Crain's Chicago Business

Peoples Gas’ pipe-palooza costs keep rising

Chicago’s natural gas utility still insists the multidecade, customer-funded project will cost $8 billion

BY STEVE DANIELS

Peoples Gas appears all but certain to exceed its latest cost estimate and timeline for a massive overhaul of Chicago’s underground natural gas pipes, a project that’s already billions over budget and years behind schedule.

Underway for more than a decade, the project has seen its ultimate projected cost mushroom to $8 billion from $2 billion initially and then $4.5 billion. Based on progress and costs to date, Peoples will shell out nearly $11 billion to

complete the job, not $8 bil lion. Peoples will pass that cost along to customers in their bills, plus a profit.

Additionally, the utility won’t finish the work until about 2048 at its present pace, well beyond the 2040 goal Peoples still as sures regulators it will meet. That’s 10 years past the original 2030 completion target.

Peoples has yet to hit its an nual pipe replacement target for any year since its 2015 ac quisition by Milwaukee-based WEC Energy Group.

A year in, Dave Kimbell puts his stamp on Ulta

As

BY ALLY MAROTTI

When Dave Kimbell succeeded Mary Dillon as CEO of Ulta Beauty a year ago, he faced the poten tially daunting prospects of following a Wall Street favorite and crafting a growth strategy for uncer tain times.

Still, the timing was good. COVID-19 restrictions that smoth ered retailing during 2020 were largely gone, and the Boling brook-based cosmetics chain

snapped back from its worst slump ever. A run of six straight 20%-plus quarterly sales increas es since early 2021 have lifted revenues past pre-pandemic levels.

“ is has been the best year of my career by far,” Kimbell says. “So many factors came together for us to have a strong year.”

But as the increases slow, Kim bell’s longer-term challenges are

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JOE CAHILL: Trott ’s offer for Weber boxes

slows,

Dave Kimbell

e Workers’ Rights Amendment is a step too far

Forthose of us who believe labor unions have brought bene ts to workers they could not have won individual ly—but who also believe the an swer to extremism is not more extremism—a big question on the Nov. 8 general election bal lot poses a real dilemma.

e question, known as the proposed Workers’ Rights Amendment, is whether to change the Illinois Constitu tion by adding a new section banning passage of any law that infringes on “the fundamental right to organize and bargain collectively through representa tives of (workers’) own choosing for the purpose of negotiating wages, hours, and working conditions, and to protect their economic welfare at work.”

Proponents say the intent is clear: to guarantee the right to bargain as a group with employ ers. Opponents agree the intent is clear: in their view, to create special protections for one group that risk the state’s econo my and budget. Both sides are spending millions. Who’s right?

I am beyond sympathetic with labor’s desire to protect itself while it can against the emergence of an Illinois version of Scott Walker.

You remember Walker, the take-no-prisoners former Wisconsin governor who, thanks to one election win and a gerrymandered legislative map, pretty much put labor out of business in representing state and other public-sector workers north of the Illinois border. As GOP hardliners cheered, Walker pushed through bills limiting contract negotiations over wages, banning the deduction of union dues from paychecks and requiring unions to be recerti ed by members as their bargaining agent every 12 months.

e result years later: Membership in Wisconsin public unions has plummeted 70%. With that big Democratic weapon hobbled—but corpora tions and business o cials like shipping mogul Dick Uihlein still free to contribute as they want to friendly pols—a state that is pretty much evenly split politically has a House and Senate that approach two-thirds Republican.

Unions don’t want that here. Nor do they want the right-towork laws banning union shops that have passed in Wiscon sin and other states lately. So they’re pushing the proposed

amendment arguing, with some facts behind them, that union ized workers are paid better and treated better than those without such representation.

But the situation here in Illinois is more complicated than that.

Part of the problem is that the “economic welfare” language is, according to some legal observers, vague and open to loose interpretation. For in stance, would that language set the stage for a legal challenge to Illinois’ property tax cap laws, on the grounds that they restrict the ability of, say, local school boards to o er workers the pay hikes they deserve?

Advocates say no, that other parts of the Illinois Constitution clearly leave all tax questions to lawmakers. But few thought the state’s voluntary move to pay for retirees’ health was a binding commitment—until the Illinois Supreme Court abruptly ruled a few years ago that it is.

Another argument is that the “welfare” language would allow groups such as the Chica go Teachers Union to demand more city spending on things such as a ordable housing in order to prevent a strike. Amendment proponents say the “welfare” language is clearly tied to “at work.” But CTU and its attorneys have made it clear they will use every lever at their command to create a welfare state on steroids in pursuit of racial equity.

en there’s the argument that the state’s reputation as a bad place to locate a business and create jobs doesn’t need this precedent-setting amend ment.

However, my biggest con cern is that advocates aren’t trying to pass a law, which can be changed next time power in Spring eld changes par ty hands, but rather amend the Constitution, which can be altered only via a timeconsuming, laborious process.

On that score, it’s worth noting that Illinois already had its version of Scott Walker. His name was Bruce Rauner. He now lives somewhere in Florida. So if labor and its friends suc ceeded in repelling extremism through the normal electoral process, why do they have to try to prevent a repeat by the extreme step of amending the Constitution?

at’s my thinking, folks. Sometimes, you can just go too far.

ComEd gets $50 million rate hike approved, and that’s just the start

Regulators will also consider a separate $199M rate hike request

BY STEVE DANIELS

Commonwealth Edison will hike rates by $50 million next year to pay for its energy-e ciency programs.

e Illinois Commerce Com mission approved the new rates unanimously Oct. 27 without dis cussion.

As is the case in the e ciencyrelated increase the ICC green lighted last year, most of the cost hike will be shouldered by com mercial and industrial customers.

ey will cover more than $35 mil lion of the increase, while house holds will absorb the remainder.

e average residential custom er will see their electric bill rise by 25 cents a month, ComEd repre sentatives said. It’s more di cult to assess how much of an increase each business will see because of the di erence in size and usage among companies.

is increase is the rst and smallest of two rate requests reg ulators are expected to approve this year. ComEd led earlier this year for a $199 million general rate hike, which it said would cost the average household another $2.20 per month.

Commissioners will have little choice but to say yes to that, since it’s the nal submission ComEd will make under the controver sial annual formula rate-setting system, enacted in 2011 and ex piring after this year. Former House Speaker Michael Madigan’s shepherding of that law—a gen

erous rate regime, giving the ICC little say each year on ComEd’s spending and no say on its au thorized returns—played a star ring role in the elaborate bribery and in uence-peddling scheme ComEd admitted to in 2020.

e energy e ciency increas es are essentially automatic each year as well. Another statute, the 2016 Future Energy Jobs Act, al lowed ComEd for the rst time to pro t on its energy-savings programs. Previously, the costs of ComEd’s e ciency programs were passed through to ratepayers at cost.

at law, too, was enacted during the period ComEd was nancing no-work jobs and con tracts for associates of Madigan.

e ComEd scandal played a major role in the indictment of Madigan, who has pleaded not guilty. Also under indictment is former ComEd CEO Anne Pramaggiore, who is scheduled to face trial next spring and also has pleaded not guilty.

e state’s most recent major energy law, Gov. J.B. Pritzker’s Cli mate & Equitable Jobs Act, doubled

down on the energy e ciency ap proach in the Future Energy Jobs Act. Enacted a little over a year ago, Pritzker’s law authorizes ComEd to hike its budget for e ciency pro grams by $75 million a year.

Future e ciency-related rate hikes are likely to be steeper than the $50 million slated for next year, since ComEd will seek in the fu ture to recover the higher expen ditures and add a pro t to them.

ComEd executives emphasize that under state law energy e ciency programs must provide nancial bene ts to ratepayers that are greater than their costs. But the programs bene t only those who take the time to research them and apply for aid in, say, weather izing their homes or businesses or installing new eco-friendly equip ment.

ComEd divides the costs among residential and business custom ers based on the types of pro grams it’s running. More of them are geared to commercial users rather than households these days, which is why the e ciencyrelated increases fall more heavily on businesses.

Mortgage payments soar at trophy properties

Floating-rate

BY ALBY GALLUN

What do the deep-pocketed

common

Tower

Oak

a

e monthly mortgage payment for the Willis Tower, the city’s tallest skyscraper, has jumped 172% since January. At Oakbrook Center, one of the biggest local malls, monthly payments have nearly doubled this year.

Blackstone Group, owner of the Willis Tower, and Brook eld Prop erties, which owns Oakbrook Center, are experiencing the downside of nancing properties with variable-interest rate mortgages. After en joying more than two years of rock-bottom interest rates, they’re now watching their

the month, as the Federal

ation

Avant sees future in credit cards

BY STEVE DANIELS

Avant is best known for mak ing high-rate loans to strapped consumers over the internet. But credit cards now are the Chicago-based company’s future more than the online personal lending machine that made it a unicorn seven years ago.

Avant is quieter these days than when it stampeded onto the Chicago startup scene near ly a decade ago. But the company’s credit card business, launched in 2017 and trans formed into its flagship product beginning in mid-2020, is grow ing fast.

It’s also raising questions about the high interest rates

cardholders are paying and the relatively large number who are defaulting on their card loans and further tarnishing credit ratings that already are bruised.

Avant had 1.2 million card holders as of June 30, up 50% from 800,000 at the start of the year. e rm issued 550,000 cards last year.

Of roughly $1.5 billion in loans on Avant’s books, half

are credit card loans, CEO Matt Bochenek says in an interview. Avant packaged $150 million of its credit card loans into se curities sold to investors a little over a year ago. at securitiza tion, rated last month by Kroll Bond Rating Agency, o ers in sights into Avant’s credit card business model.

Trott’s insider squeeze at Weber

Webergrills are known for durability, providing years of reliable perfor mance for backyard burger flip pers.

Weber’s tenure as a publicly traded company, by contrast, may not last much longer than a single grilling season.

Byron Trott, the billionaire investor who controls a majority of Weber stock, has o ered to buy out minority shareholders at $6.25 per share. at’s a 24% premium to Weber’s closing price before the o er was disclosed, but a 68% drop from $19.55 at the close of trading on the day the Palatinebased company went public last August.

Weber’s IPO looked like another success story for Trott, a former Goldman Sachs poohbah once known as Warren Bu ett’s favorite investment banker. His rm, Chicago’s BDT Capital Partners, specializes in helping wealthy families cash out of privately owned companies. It acquired a controlling stake in Weber from the founding Stephen family in 2011.

“ is investment is a perfect example of our business model— to partner and invest alongside best-in-class and enduring family businesses with strong manage ment teams and loyal customers,” Trott said at the time.

Weber’s performance has been less than perfect since the IPO. After soaring in 2020 when COVID-19 lockdowns boosted outdoor eating, demand for grills slumped. In ation and supply chain bottlenecks increased pres sure on pro t margins. Weber’s sales fell to $1.4 billion in the nine months ended June 30, down 15.5% from the year-earlier period. e company swung to a loss of $178 million from a pro t of $92 million.

To stem the bleeding, Weber suspended its dividend, an nounced a cost-cutting campaign that will include job cuts and named a new CEO. Still, Weber is burning through cash and piling up debt. As of June 30, the com pany had $40 million in cash and its debt had climbed 28% to $1.28 billion since September 2021.

Wells Fargo estimates Weber’s net leverage ratio at 9 times earnings, a worrisome level that could breach loan covenants.

With interest rates rising and lenders backing away from deals, it’s a bad time to seek forbearance from banks. at’s where Trott might come in. Bloomberg report ed Oct. 11 that BDT was discuss ing a possible debt nancing with Weber.

Now it appears Trott sees op portunity in Weber’s beaten-down stock. Despite the company’s woes, BDT is o ering to buy the

Weber shares it doesn’t already control. If Trott wants to buy more Weber shares, you can bet he thinks the company eventually will be worth a lot more than he’s o ering.

But the $6.25 o er represents a signi cant loss for public share holders who bought into Weber any time between August 2021 and early May. As they try to evaluate the fairness of his price, they’d surely like to know if anoth er buyer would pay more.

ey’ll likely never know. Trott has e ectively precluded a competing o er. BDT’s o er letter warns that it would vote its majority shareholdings against “any alternative sale, merger or similar transaction involving the Company.”

Would another bidder be interested? Maybe. StreetInsider reported Oct. 11 that a privateequity rm approached Weber about a takeover.

In another apparent prod to public shareholders mulling the buyout o er, BDT’s letter high lights the risk that “the company’s current leverage position is un sustainable and that the company may be unable to e ect a recapi talization.”

To Trott’s credit, the letter says BDT’s willingness to lend Weber money isn’t contingent on accep tance of the buyout o er. It adds that BDT won’t proceed with the buyout unless it’s approved by a committee of independent Weber directors.

Still, BDT is using its majority voting power to the disadvantage of public shareholders by boxing out other potential bids. BDT’s majority is bolstered by mech anisms that canny insiders use to retain control after taking a company public. Most notable is a dual-class stock structure that gives BDT far more votes than outside investors.

Critics say such structures separate corporate control from economic interest in a company, while insulating insiders from accountability and allowing them to take advantage of outside investors.

Yet supposedly sophisticated investors like mutual funds and pension plans keep lining up for second-class stock, likely drawn in many cases by the reputations of promoters like Trott. ey pay little heed to warnings like the passage in Weber’s IPO prospec tus cautioning potential investors that insiders could engage in “actions that are not in your best interests.”

Weber’s stumbles as a public company may make some inves tors more skeptical of Trott’s next deal. His buyout proposal should make them more skeptical of any IPO o ering second-class shares.

“IT WILL BE PAINFUL. OWNERS WILL BE LESS PROFITABLE. IT DOESN’T MEAN THEY WON’T BE PROFITABLE.”

David Hendrickson, mortgage broker and senior managing director in the Chicago o ce of Walker & Dunlop

The Willis Tower

Where the COVID pandemic hit Illinois jobs the hardest

BY GREG HINZ

e COVID-19 pandemic had sharply di erent e ects on Illinois workers, depending on their age, educational background, type of job they held and whether they live in the Chicago area or downstate.

at’s the bottom line of a new study by the University of Illinois that for the rst time breaks down who really got hurt and who just su ered an incidental blow when the state lost half a million jobs in short order as the pandemic hit—and that gives some hints as to growing sectors the state ought to nurture now.

According to research by the Illinois Economic Policy Insti tute and the Project for Middle Class Renewal at the Universi ty of Illinois at Urbana-Cham paign, total employment in the state dropped 498,759 between 2019 and 2021, a decline of 8.1%.

The state recovered half of that by 2021 and another 170,000 so far this year, leaving it about 80,000 (1%) short of its pre-pan demic peak.

e report focuses on what hap pened between 2019 and 2021. It chooses that period because it is the last for which data is available from the U.S. Census Bureau’s

American Community Survey.

Numerically, the biggest drop in jobs was in the o ce and ad ministrative support category, down 160,000, or 22%. But on a percentage basis, food service and preparation and personal care and services were hit much higher, down 33% and 42%, re spectively. Leisure and hos pitality su ered a milder 19% drop, with wholesale/retail trade and transportation each gain ing 81,000 jobs as consumers switched to internet purchases from shopping in person.

ose with a high school edu cation or less su ered the biggest loss of jobs in that two-year peri od, 18%, the study reports. But the state actually added 125,000 jobs, or 7%, among those with a bache lor’s degree or higher.

Employment among whites dropped just 4%, markedly less than the gures for Blacks or Lati nos, down 6% and 7%, respective ly. Employment among workers of Asian descent actually rose 9% over the two-year period, a gain of 39,000 jobs. Some of that may be due to population shifts, but Frank Manzo, executive director of the Illinois Economic Policy Institute and the report’s co-author, said the main reason is that Asians are

more prone to work remotely than other groups.

One particularly striking nd ing: e two-year employment drop downstate was almost triple that of the Chicago metropolitan area, 11% versus 4%.

Another point of interest from Manzo: While Illinois’ job recovery still lags that of the nation, which now has passed its pre-pandemic total, the state’s 64.5% labor-force

Apartment, hotel project OK’d for near casino site

BY JUSTIN LAURENCE AND DANNY ECKER

A proli c developer’s plans to build a slew of housing units and a hotel near the planned Chicago casino have been approved by the City Council.

e vote represents the nal zoning hurdle for Shapack Part ners, which cleared the Chicago Plan Commission and Zoning Committee earlier this month.

e approvals Oct. 26 would allow founder and CEO Je Shapack to build over 2,200 apart ments, but he has said he plans only about 1,400. He has branded the collection of projects NoMa (North of Market).

Shapack’s original zoning ap plications aimed to transform a property along Grand Avenue between Desplaines Street and Union Avenue with a 1,110-unit

apartment building rising 600 feet and a 141-room hotel. A Shapack venture paid $25 million for the site, home to a shuttered Salvation Army family store and donation center.

Separately, Shapack propos es to redevelop a trio of sites southwest of the Salvation Army property near the intersection of Milwaukee and Union avenues and Hubbard Street. e origi nal applications included three buildings on three parcels total ing 1,159 residential units, as well as ground- oor retail space and a small amount of o ce space. However, Shapack now plans only 1,400 apartments.

e collection of projects amounts to one of the most ambi tious bets on a downtown apart ment market that has roared back from early COVID-19 pandemic devastation.

It also piles onto a mix of huge apartment projects near the Chi cago Tribune’s Freedom Center, which is poised to be redeveloped into a $1.7 billion Bally’s casino, hotel and entertainment venue if the gambling giant can win nal approval from the Illinois Gaming Board and Chicago Plan Com mission for the project.

If the Shapack projects come together as planned, it would fur ther establish the area between Fulton Market and the North Branch of the Chicago River as a burgeoning new downtown neighborhood.

A source familiar with the new Shapack plan said the hotel would be developed before the apartment buildings, similar to the way Shapack began his Fulton Market work with Soho House to help generate foot tra c in the neighborhood.

participation rate is back to where it was while the nation’s still is lower than it was prepandemic: 62.3% vs. 63.4%.

What’s the takeaway from this for the future?

“Ultimately, the data reveals that occupations o ering high er levels of job quality, access to modern technology and infra structure, and those that allow re mote or hybrid work options have

been the quickest to recover,” said co-author Robert Bruno, a U of I professor and head of the Project for Middle Class Renewal.

Illinois also would be wise to push investments in broadband, promote the state as a hub for e-commerce and warehousing, in vest in higher education, and work hard to rebuild Chicago’s position as a travel and tourism hub, the study says.

Raoul, peers reviewing Kroger-Albertsons deal

Attorneys general hope to ensure merger won’t hurt shoppers and workers

BY ALLY MAROTTI

Illinois Attorney General Kwame Raoul and counterparts from other states are reviewing the proposed Kroger-Albertsons deal.

Raoul was among a half-doz en attorneys general from several states and the District of Columbia who signed a letter sent to the CEOs of Mariano’s parent Kroger and Jew el-Osco owner Albertsons on Oct. 26. e letter said they are “dedicat ed to ensuring” the proposed merg er “does not result in higher prices for consumers, suppressed wages for workers, or other anticompeti tive e ects.”

“If the proposed merger has anticompetitive e ects, nearly ev ery corner of this country will feel them,” the letter said.

e letter also asked Albertsons to delay payment of the up to $4 bil lion dividend it promised to share holders until the attorneys general have completed their review and the deal is done. If the payout occurs pre-emptively and the deal does not go through, Albertsons would be at a competitive disadvantage.

Albertsons said in a statement that its planned combination with Kroger would provide “signi cant bene ts” to customers and em ployees, and “o ers a compelling alternative to larger and non-union competitors.”

e move by the attorneys gener al came one day after U.S. Sens. Eliz abeth Warren and Bernie Sanders joined Rep. Jan Schakowsky, D-Chi cago, in sending a letter to the Fed eral Trade Commission urging it to oppose the $24.6 billion deal.

Experts had predicted the deal would face backlash from politi cians and strict scrutiny from federal regulators, given antitrust concerns and the in ationary price hikes that have hit grocery aisles hard.

Kroger and Albertsons an nounced their plan this month. A combined company would operate almost 5,000 stores .

e grocery companies have said they plan to spin out up to 375 stores to fend o antitrust concerns. Experts also predict they will sell o or close additional locations in mar kets where they compete closely, such as Chicago.

Kroger owns the 44 Mariano’s in the Chicago area, plus about 10 Food 4 Less locations in Illinois.

Albertsons has 188 Jewel-Osco lo cations, most of which are in the Chicago area.

U of I study examines the pandemic’s impact on Illinois employment, with some surprising winners and losers

Army site from the north.

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BDT offers to take Weber private just a year after its IPO

BY STEVE DANIELS

Chicago nancier Byron Trott’s private-equity rm is o ering to take Weber private barely a year after leading a public o ering of shares in the Palatine-based grill maker’s stock.

BDT, which owns the majority of shares in Weber even after the initial public o ering in August 2021, proposed paying $6.25 a share for the remaining shares it doesn’t own. at would cost BDT $172 million, according to a letter dated Oct. 24 to Weber shareholders.

e o er represents a 24% premium to Weber’s Oct 24 closing price. But it’s a 55% haircut from the $14-per-share price investors paid when the stock went public last year.

Weber was a hot commodity during the pandemic when sales of outdoor grills rose as consumers were stuck at home and unable or unwilling to eat out. But the growth proved transitory, and the company has struggled in the past year.

Weber CEO Chris Scherzinger left the company in July. Chief Information O cer Alan Matula was tapped as interim CEO. Shares dropped on the news back then.

At the time, board Chair Kelly Rainko said, “We are taking decisive action to better position Weber to navigate historic macroeconomic challenges, including in ationary and supply chain pressures that are impacting consumer con dence, spending patterns, and margins.”

ose were expected to include job cuts.

For BDT, if the Weber board agrees to the o er, it will cement a substantial money-loser for investors in the IPO and be a black eye for a rm that otherwise has performed well for its investors. Trott has strong relationships with many of the country’s wealthiest families, including the Pritzkers.

A BDT spokeswoman declined to comment beyond BDT’s public lings.

BDT isn’t alone, however. Other private-equity rms that led public o erings of portfolio companies over the past 18 months also are making similar go-private o ers as banks sour on re nancing debt these companies have on their balance sheets.

“Our proposal o ers immediate liquidity to the company’s public stockholders, while eliminating the risks to the public stockholders in the current market and operating environment that the company’s current leverage position is unsustainable and that the company may be unable to e ect

a recapitalization,” BDT said in its letter.

Weber shares closed Oct. 25 at $6.56, above Trott’s o er, signaling that investors believe another acquirer might bid or that BDT will be pressured to raise the price.

at appears unlikely, according to one analyst.

“Per the o er, BDT noted that it is ‘only interested in acquiring the shares of the company that we do not currently own, and accordingly we have no interest in a disposition or sale of our holdings’ and ‘have no interest in participating

in an alternative change of control transaction involving the company,’ and ‘would not vote in favor of any alternative sale, merger, or similar transaction involving the company,’ ” Wells Fargo analyst Chris Carey wrote last week. “In our view, this is a ‘take it or leave it’ type o er and counterbids (from other entities) among other alternatives seem a low probability.”

Earlier this month, Trott announced a planned merger of his own rm with the New Yorkbased investment rm founded by technology industry mogul Michael Dell.

Most Chicago employers mandate in-office work at least weekly

humility in saying, ‘You know what? I trust my team to make the right decisions.’ ”

BY SOPHIE RODGERS

Most Chicago employers are requiring employees to return to the o ce on a weekly basis—but most companies without a mandate plan to keep it that way.

More than 6 in 10 employers surveyed by Crain’s reported that they are mandating employees come in at least once a week, citing collaboration and training as the top two reasons for this decision.

Here are some quick stats:

 Among employers that mandate weekly in-o ce attendance, 22.3% require employees to come in three days a week, 17.5% require twice a week and 16.9% require ve days a week, according to Crain’s survey.

 As of Oct. 19, the Chicago metro area had a 45% return-to-ofce rate based on keycard swipes compared to pre-pandemic levels, according to building security tech rm Kastle Systems. By comparison, New York had a 46.5% return rate and Los Angeles had a 46% return rate.

 CTA’s bus and rail ridership has plateaued at about half of pre-pandemic norms.

As for employers that do not

currently require weekly in-o ce attendance, a whopping 88% reported they have no plans to create such a mandate, according to Crain’s survey of 176 employers in the Chicago area.

Wireless service carrier U.S. Cellular, with about 1,300 local employees, has adopted a exible model that will stay in place for the foreseeable future, according to CEO Laurent erivel.

“I did not feel comfortable trying to establish a broad policy for the company that says you need to be in on Mondays, Wednesdays and Fridays,” erivel said, adding that employee attrition could rise if managers mandate workers, who maintained or even increased

productivity during the pandemic, come in two to three days a week. Instead, U.S. Cellular allows individual managers to determine when their teams come in but emphasizes that it should solely be for a purpose. “A reason isn’t because it’s a Tuesday or Friday. A reason is a speci c meeting,” erivel said. erivel practices what he preaches: e CEO requires his executive team only come into the o ce six days a month, aligning with particular team meetings.

“ e pandemic has required so much exibility, not just from leaders and companies, but the people,” erivel said. “I think CEOs need to have a little bit more

Other employers are keener on getting their workers back to the o ce. More than a quarter reported they would prefer for their employees to work from the o ce three times a week, 21% would prefer a full ve times a week, 20% would prefer twice a week and 15% have no preference.

Accounting rm Plante Moran has implemented a model called “workplace for your day.” On any given day, employees may decide for themselves where to work, whether that’s on-site with a client, in the o ce or at home, according to Chicago managing partner Tom Kinder.

“ e alternative ‘hybrid work’ approach being adopted by many companies is to mandate o ce work for two or three days a week. In our experience, people tend to dislike this—not because they don’t want to be in the o ce, but because they don’t like being ordered when to be there. Instead of rules, we rely on guidelines and trust,” Kinder said.

“As long as people are communicating with their managers, supervisors and team partners, then it’s working.”

As for employers that do mandate weekly in-o ce attendance, the most common days to come in are Tuesdays, Wednesdays and ursdays.

Crain’s survey also reveals that the most common incentives employers have added to encourage talent to come into the o ce are social events—such as happy hours—free meals and renovations to the o ce.

“INSTEAD OF RULES, WE RELY ON GUIDELINES AND TRUST.”

Tom Kinder, Plante Moran

erivel said that U.S. Cellular renovated the Chicago headquarters to feature more collaborative spaces for employees. “We had to create more collaboration space because now, employees will spend a higher percentage of time doing team-related activities in the o ce,” he said.

Kinder noted that Plante Moran’s current model is more of an art than a science. “You’re a professional. If you need to be in the o ce, be in the o ce. If you don’t, you can work from home,” he said.

As for now, erivel said that “once our teams are no longer having a purposeful interaction, they can work from wherever they want to. . . . ey can do it from home, from a co ee shop or even Aruba.”

Crain’s survey reveals latest return-to-o ce insights

Byron Trott’s rm, which is o ering $172M, still retains a majority of Weber shares after leading its IPO in 2021

Weber was a hot commodity during the pandemic when sales of outdoor grills rose as consumers were stuck at home. But the growth proved transitory.

A new 58-mile bike trail will connect Chicago to Michigan

The Marquette Greenway Trail Project will stretch from Calumet Park on the city’s Southeast Side to New Bu alo

BY JACK GRIEVE

From Illinois to Indiana to Michigan, bikers and pedestrians will soon be able to travel across state lines on a scenic, nonmo torized greenway along the south shore of Lake Michigan.

e Marquette Greenway Trail Project will stretch 58 miles and connect Calumet Park on the city’s Southeast Side to downtown New Bu alo, Mich. e project is funded in large part by a $17.8 million grant from the U.S. De partment of Transportation to the Northwest Indiana Regional Plan ning Commission, in addition to millions of dollars in other feder al, state, local and private grants.

Construction on the Illinois strip is already complete.

e Indiana section, which makes up the bulk of the trail, is almost fully funded with the ex ception of one mile-long strip between Burns Harbor and Ches terton, which project managers hope to secure state funding for later this year. Work is under way on the Indiana stretch and expected to be completed at the

end of 2026 or beginning of 2027.

In Michigan, the project has secured $5.35 million of the addi tional $5.6 million needed for the 4-mile leg between the MichiganIndiana border and downtown New Bu alo. Volunteers are kicking o their nal fundraising stretch and asking for community donations to help acquire the last $250,000, starting with a fund raising event at Bentwood Tavern in New Bu alo on Nov. 3.

“So many years of hard work are nally coming to fruition, and we are looking forward to the community rallying around this last, important nancial e ort to complete the trail to New Bu alo,” said fundraising chair Gary Wood. “Our dream is to one day have a nonmotorized trail that goes all the way to the Mackinac Bridge.”

Construction in Michigan is set to take place in two phases. Phase 1, running from downtown New Bu alo to Grand Beach, is set to begin in spring 2023 and conclude by the end of the year. Phase 2 stretches from Grand Beach to the Indiana state border and is expect ed to wrap up by early 2025.

You’re paying more for weed in Illinois

BY JOHN PLETZ

Weed prices are beginning to fall in Illinois, but they’re holding up better than in most states.

Oversupply is pounding canna bis markets from Massachusetts to Michigan to California, and there are signs that some con sumers have been trading down because of in ation.

Retail marijuana prices in Illinois have been among the highest in the nation because of a relatively limited number of stores since rec reational weed became legal nearly three years ago. But retail weed prices are down 15% so far this year, Cantor Fitzgerald analyst Pablo Zuanic writes in a note to clients.

Although that’s steeper than the 13% decline in Pennsylvania and 12% drop in Florida, Illinois prices are still much higher: It costs $15.69 per gram on average in Illinois for smokable cannabis “ ower,” which is 16% more than Pennsylvania and 43% higher than Florida, Zuanic says. Prices here are 62% higher than in Massachusetts.

Pro ts in Illinois also remain higher than elsewhere, with retail ers here selling marijuana for 48% more than they pay to buy it from growers in the state. at works out to a gross pro t of about $7.62 per gram in Illinois, compared with $4.62 in Massachusetts and $1.84 in

Michigan, Cantor Fitzgerald says.

However, the spread between wholesale and retail prices in Illi nois was 20% higher at the begin ning the year, which is bad news for the holders of 185 new retail licens es who have yet to open their doors. Capital is drying up, the money available is now more expensive— and the margins are dropping.

at said, Illinois remains one of the best markets for selling legal weed because licenses are limited. e nation’s sixth-most populous state has just 110 retail licenses. Zuanic estimates that even if all 185 new stores open, Illinois will have fewer stores per capita than many states.

For growers—such as Chicagobased Cresco, Green umb In dustries, Verano and Pharma Cann—prices are holding up even better. Wholesale prices are down about 7% from a year ago in Illinois, compared with a 35% drop in Mas sachusetts and 55% in Michigan, Cantor Fitzgerald estimates.

e data illustrate the disparity in approaches that Illinois and Michigan took to legalizing mar ijuana. Michigan has allowed far more licenses to growers and retail ers. A year ago, the two states had roughly equal recreational sales. Now Michigan’s total sales are 49% higher: $195 million in September vs. Illinois’ $130.7 million.

Here’s why retail cannabis prices—and pro ts—in Illinois have been among the highest in the nation

Medical offices, skybridge planned in Streeterville

BY DANNY ECKER

Northwestern Memorial Health care plans to turn two oors of the Hyatt Centric Chicago Magni cent Mile hotel in Streeterville into medical o ce space and connect the property to its hospital campus with a skybridge.

In a proposal that highlights the strong demand for outpa tient medical clinic space in the neighborhood, the hospital sys tem aims to convert the fth and sixth oors of the hotel at 633 N. St. Clair St. into roughly 41,000 square feet of medical o ces, ac cording to a zoning application

connecting the hotel’s second oor to Northwestern’s Galter Pavilion outpatient care center. e plan stands to add to a roughly 13 million-square-foot supply of health care real estate in Streeterville that has proven to be insu cient to handle demand in the neighborhood. NMHC and neighboring Lurie Children’s Hospital have been snapping up real estate for several years to ex pand their administrative o ces and as more medical services are pushed out of hospital settings and into outpatient facilities.

NMHC signaled the Hyatt would be its next expansion target when it bought the hotel.

set to be introduced to the City Council this week. NMHC, which paid $67.5 million for the 17-story hotel earlier this year, aims to re move 74 rooms from the hotel under the plan and build the pe destrian bridge over Erie Street

e property today o ers patients and their fami lies a place to stay on the campus while receiving care and houses confer ences and events, but medical o ce demand in the area is soaring while hotel performance downtown has been slow to recover from the COVID-19 pandemic.

e Hyatt Centric would be reduced to 345 rooms if NMHC completes the project, accord ing to the application. Elevators

in the hotel would have to be recon gured as part of the proj ect, which would require the re moval of a couple rooms on the building’s seventh oor. e top 11 oors in the 28-story building are separately owned and house o ce space, including the head quarters of the American College of Surgeons.

e 15-foot-wide pedestrian bridge would cross Erie on a diag onal, and NMHC will seek a zon ing change to permit its construc tion, according to the application.

e hospital system needs the City Council to sign o on the pro posed conversion because the ho tel’s zoning status does not allow medical services, the application said.

A spokesman for NMHC did not respond to a request for comment.

Other commercial property owners in Streeterville are hop ing to capitalize on surging de mand for health care real es tate in the neighborhood. In the highest-pro le case, the Chicago real estate investor that owns the 900,000-square-foot o ce por tion of the tower at 875 N. Mich igan Ave.—formerly known as the John Hancock Center—is now marketing several oors in the building as the Mag Mile Medical Pavilion with clinical o ce space that it foresees accounting for half or more of the building’s o ce block in the next several years.

e 11-hospital NMHC system bought the leasehold interest in

the 23-year-old Hyatt Centric ear lier this year—its rst-ever pur chase of a traditional hotel—from a venture of Irvine, Calif.-based real estate investment trust Sun stone Hotel Investors. e deal was part of a broader strategy by Sunstone to exit the Chicago ho tel market entirely, one reason NMHC paid a relatively low sum for the property.

Sunstone bought the leasehold interest in the hotel—the Wynd ham Chicago at the time—in 2012 for more than $88 million, ac cording to Cook County property records. Sunstone rebranded it as Hyatt Centric under a franchise agreement that expires in 2039, according to Sunstone regulatory lings.

Companies knowingly sold harmful hair relaxers, suit says

Chicago law rm DiCello Levitt accuses L’Oréal USA and Namaste Laboratories, a Chicago-based beauty company, of selling cancer-causing products

BY BRANDON DUPRÉ

Chicago law firm DiCello Levitt filed a lawsuit in federal court in Chicago on Oct. 21 al leging be auty-care companies— including L’Oréal USA and Namaste Laboratories, a Chica go-based company—knowingly sold hair relaxers to women de spite knowing they were harmful and could cause uterine cancer.

e mass tort suit alleges that plainti Jennifer Mitchell’s di agnosis of uterine cancer was the result of prolonged expo sure to phthalates and other endocrine-disrupting chemi cals found in these hair prod ucts. Phthalates are chemical compounds used in a variety of cosmetics and personal care products, which, the lawsuit says, could have “negative long-term impacts on the success of preg nancy, child growth and devel opment, and reproductive sys tems in both young children and

adolescents.”

e suit, which names as de fendants a total of ve compa nies, says Black women have been disproportionately targeted and harmed by hair relaxers and the practices of these compa nies. Also named in the lawsuit is Soft Sheen, a company founded in Chicago in 1964 that was sold to French cosmetics giant L’Oreal in 1998.

“ is is a cultural thing born out of slavery,” Diandra “Fu” Debrosse Zimmermann, a DiCello Levitt partner repre senting the plainti along with co-founding partner Adam Levitt, said in an interview. “Law prohibited the showing of hair of African descent amongst en slaved people, leading to a mas sive cosmetic industry focused on helping women relax their hair with chemicals that compa nies knew to be extraordinarily toxic and dangerous, and ulti mately has led to cancer in what

A lawsuit cites L’Oréal products among those that market hair relaxers to African American customers.

we imagined to be in the tens or hundreds of thousands of wom en of African descent.” e companies named in the suit did not respond to requests

for comment.

e lawsuit alleges the de fendants violated state statutes and failed to protect consum ers against “deceptive, fraudu

lent and unconscionable trade and business practices and false adver tising by knowingly and falsely” selling harmful products.

“Today as we sit here, there are women and children con tinuing to use hair relaxers,” said Zimmermann. “And we want to hold them accountable and say, ‘Look, you’ve put pro ts over people and sold a product that is extraordinarily toxic, dangerous and a carcinogen.’ ”

e suit follows a recent study showing women who use chem ical hair straighteners could have a higher risk of developing uter ine cancer than women who have never used the products. e ndings followed nearly 34,000 U.S. women for more than a de cade.

Uterine cancer is one of the most common gynecologic can cers with incidence and mortality rates increasing in the United States in the past two decades, with more than 65,950 new cas es and 12,550 deaths expected in 2022, the study says. e nd ings showed frequent use of hair straighteners more than doubled the risk of developing uterine cancer for women in the study.

Northwestern Memorial Healthcare aims to convert two oors of the Hyatt Centric hotel it recently purchased

The Hyatt Centric Chicago Magni cent Mile occupies the rst 17 oors of the building at 633 N. St. Clair St. in Streeterville.

THE PROPOSAL HIGHLIGHTS THE STRONG DEMAND FOR OUTPATIENT MEDICAL CLINIC SPACE IN THE NEIGHBORHOOD.

Using technology to help feed the hungry

BY CORLI JAY

e Greater Chicago Food De pository partnered with the ierer Family Foundation, a Chicagobased technology organization, to develop Vivery, which is now available for food banks and pan tries across the U.S. e foundation aims to help nonpro ts increase their impact through technology.

e development of the plat form is meant to address the ab sence of an e ective online pres ence for food pantries and food banks, as many of their websites are outdated and limited. Since it started using Vivery in summer 2021, the Greater Chicago Food Depository has reported an in crease in how many people have accessed the bank. It also has im proved its food nder map, added search lters and a Spanishlanguage search option, and im proved analytics, a ierer Foun dation press release said.

Vivery was launched in Chicago in summer 2021. According to the press release from the foundation, Vivery helps “communities easily nd and access the right food, so cial programs and services nearby in the ongoing battle against food insecurity.” e Greater Chicago Food Depository uses the platform to increase access to the more than 300 food pantries it supports. e

ierer Family Foundation is cov ering the cost for the early adopters in its home state of Illinois; the ser vice now is available to food banks nationwide at various prices.

Vivery was developed in 2020, with the foundation working with the Greater Chicago Food De pository to address the growing number of those seeking food as sistance. According to data from Feeding America, 35 million peo ple across the U.S. sought food as sistance from food pantries before the COVID-19 pandemic, with the number jumping to 60 million at the height of COVID in 2020. “Be tween the lasting e ects of the pan demic, in ation, and rising food prices, the latest gure is 53 mil lion, which is still a shocking 51% higher than pre-pandemic levels,” a press release from Viviery said.

“By centering on the end user experience and having an inten tional focus on analytics, we can

be more responsive to the needs of our community,” said Andy Seikel, head of technology and transfor mation for the Greater Chicago Food Depository in an emailed statement. “After seeing the im provements rst-hand, Vivery is that rare combination of using tech for good that is well-positioned to help food banks and pantries really move the needle to end hunger nationwide.”

According to a 2022 status re port released by the Greater Chi cago Food Depository, 16% of households in the Chicago area faced food insecurity in early 2022. at number was higher for house holds with children—22% faced hunger. Black Chicagoans with children saw the highest percent age of food insecurity, with a total of 32%, compared to 16% for white households with children. Over the past six months, the Greater Chica go Food Depository’s network of food pantry and grocery-style pro grams served an average of 347,584 people a month.

“Vivery was built on the vision to help people thrive and live their best lives,” Nasrin ierer, co-founder of the ierer Family Foundation, said in the press re lease. “People seeking food as sistance have unique needs and should be supported as such. With our digital tools for food banks and pantries, people can now narrow or expand their search with several lters beyond just location, and food resources can interact more e ectively with their communities through text messaging and a bet ter online presence.”

e new platform centers the user experience to simplify the process for those looking for assis tance. Filters on the website can be used to help people with speci c needs, such as families looking for centers that give food as well as diapers, those seeking a hot meal instead of groceries, or people who can speak only Spanish.

e platform also aims to con nect people with resource provid ers by providing hours of opera tion, establishing text message alerts for the public and provid ing data feedback to organiza tions to help them better under stand gaps and ways to improve services.

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Volunteers pack boxes of food at the Greater Chicago Food Depository.

Chicago Food Depository and Thierer Family Foundation have developed a tool to assist food banks

KENNETH

Vote no on the Workers’ Rights Amendment

When Gov. J.B. Pritzker visited Crain’s newsroom earlier this month to make his case for re-election, he cited what he viewed as the two biggest challenges that have hurt Illinois’ economy and un dercut its competitiveness in the stateby-state derby for corporate investment: First, the perception that Illinois has for years been a fiscal wreck, thus creating an unstable and unpredictable tax en vironment for companies that choose to operate here. Second, the perception that Chicago is a cesspool of crime.

Though Pritzker didn’t list it, there’s a third impediment—one the governor was eager to back away from in our Oct. 12 conversation. It’s the perception that labor runs the show in Illinois, making it costlier to do business here and nearly impossible to solve the biggest budget ary burden we face as a state—namely, the unfunded obligation of about $130 billion that every man, woman and child in this state owes to our public employee pension systems.

And that’s why passing the Workers’ Rights Amendment on the Nov. 8 general election ballot would be a major mistake for Illinois.

The ballot question asks whether Illi nois should amend its Constitution by adding a new section that would ban the passage of any law that infringes on “the fundamental right to organize and bar gain collectively through representatives of (workers’) own choosing for the pur pose of negotiating wages, hours, and working conditions, and to protect their economic welfare at work.” It will be added to the state Constitution if it wins three-fifths of votes cast on the measure, or a majority of all votes in the November

election.

As Crain’s business columnist Joe Ca hill pointed out on Oct. 3, if the WRA passes, Illinois will stand out for giving broader constitutional protections to or ganized labor than any other state. The amendment bars any legislation that in

terferes with unions’ bargaining rights, and—going further than any of the handful of states that constitutionally protect collective bargaining—explicitly prohibits “right-to-work laws” like those recently adopted by neighboring states.

As Cahill argues, provisions like the

YOUR VIEW

WRA, designed to protect clout-heavy special interests, can harm the state as a whole. The Illinois Constitution’s pen sion-protection clause, for instance, bars any diminution of public employee pen sions, language that has hobbled more than one effort to get our pension crisis under control. Similarly, a clause that bans the state from taxing higher-in come households at higher rates, Cahill notes, means Illinois can’t adopt the progressive rate structures that allow the federal government to raise needed rev enue without overburdening those who can least afford it.

Constitutions are supposed to delin eate the powers of government and es tablish fundamental rights that belong to everyone—like freedom of speech and religion. A pension-protection clause, a ban on progressive tax rates, a right to unionize—these are policy questions that should be decided by elected leg islators responding to the will of the people and the state’s changing circum stances. They have no place in a state’s constitution.

But beyond that foundational legal argument, there’s a practical matter at issue. Passing the WRA would showcase expanding union power in a state al ready considered a bastion of organized labor. As corporate headquarters exit Il linois and important players in up-andcoming industries like electric vehicle manufacturing bypass Illinois for other states, an anti-business message is hard ly a selling point for the Land of Lincoln. In fact, it’s the very last thing this state needs. Bestowing special constitutional status on unions would give companies one more reason to avoid Illinois.

Social support system key to SAFE-T Act’s success

In all the dialogue about cash bail ending on Jan. 1, we feel the fear about crime in a city that’s had enough. But we’re not talking enough about the underlying issues that have fueled violence and poverty in our city for decades. Address ing these root causes is a guid ing light for public safety.

The key to breaking the cycle of arrest-jail-repeat is linking people with services that pro vide affordable housing and employment, while also treat ing addiction, mental health issues, medical problems and other social needs.

That creates structure. And structure creates safety.

Because we’re serious about safety for all, we will provide these services to indi

Write us: Crain’s

Crain’s

include

viduals who want them after they are arrested and pre sumed innocent while they await trial.

I understand if you’re skeptical. Maybe you al ready disagree. I grew up in Lake Zurich and didn’t un derstand the power of so cial supports until I moved to the West Side in 2010 to raise a family and open a legal center. These services can heal the emotional and physical trauma of living with violence.

Now there is more vio lence in neighborhoods that historically haven’t experi enced shootings, robberies and carjackings. And many more people unfortunately know this trauma and need

healing from harm.

What do we do?

We use holistic social support as a mod el. Several Chicago violence-intervention groups learned from us to build their own models for adults and juveniles who need positive intervention. We’re a law office, but we spend three-fourths of our budget on supportive services.

Last year, we received a $2.9 million boost from The Bail Project, a nation al nonprofit, to merge its Community Release with Support model with our strategies. As a result, we’re inside Cook County Jail every weekday to interview detainees to identify the services they need should the judge grant their release. We know many people need this structure to be successful, and the pretrial popula tion responds best when those services are provided by and in the communities where they live.

We’ve also partnered with the system, working with the Cook County Circuit Court on the first Restorative Justice Community Court and the Chicago Police Department on limited legal representa tion for juveniles in custody at Area One.

We take a lot of pride in being commu nity-based, and our vision of Chicago is one that supports people so they can sup port themselves. That’s a safer city. That’s a stronger city. And we’re already playing our part to help ensure the successful rollout of the SAFE-T Act.

It sounds strange that a criminal de fense law office says its work is violence prevention. But we guide our clients away from guns and drug sales every day.

And our doors are open to anybody who wants to meet with our successful clients, some who now run their own businesses. Supportive services not only change indi vidual lives, they make us all safer.

130 E.

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Cli Nellis is executive di rector of the Lawndale Christian Legal Center, a nonpro t that pro vides social and legal support for individuals awaiting trial.

Demonstrators march in front of McDonald’s headquarters in April 2019 demanding a minimum wage of $15 per hour and union representation.

Urban universities are the future of higher education

and their families worry about how they’ll cover the rising costs of college, and ask, “Is it even worth it?” If re cent enrollment trends are any indication, many would-be stu dents are answering such ques tions with a resounding “no.”

Moreover, according to a na tional poll, public con dence in the contribution of higher education to American society is sharply declining. e entire sector is experiencing a crisis of legitimacy.

Despite these challenges, there is a his toric opportunity. In cities like Chicago, pri

vate, nonpro t universities with strong ties to communities are uniquely positioned to o er ed ucational experiences that are career-focused, adaptable to the changing needs of learners and aimed at addressing intrac table social issues.

As one example, the insti tution I lead, National Louis University, spearheaded an un dergraduate model in 2015 that makes a ordability a top priori ty. Our undergraduate college re-engineered undergraduate education, making it more accessible and sustainable, with a cost that is

about $10,000 per year, less than any in-state university.

A ordability is not the only piece of the puzzle. A sizable number of those already in college, especially students of color and rst-generation degree-seekers, are margin alized and face equity gaps.

is is not a small segment of the student population. In fact, 33% of U.S. students are the rst in their family to attend college, almost 3 out of 4 are employed while taking classes and half are nancially independent from their parents.

We must provide clear, well-rounded pathways to degree completion, personal ized classroom experiences, business intel

ligence and predictive analytics to support success, motivational coaching, and embed ded career preparation and placement.

When Illinois recognized a need for early childhood educators, NLU quickly devel oped a scalable online program that made it easier for aspiring educators to pursue teaching degrees and certi cations.

Small private colleges have played an es sential role in advancing students from mi nority and low-income communities into the middle class. We hope other institutions can look at the work happening locally and see the importance of integrating accessible, equitable and impactful programming for all students, regardless of background.

Cities at a Crossroads

Nivine Megahed is presi dent of National Louis University.

BEST NEW PRIVATE DINING ROOMS

As life slowly returns back to normal and people are planning holiday dinners and get-togethers, we checked in with the hottest new restaurants (mostly downtown) that offer private rooms.

BY ARI BENDERSKY

ANDROS TAVERNA

2542 N. Milwaukee Ave. 773-365-1900 AndrosTaverna.com

Private room seats up to 35 or up to 60 for a cocktail reception.

Decor: Andros’ newly enclosed Kipos Greenhouse extends the warmth of the main dining room. Bathed in western light from a wraparound wall of windows, the room has lush greenery. A single-file line of pendant lights hangs across the middle of the ceiling; exposed brick and glass separate Kipos from the main din ing room.

Cuisine: Greek. This modern Greek restaurant from the husband-andwife team of chef Doug Psaltis and pastry chef Hsing Chen offers tastes of the menu ranging from spicy whipped feta and tarama salata spreads with warm, fluffy pita; roasted calamari; woodgrilled lamb shank; whole grilled sea bass; prawn saganaki; and gyros. Brunch is available as well. Well-curated all-Greek wine list.

Cost: Minimum spend is $5,000.

BAMBOLA

1400 W. Randolph St. 312-526-3983 BambolaChicago.com

Private room seats up to 36 at a long table or up to 66 with smaller tables added.

Decor: Set apart from the main dining room by massive doors, the private dining room features a 32-foot wood table. Its tall windows look out toward Union Park and the room has access to the restaurant’s terrace. With inspiration from the Silk Road, Bambola features textiles, tiles and furniture from across Europe and Asia.

Cuisine: Middle East meets Asia. Chefs Alisha Elenz and Michelin-starred Marcos Campos have created a menu cel ebrating the cuisines stretching between southern Europe and Asia, notably Italy, Turkey and Persia, with influences from Thailand, China and more. Expect caper leaf-wrapped crispy shrimp; wagyu and caviar tarts; turmeric carrots with smoked eggplant labneh; spiced Israeli couscous with medjool dates and wild mushrooms; mushroom pad Thai; braised oxtail fried rice; and Xi’an fried chicken bao.

Cost: Minimum spend is $5,000.

CAFE BIONDA

Brass Tack

11 E Walton, Chicago, IL 60611 312-646-1318

Website: Brasstackchicago.com

Email: BrassTack.events@waldorfastoria.com

With its striking design elements and vintage charm, the Brass Tack’s new private dining rooms surround guests with elegance, sophistication, and privacy.

Approachable and recognizable in the heart of the Gold Coast, the private dining spaces overlook the lively street scapes from the third oor of the Waldorf Astoria. Our Wal ton Room and Gallery Salon o er opportunities for intimate dinners, sophisticated receptions, and unforgettable cele brations.

e menu specializes in dishes and sides that evoke the tra ditions of the American Brasserie but with a distinctly Chi cago touch. A robust beverage program celebrating wine and modern cocktails round out the provisions. Altogether, this new American brasserie in the heart of Chicago’s most luxurious neighborhood is a true dining experience.

1924 S. State St. 312-846-1901 CafeBiondaSouthLoop.com

Private room seats up to 64 (Dining Room) or 15 (Blueprint Lounge).

Decor: The Dining Room, separated by sliding glass doors (sourced from the original Mercantile Exchange) covered by tied-off burgundy drapes, has an open floor plan. Tiled floors hold white tablecloth-covered tables and walls have art featuring Italian culture. The room also has a private bar. The Blueprint Lounge, named for blueprint drawings of iconic Chicago buildings that hang on the walls, is hidden behind a Murphy door. The cozy space with navy accents features tables with candelabras, club chairs and leather couches for smaller gatherings.

Cuisine: Italian. A classic red-sauce Italian restaurant, which closed due to the COVID-19 pandemic, is back under new chef Cosimo Riccardi from Naples, Italy. Event menus comprise antipasti, salad, pasta, entree and dessert, along with a range of classic Italian comfort dishes like sausage and peppers; fried or grilled calamari; Caesar salad; linguine and clams; lasagna; pork chop Vesuvio; chicken Parmesan; and tiramisu.

Cost: Dining Room minimum spend is $5,000; Blueprint Lounge is $1,000.

CANAL STREET EATERY

314 S. Canal St. 312-967-6060

CanalStreetChicago.com/eatery

Private room seats up to 12.

Decor: Situated high above the restaurant, The Overpass (a nod to Union Station next door) has clear views of the main dining room as well as The Green, the building’s adjacent park to the west. The intimate space offers comforting living room ener gy through natural tones, dark wood tables, fabric-backed cushioned seats and overall art deco influences. The room also features a large flat-screen TV for use during presentations.

Cuisine: Italian. Chef Forster So rensen’s a la carte Italian menu comprises antipasti (little gem Caesar, seasonal burrata, mel on and prosciutto); wood-fired pizzas; pasta (mafaldine cacio e pepe, casarecce bolognese, lin guine carbonara); and entrees (burger topped with fontina and pancetta; salmon piccata; N.Y. strip steak with marrow butter). Full bar and wine service are also available.

Cost: Minimum spend is $1,000.

2734 W. Roscoe St. 312-366-2294

EdenInChicago.com

Two private rooms seat up to 18 and 22, respectively.

Decor: Two different rooms offer differ ent vibes. Selenite (seats 18) is a clean, bright, airy room with checkerboardstyle tiles, a faux fireplace and brass ka leidoscope light fixture over the table. Slate (seats 22) offers a dark, sexy per sona with a shadowy, foggy, forested theme on the walls.

Cuisine: New American. Expect seasonally driven dishes from chefpartner Devon Quinn, with ingredients sourced from the on-site greenhouse and garden, for events from break fast to dinner. Menu items include poached wild eggs Benedict with avocado and honey yogurt parfaits; ancient grain bowls with red quinoa, chickpeas and various vegetables or house-smoked turkey sandwich with grilled broccolini and Calabrian chili aioli; and wood-grilled little gem salad with white anchovies and caramelized onions or pan-roasted Loch Duart salmon with sunchokes at dinner.

Cost: Minimums range between $1,500 and $3,000.

FORA AT THE EMILY HOTEL

311 N. Morgan St. 312-764-1919 ForaChicago.com

Private dining room seats up to 14.

Decor: The intimate room features natural woods, dark chairs with black leather cushions and cozy banquettes, similar to the main dining room.

Cuisine: Mexican. With ingredients inspired from Mexico, the seafood-forward menu features fresh heirloom corn tortillas made in-house. Choose from seasonal ingredients like hamachi with grapefruit and avocado; striped bass with cauliflower puree, cucumber and tamarind; and short rib with guajillo ponzu aguachile.

Cost: Minimum spend is $1,000.

ERIC KLEINBERG

GRILL ON 21

208 S. LaSalle St., 21st floor 872-273-0021

Private room seats up to 16.

Decor: On the 21st floor of the new LaSalle Chicago hotel, this luxurious, sophisticated space has a black marble table with plush deep-red seating creating a strik ing centerpiece; gold and brass accents add vintage flair.

Cuisine: Steakhouse/New Amer ican. Start with chilled and hot passed appetizers like caprese skewers, stuffed medjool dates, tuna poke cones, crispy vegeta ble egg rolls, or lobster mac and cheese bites. Lunch or dinner with salads, soups and entrees include lobster bisque, wedge salad, filet mignon and Faroe Island salmon.

Cost: Minimum spend is $1,000 for groups of 10 to 15; groups up to eight can order a la carte.

With its striking design elements and vintage charm, the Brass Tack’s new private dining rooms surround guests with elegance, sophistication, and privacy.

The private dining spaces overlook the lively Gold Coast streetscapes from the third floor of the Waldorf Astoria. Our Walton Room and Gallery Salon o er opportunities for intimate dinners, sophisticated receptions, and unforgettable celebrations.

Waldorf Astoria Chicago 11 East Walton Street, Chicago, IL 60611

BrassTack.events@waldorfastoria.com 312.646.1318

BEST NEW PRIVATE DINING ROOMS

& SEEK

838 W. Randolph St. 312-680-8217 HideAndSeekChicago.com

Private room seats 8 people.

Decor: American. This newcomer to Randolph Street has com pletely reimagined the former Vivo, the original Restaurant Row spot. The eight-seat space, designed by Siren Betty, is separated from the main dining room by thick velvet drapes just off the main floor. It takes in spiration from Parisian mem bers-only night clubs of the 1960s, with lay ered brass disc pendant lights, black-and-white striped mosa ic marble floor and giraffe-print wallcovering. It also includes a TV disguised as a mirror in the wall for audiovi sual capabilities.

Cuisine: Expect a menu of Amer ican shared plates with ingredients and techniques inspired by Italian, Spanish and French cuisine. Dishes include burrata with grilled apricots; spinach and ricotta gnudi with ‘nduja butter; garlic herb buttered escargot en croute; croquetas filled with short rib, jamon, guanciale, fontina cheese, Sungold tomato sauce and pepper jam; roasted halibut with seasonal vegeta bles; and Colorado lamb chops.

Cost: Minimum spend Sunday through Thursday is $800; $1,200 Friday and Saturday.

LIVA AT CHICAGO WINERY

217 W. Huron St. 312-291-9427 or info@indiennechicago.com IndienneChicago.com

Private dining room seats 14.

Decor: Set toward the back of the restaurant, the intimate private room—swathed in creams, pinks and a hunter-green ceiling—centers around a rectangular Calcutta marble table with plush beige seating. Two chandeliers illuminate the table; a vintage mirror makes up the length of the back wall.

Cuisine: Modern Indian. Choose from a vegetarian or non vegetarian five-course tasting menu or work with celebrated chef-owner Sujan Sarkar to create your own. Guests can also opt to dine a la carte with items like golden Osetra caviar with a lentil doughnut and coconut chutney mascarpone; Goan curry with octopus and miso; pork belly with pickled peach, apricot and puffed black rice; and ember-roasted green garbanzo bhel with avocado mousse and buckwheat khakda.

Cost: Minimum spend is $2,500.

739 N. Clark St. 312-763-3674 or sales@chiwinery.com

Private dining room seats up to 50.

Decor: Nestled within the dining room and separated by glass walls offering views into the dining room, winery and barrel room. The private room, which opens this fall with the larger Chicago Winery, will feature rich, jewel-toned and textured fabrics and brass accents. It can accommodate a variety of tables or one long table to create an even more festive atmosphere.

Cuisine: American. Chef Andrew Graves (formerly of the Alinea Group) has created a menu focused on Mid western ingredients. Groups can order from the menu with items that may include chicory green salad with shaved root vegetables; salmon with cauliflower; and lamb and squash sugo tagliatelle. Or go with the “chef’s whim,” a unique board featuring cheeses, meats, fruits and vegetables that will pair with wines—chardonnay, sauvignon blanc, temperanillo, malbec—made on-site.

Cost: Pricing begins at $85 per person.

ChiWinery.com/Chicago-Restaurant

NEIL JOHN BURGER

LYRA

905 W. Fulton Market 312-660-7722 LyraRestaurant.com

Two private rooms seat up to 36 and 52, respectively.

Decor: The Kava room evokes a wine-cellar feel with nearly floorto-ceiling cabinets lining the walls filled with wine bottles. Greenery fills the space with modern glass lighting hanging from the wood ceiling. The Villa room is accessed by sliding slatted wood doors lead ing into a sandstone-colored room with hanging basket pendants.

Cuisine: Modern Greek. Whether you opt for stations, stands or family style dining, award-winning Greek chef Athinagoras Kostakos prepares dish es often cooked over open flames that lean toward healthy. Look for charred heirloom carrots, spanako pita, grilled octopus, slow-roasted lamb gyro, chicken souvlaki, crab ceviche and cast-iron moussaka.

Cost: Contact venue.

MONROE RESERVE

100 S. Monroe St. 312-546-6177

SouthBranchChicago.com/events/Monroe-Reserve

Private room seats up to 17 or 37 for a cocktail reception.

Decor: The private dining room for South Branch Tavern & Grill offers a rustic-chic ambiance with dark wood, stone, leather furniture and warm accent lighting. A horseshoe bar flanked by stone columns is the focal point in the room. Whiskey-centric photography adorns the walls while floor-to-ceiling frosted windows run along Monroe Street.

Cuisine: American tavern (i.e., spicy lobster tostadas; deviled eggs with jumbo lump crab; salt cod and potato fritters; charcuterie boards comprising meats, cheese, pepperoncini, candied pecans and flavored mustards; and a flavored bacon flight.)

Cost: Minimum spend is $1,500 per hour with a two-hour minimum; all food and beverages go toward the minimum.

RIVER

315 N. LaSalle St. 312-822-0100

RiverRoastChicago.com

Private room seats up to 16.

Decor: Though not a newcom er, River Roast has revamped its space into a modern yet cozy room, with windows offering nat ural light and views of the Chica go River. A large, communal dark wood table anchors the room, which has two oversized pen dants over the table and modern art on the walls.

Cuisine: Contemporary Ameri can. Look for family style dining with items like the restaurant’s sig nature applewood-smoked chick en and local roast beef cooked low and slow, both carved table side; whole fire-roasted fish with salsa verde; chopped salad with red wine vinaigrette; and shrimp and crab toast.

Cost: Minimum spend is $600 at lunch; $1,500 at dinner.

ROOH

736 W. Randolph St. 312-809-6964 RoohChicago.com

Private room seats 12.

Decor: Set on the restaurant’s lower level, the 12-seat room feels like a private library in a grand home with sliding wood doors that expose shelves with old books, a large wooden table in the center of the room and barn doors closing off the space.

Cuisine: Indian. A seven-course, fine-dining Indian tasting menu includes dishes like grilled prawn with man galorean ghee roast masala and fennel; avocado and green chickpea bhel with tamarind and puffed black rice; tandoor-smoke pork belly with pandi curry; tandoori cauliflower; and butter chicken with red pepper makhani and cashews.

Cost: Minimum spend is $1,200 for three hours with a $200 room fee.

413 N. Wells St. 773-312-4989 SolitaTacos.com

Private rooms hold up to 25 and 100.

Decor: With a modern, lively design that evokes a tequila distillery, Solita’s second floor can accommodate large parties up to 100 seat ed in a 1,500-square-foot open space with a full bar. A 25-seat pri vate room on the west end of the upstairs can accommodate more intimate events, with candles adorning the east wall and windows looking out toward the city on the west side. Both areas have flatscreen TVs.

Cuisine: Mexican. Taco bar choices include slow-roasted pork car nitas, oak-roasted chicken and crispy fish. Add in grilled corn elotes, guacamole, peel-and-eat wood-grilled shrimp, ceviche, and chick en and cilantro taquitos. A margarita bar is another option.

Cost: Minimum spend is $2,500 for the 25-seat room and $5,000 for the larger space.

ANTHONY TAHLIER

317 N. Clark St. 312-900-9035 RPMRestaurants.com/ RPM-Seafood-Chicago

Private rooms seat up to 50; mezzanine buyout holds up to 150.

Many of the spaces have private balconies over looking the Chicago River or at least beautiful views through floor-to-ceiling windows. Filled with light or shielded by flowy white curtains, the rooms have light-colored wood tables and plush white seating. Events can be customized with different ta ble setups, flowers and greenery.

Cuisine: Seafood. Seafood tow ers feature oysters, shrimp, Alas kan king crab and lobster. Other dishes include hand-cut hamachi and ceviche; blue crab cakes with lime-soy glaze; warm prawns in olive oil; charcoal-grilled black bass with Moroccan spices; and king crab mac and cheese.

Cost:

THE X POT

1147 S. Delano Court 312-585-8655 TheXpot.com

Two rooms seat up to 16 and 18 people each.

Decor: A modern industrial artistic vibe melds with metallic grays, ceramic roses, hanging pendant lights, and light-gray leather ban quettes and seating. The interactive 5D room, which seats up to 16, features a specialized menu that follows along with the 5D projec tion.

Cuisine: Pan Asian. This is an immersive experience, with robot servers and interactive projections. Hot pots are the main focus with high-quality seafood—lobster, king crab, shrimp and scallops— and Japanese wagyu beef in various cuts.

Cost: The 18-person room costs a minimum of $1,500 on weekdays and $1,800 on weekends; the 5D spectrum room, which seats up to 16, costs $198 per person Monday through Thursday and $218 per person for Friday, Saturday and Sunday—before tax and service charges (22%)—and a minimum of 6 people to start the show. The cost includes food only; drink is billed separately.

530 N. Wabash Ave. 312-999-9760

RunChickenRun.com

Private room seats up to 22. The Bourbon Room seats 8.

Decor: The intimate private room (set on the mezzanine lev el) at this James Beard-nominat ed Miami import, which has five additional locations, features a glass wall looking out onto the main dining room. That intima cy extends to the seating: one large booth that envelopes all the guests. The Bourbon Room floats above the restaurant with a unique liquor storage display visible through glass. This room features a custom chandelier, a double-height bar and an antique-mirrored ceiling.

Cuisine: Southern comfort: but termilk biscuits (with or without crispy chicken), skillet corn bread, hand-cut steak tartare, chicken and waffles, lobster mac and cheese, jumbo lump crab cake, shrimp and grits, hickorysmoked ribs.

Cost: Minimum spend at lunch is $750; brunch, $650; dinner, $1,000. The Bourbon Room min imum is $2,500.

Historic Ambassador Chicago hotel in Gold Coast is for sale

Source says the building is being pitched as potential apartments or senior housing

BY DANNY ECKER

e Chinese investment rm whose e ort to revive the histor ic Ambassador Chicago hotel was clotheslined by the COVID-19 pandemic has put the property up for sale, an o ering that will likely deal the seller a hefty nancial blow and could lead to a redevelopment of the Gold Coast building.

A venture of Hong Kongbased Gaw Capital Partners has hired hotel real estate brokerage RobertDouglas to sell the 285room inn at 1301 N. State Park way, according to a marketing yer. No asking price is listed for the 17-story property, but sources familiar with the listing said Gaw may have a di cult time getting bids that exceed the $38.5 million mortgage it borrowed against the property in 2019, according to Cook County property records.

A sale close to that dollar gure would be a fraction of the $61.5 million the Gaw venture paid for the property in July 2016, when it was known as the Public Chicago. It’s unclear how much Gaw spent on upgrades to the hotel and its restaurant after that, though in formation in the yer suggests the company invested roughly $11 million in the property. Gaw re branded the hotel as the Ambas sador Chicago, a nod to its history as the storied former Ambassador East hotel.

e property stands to be a painful example of the pandem ic’s battery on the hospitality market. While leisure travel de mand has come back in a signif

icant way this year, sluggish busi ness travel and rising property taxes have substantially devalued downtown hotels, causing owners to surrender properties to their lenders in the most dire cases.

Gaw enlisted Chicago develop er Shapack Partners—with whom it previously teamed up on the development of the Soho House Chicago in Fulton Market—to try to boost the hotel’s value after the 2016 purchase from a ven ture of boutique hotel pioneer Ian Schrager. Schrager had revamped the property and rebranded it as the Public, but the concept never took o , and Schrager ultimately sold the hotel to Gaw for what was then considered a low number amid a hot hotel market.

After restoring the Ambassador name, Gaw hired Lettuce Enter

tain You Enterprises to operate the hotel’s famous Pump Room restaurant, which it reopened as Booth One in 2017. But in a set back to the property’s revival, the restaurant closed in 2019 and the owners and Lettuce parted ways.

e restaurant, which is open, is now called the Ambassador Room. Shapack Partners is no longer involved in the hotel, and a spokesman for Shapack did not respond to a request for com ment.

In March 2020—just days be fore the start of the pandemic— Gaw announced a plan to fur ther renovate the property as the brand linked up with the Hyatt Hotels’ Joie de Vivre, or JdV, life style hotel collection. e hotel then closed for nearly a year as a result of the public health crisis.

OPPORTUNITIES

Now RobertDouglas is market ing the hotel as an opportunity to either capitalize on the renova tions to the property over the past decade and continue operating it as a hotel, or potentially turn it into something else. “Given the property’s size and location, (it) may be appropriate for a number of mixed uses,” the yer said.

One source familiar with the building said RobertDouglas is playing up the property as a con version into a residential use, such as apartments or senior housing.

A Gaw Capital spokesman did not respond to a request for comment, and a spokesman for RobertDouglas declined to com ment.

Gold Coast hotel owners have found buyers for their properties during the pandemic, though prices have been far lower than they would likely have been be fore 2020.

Groupon co-founder

Tempus raises more funding

BY KATHERINE DAVIS

Chicago biotech company Tempus has raised more funding from investors, a move it says will help it expand its precision medicine technology platform.

Tempus, launched by Groupon co-founder Eric Lefkofsky, raised about $275 million in a combina tion of equity and debt nancing, the company said in a statement.

Tempus said it sold shares to its existing investors for the same price per share as its previous fundraising round at the end of 2020, when it raised $200 million at an $8.1 billion valuation.

Tempus investors from other funding rounds include Baillie Gi ord, Franklin Templeton, Goo gle, venture-capital fund NEA and Novo Holdings.

tient, insights that help physicians tailor and personalize treatment plans.

“In the last seven years, we’ve made great strides in developing and deploying smarter diagnos tics not only in oncology, but neu ropsychiatry, infectious disease, and cardiology,” Lefkofsky said in a statement. “We are committed to achieving our mission in apply ing AI to health care broadly with a focus on deploying solutions at scale that have real impact on pa tient care today and research in the future.”

Comhar

Chicago, IL 312-724-4000

www.comharpartners.com

Comhar Partners, a recognized national leader in retained executive search and professional recruiting, has announced the reopening of their Chicago of ce. The of ce closed in 2020 due to COVID-19 and the team has been remote.

“Our Chicago book of business continues to grow, and the new of ce will allow us to better serve our clients,” said Bernard Layton, Man aging Director of Comhar Partners. The new of ce is the company’s second brick and mortar location.

Phillips Lytle LLP

Chicago, IL 312-794-7300

www.phillipslytle.com

Phillips Lytle LLP, a premier regional law rm recognized nationally for legal excellence, has announced the launch of its Chicago of ce, which will be led by John R. Worth, formerly a partner at Kirkland & Ellis. The expansion into Chicago builds on the rm’s talent-driven growth plans and its ongoing work to attract and develop top legal talent in new and existing markets. Since January, the rm has hired more than 30 attorneys, a move that has bolstered several practice areas.

e ompson Chicago ho tel and the Talbott Hotel in the neighborhood were both sold last year for close to $300,000 per room. Each deal generated enough money for the sellers to pay o the debt they owed on the properties, but the Talbott’s purchase price was way below the previous owner’s total invest ment in the majorly renovated building.

Occupancy at downtown ho tels averaged 76% in Septem ber, up from 56% in September 2021 but below the 84% average in September 2019, according to hospitality data and analytics rm STR. Revenue per available room, a key performance metric that accounts for both occupan cy and room rates, averaged $204 last month, slightly higher than the $199 average in September 2019.

September marked just the second month since the start of the pandemic in which average RevPAR topped the 2019 gure.

e debt nancing came from Ares Management, a Los Ange les-based private-equity rm that’s also put funds into local health care companies like TAGe Aspen Group and physician group Duly Health & Care. Alto gether, the new nancing brings Tempus’ total funding to more than $1.3 billion.

DATA LIBRARY

Tempus, which has 1,700 em ployees, about 900 of whom are in Chicago, says it will use the new funds to scale operations and build out new capabilities for its platform. e company, founded in 2015, started out by providing genomic-sequencing services to treat di erent cancers. Since then, it has expanded to treat other con ditions, like cardiology, diabetes and infectious diseases such as COVID-19. Now the company says it owns one of the world’s largest libraries of clinical and molecular data. Using this information, Tem pus says it can provide “contextu alized” results for each speci c pa

Last fall, it was reported that Tempus was exploring going pub lic as soon as the rst half of 2022. But that was before a turbulent public market this year resulted in one of the weakest IPO markets in years. Earlier this year, Tempus acquired San Francisco-based Highline Sciences, a full-service clinical contract research organi zation that manages and executes early- and late-stage clinical trials.

Tempus’ fundraise comes near the end of a slow venture-capital market this year, according to data from PitchBook and the Nation al Venture Capital Association. About $43 billion was invested in U.S. companies in the third quar ter, a nine-quarter low. Like Tem pus, many of the companies still raising funding are going back to existing investors for cash.

Despite the slowdown in VC, health care companies in Illinois and across the country are attract ing capital at a higher rate than some of their peers in other indus tries. Of the 10 largest VC deals in Illinois during the third quarter, seven were with health care com panies that spanned across phar maceutical, medical device and health care services subsectors, PitchBook and NVCA data shows. A similar trend is taking place across the country.

The Ambassador Chicago

MILITARY VETERAN EXECUTIVES

These 22 executives are well familiar with the Veteran’s Creed, an eight-point mission statement unveiled by 11 major veterans’ organizations in 2018. They live the creed, especially No. 4: “I continue to serve my community, my country and my fellow veterans.” The honorees profiled here include former military communications officers, platoon leaders, fighter pilots and nuclear engineers who have been deployed in regions ranging from Vietnam to Kuwait. As civilians, all have achieved success in the business world and in their volunteer efforts to help fellow veterans. Through this service, they embody the ideal that a soldier’s pledge to serve spans their entire lives, not just their time in the service.—By Lisa Bertagnoli

BRIDGET ALTENBURG

Chief executive officer | National Able Network

Bridget Altenburg guides the strategic mission of National Able Network, a workforce development nonpro t. She designed the organization’s Veterans Forward military-to-civilian career-transition program, which has served thousands during her tenure. She educates Chicago Public Schools students on how to compete for Reserve O cers’ Training Corps scholarships and appointments to the service academies. Altenburg—who deployed to Bosnia to conduct engineering operations and to Albania to support the air war in Kosovo—serves on U.S. Sen. Tammy Duckworth’s service academy nomination board; the board of the Pritzker Military Museum & Library; and Allied Airlift 21, a nonpro t supporting the evacuation of Afghan allies.

DONALD BONDS

Chief transit officer | Chicago Transit Authority

Donald Bonds directs the planning activities and operations of CTA’s transit operations departments, which includes bus operations, rail operations, rail station management, and bus and rail vehicle maintenance.

He is responsible for 8,500 employees, 1,400 in-service railcars and 1,800 buses at the second-largest transit agency in the country. A chief warrant o cer with the Army and a logistics professional for more than 20 years, Bonds led the agency’s e orts to provide full service throughout the pandemic and was instrumental during contract negotiations of the bus and rail union employees. He’s involved with CTA e orts to recruit veterans, participating in many veteran job fairs. CTA has a military occupational classi cation resource on its hiring site.

JOHN P. CALAMOS SR.

Founder, chairman and global chief investment officer | Calamos Investments

John Calamos Sr. founded his investment rm in 1977, launching one of the rst convertible mutual funds in 1985 and one of the rst liquid alternative mutual funds in 1990. Today, Calamos Investments manages $40 billion in assets. e rm recently opened an o ce in Fulton Market, expanding its Chicago footprint. In Vietnam, Calamos served as a forward air controller, recorded more than 400 combat missions and was awarded the Distinguished Flying Cross; he ew B-52 bombers and A-37 jet ghters, retiring as a major. He works with Operation Support Our Troops-America, hosts a charity rappelling event and lends the Calamos Investments hangar at DuPage Airport to the DuPage Veterans Foundation to host Honor Flight fundraisers.

TOM GEMMELL

Shareholder | Polsinelli

An experienced trial attorney and intellectual property litigator, Tom Gemmell serves as lead of the rm’s unmanned systems and advanced robotics practice and is co-lead of its aviation and transportation and logistics practices. He represents clients across a range of industries in matters involving aerospace, automotive, health care and medical device technologies. Both an F-15 ghter pilot (First Gulf War with 37 combat missions) and a military lawyer, Gemmell is involved in veteran service projects through the American Legion and his Air Force Reserve unit. He also has worked with Bunker Labs in support of veteran entrepreneurs and small-business owners, presenting seminars related to unmanned systems and robotics.

ROBERT JAKUBEK

Vice president, engineering and network operations | UScellular

Robert Jakubek leads engineering teams at all of UScellular’s network operations centers across the country. As a manager with the communications repair group of the U.S. Marine Corps, he handled the installation and maintenance of UHF, HF, and VHF communication networks for military operations. Directly supervising nine technicians, he developed new troubleshooting and testing procedures. Jakubek works with veteran-focused organizations such as Hiring Our Heroes, Veterans Jobs Mission and Black Diamond Charities. He is also involved with the company’s associate resource group, Veterans & Associates Leading Organizational Results. Jakubek is a board member of Warriors4Wireless, a veteranfocused charitable organization connecting veterans to careers in the 5G workforce.

TANYA ANTHONY

Chief administrative officer | Cook County Government

Tanya Anthony is responsible for the strategic oversight of the Bureau of Administration, which encompasses 12 departments and divisions that provide support within Cook County government. e overall budget for the 650-employee department is approximately $488 million. She provided direction throughout Cook County’s response to the pandemic, including fatality management for the medical examiner. Anthony served four years of active duty in the U.S. Army, primarily in Livorno, Italy, as a medical supply specialist supporting Operation Desert Shield and Operation Desert Storm. She launched Cook County’s Virtual Veterans Hiring Program, connecting veterans to jobs in IT, health care, nance and other areas through virtual workshops to reconstruct resumes, meetings with career coaches and hiring events.

ERICA BORGGREN

Vice president, customer solutions | ComEd Erica Borggren leads a team that is driving the clean energy transformation in northern Illinois, including energy e ciency, building electri cation, demand response, and solar and electric vehicle tools for customers. She led ComEd’s creation of a new online EV toolkit, the deployment of new carbon reporting for ComEd customers, and the launch of a new Energy Ally device and service for low-income customers without regular access to Wi-Fi. An active-duty Army o cer with assignments in Korea, Baghdad and U.S. Central Command in Florida, Borggren served as director of the Illinois Department of Veterans’ A airs, easing licensing processes for transitioning veterans and standing up a consortium of businesses committed to hiring veterans.

JOHN DEBLASIO

Chairman | DT Global

John DeBlasio serves as chairman of DT Global, DT Institute and Continuity Global Services, as well as on several other boards. He led the acquisition of Cardno International Development and IMC Worldwide, making DT Global the world’s fifth-largest international development firm. An infantry officer who served in the Civil Affairs functional specialty area in Iraq and in Amman, Jordan, DeBlasio is a founding board member of Illinois Joining Forces. He also has been a supporter of Bunker Labs, helping to promote veteran entrepreneurs. DeBlasio nominates veterans for the Chicago Council on Global Affairs Emerging Leaders Program and is an active supporter of the Pritzker Military Museum & Library.

DAVID HARRIS

Director | Illinois Department of Revenue

David Harris manages a departmental budget of $240 million that coordinates a tax structure collecting $67 billion, ensuring that all tax revenues collected are properly deposited. During the COVID pandemic, he provided key recommendations to Gov. J.B. Pritzker to manage state revenues due to signi cant revenue declines caused by the outbreak. He also assisted Pritzker and the Legislature in crafting scal year budgets that resulted in credit rating upgrades from all three credit rating agencies. Harris commanded units from company to battalion level with service in Germany and Eastern Europe and, as the adjutant general, supervised the deployment of three Army brigades and three Air Force air wings.

DANIEL JAQUINT

Senior director of operations, robotics automation | Zebra Technologies

Daniel Jaquint is a responsible for coordinating functions and processes in support of Zebra’s automation business, serving as chief of sta and driving cross-discipline alignment. Among recent accomplishments, he led the integration of Fetch Robotics for six months post-acquisition and created the model for operating and scaling Zebra’s automation business, including de ning the framework for incorporating and leveraging physical and talent assets cross-functionally. A eld artillery o cer with six years of active duty—including deployment in Operation Desert Storm, service in Korea and deployment as a NATO adviser in Afghanistan—Jaquint co-leads VETZ, Zebra’s Inclusion Network for veterans and allies, which has championed work with the nonpro t Hiring Our Heroes.

METHODOLOGY: The individuals featured did not pay to be included. Their profiles were written from the nomination materials submitted. This list is not comprehensive. It includes only individuals for whom nominations were submitted and accepted after a review by editors. Nominees must be based in the Chicago area and be a U.S. military veteran according to the U.S. Department of Veterans Affairs. They must serve in a senior level at their company, significantly contribute to advancing issues that affect veterans, serve as a role model for veterans, and demonstrate leadership via professional and/or civic and community organizations.

MARY KING

Executive vice president, people and culture | Invenergy Mary King is responsible for advancing diversity, equity and inclusion and optimizing people-centered activities including recruiting, professional development, rewards and organizational design. In 2022, her team rolled out a new employee- and leadership-expectation framework to support Invenergy’s growth in clean energy. She was chosen as chair of the American Clean Power Association’s DEI committee. King, who served in Germany as a platoon leader and executive o cer in the 123rd Signal Battalion, was the executive sponsor of PG&E’s PowerPathway program, a workforce development program that has 1,100 graduates, 520 of whom are veterans. She was also one of the founding members of PG&E’s veterans’ employee resource group.

NICOLE MANDEVILLE

Director, Office of Contract Compliance | Cook County Government

Nicole Mandeville is charged with implementing a mission to provide more general and sub-contracting opportunities to minority-, women- and veteran-owned businesses looking to participate in Cook County contracts. She has grown her team by 80% and established new senior leadership with the goal of improving access to resources, building capacity and o ering technical assistance to increase parity in Cook County’s procurement process. Mandeville served in the U.S. Army Reserves and Missouri Army National Guard in Kuwait, Saudi Arabia and southwest Asia. She served on the Illinois Governor’s Challenge committee, representing the Illinois Department of Veterans A airs advocating for increased mental health services with speci c resources and access, especially for women veterans.

DAN MISCH

Vice president, renewables asset management | Invenergy

Dan Misch leads the international expansion of Invenergy’s renewable energy services business to Latin America and Europe. Previously, he contributed to the development and construction of 1 gigawatt utility-scale wind and solar projects, responsible for contractual and regulatory compliance, commercial negotiations and stakeholder engagement. A former lieutenant and certi ed nuclear engineer on board ballistic missile submarines as a tactical watch o cer, Misch founded the Veterans Advanced Energy Project, housed within the Atlantic Council Global Energy Center. e project educates military veterans on the importance of the clean energy transition to U.S. national security through an annual summit and fellowship, as well as events across the country to promote job opportunities.

PHILLIP B. ROONEY

Chairman | Claddagh Investments

Philip B. Rooney assists in the management and overall direction of Cladd agh operating companies, sitting on individual company boards. Formerly president, director and CEO of Waste Management (during his tenure, company revenues grew from $17 million to $10 billion), Rooney has in the last 18 months been instrumental in the sales of a trucking business and a re suppression company. An o cer in the Marine Corps from 1966-1969 and award ed the Navy Commendation Medal with Combat V for service in Vietnam, he’s an active supporter of the Marine Corps Scholarship Foundation, serves on the board of trustees at the University of Notre Dame and founded the Rooney Heart Institute at Hinsdale Hospital.

NICK STERNOWSKI

Director of operations | Primera Engineers

Nick Sternowski partners with managers across the rm to drive productivity, maintain accountability for safety and quality, and advance tools and technology. In the past year, he has worked to improve Primera’s project management performance and has developed and deployed a companywide training curriculum, a 10-week program now used to onboard new project managers. He’s also helped Primera enhance its information security practices and spearheaded ISO 27001 certi cation e orts. A submarine warfare o cer aboard the USS Rhode Island, Sternowski made ve strategic deterrent patrols while based out of Naval Submarine Base Kings Bay, Ga. He has been a member and mentor in several veteran-focused employee resource groups.

MELISSA VENTRONE

Member and leader of the cybersecurity, data protection and privacy business unit | Clark Hill

Melissa Ventrone has been instrumental in creating a legal consulting group for cybersecurity services rm Asset360.com. Her team has mit igated many ransomware attacks, often negotiating with those holding data and systems hostage. Ventrone served in the Marine Corps from 1994 to 2016 and was executive o cer of a 329-person company deployed to Afghani stan. Today, she volunteers as an ombudsman for the Employer Support of the Guard & Reserve, serving as a mediator on employment-related disputes such as job elimination issues for returning servicemen and servicewomen.

RANDY LAUER

Managing director, head of business development and institutional sales | Academy Securities

Randy Lauer manages institutional sales for Academy Securities, a certi ed Service-Disabled Veteran-Owned broker-dealer and invest ment bank. He was a Marine Corps o cer who held billets ranging from platoon commander to company commander in overseas deployments to Okinawa, Japan; South Korea; the Philippines and ailand. Lauer serves as a trustee on the board of Lake Forest College, is a trustee for St. John’s Northwestern Academies, is an independent trustee for the HPS Corporate Lending Fund and is on the board of Silent Falcon UAS Technologies. He was the regional executive sponsor for Citi’s Veteran Network as well as a co-business sponsor of the Citi Black Heritage Network Chicago.

ROB MATLES

Managing director, head of global technology centers | JPMorgan Chase

Rob Matles oversees 22 global tech centers that house more than 50,000 JPMorgan Chase technologists. He ensures that the centers build employees’ technical skills and implement the rm’s global technology strategy. A former communications o cer responsible for the U.S. Air Force Warfare Center computer systems that support the testing of weapons systems, Matles hosted the rst JPMorgan Chase veteran- and military spouse-owned small-business competition; locally hired 20 veterans and placed them into technology and cyber roles; established the JPMorgan Chase Technology Applied Research Lab, which has produced 20 patents; hosted JPMorgan Chase’s Global Technology Hackathon; and has worked to identify jobs that enable military spouses to retain their jobs regardless of where they are stationed.

MICHAEL MULCAHY

General counsel and chief legal officer | Vedder Price

Michael Mulcahy is responsible for advising the rm’s executive committee and board on governance, ethics, structure, litigation, transactions, insurance, regulation, compliance, investigations, human resources and professional responsibility matters. He has consolidated all facets of Vedder Price’s legal department and guided it on all legal issues associated with opening its Dallas o ce. He also managed the rm’s COVID-19 policies, practices and hybrid return-to-work policy. After completing U.S. Marine Corps O cer Candidates School, Basic O cer Course and Naval Justice School, Mulcahy spent four years as a prosecutor and defense counsel stationed at Camp Pendleton. Today, he regularly counsels active duty and veteran military attorneys transitioning into private practice and is active in the Chicago Marines Foundation.

KREWASKY SALTER

President | Pritzker Military Museum & Library

Krewasky Salter’s duties include leading a capital campaign to expand the museum experience while also overseeing the development of the Pritzker Military Archives Center in Somers, Wis. He’s an active speaker, including being an onscreen expert for the History Channel documentary “Black Patriots: Bu alo Soldiers,” and will be an academic World War I battle eld guide in France when lming begins in 2023. Salter was commissioned as a second lieutenant in the Air Defense Artillery, taught at West Point and commanded a PAC-3 Patriot missile battalion deployed to the Far East. He’s helped organize more than seven national-level public programs that advance veteran causes.

DANIEL SYLVESTER

Partner | Holland & Knight

Daniel Sylvester focuses on representing borrowers and lenders in senior secured credit, second-lien syndicated credit facilities and real estate nance. He’s a member of the rm’s diversity council and cochairs its DiverseAbility a nity group. He also produces thought leadership content for the rm’s website and publications such as Law360. An ROTC scholarship recipient who was commissioned second lieutenant, Sylvester served 10 years with tours in Croatia, Germany and Italy; humanitarian operations in Bosnia; and with NATO logistics command as part of the Dayton Peace Accords. Today, he leads the rm’s Veteran Business Partnership Initiative, awarding more than $100,000 in pro bono legal services at veteran entrepreneur pitch competitions.

DAVID WORKS

Executive vice president, chief human resources officer | US Foods

David Works is responsible for all aspects of the HR strategy around organizational development, strategic planning, talent acquisition, employee engagement, leadership development, training and coaching, talent management, labor, employee relations and culture. A U.S. Navy commissioned o cer on the USS Groton, a nuclear fast-attack submarine, Works also served as an instructor at the Naval Submarine School. Today, he is the executive leadership sponsor of US Foods’ ose Who Serve employee resource group, helping to recruit, support and develop military associates. As of Dec. 31, 2021, 6% of US Foods associates identify as veterans. e ERG, which provides networking opportunities, has grown by 13% since 2020.

ACCOUNTING

BDO USA, LLP, Chicago

BDO USA, LLP has named Geoff Aldridge a Principal in the rm’s Tax practice.

Aldridge focuses on tax accounting and compliance needs of large multinational corporations. His clients include a spectrum of emerging growth, middle-market and large private companies.Aldridge is focused on serving private equity and/or foreign-owned corporations. He helps companies in various industries but concentrates on technology, manufacturing and real estate companies.

ACCOUNTING

BDO USA, LLP, Chicago

BDO USA, LLP has named Heidi Boos Chambers a Partner in the rm’s Assurance practice. Boos Chambers is a service-focused client relationship manager and analytics-driven leader with 14 years of public accounting and assurance experience. She adds value to client engagements involving complex accounting and reporting issues across industries. She also assists clients with M&A transactions and purchase accounting to stock compensation, asset valuations, impairments, and debt modi cations.

ACCOUNTING

BDO USA, LLP, Chicago

BDO USA, LLP has named Roscelle Gonzales a Partner in the rm’s Professional practice.Gonzales has extensive experience in reviewing periodic and transactional lings forcompliance with U.S. GAAP and SEC rules and regulations. She acts as a technicalresource for complex nancial instruments and other accounting matters and guides engagement teams in navigating complex reporting and accounting rules related toIPOs, M&As, and other unusual transactions.

ACCOUNTING

BDO USA, LLP, Chicago

BDO USA, LLP has named Cory Hill a Partner in the rm’s Tax practice. Hill leads the Chicago Financial Services and Alternative Investments Tax practice. Focusing on private equity and hedge fund clients, he provides tax compliance and consulting services to fund-of-funds, onshore and offshore investment partnerships, family of ces, real estate funds, management companies and other alternative investment structures.

ACCOUNTING

BDO USA, LLP, Chicago

BDO USA, LLP has named Jason Lipschultz a Partner in the rm’s Assurance practice. Lipschultz specializes in Third-Party Attestation including System and Organization Controls, International Organization for Standardization, related compliance, and internal and external IT audit.

ACCOUNTING

BDO USA, LLP, Chicago

BDO USA, LLP has named Kevin Mclntyre a Partner in the rm’s Assurance practice. McIntyre provides accounting, auditing and business advisory services to both international and domestic companies in the middle market. His primary focus is working with private equity backed companies in a variety of industries including technology, manufacturing, distribution and professional services.

James E. Swabowski, Senior Vice President, has been promoted to Team Lead of Wintrust’s national ESOP Finance Group, which provides competitive nancing structures for employee stock ownership plans. Jim is responsible for managing a portfolio of national, ESOP-owned and closely held privately-owned companies and specializes in ESOP lending, advisory activity and merger and acquisition activity.

McDonald Hopkins is pleased to announce the election of Chicago attorney

Christopher Allen to the rm’s membership.

Christopher’s experience as a litigation attorney includes general commercial litigation, class action defense, appellate litigation, intellectual property litigation, consumer fraud, white collar defense, bankruptcy, restructuring, and securities litigation. His class action defense work includes data privacy litigation and claims under the Illinois Biometric Information Privacy Act.

ESTATE

Luke Ferzacca has joined as an associate. He will be responsible for providing brokerage services, including tenant, buyer, and owner representation. He will work on sale/ leasebacks and build-to-suit projects. Luke was an account executive for Team Engine after earning a degree in business administration from the University of Colorado, Boulder Leeds School of Business. He is also an alum of Nazareth Academy in LaGrange, IL.

REAL ESTATE

ACCOUNTING

BDO USA, LLP, Chicago

BDO USA, LLP has named Tim Schram a Partner in the rm’s Specialized Tax Services (STS) practice. Schram leads the STS-State and Local Tax Credit and Incentives practice where he identi es refund opportunities for clients from underutilized or overlooked tax credits. He also assists clients in negotiating and securing economic development incentives for expansion projects.

CONSTRUCTION

Pepper Construction, Chicago

Pepper Construction announces that Rob Martinelli is promoted to Senior Vice President. Rob has completed more than 2.5 million square feet of work across commercial of ce, K-12 and higher education projects and has earned a reputation as a consummate builder. He will expand his focus to include supporting Pepper’s industrial market sector. Rob holds a Bachelor of Science degree in Industrial Technology from Eastern Illinois University.

LAW

Robbins DiMonte, Ltd., Chicago

Robbins DiMonte, Ltd. is pleased to welcome Joshua L. Harris as a Senior Associate in the Construction Litigation practice group. Collaborating with the rm’s seasoned shareholders, he handles routine to sophisticated matters nationwide. Josh also brings a wealth of litigation experience to the rm. As a litigator and trial lawyer, Josh has represented large and family-owned businesses across a host of industries and sectors at both the state and federal levels.

JLL, Chicago

JLL is pleased to announce Chris Cummins as Managing Director for the Chicago Suburban Brokerage team. Chris has 20+ years of successful experience specializing in landlord representation.  Before joining JLL, Chris spent six years at Cushman & Wake eld where he served as Executive Director focusing on the North Suburban market. In his new role, Chris will leverage his experience to co-lead JLL’s Suburban Agency Leasing business while also working with the Suburban Tenant Representation team.

ACCOUNTING

BDO USA, LLP, Oak Brook

BDO USA, LLP has named Wally Seliga a Principal in the rm’s BDO Digital practice. Seliga leads the market strategy and operations of the Cloud, Security & Infrastructure practice. He deploys solutions using modern design patterns with cloud-based and next generation technology to provide secure, seamless and scalable access to systems while ensuring an exceptional user experience.

CONSTRUCTION

Principle Construction Corp., Rosemont

PROFESSIONAL SERVICES

JLL, Chicago

ARCHITECTURE / ENGINEERING

Klein and Hoffman, Inc., Chicago

Klein & Hoffman announces the promotion of two key individuals.

Allysia Youngquist, AIA, joined K&H in 2002 and leads the building enclosure roo ng and waterproo ng department. Her portfolio consists of notable hospitality, commercial, and higher education clients. Allysia is an active member of IIBEC.

Terry McDonald, SE, PE, joined K&H in 2004 and manages the structural engineering group and serves as Project Principal and Project Manager for adaptive reuse, structural renovation, and condition assessments of existing buildings. Terry’s diverse project portfolio includes municipal, higher education, commercial, and numerous condominium investigations and rehabilitation. Allysia and Terry serve on the K&H Board of Directors.

Justin Cook has joined as a project estimator bringing 20 years of experience working in the concrete industry and with GC’s to his new role where he will be responsible for estimating project costs, developing proposals, and communicating project scope to Principle and its clients. Before Principle, he most recently worked as an estimator at Wells Concrete, Inc. He earned his degree in construction management from Illinois State University and is an Eagle Scout.

Holland & Knight LLP, Chicago

Andrew D. Shapiro and Jason S. Dubner have joined Holland & Knight as partners in the rm’s Representations and Warranties

Insurance (RWI) Team, complementing one of the largest such practices in the US. Mr. Shapiro and Mr. Dubner advise carriers and managing general agents with RWI claims arising from mergers and acquisitions. They also have extensive experience with a variety of complex commercial litigations and arbitrations, with a focus on reinsurance, insurance and antitrust disputes. Mr. Shapiro is an adjunct professor at the Northwestern Pritzker School of Law and Mr. Dubner is a panelist on the AAA National Roster of Arbitrators. They were previously co-chairs of the RWI Practice Group at Porter Wright Morris & Arthur.

Mercer, Chicago Mercer has named Beth Kirk Malecki as US Central Market CEO. As a Senior Partner based in Chicago, Beth will focus on leading the US Central Market in continued commercial success and deliver inclusive and engaging experiences to Mercer’s colleagues and clients. Beth has over 25 years of experience in market leadership and client management. In her previous roles at Mercer, she led the Illinois and Wisconsin markets and was Senior Client Manager. Prior to joining Mercer in 2011, Beth was at Hewitt Associates, now Aon, for 17 years in client-facing roles. She holds a Bachelor of Science in actuarial mathematics from the University of Michigan. Since 2015, Beth has been an active member in The Chicago Network, and now serves on the board.

JLL welcomes Dan Svachula to the organization’s Suburban Brokerage team as Executive Vice President. With over 21 years of commercial real estate experience, Dan has a successful track record as a senior suburban agency broker and trusted advisor. Before joining JLL, Dan spent over 10 years as an Agency Broker for Cushman & Wake eld. As Executive Vice President, Dan will focus on growing the JLL Suburban Agency Leasing portfolio while continuing to support existing clients.

REAL ESTATE

JLL, Chicago

PROFESSIONAL SERVICES

Sikich, Naperville

Professional services company Sikich announces Dimitri Wilder will spearhead Diversity, Equity, Inclusion & Belonging. To support the company’s exponential growth and people- rst culture, Wilder will help deliver DEIB strategies and initiatives that will continue to drive innovation for its more than 1,400 team members serving more than 15,000 clients.

Allyson Birchmeier comes to JLL with 10 years of experience in the commercial real estate industry, including four years dedicated to tenant representation in downtown Chicago and six years focused on agency leasing in the suburbs. As Senior Associate, she joins JLL’s Suburban Agency Team representing owners of well-located, Class A of ce space. Allyson brings a variety of large transactions and space renewal expertise, backed by the accolade of NAIOP Broker Transaction of the Year in 2018.

Youngquist

McDonald

REAL ESTATE

Wintrust ESOP Finance, Chicago

LAW

Shapiro Dubner

McDonald Hopkins, Chicago

LAW

DarwinPW Realty/CORFAC International, Elmhurst

Winners Announced of 2022 Illinois’ Healthiest Employers Awards Event

By Jane Adler

Spotlighting the best “people rst” organizations that take a proactive approach to employee health, the state’s top corporate well-being programs were recently honored at the 2022 Illinois’ Healthiest Employers Awards. Global health insurer Cigna sponsored the virtual event which this year focused on whole person health, both mind and body. is is the seventh year Cigna has sponsored the event which was hosted by Crain’s Content Studio and emceed by Crain’s Chicago Business Publisher and Executive Editor Jim Kirk.

“ ese award-winning organizations are prioritizing workforce well-being,” said Lisa Buckley, vice president, account management, Cigna Midwest Market. “ ey understand that a healthy, thriving workforce is a true driver of productivity and business success.”

e event kicked o with a presentation by Derrick Carpenter on how to live life fully. A leader in the implementation of positive psychology to create high-performance teamwork, Carpenter explained how to

build mental well-being, resilience, character strength and engagement.

Carpenter’s presentation was followed by a panel discussion representing human resource leaders from a cross section of area industries. Kirk led the discussion on how employers can support their workforce with wellness initiatives including behavioral health and how to thrive in life and in work.

e panelists emphasized their holistic approach to employee wellness. “We encourage employees to achieve their wellness goals inside and outside of work,” said panelist Melissa Vagnarelli, manager, HR operations,

managers. “We also promote giving back to the community,” said panelist Lindsay Pierson, bene ts manager, William Blair.

e law rm Seyfarth Shaw LLP created “Seyfarth Life,” a targeted e ort to increase the rm’s organizational resiliency through a focus on well-being and performance. Di erent approaches include a growing list of initiatives, programs and bene ts, such as mindfulness sessions, resiliency training and coaching. “Organizations need to pay attention and listen to employees and respond to their speci c needs,” said panelist Tracy Billows, co-managing partner and partner, Labor and Employment Department, Seyfarth Shaw.

West Monroe Partners, an integrated digital services company with 2,400 employees.

West Monroe’s employee-led wellness committee creates programs to meet the company’s four wellness pillars: educate, engage, empower and enable employees to live their best lives. Companywide listening sessions include topics such as how to handle stress and burnout, cognitive behavioral therapy and the challenges of caregiving.

Focused on all aspects of employee health, William Blair, an investment banking and private wealth management rm, o ers initiatives on physical, mental, emotional, social and nancial well-being. Programs include webinars, wellness fairs and access to internal nancial advisors and private wealth

Five years ago, the Chicago Transit Authority (CTA) a wellness team to help create programs and communicate with the organization’s 10,000 employees. A successful initiative has been the introduction of tness and life coaches, working with employees who are o en di cult to reach because the workforce is so spread out. “We nd out what employees need,” said panelist Michael Bowen, director of compensation and bene ts, CTA.

Kirk asked the panelists about the connection between a healthy workforce and business success.

Rest is one of the best ways to decrease stress and increase the ability to focus and bring one’s

self to work, according to

MICHAEL

LINDSAY

MELISSA

LISA

TRACY

at Sayfer Shaw. “I am a strong advocate of a healthy work-life balance,” she said. Since the start of pandemic, the rm has implemented paid caregiver leave of up to four weeks, as well as a COVID leave policy for those recovering from the virus or for those caring for someone sick with COVID.

Medical expenses are a big cost at the CTA. A number of workers do not have a primary care physician, instead relying on emergency room visits when they get sick or injured. e CTA’s wellness program is used to educate the workforce and establish relationships with primary care providers. “We work with our medical vendors,” said Bowen.

Stress reduction, mental health and behavioral counseling are key elements of a

well-rounded wellness program, the panelists agreed. ey rely on a variety of resources including the company’s Employee Assistance Program (EAP), and apps such as Headspace and Calm.

e CTA launched a program called “Stories from the Street.” Employees come together to share their stories on how to handle stressful situations, such as unruly passengers. “Employees know they are not alone,” said Bowen, adding that the program has been so well-received by employees that it is being expanded.

Executives at Seyfarth Shaw participated in a mental health rst responder training program. It focused on how to recognize behavior problems at work and how to step in to help. “We learned how to have those

di cult conversations,” said Billows. Kirk asked, “What has had the greatest impact to promote a healthy lifestyle among employees?”

West Monroe launched a wellness hub where employees can access information about programs and activities. “It has had a big impact on engagement with our employees,” Vagnarelli said.

William Blair combined its EAP and advocacy providers. Employees can get help from one source on a variety of issues from mental health guidance and how to navigate the healthcare system as well as personal administrative tasks such as booking travel.

“It frees employees to focus on what matters most,” Pierson said.

e online event concluded with the announcement of the winners of the 2022 Illinois’ Healthiest Employers Awards. Contestants are evaluated on six areas of corporate health and wellness. e organizations are arranged by size and compete with like-sized groups. e award is powered and scored by Springbuk, a health analytics company.

e 1st place winners for 2022 are: Connor and Gallagher OneSource; V3 Companies; Kearney; Riverside Health; and U-Haul International.

Employees

By Jane Adler

Ascompanies compete for talent, worker well-being is a priority to help retain the best employees. Workplace wellness programs can make a di erence. Here are seven proven program ideas, tips and activities from the nalists of the 2022 Illinois’ Healthiest Employers Awards.

1) ADDRESS STRESS. e last two years have been stressful, and more companies are addressing the issue through their wellness programs to include more mental health programming and activities. “Wellness programs can play a key role in improving employee engagement and reducing turnover,” says Amy Zucchero, wellness manager at Connor & Gallagher OneSource (1st place, 2-99 employees) Mindfulness, stress management, nancial well-being and social health are key elements of the Connor & Gallagher program, along with physical health and nutrition. Blackstone Environmental (3rd place, 2-99 employees) implemented a fatigue management policy to raise awareness about stress and burnout which have been heightened by the pandemic. e company continues to work in a hybrid structure and the wellness program provides an important touch point to remind employees their company cares about them and their health.

2) MIX IT UP. Wellness programs need to be refreshed to keep employees engaged. For example, V3 Companies (1st place, 100-499 employees) has the Revitalize program which is designed to evolve over time. Workplace challenges now go well beyond walking events. For example, a yoga event/ fundraiser was held for a local women’s shelter. e “Oh the Places You’ll Go” challenge allowed participants to pick their personal goals for the year. Regional challenges are back in person. Each o ce sets up an activity for employees and their families. One o ce hosted a canoe trip and picnic. Another o ce had a 5K walk/run and picnic. Yet another o ce had a cross country skiing event.

3) PARTNER UP. At Kearney (1st place, 500-1,499 employees), a global management consulting rm, one of its unique bene ts is LifeCare Complete by Care.com. Employees have access to life specialists for coaching, free tutoring, subsidized in-home and center-based backup childcare, support for aging parents and discounts for everyday essentials. To support mental mental health issues during the pandemic, virtual care for employees was made available through Doctor on Demand. Kearney covers 100% of the cost of virtual therapy. “Our wellness programs signal to employees that we care about the whole person, not just their productivity,” says Todd Bolhouse, director of Bene ts & Payroll, Kearney. Moving truck rental company U-Haul (1st place, 5,000+ employees) partnered with Rx Savings Solutions saving more than $873,000 since March 2020 on pharmacy costs. About 97% of employees are enrolled in the program.

4) KNOW YOUR EMPLOYEES. U-Haul also recently launched a type 2 diabetes program, which all team members can access. Diabetes has been one of the biggest health concerns for the company resulting in costly medical claims. e program is meant to reverse the disease and improve the health and quality of life of employees.

5) LEVERAGE COMPANY CULTURE. e values of heart, integrity, excellence and respect are woven throughout the bene t and wellness programs at AssetMark (3rd place, 5001,499 employees). In February, for Heart Health Month, the

The pandemic was a great teacher, highlighting the need for innovative wellness approaches.

company organized a “kudogram” fundraiser on Valentine’s Day. Associates sent online “kudos” to show appreciation for their co-workers, A total of 847 kudograms were sent, raising $3,000 for the American Heart Association. e company also held a virtual blood drive using the Red Cross donor’s app to schedule and track appointments. e blood drive impacted 400 lives and raised $4,000.

6) TAP LESSONS LEARNED. e pandemic was a great teacher, highlighting the need for innovative wellness approaches. Riverside Healthcare (1st place, 1,500 -4,999 employees) added new services, including onsite licensed counselors. Group and one-on-one sessions are held following adverse, traumatic or patient events that result in death or serious harm. Counselors visit hospital units to talk with sta about stress and how to improve their mental well-being. Riverside hosts “Relax-a-Lunches” both in-person and virtually. Trained sta in mental health rst aid provides the sta with information on how to identify a mental health crisis and e ectively intervene. Twice daily virtual support groups address COVID-related stress. Mindful movement is a twice-weekly virtual class aimed to decrease mental and emotional distress. Riverside also launched a campaign to remove the stigmatism related to resourcing mental health services. “Healthcare workers have faced several di cult years and at Riverside we have worked on strengthening and growing our mental health support services for our employees,” says Riverside Chief Operating O cer Kyle Benoit.

7) SUPPORT EMPLOYEES OUTSIDE WORK. Family and personal problems can easily spill over into the workplace, impacting productivity and employee engagement. Shop Smart (2nd place, 2-99 employees) o ers a working parent bene t program for employees facing childcare challenges. e program provides services to help educate and entertain

children while freeing up time for parents to focus on work or daily chores. Shop Smart reimburses up to $80 per child for a subscription to services such as Adventure Academy, Prodigy Math, and others. A working parent employee resource group connected and helped families during school closures, hybrid models and returning to the classroom. A caregiver’s “Slack” channel was available for employees to share advice, ask questions, nd resources, and provide support.

Comcast (2nd place, 5,000+ employees) o ers RethinkCare, a resource for anyone caring for a child, including children with a behavior challenge or developmental disability. Services include seven hours of consultation per year with a behavior expert, unlimited access to RethinkCare’s website and mobile app.

“Supporting our employees is just part of our overall culture at Comcast,” says Julie Maleski, vice president, Human Resources, Comcast.

Four steps to turn your health plan into a growth plan

Here’s how:

1. Prove to the C-suite that healthy employees equal healthy business.

As HR leaders, we can help executives across organizations understand the role that employee health plays in business performance and transformation. In fact, on average, companies with high employee engagement are 23% more pro table. ose with high scores in corporate health and wellness selfassessments perform better than the overall S&P 500 Index.

Cindy Ryan is the Chief Human Resources Of cer at Cigna™ Corporation. As CHRO, Cindy is responsible for aligning Cigna’s talent strategy with the needs of the business to help the company grow and employees thrive. Cindy also oversees the company’s diversity, equity, and inclusion (DEI) efforts, and oversees the company’s charitable giving strategy, inclusive of the Cigna Foundation.

According to the Economist Intelligence report1, commissioned by Cigna, 45% of senior executives attribute a healthy workforce to greater productivity, 37% of them say a healthy workforce leads to stronger employee morale and motivation and 37% of senior execs say a healthy workforce results in greater retention and loyalty.* During today’s Great Resignation, in which nearly 4 million workers are quitting their jobs each month, investments that drive higher workforce morale, motivation, retention and loyalty cannot be ignored.

relationships that deliver a ordable and e ective care and point out exible and a ordable in-network pharmacies for employees.

BY CINDY RYAN

COVID-19, the biggest public health crisis in modern history, created a tipping point for every business. e pandemic led the global workforce to become overwhelmed, overworked and burned out, and employers have been challenged by unsustainable health care costs and complexity.

ere’s no denying that health care is more important than ever, but can something o en viewed as costly for companies help grow your business? I’m convinced HR professionals can use today’s heightened awareness of health and well-being as an opportunity to drive greater value for the businesses we serve. Your health plan can actually be a growth plan, bringing unmatched value to your organization.

2. Get Buy-in from your CFO.

Speak your chief nancial o cer’s language by showing health care’s return on investment. Demonstrate how your plan ensures nancial growth and stability by helping to manage nancial risk for your company and employees. Illustrate solutions that address expensive health risks and provide cost protection, such as stoploss insurance or other nancial protections. Highlight specialty drug cost reductions for the plan and employees. Also, look for compelling clinical performance guarantees that hold the insurance company accountable for improving outcomes for the highest-cost medical conditions. You’ll also want to showcase high-performing provider

Finally, it is important show your CFO how your health plan engages employees on an individual level. Show that guiding employees to the right care, at the right place, at the right time improves productivity and outcomes. is, in turn, lowers the cost of care for each employee –creating greater a ordability and productivity for your business.

3. Choose the right key performance indicator.

You know a healthier workforce translates to higher productivity, better morale and greater employee retention. Now you have to prove it.

You’ve worked hard to nurture a healthy workforce culture by promoting healthy practices that reduce stress and burnout while boosting productivity, engagement and retention for employees. Use employee surveys to get a pulse on morale, satisfaction, loyalty and

engagement. Measure productivity in terms of absenteeism, presenteeism and revenue per employee. Ask your insurance carrier to demonstrate performance of health outcomes.

If your workforce is truly healthier, you’ll see an improvement from baseline metrics. Beyond the basics, look for indicators of the resilience and vitality of your workforce to ensure they’re not just surviving –but thriving.

4. Select the right health care partner.

If you haven’t traditionally focused on employee health and well-being, it can be hard to gure out where to start. Find a partner who will help build wellness plans to meet your company’s needs and those of your employees. E orts that focus on improving the health and well-being of your workforce can translate to more productivity and better performance of your business. is can also make health care more a ordable, predictable and simple for both your business and employees. Your health care partner can help your business prepare for the future by continuously innovating to address the health challenges of today and tomorrow.

Consider switching plans if your health care partner isn’t meeting this objective – because better health care for your employees should drive better business outcomes.

Switching plans may seem like a hassle, but if a new partner can turn your health plan into a growth plan – it’s well worth the change. Plus, a good partner will make the integration and implementation of bene ts simple and easy for your

team, while ensuring employees have easy access to care from day one. ey’ll also ease the burden of bene ts communication, knowing that having employees who understand their bene ts is critical to engagement.

HR executives have a tremendous opportunity to drive greater business value and growth through better employee health, well-being and engagement. Use the opportunity to establish a culture of health. Generate vitality within your workforce to help your organization meet its objectives, and lean into your health care partner for additional support. A er all, the healthiest businesses have the healthiest employees.

(1) e Economist, “ e Employer Imperative: Driving US Economic Vitality through a Healthy, Productive Workforce,” survey conducted by the Economist Intelligence Unit (EIU), commissioned by Cigna, in January and February 2021 among 1,200 consumers and 600 executives. https://healthyworkforce. economist.com

Product availability may vary by location and plan type and is subject to change. All group health insurance policies and health bene t plans contain exclusions and limitations. For costs and details of coverage, contact a Cigna representative.

All Cigna products and services are provided exclusively by or through operating subsidiaries of Cigna Corporation, including Cigna Health and Life Insurance Company (CHLIC) or its a liates.

O ered by Cigna Health and Life Insurance Company.

Trophy properties are feeling the pinch from rate increases

Rising rates are biting just about everyone in commercial real es tate. ey’re making it harder to nance acquisitions and devel opments, and they’re depressing property values.

But rate increases are especial ly hard on landlords with oat ing-rate debt. Unlike xed-rate loans, which require borrowers to pay the same amount every month, oating-rate loan pay ments uctuate monthly—a good thing when rates are falling, bad when they’re rising. ough oat ing-rate debt is riskier, many in vestors like it because they can use it to borrow more against their properties and can pay the debt back early without a penalty.

Climbing interest rates come at an especially bad time for many of ce landlords grappling with high vacancies. With more employees working remotely, many business es are cutting back on o ce space.

at puts some landlords in a tight spot, with falling rental revenue and rising interest costs.

“It’s an awful lot of headwinds hitting these guys at once,” says Manus Clancy, senior managing director at Trepp, a New Yorkbased research rm that tracks commercial mortgage-backed securities, or CMBS.

One example: One South Wacker, a 40-story o ce tower in the West Loop carrying about $260 million in oating-rate debt. After losing its biggest tenant, consult ing rm RSM, last year, the build ing stopped generating enough

revenue to cover mortgage pay ments, according to Bloomberg loan data. And that was before in terest rates began to rise.

Now the question is whether the property’s owner, New York-based 601W, can hang on long enough to pull o a turnaround. A 601W representative declined to com ment. e rm’s other Chicago properties include the Old Post O ce and the Civic Opera Build ing, which is in foreclosure.

About 25% of all outstanding CMBS loans and 60% of all out standing bank commercial real estate loans are oating rate, ac cording to Trepp.

Rising rates are not necessarily a crisis in the making. While rates have jumped this year—one key benchmark for variable-rate loans, the one-month London Interbank O ered Rate, or LIBOR, has ris en from 0.10% in early January to 3.59% this month—they’re still low er than they were 15 years ago, be fore the nancial crisis. How much higher they go will depends on the Fed’s rate moves in the coming months.

Most investors that nance big proper ties with oating-rate loans also have some protection against ris ing rates. Lenders require them to buy interest rate caps, or hedges that put a ceiling on how much in terest borrowers pay.

Blackstone, for instance, has seen the interest rate on the $1.33 billion mortgage it took out on the Willis Tower in 2018 rise to 4.97% from 1.48% at the beginning of the year. e New York private-equity rm, one of the world’s biggest real estate investors, also bought a rate cap that limits its potential interest cost to 5.38%.

Interest rate caps exist mainly to protect lenders, not borrowers.

Typically, lenders require enough of a cap to ensure that borrowers can continue making mortgage payments and avoid default.

Here’s the rub: Interest rate caps expire, often when a commercial mortgage reaches its initial matu rity date. ough a property own er often can extend the due date, they also must also buy a new in terest rate cap. But the cost of caps has skyrocketed alongside interest rates. A cap that cost $50,000 just a year ago could easily cost 20 times that today, further eroding a land lord’s pro t.

Moreover, caps don’t do much to protect pro t margins. High er rates have already squeezed the Willis Tower’s margin a lot: Blackstone’s monthly mortgage payment rose to $4.64 million in October, up from $1.70 million in January, according to Bloomberg loan data extracted from federal securities lings.

Based on the October payment, Blackstone’s interest costs work out to more than $56 million an nually, up from a recent low of $19.9 million last year. If rates jump enough to trigger the loan’s interest rate cap, annual debt costs could balloon to $71 million.

Still, Willis Tower has held up better than other downtown o ce

buildings, adding tenants over the past several months. e 110-story tower generated net cash ow be fore debt payments of $81.5 mil lion in 2021 and is on track to top that this year. So unless disaster strikes, rising rates shouldn’t push the building into the red.

Blackstone declines to answer questions about Willis Tower’s debt, issuing a statement instead.

“We expect the tower to contin ue its strong performance through various economic environments,” the statement says.

Like Blackstone, many land lords with variable-rate loans will su er nancially, but interest rate caps should help most avoid ca tastrophe.

“It will be painful,” says mort gage broker David Hendrickson, senior managing director in the Chicago o ce of Walker & Dun lop. “Owners will be less pro t able. It doesn’t mean they won’t be pro table.”

at’s true for Oakbrook Cen ter, too. ough many big region al malls are struggling these days, Oakbrook isn’t one of them. In 2020, New York-based Brook eld re nanced the 1.2-million-squarefoot property in Oak Brook with $475 million in debt, including a $319 million oating-rate CMBS

loan.

e loan carries a current in terest rate of 6.19%, up from 2.8% in January. e jump pushed Brook eld’s monthly payment to $1.36 million in October, up from $663,667 in January, according to Bloomberg data.

Still, the mall is generating more than enough cash to cover its debt payments. So while the rate in creases hurt, they shouldn’t push the property into the danger zone.

“We have no concern about Oak brook Center,” a Brook eld spokes woman says in an email. “ e op erating fundamentals are the best they have ever been and we are looking forward to the future of our thriving shopping center.”

What’s murky is the status of the loan’s interest rate cap. A loan document shows that the initial ceiling was 5.7%, which would mean the cap is already covering the higher interest costs.

But the loan matures next month, and Brook eld plans to extend the maturity date for one year, according to Bloomberg. at means Brook eld will have to buy a new cap, likely at a much higher price than the original. Whether it’s through higher mortgage pay ments or higher cap prices, rising rates pack a punch.

Credit card business booming at Avant, despite high interest rates and defaults

AVANT from Page 3

Since that time, Avant’s an nualized net charge-o rate on those loans has averaged more than 11%. Kroll estimates that more than 15% of the loans will be charged o within another two years, when the securities are due to be paid o . at’s within the range Avant told Kroll it would ex perience when it issued the secu rities, so that high failure rate isn’t a surprise.

Contrast that with a far larger hometown credit card operation, Discover Financial Services. e Riverwoods-based card compa ny’s annualized net charge-o rate for the rst half of the year was 2%.

Of course, there is a signi cant di erence in the types of consum ers the two companies lend to. Dis cover limits itself almost exclusive ly to consumers with good credit. Avant’s customer base ranges from those with credit scores as low as 550 (subprime) to as high as

720 (prime). Bochenek makes no apologies, saying Avant is provid ing a service for consumers whose alternatives otherwise would be costlier when in need of credit.

“If Avant and other (subprime lenders) aren’t there to provide access, what is the alternative?” he says. “ e alternative is typically extremely high-cost payday-type lenders.”

at’s a strong argument in fa vor of the high-rate term loans that Avant’s original business model favored and that the rm contin ues to o er. ose are aimed at consumers facing an unanticipat ed health care or car repair bill and are paid o in monthly in stallments over the course of a few years.

ose are transactional arrange ments and generally don’t produce an ongoing relationship with the company. A credit card, by con trast, is designed to result in cus tomers who stay over the long haul.

A consumer also doesn’t obtain

a credit card necessarily to cover an emergency expense.

Bochenek allows that the cus tomer relationships are di erent between the two products. “A credit card product is a consumer utility,” he says.

Avant started its card business in 2017 mainly to serve consumers who didn’t qualify for a high-rate term loan. e idea was to give them a card with a very low cred it line—say, $300—and improve their credit standing by using the card and keeping current on it.

Today, the card is a standalone business, marketed to consum ers whether they’re interested in a personal loan or not. It’s also where Avant is pouring its market ing dollars and attempting to build a brand. In August, Avant unveiled a multiyear arrangement with Ma jor League Soccer to become the league’s o cial card company and o er a fan-a nity card.

For reputational and business reasons, then, it’s in card compa

nies’ interest to keep their custom ers current on their loans. In Dis cover’s case, for example, net card loan charge-o s topped out at 8% in 2010 as the company slogged through the Great Recession, but it remained pro table.

An 11% default rate would be terrible nancially for Discover. But that’s in large part due to the lower interest rates it charges its higher-rated customer base. Av erage interest in the second quar ter for Discover card holders was 12.8%.

For Avant card loans, the aver age interest is 28.5%, according to Kroll’s September report.

For those customers who default on their Avant cards, the company does report to the credit bureaus, Bochenek says. So the 15% of con sumers whose ultimate default is baked into Avant’s card business model will see their credit standing worsened by the experience.

Responds Bochenek, “We de sign our products and services in a

very transparent and understand able way.”

As for Avant’s future and current nancial status, Bochenek de clines to say whether the company is pro table. But he says there’s no need to raise capital—either equi ty or debt. Avant last raised equity in 2015.

A functioning securitization market is key to keeping Avant from taking on more debt in an era of soaring interesting rates or raising equity at valuations likely to be well below what they were seven years ago. e company will need to keep tapping investors for packages of the loans it generates. To do that, the loans will need to perform as advertised.

With the potential for recession looming, that could be challeng ing. So far, Bochenek says, Avant has seen nothing surprising in how its card borrowers are doing nan cially. But it’s keeping a close eye.

“We’re preparing like everybody else,” he says.

“IT’S AN AWFUL LOT OF HEADWINDS HITTING THESE GUYS AT ONCE.”

Manus Clancy, senior managing director at Trepp

Crate & Barrel at Oakbrook Center

Driven by natural disasters, cyber risks and pandemic-related changes such as more employees working remotely, many areas of law have experienced shifts in their growth trajectories in recent years. These trends have led to new challenges and opportunities for law rms, businesses and consumers alike. A panel of local attorneys spoke with Crain’s Content Studio to share their insights on the state of litigation today and what has led up to this moment.

Are there certain areas of law that have seen increased activity since the pandemic?

PAUL A. DEL AGUILA

Partner

Benesch pdelaguila@beneschlaw.com 312-212-4938

Paul A. Del Aguila is an accomplished litigator and has extensive experience litigating product liability and complex commercial matters. Over the past 20 years, he has protected the interests of local, regional, national and international clients in high-stakes disputes. He also provides pre-dispute counseling and risk management advice to clients in the pharmaceutical, medical device, automotive, food and beverage, construction and real estate industries. Del Aguila has served as coordinating and national counsel for some of the world’s largest companies, litigating high-pro le product liability matters. He also defends manufacturers of consumer and industrial products against claims of product defects. He has advocated for clients in putative class actions and multidistrict litigations involving hundreds of cases, including against the most prominent mass tort plaintiff attorneys and rms in the United States.

Paul A. Del Aguila: Initially, we saw an increase in contract, insurance coverage and securities case lings. Now we are seeing more employment-related litigation as remote-work environments and evolving government regulations have given rise to a variety of legal issues for both employees and employers. We are also seeing an increase in complex commercial litigation, especially trade secret disputes and class actions touching on various regulatory schemes and industries. In the consumer product realm, there has been a noticeable uptick in litigation involving ventilation and air puri cation products and smart technology, as well as litigation alleging misleading labeling practices. Lastly, companies are bracing for a surge in environmental, social and governance (ESG)-related litigation and are developing risk management practices to minimize the risk of ESG-related litigation.

Which practice areas, if any, have seen a decrease in activity since the pandemic?

Del Aguila: For the most part, litigation has not seen much of a downturn since the pandemic—other than the general stay applying to all litigation during the early stages of the pandemic—but we have noticed that a few practice areas, such as commodities, so intellectual property, and environmental, have not been as active as years past.

What are the emerging areas of practice and why have these areas grown over the past few years?

Del Aguila: e rapid increase of worldwide data protection regulations, such as the European Union’s General Data Protection Regulation; the ever-evolving data protection regulations in the United States; the storage of signi cant volumes of client and nonpublic data; and remote work practices have created signi cant data privacy and cybersecurity litigation risks for companies. Defamation is another emerging practice area as our fractious political culture and

increasing use of social media has seen a corresponding increase in defamation cases. Lastly, cannabis law is a quickly emerging area of law given the rapidly changing political and regulatory climate.

What is a recent development that may impact the demand for legal services?

Del Aguila: The increase of litigation funding has provided plaintiffs’ firms with significant resources. Sophisticated firms

are using these resources to better investigate claims prior to filing suit, craft stronger complaints able to withstand initial motion practice, and file more high-profile and high-stakes lawsuits, all the while pursuing innovative approaches to litigation. Businesses should therefore develop short and longterm strategies from the onset of litigation.

Is there any recent legislation that may impact the demand for legal services?

Del Aguila: In 2021, the Biden Administration issued an Executive Order on Promoting Competition in the American Economy, highlighting the “whole of government” approach and focus on non-competes and on perceived anti-competitive activities and conditions generally. Employers should continue assessing their postemployment agreements to ensure they contain adequate protections related to con dentiality and intellectual property, and continue keeping track of any federal action on these types of agreements.

“DEFAMATION IS ANOTHER EMERGING PRACTICE AREA AS OUR FRACTIOUS POLITICAL CULTURE AND INCREASING USE OF SOCIAL MEDIA HAS SEEN A CORRESPONDING INCREASE IN DEFAMATION CASES.”

— PAUL A. DEL AGUILA, BENESCH

e pandemic, climate change and cyber risks are behind many of today’s trends in law.

Recent data shows that insurance litigation increased nearly 50% between 2017 and 2021. What long-term trends are behind this signi cant uptick in litigation?

Katheleen Ehrhart: e biggest driver for the increased amount of litigation has been COVID. Business interruption and supply chain shortages impacted business and individuals alike, and the resulting

insurance claims led the way to the sharp uptick in the amount of litigation. ere has also been a steady increase of litigation surrounding hurricanes, with over a quarter of federal court cases related to insurance resulting from a hurricane-related claim. While the early reports are that a large number of those impacted by Hurricane Ian were without ood coverage, given the losses incurred

Is litigation risk insurance changing the cost/bene t analysis of businesses in terms of managing their legal risks? And what litigation can we expect as a result of adverse judgment insurance?

Ehrhart: Litigation risk insurance is relatively new and o ers businesses a chance to manage legal risk that

type of insurance can o er a defendant a counterbalance to the strategic asymmetry of large class actions (in particular litigation nanced plainti s) where the plainti s’ risk is distributed across multiple entities or individuals but an uninsured defendant is burdened with the entire risk. is can decrease the pressure on defendants to consider an early and unattractive settlement o er instead, in particular with lawsuits with questionable merit.

Where is COVID having the most impact on litigation besides the insurance industry?

Ehrhart: While various decisions by employers to put into place vaccination and other COVID-related

Cyber risk has already been on the forefront of insurers minds but with the COVID pandemic and the increased use of digital technology by remote employees, blurring the lines between o ce and home, companies and individuals are further open to cyber risks and attacks. With the increase in use and companies’ maintenance of cyber risk policies, insurers have tightened terms and conditions to reduce unexpected losses. With this tightening coverage, coverage challenges and litigation are sure to follow.

For years the reinsurance/ insurance industry has resolved disputes through the arbitration process. Is arbitration still a viable route? Does it bring any real time or cost ef ciencies as compared to litigation?

by Florida residents as well as other states, the amount of weather-related coverage disputes is likely to grow over the next year or two.

might stem from litigation. Policies cover di erent aspects of litigation risk such as adverse judgment insurance, providing coverage for a defendant in the event of an adverse judgment. is

requirements have been the most evident drivers of litigation, some less obvious COVID-related labor and employment issues have begun to surface, as well. Employers have to determine how to navigate remote or hybrid work, as well as what tools can be used to monitor productivity. e law is not clear about whether monitoring is a privacy or con dentiality issue.

Another issue is the status of mental health days and whether companies who started providing them due to the stressful e ects of the pandemic will continue to do so. Should employees be compensated for these and, if so, do policy initiatives need to be updated? Employment issues such as these continue to arise, necessitating legal counsel, as well as the anticipation of whether decisions surrounding these issues will open up the company to potential challenges regarding new policies.

What will be the next “asbestos-claims” type issue to hit the insurance industry and drive litigation?

Ehrhart: It’s unclear whether either will rise to the level of asbestos-type claim litigation, but two of the biggest risks insurers are keeping their eyes on are climate change and cyber-risk. With extreme weather events brought by climate change expected to keep rising, insurance professionals expect rising claims and related challenges. ese go beyond just the destruction of homes and businesses, as seen by the recent Hurricane Ian, but can put entire supply chain, food and power systems at risk.

Ehrhart: Arbitration is still alive and well in the reinsurance/insurance industry. It gives companies a forum that provides, and in fact invites, issues to be decided by arbitrators generally steeped in industry knowledge and with a good handle on custom and practice. Understanding how the industry and its participants work together can be critical in deciding issues between reinsurers and insurance companies which more o en than not require specialized knowledge and understanding related to complicated insurance concepts. While the size of any arbitration (amount of discovery, motion practice, etc.) is naturally driven by the size of monetary value at issue, more often than not, arbitrations still provide the participants a faster and more cost-efficient result than they may get if they were to litigate those issues in court. Arbitrations can often be completed within 12 to 18 months.

What is the most important consideration an insurance or reinsurance company should analyze before agreeing to an arbitration clause in their contracts?

Ehrhart: Companies should consider whether the arbitration selection clause should include requirements for the arbitrator’s experience to ensure the preferred in-depth industry knowledge while being cautious to not narrow the number of eligible arbitrators to serve. In addition, the company should consider if it wants a single arbitrator deciding its issues or an arbitration panel, including potentially party arbitrators. While one arbitrator can be less expensive and easier to schedule hearing time, a three-person panel may o er a more balanced view with di erent experiences and perspectives.

“THERE HAS ALSO BEEN A STEADY INCREASE OF LITIGATION SURROUNDING HURRICANES, WITH OVER A QUARTER OF FEDERAL COURT CASES RELATED TO

RESULTING FROM A HURRICANE-RELATED CLAIM.”

—KATHELEEN EHRHART, FREEBORN & PETERS LLP

are behind many of today’s trends in law.

CASEY STALTER

President,

Thompson

cstalter@thompson

CASEY STALTER

What recent trends are you seeing in the litigation space?

Casey Stalter: Environmental, social and governance (ESG) issues have been thrust into the spotlight within the last 12 months. Increased scrutiny and disclosure obligations for ESG compliance are requiring board members and senior management to focus their e orts on minimizing the risk of potential litigation. Supply chain challenges, climate change, activist investors and shareholder litigation are threats corporations have to address as ESG issues continue to emerge and evolve.

Cybersecurity litigation is another area of concern. No organization is immune to a cyber attack and an event can be devastating for a business. e ever-changing legal and regulatory landscape, the vulnerabilities created with employees working remotely and

proactive and creative in their e orts. Law rms that empower employee ownership of their work experience, o ering more exible work schedules and work locations, are the employers of choice. ey are also elevating ino ce experiences as more attorneys and sta return to their o ces, redesigning workspaces to be more collaborative and purposeful. People are attracted to o ce spaces conducive to the connections and mentoring that drive career development, so rms are investing in re ning work environments that make being in an o ce more engaging.

Regardless of the trends, a successful attract-and-retain strategy always has to go beyond salary and bonus increases. Flexibility, connection, culture, opportunity — including paths to explore di erent practice areas within a rm and cultivate new expertise — are elements that make a rm a destination for top talent.

Are there emerging risks that rms should be aware of and working to mitigate, and how do the risks differ by rm size?

Stalter: Cybersecurity is a daunting challenge for every rm and it’s not going away anytime soon. e technology that rms (both large and small) need to implement seems to

of emerging technologies, government regulation, response plans and employee training, but if you fall short, the impact can be devastating. Mitigating threats and their potential impact is de nitely not something to take on without the support of specialized experts.

What are clients looking for from law rms and what factors are in uencing their decisions?

Stalter: e demand for legal services has never been greater. But client expectations are also at an alltime high. Clients are looking for law rm partners to go above and beyond traditional legal services and deliver an experience that not all rms can provide. ey also want it done coste ectively, which creates additional pressure.

Clients want more responsiveness, better communication and an experience that aligns with what they’ve come to expect in other areas of their lives. Technology is key. Firms are innovating to meet expectations and manage costs. Using data more e ectively and automating elements of the practice have helped law rms evolve with e ciency and be attractive to prospective clients. Law rms that prioritize integrating technology that enhances process and client experience will be best suited to deliver on what clients want and need.

Are there any takeaways from navigating the COVID environment that will be valuable going forward?

Stalter: COVID-19 has been negative in many ways, but some positives have emerged. Law rms have seen increased demand for legal services, which has driven revenue growth. ey’ve become more exible in terms of the work experience they provide to attorneys and sta , whether it’s getting comfortable with remote work or allowing nontraditional schedules, which has elevated overall job satisfaction. Law rms are becoming much more intentional in supporting attorney and sta well-being, investing in

internal and external strategies to help attorneys navigate various challenges, from wellness apps to engagement programs to encouraging (or requiring) attorneys to take PTO and wellness days. Most of all, many rms have discovered a new level of resilience and creativity that will be critical to their growth and success over the long term.

How are economic conditions, in ation in particular, affecting strategy?

Stalter: Due to current economic conditions, law rms are putting strategic plans in place that will outpace their peers. Firms need to consider implementing both shortand long-term strategies to combat a shi ing economic and in ationary environment. Fee structure adjustments are one change rms are making. ey are considering o ering clients a blended rate between work done by both partners and associates on a related matter. Other strategies include marking changes to hourly rates, moving towards monthly retainers and performing certain work on a contingency fee basis. As clients tighten their belts ahead of a recession or look to bring potential work inhouse, law rms need to reinvent and reimagine their o erings to their client base.

the increased sophistication of bad actors have fueled a new wave of cyber related litigation.

What are rms doing well to enhance their competitiveness in recruiting and retaining attorneys/staff?

Stalter: e current landscape is as competitive as it has ever been. is is motivating law rms to be more

grow on a quarterly basis, yet there’s still no guarantee you’ll prevent a cyber event. Ransomware attacks are still a major cause for concern for rms, and while the attacks on larger rms receive most of the press, rms of all sizes are vulnerable. Firms are placing an emphasis on updating and auditing their systems and processes internally and externally. It can be overwhelming to establish and maintain procedures and stay on top

CHALLENGES,

INVESTORS AND

LITIGATION ARE THREATS

OPPORTUNITIES

CAREER OPPORTUNITIES

OPPORTUNITIES

Peoples’ pipe upgrade likely to blow budget

Questions about Peoples’ proj ect are growing more insistent as the utility faces a critical year in Spring eld. Authorization for a monthly surcharge Peoples im poses on Chicagoans’ gas bills to help nance the work expires at the end of next year. Gov. J.B. Pritzker and Chicago Mayor Lori Lightfoot oppose Peoples’ request to extend the surcharge.

If—as appears likely—the sur charge expires, the city and state will nally have to come to grips with the future of Chicago’s natu ral gas infrastructure. Heating bills, thanks in no small part to the sur charge that now costs the average Chicago household about $180 a year, are una ordable for about 1 in 5 residential customers. at only will get worse if the project is allowed to run its course, pushing the costs to customers far higher.

Exacerbating the situation are high natural gas prices expected to raise average heating bills in Chi cago by more than 40% this winter.

At stake for Peoples and its Wisconsin-based parent is strong pro t growth that has helped WEC Energy boost its dividend by 7% annually. Peoples has set earnings records in each of the last ve years despite a lack of population growth in its service territory. Over the past ve years, WEC’s total shareholder return (share price gains plus div idends) is 51%, easily beating the S&P 500 Utility Index of 37%.

Lightfoot, Illinois Attorney General Kwame Raoul and the Citizens Utility Board are girding for the legislative battle ahead.

linois Commerce Commission).”

Schwartz adds that the project is “on track for completion by the end of 2040” and stands by the to tal cost estimate of $8 billion.

Based on Peoples’ spending over the last three full years, it’s di cult to see how the program will cost just $8 billion, even leav ing in ation aside. Under former owner Integrys Energy Group, Peoples spent $1.1 billion through 2015 on what was then called the accelerated main replacement program. WEC acquired Peoples in mid-2015 and recast the initia tive as the System Modernization Program, spending $538 million in 2016 and 2017.

says. “Ninety-nine percent of a project can be complete, but if there’s a holdup on the remaining 1 percent, then retirement of the old gas main must wait. . . .Project costs more closely follow the tim ing of when we install gas main, as opposed to retirements—which very much lag the spend.”

Schwartz says a better metric is the per-mile cost of new pipe in stalled. By that measure, the fouryear average cost of the project is nearly $3 million per mile of pipe installed, a gure Schwartz says “is aligned with our cost estimate of $8 billion.”

OPPORTUNITIES

“Peoples Gas is rushing to do upgrades it should have done gradually over the last several decades, which is what other gas utilities did,” the city, AG’s o ce and CUB say in a joint statement. “ e company is playing costly ‘catch-up’ and it is unmanageable. e customer surcharge that Peo ples Gas uses to pay for this pro gram makes up over 37% of the average delivery charge on a bill. at surcharge is due to expire at the end of next year and it should not be renewed by the legislature.”

Peoples isn’t budging.

“We don’t know what will hap pen with (surcharge) legislation in 2023,” spokesman David Schwartz says in an email. “We are commit ted to taking the steps necessary to ensure ongoing safety, system reli ability and environmental sustain ability. As for what mechanism is used to pay for the necessary work, we will partner with policymakers and all stakeholders to determine what exactly that looks like.”

WEC Executive Chairman Gale Klappa said in February that if the surcharge isn’t extended Peoples will le annually for full-blown rate hikes to cover the ongoing costs of the project. But Schwartz says Peoples has “no plan at this time to le a rate case with the (Il

From 2018 through 2021, Peo ples spent $1.2 billion, according to progress reports submitted to the ICC. So, at the start of this year, the program had cost a total of $2.8 billion. To hit the $8 billion budget, Peoples will need to n ish the remaining work at a cost of $5.2 billion. at seems unrealis tic, to say the least.

As of the end of last year, Peo ples had 1,614 more miles of ag ing pipes to replace. From 2018 to 2021, Peoples retired an average of 59.7 miles per year. At that clip, it would take the utility another 27 years to nish the work, putting the end date at 2048.

e utility’s record under its previous Chicago-based parent— whose management of the pro gram was widely derided, including by WEC—was signi cantly more e cient. Including Integrys’ track record, beginning in 2011, Peoples has retired an average of 68 miles of old pipe annually.

But even if WEC manages to match that pace over the rest of the program, it still won’t complete the work for another 23.5 years. at puts the nishing date at around 2045.

From 2018 until 2021, WECowned Peoples spent a total of $1.18 billion to retire 239 miles of pipe, or $4.9 million per mile. At that rate, it will cost the utility another $8 billion to complete the job. Added to the $2.8 billion spent so far, that brings the pro gram’s total tab to $10.8 billion.

Peoples takes issue with using the pace of retiring outdated pipes as the right metric to track the project’s progress. “Miles retired is a lagging indicator,” Schwartz

ere’s no way of checking that contention, though, in the reports led with the ICC. e miles of new pipe far exceed the miles of old pipe being replaced because the company is installing two sets of replacement pipes on a street, with one pipe serving cus tomers on one side and the other those living across the street. e old lines are single pipes serv ing customers on both sides of a street. e progress reports don’t include how much new pipe re mains to be installed, but they do chart how much of the old pipe still needs replacing.

Miles replaced “is just a very common metric,” says Abe Scarr, director of Illinois PIRG, a con sumer advocacy group and critic of the program’s scope and manage ment. “If one assumes this is about replacing risky pipe, then tracking how much risky pipe is taken out of the system is the point.”

Why has progress been so slow? And so costly?

Critics point out that the pro gram has expanded from its orig inal purpose of accelerating re placement of aging cast iron and ductile pipes, which are prone to leaking and pose a safety risk. Later, it emerged that Peoples was upgrading its entire pipe system for medium-pressure delivery of gas rather than low-pressure, a much bigger job.

Another issue is the city’s push to decarbonize all buildings with in its boundaries over the next two decades. at would entail switching buildings heated with carbon-emitting gas to electric heat, potentially rendering the elaborate gas piping system ob solete. If that happens, Peoples customers could be paying for the pipe overhaul long after they stop heating with gas.

Natalie Laackman

Deidra Merriwether

Katie Rooney

Ulta’s Kimbell counts on growth tactics to match the pace set by his predecessor

growing more urgent. At a time when in ation and a possible recession cloud the retail outlook, the longtime Dillon lieutenant is under pressure to show he can sustain the strong, steady growth she delivered during eight years at the helm. Until COVID hit, Ulta had posted seven straight years of double-digit sales growth under Dillon and its shares had risen nearly twice as much as the broader stock market.

Kimbell will have to match that performance while opening fewer new stores—Dillon’s primary growth tactic. With 1,325 stores across the country, Ulta has nearly exhausted its geographic growth opportunities. New store openings have dropped from 100 annually under Dillon to a goal of 50 for Kimbell.

Kimbell’s growth strategy builds on Dillon’s work, while tapping his background in marketing and merchandising. To drive sales, he’s expanding a Target partnership that Dillon inked, signing up more loyalty program members, using customer data to deliver personalized ads and adding new digital o erings.

Net sales last quarter were $2.3 billion, up 15% from the same period in 2021. Same-store sales, a key metric in retail, rose 14.4% last quarter. at’s up from 6.2% during the same period in 2019, but well below the 56.3% leap in the second quarter of 2021.

e lifting of store closure mandates after 2020 allowed Ulta to capitalize on competitive advantages. Ulta resumed in-store salon, brow, makeup and skin services—features that rivals such as Sephora and Amazon don’t o er.

Investors have noticed. At about $413 apiece last week, Ulta shares were up 26.4% since June 2021, when Kimbell took over. An S&P index of major retail stocks was down about 48% in the same period. Kimbell’s most challenging days could still be ahead, as ination squeezes consumers and recession fears rise. ough beauty has been historically resilient during downturns and sales so far haven’t slowed, experts say the industry is not totally immune.

Kimbell said during Ulta’s most recent earnings call that the company has received “a large number of price increases” from its makeup suppliers and expects more. He said Ulta has raised its own prices but wouldn’t disclose how much.

Nationally, the average price for prestige beauty products was up 2% this year through August, according to data from market research rm NPD Group. at’s not deterring customers still traumatized by their makeup-less time at home during pandemic lockdowns. Beauty was the only retail category that grew unit sales between July 2021 and this year.

In an interview, Kimbell says consumers started to view beauty as wellness during the pandemic, further bolstering the industry against recessions. Ulta also has

ULTA’S STOCK PRICE

Here’s

products up and down the price spectrum, giving customers more a ordable options if they decide to cut back spending.

“We’re the only ones that have an assortment from entry-level mass (products) up to high-end luxury and everything in between,” he says. “If guests need to make choices within that, they can.”

Still, experts say it’s critical that Ulta keep customers engaged with the right product assortment

“He cannot lose focus on the innovation and product side of things,” says Brian Yarbrough, consumer research analyst at Edward Jones. “It drives new customers in.”

Kimbell, 55, knows the prod-

ucts well. He was promoted to chief merchandising and marketing o cer in 2015, about a year after joining Ulta. He became president in 2019, a role that oversaw Ulta’s loyalty program and e-commerce—two areas that became vital to the company under Dillon and remain key growth drivers.

Ulta’s “buy online pickup in store” option is an example. Launched under Dillon in 2019, it accounted for 25% of e-commerce sales last quarter. Ulta has also added tools online that will suggest what skin treatment a customer should get in-store, for example.

“ at’s so important because people want to be back in stores, people want to be out doing things physically,” says Korinne Wolfmeyer, senior equity analyst at Piper Sandler.

Kimbell also rebuilt a customer loyalty program battered by COVID. e program, which drove 95% of Ulta’s pre-pandemic sales, lost millions of members when customers stayed home, donned masks and stopped buying makeup.

e loyalty program hit a record high 38.2 million members last quarter, after losing 3.3 million in 2020.

e Target partnership, announced in late 2020, has been a funnel for new members. Ulta had 186 shops inside Target stores as of last quarter, with plans to open 800.

Kimbell declined to disclose revenues or other data that would reveal the success of the Target partnership but says “we’re really pleased with the performance so far.” Ulta gets royalties on Target sales, but the main goal is to attract more customers and build loyalty. Kimbell says that’s happening. New loyalty members who join through Target end up shopping at Ulta in-store and on-

line, he says.

“ e objective here is to deliver a great experience every day and to give our guests a new and easy way to have more access to Ulta Beauty,” he says. “ e more we can, again, delight our guests, the more they reward us with their loyalty.”

Ulta has had to work to get the product mix right in its Target locations, says Steph Wissink, managing director of consumer research at Je eries. It started carrying more skin care, hair care and travel-sized options, and added more make-up brands such as Mac and Clinique.

“Brands (were) holding out, not sure they wanted to live inside the same retail environment as bananas and bread and dog food,” Wissink says. “You’re seeing more of those come around.”

at’s Kimbell’s merchandising experience coming into play at Target, experts say. His marketing background has helped Ulta send more personalized ads—rather than blanketing customers with generic coupons they probably

won’t use. Additionally, in June, Ulta launched UB Media, a media company that lets beauty brands tap into Ulta’s treasure trove of customer data for their own personalized ads. at could become a productive revenue stream in coming years, and it has Kimbell’s “ ngerprints all over it,” Wissink says.

“He has been a buyer of media for 20 years in his career, he knows how media negotiations work,” she says. “He also knows the rubric that makes the platform appealing.”

“HE CANNOT LOSE FOCUS ON THE INNOVATION AND PRODUCT SIDE OF THINGS.”

Brian Yarbrough, analyst at Edward Jones

Ulta Beauty, which has 1,325 stores across the country, has nearly exhausted its geographic growth opportunities.

ULTA’S

A glass-walled, minimalist retreat in Riverwoods

BY DENNIS RODKIN

Whendeer pass by the glass living room wall of this Riverwoods home, “we won der who’s looking at whom, them or us,” says Diana Katsiaras.

With her husband, Alex Fick, Katsiaras bought the steel, glass and brick house on Woodland Lane in 2008, drawn, she says, by “its simplic ity in the natural surroundings. It’s magical.” ey have made changes over the years, largely to enhance the feeling that the house and setting blend together.

e couple quote Ludwig Mies van der Rohe: “We should attempt to bring nature, houses and human beings together in a higher unity.” It’s relevant to this house in particular, which was designed by one of Mies’ students at Illinois Institute of Technology, Philip rane, who was part of Mies’ team making drawings for an architecture exhibit at the Sao Paulo Art Biennial in Brazil in 1959.

rane’s design for the house “is purely Miesian,” says Fick, “and so serene.”

Now retired—she was in IT and he in the dairy industry—and done with Chi cago winters, the couple plan to move to Arizona. ey put the house, three bedrooms and about 2,400 square feet on 1.25 acres, on the market last week.

Listed with Honore Frumentino of @properties Christie’s International Real Estate, the home is priced at a little under $1.1 million.

PHOTOS: LARRY

MALVIN PHOTOGRAPHY

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