Crain's Chicago Business

LUXURY GIFT GUIDE: Influencer Diane Primo’s fabulous yet thoughtful picks. PAGE 21

ORPHE DIVOUNGUY: How to curb city’s weekend tragedies. PAGE 2

CHICAGOBUSINESS.COM | NOVEMBER 15, 2021 | $3.50

WEALTH-BUILDING

BUILDING BLACK-OWNED

BIGGER

A Build Back Better bonanza for Exelon

Lefkofsky gets his shot at redemption

Ten years ago, Eric Lefkofsky pulled off the biggest IPO for a Chicago-based company, a transaction that valued digital deal site Groupon at $12.8 billion.

It also was the worst-performing local IPO in the past decade, according to research firm Dealogic.

The stock peaked on its first day of trading and went down from there. Groupon shares now trade 93% below their IPO price.

Lefkofsky has taken other companies public, but none of the IPOs were as big or ballyhooed as Groupon’s. That may be about to change. Bloomberg News reports that Lefkofsky is

ALYCE HENSON

Would an IPO by medical technology specialist Tempus be another Groupon, or a better deal for investors?

BY JOHN PLETZ

JOHN R. BOEHM

Chicago’s African American entrepreneurs are seizing the moment to scale up their businesses—and create a legacy of generational wealth. PAGE 13

Eric Lefkofsky considering an IPO for healthtech company Tempus Labs, perhaps early next year.

A Tempus offering would be Lefkofsky’s chance to redeem See TEMPUS on Page 30

Why Biden’s signature legislation would be worth more to Exelon than Illinois’ nuclear power bailouts

BY STEVE DANIELS The massive spending program that Democrats in Washington are hashing out, if enacted, is almost sure to include a tax subsidy for nuclear plants that would give Exelon a taxpayer-funded jolt dwarfing what it’s muscled out of state legislatures, including Illinois’.

The parent company of Chicago-based utility Commonwealth Edison says the proposed legislation also would give local electricity customers a break on paying the bailout surcharges for Exelon’s Illinois nukes in their electric bills. But the 2016 state law See EXELON on Page 7

NEWSPAPER l VOL. 44, NO. 46 l COPYRIGHT 2021 CRAIN COMMUNICATIONS INC. l ALL RIGHTS RESERVED

P001_CCB_20211115.indd 1

BOOTH INSIGHTS

YOUR VIEW

How well do you know what your customers want? PAGE 8

Chicago needs the ‘just cause for eviction’ ordinance.

PAGE 10

11/12/21 4:04 PM

2 NOVEMBER 15, 2021 • CRAIN’S CHICAGO BUSINESS

A new ward map is likely just around the corner

F

Latino lawmakers, who carved out a new Latino-plurality congressional district on the North Side that squished Casten and Newman together. That’s also why supposedly “compact and contiguous” districts ended up looking like a plate of spaghetti. Ergo the new 17th Congressional District that starts in Rockford, snakes west to the Mississippi River and the Quad Cities, and then turns east in a narrow corridor to pick up Peoria and Bloomington, but not their suburbs.

At least AS ALWAYS, IT’S ALL ABOUT RAW POWER. it’sWhew! over, pending any legal challengAND IT’S NOT GOING TO BE PRETTY. es. And much as good-government types would or late at night, then pushed for like to change it—so would I—the quick approval as soon as the Democrats in this state aren’t morning after. going to stop it before RepubInsiders were clued in, but nolicans in places such as Florida body else. That’s how Democratic and Texas do, too. In the political Reps. Sean Casten and Marie Newman ended up getting thrown world, unilateral disarmament is a together into the same district and road map to minority status.

There’s one big map left to go. will have to fight it out in the 2022 That’s here in Chicago, where primary; they got outhustled by or anyone who doubted that the remap process is about anything other than raw power, the experiences of the last few months should have been instructive.

Despite vows from Gov. J.B. Pritzker and other leaders that the decennial legislative reapportionment would be open, transparent and nonpartisan, it’s been the exact opposite. Essentially Democratic-dominated panels rolled out proposed maps on a weekend

T

we’re at the stage of utterly irrelevant public hearings, while the real wheeling and dealing goes on behind closed doors. It would be almost nostalgic if only they still allowed a few good cigars and a couple of spittoons in those smoke-free rooms.

A deal is there to be done. For instance, there’s general agreement that the downtown area will get a new, largely white ward to accommodate the tens of thousands of new residents the area has lured in recent years. There also appears to be a consensus that an Asian-majority or near-majority ward will be formed in the Chinatown area.

But other disputes are raging behind the scenes. Like the fight between Alds. Brian Hopkins, 2nd, and Scott Waguespack, 32nd, over who will get Lincoln Yards—and its campaign-cash-giving developers—in their ward. Or a spat on the Northwest Side over who will be forced to accept into their new ward the Independence Park

GREG HINZ ON POLITICS

neighborhood, which insiders say has lived up to its name and is considered a good area not to represent.

The biggest dispute remains the conflict between Black and Latino aldermen, with Blacks trying to hang onto 18 majority-African American City Council seats despite declining population, and Latinos demanding at least 15 after a solid decade of growth in their population. Accompanying that are some internal disputes over who will have to walk the plank if it becomes apparent someone in the caucus will have to go.

The unique thing about the city remap is that, unlike state and congressional district reapportionment, there is a way for the

public at large to get involved.

Maybe.

Specifically, under state law, the City Council is supposed to adopt a map by majority vote no later than Dec. 1, just a bit over two weeks away now. If they don’t, any 10 aldermen can file their own map and force a public referendum on it and any other map that has significant aldermanic support.

That’s never happened in Chicago history, and I doubt it will this time, either. Insiders know that anything could occur in a referendum. So look for the alders to work out something in the next couple of weeks. But don’t expect it to be pretty. Remember, this is about one and one thing only: power.

Here’s a way to curb Chicago’s weekend tragedies

he Chicago homicide and violent crime problem continues to baffle most experts.

But one thing is certain: The homicide rate is highest among Black Chicagoans.

Why? The answer is complicated, but to try to address the problem, it’s important to understand what contributes to crime reduction.

Research shows stable, quality jobs are among the best crime prevention strategies.

Even before the pandemic, states with higher unemployment rates had higher crime rates—both higher homicide rates and higher property crime rates—according to data from the FBI Uniform Crime Reporting program.

The pandemic put millions of Americans out of work, hurt people’s overall health and crime increased. Black people were hurt more than any other group.

Black city residents are less likely to have a college degree and to be in a job when compared to other groups. According to the most recently available data from the American Community Survey, only 26.3% of Black Chicagoans had a college degree or higher when compared to 78.2 % of white Chicago residents. Among those without a college degree, the white-Black employment gap is the largest.

Compared to Black residents in other large American cities—such as Los Angeles and New York— Black Chicagoans are least likely to have a college degree and least likely to be employed.

The crime solution comes in

multiple parts, starting with improving policing, prosecuting more effectively, and addressing racial gaps in education and employment.

Research shows employment outcomes—particularly work and income opportunities—reduce the likelihood an individual engages in crime. Beyond the obvious pathways with which a stable income reduces the incentive to commit a crime, working tends to bind people together in networks of reciprocal social obligations.

Among disadvantaged youth, summer job programs reduce violence during and even after the end of the program. The likelihood of an arrest among at-risk youth— those who had arrest records before the program—falls by 23%, while the likelihood of a conviction falls by 52%.

The most compelling evidence comes from research that highlights the importance of work for preventing new crimes among high-risk offenders. The better the job in terms of stability, occupational standing and pay, the less likely an ex-inmate will reoffend.

It’s also better health and housing that matter for reducing recidivism.

So what is Chicago doing to improve educational and employment outcomes? Not enough.

Only 11% of Chicago Public Schools students are white. The majority are Black and Hispanic.

In Chicago, the education share of city expenditures has decreased in the past 30 years, according to data from the Lincoln Institute of Land Policy.

In 1980, roughly 29% of city ex-

penditures were on education. That number was down to 26% in 2000 and only 22% before the pandemic.

But it’s not just education being squeezed out. From 2011 to 2021, the increase in city employee retirement costs has consumed city budgets despite yearly tax increases. Spending on pensions increased 239%, while spending on city services increased just 18%.

A debt is owed to the city’s South and West sides, and the only way to make progress is to invest in things that lift up the people who need it most. Mayor Lori Lightfoot’s guaranteed income program is a

ORPHE DIVOUNGUY ON THE ECONOMY

pittance that will do too little for too few to address the injustice. Unless individuals are equipped with the skills they need to find stable, good-paying jobs, the program could even backfire by keeping them out of the labor force.

Government budget priorities matter. The city is making a choice

when it fails to prioritize communities most plagued by crime. And that choice is likely driving Chicago’s crime problem to among the worst in the nation.

Crain’s contributor Orphe Divounguy is chief economist at the Illinois Policy Institute.

97% OF OUR CURRENT C U STO M E R S R A N K T H E I R S AT I S FAC T I O N W I T H U S A S “ E XC E L L E N T ” O R “A B O V E AV E R AG E .”

B E Y O U R B A N K E R ’ S T O P P R I O R I T Y. W I N T R U ST.CO M / P R I O R I T Y

CORRECTIONS The 40 Under 40 feature on Nov. 8 should have said that Alyssa Jaffee is 34.

In Notable Military Veteran Executives on Nov. 8, Glen Johnson’s title should

have been global solid waste practice leader.

P002_CCB_20211115.indd 2

Banking products provided by Wintrust Financial Corp. banks. Source: 2021 Coalition Greenwich Market Tracking Program

11/12/21 2:40 PM

CRAIN’S CHICAGO BUSINESS • NOVEMBER 15, 2021 3

Can a Bahraini lender save this tower project?

As a court battle over an unbuilt River North high-rise drags on, the developer says it has the funding to pay off Chinese investors who want their money back

BY ALBY GALLUN A prolonged courtroom drama over an unbuilt River North highrise has added a new character to its cast: a mysterious Middle Eastern lender that could bail out the project’s developer.

The unnamed Bahraini lender has become an additional source of conflict between attorneys for the developer and for about 90 Chinese investors who put up

nearly $50 million in equity to finance the 60-story condominium-and-hotel tower. The investors want their money back.

The Chicago City Council never approved the proposed building at Wabash Avenue and Superior Street, and the developer, New York-based Symmetry Property Development, finally agreed to return the money last November, after a two-year battle over a federal securities fraud lawsuit. But

the investors haven’t received a penny yet.

It’s another glitch in a long-running development disaster story that includes a foreclosure suit, City Hall roadblocks and a controversial federal visa program that critics say is vulnerable to fraud. Though Symmetry could clean up the mess with a big loan from the mystery lender, attorneys for the Chinese investors doubt the money will ever arrive.

For several months, a Symmetry attorney has told U.S. Judge Charles Kocoras that a Middle Eastern lender has agreed to finance the development, with a chunk of the loan proceeds used to pay off the investors. But the process has dragged on. Multiple holdups due to anti-money laundering regulatory hoops and other red tape have prevented the funds from getting to the United States, the attorney, Daniel Hildebrand of Greenberg Traurig, has said in court.

The delays are testing the patience—and trust—of the inves-

tors and their attorneys. Under its class-action settlement with the Chinese investors, Symmetry was required to pay them back by May 7, Doug Litowitz, one of the attorneys, wrote in an email.

Symmetry “has said that the money is in their possession but has been tied up in a foreign country for 6 months,” he wrote.

“As a former hedge fund lawyer, I have never seen such a delay in a wire transfer.”

Litowitz has another reason to be skeptical: It would be See RIVER NORTH on Page 31

Here, neighborhood redevelopment starts with neighbors

BY DENNIS RODKIN Some neighbors throw summer block parties. Others host Secret Santa gift exchanges. In South Shore, a group of neighbors pooled their money to rehab a troubled apartment building and become its landlords together.

In September 2020, 27 people who live in South Shore’s Jackson Park Highlands section bought a building they all had fretted about, a structure at 71st Street and Bennett Avenue that contains 16 apartments and five ground-level commercial spaces. They rehabbed the building and, as of Nov. 1, reopened the apartments for leasing. Next they’ll look for commercial tenants.

“In theory, we’ll make money,” said Hubert Thompson, a shareholder who’s lived about two blocks from the building for almost 25 years, “but maybe in a

decade. We’re not trying to make money, we’re investing in our neighborhood.”

The group’s goal is to turn the building into an epicenter of redevelopment of the old 71st Street shopping corridor around the Bryn Mawr stop on the South Shore line. Along with a developer’s proposal to build a movie, dining and bowling venue two blocks east at 71st and Jeffery Boulevard of the 71st Street strip, “it could help the neighborhood come back,” said Stephen Stern, who’s lived in the Highlands since 1992.

Having helped fight to keep pawnshops and other signs of decline out of the 71st Street strip, Stern said, he gladly invested with his neighbors.

“I’ll take the risk,” Stern said.

“It’s not about the money, it’s about making this building a

The push to rehab a historic theater is gaining traction

See SOUTH SHORE on Page 31

PHOTOS BY JOHN R. BOEHM

A group of 27 South Shore residents pooled their money to buy and rehab a troubled apartment building.

Now they’re the opposite of absentee landlords.

The latest effort to save Balaban & Katz’s first movie palace in North Lawndale could cost up to $25 million and would incorporate a community center. But will it go the way of other floundering theater preservation projects? BY ELYSSA CHERNEY

Tyriece Kennedy (foreground, from left) Michael Kelley and Hubert Thompson are among a group of 27 South Shore residents who pooled their money to purchase a derelict building.

P003_CCB_20211115.indd 3

JOHN R. BOEHM

A

uncertainty about the financial ttempting to restore viability of entertainment and some of the city’s performing arts venues. most architecturally Nevertheless, there’s a new significant but severecampaign brewing, this time in ly rundown theaters can be a North Lawndale, seeking to do dramatic affair. what similar efforts have strugAt the Uptown Theatre, Fairgled to achieve for decades. point Development backed And backers hope their vision is out of the high-profile project distinct enough to help finance led by Jam Productions that Central Park Theater at 3531 W. Roosevelt Road an ambitious project that could garnered $40 million in public in North Lawndale. cost up to $25 million and aims money and enthusiastic support from elected officials. The Congress Theater to transform the deteriorating Central Park Thefell into foreclosure after a major investor accused ater—the first “movie palace” built by cinema moits developer of defaulting on $14 million in loans. guls Balaban & Katz and architects Rapp & Rapp in And other ventures, such as the Ramova Theater in Bridgeport, stalled while the pandemic created See THEATER on Page 12

11/12/21 4:14 PM

4 NOVEMBER 15, 2021 • CRAIN’S CHICAGO BUSINESS

JOE CAHILL ON BUSINESS

Public transit really needs to build back better

P004_CCB_20211115.indd 4

PHOTOS BY JOHN R. BOEHM

A

occasions. Trains and buses will have to run faster, more reliably and more frequently, while connecting more locations.

Established service models may need a rethink. Consider the traditional approach to commuter rail service: Build a station on an existing line and wait for riders to show up. That works pretty well for people who work downtown and live within walking distance or a short drive of the station.

But what about people who live farther from the station or work in another suburb? Their transit options are limited, as are those of people who commute from suburb to suburb or from the city to suburban offices far from Metra stops.

An innovative transit system would close these and other gaps. Ideas for such a system have been kicking around for years. There’s been talk of extending CTA lines farther into the south, west and northwest suburbs, and express rail service from O’Hare International Airport to the Loop. CTA planners have proposed a “circle line” through the Near IT WILL HAVE TO GET A LOT BETTER West Side linking existing el lines and TO ATTRACT TWICE AS MANY RIDERS. downtown Metra stations. Metra officials sketched out a suburAnd with breakdowns and ban “Star Line” sweeping from delays come declining ridership.

According to the Regional Trans- O’Hare through the northwest suburbs and south to Joliet. portation Authority, combined None of these ideas have ridership at the Chicago Transit come to pass. A major obstacle, Authority, Metra commuter of course, has been money. rail system and Pace suburban Federal money for transit is bus service declined for seven available now, thanks to Presistraight years through 2019. dent Joe Biden’s massive infraRidership all but evaporated structure plan and COVID-relief early in the pandemic amid dollars. The RTA already is widespread work-from-home divvying up $1.5 billion among edicts. Workers have started CTA, Metra and Pace. going back to offices as those reFunds will go first to overdue strictions have eased, but many maintenance and replacement still haven’t returned to public of aged rolling stock, as they transit. As my colleague Greg should. But billions more are Hinz reported, CTA ridership in available—the infrastructure September was 50% of its 2019 bill authorizes $66 billion for level, while Metra was still down passenger rail and $39 billion 75% for public transit generally. We’d The sad reality for transit syshave to compete for the money, tems is that many former riders which in any case isn’t enough aren’t coming back. Others will to fund all of our transit needs. come back less often, as emBut there’s enough to finance ployers embrace hybrid working some projects that would imarrangements that require workprove service and demonstrate ers to be in the office just two or possibilities. three days per week.

There’s also an opportunity to That means transit agencies think creatively about financneed to attract new riders. And ing. Partnerships with private that will require more than investors, for example, could restoring the pre-COVID status open up new funding streams quo. People who spurned transit while bringing capital markets before the pandemic won’t discipline to project planning. climb aboard for the same level A few well-chosen projects of service offered in the past. would make Chicago a showcase Agencies will have to improve of 21st-century public transit and expand service, making systems that benefit the planet transit more attractive than and the local economy. driving for more people on more t the global warming summit in Glasgow, Scotland, a group of mayors from around the world warned that the goal of limiting climate change to 1.5 degrees Celsius is out of reach unless public transit use doubles by 2030.

In other words, to meet one daunting challenge, the world must meet another that seems equally daunting. Public transit will have to get a lot better to attract twice as many riders within nine years.

That’s especially true in Chicago, home to one of the nation’s biggest transit systems. Thousands of miles of commuter rail tracks, elevated train lines and bus routes criss-cross the region, linking far-flung communities to a dynamic central business district that powers the local economy.

Sadly, the system has become sclerotic. Cash-strapped transit agencies struggle to maintain tracks and keep buses and train cars rolling, deferring about $19 billion in maintenance and repair projects. As infrastructure deteriorates, so does service.

Cinespace acquired by buyout firm for $1 billion The company that put Chicago on the map as a major film and TV production center is staying put and expanding BY GREG HINZ The family-owned company that put Chicago on the map as a major film and TV production center is being sold, reportedly for $1 billion.

Cinespace, the home of TV shows such as “Chicago Fire,” “The Chi” and earlier “Empire,” is being acquired by TPG, a Texas- and California-based buyout firm that has been ramping up its already considerable holdings in the entertainment industry.

TPG, in a statement, confirmed that its TPG Real Estate Partners unit has made the acquisition.

The statement does not indicate a price, but a source close to the matter said the total price for the Chicago and Toronto operations combined was $1.1 billion.

“We have been studying the content creation and production landscape as an investment theme for a few years, and in that time have developed a relationship with the family behind Cinespace,” said TPG Real Estate co-head Avi Banyasz. Added Managing Director Jacob Muller, “We are thrilled to have the opportunity to expand on their vision by building a best-in-class studio platform.”

Industry veteran Eoin Egan, who most recently was head of production services at Netflix, will join Cinespace as COO and a co-managing partner. A TPG official, Keith Gee, will be CFO and the other co-managing partner.

Cinespace has been used to shoot NBC shows “Chicago Fire,”“Chicago P.D.” and “Chicago Med.” The statement did not give any details on expansion but said Cinespace “intends to grow its employee base” in both Chicago and Toronto.

Cinespace owner Alex Pissios and other members of his family no longer will be involved in active management of the company, with TPG bringing in its own team. But the firm will remain based here and is interested in expanding beyond the 55 active soundstages it now operates at two campuses at the old Ryerson Steel distribution facility at 2621 W. 15th Place and at 31st St. and Kedzie Ave. Pissios is best known for luring

legendary TV producer Dick Wolf of “Law & Order” fame here, with Wolf using Cinespace to shoot NBC shows “Chicago Fire,” “Chicago P.D.” and “Chicago Med.” But his firm has gained from an explosion in demand for webstreamed—not just broadcast film and TV—productions, with Cinespace growing and other entrepreneurs setting up shop, too, such as Regal Mile Studios in South Shore.

Cinespace officials in the past have asserted that their operations have created 20,000 jobs.

Pissios declined all comment on the transaction. His future plans are not known.

11/12/21 3:24 PM

BUSINESS DECISIONS FOR HERE, FROM HERE. Running a business is no small enterprise. And every decision you make impacts not only your goals, but also your employees and community. At Associated Bank, we’re beside you every step with the financial guidance, local market knowledge and rapid response you need to keep your life’s work growing. The more opportunities we open up together, the greater impact your business has. That’s your money working here.

Let’s build something better together at AssociatedBank.com/Commercial

Deposit and loan products are offered by Associated Bank, N.A. Loan products are subject to credit approval and involve interest and other costs. Please ask about details on fees and terms and conditions of these products. Property insurance and flood insurance, if applicable, will be required on collateral. Member FDIC. (11/21) P03886

tab doc.indd 1

21cb0504.pdf

RunDate 11/15/21

FULL PAGE

Color: 4/C

11/9/21 11:25 AM

6 NOVEMBER 15, 2021 • CRAIN’S CHICAGO BUSINESS

THE TAKEAWAY

IN-PERSON EVENT

Phil Alphonse

BREAKFAST

Tuesday, December 7 | 7:30-9:45 a.m.

The Chicago Club | 81 E Van Buren St., Chicago

What surprises people about you?

My immigrant story. My mother is Jamaican and my father is Panamanian.

I was born in Kingston; we moved to Panama when I was three and, when I was 7, we moved to Dorchester, a fairly rough neighborhood in Boston back then.

> >

MODERATOR

Worst job ever?

Cleaning toilets on dorm crew while I was at Harvard. If you did a really good job, you got to work at reunions as wait staff or room cleaners where the tips were good. Ha!

Why did you choose investing?

I wanted to generate real income. My family didn’t have a ton of money. I wanted to be the type of person who could write a meaningful check for the collection plate.

William Rogerson Professor of Economics Northwestern University

John Schetz General Counsel Cresco Labs

$50 per person

This event is exclusive to in-house and general counsel CLE credit pending All guests are required to show proof of vaccination at the event

Your latest splurge?

We like to summer on Martha’s Vineyard, so we just bought a second home there.

>

Register today at ChicagoBusiness.com/GeneralCounsel2021

Noelle Perkins General Counsel Univar

Any incidents?

Several. Once, an older kid tried to shake me down for milk money. I told him no, and he threatened me with a pocketknife. Two weeks later, I see the kid making a beeline for me.

I’m thinking, ‘Holy crap,’ but he just gave me a fist bump.

>

Kimberly Chainey EVP, General Counsel and Corporate Secretary AptarGroup

>

The downside? In 7th grade, I had to ride a bus to school through Dorchester and Roxbury. I saw a lot of tough kids and drugs on that bus.

>

The new administration has already sent several strong signals that there’s a new sheriff in town. Corporate America is on notice that antitrust scrutiny will be tougher than before, as will regulatory oversight of several key industries. So, how does a smart general counsel advise her executive team now against this shifting landscape? What sorts of mergers are possible now?

What are the warning signs of trouble?

That’s a dramatic shift.

There were benefits. Basically, I grew up on college campuses. My mother was a college librarian. My dad was a minister, getting his doctorate at Boston U, and my sisters were in college there.

>

Navigating Antitrust and M&A in the Biden Era

SPEAKERS

>

GENERAL COUNSEL

Alphonse, 49, is a senior partner for private investment firm Vistria Group and co-leads the firm’s education practice. Born in Jamaica, he has degrees from Harvard and Stanford. He and his wife live in Streeterville with their three daughters, 7, 10 and 14. By Laura Bianchi

A major turning point?

After business school, I joined a startup that processed student loans online. The company went under after a couple of years because we were under-capitalized.

It felt like the dot-com world was imploding.

> What did you do?

I followed some advice from a former grad school classmate. He told me that if I wanted to become an investor, I should apprentice with the right people. I came to Chicago to join a private-equity firm in 2002.

>

Presenting Sponsor

Most embarrassing career moment?

When I was 22, working at Morgan Stanley, the analysts always put on a holiday play roasting the partners. I really got into spoofing the head of all capital markets. Everyone was laughing so hard, except him.

> Uh-oh.

Yeah. Let’s just say that after two years at the firm, I didn’t get invited to stay a third year.

P006_CCB_20211115.indd 6

11/12/21 3:12 PM

CRAIN’S CHICAGO BUSINESS • NOVEMBER 15, 2021 7

Exelon may see extra revenue windfall from potential federal nuclear subsidies EXELON from Page 1 that bailed out Exelon’s Clinton and Quad Cities plants wouldn’t explicitly prevent Exelon from taking both federal and state subsidies.

The final answer to the question of just how much and from whom Exelon will receive extra revenue depends on what emerges from the months-long debate over President Joe Biden’s “Build Back Better” initiative.

Biden has made preserving the nation’s existing nuclear fleet a part of his plan to attack climate change. Nukes don’t emit carbon, and Chicago-based Exelon and other operators long have argued that closing them prematurely would worsen carbon emissions, thanks to the natural gas-fired plants that likely would

company’s Nov. 6 conference call with analysts.

On the table right now, sources say, is a tax credit worth $15 per megawatt-hour of electricity produced by each nuke over the coming six years. The value of the credit is reduced as revenues rise.

FEDERAL LEVEL

A $15 tax credit on the nuclear power Exelon generates just in Illinois would yield up to $1.4 billion annually, based on how much the nukes generated in 2020. (The true amount likely would be less than that, although potentially $1 billion-plus.) By contrast, state subsidies, including the one signed into law by Gov. J.B. Pritzker in September, are slated to provide an average of $375 million annually over the coming years.

Pritzker’s Climate & Equitable Jobs Act A $15 TAX CREDIT ON THE NUCLEAR forces Commonwealth Edison cusPOWER EXELON GENERATES JUST IN tomers to pay more ILLINOIS WOULD YIELD UP TO $1.4 on their bills to bail out three Exelon BILLION ANNUALLY, BASED ON HOW nukes, two of which company had MUCH THE NUKES GENERATED IN 2020. the planned to close this fall without taxpayer or ratepayreplace their output.

“We’re confident that when er help. But the surcharges go the legislation does pass, it will away—and even could require include a production tax credit Exelon to fund credits to customfor the existing nuclear,” Exelon ers—if a more valuable federal CEO Chris Crane said on the tax credit is enacted.

No such protection was included in the 2016 Future Energy Jobs Act, which then-Gov. Bruce Rauner signed in 2016. That law slaps a surcharge on electric bills statewide and funnels $235 million a year to Exelon’s Quad Cities and Clinton stations.

In a statement, Exelon says the current draft of federal legislation would not allow the utility to get the full value of the tax credit and also continue to take the FEJA subsidies.

“As it is currently structured, the draft (production tax credit) takes into consideration the revenue that nuclear plants receive under existing state programs— including the clean energy laws Illinois passed in 2016 and 2021—and ensures that Illinois’ nuclear plants will not retain both payments without crediting consumers,” the company says.

Referring to the controversy surrounding the subsidies in Illinois in both 2016 and this year, the company adds, “Illinois programs preserving clean and reliable nuclear energy uniquely pay consumers back, providing billions of dollars of value to families and businesses and settling once and for all the wisdom of adopting these programs, while demonstrating the gross miscalculation of those who labeled them as bailouts.”

An Exelon spokesman declines

to comment on how much the company projects it could reap from the federal tax credit.

There’s broad support on Capitol Hill for preserving the nation’s existing nuclear-plant fleet, which has been under financial pressure for years due to low natural gas prices and subsidized competition from renewable projects. Billing federal taxpayers for the cost of propping up the industry arguably is preferable to what’s been happening, which is to hike electric bills via bailout surcharges. That’s more regressive given the pressure on low-income households to keep current on utility bills.

STATE LEVEL

Less clear, though, is whether the Quad Cities and Clinton subsidies would remain without additional state action. It’s possible the Illinois Legislature would have to repeal them in order to take ratepayers off the hook entirely and put the onus on federal taxpayers.

The Pritzker and Rauner nuke subsidies combined tack about $5 a month onto the average residential electric bill in northern Illinois.

Asked about the possibility, Pritzker spokeswoman Jordan Abudayyeh says in an email, “As the governor has said, his administration remains committed

to reviewing legislation that protects ratepayers. We look forward to continuing that work with our partners in the General Assembly.”

The potential bonanza for Exelon, the nation’s largest operator of nuclear plants, comes just as it’s preparing to spin off its power-generation arm into a separate publicly traded company to be renamed Constellation.

Exelon will continue to be the parent company for ComEd and other regulated utilities in the Eastern U.S. The question now is whether it will be sent to Biden’s desk, since there’s no Republican support for it and Democrats have thin majorities in the House and Senate. Moderates and progressives have skirmished on an intraparty basis over the scope of the legislation, what it should fund and who should pay. New data showing inflation persisting longer than economists expected is creating anxiety among centrists that the measure will exacerbate the pressures on consumers.

On Nov. 6, when Exelon last answered analysts’ questions, Kathleen Barron, executive vice president in charge of government and regulatory affairs, said, “We’re still feeling very confident about the Democrats’ ability to get . . . Build Back Better across the finish line.”

At Republic Bank, we’re proudly 7;Ѵb ;ubm] bmmo -ঞ ; voѴ ঞomv Ѵbh; -uѴ - |o o u 0 vbm;vv 1Ѵb;m|vķ _;u; o u ;lrѴo ;;v ];| r-b7 r |o | o 7- v ;-uѴ ĺ

No cost. No catch.

That’s Republic Bank of Chicago.

800.526.9127 rbankchicago.com/crains

P007_CCB_20211115.indd 7

11/12/21 4:06 PM

8 NOVEMBER 15, 2021 • CRAIN’S CHICAGO BUSINESS

How well do you know what your customers really want?

I

teach a course on new product innovation for MBA students, and one of the points I try to drive home is that any successful product is going to need to meet the needs or desires of a particular customer base.

That seems obvious. Right? But you’d be surprised how quickly that information fades from the minds of not only students, but well-seasoned product developers.

Last semester, shortly after driving this point home, my students started down a road of brainstorming new matcha green

a human tendency to think about the products that we would like to have ourselves. If you are similar to the people you’re selling to, that may not be a problem. But we often don’t even realize that our own experiences may put us in certain niches into which the majority of people don’t fit.

Knowing your customer is critical, but I’ve found that suggesting that to companies can cause them to balk at what they perceive will be a big expense. These days, however, it’s easier than ever to gather high-quality customer data that will better inform those product development GETTING A HANDLE ON THAT DOESN’T meetings.

The key is to learn from a few people in HAVE TO BREAK THE BANK. context. That is, if we are interested in detea-flavored products. Several of veloping a new breakfast prodthem were regular Whole Foods uct, for example, we need to shoppers. I had to remind them have some in-depth knowledge that the majority of grocery shop- about our customers’ morning pers don’t go to high-end stores, routines. We should watch them and their own flavor preferenc- prep themselves for work or get es might not fit into the broader the kids ready for school and ask about the frustrations they enmarket.

This happens because we have counter during those tasks. We

Arthur Middlebrooks is a clinical professor of marketing and executive director of the Kilts Center for Marketing at the University of Chicago’s Booth School of Business.

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

need to ask in-depth questions about the types of products they and their families enjoy and what

might make getting a nutritious meal down before heading out the door a little easier.

There are several agile and inexpensive research tools that can connect companies with this information, including UserTesting, dScout and Digsite. Customers who collaborate on these platforms will often keep diaries about their activities, upload videos of their routines or connect with a company via videoconferencing to answer in-depth questions or allow for observations.

Doing this with a dozen or so people from your customer base

is often enough to drill down and really understand their needs, and it might cost just a few thousand dollars. That’s not nothing, but it’s not the tens of thousands of dollars or more companies used to think it would cost to gather this kind of data.

After learning from your customers, it’s time to ideate, build prototypes, test them and refine the product. Repeat as necessary.

These quick, user-centered cycles get you closer and closer to new products and services that people might need and be willing to buy.

Ann & Robert H. Lurie Children’s Hospital of Chicago Lurie Children’s welcomes internationally recognized surgeon-scientist Thomas Inge, MD, PhD, as its next Surgeon-in-Chief.

Renowned for his expertise in pediatric bariatric surgery and research, Dr. Inge’s surgical outcomes research has been continuously funded by the National Institute of Diabetes and Digestive and Kidney Diseases since 2005. He has collaborated broadly to address key questions pertaining to pediatric obesity and surgical treatment, and has authored over 150 peer-reviewed publications and published nearly 60 reviews, editorials, books and book chapters. Dr. Inge joins Lurie Children’s from Children’s Hospital of Colorado, where he served as Associate Surgeon-in-Chief and member of the hospital’s Executive Leadership Team.

P008_CCB_20211115.indd 8

11/12/21 2:43 PM

CRAIN’S CHICAGO BUSINESS • NOVEMBER 15, 2021 9

SPONSORED CONTENT

CRAIN’S EVENT RECAP

TRANSPORTATION SERIES Senators Durbin, Duckworth Talk Infrastructure

A

fter years of promises and false starts, the largest infrastructure legislation in decades has passed Congress. The $1.2 trillion bipartisan package includes major investments in roads, bridges, public transit, railways, broadband and safe water.

Recognizing the legislation’s potential to have an extraordinary impact on Chicago and the region, Crain’s recently held a webcast to take a deeper look at what’s in the bill and how it will benefit the area. Illinois’ U.S. senators Tammy Duckworth and Dick Durbin appeared together on the webcast—part of the Crain’s 2021 Transportation Event Series, exploring topics related to transportation and infrastructure in the region and state.

The event was sponsored by H.W. Lochner, a national transportation and engineering firm based in Chicago. In opening remarks, Paul Loete, Illinois area manager and vice president at Lochner, noted that the new federal legislation comes just two years after the passage of the $45 billion Rebuild Illinois capital plan. “We are at a unique time in respect to how technology and the environment are transforming transportation,” he said.

Crain’s reporter Greg Hinz led the discussion. Here are five key questions and the senators’ responses.

1. What’s in the bill for Illinois?

The bill is a big win for the state, creating jobs and making major investments in roads and bridges, public transit, passenger rail, drinking and wastewater, and broadband. In particular, Duckworth noted that Illinois will receive $9.8 billion in federal highway aid; $1 billion for bridge replacement and repairs; $4 billion for public transit; $100 million for broadband coverage across the state; $149 million to expand an electric vehicle charging network in the state; as well as becoming eligible for competitive grant programs.

2. Why should people of Illinois care? “You don’t really appreciate infrastructure until you don’t have it,” Durbin remarked. Good, solid infrastructure means people can get to work and school, and be

P009_CCB_20211115.indd 9

more productive. In fact, the state has 2,400 structurally deficient bridges. “We need to make this investment,” Durbin said. He emphasized Illinois’ big advantage: location, location, location. “We are in the middle of the nation and have always been able to capitalize on that,” he said. But, he added, it’s time to modernize highways, railroads and take infrastructure to the next level. That includes investments in the future, such as those exemplified by the Rivian electric vehicle plant in Normal with more than 2,000 employees, and Libertyville-based EVBox, a global manufacturer of charging stations. Duckworth said that the infrastructure package is an investment in our communities and that Illinois can lead the way to sell innovative technology to the world.

3. What about public transportation? Bus and rail systems will be improved across the state. Funds will help accelerate the All Stations Accessibility Program, championed by Duckworth, who uses a wheelchair. She recalled attending an event several years ago to launch an effort to make CTA stations accessible only to learn that it could take 20 years.

“I’ll finally be able to ride the L,” she said. The extension of the CTA’s Red Line south from 95th street will be a priority to receive grant money for special projects, according to Durbin. “Buses are important too,” he said. Peoria and Rock Island are modernizing their bus systems. ChampaignUrbana has introduced hydrogen fuel cell powered buses. The hydrogen is produced with solar power, creating zero emissions.

“We will be funding the same thing in Chicago,” Durbin said.

4. Will Amtrak be improved?

“Amtrak is the future not the past,” Durbin said. “We want to expand it.” New train engines and passenger cars are being introduced to improve the passenger experience. The senators agreed that Amtrak’s on-time performance is a concern, pointing to freight train interference delays. Freight lines mostly own the tracks and give their trains preference in situations where the tracks are shared. Also, the senators would like to see Chicago’s Union Station modernized.

5. With its older housing stock, lead pipes are a concern. What can homeowners with lead pipes expect? “The goal is to replace 100% of the lead service lines in 10 years,” Duckworth said. “This infrastructure bill will get us the first five years towards that goal.”

She said $15 billion in the bill is earmarked for lead service line replacement, prioritizing projects in disadvantaged communities.

6. Are airports included? O’Hare Airport is in the early stages of an $8 billion expansion, mostly funded through local sources.

But Illinois airports are expected to receive about $600 million for infrastructure projects from the new legislation. As O’Hare rebuilds its runways and basic support services, Durbin noted that now is the time to think about passengers and meet their 21st Century needs.

7. What’s left on the infrastructure to-do list? Both senators hope to find ways to

PANELISTS

DICK DURBIN

TAMMY DUCKWORTH

U.S. senator - Illinois

U.S. senator - Illinois

ease expressway congestion by providing alternative forms of efficient transportation, such as a dedicated highway to O’Hare Airport. “Let’s have a Daniel Burnham, big thinking moment,” Durbin said, referring to the famous architect who helped rebuild Chicago after the 1871 fire. Also on the senators’ wish list: More electric vehicle charging

stations; high-speed rail; more funds for new water pipes; further broadband expansion; and a carbon market to help cut emissions.

Sponsored by:

Serving Chicagoland Since 1944

Mile Long Bridge Reconstruction

Morgan Street Elevated Station

As a transportation consulting firm, we are proud of our Chicago heritage and our involvement in supporting the mobility of the City as it has grown and evolved.

North-South Wacker Viaduct Reconstruction and Congress Parkway Interchange Improvement Program Management

Learn more at hwlochner.com/chicago OR Follow us on

11/11/21 9:52 AM

10 NOVEMBER 15, 2021 • CRAIN’S CHICAGO BUSINESS

C

A

EDITORIAL

ne way to measure the amount of money to be made on sports betting in Chicago is to witness the number of high-profile public relations veterans who have been recruited to represent the interests of all sides concerned in the debate over legislation that would make the business possible in more places. Every well-known PR rep in town, it seems, has been engaged to rather insistently tout the viewpoints of their clients, whether they’re the owners of pro sports teams and stadiums who want a piece of the action, or they’re the gambling impresarios who view the prospect of in-stadium betting as a threat to the value of the casino they hope to build in the city if they’re lucky enough to win Mayor Lori Lightfoot’s blessing.

All those concerned are feeling a sense of urgency, no doubt, because a proposed ordinance is in the works that would allow sports-betting facilities to open at or near the city’s major stadiums.

Setting aside any qualms about funding government via gambling—that ship has sailed, for better or for worse—there are three practical considerations that should guide City Hall as it contemplates the pros and cons: Will expanded access to sports betting benefit the city’s bottom line? Can expanded access to sports betting serve as an economic driver in neighborhoods—particularly around the United Center and Guaranteed Rate Field—where more foot traffic could spark the development of restaurants, retail and other sorts of businesses? And can sportsbook action be expanded without leaving Chicago with a white elephant of a

GETTY IMAGES

O

The right bet for City Hall on sportsbooks

casino at some point down the road?

Real estate and gambling magnate Neil Bluhm, whose companies are involved in two of the five bids for a city casino, argued forcefully at a Nov. 8 City Council hearing that betting at stadiums would siphon revenues from the casino, which in turn would reduce the city’s tax take from the gambling house.

He noted as well that the state of Illinois, not the city, would collect gambling taxes from stadium sportsbooks. Representatives of Chicago sports teams, not surprisingly, see things differently. At the same City Council hearing, they contended that some of the state’s tax revenue from sportsbooks would come back to Chicago as funding for capital projects, and point out that stadium-betting operations would also create jobs.

Both sides are armed with data as well as anecdotal evidence from other cities that support their claims. Fair enough. But let’s just think this through for a minute, shall we?

If you, dear reader, were enjoying an afternoon at the Friendly Confines and wanted to bet on your beloved Cubs, would you put down your beer, hail an Uber and scoot to the Chicago casino (wherever it may eventually be) to place your wager? Probably not. More likely, you’d pull out your iPhone and bet via an app like FanDuel. If a sportsbook window were inside the stadium, you might place a bet there on your way to the hot dog stand.

Either way, the state gets a cut, so not much changes from a tax revenue perspective. The vast majority of bettors happily choose to bet conveniently rather than inconveniently.

The argument over tax revenue—and where it flows, and how much of it will be cannibalized by the state vs. the city—is really a bit of rhetorical sleight of hand. Not to be unkind, but casino operators aren’t really as worried as they would like you to think about the state of the public purse. What they want is to own as large a piece as possible of the Chicago-area gambling market, and one way to guarantee a monopoly or, failing that, a near-monopoly is to get the government to box out any potential competitors.

As Crain’s Joe Cahill argued Nov. 10, City Hall should look to maximize competition, not constrain it. Any operator that can meet reasonable licensing requirements designed to protect the public at large from the wellknown evils of gambling, such as mob influence and exploitation of gambling addicts, should be allowed to compete. Restrictive licensing limits market growth, as Illinois’ approach to the legalized marijuana market shows. The state’s efforts to stage-manage who can get a cannabis license have led to slower revenue growth than a more open licensing process would have generated.

Monopolies chloroform the competition every industry needs to reach its full potential. Competition forces suppliers of a product or service to offer customers a better deal. That imperative fosters innovation, investment and hiring. In the long run, that’s what generates maximum growth, economic activity, opportunity and tax revenue. And those are the factors the Lightfoot administration and City Council should weigh when the sportsbook proposal finally comes to a vote.

The four non-tenant-fault reasons included are: The landlord wishes to occupy the unit or move in a close family member; the unit needs substantial repair or rehab; condominium conversion; and demolition or removal of the unit from the market. For these four reasons that are no fault of the tenant, relocation assistance would be required to be paid to the tenant to help them successfully relocate to a different apartment—with financial support to protect small landlords.

People often choose homes for proximity to work, friends, school and for a particular community, among many other reasons such as accessibility and affordability. Homes provide the base from which we connect with and contribute to our communities, make and share meals, care for children and older family members, participate remotely in classes and work, start and build businesses, and more.

A no-cause eviction often throws an individual’s or an entire family’s life and livelihood into disarray—at no fault of their own—while saddling the unfairly displaced household with thousands of dollars for the cost to move, replace possessions left be-

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

P010-P011_CCB_20211115.indd 10

Grou

Asso

Edito

Crea

Assis

Assis

Assis Cassa

Depu

Depu and

Digit

Asso

Copy

Copy

Cont

Polit

Senio Steve

Repo Elyss Ally M Steve

Rese

We need the ‘just cause for eviction’ ordinance

M

Chie

Cont

YOUR VIEW

nance into law to protect tenants ost of us Chicagoans from unjust no-cause and noare renters. Our rental fault evictions and nonrenewals units provide more than of leases—and to advance housshelter. Our apartments are our ing and health justice in Chicago. homes.

Under current law, Chicago Thousands of times each year landlords are not required to give in Chicago—10,000 times by a reason for lease termination or some estimates—a landlord casts nonrenewal. A lease termination a fellow Chicagoan or an entire notice is given, and if the tenant family out of their home due to no Wesley Epplin is does not leave by the specified cause and no fault of the tenant. time, a court eviction case is filed.

What if I told you that a com- policy director The just cause ordinance will monsense policy is already in of the Health & stop the practice of ending the place in many cities and states Medicine Policy landlord-tenant relationship around the U.S.—and has been in Research Group through termination, nonreplace in some cases for decades— in Chicago. newal and eviction without good that can reduce several related problems simultaneously: evictions, hous- cause or fault on the tenant’s part. Just cause ing instability, homelessness, community would establish seven exclusive reasons for displacement, health inequities and inter- ending the landlord-tenant relationship.

Three of these are tenant faults, covertwined structural racism and class inequity ing existing reasons: nonpayment of rent; in Chicago?

Known as just cause for eviction, such an material breach of the lease or law, such as ordinance is currently before the Housing disrupting neighbors, damaging property, & Real Estate Committee of Chicago’s City criminal activity, denying landlord access Council. The committee should advance, or drug-related activity; or refusing to renew and the City Council should pass, this ordi- the lease on similar terms.

cago racia try.

Ho tion rentl Asian Th votes Du Coun cago Grea the g

Gene and

Direc

hind, and hopefully settle into a new apartment. Oftentimes, such an eviction leads people to doubling up, homelessness and even displacement from our city altogether, thus worsening population loss.

Given the compounding effects of structural racism and class inequity, such evictions are disproportionately experienced by Black Chicagoans and people living in poverty. This reflects and exacerbates systemic oppression.

Additionally, evictions contribute to broader health inequities, including in both physical and behavioral health and maternal and child health. Evictions interrupt children’s education and disrupt people’s ability to go to work, causing job destabilization and loss, harming our local economy and people’s health.

Government’s purpose is to protect people’s health and well-being. Passage of the just cause for eviction ordinance will protect Chicago’s renters against several ills; help stabilize our rental housing market, communities, and local economy; and promote the health of the public. Chicago needs the just cause for eviction ordinance now.

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

11/12/21 4:24 PM

Direc

Even Chris

Mark

Prod

Even

Acco Claud Cour

Peop

Proje

Digit

CRAI

Keith

Mary

KC Cr

Chris

Lexie

Robe

Veeb

G.D. C Mrs.

For s conc chica (in th (all o

nd nbit d, as of as ea ea is ial

CRAIN’S CHICAGO BUSINESS • NOVEMBER 15, 2021 11

YOUR VIEW

City’s Asian Americans demand a voice in our democracy

A

round 150 years ago, the first Chinese immigrants settled in Chicago. Today, Asian Americans constitute 7% of Chicago’s population and are the fastest-growing racial demographic in our city, state and country.

However, Asian Americans lack representation on Chicago’s City Council. There are currently no Asian American alderpersons nor an Asian American-majority ward in Chicago.

That could change when the City Council votes on a new ward map later this month.

During this redistricting cycle, the City Council has the opportunity to create Chicago’s first Asian American-majority ward in Greater Chinatown. This would finally allow the growing Asian American community in

Justin Ian Sia is democracy, voting rights and redistricting counsel at Asian Americans Advancing Justice in Chicago.

Grace Chan McKibben is executive director of the Coalition for a Better Chinese American Community.

CHICAGO BUSINESS

Chief executive officer KC Crain

on al. or at nt nty, re nd s-

Digital design editor Jason McGregor

ccby vic

ly advocate for culturally relevant assistance.

Outside of Chinatown, Asian Americans have similar needs, such as in Albany Park, where a significant number of Koreans, Filipinos and South Asians work and raise families, as well as Uptown and West Ridge, which host vibrant Southeast Asian and South Asian business corridors, respectively.

Just as other minority groups cherish and fight for representation, Asian Americans demand a voice in electing our leaders.

If our communities are kept whole during redistricting, Chicago’s Asian Americans may finally achieve representation by electing an Asian American alderperson or two.

And it’s about time—around 150 years in the making.

CRAIN’S

ty n, et ed lluts, ve is’ arned en

tds d r,

the near Southwest Side to consolidate their voices in City Hall.

The City Council also has the chance to ensure Asian American communities in Albany Park, Uptown and West Ridge are kept whole in their own wards.

For decades, these Asian American communities each have been splintered into multiple wards. This has deprived Asian Americans of the ability to elect an Asian American to the City Council or exercise meaningful influence.

Drawing an Asian American-majority ward in Greater Chinatown would create an opportunity for residents to elect an alderperson who understands the unique issues that affect our community. An Asian American alderperson would be more able to effective-

Group publisher/executive editor Jim Kirk Associate publisher Kate Van Etten Editor Ann Dwyer Creative director Thomas J. Linden Assistant managing editor/columnist Joe Cahill

...

Assistant managing editor/digital Ann R. Weiler Assistant managing editor/news features Cassandra West Deputy digital editor Todd J. Behme Deputy digital editor/audience and social media Robert Garcia Associate creative director Karen Freese Zane Copy chief Scott Williams Copy editor Tanya Meyer Contributing editor Jan Parr Political columnist Greg Hinz Senior reporters Steve Daniels, Alby Gallun, John Pletz Reporters Elyssa Cherney, Katherine Davis, Danny Ecker, Ally Marotti, A.D. Quig, Dennis Rodkin, Steven R. Strahler Contributing photographer John R. Boehm Researcher Sophie H. Rodgers General manager, product and technology Kevin Skaggs Director of research Frank Sennett Director of custom media Sarah Chow Events manager/account executive Christine Rozmanich Marketing manager Cody Smith Production manager David Adair Events specialist Kaari Kafer Account executives Claudia Hippel, Bridget Sevcik, Laura Warren, Courtney Rush, Amy Skarnulis People on the Move manager Debora Stein Project manager Joanna Metzger

o h apt ’s imy

Digital designer Christine Balch

ohe ct p mte he

Lexie Crain Armstrong Secretary

CRAIN COMMUNICATIONS INC. Keith E. Crain Chairman Mary Kay Crain Vice chairman KC Crain Chief executive officer Chris Crain Senior executive vice president

Gateway Plaza Richmond, Virginia

Robert Recchia Chief financial officer Veebha Mehta Chief marketing officer G.D. Crain Jr. Founder (1885-1973) Mrs. G.D. Crain Jr. Chairman (1911-1996) For subscription information and delivery concerns please email customerservice@ chicagobusiness.com or call 877-812-1590 (in the U.S. and Canada) or 313-446-0450 (all other locations).

We see our work through the eyes of the people who will use them every day. Through their eyes, we see places of education, innovation, industry, technology, research and entertainment.

The result? Powerful structures with impacts that reach far beyond these walls.

claycorp.com

cation

P010-P011_CCB_20211115.indd 11

11/12/21 3:25 PM

12 NOVEMBER 15, 2021 • CRAIN’S CHICAGO BUSINESS

The push to rehab this historic Chicago theater is gaining renewed traction

Blanche Killingsworth and Robert Marshall

Killingsworth, 69, reminisced about coming to the elaborate theater as a child after she moved to Chicago from Mississippi in 1962 during the Great Migration that saw Black families like hers lay down new roots across Northern cities. Unlike in the Jim Crow South, which relegated Black movie viewers to upper floors with inferior views, Killingsworth was allowed to sit on the main level of the Central Park Theater to watch films and live performances.

“I still feel that grandeur when I come in,” she said.

It still appears early, however, for the theater to obtain landmark status from the city. The National Register recognition serves a predominantly honorary purpose, Seidel said, and advocates believe a local designation would enhance protection for the site, expand access to funding and give the property more attention.

Peter Strazzabosco, a spokesman for the Department of Planning & Development, said staff has been discussing the building’s preservation needs with the owner and other stakeholders for more than 20 years. A formal suggestion was submitted in September to the committee that reviews public proposals for city landmarks, but no further action has been taken.

rector of community engagement at Preservation Chicago.

The church’s founding pastor, the Rev. Lincoln Scott, acquired the property when squatters were vandalizing it and enlisted congregants to make repairs, such as repainting the auditorium and putting on a new roof, all at his own expense. Scott used the space to host gospel concerts, feed the homeless, gather donations for clothing drives and hold services until he died in 2015.

Scott kick-started the drive to renovate the Central Park Theater when the city ordered it closed between 2012 and 2018 due to extensive code violations. The church resolved major safety issues, allowing people to return inside, but addressing all of the violations was estimated to cost at least $300,000.

Scott footed the bill but couldn’t afford that magnitude of repairs, said Pastor Robert Marshall, who now leads the congregation, which has dwindled to about 25 members.

“He refinanced his house for the upkeep of this building,” Marshall said.

The theater is subject to building code violations and not being used by the general public, Strazzabosco said in an email.

“The owner’s capacity to correct the violations and maintain the building for public use are unknown,” he wrote. “The Commission, as a general policy, does not recommend landmark designations for properties that owners are unable to maintain or operate.”

The Commission on Chicago Landmarks typically waits until a more concrete restoration and financing plan is in place before recommending to the City Council that a property receive the legally protected designation, particularly if there’s no immediate threat of demolition and outstanding structural issues.

Should a threat arise, that would also delay any demolition permit for at least 90 days because the theater was previously cataloged as a structure with architectural or historical significance.

The Jewish United Fund got involved in the project because North Lawndale hosted a vibrant Jewish community in the early 20th century before neighborhood demographics changed.

The organization wrote a letter to the landmarks commission vouching for the project in July.

“Given the mayor’s current priority to invest in the South and West sides, this goes right along with it,” said Jane Charney, assistant vice president of local government affairs at JUF. “There are some fantastic plans to also work with theater companies, art professionals and community institutions that can also be housed in that building.”

1917—from a largely dormant 1,800-seat auditorium owned by a small church into a bustling community and commercial hub in the economically stunted West Side neighborhood.

The multilevel theater with ornate balcony boxes is thought to be the first that offered mechanized air conditioning to guests— though it now lacks any HVAC system—and served as a blueprint for other luxurious movie palaces developed by Balaban & Katz including the Chicago, Uptown, Riviera and Oriental (now Nederlander) theaters. Rich red brick and intricate terracotta-lined towers adorn the Central Park’s facade, which sits in the 3500 block of West Roosevelt Road across from an abandoned liquor store and next to an empty lot overgrown with grass. Many of its original Mediterranean Revival features in the grand lobby and vast auditorium remain intact.

Renowned performers such as clarinetist Benny Goodman and the Jackson 5 graced the stage during its better days.

“It served a purpose in the past, it can serve a purpose in the future,” said Blanche Killingsworth, co-founder and president of the North Lawndale Historical & Cultural Society, one of the nonprofit organizations spearheading renewed efforts to renovate the theater, which was added to the National Register of Historic Places in 2005.

PHOTOS BY JOHN R. BOEHM

THEATER from Page 3

CODE VIOLATIONS

COALITION

Though a diverse coalition of advocates—including Preservation Chicago, the School of the Art Institute of Chicago and the Jewish United Fund—have joined forces to uplift Central Park Theater, it faces the same precarious fate as theater restoration projects that haven’t come to fruition, despite being better known and securing more funding, including desirable tax-increment financing (advocates say they haven’t yet explored what TIF money might be available). In addition to those challenges, Central Park Theater has its own unique hurdles. There are outstanding code violations, the building needs about $50,000 to make emergency repairs before winter conditions exacerbate water damage and it’s located in a blighted area that might be less attractive to investors.

But those issues aren’t enough to spook the advocates, who’ve formed the Central Park Theater Restoration Committee and are rallying for the building to receive city landmark status, which would help raise awareness about its history and open the door to more grants and financial benefits. They say they’re also committed to ensuring that the House of Prayer, Church of God in Christ, which has controlled the property since 1971, retains majority ownership, even if that deters potential development partners, according to Mary Lu Seidel, di-

P012_CCB_20211115.indd 12

The church still meets for prayers in the building during the summer but can’t do so when it gets chillier since there’s no working heat.

INCUBATOR

One party interested in the space is Theatre Y, a small nonprofit theater incubator that’s looking for main offices and to build a black box theater after another West Side property fell through. Theatre Y could bring $250,000 from the city’s Neighborhood Opportunity Fund, which supports commercial and cultural projects in underinvested areas, and funding from the League of Chicago Theatres, according to artistic director Melissa Lorraine.

A partnership with the church will hinge on whether the city allows zoned renovations so repairs can start at the front of the building, which Theater Y hopes to occupy in 18 months, while more extensive work in the auditorium begins later.

“We have a shared vision and a great deal of synchrony in what we’re trying to accomplish in the

community and this space,” Lorraine said, while also acknowledging that “some very concrete question marks still remain.”

The total renovation, which could cost anywhere from $12 million to $25 million and take up to five years, will be contingent on financing, which has been slow, Seidel said. Of the $50,000 needed for emergency repairs, just about $8,000 has been raised through a GoFundMe page and a Landmarks Illinois grant.

“We’re not going to raise $25 million very easily by just donations, so we are looking at financing and fundraising and securing tenants,” Seidel said.

Killingsworth, who helped bring the committee together, said the theater is more than just an architectural marvel and pointed to its cultural significance in a neighborhood that evolved from an industrialized center, anchored by the original Sears Roebuck headquarters, to a low-income Black community after the 1950s that suffered permanent damage in riots following Martin Luther King Jr.’s assassination.

11/12/21 4:09 PM

CRAIN’S CHICAGO BUSINESS • NOVEMBER 15, 2021 13

EXTENDING PROSPERITY: When a seat at the table creates opportunities for wealth-building. PAGE 16 READY TO SCALE: Any number of businesses have the potential to “up their game.” PAGE 16

Founders of the Black Bread Co.—Charles Alexander, from left, Mark Edmond and Jamel Lewis—at the Mariano’s store in Bronzeville.

BUILDING BLACK-OWNED BIGGER

JOHN R. BOEHM

COMMUNITY DRIVEN: An initiative in Bronzeville makes space for entrepreneurs to thrive. PAGE 17

CRAIN’S CHICAGO BUSINESS WEALTH-BUILDING

Chicago’s African American entrepreneurs are seizing the moment to scale up their businesses—and create a legacy of generational wealth

BY CASSANDRA WEST Dispatched by his wife to buy groceries for their family, Mark Edmond went looking for the first item on her list, bread. He spent nearly an hour in the bread aisle of a Pete’s Market Googling bread manufacturers on his phone while thinking: “I’m not going to support any brands that aren’t Black-owned.”

Edmond returned home without any bread. He brought back something else instead—a business idea. After sharing it with his wife, he called his two best friends, Jamel Lewis and Charles Alexan-

der, who instantly bought into Edmond’s desire to start a sliced-bread company. His wife, Natasha, approved.

The Black Bread Co. opened for business on Feb. 1 with a livestream on Facebook and Instagram. But Edmond’s epiphany in the Pete’s aisle happened shortly after the murder of George Floyd, when media and activists were bringing attention to the minuscule share of consumer dollars going to Black-owned businesses.

“As African Americans, we don’t own or make any of the products that we use every day,” says the company’s co-founder Jamel Lewis. He believe it’s important for Black

entrepreneurs to produce “something that we use every day.”

The fact that as a consumer Edmond couldn’t find one Black-owned company that made an everyday staple like sliced bread prompted him to “take action with my money,” he says. “We have to start competing.”

“Walmart called us a couple of days ago,” interested in getting Black Bread Co.’s products on its shelves, Edmond says. There’s interest from Target, Sam’s Club and Pete’s Produce and a contract signed with Meijer.

Black Bread is in all Mariano’s stores.

In the last year, stories about how whites

in Tulsa, Okla., destroyed Black Wall Street 100 years ago helped spur interest in supporting Black-owned businesses, as large retailers like Sephora, Target and Walmart highlighted Black-owned brands. Statistics, however, show the high hill such brands have to climb.

The 19 million white-owned businesses in the U.S. collect 88% of overall sales and control 86.5% of U.S. employment, according to government data. Black businesses have 1.3% of total U.S. sales and 1.7% of the nation’s employees. Latino businesses are See SCALING UP on Page 14

SPONSORS

P013-P017_CCB_20211115.indd 13

11/12/21 2:40 PM

14 NOVEMBER 15, 2021 • CRAIN’S CHICAGO BUSINESS

CRAIN’S CHICAGO BUSINESS

SCALING UP

He n Geor civic Re tee o cago they educ form issue issue mad to tr large scale As mitte “We’ ing t versi gram “Th ing t over bers men McK from us re derta inno busi Re ic Co Illino in th servi

Continued from Page 13 responsible for 4% of U.S. sales and 4.2% of U.S. employment. In 2013, the top 1% of households had 62.8% of all business equity. The total racial wealth gap amounts to between $8 trillion and $10 trillion, according to estimates based on the Federal Reserve’s Survey of Consumer Finance and analyzed

by Boston Consulting Group.

Facts like these bring into stark relief the vast disparities that limit the ability of Black entrepreneurs to scale up their businesses. Among Black entrepreneurs in Chicago that Crain’s interviewed, growing revenue, creating jobs and entering high-growth sectors are essential in the ongoing drive to achieve social and financial equity.

P013-P017_CCB_20211115.indd 14

JOHN R. BOEHM

JOB CREATORS

Stephen Davis, who founded the Will Group, an electrical-, lighting- and energy-related business in 1986, says an unintended consequence of desegregation was a weakened social infrastructure that left many Black communities struggling financially. He says, “When I drive by the West Side and I see the struggles, I stay awake at night because my community lies in ruin and what am I doing to help?”

Davis is committed to leveraging his financial success “to create jobs in communities that have been abandoned.” His company, which had $70 million last year in revenue, made a $20 million investment on the West Side earlier this year, when it opened a 60,000-square-foot factory and warehouse at 4647 W. Polk St. in the Lawndale neighborhood. The company, which specializes in contract manufacturing of light fixtures for customers like ComEd, plans to eventually offer more than 120 jobs on the site.

“Our goal is to create a work environment where people can have above-minimum wage, health care and retirement benefits,” Davis says. “And also create housing so that we can revitalize our community, where there is an ecosystem, where you can buy groceries. I can’t do it by myself, but if we can collectively plant a seed and get it to grow and get other people that are socially conscious entrepreneurs, we could see a difference.

I’m counting on it.”

Ariel Investments CEO John Rogers often speaks on the challenges, gains and opportunities made by Black businesses and entrepreneurs.

“In the past here in Chicago, we had these giant Black businesses” Rogers said, referring to Johnson Publishing and Johnson Products, manufacturer of hair-care and cosmetic products, during a virtual conversation in October co-presented by the University of Chicago Booth School of Business. “They employed hundreds of thousands of people and created enormous amounts of philanthropy.”

George Johnson, who founded

Stephen Davis, founder of the Will Group, with daughter Jessica Ashley Garmon, chief operating officer and general counsel, and son Joshua Stephen Davis, president.

w GOALS AND PRIORITIES Black business owners keep their eyes on growth.

50% OF BLACK BUSINESS OWNERS INTEND TO APPLY FOR A BANK LOAN OR LINE OF CREDIT THIS YEAR, AND THEY’LL USE THAT FUNDING FOR: 42%

Payroll/staffing 37%

New safety measures/protocols 33%

Expanding operations

OVER THE NEXT 12 MONTHS, BLACK BUSINESS OWNERS… 84%

Expect revenue to increase 82%

Believe their local economy will improve Plan to hire

64%

Source: Bank of America 2021 Small Business Owner Report survey conducted by Ipsos Public Affairs

the hair-care company with his wife, Joan, created the now-closed Independence Bank, once the largest Black bank in the country, and buoyed other Black-led organizations with meager resources, Rogers said. “We need to get back to where Chicago is the mecca, where we had these large Black businesses that hired people, that were inspirations. They were role models.”

The Business Leadership Council, or BLC, is a catalyst for creating opportunities for Black businesses in Chicago, says Cory Thames, chief engagement officer. The organization has 170 members representing over 25 industries, from construction to financial services to legal services to information

technology. Some 70% of its members are CEOs. During the summer, BLC launched a chairman’s breakfast, hosted by Charles Smith, CEO of the BLC and CS Strategies insurance firm. The breakfasts “bring industry leaders to BLC membership to talk about the existing opportunities that they have in their respective organizations,” Thames says. So far, BLC members have met with Illinois Transportation Secretary Omer Osman; Don Biernacki, the executive vice president of construction for Related Midwest; and the leadership team from Farpoint Development, a commercial real estate developer working on the Bronzeville Lakefront development project.

“Ultimately the takeaway is to create real business opportunities,” Thames adds. “What you are seeing now are more Black firms that are willing to partner with each other and do strategic alliances so that they can be competitive in the marketplace and go toe to toe with your well-known primes.”

Thames cites two examples. One is the Lakeside Alliance, a joint venture of four African American firms—Powers & Sons Construction, UJAMAA Construction, Brown & Momen and Safeway Construction—that have partnered with Turner Construction on the building of the Obama Presidential Center. Another partnership, GRE Ventures, brings together Cornelius Griggs’ GMA construction, 548 Development founder Robert ‘A.J.’ Patton and Torrey Barrett, principal of Imagine Development Group, a boutique real estate development firm.

GRE Ventures won the Lawndale Redefined project, a $31.4 million development that’s part of Mayor Lori Lightfoot’s Invest South/ West program, aimed at spurring development in communities of color that have been historically neglected.

WEALTH-BUILDING

Many Black entrepreneurs approach business owning, and building bigger businesses, as the primary equalizing factor in African Americans’ long struggle to move up the economic ladder.

“The idea of generational wealth-building was one of the premises that led to BLC being created,” Thames says. BLC’s executive committee at the time wanted an organization that would actively advocate for the interests of Black businesses and entrepreneurs at a higher level (and) creating true generational wealth in our community. BLC is being intentional about “building the pipeline of the next generation of talent” and grooming that talent to ascend into leadership positions to “one day start their own firms or take over their firms.”

For Hugh Williams, an entrepreneur and commercial real estate developer involved in multiple projects, these partnerships have to be more than checking-the-box-on-diversity deals. “Every time I talk to a majority contractor, I say, ‘If you guys are excited to meet me because I’m an MBE and this is the box you want to put me in, I have no interest in doing long-term business with you.’ ” Chicago, indeed, the country needs more “great minority-owned companies,” Williams says. And that means not being relegated to one niche or sector. He wonders what some reporters who have interviewed him mean when they say to him, “ ‘You seem busy.’ Does anyone say Warren Buffet is busy?”

Black CEOs like Ariel’s Rogers accept the fact that a certain level of buy-in from the majority business community is essential.

11/12/21 2:40 PM

CRAIN’S CHICAGO BUSINESS • NOVEMBER 15, 2021 15

JOHN R. BOEHM

He noted how after the tragedy of George Floyd’s murder, Chicago’s civic community came together.

Referring to the Civic Committee of the Commercial Club of Chicago, Rogers said that, “In the past, they’ve focused on new runways, education reform or pension reform. They take on these big giant issues. They decided to take on the issue of the Black wealth gap and made a commitment to really start to try to drive forward in building larger Black-owned businesses of scale here in Chicago.”

Asked to comment, Civic Committee President Kelly Welsh says: “We’re in early stages of addressing this challenge in business diversity and in developing a program in this regard.

“The thinking is that this is going to be a long-term commitment over years. We’ve engaged members and also have gotten tremendous pro bono support from McKinsey and BCG and teams from those organizations to help us review best practices and undertake pilot programs to develop innovative and better ways to grow business diversity.”

Research provided by the Civic Committee shows that in 2017, Illinois had 7,197 MBE businesses in the professional and business services sector, with average rev-

Lita Selmon opened her own lifestyle brand store in downtown Oak Park to sell organic and natural apothecary products. enue of $1.6 million. MBE is defined in the research as a business with a Black, Latino or Asian/Pacific Islander owner.

Rogers says the committee is talking to leaders throughout the Chicago area to get commitments

“first to try to build out large technology businesses of scale in the African American community.”

The focus there is on high-growth sectors, with business and professional services being the top category and generating about $85 billion with profit margins typically 5% to 20%. Rogers notes that previous efforts to increase Black business participation focused on supplier diversity, “pushing Black businesses into the lowest margin, least important parts of the spend while the wealthiest people in Chicago were in professional financial services and technology.”

A Bank of America national survey over the summer found 85% of Black small-business owners say social justice issues have impacted their approach to running or conducting their business, including, openly communicating a commitment to equity. The Small Business Administration defines a small business by firm revenue (ranging from $1 million to over $40 million) and by employment (from 100 to over 1,500 employees).

BEYOND SMALL

But more Black-owned businesses want to get beyond “small.”

Williams, a principal at MK Asset Management, owns and manages more than $100 million in commer-

cial and residential buildings. He co-founded Umoja Supply Chain Solutions, a logistics company that specializes in hunger relief and food for health with warehouses in Houston, Sacramento, Calif., and Youngstown, Ohio. “More than half of my partners are Black. All businesses are minority controlled.”

His college student niece said to him, “Uncle Hugh, it sounds like you want to build a legacy.”

“I want to build a Black conglomerate,” he says.

Others want to build a brand. In mid-August, Lita Selmon opened Einnim, what she calls a lifestyle brand, in downtown Oak Park.

The store, next to the Lake Theater, sells organic and natural apothecary products handcrafted

by Selmon. She watched her Los Angeles-based friend grow her own beauty brand, Freck, into a multimillion-dollar company in three years. Since opening, Selmon, a former director of operations for a marketing agency, has added several employees. “I want to hire people who have the same spirit as I do to grow and then move on or help build this empire.”

In Hyde Park, Leslie Roberson opened the Velvet Collection, the only Black-owned luxury linen rental business in Chicago, on 53rd Street. Roberson, who once

worked for the e-commence home goods company Wayfair, wasn’t deterred by opening a shop during the pandemic. She’s already thinking about more studios, warehouse spaces, delivery trucks and brand recognition. Her growth prospects are based on the market research she’s been doing. “I’m going to go big or go home,” she says.

The founders of the Black Bread Co., Einnim and the Velvet Collection are all in their mid- to late 30s. They bring a sophistication with digital platforms and social media that an earlier generation didn’t have. And, some might say, a boldness about building their businesses that their predecessors also didn’t have.

“The Black Bread Co. founders are looking to go beyond selling premium loaves and hotdog and hamburger buns. They plan to move in gourmet foods—and extend their brand throughout the store. To get an estimate of what the company might one day be worth, they sought an independent valuation. “Up to $50 million,” the valuator told Crain’s.

“We look at what we’re doing and what many Black entrepreneurs are doing,” says Alexander, one of the Black Bread Co. co-founders. “It’s the new Black Wall Street. We are reinventing.”

Investing in new businesses

ional f the being execwantwould erests ntre(and) ealth being g the on of ent to tions ms or

For 170 years, Peoples Gas has served Chicagoans by safely and reliably delivering natural gas that heats homes, cooks meals, makes showers and baths warm, and powers job-creating industries. The energy is there when it’s needed.

Peoples Gas was here in 1871, when the Great Chicago Fire destroyed the downtown area. We helped to rebuild Chicago, bigger and better than before. Today, we are still investing in Chicago’s future.

We understand that years of disinvestment in some of Chicago communities — mainly on the south and west sides — has led to myriad problems, which is why we are supporting the following initiatives to help build business equity here at home: We are the founding sponsor of United Way’s United Neighborhoods Equity Fund.

This program provides $50,000 grants to Black and brown-led nonprofits, connects them to new funding sources, and assists in building capacity at the grassroots level to accelerate neighborhood-driven outcomes and long-term success.

epreestate projto be n-dialk to f you e bes the ve no iness

untry wned And ed to nders ve inthey Does usy?”

Rogertain jority ntial.

For small businesses and entrepreneurs, we support YWCA Metropolitan Chicago’s Business & Entrepreneurship Services, which fosters the growth and acceleration of enterprises, especially those owned by women of color. The program offers technical assistance, business advising, comprehensive education and access to capital, which all assist entrepreneurs in creating, growing, scaling and capitalizing their business ventures.

In the Little Village community, we support the Women’s Business Development Center’s ScaleUp Program. This Spanish-language cohortbased program delivers comprehensive and extensive business development services. It equips entrepreneurs with the business and financial acumen, as well as the connections to experts, resources and tools, necessary to successfully operate profitable businesses that retain and create jobs, fuel economic growth and build strong communities.

We are extremely proud to deliver energy and economic opportunity to every part of the Chicago community.

P013-P017_CCB_20211115.indd 15

11/12/21 2:40 PM

16 NOVEMBER 15, 2021 • CRAIN’S CHICAGO BUSINESS

CRAIN’S CHICAGO BUSINESS

‘I

OPPORTUNITIES

What’s needed are more seats at the table F

Charles Smith is the executive chairman of the Business Leadership Council.

or far too long, there has been a grievous lack of investment in Chicago’s predominantly Black neighborhoods clustered on the South and West sides. That reality compromises the area’s Black residents and businesses striving to build wealth.

America’s Black households have always held significantly less wealth than white households and can’t seem to catch up. Even though they’ve made long-term gains in education and income relative to whites, the wealth gap is growing, the Brookings Institution reports.

Chicago’s Black business leaders decided to do something about this issue in 2009 and founded the Business Leadership Council. Our mission has always been to build Black businesses and develop the next generation of Black entrepreneurs and business leaders while committing resources to support the community. But now, 12 years later, our mission is clearer than ever, thanks to the pandemic, which has had a disproportionate impact on our Black community’s physical and fiscal health.

Building Black wealth takes inclusion and change at every level of society, from housing and health care to education and employment. But making that happen starts with investment in human capital and having a seat at the table.

My convictions are informed by my own experiences. I began working in the mailroom at CNA Insurance when I was 17 because I had to—I was a teenage parent with responsibilities.

That job was my education and showed

me a world I knew nothing about and inspired me to learn everything I could.

Once I learned more about the insurance industry, I realized I could have a great career in it—despite its diversity challenges. Eventually, I wrote a business plan for my own commercial insurance company. As I did, I realized that Black entrepreneurs face challenges regarding cash, credit and collateral. Fortunately, one of the largest Black-owned commercial insurance firms in the country wanted to develop the Chicago market, and I started its office here in 2007. In 2009, I purchased the company.

Today, I’m the CEO of that company, which is on target to create generational wealth and helped me gain a seat at many tables where business acquaintances become business collaborators and partners, and deals are shaped and sealed.

But I was lucky. Building human capital takes resources. Families need decent housing, suitable health care, safe neighborhoods, good schools and proper training to become productive members of the workforce and create greater economic output.

For decades, there has been a shameful divide in housing, health care, public education, safety and even food security between the mostly middle- and upper-class North Side and the mostly Black South and West sides. Meaningful change—despite the events of the past year spurred by George Floyd or the push for equity Mayor Lori Lightfoot’s making with her Invest South/West initiative—takes

Chic gro mov Blac

time and will require more partners.

Chicago is still way behind when it comes to investment in human capital.

Neighborhood schools are thriving on Chicago’s North Side but have struggled on the South and West sides. New Chicago housing developments that are affordable are almost exclusively in high-poverty areas to keep people of color from moving to more affluent—and amenity-rich—white neighborhoods.

In 2020, the U.S. unemployment rate was 11.4% for Black Americans and 7.3% for whites, and this year’s June unemployment numbers were 9.2% for Blacks and 5.9% for whites.

Understandably, many South and West side neighborhoods want the housing, schools, jobs and health care opportunities that more affluent areas have, and there is finally real hope that this can happen in a large-scale way, thanks to Bronzeville Lakefront, an $8.2 billion megadevelopment on the long-vacant site of the former Michael Reese Hospital campus.

Black interests, from community members to businesses, have a prominent seat at the table in this project.

GRIT Chicago, the developer, is a joint venture partnership where 50% of the

partner firms are Black-owned—the only project nationwide with minority owners at the top.

More significantly, the opportunities it will offer for Black wealth-building and employment are extensive. With its mix of retail, workforce housing, office space, hospitality and a life sciences research hub, and substantial infrastructure updates, the 8 million-squarefoot mixed-use development will create an estimated 45,000 direct and indirect construction jobs, 31,000 permanent full-time jobs and generate $8.2 billion in direct and indirect economic impact.

By comparison, the Michael Reese medical campus provided 4,000 jobs.

Economic growth of the magnitude Bronzeville Lakefront promises will extend economic prosperity across nearby South Side neighborhoods and set an example for inclusive development not just in Chicago but across the country.

Bronzeville Lakefront is the first such megadevelopment that aims to provide Black community members the housing, schools, jobs and health care opportunities they want and need to succeed, start businesses and build generational wealth. Let’s ensure it is not the last.

INVESTMENTS

Plenty of businesses are ready to ‘up their game’

E Mott Smith is co‐ founder of Amped Kitchens and principal at Civic Enterprise.

P013-P017_CCB_20211115.indd 16

ver hear the one about the rich kid who was born on third base but thinks he hit a triple?

How about the one about a kid who could’ve been the next Ernie Banks except his dad never bought him a glove?

The first joke rings true because we all know people—often ourselves, if we’re being honest—who mistake privilege for talent.

But just as often, we mistake a lack of achievement for a lack of talent. And that’s a real loss, especially when the right coaching, equipment and team might be all the next all-star needs to fulfill their potential.

Clarence Booth, a Chicago-based manager at national business consultancy West Monroe, is taking that awareness into the business world. Late last year, in the wake of George Floyd’s death and the exploding national conversation about race, he launched the Small Minority-Owned Business Pro Bono Initiative. It extends the firm’s world-class operating expertise and

referral networks to people who otherwise wouldn’t have access.

Already, the effort is helping unlock talents like Yasmin Curtis, whose cookat-home, Cajun-style seafood business, Two Fish Wholesale, is an early success.

Before the pandemic, Curtis owned and operated Two Fish Crabshack, a Bronzeville staple with lines out the door. But the COVID lockdowns dealt her a critical blow. She pivoted, offering her signature shellfish boils in ready-tocook takeout packages. Demand surged, providing much-needed stability. It also introduced a new, welcome problem: how and where to grow her burgeoning wholesale operation.

According to Booth, this is where small businesses often choke. Faced with the operational challenges of growing demand, founders can find themselves stuck on home base. “All they know is how to work harder,” he says, “and it’s unsustainable.”

Step one for Curtis was securing a licensed production space at

Amped Kitchens, a new full-service 117,000-square-foot facility in Belmont Cragin with 64 spaces for growing food companies, including many minority-owned businesses.

Step two was finding operating support. “I was doing everything—buying toilet paper, being my own secretary.

Whatever needs to happen in a $100 million business still needs to happen in a startup, and I was doing all of it.”

“What I needed was mentorship . . . someone to help me find the right place to manufacture, to tell me not just that I needed software, but that I needed this particular package that lets me track sales around the world with bar codes; someone to tell me, ‘You might not see it yet, but you’re going to need capital to help you grow,’ ” she says.

Jason Estremera, executive director of the Northwest Side CDC, an economic development and housing nonprofit, sees growth facilities, knowledge and resources as key to small-business success. “There’s a misconception that

these businesses are struggling. The truth is, a lot of them are doing really well—making great money, paying their employees and paying rent. It’s just that they don’t have the tools to maximize their potential or set up for scaling as well as they could.”

Even without programs like NSCDC’s or West Monroe’s, small, minority-owned businesses are increasingly engines of job creation, neighborhood revitalization and generational wealth-building for underrepresented communities. In the last 20 years, the proportion of small employers with minority ownership has nearly doubled, according to the Small Business Administration.

This is welcome news. But Chicago needs even more investment in supportive resources for minority-owned businesses. With more know-how, facilities and networks available to all, just imagine how many future Hall of Famers might start upping their game.

11/12/21 2:40 PM

Be ago 51st neigh fore camp supp busin Lo of th But cons often ing c Whe outsi tainm doin switc in m hund away Hi

he ority

ities ng th its ffice s uarereate irect nt lion pact.

bs. de exearby an not try.

CRAIN’S CHICAGO BUSINESS • NOVEMBER 15, 2021 17

‘Investment needs to come from our community’ Chicago’s Bronzeville is ground zero in the movement to revitalize Black-owned businesses

BY CASSANDRA WEST Bernard Loyd set out 16 years ago to revitalize businesses along 51st Street in Chicago’s Bronzeville neighborhood. That was long before the recent awakenings and campaigns by corporate America to support and highlight Black-owned businesses.

Loyd had an on-the-ground view of the neighborhood. He lived there.

But as a corporate management consultant for McKinsey & Co., he often spent most of the week serving clients anywhere but Chicago.

When he was home, Loyd had to go outside the neighborhood for entertainment, food and groceries. “After doing that for 13 years, I decided to switch my focus and spend my time in my neighborhood rather than hundreds or thousands of miles away.”

His experiences can be viewed as

a case study in what it takes to create thriving enterprises in an urban community weighed down by years of neglect and disinvestment.

In 2005, Loyd purchased a building and two lots near the Green Line, launching Urban Juncture to rebuild Bronzeville’s commerce around food. “Chicago had all these wonderful ethnic food destinations, in particular Chinatown, Greektown, Little Italy, Little India, Koreatown. But no such destination around Black cuisine.”

Creating “a culinary dining destination, a restaurant row” was more difficult than he and his partners thought it would be. “Our timing was perfectly bad.” The recession hit and the venture lost the institutional partners it depended on for capital.

“We realized that we couldn’t just make change on one very narrow aspect of community,” Loyd says.

And it was hard to convince people to come to a restaurant surrounded by blight and violence. “Those restaurants wouldn’t be able to survive.”

With little capital to speak of, Loyd and his partners broadened the vision to develop Boxville, Chicago’s first shipping container mall.

The Urban Juncture team and its community partners have spent more than $10 million on the 51st Street venture over the past 10 years.

He calls it a “drop in the bucket,” considering the disinvestment the community has experienced in the past half-century.

Securing capital is essential for most businesses. It’s a monumental impediment for Black-owned businesses to scale to any significant degree. And it has to come from somewhere. “The investment needs to come from our community first,” Loyd says. “There is quite a bit of capital in our community that currently that is invested in lots of places, but it is not focused in our community anymore.”

He has invested a lot of his own money in Urban Juncture, but prior to that, it was sitting in a 401(k), Loyd says. “That money was completely disconnected from the community, so we have to figure out how to facilitate our money coming back into our community. We have to lead with our own funds.”

Bronzeville, once a mecca for Black economic activity, saw massive disinvestment when its professional class began leaving, lured by

10X

the often unrealized promises of integration. In recent years, a renewed focus on building businesses and wealth within Black communities has come into being.

“That is emerging,” Loyd says.

“We’re not there yet, but I think folks are recognizing that we cannot have healthy neighborhoods without a vibrant local commerce.”

Now entities like Chicago’s Civic Committee and of the Commercial Club of Chicago, representing many of the area’s largest businesses, are beginning to consider what can be done to support minority-owned businesses. Kelly Welsh, president of the powerful committee, say it’s in the beginning stages of “identifying the sectors that are high growth and offer broader opportunities than low-growth sectors for Black and Brown entrepreneurs.

“This is going to be a long-term commitment over years,” says Welsh, noting that the committee has support on this effort from McKinsey and Boston Consulting Group to develop pilot programs that will create more jobs and wealth in Black and Latino communities.

Some larger companies stand out for their commitments to sup-

port minority entrepreneurs, says Antonio Benecchi, principal with the Civic Consulting Alliance. They are the ones that have elevated their support “from being a program to being a central priority” of how they operate.

All companies by now have supplier diversity programs that have been in place for decades, Benecchi says. “Those are programs. They don’t necessarily rise up to one of the top priorities of the top management.”

Some companies are going “beyond the traditional approach to giving contracts in low-added-value sectors. They’ve made it a priority of accountability or a factor in the rewards for managers.”

On the ground in Bronzeville, Loyd wants to see the enterprises he’s championing succeed, even of that means they only employ a few people. “That is real world wealth being built by those businesses.

“Yes, it’s great to be able to go from that to a business that employs 1,000 people or 10,000 people, but if we can get our community to the point where we are re-establishing small businesses, we will have taken a huge step.”

WHITE HOUSEHOLDS HAVE AN AVERAGE OF

to rs alth need uild t is

e’

MORE WEALTH

The ally g It’s to for

THAN BLACK HOUSEHOLDS

Corigly ood

THAN LATINX HOUSEHOLDS, NATIONALLY

AND 8X MORE

nted the h uess

cago supwned w, to e g

P013-P017_CCB_20211115.indd 17

$100

$10

$12

WHITE

BLACK

LATINX

OUR COMMITMENT IS TO CLOSE THIS GAP. WHEN WE DO, EVERYONE BENEFITS.

Join us us by contacting Daniel Tollefson at DTollefson@cct.org.

11/12/21 2:40 PM

18 NOVEMBER 15, 2021 • CRAIN’S CHICAGO BUSINESS

CRAIN’S LIST CHICAGO’S BIGGEST MINORITY-OWNED BUSINESSES Ranked by 2020 revenue. Crain’s estimates are in gray.

2020 rank

2020 revenue (millions) % change from 2019

Full-time local employees as of 12/31/2020; worldwide

Total % minority owned Minority group(s) of ownership

Majority owner(s)

Type of business

1

1

MAT HOLDINGS INC. 6700 Wildlife Way, Long Grove 60047 847-821-9630; MATHoldingsInc.com

$1,750.0 -7.9%

334 14,000

100% Asian

Steve W. Wang Chairman, CEO

Manufacturer and distributor of automotive and consumer products

2

2

RAJA FOODS LLC (PATEL BROTHERS) 8110 N. St. Louis Ave., Skokie 60076 847-675-4455; RajaFoods.com

$463.0e 0.7%

170e 753e

NA Asian

Patel family

Retailer and importer of Indian foods

3

6

SUTTON AUTO TEAM 21315 Central Ave., Matteson 60443 708-720-8000; SuttonAutoTeam.com

$295.51 25.1%

97 270

100% Black/African American

Nathaniel K. Sutton President

Auto dealerships

4

4

BALDWIN RICHARDSON FOODS CO. 1 Tower Lane, Oakbrook Terrace 60181 630-607-1780; BRFoods.com

$270.0 -0.7%

21 385

100% Black/African American

Eric G. Johnson CEO

Manufacturer of sauces and condiments

5

3

VISTEX INC. 2300 Barrington Road, Hoffman Estates 60169 847-490-0420; Vistex.com

$248.4 -10.7%

312 1,579

75% Asian

Sanjay Shah CEO

Enterprise software and services provider

6

7

ADVANTAGE CHEVROLET OF HODGKINS 9510 W. Joliet Road, Hodgkins 60525 708-352-2400; HodgkinsChevrolet.com

$190.5e -3.6%e

90 500

100% Black/African American

Desmond A. Roberts President

Auto dealerships

7

5

TYSON MOTOR LLC 1 S.W. Frontage Road, Shorewood 60404 815-741-5530; TysonMotor.com

$170.9 -25.7%

75 75

100% Hispanic/Latino

Anthony H. Blake President

Auto dealerships and real estate

8

10

LOOP CAPITAL LLC 111 W. Jackson Blvd., Chicago 60604 312-913-4900; LoopCapital.com

$170.0 86.8%

90 191

100% Black/African American

James Reynolds Jr. Chairman, CEO

Investment banking, brokerage and advisory firm

9

New

$128.6(e) -4.0%

88(e) 157(e)

51% Asian

Hemanth Parasuram Chairman

Information technology products and services provider

10

9

POWERS & SONS CONSTRUCTION CO. INC. 2636 W. 15th Ave., Gary 46404 219-949-3100; PowersAndSons.com

$90.0 e -0.0%

40e 70e

100% Black/African American

Claude Powers, President, COO Mamon Powers Jr., Chairman, CEO

General contracting, construction management, design-build and owner’s rep firm

11

11

ESD 233 S. Wacker Drive, Chicago 60606 312-372-1200; ESDGlobal.com

$86.91 5.9%

286 303

71% Asian

Raj P. Gupta Executive chairman

Consulting engineering firm

12

New

SDI PRESENCE 200 E. Randolph St., Chicago 60601 312-580-7500; SDIPresence.com

$79.6 60.2%

193 240

52% Asian

David Gupta CEO

IT services firm

13

New

ELEMENTS GLOBAL SERVICES 1 N. Franklin St., Chicago 60606 312-423-3642; ElementsGS.com

$76.0 NA

26 160

100% Black/African American

Rick Hammell CEO

Tech firm and employer of record for businesses’ international expansion

14

12

ARIEL INVESTMENTS LLC 200 E. Randolph St., Chicago 60601 312-726-0140; ArielInvestments.com

$72.5 -6.3%

77 103

82% Black/African American; Asian; Hispanic/Latino2

Employee owners

Investment management firm

15

16

THE WILL GROUP 4647 W. Polk St., Chicago 60644 630-462-0230; TheWillGroup.com

$70.0 40.0%

115 130

100% Black/African American

Stephen L. Davis Chairman

Electrical, lighting, construction, technology and energy related business

16

14

LEVEL CONSTRUCTION INC. 4701 N. Ronald St., Harwood Heights 60706 773-930-4695; LevelConstruction.net

$57.0 -16.2%

35 67

100% Asian

T.J. Patel, President Mitesh Patel, Managing partner

Commercial construction firm specializing in retail, medical, restaurant and industry

17

19

ARDMORE RODERICK 1500 W. Carroll Ave., Chicago 60607 312-795-1400; ArdmoreRoderick.com

$46.2 28.4%

188 217

100% Black/African American

Rashod R. Johnson President, CEO

Engineering, program management and construction management

18

New

CABRERA CAPITAL MARKETS LLC 10 S. LaSalle St., Chicago 60603 312-236-8888; CabreraCapital.com

$46.01 NA

40 50

100% Hispanic/Latino; Asian3

Martin Cabrera CEO

Investment bank and full-service institutional broker dealer

18

17

BOWA CONSTRUCTION 7050 S. Stony Island Ave., Chicago 60649 312-238-9899; BowaConstruction.com

$46.0 9.5%

50 70

100% Black/African American

Nosa Ehimwenman President, CEO

General contractor and construction management firm

20

20

MILHOUSE ENGINEERING & CONSTRUCTION INC. 333 S. Wabash Ave., Chicago 60604 312-987-0061; MilhouseInc.com

$42.0 22.5%

256 267

85% Black/African American

Wilbur C. Milhouse III Chairman, CEO

Interdisciplinary engineering/construction firm

21

18

AGEATIA GLOBAL SOLUTIONS 949 N. Plum Grove Road, Schaumburg 60173 847-517-8415; Ageatia.com

$41.0 10.8%

180 452

100% Asian

Chuck Srinivasan President

Information technology staffing and employment services firm

22

New

WELLS PLUMBING & HEATING SUPPLIES 916 W. 21st St., Chicago 60608 312-850-1500; WellsPlumbing.com

$33.0 -5.7%

42 78

100% Asian

Steven Wang President

Building materials

23

21

CLARITY PARTNERS LLC 20 N. Clark St., Chicago 60602 312-920-0550; ClarityPartners.com

$32.0 6.5%

120 145

51% Asian

David C. Namkung Managing partner

Management and technology consulting firm

24

23

AGB INNOVATIVE SECURITY SOLUTIONS 7545 S. Western Ave., Chicago 60620 773-445-4300; AGBInvestigative.com

$31.6 11.1%

980 1,000

100% Black/African American

John H. Griffin Jr. CEO

Security firm protecting people, property and data

25

27

J.C. RESTORATION INC. 3200 Squibb Ave., Rolling Meadows 60008 800-956-8844; JCR24.com

$28.3 18.2%

124 124

100% Hispanic/Latino

Warner Cruz President, CEO

Restoration contractor

Company

SAYERS TECHNOLOGY 825 Corporate Woods Parkway, Vernon Hills 60061 800-323-5357; Sayers.com

WANT 52 ORGANIZATIONS IN EXCEL FORMAT? BECOME A DATA MEMBER: CHICAGOBUSINESS.COM/DATA-LISTS

Companies on this list must be at least 51% minority owned and be headquartered in the seven-county area of Cook, Kane, Lake, DuPage, Will and McHenry counties in Illinois and Lake County in Indiana. Crain’s estimates are in gray. NA: Not available. (e) Crain’s estimate. 1. Company estimate. 2. 5% Asian; 0.1% Hispanic/Latino. 3. 76% Latino; 24% Asian.

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

P018_CCB_20211115.indd 18

11/12/21 10:02 AM

PEOPLE ON THE MOVE

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

ACCOUNTING

BANKING

CONSTRUCTION

DESIGN / BUILD

INTERIOR DESIGN

CLA (CliftonLarsonAllen LLP), Oak Brook

First Bank Chicago, Northbrook

Executive Construction, Chicago

Clayco, Chicago

First Bank Chicago, a Division of First Bank of Highland Park, is very pleased to welcome Bill McGowan to our team as Executive Vice President, Managing Director of Middle Market Banking. He will be managing a team of seasoned bankers in our middle market division while supporting the Bank’s expansion strategy to continue growth of our Commercial Banking line of business.

Bill and his team will be responsible for building and developing relationships throughout the Chicagoland market.

His extensive background includes over 30 years of banking experience, and he has held senior leadership roles with MB Financial Bank and most recently TCF Bank.

Executive Construction is proud to announce the promotion of Matt Baumgartner to Vice President. Throughout his 17-year career, Matt has amassed a portfolio of interiors and mission critical projects, most notably trading and financial clients, and private family offices.

His approach and attention to detail supports project teams’ planning and impeccable execution of such highprofile and complex spaces. Matt’s firm leadership role includes talentfocused strategic initiatives.

Clayco is pleased to welcome Mary Person as senior vice president of public-private initiatives.

Mary will establish publicprivate market expansion opportunities across the Clayco enterprise, as well as lead programmatic efforts to promote and increase diversity, equity and inclusion (DEI) on Clayco projects. Person previously oversaw DEI strategy and client relations with a focus on the mass-transit market for FH Paschen.

Prior to that, she served as director of diversity programs for the CTA.

Huntsman Architectural Group, Chicago

CLA is pleased to announce the advancement of Rachael O’Leary to principal. With more than 15 years of experience, Rachael’s focus is primarily on tax in the private sector, specifically retail, restaurants, and franchises. Her knowledge of the intricacies of federal, state, and local tax enables her to provide sound tax advice, weighing the pros and cons of possibilities and helping clients understand the tax impact of their decisions.

LAW Nixon Peabody, LLP, Chicago

CONSTRUCTION Executive Construction, Chicago ARCHITECTURE / DESIGN Skidmore, Owings & Merrill, Chicago Skidmore, Owings & Merrill (SOM) congratulates Ryan Culligan, AIA, LEED AP on his elevation to Design Principal. An architect and leader in SOM’s Chicago studio, Culligan specializes in the design of large-scale mixed-use buildings, residential, commercial, airports, and high performance projects in Chicago and around the world. Culligan champions a contextual approach to design, rooted in close collaboration with his clients to realize transformative work informed by place, history, culture and climate.

ARCHITECTURE / DESIGN

CANNABIS SECTOR Verano, Chicago Verano Holdings Corp (CSE: VRNO) (OTCQX: VRNOF), a leading multi-state cannabis company, has appointed Destiny Thompson as Chief People Officer.

A graduate of Purdue University, Thompson is a proven Human Resources executive with nearly 20 years of experience leading teams through rapid expansion and growth.

She previously served as Chief Human Resources Officer at Stout, and also held senior positions at Huron Consulting, Navigant Consulting and Tellabs. “We’re thrilled to welcome Destiny to Verano and our leadership team,” said George Archos, Verano Founder and CEO. “Destiny’s expertise will help us build upon present growth potential and deliver long-term value for our employees, customers and shareholders.”

Whitney Architects, Chicago Lindsey Burghgraef comes to Whitney Architects with nearly 20 years of experience creating spaces dedicated to health and wellness. A graduate of Iowa State University with a BFA in interior design, Lindsey has a patient and thoughtful approach to problem solving and a passion for the details. Highly skilled at the implementation of design through documentation and construction administration, Lindsey has joined Whitney’s micro-studio focused on the life sciences, pharmaceuticals, and healthcare industries.

ARCHITECTURE / DESIGN Whitney Architects, Chicago NCIDQ certified and Registered Interior Designer with 30+ years of experience, Dan McCloskey has led workplace design efforts for some of the world’s most recognized companies. He joins Whitney Architects as Design Director.

Dan is a consummate advocate for clients by improving design quality within the firm he works. He has a true passion for mentoring designers within their projects and careers. Dan believes that by inspiring internal teams, you naturally create engaging solutions for clients.

P019_CCB_20211115_v1.indd 1

CONSTRUCTION Development Solutions Inc., Chicago Hal Nagel has joined Illinois based Construction Management Firm, Development Solutions Inc.(DSI), as their Director of People and Culture. With over 35 years of industry experience, Hal will act as a liaison between all employees and management, aligning professional development, recruiting and retention initiatives and all HR functions. This specialized roll will be instrumental, enriching DSI’s corporate culture, creating closer ties and unlocking the potential of the organization.

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

Jamie Cavalier has joined Huntsman Architectural Group as Project Manager and Designer in the Chicago office.

A registered interior designer with the state of Illinois and Fitwel Ambassador, Jamie has 13 years of experience in all facets of interior design, focusing on the workplace, boutique healthcare, municipal, and building repositioning sectors. She is currently serving as President of the Illinois Chapter Board of Directors of the International Interior Design Association (IIDA).

Executive Construction is proud to announce the promotion of Kevin Koronkowski to Vice President.

Kevin collaborates with many of the firm’s long-standing clients, such as CNA and Cisco, for whom he recently led corporate relocation projects. A firm ambassador, he is always on the lookout for new connections with partners and clients. He is an integral part of staff management and firmwide strategic initiatives, including leadership to expand Executive Construction’s work across the country.

FINANCE Monroe Capital, Chicago Monroe Capital, a $11.2 billion Chicago-based asset manager appoints Zia Uddin as President.

Mr. Uddin joined Monroe Capital in 2007. Currently he is a Partner and Co-Portfolio Manager of the firm’s Institutional Portfolios. Mr. Uddin also is responsible for the firm’s Technology investments. He will continue to report to Mr. Ted Koenig, who will remain the firm’s Chairman and CEO. As President, Mr. Uddin will be focused on overseeing and implementing Monroe’s long-term growth strategies.

Nixon Peabody is excited to announce Katherine F. Letcher has joined our Complex Commercial Disputes practice group as an associate. Kate represents clients in a broad range of litigation matters involving breach of contract, business torts, professional liability, and insurance coverage. She is a graduate of DePaul University College of Law, and previously earned a Bachelor of Communications in PR and Advertising as well as a Bachelor of Arts in German, cum laude, also from DePaul University.

MARKETING / MEDIA CONSTRUCTION Executive Construction, Chicago Executive Construction is proud to announce the promotion of Dave Sipes to Vice President.

A 16-year industry veteran, he leads efforts in both the new construction and mission critical markets. In recent years, he’s been a leader on the firm’s most notable mission critical engagements, building data center space in Chicagoland and around the country. Dave’s corporate leadership includes involvement in strategic planning, with a focus on market diversity and overall firm stability.

Neoscape, Chicago FINANCIAL SERVICES Hilco Global, Northbrook Hilco Global is pleased to announce that Sarah Baker has been promoted to Deputy General Counsel at Hilco Global effective immediately. Ms. Baker has been with Hilco since 2018, having most recently served as Vice President and Assistant General Counsel. In her new capacity, Ms. Baker’s duties will include companywide legal support for compliance, insurance, and human resources, in addition to her current duties supporting Hilco Merchant Resources, Hilco Real Estate, and Hilco Commercial.

DESIGN Perkins Eastman, Chicago Global architecture and design firm, Perkins Eastman, promotes Nathaniel Koschmann AIA, LEED AP BD+C to Associate Principal and Madona Cumar, Assoc.

Koschmann AIA, LEED AP BD+C to Senior Associate in their Chicago office.

Koschmann, with 18 years of dedicated expertise, spearheads work in campus facilities to encourage greater access for all student demographics as a Cumar Higher Education Science and Technology Leader for the firm.

Cumar, a leader in the Chicago Workplace practice with 11 years of design and project management expertise, oversees transformative projects for our corporate, institutional, and non-profit clients.

Chad Spaulding has been promoted to Managing Director of Neoscape Chicago. Since his hire in 2019, Chad has been instrumental in leading new business efforts Spaulding and cultivating client partnerships across the Midwest, as well as nationally. With this promotion, Chad also assumes the title of Associate Principal.

Jesse Walsh joins Neoscape as a Senior Digital Artist bringing 10+ Walsh years of experience, the past 6 spent at RM Design. He has a background in 3D modeling/rendering and commercial and residential interior design. Jesse’s hire represents a strategic move in building the Chicago studio’s visualization team from the ground up to better service our Midwestern clients.

HEALTH CARE American Board of Medical Specialties, Chicago As Chief Operating Officer, Ms. Jennifer Michael oversees daily operations of the Human Resources, Information Technology, Marketing Communications and Operations departments, and the Solutions and Business Development and Strategy teams. She also manages the business aspect of CertLink® and serves as a member of the Executive Leadership Team. Ms. Michael has an integral role in the development of the organization’s strategic planning process and identification of key initiatives.

NON-PROFIT Marillac St. Vincent Family Services, Chicago Marillac St. Vincent Family Services a comprehensive, multi-generational human service organization is pleased to welcome Angela Mason as its Chief Human Resources Officer.

In this role, she will develop and execute HR strategies in support of the overall business plan and strategic direction of the organization, in the areas of: Organizational Effectiveness, People Strategies, Workforce cultural efficacy and more. She has a Bachelor’s degree in Communications and Master’s degree in Management.

11/9/21 4:33 PM

LUXURY WATCH GIFT GUIDE Burdeen’s Jewelry is a leader in the luxury market and has grown into one of the most notable jewelers in the country. Since it’s humble beginnings in a single location over 40 years ago, Burdeen’s has expanded to 4 locations both downtown and in the suburbs.

Burdeen’s has re-developed the multi-watch brand boutique concept and established exponential growth in the pre-owned watch market. The newest partnership to join the Burdeen’s family is alongside the oldest watch Maison in the world Vacheron Constantin, making Burdeen’s an authorized dealer of 10 luxury watch brands.

Burdeen’s has enhanced Chicago’s luxury scene with three branded watch boutiques located at the Waldorf Astoria; IWC, Panerai, and A. Lange & Söhne. Their newest addition is the Midwest’s only Vacheron Constantin boutique, and next door resides a Burdeen's Jewelry and pre-owned watch boutique.

This location is one of the only family-owned businesses on the Magnificent Mile, and is the go-to source for haute jewels and horology in Chicago.

Matthew Burdeen makes it a point to ensure that every sale is a personable and memorable experience by never compromising their high level of customer service. The founding family values Burdeen’s was built on decades ago. Walking into any of their locations you will feel their core principles in establishing long-term meaningful relationships. For this holiday season Burdeen’s has beautifully put together a curated collection of exquisite timepieces, haute jewelry, and estate jewelry.

Gift Guide Watch Recommendations: 1. IWC Big Pilot Perpetual Calendar in Stainless Steel 2. Jaeger LeCoultre Rendez-Vous Night & Day in 18K Rose Gold 3. Rolex Daytona “Leopard” in 18k Rose Gold 4. A. Lange & Söhne Double Split Chronograph in 18K Rose Gold 5. Audemars Piguet Royal Oak Perpetual Calendar in 18K Rose Gold

1151 WEST LAKE COOK RD. BUFFALO GROVE, IL 60089 847-459-8980

tab doc.indd 1

21cb0492.pdf

909 NORTH MICHIGAN AVE. CHICAGO, IL 60611 312-448-8344

RunDate 11/15/21

FULL PAGE

11 EAST WALTON ST. CHICAGO, IL 60611 312-366-3480

Color: 4/C

11/3/21 4:13 PM

CRAIN’S CHICAGO BUSINESS • NOVEMBER 15, 2021 21

CRAIN’S CHICAGO BUSINESS

LUXURY

GIFT GUIDE CURATED BY INFLUENCER DIANE PRIMO

What to give this holiday season? For reasons we know too well, it’s sure to be another unusual shopping season. But we have gifting advice to make it more meaningful from marketing and public relations maven Diane Primo, CEO of Purpose Brand, based in Chicago. Primo believes every gift you give should have the glow of purpose and make a difference—regardless of cost.

Here’s Primo’s guidance on gifts that are fabulous and fun, but also thoughtful, sustainable and purpose driven. All are goodies that keep on giving, range from economical to outrageous, and are worthwhile, sustainable and sure to stand the test of time. And when it comes to giving, Primo reminds us: “Don’t forget your favorite charity at this time of the year; it’s critical!”

JEWELRY LOW — TRIWA SUB OCEAN PLASTIC IN NEMO ($159) Plastic With Purpose The name of Stockholmbased brand Triwa is an acronym for transforming the industry of watches. We like that and its ethos—to use innovative and recycled materials to create modern statement symbols, not status symbols. The Sub Ocean Plastic in Nemo, a bright orange, is a tribute to early underwater explorers—complete with ocean references like its pattered dial face that references waves—but it’s made of completely recycled ocean plastic. Also in ocean blue and octopus.

MEDIUM — ALPINA SEASTRONG DIVER GYRE AUTOMATIC ($1,583)

HIGH — HUBLOT BIG BANG INTEGRAL TOURBILLON FULL SAPPHIRE ($438,000)

Timely Long-Term Returns Transparency in Timekeeping Swiss watchmaker Alpina This first-ever, all-sapphire Big invented the concept of Bang Tourbillon Full Sapphire the sports watch in 1938 watch by Hublot takes transand remains one of the parency, craftsmanship, sustainonly Swiss watch companies ability, splendor and luxury to that develops, produces and new levels. Sapphire is notoriously assembles its movements difficult to machine; the concept entirely in-house. That accounts required a ton of technological for the acclaimed performance innovations to get that floating-inCURATEDairBY INFLUENCER of its Seastrong Diver Gyre, appearance.

Hublot, a member of with a 70% recycled case and an automatic DIANE movethe Responsible Jewellery Council, embraces responsiPRIMO ment that yields a 38-hour power reserve and is ble ethics, human rights and environmental practices water resistant to 1,000 feet. Add in a scratchin its materials and manufacturing practice. While this resistant sapphire crystal and its big, bold face that beauty is way out of most of our budgets, it’s a bona comes in at 44 millimeters, and it’s a handsome, fide work of art, an impeccable timekeeper and lifer sustainable option for life, in or out of the water. for someone with a big budget.

CRAIN’S CHICAGO BUSINESS

LUXURY GIFT GUIDE

FITNESS LOW — NIKE AIR ZOOM ALPHAFLY NEXT% FLYKNIT ($275) Trifecta Trainers As a runner, I love the fact that the Nike Air Zoom Alphafly Next% Flyknit trainers were made for speed, comfort and sustainability. They’re lightweight, stylish, breathable and made of 50% recycled content. But best of all, they’re engineered to make you move fast—and do! After elite runners achieved world-breaking times wearing these sneaks, they were banned from the Tokyo Olympics. That leaves more for us normal types, but I’m finding it’s really tough to score a pair.

MEDIUM — WHOOP 4.0 (FROM $30 A MONTH) Data to Live By Fitness fanatics swear by Whoop 4.0, a fun strap and app system that tracks activities 24/7—from walking, talking, sitting or working out to sleeping and feeling stressed. But everyone can benefit from the remarkably accurate data it serves up to help us optimize activities, sleep better, improve lifestyle choices and more. Whoop’s claims of best-in-class data are backed by studies and third-party testing. Why not make this a corporate benefit for your entire team?

P021-P025_CCB_20211115.indd 21

HIGH — TONAL Mighty Mini-Gym (from $2,995 plus $63 monthly subscription) Excuses will be moot with Tonal, a super-minimal, lightweight, wall-mounted strength trainer for anytime, athome workouts. It claims to be the world’s smartest home gym, and with its extensive live and video classes (from weights to yoga), excellent instructors and effective, easy-to-use equipment, it may be! A good proof point is the PC Magazine Editors’ Choice award it just won. Despite the heavy price tag, I’m dying to try it.

11/12/21 3:35 PM

22 NOVEMBER 15, 2021 • CRAIN’S CHICAGO BUSINESS

CRAIN’S CHICAGO BUSINESS

LUXURY GIFT GUIDE

CURATED BY INFLUENCER DIANE PRIMO

FASHION LOW — MANU ATELIER XX MINI CYLINDER SHEARLING BANANA ($445) Sustainable Chic American’s wasteful fashion habits are making provocative headlines these days, and the moral of the story is it’s time change our buying behavior. “Buy less but better” sums up a better ethos, which is also the idea behind Manu Atelier, founded to design and produce timeless, long-lived, high-quality sustainable bags. We’re all in on its XX Mini Cylinder Shearling Banana, an eternally chic little baguette that’s still big enough for essentials (8.6 inches long by 3.6 inches high) and can be worn as a shoulder bag, crossbody or clutch.

HIGH — LOUIS VUITTON KEEPALL BANDOULIÈRE 50 ($5,850) Worth the Splurge Black designer Virgil Abloh, founder of wildly popular Milan-based brand Off-White and artistic director of Louis Vuitton Men’s, hails from Rockford and studied and worked in Chicago before heading abroad.

He prioritizes function, comfort and sustainably in his multidisciplinary designs, which makes his Keepall Bandoulière 50 for Louis Vuitton so fabulous and forever it’s worth the splurge. After all, his re-engineered version of LV’s proprietary Monogram fabric in organic cotton and recycled wool is sure to last decades.

MEDIUM — KENDALL MILES DESIGNS ALI COMBAT BOOT ($695) Combat Fashion Perceptions It’s critical to support Black-owned brands, and I’m tired of hearing there are no fabulous options in luxury fashion. Chicago’s own Kendall Reynolds founded footwear brand Kendall Miles Designs in 2015, and I’ve been a fan ever since. She partners with family-owned vendors; uses the finest ethically sourced, sustainable materials; and turns out durable, versatile, functional footwear.

Nothing epitomizes those qualities better than her comfy, street savvy Ali Combat Boot, destined to be an eternal wardrobe addition.

SPONSORED CONTENT

CUSTOM ZIP-UP SPORT COATS ONLY AT NICHOLAS JOSEPH The removable zip-up insert replaces a scarf or removes for a blazer look.

At Nicholas Joseph, we make Chicago’s favorite custom clothing. We’re one of the only clothiers in Chicago offering true bespoke clothing fully Handmade in Chicago from start to finish – just like they’ve been doing in London’s Savile Row for centuries. We’ve been featured in Esquire magazine and clients fly to Chicago for the service.

By appointment, CustomSuitsYou.com

COOKING LOW — BEAST BLENDER ($155) The Can’t-Beat Beast The Beast Blender liquefies everything you’d usually throw away—like healthy seeds, rinds and stalks— which calls to mind that mantra moms used to push: waste not, want not.

It’s also stylish, slim for small spaces, leakproof and energy-efficient to avoid overheating.

It boasts “best-in-class blending” to create “the smoothest blends to make you strong inside,” and reviewers agree, noting the super-functional, sleek Beast is a beauty that lives up to the hype. I have one on order to test it out myself.

P021-P025_CCB_20211115.indd 22

MEDIUM — ZOJIRUSHI INDUCTION HEATING SYSTEM RICE COOKER & WARMER ($329) Rice Under Pressure Gourmet types agree: Rice cookers win out over home chefs when it comes to preparing perfect rice.

And they can be used for cereals, soups, steamed vegetables and one-pot meals, too. With induction heat and pressure cooking, the madein-Japan Zojirushi Induction Heating System Rice Cooker & Warmer beats its already ranked best-in-class prior models for perfection. Set it to make soft, regular or hard rice, to keep rice warm for days and more; you can’t beat its precision, ease and speed—especially if you have a houseful of kids.

HIGH — KALAMAZOO SHOKUNIN KAMADO GRILL ($6,495) More Than a Looker The average American replaces their grill every three years—but that’s a pre-pandemic stat. We’ve used ours virtually every night since COVID hit, so we see the beauty in a sustainable grill built to stand the test of time and use. Kalamazoo’s Shokunin Kamado Grill fills the bill.

With kamado-style grilling it can roast, sear or smoke; is wildly efficient, maintaining 225 degrees on 12 pounds of charcoal for 65 hours; is so well insulated it always stays cool to the touch; and is quite a looker with its ipe and stainless-steel shell.

11/12/21 3:36 PM

CRAIN’S CHICAGO BUSINESS • NOVEMBER 15, 2021 23

GAMES LOW — NINTENDO SWITCH OLED MODEL ($350) Better Gaming For a first-rate, family-friendly gaming console that doesn’t hog your entire TV setup—and sustainable design—it’s hard to beat the Nintendo Switch, which the gaming company designed to be energy efficient and have a lower environmental impact. The update, the Nintendo Switch OLED Model released in October, is even better with an improved, inch-larger screen that’s drawing raves; a foldout, full-width stand; and louder, clearer speakers.

Like its predecessor, it will be hard to find in stock, so start stalking it now.

HOME LOW — GOODEE MATISSE THROW M-4 ($325) Woven With Love Goodee, a curated marketplace established by designers and brothers Byron and Dexter Peart (who also founded Want Les Essentiels), offers a fabulous trove of meaningful brands dedicated to developing sustainable and beautiful solutions for modern life. It’s almost impossible to call out just one thing, but the cozy, warm and colorful handwoven mohair and wool Matisse Throw M-4 by family-owned and -operated Spanish textile house Ezcaray is spectacular and a steal for the price.

MEDIUM — DYSON PURE HUMIDIFY + COOL ($799.99) Play Misty for Me Did you know humidified air cuts down on viral infections? Or that your home probably has less humidity than the Sahara Desert, which is why you get dry skin, creaky floors or cracked furniture? Dyson’s all-in-one Pure Humidify + Cool cleanses and humidifies air then distributes it at whatever angle suits you best. Its smart technology detects and analyzes airborne particles and gases, and temperature and humidity levels, in real time.

SPONSORED CONTENT

SCANDIA DOWN’S BESTSELLING DOWN BLANKET The perfect layering tool for cool nights as we move into the holiday season.

Available in eight colors, made of only the finest European down, the down blanket is the perfect gift for your loved one or yourself! Scandia Down in Chicago, located in the 900 shops on Michigan Avenue, has been bringing luxury European bedding and Italian linens to the Gold Coast for over 15 years. The boutique specializes in only the finest sheeting and down products from around the globe. www.scandiachicago.com

MEDIUM — MONOPOLY: SHINOLA DETROIT EDITION ($395) Made in America Monopoly Like the real estate game itself— invented in the U.S. in the early 20th century with a meaningful economic message, Shinola was founded to revive manufacturing in Detroit. With its solid mahogany construction and high-quality game pieces, this new, beautifully crafted Monopoly: Shinola Detroit Edition embraces the company’s motto and a message worth embracing: built to last. This version of the game is not only fun to play but also a future heirloom worth the splurge.

HIGH — MAN RAY CHESS SET ($460) Brain Game “The Queen’s Gambit” made chess more popular than ever, and indeed— who can resist a game that’s entertaining, offers a huge range of cognitive benefits and will never be obsolete? Make it stunning and sustainable, like this re-edition of Man Ray’s 1920 wooden chess set that’s in the Metropolitan Museum of Art’s collection, and you hit every mark. Made of FSC-certified beech, today’s Man Ray Chess Set is fun, functional, environmentally friendly and a work of art in its own right.

P021-P025_CCB_20211115.indd 23

HIGH — MADE TRADE MASAYA ROCKING CHAIR - MOMOTOMBO ($1,075) Rock On For a gift that truly keeps on giving—and adds comfort and cachet to a space—get this rocking chair. Greater happiness, sounder sleep, better moods and a whole range of hardcore health benefits are credited to the simple act of rocking. Factor in the sheer good looks and extraordinary sustainability of Made Trade’s Masaya Rocking Chair - Momotombo, built by artisans in Nicaragua of sustainably harvested hardwood with a handwoven seat, and it’s a gift to last a lifetime.

11/12/21 3:36 PM

24 NOVEMBER 15, 2021 • CRAIN’S CHICAGO BUSINESS

CRAIN’S CHICAGO BUSINESS

LUXURY GIFT GUIDE

CURATED BY INFLUENCER DIANE PRIMO

FOOD & BEVERAGE LOW — INGRAINED COOKIES - FAMOUS CHOCOLATE CHIP (THREE-PACK) ($12)

MEDIUM — PACKED WITH PURPOSE GRATITUDE GALORE ($55)

Me Want Cookie!

Cookies are my biggest vice. So I was thrilled to find these yummy, 100% vegan Famous Chocolate Chip cookies at snack spot Ingrained Chicago (a woman-owned small business). Made with buttery almond and coconut flour, they’re gluten- and refined sugar-free; made in small batches daily; and sold three to a pack. If chocolate chips aren’t your thing, try their sprinkle cookies or flavor of the day, which is always creative. Order at ChowNow or pick them up in person at the River North store (108 W. Chicago Ave., 312-248-2862).

Packed With Purpose What could be a better than a gift box filled with high-quality, hand-picked products that come from sustainable and purposeful purveyors? Chicago-based, woman-owned Packed With Purpose creates a wide range of exquisitely packaged options. As a sugar addict, my favorite is their Holiday Gratitude Galore, which is filled with all sorts of sweet treats (think caramels, chocolates, lemon butter cookies and more) that also support regenerative farming, individuals with developmental disabilities and animal welfare.

SPONSORED CONTENT

VIRTUAL TASTINGS & SMALL BATCH SPIRITS This year, show your appreciation for your team or clients with an uncommon gift from Spirit Hub. You can host a virtual spirit tasting, led by an independent distillery. Or, send everyone a bottle, some barware, glassware, even a sample pack! Whatever your bulk order and holiday gifting needs are, the craft concierge service at Spirit Hub will put together and ship a gift they won’t soon forget.

MJ KROEGER/FOOD52

Learn more at spirithub.com/crains.

HIGH — PORTER ROAD PREMIUM MEAT VARIETY BOX ($165) Meat Lovers Delight Meat is the main course of choice in my home, so I was delighted to find Porter Road’s Premium Meat Variety Box filled with pasture-raised, sustainably sourced options. Porter Road’s chef turned butcher owners James Peisker and Chris Carter vet every purveyor personally and hold them to the highest possible standards, which means the animals are raised outside, given vegetarian feed and treated with kindness and respect. I already believe their claim that after one taste, you’ll never go back to grocery store fare.

PERSONAL TECH LOW — LEXON OBLIO 10W WIRELESS CHARGING STATION WITH BUILT-IN UV SANITIZER ($59.99) Preventative Phone Charger Even though COVID is spread by air droplets, the fact remains that our phones are 10 times dirtier than a toilet seat and full of bacteria and viruses. Lexon’s Oblio wireless charging station with a built-in UV sanitizer does your dirty work for you and helps keep you healthy at the height of flu season by charging and sanitizing your smartphone at the same time. It eliminates 99.9% of screen and surface germs in 20 minutes. Plus, it’s a sleek design that creates a home base for those of us who tend to plug in all over the house then forget where we left our phone.

P021-P025_CCB_20211115.indd 24

MEDIUM — HATCH RESTORE ($129.99)

HIGH — AWAIR ELEMENT ($299)

Smartest Sleep Assistant Yet About 70 million adults in the U.S. have sleep issues, including me! That’s why I’m angling for the Restore from Hatch, a husband-and-wife team that dreams up tech products to improve lives.

They invented their first sleep assistant for their first baby, a bad sleeper, and their latest option is drawing raves. It’s a bedside lamp, sound machine and sunrise alarm that sheds light in 22 colors— which is everything experts say you need to fall asleep naturally, stay asleep and wake up feeling refreshed.

No More Bad Air Days Weather reports tell us when we’re having bad air days outside, but inside air quality is often equal to that of major polluted cities. Worse, everyday activities like cooking and cleaning are to blame! Since we spend about 90% of our time indoors, our health is at risk.

Bad indoor air quality can trigger a litany of ills, which led to my search for a home air-quality monitor. The Awair Element, which tracks temperature, humidity, CO2, VOCs and particulates in real time and even tells you how improve your indoor air quality, its tops on my list.

Caveat emptor: I’m not alone. It has a 12-week wait.

11/12/21 3:36 PM

CRAIN’S CHICAGO BUSINESS • NOVEMBER 15, 2021 25

OUTDOORS

SELF CARE

LOW — THOUSAND CHAPTER MIPS HELMET ($135)

LOW — BLUNT METRO ELLEN PORTEUS ($79)

Brain Defense With three active sons, I’m a broken record on the topic of bicycle helmets.

Use it or lose it—as in your bicycle. But no one makes cooler, easier-to-use options than Thousand, whose goal is to save 1,000 lives by making helmets people actually want to wear. Its CHPT3 X Barrivell fulfills that mission and is full of great features: a bright orange flashing magnetic taillight, premium visors, a hidden poplock, great ventilation, an integrated fit system for precise adjustments and a layer that uses multidirectional impact protection technology to protect against traumatic brain injury.

Rainy Day Wonder I’ve lost dozens of umbrellas to wind gusts and rain squalls, so it’s easy to see why over 1 billion umbrellas end up in landfills each year. But Blunt’s compact, convenient, super lightweight and collapsible Metro umbrella has a sturdy tensioned canopy (patented and trademarked, of course) that really performs. So far so good for mine, and I’m really picky about getting my hair wet. This baby seems like it meets its makers’ claim and really is “built to survive extremes.” Choose from 10 colors and three special edition options; this one from Melbourne artist Ellen Porteus is the kickiest.

MEDIUM — ARBOR CODA ROCKER SNOWBOARD 2021/2022 ($550)

Massage for the Masses As a daily runner, deep-tissue massages are helpful whenever I can swing them to reduce muscle soreness, relieve trigger points, increase tissue flexibility and shorten recovery time. But they’re usually $100 a pop. That makes the Therabody Theragun Pro, with its commercial-grade power, durability and design—and two-year warranty—a worthwhile investment. Amortized over two years (though they’re known to last many years longer than that), that’s 82 cents a day. It’s also incredibly quiet and so powerful you don’t need to bear down forcefully and hurt your hands.

MEDIUM — BEVEL TRIMMER + T-BLADE ($220) Good Grooming for All Inspired by the lack of good grooming products for people of color, Tristan Walker founded his namesake company in 2013 to make simple and effective options for Black men and women with Bevel for him and Form for her. His cordless Bevel Trimmer + T-Blade, built to the balance specs of master barbers, combines innovations in design, power and cutting performance—including a super-easy, tool-free blade adjustment dial and 180 days of standby time.

HIGH — THERABODY THERAGUN PRO ($599)

More Than a Board My son thinks snowboarding still trumps skiing. It’s easier; you need far less gear (no poles and one board!); nothing comes off when you take a fall; and it reminds me of skateboarding (and I’m urban at heart). But to shred my best, I need a forgiving, easyto-control, catch-free option. That’s exactly what the Arbor Coda Rocker Snowboard offers. Plus, it’s made of hand-dyed ash that’s sustainably harvested, mostly from borer-kill trees.

HIGH — RADRUNNER 1 ELECTRIC UTILITY BIKE ($1,299) Radical Alternative Remember when rad was slang for cool? That’s why I thought RadRunner 1 was a spot-on name for this compact, utilitarian and comfortable electric utility bike with fat, super-sturdy tires; an adjustable suspension system; tons of safety features; every customizable option imaginable (to add when needed); and a 300-pound capacity. But it’s really named for its inventor, Mike Radenbaugh, whose mission is to lessen environmental impact with this wonderful, energy-efficient, enjoyable, accessible and radical alternative to the auto.

P021-P025_CCB_20211115.indd 25

SPONSORED CONTENT

LOOKING FOR A LUXURIOUS CORPORATE GIFT? Since 2016, Laudi Vidni has provided impeccable gifts and custom experiences to companies around the globe.

Laudi Vidni (“individual” spelled backwards) is a woman-owned accessories label offering customizable leather goods meticulously made-to-order in Chicago. Each of their bag styles can be personalized with leather, lining, and other details, to enable people of all stripes to create their perfect accessory.

Shop laudividni.com or in their Lincoln Park retail store.

11/12/21 3:36 PM

THE FUTURE OF WORK

STRATEGIES FOR 2022 AND BEYOND

As the COVID-19 pandemic continues, by all accounts it’s changed the way Americans work—likely forever. Four executives on the frontlines of the workplace revolution offered their insights on some of the tough questions facing business leaders today, including how to increase opportunities for everyone.

How do you view the future of work for your industry?

Jeannette Lenear Peruchini: As a global design and engineering firm, AECOM’s diverse workforce of architects, designers, engineers and construction managers have a variety of workplace needs specific to their roles and individual project needs. This results in varying degrees of change to how we work. For our office workers we’re seeing a shift to a primarily hybrid model with some roles going completely remote, while

our construction folks continue to be in the field building some of the world’s most iconic projects. One thing that’s consistent for all is the increase in virtual collaboration and digital delivery enabling us to work effectively from the office, project site and remotely. Knowing that one size does not fit all, the hybrid or flexible work model is certainly here to stay.

Max Rettig: Throughout the pandemic and even before, there was tremendous demand for small increments of work—the ability to

“WHILE IT’S EASY TO GET DISTRACTED

BY THE SEARCH FOR YOUR NEXT TEAM MEMBER, THE MOST IMPORTANT THING AN ORGANIZATION CAN DO DURING THIS TIME IS TO FOCUS ON EXISTING EMPLOYEES . . . “ —JEANNETTE LENEAR PERUCHINI, AECOM

earn when, where and for however long, earning supplemental income around other obligations. As we look to the future, it’s not just about continuing to offer these opportunities, but also making it even more accessible to more people. One of the major lessons we’ve learned from the COVID-19 pandemic is that people value the ability to work when they want to, and for some, it’s truly a necessity.

For example, some people need extra income, but have to be available to watch their children during traditional business hours. The future of work will be about finding ways to protect independent, flexible work while also providing access to benefits and protections people deserve.

Emily Reynolds: Bravanti is in the talent business, which is always changing along with other industries.

Our outplacement business was highly active during the economic

Transforming the future of work We’re designing next generation

workplaces – prioritizing sustainability and equity; enhancing team collaboration and innovation; and supporting flexibility and wellbeing for employees.

P026_029_CCB_20211115.indd 26

downturn resulting from the pandemic, and now we’re focused on helping companies address retention issues through career development, internal mobility, executive advisory and reskilling. The ongoing uncertainty and accelerating M&A activity have created unprecedented demand for executive coaching and leadership development, as leaders and their teams grapple with the best ways to move forward. We expect to see this continue in our global work with C-suite leaders, focused on strategic goal alignment, the creation of strong teams, assimilation of new leaders and courageous leadership. Also, historically marginalized groups were hit hard by the pandemic, so we expect to see continued focus on leadership development and pipeline building with these groups. Hiring, leading and retaining talent are critical today and our approaches to address these areas need to shift to be successful.

Turquoise Peart: The future of work for our industry is a hybrid where digital and human systems come together, including a focus on increasing lending in diverse communities and the technological needs necessary to support that.

As an example, the company recently created a language access program to better serve the Latinx community and we’re working to offer more resources in different languages. The future requires that at every touchpoint with our customers that our interactions are measurable, visible and transparent.

We’ll accomplish this by leaning into artificial intelligence and other innovations that bring technology and human psychology together.

determining what to do with their office space can lead to significant costs. To ensure our own workplaces remain fit for purpose, AECOM embarked on a “Fast-Forward to the Future” journey. Focused on three areas—workplaces, technology, and people and culture—it resulted in new global workplace guidelines to help us reduce our real estate footprint, various IT initiatives enabling us to work more effectively from various locations and our new freedom to grow philosophy that helps our people have the flexibility they need to do their best work.

Reynolds: Coping with uncertainty and disruption are our main challenges. Our clients— organizations, leaders and people in career transition—now find themselves facing unprecedented complexities. We cannot rely on old approaches; we all need to tap into our own potential, adapt and find new strength to lead bravely in the coming year. Indeed, we have already seen many of our clients embrace change courageously. The challenge is being nimble enough to bob and weave with the constant shifts in work environments, the economy, talent and labor issues, and the lightning speed of technological advances.

What’s the number one challenge your industry is currently facing?

Peart: We continue to seek out loan officers, sales and operations staff from various people groups, gender and ethnic diversity to excel and continue reflecting the communities we serve. We’re hiring and creating outreach campaigns in various diverse communities through ethnic professional groups like the National Association of Hispanic Real Estate Professionals and the National Association of Minority Mortgage Bankers of America. This challenge is simply an opportunity for us.

Lenear Peruchini: Office space still matters, but its future and purpose are changing. The challenge is not only knowing what to do, but how to do it. The ongoing uncertainty about what comes next has prevented many from being able to make a decision about what do to with their physical office spaces.

For smaller companies this may not be a significant issue, but for larger Fortune 500 companies with large real estate portfolios the delay in

Rettig: DoorDash and others in our industry are pushing for a new way to look at and think about work, and that can require new policies and legislative frameworks. Our laws have been designed around an outdated labor model that doesn’t reflect what we hear from Dashers today—that they want to maintain their independence, but also gain access to benefits and protections that make sense for this type of work.

As a company, we’re trying to find

11/11/21 9:35 AM

SPONSORED CONTENT

JEANNETTE LENEAR PERUCHINI

Managing Principal AECOM jeannette.peruchini@aecom.com 773-550-0955

ways to work with stakeholders, legislators and other partners to not only allow people to continue to succeed in this economy, but to ensure they have the support they need to do so.

What effect has the pandemic had on how people work?

Peart: The pandemic has fostered a transition into more of a hybridwork model in which employees are either fully virtual, on-site a few days per week or fully on-site the standard work week. This new model has enhanced not just how we work, but the ways in which we add value to our organizations. If there’s room for more of a work-life blend for families, this is certainly the time to adopt this methodology.

Rettig: People who were once in an office from nine to five everyday found themselves working from home. Others suddenly lost their jobs and began relying on platforms like DoorDash to earn income when it worked for them, while finding time to care for children, take care of loved ones and attend to other

TURQUOISE PEART

DEI Manager Guaranteed Rate turquoise.peart@rate.com 312-741-8675

Reynolds: The pandemic was particularly devastating for women and people of color, who either left the workforce in droves or experienced extreme disparities in work-life balance and health care. Mental health and wellness surfaced as key priorities. As external issues suddenly became internal, pressure built on leaders and organizations to construct a new model for working—one that embraced the shifts their people were experiencing. The great news is that for enlightened companies that are figuring out how to give their workforce more flexibility— which was not a trend before the pandemic—their employees are happier, healthier and more productive.

Lenear Peruchini: Sparked by the stay-at-home requirements of the pandemic, a wave of technological and social experimentation has transformed workplaces for office workers, blasting away many of the hurdles to flexible working such as presenteeism, technology limitations or company policy. This has changed not only where

“THE FUTURE OF WORK POINTS TO OPERATING IN A MORE INCLUSIVE SPACE WITH DIVERSE AND UNDERREPRESENTED GROUPS.” —TURQUOISE PEART, GUARANTEED RATE

MAX RETTIG

Peart: Partnering with employees through pulse surveys, continuous listening and allowing them to share feedback more than just annually during performance assessments encourages a healthy employee experience. With the need for support and psychological safety being essential, using survey findings and actively integrating those findings and key learnings to guide decision-making, strategy and programming are just some of the ways to address retention. Above all, fostering a sense of belonging through creating a more sustainable work environment could be the game changer for organizations.

EMILY REYNOLDS

VP, Head of Public Policy DoorDash max@doordash.com 855-973-1040

Managing Director Bravanti ereynolds@bravanti.com 224-306-8232

With millions of workers reassessing their options during the pandemic, how can organizations address retention during The Great Resignation?

Excellence in career planning and succession planning are emerging as critical pieces of the retention puzzle.

Employees want to understand their value to an organization and the steps required to contribute to its success.

Reynolds: Improving retention is a top-down initiative that requires executive buy-in and support.

This includes a clear company vision that’s reflected in the culture; highly effective managers; a positive work environment that fosters productivity and belonging; and opportunities for learning, professional development and advancement within the company.

Rettig: As we look ahead, organizations, policymakers and other stakeholders should consider ways to make it easier for people to earn on their own schedules, and in ways that work best for them. It’s clear that there’s no one type of work that fits everyone’s needs, so we must ensure flexible work is available, while also ensuring everyone has access to benefits.

Lenear Peruchini: While it’s easy to get distracted by the search for your next team member, the most important thing an organization can do during this time is to focus on existing employees—listening to them and being prepared to provide more flexible work options to support their health and wellbeing. Letting employees know that you’re there to support them in their personal and professional growth goes a long way toward building trust and loyalty, and supports retention. If someone does choose to leave, make sure the experience is one of gratitude and appreciation; you never know when you might have a boomerang on your hands.

Welcoming and inclusive. These aren’t just words. They’re promises.

At Guaranteed Rate, we want everyone to thrive.

Because all cultures, backgrounds and identities should be heard, represented and set up for success. And we’re doing something about it.

In recent years, we’ve launched internal communities to support our diverse workforce:

Turquoise Peart Manager of Diversity, Equity and Inclusion G U A R A N T E E D R AT E

• LEAD for Black, Indigenous and People of Color • GROW for women • PROUD for LGBTQIA+ people We are driven by positivity and love, and want to make sure our employees have safe and supportive spaces to grow together.

The future of the mortgage industry is right here.

responsibilities. In fact, 90% of Dashers deliver fewer than 10 hours a week and 80% of women Dashers say that a main reason they deliver is because of the flexibility to set their own schedules. It’s clear that during the pandemic, people relied on flexible ways to earn—which is why we need to look for ways to support this change and chart a new path forward.

P026_029_CCB_20211115.indd 27

office workers work, but the hours in which they work and the ecosystems they inhabit as well.

These impacts have changed the way people commute, consume and live. It’s led to the creation of new jobs, the elimination of other jobs and it’s reminded us that as human beings we are adaptable and resilient.

Learn about our ERGs and our diversity efforts.

R AT E . C O M / C A R E E R S NMLS ID #2611 (Nationwide Mortgage Licensing System, www.nmlsconsumeraccess.org) • Guaranteed Rate, Inc. is an Equal Opportunity Employer that welcomes and encourages all applicants to apply regardless of age, race, sex, religion, color, national origin, disability, veteran status, sexual orientation, gender identity and/or expression, marital or parental status, ancestry, citizenship status, pregnancy or other reason prohibited by law. (20210706-371894)

11/11/21 9:35 AM

THE FUTURE OF WORK

STRATEGIES FOR 2022 AND BEYOND What role will diversity, equity and inclusion play in the future of work?

And finally, they must be willing to measure their progress on DEI and commit to continuous improvement.

Peart: In the past, DEI had been considered by some to be simply a compliance piece; many companies didn’t have DEI-focused goals at all. The future of work points to operating in a more inclusive space with diverse and underrepresented groups. Organizations like ours position DEI as its own line item separate from just an HR/compliance issue. It’s meshed into every area of the organization including recruiting, culture, performance, training and onboarding.

Rettig: Prioritizing DEI helps ensure everyone—regardless of background, education level or work experience—has access to economic opportunity. Organizations should look to deliver tailored solutions and programming to meet the unique needs of marginalized communities.

For example, DoorDash launched a program during the pandemic

Reynolds: Organizations need to go beyond “checking the box” with diversity training. Leaders and their teams must be willing to do the hard work of assessing their culture and having difficult conversations to identify where and how to change, and then execute around that assessment. Leadership roles must include more historically marginalized people. Day-to-day meetings should be more inclusive and represent a diversity of thought to foster belonging. Companies need to encourage sponsorship and coaching across differences.

included. When companies make room for employees to be heard, and when individual experiences and perspectives are shared, they create a stronger culture and better outcomes for their clients. At AECOM, our commitment to DEI enables us to better anticipate our clients’ needs, understand the challenges facing the communities we serve, and it drives innovation that propels our industry forward. These are all great things and instrumental in our mission to deliver a better world.

“LEADERS CAN BEGIN BY MODELING HEALTHY BEHAVIORS THEMSELVES AND NOT HESITATING TO BE VULNERABLE WITH THEIR PEOPLE.” —EMILY REYNOLDS, BRAVANTI to provide grant funding and educational programming to minority-owned small restaurants, because we know access to resources is critical to reaching equality.

Lenear Peruchini: When we feel free to be ourselves, we thrive.

DEI plays a big role in ensuring that employees feel valued and

How are technology and automation reshaping the future of work?

Rettig: Because of the emergence of technology platforms like DoorDash, people are able to log on and start making money almost immediately.

They can also log off whenever

The future of work is now.

Flexible work opportunities with low barriers to entry are more crucial than ever. At DoorDash, we support the creation of a portable, proportional, and flexible benefits framework that allows Dashers to maintain the independence and flexibility they value — while also ensuring they receive benefits tailored to the unique nature of work on digital platforms.

To learn more, visit www.doordashimpact.com/future-of-work

they want to, never asking a boss for permission. This represents a momentous shift and puts more control in the hands of workers than ever before—earning income is no longer dependent on a static place and time like it was just a few years ago. In addition, this sort of technology means that businesses are more interconnected than ever before. For instance, we know that the odds of staying in business during the pandemic are eight times better for restaurants on DoorDash compared to all U.S. restaurants.

Access to delivery is what made many businesses able to weather the pandemic, which in turn meant protecting more jobs during an uncertain time for many workers.

Lenear Peruchini: Technologies that enable distance working have made things easier during lockdown and continue to enhance productivity and resilience in the long term. Technology will also be a key to helping us navigate the future of hybrid work. As companies look to right size their offices by moving to a more agile work environment where shared desks become the norm, technology platforms that help employees book a desk, meeting room or office-for-the-day will be critical in helping people return to the office. While this is not a new technology, the shift to hybrid working has increased the need for user friendly platforms that make coming to the office easy. With a focus on sustainability, health and well-being, this technology is expanding into smart building technologies leading to a future where occupants are in control improving comfort, space and resource usage in the workplace.

Peart: Artificial Intelligence is replacing some human administrative tasks and answering simple questions for us via webpages and chat forums. We’re adopting new means of technology and AI to meet the changing landscape of the mortgage industry with innovative solutions. For example, our awardwinning FlashCloseSM technology enhances convenience by allowing borrowers to electronically review, sign and notarize closing documents from their internet-connected devices. We also launched Gateless, a new mortgage technology company that utilizes AI and machine learning to increase speed and seamlessly drive more efficiency in the mortgage loan process, making the customer journey more efficient for everyone.

Reynolds: It’s important not to overlook the human factor. At Bravanti, we work with leaders, teams, and people in job transition

P026_029_CCB_20211115.indd 28

who are greeted and treated, first and foremost, with dignity and respect. In the leadership and people development business, technology and automation should serve as support mechanisms for advancing goals, not as achievements unto themselves. We must be intentional about the use of technology to support our goals and streamline our efforts.

After a year of challenges, what role is health and wellness playing in the workforce?

Reynolds: Mental health and well-being are key priorities for leaders and organizations as we move forward. Leaders can begin by modeling healthy behaviors themselves and not hesitating to be vulnerable with their people. Talking openly about the importance of selfcare and mental health in the work environment is critical. In addition, many organizations are already taking additional steps to provide enhanced employee assistance programs and other resources to ensure the health and well-being of their talent.

Peart: Not only do we want to feel connected, but we also want to open the door for more conversations surrounding fatigue, burnout and overall employee wellness and health. One example of our commitment to prioritizing employee health and wellness is an initiative called Mindful Mondays, a virtual meditation session to provide employees with an opportunity to mentally and physically unwind and realign. Counseling, employee assistance programs, mental health and wellness days have also moved to the forefront, and business leaders can now see the direct impact they can have on the success of the company, productivity of employees and employee retention overall.

Lenear Peruchini: For many of us, the pandemic dismantled the boundaries between our private lives and work, making the search for a work-life balance seemingly a mirage. Elements of this continuum will shape what we expect from our future workplaces, both at home and in the physical office space.

Employees will seek opportunities with companies that provide them with the flexibility and tools they need to manage this the “new normal.” This will likely include more social and collaborative spaces with enhanced technology that supports communication and fosters a sense of community among those in the office and those that aren’t.

11/11/21 9:35 AM

SPONSORED CONTENT

ABOUT THE PANELISTS JEANNETTE LENEAR PERUCHINI is managing principal and director of interiors for AECOM, the world’s largest infrastructure consulting firm. With over 20 years of architecture and design experience, she has played a key role in securing and managing complex projects around the world—building relationships, developing new business and collaborating with design teams to uphold design excellence. She holds an MBA from the University of Notre Dame Mendoza College of Business and a bachelor of landscape architecture from the University of Illinois at UrbanaChampaign.

Rettig: The last year and a half has brought a renewed focus on finding work that can be tailored to your goals and, therefore, provide better peace of mind—whether that be spending time with children, going to school, starting a business or just having some supplemental income. Dashing and work like it has provided people with the ability to design their work around their lives, which is empowering. We’re focused on finding solutions that protect those opportunities while also providing access to the benefits and protections that can help support the health, wellness and stability that people need.

Looking to 2022, what will be the highest priorities for business leaders?

Rettig: The highest priority should be finding ways to work with legislators and other key stakeholders to enshrine some of our best learnings from the last year and a half into law. They should also consider how the priorities and values of the workforce have changed due to the pandemic and take this new landscape into account.

TURQUOISE PEART is manager of diversity, equity and inclusion for Guaranteed Rate, one of the top five retail mortgage lenders in the United States, where she works closely with executive leadership and oversees the company’s multicultural and LGBTQIA+ employee resource groups.

A bilingual DEI, culture and HR leader with more than a decade of experience, she has worked at the strategic level in a variety of public and private sectors, building partnerships with key stakeholders, senior leaders and departments in many organizations.

MAX RETTIG is vice president and head of public policy at DoorDash, the nation’s leading last-mile logistics platform, where he oversees government relations, social impact, policy development, public engagement and strategic partnerships teams.

Previously, he worked at the White House as a senior advisor to the deputy national security advisor, as an attorney/advisor at the U.S. Department of State, and as an adjunct professor at Georgetown University Law Center.

He holds a law degree from Stanford University Law School and a bachelor’s degree from Amherst College.

Lenear Peruchini: Office environments will need to be enhanced to support employees’ safety and well-being and to encourage a culture of collaboration, tailored to the specific needs of each space. For those who are working from home, companies will need to provide support where necessary to ensure that they can deliver efficiently and safely. At AECOM, a digital global delivery model will allow us to bring the best of our talent to our projects wherever employees are based, supported by a strong IT infrastructure.

Reynolds: Leaders have to rethink almost everything about the way they lead. They’ll need to continue to prioritize talent retention, leadership development and succession planning in a fluid business environment. The leadership bench will be an especially urgent priority, particularly with the accelerating retirement of Baby Boomers, and high-potentials experiencing burnout or looking for new and different development paths. As external issues continue to become internal, leaders will have to reckon with articulating their views on social issues. Employee well-being,

“THE HIGHEST PRIORITY SHOULD BE FINDING WAYS TO WORK WITH LEGISLATORS AND OTHER KEY STAKEHOLDERS TO ENSHRINE SOME OF OUR BEST LEARNINGS FROM THE LAST YEAR AND A HALF INTO LAW.” — MAX RETTIG, DOORDASH

P026_029_CCB_20211115.indd 29

mental health, hybrid/flexible work and morale will also be top of mind as we emerge from the pandemic and move forward. To do that, some leaders need to enhance their change management, communications, and leadership skills, balancing a calm and empathetic approach with decisive action when necessary,

EMILY REYNOLDS is managing director at Bravanti, a global leader in executive coaching, leadership acceleration, and outplacement/career transition.

Since joining the firm, she has developed a diverse and experienced outplacement and executive advisory coaching team, partnered with global clients on people needs throughout the pandemic and spearheaded the development of new technology in career coaching and client reporting.

She is an honors graduate of Mt. Holyoke College and before joining Bravanti held senior management positions at Xerox and Canon USA.

meeting the fluid needs of their workforces, driving business results, and creating “followership” along the way.

Peart: Transparency, accountability and impact will be high priorities for business leaders, and they’ll be asked to answer what changes were made

to their business models and cultural initiatives as a result of the disruption.

Everything points to the foundation laid in the last two years, and it will become evident which organizations proactively made changes versus which organizations did not. Next year will show the product of the seeds that have been planted.

Igniting Bold Futures.

Find the power within to lead bravely forward.

Connect with us today.

bravanti.com +1.800.323.0206 EXECUTIVE COACHING  LEADERSHIP ACCELERATION  OUTPLACEMENT & CAREER TRANSITION

11/11/21 9:35 AM

30 NOVEMBER 15, 2021 • CRAIN’S CHICAGO BUSINESS

.

To place your listing, contact Claudia Hippel at 312-659-0076 or email claudia.hippel@crain.com www.chicagobusiness.com/classifieds CAREER OPPORTUNITIES

CAREER OPPORTUNITIES

Interested candidates send resume to: GOOGLE LLC, PO Box 26184 San Francisco, CA 94126 Attn: V. Cheng. Please reference job # below: ANALYTICAL LEAD (CHICAGO, IL) Use data analytics to better understand consumer behavior & develop solutions for Google’s clients’ business needs. 1615.59958 Exp Inc: SQL, R, & Python; Consumer behavior analytics, marketing, digital experimentation & data analysis; website analytics platform & clickstream behavior analytics; spreadsheet SW & presentation applications; mach learning models, testing, data visualization & statistical analysis; & analyzing large datasets & processing them to actionable insights. Position reports to the Google CHI office & may allow for partial telecommuting.

CASA CENTRAL SOCIAL SERVICES seeks DIRECTOR OF RESOURCE DEVELOPMENT: 4-7 years experience in nonprofit development, prospecting, grants, and event planning.

Submit resume to HR@CasaCentral.org www.casacentral.org/careers

CAREER OPPORTUNITIES To apply, send resume to 3423@google.com.

Must reference Job Code # below: CUSTOMER ENGINEER (Chicago, IL) Solve customers’ business issues with Google technology. 1615.60976 Exp Inc: mgmt consulting, business strategy, or IT strategy for an international tech company; Cloud Computing platforms; Cloud transformation & migration; IaaS, PaaS, or FaaS; basic understanding of SaaS; product strategy, product mgmt, or program mgmt for technology-based products; & Cloud Based SW Solutions or Services. Position reports to the Google CHI office & may allow for partial telecommuting.

CAREER OPPORTUNITIES NORDSTROM, INC. seeks an ENGINEER 2 in Chicago, IL to develop customer-facing iOS applications. Apply at www.jobpostingtoday.com, REF# 43449.

REAL ESTATE LOOKING FOR LAND? CALL JAMES 773-368-1977

AUCTIONS advertising opportunities available

To advertise contact Claudia Hippel claudia.hippel@crain.com 312-659-0076

OUR READERS ARE 125% MORE LIKELY TO INFLUENCE OFFICE SPACE DECISIONS Find your next corporate tenant or leaser.

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

P030_CCB_20211115.indd 30

Talk of Tempus IPO stirs memories of Groupon TEMPUS from Page 1 himself in public markets, where investors remember him as the architect of one of the most spectacular flameouts of the past decade.

“We all know the name, but for investors, (Groupon) hasn’t worked out,” says Tim Loughran, a professor at the University of Notre Dame who studies IPOs. “It was a disaster stock. That should make investors hesitant about the next IPO.” There’s little doubt that a Tempus IPO would match or even exceed the scale of Groupon’s debut. The company was valued at $8.1 billion when it last raised money nearly a year ago.

Whether its long-term prospects are better than the daily deal specialist’s turned out to be is something for investors to ponder.

They’ll see some parallels in Lefkofsky’s penchant for hyperbole.

As chairman of Groupon while its IPO was pending, he predicted the company would be “wildly profitable,” a forecast that didn’t exactly pan out. As CEO of Tempus, he said late last year: “As a leader in this space, we are very much aware of our responsibility and the power of this moment in time, one in which we now possess the technological capability to use artificial intelligence to eradicate disease.”

Such lofty proclamations may invite heightened scrutiny, particularly in the life sciences industry, where the false promises of blood-testing startup Theranos burned investors.

Lefkofsky has been a prolific startup founder but delivered mixed results for public investors. He and longtime business partner Brad Keywell took three tech companies public: Groupon, printing broker InnerWorkings and freight broker Echo Global Logistics. InnerWorkings went public in 2006 at $9 per share and was taken private last year at $3 per share. Echo went public in 2009 at $14 and trades at about $48 per share, which is the offer price for a pending $1.3 billion buyout.

As an early-stage investor, Lefkofsky’s Lightbank fund backed software maker Sprout Social, which later became the most successful local startup IPO of the past decade.

Lefkofsky, 52, has attracted deep-pocketed investors for Tempus, from venture funds such as New Enterprise Associates to mutual funds such as T. Rowe Price. And it’s a good time to go public.

“The IPO market has just gone bananas this year,” says Joshua Chao, an analyst at Seattle-based PitchBook. “A lot of investors want to capture high-growth investments because they haven’t been able to get in on these deals in the private market.”

U.S. venture-backed companies such as electric-vehicle maker Rivian have raised more $633 billion in public offerings this year, shattering last year’s record of $208 billion.

TEMPUS

CLASSIFIEDS

æ`ÛiÀÌ Ã } -iVÌ

Tempus Labs in Chicago The local life sciences industry hopes Tempus, which has grown faster and attracted more money than its peers, will raise Chicago’s profile among venture backers and employees in the way that Groupon’s splash did for tech startups.

“An IPO is a vote of confidence that puts Chicago on the map for life sciences,” says John Conrad, CEO of the Illinois Biotechnology Industry Association. “It shines a light on the other companies.”

Precision medicine, or the idea of using massive amounts of genetic data to both treat diseases such as cancer and develop new treatments, is attracting a lot of interest.

HOW IT WORKS

was its chief scientific officer until last year and remains an adviser. Recent executive additions have come from Big Tech, such as Amazon Web Services, Google and Nvidia; and Big Pharma, including Eli Lilly and Pfizer; as well as the Food & Drug Administration. Its advisory board includes Nobel laureate and gene-therapy pioneer Jennifer Doudna and former FDA Commissioner Scott Gottlieb.

The company says it has built one of the largest libraries of clinical and genetic data on cancer. Customers paying to use that data include Bristol Myers Squibb. Tempus has partnerships with pharmacy giant CVS, as well as hospitals such as Rush University Medical Center, to make its data and services available in treatment of patients.

Lefkofsky, who declined an interview request, started the company after discovering during his wife’s treatment for breast cancer how little data analysis was involved. Like Groupon, it’s also a land grab. Tempus is try-

Tempus competes with companies such as Foundation Medicine, which was bought in 2018

by Swiss biotech giant Roche for $3.4 billion, as well as startups such as Cota, which has raised about $75 million. 23andMe, a Silicon Valley-based pioneer in consumer genetic testing that plans to license data to drug companies, went public this year “AN IPO WITH TEMPUS—BECAUSE and is now valued at IT’S DEEPER TECH—WILL PROBABLY about $5 billion.

As a private compa- BE A LITTLE MORE THOUGHTFUL.” ny, Tempus hasn’t disclosed its financials. It Fred Hoch, startup investor at TechNexus has raised roughly $1 Venture Collaborative billion since Lefkofsky founded it in 2015 and has ing to build the largest genomic grown to nearly 2,000 employ- database for drug companies.

But Tempus is much more ees. The company operates testing labs in Chicago, Atlanta and complex than anything LefkofRaleigh-Durham, N.C. It’s ex- sky has attempted before, operpanding beyond oncology into ating at the cutting edge of computer technology and medicine, depression and cardiac care.

The company grabbed atten- in a highly regulated industry.

“Groupon was a wild stallion tion early, signing partnerships with Northwestern, University of ride based on excitement of the Chicago and other big medical internet and consumer tech. An research centers to provide ge- IPO with Tempus—because it’s netic sequencing to cancer pa- deeper tech—will probably be tients, using data to match them a little more thoughtful,” says with clinical trials and provide Fred Hoch, a startup investor doctors with results of various at TechNexus Venture Collabotreatment options on those with rative. “I don’t anticipate it will get the hype cycle Groupon got. similar genetic profiles.

Tempus also landed high-pro- My mother is not going to know file talent, starting with U of C about Tempus. She knew about researcher Kevin White, who Groupon.”

11/12/21 4:07 PM

CRAIN’S CHICAGO BUSINESS • NOVEMBER 15, 2021 31

South Shore neighbors buy apartment building and rehab it together springboard for the neighborhood.”

Thompson, Stern and the others, all of whom live within about five blocks of the site, contributed an average of $13,428 to buy the early 1900s building. The total, $282,000, is 21 contributions by 27 people, some of them giving as a couple, said Michael Kelley, a shareholder and an organizer of the buyers group.

When Crain’s met with seven of the investors on a recent Saturday morning, five were Black and two were white. South Shore is a majority-Black neighborhood. The seven have lived in the neighborhood between three and 35 years and include lawyers, IT professionals and a few with experience as building contractors.

The funds raised were enough to secure a mortgage and construction loan through Republic Bank, and in September 2020, an LLC formed by the neighbors paid $600,000 for the building, or about 40% of the $1.525 million that a previous owner, a North Side real estate investor, paid for it in 2006. (In the interven-

flows if all the apartments are rented,” Kelley said. That will mean, “we can hold out for the kind of commercial tenants we want.” He’s hoping for restaurants, to create a dining hub for South Shore.

The building “was obviously undervalued when we bought it,” Thompson said. Because of that, he’s confident that “we’re not going to lose money. And we may not make any money.”

‘EPICENTER’

Michael Beckerman, the Republic Bank senior vice president for commercial lending who approved the group’s financing, said their idea reminds him of an older model of neighborhood development, where a church “was the epicenter and had a stake in what happened (throughout) the parish.”

These owners, Beckerman said, “are going to walk by that building, drive by the building every day and make sure what’s going in is what they want to see happening.”

They’re the opposite of absentee landlords, an ownership stance that plagues many South Side neighborhoods. “They’re landlords who live right there, down the street,” “THEY’RE LANDLORDS WHO LIVE Beckerman said.

Evaluating the appliRIGHT THERE, DOWN THE STREET.” cation, Republic didn’t scrutinize the finanMichael Beckerman, senior vice president for cials of all 27 investors, commercial lending, Republic Bank Beckerman said, “just ing years, the building changed the five largest-percentage share hands at least four times, gener- owners.” Between them, those ally without prices recorded in five had enough assets to guarcounty records.) They’ve spent antee the loan if it goes awry, he about $200,000 more on rehab, said.

Kelley said.

When the neighbors group At those numbers, roughly an bought the building, two of its $800,000 investment, “it cash- 16 apartments and one of its five

JOHN R. BOEHM

SOUTH SHORE from Page 3

The building at 71st Street and Bennett Avenue contains 16 apartments and five ground-level commercial spaces. The new owners rehabbed the structure and, as of Nov. 1, reopened the apartments for leasing. Next they’ll look for commercial tenants. commercial spaces were occupied. Rehab came with surprises, as is typical. The water heater failed shortly after the purchase, said Tyriece Kennedy, a shareholder who lives up the block, and “after one real bad rain” the roof needed more work than the buyers had foreseen.

APARTMENTS

As of Nov. 1, there was one tenant, who stayed over from previous ownership and lives in the building’s only two-bedroom

apartment. The other 15 units are being offered starting at $825 a month for a studio and $925 a month for a one-bedroom.

The notion of buying the building came about, several members said, the same way a plan to throw a block party would.

Neighbors bumped into neighbors when walking their dogs or to the South Shore, and the subject of the largely vacant building on Bennett often came up. Kelley was the first to wonder aloud if a group of neighbors could buy it,

and the idea swept through the neighborhood fast.

The goal was to raise about $182,000, Kelley said, and pretty quickly “we got more than we needed,” $282,000.

The idea of neighbors buying a building to turn it around, rare if not unique in Chicago, was compelling.

“We all talk about what’s happening in our community,” Kennedy said. “This was an opportunity to turn our words into action.”

Can a Bahraini lender save this condo-hotel high-rise project in River North? tioned why the $200 million loan had to go through an Abu Dhabi bank and why Symmetry was having a hard time paying a $200,000 fee in connection with the financing. Given the size of the loan, that should be easy, he argued in court.

“That is like me picking a $100,000 Porsche and going into the bank and borrowing $1,000 on it—or borrowing a hundred dollars on it,” he said, according to a transcript. “I mean, it gets silly after the point, that it becomes unbelievable.”

go-based Jones Lang LaSalle.

The odds of that happening extremely unusual for a devel- are slim as long as Ald. Brendan oper to receive such a large con- Reilly, 42nd, represents River struction loan—$200 million, ac- North in the City Council. Under cording to court transcripts—for longstanding City Council tradia project that hasn’t even been tion, alderman have veto powapproved by the city. A construc- er over developments in their tion lender may agree to lend wards. Reilly used that power in money on a conditional basis— 2017, when he rejected Symmeafter, say, the developer obtains try’s initial development prothe zoning and permits for the posal. He turned down a revised project—but it wouldn’t bet on plan in 2019.

“It’s a total mess,” “AS A FORMER HEDGE FUND LAWYER, Reilly said in 2019.

“There is no real proI HAVE NEVER SEEN SUCH A DELAY IN posal, there are no next steps and there A WIRE TRANSFER.” are no approvals pending for the foreDoug Litowitz, an attorney for the investors seeable future.”

Reilly declined to comment for the come and advance the funds this story. on the prospect of approval.

Complicating matters is a fore“The money is unlikely to go out until the point” that ap- closure suit on the River North deprovals are secured, said mort- velopment site owned by a Symgage broker Keith Largay, senior metry venture. The case, which managing director at Chica- was filed in 2019, is pending.

Hildebrand, Symmetry’s attorney, ignored an interview request, issuing a statement instead. Attempts to reach Symmetry executives in New York were unsuccessful.

“My client has advised that they will continue working through the court process, as they have all along,” Hilldebrand wrote. “They are working through the court to fulfill their settlement terms.”

Though the hearings in the Symmetry case are open to the public, details about the Bahraini lender and prospective loan are not. Kocoras has allowed Hillebrand to file documents related to financing under seal and present some materials privately in his chambers.

Yet transcripts of court hearings reveal growing frustration among attorneys for the Chinese investors—and suspicions that they’re being played. In an August hearing, Litowitz ques-

HOW TO CONTACT CRAIN’S CHICAGO BUSINESS

Vol. 44, No. 46 – Crain’s Chicago Business (ISSN 0149-6956) is published weekly, except for the last week in December, at 150 N. Michigan Ave., Chicago, IL 60601-3806. $3.50 a copy, $169 a year. Outside the United States, add $50 a year for surface mail. Periodicals postage paid at Chicago, Ill. Postmaster: Send address changes to Crain’s Chicago Business, PO Box 433282, Palm Coast, FL 32143-9688. Four weeks’ notice required for change of address. © Entire contents copyright 2021 by Crain Communications Inc. All rights reserved.

RIVER NORTH from Page 3

EDITORIAL . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 312-649-5200 CUSTOMER SERVICE . . . . . . . . . . . . . . . . . . 877-812-1590 ADVERTISING . . . . . . . . . . . . . . . . . . . . . . . . . 312-649-5492

P031_CCB_20211115.indd 31

CLASSIFIED . . . . . . . . . . . . . . . . . . . . . . . . . . . . 312-659-0076 REPRINTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 212-210-0707 editor@chicagobusiness.com

PUSHING BACK

Hildebrand, meanwhile, has pushed back, arguing that the delays are nothing more than that, not some kind of nefarious plot by Symmetry to avoid repayment.

“I think we can really just kind of discount or disregard the suggestion that this might somehow, in the worst-case scenario,

be some sort of scheme to avoid the settlement agreement,” he said in the same August hearing, according to the transcript. “No such thing is possible.”

Yet the dispute doesn’t help the image of the EB-5 visa program, which allows developers to fund projects with money from foreigners who receive green cards in return. Symmetry raised its money through the federal program, which has faced scrutiny in recent years amid allegations of fraud and mismanagement.

In 2017, a federal judge sentenced a Chicago developer to three years in prison after he pleaded guilty to charges that he defrauded 290 Chinese investors. He raised $158 million from them through the EB-5 program for a $912 million hotel project near O’Hare International Airport.

The visa program expired in June, and Congress has yet to reauthorize it.

11/12/21 4:05 PM

Helping 654,000 Illinois businesses connect with customers Every day, hundreds of thousands of Illinois small businesses like The Spice House are íøĔĬČ ċIJŞĬô IJĬĦĔĬø̵ Ĕřđ Ô ċŎøø ŞŒĔĬøŒŒ zŎIJǁ Ħø on Google, small businesses can connect with customers through phone calls, directions, bookings, and more.

The Spice House 4.8 Open • Closes ˨PM

P P

DIRECTIONS

CALL

WEBSITE

POSTS

The Spice House

P

P P

Find free resources for your small business at grow.google/smallbusiness

tab doc.indd 1

21cb0405.pdf

RunDate 9/27/21

FULL PAGE

Color: 4/C

9/21/21 7:46 AM