O

Omowale ­Casselle, top, and Mark Harris are leaders of the Pritzker Tech Talent Labs at the Discovery Partners Institute, a part of the University of Illinois System.

ne of the only ways we are going to make this nation more equitable is to get more women and people of color in jobs that are resilient. Here is the fastest way we know for employers to get people of color into those jobs: 1. Focus on people already working at your company.

2. Be intentional and set a goal for minority participation.

3. Find a university-based partner that offers a training or certificate program in the area of your greatest need. For instance, UIC’s coding boot camps with Fullstack Academy.

4. Ideally, you will want a university that offers a core set of classes that covers most of what you need but is flexible enough to customize 20% or so of the curriculum to meet the demands of your operations.

Here is the fastest way we know for a lower-wage worker to get a high-demand, high-paying job: 1. Embrace tech. See Crain’s January article, “Where the (good) jobs are.” The highest-paying jobs in that article are in tech, and almost all of them require some technical skills.

2. Tell your employer of your ambitions. Ask for help and guidance; you’ll never know if there’s help unless you ask.

3. Find a certification or training program that allows you to stay on the job and that is subsidized either

by your employer or by the state.

Many of the Discovery Partners Institute’s TechReady training programs are affordable. We don’t want you in debt, either.

Now the why: Start the search within your existing workforce, because that’s always the fastest track to success. Getting someone from high school all the way through to degree and career is admirable and necessary; it’s work we do at DPI. It just takes more time.

Meanwhile, a midcareer transition into IT services could take less than a year of training.

One key for employers is to set a goal for minority and female worker participation. You will not achieve equity without stating up front that it is a priority. If your organization has not historically hired people from underrepresented groups, you will have to reach outside of your personal network and work hard to bring diversity to your training and upskilling efforts.

Another key to success is to partner with a university and try to customize a program. This may sound burdensome, but it pays off. If you want your workers ready to go upon graduation or certification day, you need a program slightly customized for your workplace. If you’re a medium or large employer, you may be surprised to learn how willing universities are to engage in conversations about your specific needs.

For both workers and employers, we emphasize tech careers because technology is and forever will be the most resilient sector of the economy.

In 2009, in the wake of the Great Recession, the computing industry lost about 1% of its jobs, compared with total nonfarm employment declines that were almost 5½ times higher. And by 2010, the industry had recovered; the number of computing jobs had surpassed 2008 levels.

Tech jobs don’t go away when the economy falters. They’re also jobs that

increase in number during a pandemic and contribute mightily to growth.

That’s why we’re focused on training people of all ages for careers in computer science, cybersecurity, data science and artificial intelligence.

That’s why we’ve set an ambitious goal of training 3,000 women and people of color annually in these fields by 2030.

Employers, join us and set aggressive goals for upskilling your own talent. It’s a vital responsibility, and it’s doable.

PATHWAYS

City Colleges are an accessible bridge to careers

C Juan Salgado is chancellor of City Colleges of Chicago.

ompanies, large and small, are faced with an imperative: to diversify their workforce. They recognize it is good for their business, affording a diversity of thought and life experience that will help them reach an increasingly diverse customer base.

At the same time, this imperative also creates opportunity so that people from every part of our city can contribute their talents to a more inclusive Chicago economy that benefits us all.

City Colleges of Chicago, the city’s community college system, which I lead, is working in partnership with companies across the city to meet the need for diverse talent. We strive to help Chicago companies bridge the equity gaps in engineering, health care, manufacturing, information technology, aviation, early childhood education, the trades and more. City Colleges’ student body is 75% Black and Latinx, including many students who are the first in their family to go to college, and others who are working or managing family responsibilities while also advancing their education. These students crave opportunity, and when they get it, they thrive.

Take Kamron Southall. While

P015-P020_CCB_20210920.indd 18

studying IT at City Colleges, Kamron landed a yearlong paid apprenticeship at a global financial firm in town. His hard work turned that apprenticeship into a full-time position as a software engineer. At 22, Kamron is planning to buy a house, rather than paying off mounds of college debt. He hopes to complete his bachelor’s degree with the help of his company’s tuition reimbursement program. Kamron, like so many of our students, just needed an opportunity to get his foot in the door.

At City Colleges, we recognize we must do our part—by creating relevant educational pathways open to all and preparing our students with the supports to succeed. Each of our colleges features a Center of Excellence in a high-demand field, with curriculum informed by industry experts.

This didn’t grab the headlines, but it should have: Wilbur Wright College’s engineering pathway was just named one of the 2021 Most Inspiring Programs in STEM. More than 80% of students enrolled in Wright’s engineering program are Latinx or Black; 25% are women. No small feat, and it didn’t happen overnight. Our team built a summer bridge program between

high school and freshman year to help students brush up on core STEM skills.

We also built strong relationships with four-year university engineering programs so our students have a clear path to continue their education. It’s all part of our strategic plan rooted in achieving equity in student outcomes.

We are making similar moves in information technology. The Bureau of Labor Statistics reveals an underrepresentation of female, Black and Latinx professionals working in the information technology industry in 2018.

Among U.S. software developers, for example, just 3.9% were Black, 5.3% were Latinx and 19% were women.

With support from local and global companies, we developed the Tech Launchpad at Kennedy-King College, the City College based in Englewood on Chicago’s South Side. Kennedy-King is now an approved training academy for Fortinet, Amazon and Cisco, and it partners with companies including Google, Apple, Cisco and SDI Presence for customized training and tech boot camps. The college is home to new and forthcoming programs in cybersecurity, game design, software development, web develop-

ment and networking systems.

Through the Chicago Roadmap, our unprecedented partnership with Chicago Public Schools, we are working to offer career exposure and meaningful credentials while students are in high school.

We have redoubled scholarships and grants that provide students access to college. For instance, this summer we launched Future Ready, which offers high-demand, shortterm college credentials at no cost to qualifying Chicagoans. And our Fresh Start debt forgiveness programs let students return to college and “learn off” pre-existing tuition debt. We have expanded supports—from loaner laptops and Wi-Fi to food pantries and more—to ensure our students are positioned to succeed.

There is still much work ahead of us to empower our most resilient students and close the equity gaps, and we cannot do it alone. We need Chicago companies to tap into our talent. Apprenticeships are a good beginning and make both sense and cents. When we uplift a student, they in turn uplift their family, and together, we all lift up our city.

9/17/21 3:02 PM

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CRAIN’S CHICAGO BUSINESS • September 20, 2021 19

Enrollment decline leaves fewer Black college students to recruit

BY JUDITH CROWN With companies accelerating recruiting of minority students at area colleges and universities, it’s a good time to be in school. But Illinois colleges face a challenge countering a long-term drop in Black enrollment.

Enrollment of African American students at Illinois colleges and universities fell 34% between 2013 and 2019, according to the Illinois Board of Higher Education. That outpaced an enrollment drop for white students of 25.9%. Latino students are faring better, with an enrollment gain of 8% for the same period. The study covers public universities, for-profit and nonprofit private colleges, and community colleges.

Following the publication of earlier data and George Floyd’s murder in spring 2020, Chicago State University President Zaldwaynaka “Z” Scott convened a statewide working group of more than 40 leaders to address and change practices and policies that stymie access and success.

The decline of 34% in enrollments is a crisis statistic, Scott says in an interview. While the data predates COVID-19, the pandemic has had a devastating impact on Black and Brown communities, she says.

FALL ENROLLMENT* Chicago State University University of Illinois at Chicago 35,000

AFRICAN AMERICAN ENROLLMENT AT ILLINOIS PUBLIC UNIVERSITIES 33,415

30,000

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Graduate

25,000

16,010: A -0.8% change

20,000

10,000

15,000 10,000

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*Undergraduate and graduate. Source: Illinois Board of Higher Education

The Equity Working Group in May released a sweeping action plan that covers access and affordability, preparedness and support, enrollment and program choice, student well-being and connection to career. For example, the report calls for grants that provide small amounts of money that might otherwise prevent students from persisting in college, as well as an increase in need-based funding. The report suggests directives ranging from improving Black student access to dual-career programs to promoting early career exploration.

“Money is not the only chal-

tion. For the 2020-21 school year, enrollment by African American students at Illinois public universities was up 0.6%. Most of that was due to an increase in graduate and professional enrollments, up 5.2% to 4,819. Undergraduate enrollment fell 0.8% to 16,010.

But other data is troubling. In a June report, IBHE noted that African American first-year students are placed in developmental education at higher rates than white students.

Public universities retained 85% of white freshmen who entered school in the 2018-19 academic year, but only 66% of African Amer-

lenge,” Scott says. “It’s food insecurity, health and wellness.” Students require support in accessing technology, gaining access to a laptop and the internet, she adds.

The working group is establishing an umbrella organization at Chicago State to house a newly established Illinois Center for Education Equity, which will be charged with implementing the action plan. The university also is seeking working group members and civic leaders to serve on an advisory council.

There was one encouraging sign in the most recent data released by the Illinois Board of Higher Educa-

Together We Build Opportunity For Everyone

s, ed ur d nd hey eth-

25,605: A 5.3% change

10,000

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WHITE ENROLLMENT AT ILLINOIS PUBLIC UNIVERSITIES

60,000

15,000

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Graduate 23,188: A 4.5% change

20,000

15,000

25,000

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LATINO ENROLLMENT AT ILLINOIS PUBLIC UNIVERSITIES

ican freshmen, IBHE found. In the same period, nonprofit private universities retained 82% of white freshmen but only 63% of African American freshmen.

The problem starts earlier, IBHE notes. African Americans have less access to Advanced Placement and dual-credit experiences. As a result, they miss out on the opportunity to earn credits or get exposure to college-level work. African Americans made up 15% of the high school graduating class in 2018. Yet, of the seniors enrolled in dual credit, only 9% were African American, while 65% were white.

RISE TOGETHER .

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We ask you to join us in helping drive real positive change and to build a safe, equitable, and diverse workplace for all!

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9/17/21 3:02 PM

20 September 20, 2021 • CRAIN’S CHICAGO BUSINESS

CRAIN’S CHICAGO BUSINESS

JOB READINESS

Colleges alone can’t fill the skilled worker needs A

Sandee Kastrul, top, is president and co-founder of I.C. Stars, and Kevin McFall is an I.C. Stars board member.

recent Crain’s Equity story on the lack of diversity in the tech field pointed out several issues that have kept minority participation low. A lack of strong STEM programs in high schools with predominantly minority enrollment, the tribal nature of hiring or the limited recruiting pool are just a few issues that were mentioned.

We agree with everything in the story, but we’d like to add a sense of urgency to the comments made, a call to arms over this issue. Because in our world today, in almost anything you do, there’s an IT professional backing you up in some way, keeping the process working. In fact, it is hard to think of anything today that is not dependent on the work of IT professionals. It’s a crisis that we can’t afford to ignore.

A degree in computer science is necessary for some of this work, but not all of it. Setting up recruiting tables at college campuses is fine, but that alone will not solve the problem. If we are going to be able to keep our society moving, we’d better find more ways to include the growing population that is currently absent from the tech talent pipeline.

According to a recent Deutsche

Bank study, 76% of Black and 62% of Latinx people could get shut out or be underprepared for 86% of jobs in the U.S. by 2045. We need to support alternative training methods, recruit from disadvantaged neighborhoods and widen our tech talent hiring pool. And when Black and Brown talent is hired, we need to make sure they are supported, heard and welcomed.

The chronic unemployment and underemployment found disproportionately in underresourced communities feed street violence, health problems and socially corrosive hopelessness among the young. The lack of diversity in the tech ecosystem limits creativity; the struggle to find enough talent limits business growth. These problems are linked and can be solved jointly if we support alternative training programs, recruit from overlooked communities and improve the corporate culture that acts to limit advancement.

There is no need to reinvent the wheel. Many alternative training programs already are doing necessary work. We have already seen a noteworthy impact from these training organizations in producing more-than-qualified talent for

many types of technology-centered roles, helping to fill the gap. The opportunity, therefore, is that business leaders seek out and partner with such organizations that have demonstrated knowledge, expertise and outcomes.

Inner-City Computer Stars, built in Chicago more than 20 years ago, has a proven track record of success. Our trainees are inner-city young adults with aptitude and determination but without advanced education.

Through our interview process, we identify candidates who have overcome adversity and developed the highest levels of resilience. We find talent, train talent and put talent to work, increasing economic mobility and offering promising young adults pride, purpose and a stake in society.

I.C. Stars graduates are working in

software development, automation, cloud, data and cybersecurity roles.

They are thriving in enterprise IT as well as at smaller consulting firms but also at such companies as Accenture, Salesforce, United Airlines, Relativity and many others.

So, to the question about finding the talent that employers need, increasing diversity in the IT ecosystem and nurturing the leaders that strengthen marginalized communities, it’s paramount to look at training organizations such as I.C. Stars. And there are other training programs, local and national, filling the gap—YearUp, Genesys Works, CodeNow, Re:work Training—as a way to hire diverse talent that colleges alone can’t supply.

Think of it as an investment in our shared future.

PATHWAYS

Apprenticeships are another way to ‘hire’ education

B Kristof Terryn is CEO of Zurich North America, a Schaumburg-based insurance provider that co-founded the Chicago Apprentice Network.

efore switching to the Zurich Apprenticeship Program, Ken Johnson attended Ohio State University. Daniel Montano was at Benedictine University in Lisle. Noah Capistran was attending Illinois State University. Cost and uncertainty about their career direction drove each of them to withdraw.

They found a different path forward through an age-old model that’s meeting urgent workforce challenges across industries: apprenticeships.

At Zurich, we developed our Apprenticeship Program in 2015, hired our first apprentices in 2016, and in 2017 co-founded the Chicago Apprentice Network with Aon and Accenture.

We believed this workforce solution could prove its value to many industries and to overlooked, underserved talent in the Chicago area.

It has. The network now numbers more than 50 employers offering over 1,000 apprenticeship opportunities in Chicago and beyond. Employers in the Chicago Apprentice Network are adapting apprenticeship to the rapidly changing digital economy and offering earn-while-you-learn pathways to business careers in insurance, technology, health care and more. These pathways welcome diverse talent, in part by dropping a prerequisite that has become pervasive in job listings over the past 40 years: a bachelor’s degree.

P015-P020_CCB_20210920.indd 20

The four-year college track after high school has well-documented merits and works for many. But the bachelor’s degree’s blockade on many entry-level jobs in business needs to break.

In recent decades, more Americans have earned bachelor’s degrees and mid-skills job postings have increasingly required them, a phenomenon known as degree inflation. And yet businesses report persistent skills gaps as well as talent shortages. The cost of a degree, meanwhile, has soared, and the investment is no guarantee of gainful employment.

Apprenticeship can more quickly address skills and equity gaps in today’s economy.

Companies tailor their apprenticeships to their needs, but all combine learning and working. In Zurich’s twoyear program, apprentices work three days a week. The other two days, they focus on college coursework toward an associate degree. Zurich pays the tuition and a full-time salary and benefits. Apprentices who complete the program have a guaranteed job with a promotion.

The business invests, so apprentices can be sure they are gaining relevant skills for in-demand roles. And apprentices quickly contribute to the business.

Furthermore, the racial justice movement fueled by George Floyd’s murder has highlighted systemic inequities

that include income and education disparities at the earliest ages, which can preclude later access to and success at a four-year college. Apprenticeship opens the door more widely to people representing diverse backgrounds, who can earn while learning and avoid incurring heavy student loan debt in pursuit of a promising future.

The business, meanwhile, gains access to diverse talent with fresh perspectives that studies show can contribute to innovation and service quality in an increasingly diverse marketplace. Zurich’s program attracts recent high school graduates, military veterans, people moving from service sector jobs and those re-entering the workforce. In 2020, Zurich welcomed our largest and most racially and ethnically diverse cohort of apprentices in the history of our program.

Apprentices get up to speed on corporate culture through interaction and workshops on professional communication and time management (which often isn’t taught in universities).

Colleagues from throughout Zurich lead many of these workshops; it’s a developmental opportunity for them, too.

And in a period of head-spinning turnover in many industries, the retention rate for our apprentices exceeds that of individuals in similar entry-level roles.

Making the case for apprenticeship is

not meant to denigrate higher education. We value education, and many of our apprentice alumni choose to continue studies toward their bachelor’s degree. But education must evolve more quickly and broadly, with a greater emphasis on “hire” education.

Community colleges like Harper College and City Colleges of Chicago have always focused on pragmatic learning directed at defined jobs. And now more community colleges are creating apprenticeship curricula, which makes it easier than ever for businesses to add apprenticeships. Zurich’s apprenticeship education provider in Schaumburg is Harper College.

When we expanded our program to our New York operations in 2020, we helped the City University of New York’s Borough of Manhattan Community College develop and launch its first apprenticeship program curriculum. This year BMCC is providing education virtually to our first Zurich apprentices in Atlanta, Minnesota, North Dakota and Washington.

This is part of the Chicago Apprentice Network’s ambition to create similar networks in additional geographies, including New York, Washington, D.C., Houston, Minneapolis-St. Paul and Northern California. We want to help employers, educators and career seekers explore new pathways to sustainable success.

9/17/21 3:02 PM

CRAIN’S CHICAGO BUSINESS • SEPTEMBER 20, 2021 21

PEOPLE ON THE MOVE

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

Crowe, a public accounting, consulting and technology firm in the U.S. with offices around the world, would like to announce the following newly elected partners and principals.

ACCOUNTING / CONSULTING

ACCOUNTING / CONSULTING

ACCOUNTING / CONSULTING

ACCOUNTING / CONSULTING

ACCOUNTING / CONSULTING

Crowe LLP, Chicago

Crowe LLP, Chicago

Crowe LLP, Chicago

Crowe LLP, Chicago

Crowe LLP, Chicago

Karen Adams, CPA, was named partner in tax services, specializing in federal tax consulting and compliance for manufacturing and distribution companies.

Adams Sara Arvold, CPA, was named partner in tax services where she oversees state and local tax professionals who specialize in income taxes, franchise taxes, sales taxes, property taxes, unclaimed property and negotiated incentives.

Arvold

Jenny Burke, CPA, was named partner in tax services. In this role, Burke brings her specific work experience to taxexempt organizations serving clients in multiple Burke industries.

Jacob Chacko was named principal in consulting. Chacko specializes in software development, particularly for the automotive and manufacturing industries.

Jesse Evans, CPA, was named partner in advisory services where he specializes in financial due diligence investigations and consulting services.

Curt Gendron, CPA, was named partner in advisory Evans services. As a leader of Crowe’s operational transaction advisory group, he focuses on identifying operational value creation levers preclose, and subsequently helping acquirers capture that value post-close.

Gendron

Kevin Lane, CPA, was named partner in advisory services. Lane is a leader for Crowe’s outsourced corporate development solution, providing both buy-side and sell-side clients with Lane objective, independent perspectives on critical valuation, transactional and integration-related matters.

Jerry Larson was named principal in advisory services. He provides merger and acquisition Larson services, including operations diligence, integration and value capture support for private equity and strategic buyers.

Nicole Sims, PMP, was named principal in consulting. In this role, she focuses on public sector cloud solutions managing and growing the nationwide service Sims across state and local governments and transportation agencies.

Danny Torello, CPA, was named partner in tax services. He is a leader in the firm’s real estate & construction tax group in Chicago, as well as the Chair for Torello the Illinois CPA Society’s flow-through committee.

ACCOUNTING / CONSULTING

ACCOUNTING / CONSULTING

ACCOUNTING / CONSULTING

ACCOUNTING / CONSULTING

ACCOUNTING / CONSULTING

Crowe LLP, Chicago

Crowe LLP, Chicago

Crowe LLP, Chicago

Crowe LLP, Chicago

Crowe LLP, Chicago

Marc Baker was named principal in advisory services. In this role, he helps clients work through complex IT initiatives ranging from system implementations to company mergers and Baker integrations.

Tony Boras, CPA, was named partner in firmwide risk management. As part of the Crowe assurance professional practice, he provides technical guidance on Boras governmental and not-forprofit accounting and auditing matters to the firm’s professionals and clients.

Brian Chmiel, CPA, was named partner in advisory services. In this role, Chmiel will help lead the firm’s post-acquisition dispute advisory services.

Chmiel Ryan Chojnacki, CPA, was named partner in advisory services.

He specializes in merger and acquisition transaction services for strategic and financial buyers within the healthcare industry.

Chojnacki

Staci Guajardo, CPA, was named partner in audit services. She is a leader in the firm’s benefit plan services group, which provides audit services for Guajardo qualified retirement plans and other employee benefit programs.

Susannah Heitger, PMP, was named principal in consulting. As part of Crowe’s public sector consulting group, she leads the strategy and Heitger management advisory team for state and local government clients nationally.

Wes Lindberg, CPA, was named partner in advisory services.

Lindberg focuses on financial due diligence for clients in the private equity, manufacturing Lindberg and distribution, retail and consumer products, construction, and business services industries.

Michael Lucas, CISSP, was named principal in consulting. In this role, he focuses on growing Crowe’s life sciences Lucas group by expanding the reach of the firm’s digital security and privacy & data protection offerings in the market.

Charlotte Vrba, CPA, was named partner in audit services. In this role, Vrba oversees benefit plan audit engagements and is a leader for the benefit plan audit group Vrba in the Illinois market.

David Wentzel, CPA, was named partner in firmwide risk management services.

Working within the firm’s accounting professional practice, he supports audit consultations and training and Wentzel implementation guidance on emerging and complex technical accounting issues.

ACCOUNTING / CONSULTING

ACCOUNTING / CONSULTING

ACCOUNTING / CONSULTING

Crowe LLP, Chicago

Crowe LLP, Chicago

Crowe LLP, Chicago

Julie Collins, CPA, was named partner in firmwide risk management within the firm’s assurance professional practice.

She assists clients in a broad range of industries, specializing in healthcare, Collins and also serves as a subject-matter expert in ASC 740 accounting for income taxes.

Jeremy Epstein, CPA, was named partner in advisory services, providing traditional forensic accounting, Epstein litigation support, due diligence and assurance services.

Dennis Kalten, CPA, was named partner in advisory services. He is a co-leader of Crowe’s sellside due diligence group and provides transaction advisory services for Kalten acquisitions, carveouts, mergers, sell-side transactions and §363 sale transactions.

Sara Krople, CPA, was named partner in the financial services group within audit services.

In this role, she serves financial services clients, Krople with a specialty focus on digital assets.

Mohammad Nasar, CBIP, was named principal in consulting. Nasar is a leader on the data consulting team within consulting financial services and intelligence, Nasar as well as a data owner for the financial services group.

Andy Rascia, CPA, was named partner in tax services. He assists both public and privately held clients in a broad range of industries, providing services such as Rascia accounting for income tax, income tax compliance, and mergers and acquisitions tax consulting.

P021_CCB_20210920_v3.indd 1

Chacko

9/17/21 3:26 PM

22 September 20, 2021 • CRAIN’S CHICAGO BUSINESS

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Cooley’s Chicago office will occupy an entire floor at the Bank of America Tower, 110 N. Wacker Drive.

Cooley faces a competitive legal landscape COOLEY from Page 3

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to sustain its presence compared with better established environments like New York City, Boston and Los Angeles, where it already has offices.

For Rick Ginsberg, partner in charge of Cooley’s Chicago office and perhaps the firm’s most high-profile local addition, there’s no doubt. A longtime adviser to acclaimed startups including Groupon, Tempus and Echo Global Logistics as well as the venture capital fund Lightbank, Ginsberg brings a significant book of business to Cooley. He declines to say whether specific clients are following him but acknowledges that’s by and large the case (though Cooley didn’t represent Echo in its recently announced sale to private equity, according to a firm spokeswoman).

Even before it located here, Cooley was doing “substantial business” in the Midwest, Ginsberg and others say, to the tune of 500 or so clients. They include Chicago venture capital firm Jump Capital and fintech startup Amount, a freshly minted local “unicorn.”

“They had their eye on the market for a while,” Ginsberg, a former partner at Winston & Strawn, says of his new employer. “They saw a fragmented market as it relates to firms that cater to high-growth, disruptive technology and life sciences companies, which is where Cooley is most differentiated.”

REACHING OUT

Connect with Claudia Hippel at claudia.hippel@crain.com for more information.

P022_CCB_20210920.indd 22

Cooley’s strategy involves tapping companies not just in Chicago but also in neighboring Rust Belt states and other big cities in the middle of the country including Austin, Texas; Nashville, Tenn.; and Atlanta, where it doesn’t have a physical presence.

With revenue increasing for 11 consecutive years, Cooley grossed $1.55 billion in 2020 and is one of the top players in tech. It represents 6,000 companies, including 35% of the country’s unicorns, and some of its most esteemed clients

include Zoom and Snowflake computing, a data warehouse provider, that went public in 2020 and raised a stunning $3.8 billion in its IPO. PitchBook ranked Cooley No. 1 for representing companies in venture financings, both in the U.S. and the Great Lakes region, accord- Rick Ginsberg ing to its website.

“These guys have an advantage,” Chicago legal recruiter Kay Hoppe said of Cooley. “They own the space where they’ve made their name. . .They come in as a dominant player in the areas that they are best known.”

Other leading firms in the startup and venture capital space include Wilson Sonsini, Gunderson Dettmer and Fenwick, according to Erik Gordon, a professor at the University of Michigan’s Ross School of Business. None of those firms have offices in Chicago, creating an opportunity for Cooley to capitalize on local innovation, which is only bolstered as area universities and tech incubators fuel new entrepreneurs.

But Cooley isn’t necessarily pigeonholing itself. Ginsberg describes the firm’s overarching goal as catering to companies throughout their entire lifecycle—from the early founder-backed days to initial public offerings and beyond. About two-thirds of the Chicago office is staffed with transactional attorneys, and it’s looking to grow the litigation side, which can serve companies in post-IPO phases as they’re faced with more employment disputes and lawsuits.

When it comes to Chicago, Cooley is no stranger, either. Stephen Neal, the firm’s longtime chairman who retired from leadership in 2020 after a decade at the top but retains an emeritus title, is the son of Phil Neal, a former dean of the University of Chicago Law School and founder of local firm Neal Gerber Eisenberg. And Mike Lincoln, Cooley’s vice chair who

helped launch the Chicago office, served as a legislative assistant to Gov. James Thompson before law school and clerked in the federal courthouse downtown.

Recent hires are also well connected. Alya Adamany Woods joined Cooley this month as vice president of business development in Chicago after leading Intersect Illinois, the government entity that tries to attract more jobs and companies to the state, for two years. There’s also Matthew Kutcher, a former deputy chief of the General Crimes section in the U.S. Attorney’s Office for the Northern District of Illinois, who came to Cooley as a litigator in June.

QUALITY

Kent Zimmermann, a legal consultant who works with Chicago firms, said it’s important to pay attention to the quality of attorneys hired by Cooley, not just the quantity. He notes it could be challenging to entice more big names because partners at Cooley are earning less, on average, than their counterparts at the city’s pre-eminent firms.

According to data collected by American Lawyer in 2021, Cooley’s equity partners earned about $3.2 million each compared with $6.2 million at Chicago-based Kirkland & Ellis, the world’s most profitable firm, and $4.5 million at Latham.

Plus, attorneys at other leading firms like Mayer Brown and Sidley Austin might not want to leave employers where they’re comfortable to take a bet on the newest shop in town.

“Anybody can go and hire 15 people tomorrow,” Zimmermann says. “The question is are they going to get good rates? Are they going to bring in the business they said? Are they going to work out in the culture? And we don’t know that yet.”

John Pletz contributed.

9/17/21 4:18 PM

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A RETURN TO THE WORKPLACE

As the pandemic continues, employees are headed back to the workplace in some form—whether in-office, work-from-home or a combination. Whatever the arrangement, each option has its own unique design and other challenges. Three local executives involved with the future of Chicagoland’s workplace shared their current insights with Crain’s Content Studio.

How is your organization involved with the future of Chicagoland workplaces?

Elbert Walters III: Powering Chicago is committed to providing a safe workplace for all Chicagoland residents when the return to office is right. As we continue to grapple with the effects of COVID-19, our union electricians and contractors have begun installing contactless office components to ensure a safer working environment— components such as UV lighting, air purification systems, automatic lighting, touchless soap dispensers and faucets, and thermal temperature scanners.

These contactless office features help reduce the spread of COVID-19 and other contagions.

Rick DuPraw: As a general contractor, Leopardo is involved in many different ways. We work directly for end-user clients as well as landlords and building owners on base-building upgrades and improvements to amenity spaces. As a construction manager, we do ground-up construction as well as large renovation projects. Either way, our preconstruction, costmodeling and design-assist expertise is often called on as we help owners, developers, brokers and architects in the design stages. And when it comes time to build, no one takes more pride in helping shape the ever-changing Chicago skyline.

Karl Camillucci: Taft Law is a full-service law firm with real estate, corporate and employment law groups,

What’s the number one workplace issue or concern you’re hearing from your clients/customers?

DuPraw: Our clients are concerned about building the office of the future, meaning that they need help understanding that it will be employee-centric with features around health, wellness and technology, and incorporating features to create environments where employees feel comfortable engaging collectively in person or via virtual meetings. This is a great opportunity for us, in that we have a portfolio of sustainable and healthy, high-performance projects mixed with unparalleled experience integrating hospitality and technology into spaces.

Walters: Our downtown office customers are concerned about providing a comfortable, safe working environment for their employees.

Our contractors and electricians will continue to work hand in hand with our customers to meet their needs and provide contactless office tools for a smooth transition back into the workplace. This ultimately means providing the right types of touchless tools to ensure that there’s no unnecessary spread of COVID-19.

— RICK DUPRAW, LEOPARDO COMPANIES

P021_023_CCB_20210920.indd 21

Partner Taft Law kcamillucci@taftlaw.com 312-836-4085

What industries/sectors are doing relatively well?

Camillucci: Industrial, warehousing and data center uses are expanding rapidly. Consumer demand for fast and even same-day delivery by e-commerce businesses has driven insatiable hunger for warehousing space located close to where people live. In addition to

RICK DUPRAW

ELBERT WALTERS III

Executive Vice President Leopardo Companies rjdupraw@leopardo.com 312-516-3651

Executive Director Powering Chicago ewalters@poweringchicago com 312-989-0724

massive fulfillment centers, socalled “last-mile” delivery properties have become extremely important.

E-commerce and use of social media and cloud-based media has also created an imperative to build as many data centers as possible. These trends have led to lots of speculative development of large warehouses and data centers in suburbs and exurbs on underutilized

industrial property and farmland.

Adaptive re-use of vacant strip malls, offices and parking structures for last-mile delivery and related uses is also hot and growing hotter. Unrelated to warehousing and data centers, development activity connected to adult-use cannabis is about to take off because Illinois recently awarded many new facility licenses.

Camillucci: One of the most critical issues is uncertainty regarding the future of commercial office, retail, and restaurant uses. In the commercial office setting, both employers and employees are struggling with the extent to which

“ . . . WE’RE SEEING FUTURE GROWTH BEING FOCUSED ON LIFE SCIENCES, LABS, SENIOR LIVING FACILITIES AND AFFORDABLE HOUSING.”

among others. We counsel employers about a wide range of workplace issues. I focus primarily on real estate development, which provides a window into workplace trends. We can see what kinds of workplaces are being built and what kinds are not, as well as how underutilized types of workplaces are being adapted for other uses. We also see the places that are relatively hot and those that are not. New developments and redevelopments often require zoning approvals, financing and incentives that we help clients obtain.

The approval processes can reveal how communities view different types of developments and workplaces.

KARL CAMILLUCCI

employees will return to the office or work from home. Some employers have already had many employees return to the office at least some of the time, while others have had very few return.

Certain employers that planned a return to the office in the fall have delayed those plans due to the spread of the COVID Delta variant. In the retail and restaurant settings, many workplaces have reopened, but businesses are having trouble hiring enough workers. The resurgence of COVID introduces uncertainty about future consumer demand and the types of restrictions that may apply, such as masking, vaccination, occupancy limits or even temporary shutdowns.

Lawyers with one mission: to advance yours.

Counsel for the evolving real estate industry.

Taftlaw.com

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A RETURN TO THE WORKPLACE DuPraw: Health care has been doing well in general, and for us in particular.

Part of the reason is related to an aging population that the health care market has been reacting to for a number of years. But now, it’s dramatically increasing as a lot of projects that initially got put on hold due to COVID are coming online. Mix that in with all the new work that’s ongoing naturally, and you’ve got a boom. In addition, we’re seeing future growth being focused on life sciences, labs, senior living facilities and affordable housing.

Although those are all separate markets, I believe the growth is for similar reasons as health care, and either way, we’re certainly benefitting as those are all strong markets for us.

What industries/sectors are facing the biggest challenges?

DuPraw: Retail and hospitality are facing the biggest challenges due to the pandemic and the growth of the Delta variant. The unpredictability of what the winter is going to bring has put many clients’ future growth plans on hold.

Camillucci: On the real estate side, commercial office, retail and restaurant property owners face challenges for the reasons mentioned previously. Besides restaurants, other hospitality and travel-related businesses—including hotels, airlines and cruises—also face headwinds as COVID continues.

What differences are you observing between the downtown and suburban office markets?

Camillucci: Pre-COVID, many businesses favored downtown offices, in part because millennial and Gen Z employees wanted to live and work in the city. During the height of COVID, people who worked in suburban offices may have had advantages returning to work, as people may have perceived the risk of exposure at a suburban office as less than the risk of going downtown. The continuing spread of COVID, including the potential for additional mutation and variants that may require continued or additional public health precautions, creates a great deal of uncertainty. People of all generations are rethinking the ways that they want to live and work. That could lead to greater interest in suburban office locations. They may be perceived as safer and more compatible with employees’ desire to stay close to home, even when at the office.

Walters: From our perspective, we’re not seeing a lot of differences between the two markets. There’s a desire among all office tenants— regardless of how many of their employees are returning to the office—to provide a safe working environment by installing contactless office components like UV lighting, air purification systems and touchless

card readers that automatically allow entrance into an office suite.

DuPraw: In general, the downtown market has been slow, with over 7 million square feet of sublet space currently available. Although we’ve seen an uptick in architectural design and repositioning of spaces, most corporate tenants—unless obligated—are slow to invest. In the suburbs, activity has increased due to the many flexible work policies being implemented and individuals that prefer that their office is closer to where they live.

What steps can employers and building managers take to ensure that workers have a safe environment to return to when coming back to the office?

decrease the spread of germs across door handles and motion-sensor lighting can limit the number of times a light switch needs to be touched.

UV lighting can eliminate viruses and bacteria in the air and can even be installed within central air filtration systems to ensure that purified air is being evenly distributed throughout a building. Finally, thermal scanners can be installed within a building’s lobby to read the temperatures of all individuals entering the building and alert building staff if an individual enters with a temperature that’s deemed too high.

DuPraw: There are many conversations currently about mandating vaccinations and employees submitting proof that they’ve been vaccinated. Several high-profile architecture, engineering and construction companies as well as

Walters: Whether it’s increased data speeds to connect with remote workers or enhanced safety measures to keep workers safe, cutting-edge electrical technology plays a critical role in our changing workplace. We’re continually installing new safety technology for a contactless work environment and those tools will be critical to the success of the new Chicago workplace.

DuPraw: Companies are using technology to facilitate a hybrid workfrom-home model and ensure a safe environment for their employees. For example, we’re seeing more hoteling

“WE’RE CONTINUALLY INSTALLING NEW SAFETY TECHNOLOGY FOR A CONTACTLESS WORK ENVIRONMENT AND THOSE TOOLS WILL BE CRITICAL TO THE SUCCESS OF THE NEW CHICAGO WORKPLACE.” —ELBERT WALTERS III, POWERING CHICAGO Walters: There are several key steps employers and building managers can take to ensure a safer working environment for their employees.

Touchless entry and exit points can

real estate companies have already put these requirements in place. It’s also becoming the requirements of many of our customers, especially in the health care industry. I don’t think this debate is going away any time soon. But specific to construction, we’re identifying our own team members that are vaccinated so we can readily supply our customers with the needed workforce so when they reconfigure their layouts to consider social distancing protocols and other health and wellness measures or are improving or adding to their audio/ visual conferencing capabilities, we’re prepared.

Camillucci: Based on our collective experience with COVID so far it seems safe to say that vaccines, masks, distancing, and similar precautions appear to make everybody safer.

What role does technology play in adapting the changing CRE and workplace environment?

Camillucci: COVID has accelerated the trend toward using e-commerce to purchase a wide range of products.

That in turn has shaped the commercial real estate market by driving demand for warehousing, trucking and logistics facilities. E-commerce, social media, cloud-based computing and related technology have also created a massive need for data capacity, which has shaped the real estate market through the development of many new data centers. Also, as more restaurants seek to focus on delivery and pickup using apps and other platforms, we see a proliferation of shared kitchens, cloud kitchens and pickup-only restaurants. Obviously, the many

P021_023_CCB_20210920.indd 22

video conferencing and workflow management applications available today allow office workers to be productive while working remotely.

That’s allowed many businesses to survive the pandemic and contemplate a future hybrid workplace.

where even old-line companies are using scheduling software to allow employees to book offices or other conference spaces independently based on schedule and workload. Touchfree environments and the ability to have social distancing are still very important to employees. This also means there’s been a big increase in audio/video conferencing technologies, both in quality and quantity.

What’s your outlook for the corporate office sector in general?

DuPraw: As Chicago moved into Phase 5, we began seeing more activity and momentum, especially in the Fulton Market neighborhood and an uptick in planning from architectural and design firms. Multi-floor tenants in general are looking at options to give back space or reposition their existing space. Sublease space is still high but leveling off and with the Delta variant becoming more prevalent there’s caution in moving forward too quickly.

Camillucci: In the near term, the outlook is uncertain. Over the long term, I believe much demand will return. We can’t predict with confidence how long COVID will interfere with large-scale re-entry to the office. If we get Delta under control and other disruptive variants fail to emerge, maybe back to office plans will resume by winter or spring.

But, if Delta sticks around or another variant emerges, the office sector could be in limbo for longer, especially given the politicization of public health measures. That said, despite the hullabaloo about working from home, I believe many people will eventually

9/14/21 8:36 AM

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go back to the office at least some of the time. Large companies have sent that signal. For me, returning to the office three days per week has been a welcome change compared to working exclusively at home.

Is the hybrid work model here to stay?

DuPraw: Yes, but it will be a “work from office first” model, rather than a “work from home first” model. Many sectors including law firms, banking, institutional and old-line businesses have embraced the hybrid work model, which will reduce the office footprint and offer new design options for the future office. Having said all of that, there will never be a complete substitution for in-person collaboration and brainstorming.

Camillucci: For many employers and employees, a hybrid approach in some form will strike the right balance.

COVID taught us that workplaces don’t have to be rigid about when and where people work, so long as work gets done well and on time. Working from home can be efficient by eliminating commutes and interruptions by colleagues. Still, working at an office provides benefits, too. Co-workers identify with each other and their employers more strongly when they have opportunities to interact in person. Employers want to build that sense of identity, and, over time, many employees will miss it. As nice as it is to work at home some days, it also feels good to be connected to a team with a common purpose. It can also be stressful to work at home with kids, pets and household responsibilities always lurking.

Walters: While some workers won’t return to the office full-time, those who spend even part-time in the office will need contactless components as well as increased data connection reliability. Our member electricians and contractors have been trained to recommend and install the best options for high-speed data connectivity to ensure remote workers are able to seamlessly get their work done.

What emerging or cuttingedge trends will likely affect the future workplace?

Walters: While a hybrid work model may keep many workers from entering their offices every day, they’ll still need to feel safe when they do come in. UV air filtration technology creates healthier air quality circulated into office suites at scheduled times throughout the day to ensure bacteria, mold and viruses are eliminated from the air. Radio-frequency identification readers can ensure that those entering an office building can pass through security with the swipe of an ID badge rather than touching any door handles, and UV lighting can be placed within

a building’s escalator to disinfect the railings each time around.

Camillucci: Many large retail malls will be redeveloped and adaptively re-used as mixed-use developments that incorporate retail, dining, entertainment, multi-family residential, hotel, commercial office and lastmile fulfillment uses. These mini cities will attempt to create symbiotic relationships among the various uses so that each will be more commercially sustainable than any would be alone.

The trend began before COVID and may have temporarily stalled, but many malls won’t be able to survive without thinking creatively about how to reinvent themselves as full-service communities.

DuPraw: The emerging trends will revolve around health, wellness, safety and sustainability. Employees will expect to work for organizations that not only make this a priority but invest in the physicality of space to achieve these goals. For example, our own downtown office is WELL and LEEDcertified and incorporates additional fresh air intake, circadian lighting systems, healthy foods and snacks for employees and a recycling program for waste. Although we started this process way before the pandemic, COVID-19 has certainly put more focus on these issues.

What’s your advice for businesses looking to navigate this uncertain environment?

Camillucci: For businesses and investors with capital, opportunities may exist to acquire properties in struggling sectors at a good price and to redevelop or adapt them for new uses that show greater promise. At a more general level, all businesses can contribute to shortening the period of uncertainty created by COVID by requiring their employees and customers to abide by common-sense public health precautions that will reduce the spread of COVID, reduce the likelihood of new variants and allow all of us to get back to business as usual—whatever that means.

DuPraw: Pay attention to the supply chain, as it’s often a problem—and it changes weekly. For example, the availability and pricing of copper changes daily, so the more you can pre-order and plan upfront and lock in prices and schedule commitments, the better. The problem is that even with commitments, we’re still seeing delays receiving material and products. However, we’ve been able to mitigate these problems greatly via our on-staff procurement specialist who navigates these issues and is able to prevent the bulk of them.

ABOUT THE PANELISTS KARL CAMILLUCCI is a member of the public finance and economic development, real estate, land use and local government practice groups at Taft Law, a full-service law firm with offices in Chicago and throughout the Midwest.

He focuses his practice on tax-exempt and taxable government financings, publicprivate partnerships, project finance, land use and zoning entitlements, economic development incentives, joint ventures, and other matters related to real estate finance and development. He graduated magna cum laude from Northwestern University School of Law.

RICK DUPRAW is executive vice president of Leopardo Companies, a 44-year-old construction company with main offices in Hoffman Estates and Chicago. Previously, he oversaw the company’s tenant interiors group, which is responsible for buildouts, renovations and restorations of commercial spaces. Under his leadership, the interiors business grew from $10 million to $150 million in annual revenue and continues to be recognized for its best-in-class construction. In 2016 he was inducted into the Midwest Real Estate News Commercial Real Estate Hall of Fame.

ELBERT WALTERS III is executive director of Powering Chicago, an electrical industry labor management partnership of the International Brotherhood of Electrical Workers (IBEW) Local 134 electricians and the Electrical Contractors’ Association (ECA) of the City of Chicago. He leads Powering Chicago’s more than 100 annual philanthropic and community impact initiatives and plays a key role in its daily operations as the voice of metro Chicago’s unionized electrical industry. He is a longtime member of IBEW Local 134 and formerly served as its business representative.

some semblance of normal. If you’re a building manager or employer looking to bring workers back into the office, please consider consulting with one of our expert electrical

contractors to assess what your contactless needs are. Together, a proper evaluation will determine what technology will best fit, whether its RFID integration, UV

HVAC upgrades or other tools. Our member electricians and contractors are standing by to help ensure the safest possible return to work for Chicagoland residents.

Chicagoland’s Union Electrical Team

Walters: Finding solutions to control the spread of COVID-19 is the only way we can get back to

“. . . OPPORTUNITIES MAY EXIST TO ACQUIRE PROPERTIES IN STRUGGLING SECTORS AT A GOOD PRICE AND TO REDEVELOP OR ADAPT THEM FOR NEW USES . . .”

LEARN MORE AT POWERINGCHICAGO.COM

— KARL CAMILLUCCI, TAFT LAW

P021_023_CCB_20210920.indd 23

9/14/21 8:36 AM

26 SEPTEMBER 20, 2021 • CRAIN’S CHICAGO BUSINESS

Chicago-area home prices in 2021 are approaching their 2006 record levels HOME PRICES from Page 3 recreation trail is a block south of English’s condo.

Thanks to the improvements all around his home, English’s condo is now worth about $385,000, he said, or roughly 30% more than he paid for it 15 years ago.

But the great majority of Chicago-area homeowners don’t live near the 606, or in the West Loop or a few other spots on the map whose home values soared in the 2010s.

For much of the past decade, including the pandemic era, Chicago has had some of the slowest-rising home prices among major cities, as tracked by Case-Shiller.

A few weeks ago, just ahead of this month’s 15th anniversary of peak pricing, Case-Shiller reported Chicago prices were about 1.2% below their old peak as of June, while nationwide, prices were 41.3% above their old peak.

Case-Shiller’s primary index tracks the prices of single-family homes.

Condominiums, tracked separately, in Chicago are at roughly the same point as single-family homes: Their value was about 1% below the old peak in the latest report.

ANXIETY

That old peak and the valley that followed mean little to people who weren’t in the housing market back then, but English remembers the anxiety. With the mortgage deeply underwater, “it’s a bad feeling, knowing you can’t move for years because you’ll take a financial hit,” said English, who works for a research institution.

Slow-rising home values can make Chicago homeowners feel

they’ve invested poorly in a vehicle that has long been considered one of the U.S. economy’s most reliable generators of household wealth.

That’s particularly true if they’re chatting about home values with friends and relatives in high-rising markets like Seattle, where according to Case-Shiller home values are up almost 75% since their old peak in July 2007. (Not all cities peaked at the same time, and none of these figures account for changes in the property tax burden.)

Yet two housing economists tell Crain’s the 15th anniversary of peak pricing is an occasion Chicagoans can mark with contentment, if not outright smugness.

“One question you can ask yourself is how much home a person who moves to Seattle can afford, and how much home a person who moves to Chicago can afford,” said Gabriel Chodorow-Reich, an associate professor of economics at Harvard University and one of three authors of an August paper that explored home price growth in U.S. cities over the past two decades.

In the city of Seattle, the median price of homes sold in the past year is just under $800,000, according to Redfin, the online real estate marketplace. In the city of Chicago, it’s $340,000.

Geoffrey J.D. Hewings echoes Chodorow-Reich. A professor of economics and geography at the University of Illinois at Urbana-Champaign, Hewings is the emeritus director of the Regional Economics Applications Laboratory, which tracks home prices in Illinois and its major cities for the Illinois Realtors professional association.

Hewings gave the example of a recent graduate student in his program who moved to San Francisco and “told me how much of his income he is spending on a really mediocre apartment. He’s living in San Francisco; it’s a wonderful place, but he doesn’t have enough money to enjoy it.”

AFFORDABILITY

San Francisco home prices are up almost 50% since their May 2006 peak, according to Case-Shiller.

The increases have boosted longtime owners’ household wealth dramatically, but they have also sparked a housing affordability crisis. The same is true in Seattle, San Diego, Portland, Ore., and other cities whose home values have raced ahead of Chicago’s. We have our gentrification trouble spots, but compared with cities that are being remade by rampant gentrification, it’s mellow here.

When World Business Chicago advertised in Texas this month to claim the state’s recent conservative moves on abortion, voting rights and COVID made it harder to attract and retain employers, Hewings thought there was a better idea: “advertise how much easier the housing market is on homebuyers.”

The notion of touting Chicago’s relatively cheap housing market as a way to boost its employment base has been kicking around for several years, but nobody at a leadership level has yet taken on the task.

The findings in Chodorow-Reich’s recent paper suggest somebody had better get on this. Looking at two decades of home price

15 YEARS OF HOME VALUES Since their peak in September 2006, Chicago home values are the slowest-growing among the five largest U.S. cities tracked by the S&P CoreLogic Case-Shiller Indices. (The index does not track Houston, which is larger than Washington, D.C.) Los Angeles

Washington, D.C.

Chicago

New York

Dallas

US average

350 300 250 200 150 100

166.5

Chicago, June 2021

50 0

Jan ’08

Jan ’10

Jan ’12

Jan ’14

Jan ’16

Jan ’18

Jan ’20

Note: The latest index data available is for June 2021, released in late August.

Source: S&P CoreLogic Case-Shiller Indices

movement during the 21st century, the paper’s authors saw a pattern: The cities with the biggest run-ups in the early 2000s housing boom generally had the biggest subsequent downturns, a typical boom-and-bust story in two chapters. The third chapter is revelatory: Those cities that boomed and busted most went on to rebound most heartily in the latter part of the 2010s.

Chicago’s recent slow home price growth is merely an extension of its long-term trend, the paper suggests. The pattern persists in the COVID era, when even our overheated prices seem tepid by comparison to other cities.

“It’s about fundamentals,” Chodorow-Reich said. Housing de-

mand drives home price increases, and a fundamental of housing demand is employment growth.

In the years before the COVID crisis, job growth in the Chicago area lagged behind many major cities.

Expanding the employment base is a comprehensive effort that is intertwined with putting lids on the growth of pension debt and property taxes.

In the meantime, Chodorow-Reich recommends Chicago homeowners focus on some of the other fundamentals of living here: “It’s a very nice place to live,” the Bostonian says. “There are nice restaurants, lots of things to do on the lake in the summer, and affordable housing. Those are pretty good things for a city to have.”

Trailblazing hospital grapples with change as it faces a future without Smith ABILITYLAB from Page 1 Now AbilityLab faces a challenge that has confronted companies such as Apple, General Electric and Starbucks: replacing a legendary CEO who personified the organization.

“Whoever steps up into that role has to not only learn the role, but also is going to be in the untenable position of being compared against the successful and long-tenured CEO,” says Bob Deprez, founder of Deprez Leadership, which advises businesses on leadership transitions following the death of a CEO. “That puts them in a very difficult position to succeed.”

AbilityLab’s need for a new leader comes amid industry changes that will test the durability of Smith’s operating model, including the independence she guarded staunchly in a consolidating industry. The stand-alone rehabilitation hospital in Streeterville would make a ripe merger target for a larger organization, including neighboring Northwestern Medicine.

Competition is increasing, too, as an aging population drives demand for services that help people regain function after life-altering events like strokes and falls. Meanwhile, more patients need care

P026_CCB_20210920.indd 26

during the pandemic for lingering COVID-19 symptoms, such as brain fog and shortness of breath, or to regain strength after a hospital stay.

Across town, Rush University Medical Center is pairing up with a leading national post-acute care provider to open a facility that would target AbilityLab. “For too long there was only one facility dedicated to world-class post-acute rehabilitation care, tucked away in the Gold Coast of Chicago,” the group says in its application for state approval, presumably referring to AbilityLab, which sits at the corner of Erie Street and McClurg Court. “This did not provide the access to care Illinoisans deserved.”

PLANS

Rush and Mechanicsburg, Pa.based Select Medical aim to invest $109 million in a 100-bed rehabilitation hospital on Rush’s Near West Side campus to “bring a high value to patients, families and employers by affording patients convenient access,” a hospital representative says in an emailed statement.

“At the end of the day, we want to help patients,” AbilityLab board Chairman M. Jude Reyes says in an email. “If there are more hos-

pitals committed to this cause, all the better. Shirley Ryan AbilityLab will continue to be differentiated by decades of experience caring for patients with the most severe, complex conditions, and by its ability to infuse the latest research into clinical care.”

AbilityLab has been ranked No. 1 in its field by U.S. News & World Report every year since 1991.

In addition to its Streeterville building and a network of outpatient clinics, AbilityLab provides care at other hospitals—including University of Chicago Medical Center and Advocate Illinois Masonic Medical Center. Such partnerships generated $16.5 million in revenue last fiscal year, accounting for 5% of AbilityLab’s total.

Its expansive network has helped the rehabilitation hospital maintain its independence over the years, as many stand-alone hospitals have gotten scooped up by large chains.

“We have a strong track record of success as an independent organization, and plan to stay this way,” Reyes says.

Still, AbilityLab would be an attractive acquisition for expanding chains looking to offer an array of services that span the full “continuum of care.”

Northwestern Medicine has

shown an appetite for acquisitions, adding 10 hospitals since 2010. In 2016 it bought Marianjoy Rehabilitation Hospital in Wheaton. Adding top-ranked AbilityLab would benefit Northwestern “reputationally and financially,” says Thomas D’Aunno, a management professor at New York University’s Wagner Graduate School of Public Service. Northwestern declines to comment.

The institutions already have ties that go beyond their proximity in Streeterville. Many doctors in Northwestern’s Department of Physical Medicine & Rehabilitation get training at AbilityLab.

NO HURRY

With ample cash reserves and rising revenue, AbilityLab appears to have no immediate need for a deep-pocketed merger partner.

And its sterling reputation continues to generate the patient referrals essential to continuing independence, industry observers say.

For now, the most pressing matter is finding a new leader who can execute Smith’s vision while also staying ahead of rivals. AbilityLab didn’t clearly anoint a successor for Smith, who died at 60 after battling cancer for an undisclosed period of time. Chief Operating Officer Peggy Kirk and Chief Ad-

ministrative Officer Nancy Paridy, who’ve been with the organization for decades, will take the reins on an interim basis.

Reyes declines to discuss succession planning but notes that the next CEO “must deeply understand the vision, and have the expertise and experience to carry it forward.”

That vision includes establishing new alliances with hospitals across the world; commercializing technology that helps people thrive after life-altering injuries; and distributing the Ability Quotient quality assessment tool, which measures patients’ progress to guide doctors and insurers.

A knack for fundraising will also be important. Smith secured a multimillion-dollar donation from Patrick and Shirley Ryan for AbilityLab’s $550 million Streeterville facility. Shirley Ryan serves on the hospital’s board alongside other high-profile members like Reyes, the billionaire co-chairman of beverage distributor Reyes Holdings.

Any new leader will also face the challenge of not being Joanne Smith.

“Dr. Smith was a force of nature,” Reyes says. “She instilled the vision within each of us, and positioned the organization for ongoing success.”

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Chicago Committee on Design has real estate developers and aldermen wary DESIGN from Page 1 Chicago, was forged by Planning Department Commissioner Maurice Cox as a tool for developers to improve their building designs and for the city to provide a more thoughtful—and ideally speedier—review, while also upholding a Chicago tradition of innovative architecture and design that some experts in the field say has recently become more homogeneous and driven by developer budgets.

But the body’s creation is ruffling feathers, most notably among developers that deem it an extra hoop to jump through in an already lengthy city review process at a time when Chicago can ill afford to deter new investors. Then there are Chicago aldermen, some of whom question whether the committee will really be limited to an advisory role—it cannot pass or reject projects itself—and are uneasy about city planners inserting themselves early in a process most aldermen prefer to control.

It’s turning what appears to be a well meaning and relatively innocuous group of volunteers into a lightning rod issue for local real estate investors about the role of the planning department and to what degree the look and feel of a new development should be within its purview.

‘HAVE A CONVERSATION’

“My hope was to create a place where we can have a conversation about the built and natural environment and have it be applicable to real world projects that are going to be realized,” Cox says of the committee, which has met twice so far and will consider a handful of projects each month that are largescale, of historical significance or involve public subsidies. “If we could use this as a way to acceler-

ate the development process, that would be the ultimate outcome.”

Cox, who spent a decade early in his career practicing architecture in Italy and later taught it at Tulane University and the University of Virginia, says he saw a design feedback void in the city’s process of reviewing development proposals after Mayor Lori Lightfoot hired him to run the department in 2019.

Most developers work privately with local aldermen, community groups and planning department staff to gather input on their plans before filing a zoning application for a project with the city. That starts a more public review process that can require approvals from the Chicago Plan Commission, various City Council committees and the full City Council before a project can move forward.

Cox says a comprehensive discussion about architecture and design of a building can get lost in that process or require lots of backand-forth between the planning department and a developer that prolongs the review. That’s why he wants the committee to inject discussion about things like building setbacks, materials, shadows and open space into the earlier stages of planning, when it’s more feasible for developers to reshape projects.

“We think we’re going to give (developers) back days and days off of their approval process,” Cox says. “If we can’t shorten the development process, then this process is not working.”

It’s far from the first time city officials have weighed in on development style. Former Mayor Richard M. Daley in 2003, for example, chided architects and city planners for what he saw as bland design of new buildings in River North. But developers worry the committee—whose members include high-profile names such as

architects Jeanne Gang and Jackie Koo—will be a more formal part of the review process whose recommendations could be used to block a project’s approval even if it meets zoning and use standards.

DEVELOPER CONCERNS

A half-dozen prominent local developers that declined to speak to Crain’s on the record about the new committee out of fear it would hurt their chances for city approvals in the future shared the concern that the city is jeopardizing future investment by putting too much emphasis on design and potentially setting back project timelines.

It’s difficult enough for a developer to line up financing for a new office or apartment building in Chicago that can generate a strong return for its financial backers, they say, let alone one that pushes the envelope on style.

Some suggest Cox and First Deputy Commissioner Melvin Wesley, a veteran architect and urban planner Cox hired in March to oversee the planning department’s design bureau, have unnecessarily delayed projects by espousing overly stringent design standards on a building’s shape, location or the materials used.

It’s still unclear how much developers’ implementation of the committee’s recommendations will sway other city panels’ decisions on projects. But few developers may be willing to risk costly project delays if they flout suggestions entirely.

Aldermen, meanwhile, are concerned the committee could chip away at the authority they wield in their own wards. Ald. Brian Hopkins, whose 2nd Ward includes parts of Streeterville, the Gold Coast and Lincoln Park, says gathering feedback from a panel of esteemed architects and planning

A two-building plan from developer Trammell Crow in the Fulton Market District was the first project to go before the Committee on Design last month. professionals on design can be helpful, but he’s wary of “mission creep” that could turn the committee into a group that indirectly makes or breaks a project.

“As long as they remain in their lane and just have an advisory role, I’m comfortable with it,” Hopkins says. “If it starts to evolve where there’s a potential conflict between aldermanic authority and the opinions of this group, we don’t want this group to prevail when there’s a difference of opinion. That’s the main concern that I hear from my colleagues, and I share that concern.”

Cox says the committee will only serve to help aldermen and developers think through project design at a higher level, and suggests the design group won’t last if they feel

it doesn’t add value.

But he stresses the importance of elevating the conversation around building design in a city he contends “has grown a bit complacent because of its national and international reputation” in the architecture world.

While the city is home to nationally and internationally renowned design firms, “a lot of them don’t actually (do) work in Chicago,” he says.

“I think a city that is not constantly renewing and asking questions about the state of design is a city that is inherently complacent and will lose that credential (as a world-class city) if they don’t create as many practical and real venues to have a public conversation about design.”

Antique furniture sales surge as supply chain woes delay delivery of new goods they can get their hands on.”

Other dealers have similar stories. Tom Jolly, owner of Thomas has brought even higher sales.

Surging demand is boosting Jolly Antiques in Buchanan, Mich., prices. At high-end Chicago auc- says an interior designer from New tion house Hindman Auctions, York recently purchased a leather bidders are paying 20% to 30% sofa for $8,000, then reupholstered more, says Corbin Horn, vice it in mohair. Richard Wright, who president and senior specialist in owns Chicago’s Wright auction European furniture and decora- house, says clients have turned tive arts. Customers also are buy- to him after learning new products ordered elsewhere would aring more pieces, he adds.

It’s not just vintage and antique rive months later than expected. items drawing interest, Horn says. “They’re like, ‘I can’t take it,’ ” he A set of 10 dining chairs that are says.

Supply shortages in furniture and eight to 10 years old sold in a remany other industries tied to the pan“IT’S A TREND THAT’S GOING TO CARRY are demic. Virus surges among workers have MUCH BEYOND THE PANDEMIC.” reduced output at furMike Solan, chief revenue officer, niture factories in the Modern Hill Furniture U.S. and abroad, says Martin Lariviere, procent auction for $18,000, which fessor of operations at Northwestwas close to the original retail cost. ern University’s Kellogg School of “That tells me someone is doing Management.

The surge in demand for many a new house and can’t get chairs ordered from a showroom, and products has also caused a backthey just want the project to be fin- log in shipping, leaving containished,” Horn says. “They or the de- ers sitting in ports and driving up signer are buying whatever chairs shipping costs. A tight labor marANTIQUES from Page 3

P027_CCB_20210920.indd 27

ket, which has affected the freight industry, does not help.

Lead times on custom-made furniture have stretched from six weeks to six months or longer, says Mark Schumacher, CEO of industry group Home Furnishings Association. A retailer might have paid $2,500 to ship a container holding 18 sectional sofas from overseas before COVID-19. By July, the cost had soared to $20,000, Schumacher says.

INSTANT GRATIFICATION

Some consumers are willing to pay the extra costs and wait. But in a retail environment that has become largely about instant gratification, many are not.

“If the consumer can’t get what they want right now, then they’re going to look for alternatives,” Schumacher says.

Antique and vintage store and auction house operators are tweaking their workflows to adapt. Horn says he is looking at new ways to offer property Hindman Auctions might not have specialized in previously; Cerny at Broadway Antique Market now

only holds items until the end of the day, instead of 24 hours. Many dealers have hired new workers, expanded their hours and increased online sales.

Designer Marshall Erb, principal of Chicago-based Marshall Erb Design, says shipping delays forced him to rework his design process.

He waits longer to present designs to clients, to ensure pieces will be available and that prices won’t fluctuate too drastically. It’s exhausting, he says, and a customer service nightmare. Previously, freight costs would comprise about 12% of the budget on a project. That has increased to 20% to 25%.

“We’re trying as much as we can to use local vendors, whether from the secondary market or from auction houses,” Erb says.

Of course, antique dealers suffered alongside other retailers when nonessential businesses were forced to close early in the pandemic. But business picked up quickly after reopening, as people needed desks and chairs to work from home. Another boost came when the work-from-home trend inspired people to buy larger hous-

es or second homes, which had to be furnished.

Many home goods stores saw sales bumps, too. But unlike new pieces, used furniture has the added allure of being considered eco-friendly. That’s an additional factor working in vintage dealers’ favor. Consumers over the past 18 months have changed not only where they buy, but why they buy, says Shivani Vora, who leads global consulting firm Accenture’s Innovation for North America.

“The motivation used to be price and quality,” she says. Now, they factor in elements such as sustainability, convenience and more.

The supply chain issues are the catalyst of a larger shift, says Mike Solan, chief revenue officer at Modern Hill Furniture. He expects revenue at the Countryside vintage furniture store to reach almost $6 million this year, up from $1.8 million in 2020 and $1.2 million in 2019.

“It’s a trend that’s going to carry much beyond the pandemic,” Solan says. “It’s going to be a trigger point, if you will, to kick off the return to vintage.”

9/17/21 4:00 PM

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