Crain's Chicago Business

CONNECTING: Remote learning during COVID sparks CPS broadband plan. PAGE 8

LEADERS: Notable Women in Construction and Design. PAGE 17

CHICAGOBUSINESS.COM | MAY 3, 2021 | $3.50

Whew! A year later, banks sound all-clear

Joe Flamm’s Rose Mary is an Adriatic restaurant that serves Italian and Croatian food.

Fears of an ’08-style tsunami of bad loans didn’t come to pass. What lessons can be learned?

BY STEVE DANIELS

The pandemic dampened openings but did not extinguish them.

Here are some notable ones you might have missed. BY ALLY MAROTTI WHILE DINERS ARE ITCHING TO GET BACK to their old favorites, some new spots with pedigreed chefs also quietly opened in the past few months.

Opening has been a journey for some new establishments. Many were delayed by a year or more, and all are still operating under the city’s capacity limits. Some welcomed their first guests with limited menus, takeout only options or cold-weather patios.

At Japanese restaurant Nobu in the West Loop, Director of Food and Beverage James Frazey learned that 10 degrees was the threshold for people eating outside. Fine-dining restaurant Ever, which was recently awarded two Michelin stars, dreamed up to-go options and started serving burgers after indoor dining was banned last fall.

See RESTAURANTS on Page 37

“IT’S A BIG DEAL IN GENERAL” TO OPEN YOUR OWN RESTAURANT. “BUT ESPECIALLY RIGHT NOW.” Joe Flamm, who opened Rose Mary in late April

See ALL-CLEAR on Page 36

Lori’s lieutenants hitting the exit

Brain drain threatens push for change in policing

BY A.D. QUIG Mayor Lori Lightfoot has lost key players in the police reform arena as she grapples with fallout from multiple CPD controversies, blown consent decree deadlines and simmering debate in the City Council over civilian oversight of the police.

Deputy Mayor for Public Safety Susan Lee and Chief Risk Officer Tamika Puckett both left in October, followed by Corporation Counsel Mark Flessner in December. Interim officials now fill all three roles. The city’s inspector

NEWSCOM

JOHN R. BOEHM

10 NEW RESTAURANTS WITH BUZZ

A year ago, as millions suddenly were losing their jobs, banks were girding for a replay of the Great Recession—borrowers defaulting en masse, leading to losses and eating deeply into capital cushions. That financial calamity resulted in the failure of more than 50 local banks.

Not only did the horror-movie sequel not get made. Bad loans at many banks and other lenders actually are at levels at or below where they were in 2019, before COVID was a word and when unemployment was lower

than it had been in years.

Now, bank CEOs are sounding something resembling an allclear as their companies begin to plow the cash they’d set aside for the deluge-that-never-happened back into earnings. Locally, credit card company Discover Financial Services, Northern Trust, BMO Harris Bank and Wintrust are among the lenders already reducing their reserves for future loan losses after substantially building up those buffers last year.

As the year goes on, expect

Mayor Lori Lightfoot general, Joe Ferguson, is on unsure footing as his term expiration approaches in August. The mayor has hinted he won’t be retained.

See POLICING on Page 32

NEWSPAPER l VOL. 44, NO. 18 l COPYRIGHT 2021 CRAIN COMMUNICATIONS INC. l ALL RIGHTS RESERVED

JOE CAHILL

TECH TAKEAWAY

Nonprofits are MIA when it comes to rescuing the Trib.

Getting to know a top Facebook executive in Chicago.

PAGE 4

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PAGE 6

4/30/21 4:25 PM

2 MAY 3, 2021 • CRAIN’S CHICAGO BUSINESS

GREG HINZ ON POLITICS

Lessons for the COVID crisis, from the era of AIDS down the street and wildly firing a pistol in the air—if you don’t want to get shot, stay at home already—and heading out to a restaurant, bar or office in blissful disregard of your ability to infect someone else, even if you personally feel no symptoms at the moment.

The worst are the politicians, the wackadoos and civic leaches who would allow people to needlessly die for a few votes. Like U.S. Sen. Ron Johnson from neighboring Wisconsin. He suggested last week that only “the really vulnerable” should get shots since the vaccines that have been given to well over 100 million Americans were only approved for emergency use.

Besides, he added, “what is it to you” if someone else is vaccinated?

Or Florida Gov. Ron DeSantis. He not only demands that the cruise industry be given the green light to sail again—this while accepting nearly $1 million in campaign cash from cruise-industry interests— but signed and defended a new state law banning ships from requiring their passengers to be vaccinated. As someone who’s taken cruises, I have to ask: Governor, are you nuts? You I’m going to IT’S TAKEN AIDS THREE DECADES think get on a boat with thousands of others TO KILL 700,000 AMERICANS. if I don’t know COVID SOON WILL PASS 600,000. they’re safe?

That’s the backdrop as local government you’ll see stories about how, and businesses try to deal while nearly half of the adult with getting back to the population now has been innew normal. Some, like one oculated, there is enormous restaurant chain here, are vaccine resistance among using the stick: Employees much of the remaining half. have been told to get vacciHere in Illinois, while upnated or find another job. ward of 130,000 shots were Others, like Chicago Health being administered a day a Commissioner Dr. Allison few weeks ago, the number Arwady, are trying the carlately has dropped below rot: guaranteed admission 100,000. to concerts and the like if Part of it is strictly peryou’ve been jabbed. sonal. No one likes shots, Ultimately, however, it and some dislike them a lot depends on us. You and more than others. People in me. Ponder this: It’s taken Black and Brown commuAIDS almost three decades nities can be hard to reach, to kill 700,000 Americans. with African Americans COVID-19 soon will pass the having particular cause to 600,000 mark after barely a distrust the medical estabyear. lishment given their treatThis is as serious as it gets, ment in the horrid Tuskegee folks. If you have a shred of syphilis study. With time, I humanity or concern about hope such concerns can be anyone beyond yourself, get assuaged with facts. the vaccine. Today. None of Some of it is mule stubus can keep AIDS or COVID born. As in: “Nobody tells from erupting. All of us can me what to do! I’ve got do something to stop the rights!” As if there’s any spread. difference between walking For those of us of a certain age, or a certain sexual orientation, the health emergency of our time was not COVID-19, bad as that is. It was AIDS. Like COVID, AIDS seemingly arrived out of nowhere. It feels like it was only yesterday. In a seeming blink of an eye, people started dying—whole social circles and people you’d dated. While there were suspicions as to why, no one could quite be sure. As with COVID, AIDS arrived at an inconvenient time for certain presidents who really didn’t want to deal with it.

As with COVID, fights flared over triage: which medications to prescribe, when and in what order. The two afflictions even shared a top doc in common: Anthony Fauci.

But one thing is different. Had the government around 1985 announced the release of a vaccine that was 95 percent effective against serious infection, mobs would have burned down any clinic or hospital that refused to jab your arm. Not today, though. America has changed, and not for the better.

Check our website or any other news outlet lately and

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Carbon tax? Renewable power?

Nuke bailout? Pritzker says yes.

The governor’s highly anticipated energy bill to scrub the carbon from Illinois’ power sector by 2050 is expansive to say the least—and it also appears equally expensive

BY STEVE DANIELS Gov. J.B. Pritzker is out with his long-awaited comprehensive energy bill, an expansive blueprint for advancing clean-energy goals that includes a bailout for two Exelon-owned nuclear plants, doubling of ratepayer charges to finance new wind and solar projects, a phaseout of coal-fired electricity by 2030 and natural gas by 2045 and a new price on the carbon those power plants emit in the meantime.

Money for all these major initiatives would come from the same source: business and residential ratepayers across the state.

At the same time, the governor is proposing to immediately end the formulaic rate-setting that has boosted utility bottom lines since Commonwealth Edison first won the authority from Springfield in 2011 to re-do its delivery rates every year under a formula that removed much of the authority previously available to regulators. Likewise, on the natural gas side, Pritzker would do away with surcharges by which Peoples Gas now dings the average Chicago household by well over $10 a month.

Pritzker’s goal is to make Illinois’ power-generation industry 100 percent carbon-free by 2050.

With the new legislation, the governor seeks to take some control over a legislative process that has seen separate coalitions propose jarringly different approaches to accomplishing the same goal. A union coalition has put forward legislation that arguably

would raise utility bills even more, million annually for the next five would provide a higher subsidy to years—well below the $235 Exelon and would preserve some million annually over 10 years of ComEd’s formula-rate system. that former Gov. Bruce Rauner A set of environmental groups, signed into law in 2016. The end along with the Citizens Utili- to formula rates and gas-utility ty Board, has pushed the Clean surcharges will save consumers Energy Jobs Act, which would “hundreds of millions,” he says.

And the Illinois Commerce have the state assume oversight of the wholesale power market Commission, which the Legislain northern Illinois with the goal ture increasingly has sidelined of incentivizing renewable power over the past decade at the behest and disincentivizing fossil fuels. of utilities, is given much more A coalition of renewable pow- authority to oversee how much er developers has also endorsed utilities spend on infrastructure legislation that, like Pritzker’s bill, with more funding to bolster staff would substantially increase rate- and improve its effectiveness, he payer charges to finance more says.

The ball now is in the court projects.

To this point, Springfield has of the various interests with struggled to make choices, with stakes—both financially and polHouse committees endorsing icy-wise—in Illinois’ energy futhe various bills on lopsided votes even MONEY FOR ALL THESE MAJOR INITIAwhen they were at cross purposes.

TIVES WOULD COME FROM THE SAME The governor’s bill, Deputy Gov. SOURCE: BUSINESS AND RESIDENTIAL Christian Mitchell RATEPAYERS ACROSS THE STATE. says in an interview, “deals with our enture. Exelon says the bill’s nuke ergy system from soup to nuts.”

Asked how much more Pritz- subsidy is too low, but that it is ker’s bill would cost ratepayers, open to negotiation. Mitchell says Mitchell says the governor’s office the company should find its own is working on an estimate, which independent auditor—one that should be made public this week. hasn’t done work for it before—to Still, he defends the measure produce an alternative.

The new carbon tax is likely to against criticisms that it doesn’t appear consumer-friendly. The raise power prices, so Exelon’s proposed subsidy for Exelon’s financially troubled nukes won’t Dresden and Byron nukes, which need as much of a subsidy as they an independent auditor hired by would otherwise, according to the administration agreed needed Synapse Energy Economics, the financial help to stave off planned closures this coming fall, is $71 See ENERGY on Page 7

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4/30/21 3:38 PM

CRAIN’S CHICAGO BUSINESS • MAY 3, 2021 3

The fight for office tenants intensifies

Geoff Smith is executive director of the Institute for Housing Studies at DePaul University.

Landlords dangle snazzy buildouts, lease perks —but for how long?

HERE COMES A WAVE OF FORECLOSURES As a federal moratorium gets set to expire, experts fear many homeowners could lose their properties BY DENNIS RODKIN WHILE PEOPLE WHO KEPT THEIR JOBS throughout the pandemic have participated in a dizzying real estate market, the flip side of that coin is the homeowners who have barely hung on through unemployment or significant loss of income.

A federal moratorium on foreclosures, one of the measures designed to keep people from losing their homes at a time when staying home was fundamental, is due to expire in June. Though it has been extended several times, at some point it will go away, as will lenders’ forbearance programs that allow homeowners to delay payments until the crisis is over.

Will that be tantamount to opening the floodgates and letting a new surge of foreclosures through?

“It’s not going to be good, but it’s not going to be on the scale of the Great Recession,” says Geoff Smith, executive director of DePaul University’s Institute for Housing Studies, who has been on the foreclosure beat before the housing crash and recession of the mid-2000s.

It’s likely not going to be good in Chicago. All six counties in the metro area are among the 10 See FORECLOSURES on Page 37

“IT’S NOT GOING TO BE GOOD, BUT IT’S NOT GOING TO BE ON THE SCALE OF THE GREAT RECESSION.” Geoff Smith, executive director, DePaul University’s Institute for Housing Studies

JOHN R. BOEHM

BY DANNY ECKER When Bryan Beckner got the “best and final” offer from his landlord in 2019 for the extra space his company wanted to lease at its 150 N. Michigan Ave. office, the chief financial officer of Impact Networking and his fellow executives decided the numbers didn’t work and declined.

When talks resumed almost a year later—several months into the COVID-19 pandemic—the terms started changing in his favor. Then they changed some more as the downtown office market softened throughout 2020 until the Lake Forest-based business service and technology company fi nally inked a deal earlier this year to expand its office by more than 31,000 square feet.

The end result: Compared with the original offer, Impact Networking would get 30 percent more free rent and a 25 percent bump in cash to build out its new space, according to Beckner.

“We reached a deal where at least all of our actual buildout costs would be covered,” he says. “Traditionally, that has been rare.”

It’s not so rare anymore. Companies hunting for downtown workspace wield a lot of power amid a pandemic that has pushed office vacancy in the city to an all-time high.

As COVID-19 vaccinations pick up speed and executives start to make new commitments to real estate—Impact Networking, Kimberly-Clark and Calamos Investments are among the latest to ink See PERKS on Page 32

United forecasts a hot vacation season Airline says Americans are ready to hit the skies like it’s 2019 United Airlines expects domestic leisure travel to return to pre-pandemic levels this summer.

It’s the most promising sign yet that a recovery from the coronavirus might finally be underway in the airline industry after some false starts.

“We do see this inflection point in mid-June,” United chief commercial officer Andrew Nocella told analysts on the company’s first-quarter earn-

P003_CCB_20210503.indd 3

ings call April 20, adding that he expects planes will be 80 percent full or more, with domestic leisure fares at or above 2019 levels. “We’re on the road to recovery. Consumer confidence about air travel is clearly strengthening.”

United said April 23 that it will add nearly 500 daily flights in the U.S., including new routes to vacation destinations such as Yellowstone National Park and Kona, Hawaii. The airline unveiled plans April 19 to restart some international routes,

such as Chicago to Munich and Amsterdam, just in time for the European Commission to announce that vaccinated U.S. travelers would be allowed to visit the continent this summer.

Rick Seaney, who runs 3Victors, a firm in Dallas that forecasts travel demand, says online searches for air travel topped pre-pandemic levels in March.

“You have a bunch of people who’ve been stuck in Zoomville who want to get out of town,” See UNITED on Page 38

BLOOMBERG

BY JOHN PLETZ

United Airlines says it expects domestic leisure fares to be at or above 2019 levels.

4/30/21 4:20 PM

4 MAY 3, 2021 • CRAIN’S CHICAGO BUSINESS

JOE CAHILL

CHICAGO COMES BACK

ON BUSINESS

Imagined rescue scenarios for the Chicago Tribune often end with the paper safe in the arms of a nonprofit foundation.

After all, other metropolitan dailies beset by the woes afflicting print media have taken shelter in nonprofit ownership. The arrangement relieves financially struggling papers of pressure to produce investment returns and the obligation to pay taxes.

Trouble is, that script requires a nonprofit willing to play the role of savior. And no Chicago foundation has signed up for a mission to save the Tribune from a hedge fund that has gutted other papers it owns. Alden Global, which owns about a third of Tribune Publishing, has offered to acquire the rest of the Tribune’s parent company.

Shareholders are scheduled to vote on the deal later this month.

The first public statement on the Tribune situation from a local foundation came last Tuesday, when the John D. and Catherine T. MacArthur Foundation swatted down a WTTW report that the city’s biggest nonprofit and two other foundations were working

IT’S A LONG SHOT, BUT IT’S A LONG SHOT WORTH TAKING. on a possible Tribune bid.

“We are not in talks to buy the Chicago Tribune or the Tribune company,” spokeswoman Kristen Mack told the PBS station in a statement that leaves a bit of wiggle room.

Why not? According to its website, journalism is a major philanthropic interest of the MacArthur Foundation.

Journalism and media is listed as one of the $7 billion foundation’s “enduring commitments.”

In 2019, the foundation gave $25 million to journalistic endeavors, with a stated goal of “Working to strengthen American democracy by informing, engaging and activating Americans through deep investments in independent journalism and media.”

MacArthur isn’t the only Chicago foundation that might be expected to take an interest in the hometown paper’s fate. Websites of three of the five largest local foundations list journalism as a key focus area.

An obvious candidate is the Robert R. McCormick Foundation. Founded by former Tribune paterfamilias Col. Robert McCormick, the $1.4 billion foundation is run by a cadre of ex-Tribune executives. Until 2007, the foundation owned a block of Tribune shares. Their website emphasizes the importance of “vigorous and independent journalism” to a well-functioning democracy.

P004_CCB_20210503.indd 4

“We support news outlets to broaden and deepen public affairs reporting,” reads the website, which highlights the role of journalism in “informing the public and holding institutions accountable.”

Another local charity with a commitment to journalism is the Joyce Foundation. The $1.1 billion foundation’s website lists as one of its goals “supporting high-quality journalism projects focused on public policy issues affecting the Great Lakes region.”

(The Joyce Foundation is a sponsor of Crain’s Forum series.)

It’s hard to imagine a project more consistent with these avowed commitments to journalism than trying to save Chicago’s biggest newsroom from evisceration. Yet no foundation showed much interest in the idea when I asked. A MacArthur spokeswoman reiterated her statement to WTTW and emphasized the foundation’s role as a “long-time funder of independent journalism and media.” A McCormick spokesman said the foundation will continue supporting journalism but “has no intention of taking an ownership position in any Chicago media outlet.”

Joyce didn’t respond to inquiries. Ditto the Pritzker Traubert foundation and The Ford Foundation, the other two foundations WTTW mentioned in its report.

True, stepping into a corporate takeover battle would take foundations far outside their comfort zone. They tend to dole out dollars to small media nonprofits and individual journalists pursuing investigative projects.

And it’s unlikely any single foundation could finance a bid for Tribune Publishing that tops the $630 million value of Alden’s offer. MacArthur handed out just $288 million in grants across all its focus areas in 2019, while McCormick and Joyce gave less than $50 million apiece.

What they could do is support a competing bid for Tribune Publishing by Maryland hotel magnate Stewart Bainum. His campaign took a heavy blow last month when billionaire Hansjorg Wyss backed out. If local foundations pooled resources and agreed to buy Tribune from Bainum if he wins control of Tribune Publishing, it might help finance his bid.

Sure, it’s a long shot. And nonprofit ownership alone won’t solve the problems of traditional media outlets like the Tribune.

But it’s a long shot worth taking, considering the alternative.

And if Alden gets to apply its usual tactics to the Tribune, foundations dedicated to preserving journalism will have an even bigger gap to fill.

It’s time we got moving

ALAMY

When it comes to saving the Trib, foundations are MIA

Inactivity is a leading health threat now. As CEOs consider a solution, can the title ‘chief public health officer’ or ‘chief wellness officer’ be in our future?

BY EMILY DRAKE AND TODD CONNOR Chicago Comes Back is a weekly series on ChicagoBusiness.com providing leadership insights to help your business move forward, written by leadership consultants Emily Drake and Todd Connor.

Drake and Connor facilitate Crain’s Leadership Academy. Drake is a licensed therapist, owner of the Collective Academy and a leadership coach. Connor is the founder of Bunker Labs and the Collective Academy and is also a leadership consultant.

Check out previous installments at ChicagoBusiness.com/comesback.

EMILY DRAKE: When so much feels out of control, I know two things that help ground me are movement and service. The latter we’ve been talking about a lot lately: how to show up for others and get out of our own heads. But I want to address the bodies reading this right now—our leaders who are so used to living from the neck up and may not notice what else this pandemic has changed for us: incidental movement. Our bodies are missing the walk to the train, the steps to climb and the trade shows to traverse. Currently, 1.5 billion people around the world are so inactive they are risking their long-term physical health.

TODD CONNOR: I was skeptical when you suggested this because everyone, and I mean everyone, knows they need to exercise— and if you aren’t, you begin to wonder what’s wrong with you.

But you’re talking about movement, which is different from exercise as we understand it, and this research that inactivity is the fourth-leading cause of death reminds me of something I may have known, but had not held front and center: If we want to address inactivity, we have to be thoughtful in designing for solutions. We’re lucky to live in a city where some residents have access to the lakefront bike path, protected bike lanes and parks with pathways. But notice I said some residents, not all residents.

ED: It’s another system that invites a conversation about privilege—and power. Not to mention making progress, which can start today, for each of us individu-

ally and as a city. Peter Walker, author of “The Miracle Pill: Why a Sedentary World is Getting it All Wrong,” is careful to say that patterns can be reversed; health can be improved and it’s never too late to start moving. As leaders, we have to be focused on the solution, first for ourselves—as we always talk about—so we can then add value to systemic efforts. When it comes to the system level, I’ve been interested in Chicago’s Active Transportation Alliance and their commitment to making bicycling, for example, safe and easy, no matter your age, ability or where you live. To your point about access, they’re also making sure diverse voices are at the table for transportation conversations.

TC: This makes me think, as we explore how we as individuals work within systems, how far away we are from having the next C-level position in organizations be “chief public health officer” or “chief wellness officer.” Harvard’s Michelle Williams, dean of faculty at the T.H. Chan School of Public Health, said in February that CEOs are already discussing the need to add a CPHO, in addition to having mental health addressed as often as physical health. Beyond corporate enterprise, the pandemic may have helped us develop a relationship with “the government” where we find recommendations from Dr. Fauci and the CDC, for example, useful and then apply them, vs. useful and ignored. (How many of us actually eat five servings of fruits and vegetables a day?)

ED: There’s definitely an opening here. And with inactivity a lead-

ing cause of death in the world right now, we can’t just point at individuals and call it laziness and personal choice that movement is hard. Last year many of us realized, maybe for the first time, how interconnected we are—that we have choices, sure, but we’re also part of systems that aren’t working for everyone.

If we want Chicago’s return to be equitable, how can we care for all of us in that process? CTA just announced it’s increasing the capacity on buses and trains. It remains to be seen if riders will come back, but how do we continue to open up to get people moving and working?

TC: Movement has so much to offer us in terms of physical health, but my commute, which was usually a Divvy to the Loop, was both incidental movement and so much more. It was mental and emotional processing time. That has always been in short supply for leaders, and that kind of space is hard to get for so many. For many suburban and city neighborhoods, driving remains the only option because there aren’t sidewalks or it isn’t safe overall.

Now that we are softening restrictions and getting vaccinated, we may feel safer in the act of taking public transportation and therefore getting the benefits of movement. But how about the walk to and from the bus stop?

What safety means now needs to have that level of calculus to consider, too.

ED: What’s true, for sure, is it’s an important leadership practice to reflect on the decisions we make, why we make them and how our choices affect others—because they do. How can we get involved in creating safe spaces to move for everyone? We want you to get into your body and out on the bike path this summer—to improve your own health—but consider how what you’re deciding can improve others’ lives too.

I think that’s what the core of being a leader is all about.

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6 MAY 3, 2021 • CRAIN’S CHICAGO BUSINESS

THE TECH TAKEAWAY

Judy Toland

Illinois

Toland, 49, is vice president and head of scaled solutions and global business marketing for Facebook in the Chicago office. She lives in Westmont with her husband and their 3-year-old daughter. By Laura Bianchi

Longstanding racial, social and economic inequities have +-* 0 1 ./ $.+ -$/$ . /# / Ȃ / /# '$1 . *! ( )4 *' - + *+' *! *'*-ѵ ''$)*$. $. *'' *- /$)" 2$/# - $ ' ,0$/4 *-" )$5 /$*). ) *0- ./ / ҁ. ' / *Ȃ $ $ '. /* ҂ $.-0+/ $.+ -$/$ .ѵ҃ *" /# -Ѷ 2 ) - / ) ''$)*$. 2# - 1 -4 . )$*- # . *)*($ ./ $'$/4Ѷ # '/# - - .*0- . ) $"$/ ' *)) /$1$/4ѵ -) #*2 $. 2*-&$)" /* ( & ''$)*$. (*- ! $- / DisruptDisparitiesIL.com ! **&ѵ *(ҝ ''$)*$. Ҟ ҽ -+$''$)*$. Ҟ -+ѵ*-"ҝ

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What happened?

We overcame. My parents were extremely brave, courageous and intelligent. They liked the schools there and their “Brady Bunch” split-level home, and they wanted a better life for their family.

Why does that resonate with you?

Small businesses are in my DNA. My maternal grandfather sold coal and ice in East St. Louis, and he was able to put 12 kids through college, including my mother. My paternal grandfather owned a cleaner in Oklahoma City.

>

< > <

And the other way you think about it?

When my family moved in the late ‘60s to Missouri, we were the first or second Black family in the neighborhood. We were welcomed by people who burned down the largest tree in our yard. I was one of the few Black kids playing soccer, and I got called racial slurs throughout many games.

What do you consider your greatest business achievement to date?

I was asked last summer to be executive sponsor of Facebook Elevate, a digital platform committed to accelerating the growth and success of small businesses, job seekers, students and nonprofits in the Black, Latinx and Hispanic communities.

How have you coped during the pandemic?

With renewed focus on my health and fitness. I figured if I was going to be stuck working at home, I would make sure I got a good workout regularly. I’m down 15 pounds and probably in the best shape since I played soccer for Northwestern.

>

Your curated city lifestyle, awaits.

What was life like growing up in suburban St. Louis?

I think of my childhood in two ways. There was the joyful, safe bubble that my extended family created. I had two parents, three siblings and I was surrounded by a very large extended family.

I was inspired by my parents, uncles and aunts, most of whom had bachelor’s degrees, at least, which was an achievement because Black Americans did not always have equal access to higher education at that time.

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Inequality won’t end on its own.

Help AARP Disrupt Disparities.

Congrats! Any tips?

I’m currently in love with the Beachbody app and my Peloton app. Two months after getting the bike, I used their breathing exercise before a speaking engagement. It helped me relax.

>

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On what have you splurged lately?

We are building a home in Burr Ridge.

We had been waiting a decade to build a new home, but the pandemic made us realize: What are we waiting on? Life is for today.

4/30/21 3:37 PM

CRAIN’S CHICAGO BUSINESS • MAY 3, 2021 7

Pritzker unveils ambitious, pricey energy bill very least, he says, such a requirement ought to apply to utilities as well.

As to the assertions regarding its past stances toward ComEd, he says: “Certainly, there’s no truth to that.”

Referring to federal litigation demanding ratepayer restitution in the bribery scandal, he says: “We’re in a class-action right now, suing them.”

ON THE CLOCK

Springfield now has just over a month, with its spring session ending May 31, to agree on a measure that arguably would be the state’s most audacious among the many sprawling energy laws it’s enacted over the past 25 years. Is there enough time?

Mitchell says yes. “We think we’ve put out a pretty good roadmap.”

Exelon says the subsidies Pritzker proposed won’t keep Dresden and Byron from closing in the fall. In an email, the company says, “While we appreciate the governor’s effort to secure Illinois’ leadership on clean energy, the proposal falls well short of what is needed to address the climate crisis and will place an unnecessary financial burden on consumers and the economy.

Its fatal flaw is that it won’t save Illinois’ nuclear plants, which

DHAHI ALSEEDI/UNSPLASH

charging stations.

Pritzker proposes a host of ethics reforms meant to respond to governor’s auditor.

Likewise, consumer groups may the bribery scandal that engulfed ComEd last year when it admitted balk at the costs to ratepayers.

The bill includes many provi- in an agreement with federal prossions aimed at shielding low-in- ecutors to a nearly decadelong come households from those scheme to influence then-Speakhigher costs. Most prominent er Michael Madigan by furnishing among them is a call for “tiered” no-work contracts to his friends electricity rates, in which those and allies.

They include an end to recovery below 80 percent of the median income level for the area would from ratepayers of charitable conpay less for power than everyone tributions by utilities and bribelse. Those above that threshold, ery-linked restitution to ComEd however, would pay higher rates ratepayers to be determined by to make up the difference for the the ICC. An unusual reform target in the utilities.

That’s likely to exacerbate the governor’s bill is the Citizens Utilhigher costs middle– and up- ity Board, for decades the most per-income households already prominent consumer advocate in the state on utility issues. The measure THOSE BELOW 80 PERCENT OF THE would subject CUB to the Freedom of LOCAL MEDIAN INCOME WOULD PAY Information Act and would bar the orLESS THAN EVERYONE ELSE. ganization from accepting grants from would be paying for the measure’s foundations seeded with utility money. CUB has been accused of various initiatives.

A separate section seeks to dra- being less critical of ComEd, the matically expand electric vehi- original source of some of that cle adoption in the state, with a grant money in the past, than goal of 1 million cars and trucks other utilities.

Regarding the FOIA provision, on the road by 2030. It includes $4,000 rebates to purchasers of CUB Executive Director David Koelectric vehicles and financial in- lata says: “It’s a little weird. We’re centives for the construction of not a government agency.” At the ENERGY from Page 2

will take the state decades backward in the fight against climate change, result in higher electricity prices and the loss of tens of thousands of jobs.”

The union coalition, which calls itself Climate Jobs Illinois, also is a thumbs down. It says the bill falls short in requiring union labor to be used on more renewable projects. It also wants more ratepayer money funneled to Exelon. The measure does “not (do) enough to preserve the nuclear fleet,” the group says in a statement.

A coalition made up of consumer advocates Illinois PIRG and AARP Illinois, as well as green group Environmental Law & Policy Center, cheer the Pritzker bill’s measures to rein in ComEd and other utilities. “While utilities report record profits, their rate-making schemes have continued to take an immeasurable toll on their customers—especially those on fixed incomes— who are now millions of dollars behind on their bills,” AARP Illinois Director Bob Gallo says in a release.

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4/30/21 3:37 PM

8 MAY 3, 2021 • CRAIN’S CHICAGO BUSINESS

CPS sees bigger potential for broadband New fiber-optic network could bring neighborhoods online

hen Chicago Public Schools students return to the classroom in the fall, some will notice their computers and phones are running much faster.

CPS is undergoing a massive broadband overhaul, with new fiber-optic cables connecting its 638 schools. Crews are digging up streets on the South and West sides to run new fiber this summer, and the school district expects 81 schools will be connected by October.

CPS was just embarking on the $84 million project when COVID hit, closing schools and sending administrators scrambling to set up remote learning for 341,000 students. Now the school district wonders if it might use the new network that connects its schools to provide internet access to students and others in surrounding communities who don’t have broadband connections at home.

If CPS and the city can pull off a broadband expansion, it would go a long way toward addressing the digital divide that contributes to economic inequality among Chicago’s neighborhoods. The Census Bureau estimates about 13 percent of Chicago residents don’t have a high-speed internet connection and 7 percent have no online access at all.

“The internet is an equalizer,” says Jennie Bennett, the city’s chief financial officer.

“Not only is it a way to access learning, it’s got applications related to workforce development and job training, staying civically

PHOTOS BY JOHN R. BOEHM

W

BY JOHN PLETZ

Workers from Jules Madison install conduit for fiber-optic cable in Gage Park as part of a broadband upgrade underway at Chicago Public Schools.

“WE NEED TO START THINKING ABOUT THE LIVING ROOM AS AN EXTENSION OF THE CLASSROOM.” Phil DiBartolo, chief information officer, CPS

engaged and being able to stay connected to family members. There are just so many reasons why internet access is important.”

Traditionally, state and federal regulations have kept government from competing with private companies to provide telecommunications services to homes or businesses. But President Joe Biden is opening the door to that possibility in his $100 billion broadband infrastructure plan. COVID-19, meanwhile, opened CPS officials’ eyes to the potential of the new network.

“It’s expanded the way we look at what we can do with the increased capacity.

When we were looking at increasing capacity pre-COVID, we didn’t look at that as a scaffold to push into neighborhoods close to the school,” says Phil DiBartolo, chief information officer for CPS. “These are things that were not top of mind 12 to 18 months ago. COVID has really pushed us to think beyond the walls of the school. . . .We need to start thinking about the living room as an extension of the classroom.”

The city and CPS already have taken steps to provide broadband access to the 100,000 Chicago families estimated to lack adequate internet connections. More than 60,000 families have signed up so far. Donors led by hedge-fund mogul Ken Griffin, the Crown family, Illinois Tool Works and the Pritzker Traubert Foundation created Chicago Connected, raising $50 million to pay for broadband access from conven-

P008_CCB_20210503.indd 8

tional providers over the next four years.

“As part of that initiative, we talked about a Phase 2 where we would try to expand accessibility not just to CPS students but to Chicagoans more broadly,” Bennett says.

“The network that’s being built by Chicago Public Schools is an asset that could be very helpful to us. There are over 600 schools geographically dispersed across the city.

We are, in essence, creating a network which can help to provide internet accessibility more broadly. What that looks like, however, is still a work in progress.”

FEDERAL SUPPORT

The White House has proposed spending $100 billion on broadband as part of a $2 trillion infrastructure plan, which “prioritizes support for broadband networks owned, operated by or affiliated with local governments, nonprofits and co-operatives—providers with less pressure to turn profits and with a commitment to serving entire communities.” The plan includes “lifting barriers that prevent municipally-owned or affiliated providers and rural electric co-ops from competing on an even playing field with private providers.”

Bennett says the city has talked with telecommunications providers, such as Comcast, RCN and T-Mobile, which are participating in Chicago Connected.

“They’re a part of the solution,” she says. “We’ve had a lot of conversations with them. We’re not looking to replace what exists.”

Comcast declined to comment.

The technology upgrade already underway at CPS is a dramatic leap forward from slow, spotty coverage that often leaves users frustrated. The schools will get connections of 20 gigabits per second, which is 40 times faster than what elementary schools currently have and 20 times faster than high schools receive.

Houston-based Netsync Network Solutions is laying about 2 million feet—350 miles—of conduit to connect the schools with fiber-optic cable. About 1 million feet will be complete by October, says Michael Underdown, who is overseeing the threeyear project.

CPS will lease the fiber from Netsync.

Currently, the district purchases service from AT&T. Federal and state sources are covering $80 million of the $84 million,

largely using the E-Rate program, which is primarily funded through a surcharge on phone service.

The beefed-up fiber will help CPS make good on its planned digital evolution of the classroom, which ultimately will include providing a computer or tablet to each student. The use of video inside and outside the classroom, which moved to the forefront during COVID, has increased the technology requirements.

“Prior to COVID we only had to be concerned with assessments, online instructional tools and general internet browsing,” says Ed Wagner, deputy chief of information and technology services at CPS. “Now we have overlay videoconferencing and additional resources.”

The pandemic also has forced schools to consider the technology needs of students outside the classroom.

“When you beef up technology in the school, you have to pay attention to inequality of access to technology at home,” says Kathleen Sheridan, an associate professor of educational psychology at the University of Illinois at Chicago. “You can’t beef up one without the other.”

4/30/21 3:37 PM

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10 MAY 3, 2021 • CRAIN’S CHICAGO BUSINESS

In

EDITORIAL

A disappointing about-face on ‘fair maps’

ou didn’t dream it. J.B. Pritzker, in his winning bid for the governorship in 2018, really did campaign on the idea of drawing the state’s next legislative map via an independent commission. This central plank of his candidacy promised a refreshing change from Illinois’ time-honored practice, in which a roomful of pooh-bahs from the dominant party in Springfield drafted the maps—a tradition that amounted to elected officials getting to pick their voters, rather than the other way around.

Now, as governor, and with the required census data in hand to begin the decennial mapping process, Pritzker is pointing us to the fine print. If you squint and look hard, you’ll see that he’s doing what he said he would do. Really. Look a little closer. You see, he said he would veto any unfair map, remember? And see right there, under the asterisk? That’s where he said he wanted to see an amendment to the state constitution to create an independent commission to draw those maps. See? The type is tiny, but it’s there.

And since a constitutional amendment didn’t happen—darn the luck—it looks like we’re just going to have to do those maps the old-fashioned way after all. It’s now up to the Legislature to craft a proposal for redistricting. But the governor is still going to be absolutely, positively sure that, at the end of the process, the new map is fair. Honest.

This flimflammery is the sort of thing we’d expect from an unscrupulous usedcar salesman selling us the undercoating

Of course, Pritzker has lots of company.

Republicans used to draw biased Illinois maps, and they still do in other states. The entire issue cries out for a national standard. But, in the meantime, the governor can and should fulfill the spirit if not the letter of his promise to Illinois voters. Despite the attempts to obfuscate the issue, there’s actually nothing that bars Pritzker or his counterparts in the General Assembly from passing and signing a bill to establish an

Gov. J.B. Pritzker

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we didn’t want, not a governor who billed himself as a change-maker in Springfield.

We’re now left to wonder what “fair” will really mean when the next inevitably jury-rigged map lands on Pritzker’s desk.

And make no mistake: Redistricting isn’t an arcane matter. These maps determine every Illinoisan’s representation in government, turning up the volume on some voic-

es while diminishing others. And as Crain’s contributing columnist Madeleine Doubek put it: “Gerrymandering fuels political polarization as lawmakers with safe seats worry only about primary challengers and pleasing their political patrons. It steals our voices and our choices at the ballot box as fewer people run when they know the game is rigged.”

independent, nonpartisan public commission to draw the next map, constitutional amendment or no.

With this unfortunate switcheroo, the governor left himself open to broadsides from the opposition, including this one, which is on point: “The people of Illinois fundamentally do not trust our leadership in Springfield to spend their money wisely, do the right thing or to reform our system. Absolutely nothing fuels that fire more than politicians who say one thing to get elected and then do another once in power,” Illinois Republican Party Chairman Don Tracy said in a press statement. “A man is nothing without his word. Pritzker still has the chance to keep his.”

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YOUR VIEW

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The missing element of the vaccine rollout

These statistics and attitudes s COVID-19 vaccinations are particularly troubling given continue to roll out across the estimate by Dr. Anthony Fauthe U.S., interest in the ci, the federal government’s advaccine is now becoming shorter visor on COVID-19, that around supply than the vials of vaccines.

70 to 75 percent of Americans Among a significant portion of will need to get vaccinated in Americans, the willingness to be order to reach herd immunity to vaccinated is also missing—and put an end to the pandemic. it will take a concerted marketUnfortunately, marketing and ing effort to make a difference. social media campaigns have been Recent polls by Gallup reveal Tim Calkins is a missing throughout COVID-19, that about two-thirds of Ameri- clinical professor and they’re greatly needed. Mescans say they are willing to take of marketing at saging around wearing a mask, an FDA-approved vaccine if one Northwestern the need for social distancing and were available at no cost. While University’s many health care workers and Kellogg School of other preventative measures have fallen on public health officials first responders have been among Management. who are resource constrained and those first offered the vaccine, they too are expressing some unwillingness. balancing priorities. Health care executives In a Franklin Templeton-Gallup Economics also find their efforts constrained but for difof Recovery Study, 49 percent of these front- ferent reasons: Their marketing efforts are line workers said they would agree to be vac- highly regulated.

Meanwhile, the anti-vaccination commucinated, while 34 percent said they would nity has been spreading its message, particnot—18 percent were undecided.

Even attitudes vary among the 65 per- ularly on social media. Further, anti-vaxxers cent of people who say they will get vacci- tend to be much more outspoken and vocal nated. While some will line up for hours to compared to the pro-vaccine community.

To convince people to roll up their receive a dose, others are open to vaccination but are unwilling to go out of their way sleeves, a sweeping marketing and social media campaign must be put in place, inor tolerate much inconvenience.

volving celebrities and other influencers, church and community leaders and companies motivated to take on social causes.

Business executives should take the lead; they have the marketing muscle and reach for key audiences. They also have the incentive; for many companies, business will only rebound when the pandemic has faded. There are a few initial efforts. For example, Honeywell has partnered with businesses in North Carolina to accelerate vaccine rollout. Anheuser-Busch has forgone all advertising during Super Bowl LV and donated the money to vaccine awareness. Still, much more needs to be done.

To roll out pro-vaccination campaigns, much of the effort will fall to celebrities and influencers, as well as the business community. High-profile people who are willing to post pictures of themselves getting vaccinated will likely be more convincing to people who are resistant to vaccines than merely providing information from a clinical study. If people are skeptical about vaccines, the results of a clinical trial from a pharma company probably won’t do much to change minds.

Messages need to be targeted especially to groups that are less likely to get vaccinated.

Analysis of data from 14 states shows Black

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_20210503.indd 10

and Latino Americans are getting vaccinated at significantly lower rates than white Americans, CNN reported. According to Gallup, non-white adults have said they are less likely than white adults to seek vaccination.

About 83 percent of Democrats surveyed said they would be vaccinated, compared to less than 50 percent of Republicans.

In a recent Biotech & Healthcare Case Competition hosted virtually at Northwestern University’s Kellogg School of Management, MBA students from 16 schools submitted plans on how business leaders can increase vaccine rates in a world filled with vaccine hesitancy. Some of the ideas that emerged included engaging military leaders and well-respected veterans to lead by example on getting vaccinated, which might appeal especially to Republicans. A social media campaign focused on the benefits of getting vaccinations up could offset some of the negative messages circulated by anti-vaxxers.

Messages that emphasize personal benefits will likely have the biggest impact. One example is telling people that only way to have a safe gathering with their loved ones is to get vaccinated. It will take motivation and marketing muscle, but it’s the only way to make it happen.

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.

4/30/21 3:36 PM

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CRAIN’S CHICAGO BUSINESS • MAY 3, 2021 11

LETTER TO THE EDITOR

Infrastructure calls for business approach

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here are probably few people in America who don’t think some investment in our physical infrastructure is long overdue. Biden is proposing a $2 trillion-plus infrastructure plan that includes these things and more. Republicans are proposing $568 billion in physical infrastructure.

With 30-plus years as a financial manager for businesses, the first questions I asked myself are: What needs to be done, and how much will it cost?

Our government leaders should pause and take the common-sense business approach of compiling a list of projects, assigning estimated costs and prioritizing them, then go to a few civil engineers and construction companies for bids so that each state, county and city could submit a list with projected costs and priorities. There should be bipartisan agreement to imme-

diately authorize a certain dollar amount per capita.

Let’s end this inane process of throwing out a number to vote on without first compiling this list and then letting the politicians vote on how far down this list to fund.

I realize this last comment leads to a potentially long conversation about which specific projects get done.

Outside of an impartial commission to decide which are the most urgent projects or have the biggest ROI, I don’t know how we escape that. To the extent that the economic benefit of an investment is ultimately what will drive politicians of both parties to vote yes, all communities should get some economic benefit.

LARRY LEVY Founder, president and CFO CFO Options

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Chief executive officer KC Crain Group publisher/executive editor Jim Kirk

Associate publisher Kate Van Etten *** Editor Ann Dwyer Creative director Thomas J. Linden Assistant managing editor Jan Parr Assistant managing editor/ Joe Cahill columnist

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4/30/21 3:58 PM

12 MAY 3, 2021 • CRAIN’S CHICAGO BUSINESS

Google’s local headquarters hits the market

Google’s main office in Fulton Market is expected to fetch bids of up to $360 million.

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Two downtown listings will test investor appetite for properties in the face of record vacancy but with many companies planning to return to offices later this year

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BY DANNY ECKER

cy and questions remain about how much workspace companies will need after a year in which many have operated with remote workers.

Google’s Fulton Market building, known as 1k Fulton, is 99 percent leased, according to real estate information company CoStar Group. Google has dominated the building since it moved there in 2015, a relocation from River North that helped set off the transformation of Fulton Market from meatpacking district to trendy hotbed of corporate offices and upscale restaurants and hotels.

Google’s Midwest headquarters building in the Fulton Market District and the property that houses USG’s West Loop main office have gone up for sale, signs that landlords are expecting commercial property sales to pick up soon as the COVID-19 pandemic wanes.

In one of the largest downtown office offerings since the start of the crisis, Los Angeles-based American Realty Advisors is looking to cash out on the 527,000-square-foot office building at 1000 W. Fulton Market, according to industry newsletter Real Estate Alert.

BIG-FISH TENANTS The 10-story building, best Sterling Bay originally lured known as Google’s main Chicago Google to 1k Fulton, which the office, is expected to fetch bids Chicago developer transformed up to $360 million, according to into offices from the former Fulthe newsletter, a price that would ton Market Cold Storage facility. net a hefty return against the $304 The search giant leases million ARA paid for the property 387,000 square feet on a deal in 2016, according to Cook Coun- that expires in 2028, according ty property records. to Real Estate Alert, which reIn the West Loop, German in- ported that a sale at $360 milvestor GLL Real Estate has hired lion—or $683 per square foot— the Chicago office of Jones Lang would generate a first-year LaSalle to sell the 18-story office return, or capitalization rate, of building at 550 W. Adams St., 4.5 percent for a buyer. according to a marketing flyer.

The Chicago office of Eastdil The 485,000-squarefoot property could trade for close to THE OFFERINGS SIGNAL A POSSIBLE $225 million, accord- END TO THE DROUGHT OF MAJOR ing to Real Estate Alert, which first re- DOWNTOWN OFFICE BUILDINGS ported the building was for sale. Like the CHANGING HANDS AFTER COVID-19.

Fulton Market property, a sale at that price would Secured is marketing the proptower over the $185 million erty for sale. A spokesman for that GLL paid in 2015 for the ARA couldn’t be reached. headquarters of gypsum manuOn Adams Street, Munich, facturer USG, property records Germany-based GLL is looking show. to unload a 15-year-old building that is 93 percent leased, led by a USG with nearly 221,000 square TESTING THE MARKET The offerings signal a possi- feet it has signed through Sepble end to the drought of ma- tember 2031, according to the jor downtown office buildings JLL flyer. USG was acquired in changing hands after COVID-19 2019 by German building matevirtually froze the market over rials giant Knauf.

Other tenants at 550 W. Adthe past year. Chicago-area office sales fell by 29 percent in ams include Humana and credit 2020 compared with 2019, ac- reporting agency TransUnion, cording to Real Capital Analyt- the latter of whom expanded its ics, with the most prominent space in the building and comactivity coming from buildings mitted through October 2027, with single tenants and long- according to JLL. GLL financed its 2015 acquiterm lease commitments such as the Fulton Market headquar- sition with a $92.5 million loan, ters of McDonald’s and Monde- property records show. It subsequently added a fitness cenlez International.

ARA and GLL will test investor ter, tenant lounge and bar to appetite for multi-tenant office the building’s second floor. A properties as downtown land- GLL spokesman did not provide lords face record-high vacan- a comment.

4/30/21 3:39 PM

CRAIN’S CHICAGO BUSINESS • MAY 3, 2021 13

SPONSORED CONTENT

CRAIN’S EVENT RECAP

COVID Crisis: CFOs Weigh In What follows is a sponsored recap of an event moderated by Crain’s Chicago Business Group Publisher and Executive Editor, Jim Kirk.

has been a huge catalyst for speedy and permanent change.

I

Vehicle fleet manager Wheels.com found a more efficient way to deploy employees.

Early on, the company decided not to lay anyone off. Instead, employees were moved to different functions as needed. Since the business has some seasonality, the approach will be used going forward to streamline operations. “We responded to changes in the environment,” said Shlomo Crandus, CFO at Wheels.com.

n the face of a global pandemic, CFOs have been at the center of the fight to manage the fiscal health of their companies. The challenge has required quick decision-making and a lot of flexibility amid a very uncertain situation.

To get their insights, Crain’s Chicago Business recently hosted local CFOs at a virtual salon—a thought-provoking discussion on the new financial realities.

The discussion was led by Crain’s Publisher and Executive Editor Jim Kirk. The event was sponsored by Bank of America.

Three Global Commercial Banking division market executives of Bank of America also joined the discussion: John Compernolle, Megan Collins, and Renee Metcalf.

Putting the discussion in context, Bank of America’s Compernolle noted that businesses are redeploying funds to reduce debt and invest in capital expenditures (CapEx), especially for digital transformations. “Companies are using the situation as an opportunity to manage their balance sheets more efficiently,” he said.

Risk assessment was a top priority early on, according to the CFOs. Budgets were recast. The uncertainty led to roller-coaster style decision making. Flexibility was key to keeping things running.

CapEx Goes Digital The pandemic flipped the digital switch. As more commerce moved online, companies continued to make CapEx investments in digital solutions. Almost overnight, it became a business imperative. “We saw an accelerated adoption of digital banking as clients moved to a work from home posture, realizing the importance of being able to conduct business safely anywhere, anytime,” said Bank of America’s Metcalf. “Technology is an expense, but it drives long-term cost savings.”

Prior to the onset of the pandemic, salvage vehicle seller IAA had been planning to go all digital for its auctions by the second quarter of 2020. The plan wasn’t shelved because of the pandemic but was expedited, and the switch was accomplished by April 2020. “We continued our strategy,” said Vance Johnston, executive vice president and CFO at IAA. An investment in technology at Kuvare, a middle market insurance and reinsurance platform, led to a 75 percent growth in sales

COMPANIES ARE USING THE SITUATION AS AN OPPORTUNITY TO MANAGE THEIR BALANCE SHEETS MORE EFFICIENTLY. -John Compernolle, Bank of America

Peerless Network, a global telecom provider, saw a huge surge in business when the pandemic hit. A potential breakdown of the telephony network was avoided by collaborating with competitors. “We had to continually reinvent our plans,” said Lisa Neimark, CFO at Peerless Network.

in 2020. The company picked up about 25 percent in market share. The pandemic showed that technology was needed to sell insurance without face-to-face meetings.

“We’re not going to hold back on CapEx,” said Kuvare CFO Erik Braun. “Technology is where it’s all going.”

At manufacturer Elkay, a “war room” of top executives focused on cash preservation, collections and payables. “We modeled out doomsday scenarios,” said Bryan English, Elkay’s CFO. Though the company luckily never faced a worst-case situation, the exercise proved beneficial as a better way to manage cash going forward.

The CFOs agreed that the pandemic

Wheels.com continued to invest in technology, including mobile apps. The company is also running electric vehicle pilots with clients and stringing together a network to service and charge electric vehicles across the country. Crandus thinks the new initiative took off fast because the staff wasn’t in the office focused on more traditional corporate efforts.

P013_CCB_2020503.indd 13

As online commerce increased, Paris Presents, a producer and distributor of beauty products, invested in its digital platform. The company aimed to grab a share of the growth in online sales from big brick-and-mortar retailers like Walmart and Target.

The CFOs invested in technology to streamline internal processes too. Remote work led to new approaches.

The IT environment at Marathon Capital, an investment bank to global energy markets, was designed for workers to be in the office.

The pandemic raised a lot of questions about how the staff should use technology to interact with each other and clients. “We never would have known we needed to ask these questions 18 months ago,” said Marathon CFO Sean Farnan.

This salon discussion included the following attendees: John Compernolle, Market Executive, Bank of America Megan Collins, Market Executive, Bank of America Renee Metcalf, Market Executive, Bank of America Bryan English, CFO, Elkay Vance Johnston, EVP & CFO, IAA, Inc. Erik Braun, CFO, Kuvare Sean Farnan, CFO, Marathon Capital Marie Fiore, CFO, Paris Presents

Collins commented that supply chain disruption has been a big challenge for many clients, leading to a heightened focus on supply chain finance and ways to address potential inventory redundancy.

Product shortages and delayed shipments required creative approaches. “We’ve had to rethink our supply chain,” said Marie Fiore, CFO at Paris Presents. The company sources a lot of product from China which created supply issues at first. Fiore emphasized the importance of having an adequate amount of working capital and inventory to manage through the bumps.

Elkay is also stocking up on inventory to meet future demand in Europe and Asia.

A goal is to integrate the company’s global supply chain.

Bank of America’s Metcalf wrapped up the discussion with a lightning round of lessons learned.

The CFOs’ advice: Stay the course; It’s okay to pivot mid-flight; Don’t let perfection be the enemy of progress; The CFO’s role is not only to protect the business and shareholders, but also employees.

Lisa Neimark, CFO, Peerless Network Shlomo Crandus, CFO, Wheels.com

“Bank of America” and “BofA Securities” are the marketing names used by the Global Banking and Global Markets divisions of Bank of America Corporation. Lending, other commercial banking activities, and trading in certain financial instruments are performed globally by banking affiliates of Bank of America Corporation, including Bank of America, N.A., Member FDIC. Trading in securities and financial instruments, and strategic advisory, and other investment banking activities, are performed globally by investment banking affiliates of Bank of America Corporation (“Investment Banking Affiliates”), including, in the United States, BofA Securities, Inc. and Merrill Lynch Professional Clearing Corp., both of which are registered broker-dealers and Members of SIPC, and, in other jurisdictions, by locally registered entities. BofA Securities, Inc. and Merrill Lynch Professional Clearing Corp. are registered as futures commission merchants with the CFTC and are members of the NFA. Investment products: Are Not FDIC Insured | Are Not Bank Guaranteed | May Lose Value | © 2021 Bank of America Corporation. All right reserved.

Metcalf concluded: “This is a human health crisis that has put the focus on people.”

4/26/21 10:08 AM

ARCHITECTURE / DESIGN

FGM Architects, Chicago Jan Behounek, AIA was named Director of Higher Education.

Jan joined FGMA as a Principal in 2019 and has worked primarily on higher education projects throughout her career.

She is working on projects for Northwestern University, Dominican University, Wheaton College, Northern Illinois and Waubonsee Community College.

Past clients include University of Chicago, Grinnell College, Central College and the Public Building Commission of Chicago.

She is a Board Member of the Chicago Building Congress.

ARCHITECTURE / DESIGN

FGM Architects, Chicago Scott Nall, PE has been named Director of FGMA’s Federal Practice. Scott joined FGMA as a Principal in 2019 & brings a wealth of experience to this leadership role. He served 27+ years in the U.S. Air National Guard eventually rising to the rank of colonel. Scott is leading our Federal practice by obtaining increased opportunities and work in the Design/Build arena as well as other contract vehicles. “FGMA has a long and well-respected reputation in the Federal market sector” said Scott.

ARCHITECTURE / DESIGN

FitzGerald, Chicago FitzGerald is pleased to announce that Kathy Graham has been made an equity partner of FitzGerald.

As FitzGerald’s COO, she provides firm-wide leadership and orchestrates FitzGerald’s resources in pursuit of exceptional project quality, mentorship and growth opportunities for staff, optimal return on corporate investment, and the utmost service to the firm’s clients. Kathy becomes the first non-architect, and the first woman, to become an equity partner in the firm’s 102-year history.

Advertising Section

PEOPLE ON THE MOVE

Haymarket Center, Chicago

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

ARCHITECTURE / ENGINEERING

CONSTRUCTION

LAW

Epstein, Chicago

Northern Builders, Inc., Schiller Park

Ropes & Gray LLP, Chicago

Rosemarie Andolino has been appointed as the newest member of Epstein’s board of directors.

Ms. Andolino’s distinguished 24-year career in public service includes serving as the commissioner of the Chicago Department of Aviation and the $8 billion O’Hare Modernization Program.

During that time, she was a leader in sustainability for both vertical and horizontal design and construction. Rosie was also noted for the creation of the Airports Going Green Industry Conference.

Northern Builders, Inc. is pleased to announce the hiring of Kevin J. McDonough as Project Manager. In his role, Kevin is responsible for the comprehensive McDonough oversight of all construction matters including subcontractor coordination, quality control, and client relations. Kevin brings over ten years of experience in Berko commercial construction to Northern’s team.

Northern Builders, Inc. is also pleased to announce the hiring of Pavlo (Paul) Berko as Project Manager. In his role, Paul is responsible for managing all phases of construction while ensuring each project meets Northern’s high standards of quality and performance. With over 20 years in the industry, Paul brings a wide array of experience and capabilities from his construction background.

Global law firm Ropes & Gray is pleased to announce that asset management partner Paulita Pike has been named managing partner of the firm’s 130-person Chicago office. Crain’s Chicago Business twice named Paulita one of “Chicago’s Notable Women Lawyers.” Several prestigious legal directories also rank Paulita as one of the nation’s top lawyers. Commitment to the community is a hallmark of Ropes & Gray, and Paulita makes a deep civic contribution to Chicago and its surrounding communities.

BANKING / FINANCE

Wintrust Multinational Commercial Banking, Chicago Wintrust is pleased to add Christoph Schneider as senior vice president of Wintrust Multinational Commercial Banking.

In this role, Christoph will focus on developing commercial relationships with corporations whose beneficial ownership is outside the U.S. in the greater Chicago area as well as other geographic markets. With over 30 years of international banking experience, Christoph is a native German speaker and has had long term assignments in Germany, Hong Kong, Japan and the U.S.

FINANCIAL SERVICES

Artisan Advisors, Barrington Artisan Advisors, a financial consulting firm specializing in strategic, support and risk management for community banks, is pleased to announce that banking industry veteran, Thomas P. FitzGibbon, Jr., has joined the firm as a managing director. With more than 45 years of experience in community banking, he will focus on business development and provide strategic counsel in critical practice areas including compliance, consumer and commercial policy development and oversight and controls.

LAW

Morgante Wilson Architects, Evanston Morgante Wilson Architects congratulates Alicia Chlebek Blakely on her recent promotion to associate of architecture. Blakely will continue her focus on single-family residential design, and will take on new responsibilities promoting sustainable design and planning internal professional development seminars. An eight-year veteran of the firm, Blakely is a graduate of Illinois Institute of Technology with a bachelor’s degree in architecture and is active in Chicago Women in Architecture.

LAW

Applegate & Thorne-Thomsen, Chicago Applegate & ThorneThomsen is pleased to announce the election of Debbie Kleban as managing partner, effective January 1, 2021. Kleban succeeds former managing partner Ben Applegate in overseeing strategy and operations for the firm, which focuses on real estate finance and other work in the affordable housing and community development sectors. She also will continue to lead the firm’s New Markets Tax Credit practice group.

REAL ESTATE

Proper Title, LLC, Chicago

William T. “Toby” Eveland has been named managing partner of Saul Ewing Arnstein & Lehr’s Chicago office. In his litigation practice, Toby focuses on tort and class action defense, and complex business disputes. He works across numerous industries, including higher education, municipal and government, finance, and insurance. He is also dedicated to causes that advance equality and has led the firm’s Diversity, Equity, & Inclusion Committee nationally.

Proper Title, LLC, one of Illinois’ largest title insurance agencies, is growing its commercial title services team with the hiring of Michael J. Stump as assistant vice president of commercial business development. Stump was recently the top sales representative at First American Title, where he grew market share in his territory by 150% in a three-year period. He will play a key role in growing Proper Title’s customer base and revenue in closing commercial real estate transactions.

MARKETING

MERGE, Chicago MERGE, a full-service storytelling and technology agency, announces the addition of Nick Jones as Chief Client Officer and Executive Committee Member. In his role, Jones will bring clients commercial solutions that merge storytelling and technology to drive traffic and transactions. As an industry veteran and globally recognized leader, Jones brings more than 25 years of experience building brands through crosschannel marketing.

UG2, Chicago UG2, a national facility services and solutions provider, is pleased to announce the appointment of Steve Alletag as Executive Director. Steve is a respected and well-known industry veteran with more than 40 years of experience in facility operations. He’s held regional executive leadership positions with some of the nation’s largest facility services providers. Steve will have senior operational oversight of UG2’s accounts in the Midwest as well as support business development activities.

Haymarket Center welcomes Daniel Nudelman to the Board of Directors.

Daniel is an Associate General Counsel at Facebook, Inc. As a Nudelman member of the Board, Daniel will help to grow our presence and be an advocate for equitable access to treatment and recovery services.

John T. “Jack” McCarthy has joined McCarthy Haymarket Center’s Board of Directors. A retired private practice attorney, Jack concentrated his practice in corporate and securities law matters. With Haymarket Center, Jack will help to provide guidance on strategic growth to ensure access to substance use and mental health treatment.

Saul Ewing Arnstein & Lehr, Chicago

BUSINESS SERVICES ARCHITECTURE / DESIGN

NON-PROFIT

MARKETING

Popular Pays, Chicago Popular Pays, the leading platform for agile advertising, is excited to welcome Sierra Hinson as their first Chief Financial Officer to steer the organization through a period of growth and expansion. Sierra is a forward-thinking digital media and marketing veteran who brings over a decade of experience leading Business Operations, making her an invaluable addition to the growing Popular Pays team.

TECHNOLOGY SERVICES

Meridian Group International, Deerfield Meridian Group International, a leading global information technology services and equipment leasing company, announced the appointment of Charulata (Charu) Shah as the company’s Executive Vice President, General Counsel, and Board Secretary. Charu will serve as Meridian’s legal representative and will advise senior management and board members on the laws and risks that impact business operations.

She will focus on compliance, partnership agreements, corporate governance, managing the organization’s intellectual property portfolio, leading Diversity, Inclusive, and Equity initiatives, and overseeing outside counsel.

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

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16 MAY 3, 2021 • CRAIN’S CHICAGO BUSINESS

Investors to turn Pheasant Run into industrial park

BY DANNY ECKER A shuttered golf course next to DuPage Airport is teed up to become a big industrial project after being sold to a developer looking to cash in on surging demand for warehouse space.

A venture of Bartlett-based Greco/DeRosa Investment Group paid nearly $11.3 million for the 86-acre Pheasant Run Golf Course in west suburban St. Charles, according to Greco/ DeRosa Principal Ron DeRosa, whose group is planning to redevelop the site with an industrial park as large as 1.5 million square feet.

The roughly $90 million project would add to a rush of new industrial development in the Chicago area as the COVID-19 pandemic fuels demand for warehouse

merce giant Amazon and a bevy of other companies to lease millions of square feet at big local industrial properties.

DeRosa, whose firm owns about 3 million square feet of industrial properties and is completing a two-building, 800,000-squarefoot warehouse development just south of DuPage Airport that it is fully leased, says Pheasant Run was well-suited to be converted into an industrial park given its size and the booming demand for such space.

“It’s a very active market,” he says.

PLANS IN MOTION

The firm’s site plan for the property near the intersection of state Route 64 and Kautz Road shows six industrial buildings ranging in size from 50,000 to 450,000 square feet immediately south of the former “OUR GOAL IS TO TRY TO REPLACE Pheasant Run Resort property, which GreSOME OF THE LOST SALES TAX co/DeRosa is also under contract to (ST. CHARLES) HAD.” purchase and plans Ron DeRosa, Greco/DeRosa Investment Group to convert into retail uses, DeRosa says. space from retailers and logisThe developer still needs to tics companies. A surge in online win approval from the city of St. shopping over the past year boost- Charles to redevelop the course, ed the need for space to store and and DeRosa says his firm plans to distribute goods, pushing e-com- apply for a zoning change for the

O’DONNELL COMMERCIAL REAL ESTATE

The former golf course wasn’t an obvious pick, ‘but with COVID, industrial is on fire,’ says one broker of the deal

Greco/DeRosa Investment Group paid nearly $11.3 million for the 86-acre Pheasant Run Golf Course in west suburban St. Charles. golf course in the next three weeks.

DeRosa says city officials have been “very helpful” in the effort to redevelop the site. “This was the gateway to St. Charles when it was in existence. Our goal is to try to replace some of the lost sales tax the village had.”

Greco/DeRosa bought the course from the DuPage Airport Authority, which took control of the property in 2017 after another developer was mulling a plan to turn the land into a residential development that would have restricted flight times, according to Colliers International Vice President Anne Dempsey, one of several brokers involved in the sale to Greco/DeRosa.

The Pheasant Run Resort, which opened in the early 1960s, was leased back to a management firm that operated the ven-

ue and golf course until it closed in March 2019. Dempsey says the course initially wasn’t an obvious candidate for warehouse development, “but with COVID, industrial is on fire,” she says.

“They’ll fill (the project) in two seconds.”

The Chicago-area industrial vacancy rate was 6.68 percent in the first quarter, just slightly higher than a historic low 6.15 percent in 2019, according to Colliers. The brokerage reported developers completed 15 industrial buildings totaling 8.6 million square feet in the Chicago area during the first three months of 2021, and another 42 buildings totaling 24.2 million square feet were under construction as of the end of March.

Pheasant Run was one of several suburban golf courses up for

sale and poised for redevelopment in recent years as golf participation has dropped.

The 290-acre Silver Lake Country Club near Orland Square Mall hit the market earlier this year and is being marketed as a potential residential redevelopment as demand for suburban housing has skyrocketed during the pandemic.

The 190-acre Big Run Golf Club has been up for sale since 2019 with a master plan for 515 residential units pre-approved by the City of Lockport.

Brokers from O’Donnell Commercial Real Estate teamed with Colliers to represent the DuPage Airport Authority in the sale of Pheasant Run. Jeff Fischer of NAI Hiffman represented Greco/ DeRosa.

Illinois moves to lure cryptocurrency businesses A bill sailing through the Legislature would establish rules of the road for new companies safeguarding bitcoin and other currencies like it on behalf of investors Illinois is rolling out the welcome mat for cryptocurrency investors and the firms that serve them.

Springfield is on the verge of clearing legislation that would establish a new state trust charter for companies that hold bitcoin and other cryptocurrencies on behalf of investors. Gov. J.B. Pritzker is expected to sign it.

The bill, which passed the House unanimously on April 21, would make Illinois one of just a very few states to establish and regulate cryptocurrency deposit holders. Sponsors hope the initiative spawns a new industry creating jobs in a part of the tech world that’s growing rapidly.

Interest in bitcoin has grown from what many in the financial-services field deemed a puz-

P016_CCB_20210503.indd 16

zling and dubious curiosity into an investment class in which tens of billions trade daily in the U.S. “We’re not scared of crypto and blockchain,” says freshman state Rep. Margaret Croke, D-Chicago, the bill’s chief sponsor. “We’re going to create a stable regulatory structure.”

In an interview, she likens the initiative to similar efforts to allow banks to service marijuana businesses. “This is giving a legal business a way to operate,” she says.

The bill would give the Illinois Department of Financial and Professional Regulation the authority to establish rules for companies seeking the new special purpose trust charter. The assets wouldn’t be insured like bank deposits are, but firms holding cryptocurrencies on behalf of clients would be required to have a substantial amount of U.S. dollars backing up

the digital currencies.

Very few states have set up such structures so far. One of the few is Wyoming, home to Kraken Bank, one of the first in the nation specializing in safekeeping of cryptocurrencies.

WEI LENG TAY/BLOOMBERG

BY STEVE DANIELS

FUTURE BIG BUSINESS

The hope is that Illinois, a far larger state with a multifaceted financial-services industry, will prove more alluring to companies getting into the business.

The legislation also would allow state-chartered banks to set up similar businesses of their own.

And, in a twist, the new cryptocurrency custodians enabled by the bill would be permitted to team up with conventional banks in order to allow clients to pledge their cryptocurrencies as collateral in obtaining loans.

Proponents say that while cryp-

Interest in bitcoin has grown greatly from what many deemed a puzzling and dubious curiosity. tocurrency isn’t likely to emerge as a substantial business in the near term, it could in the future as it continues to gain credibility and perhaps more stability.

Local banks have expressed interest in serving this market, says Chasse Rehwinkel, the state’s acting banking director. Assuming the bill becomes law, he hopes to have

rules issued later this year, paving the way for companies to apply beginning next year.

The measure also explicitly allows for the new cryptocurrency custodians to apply for full-fledged bank charters. Croke isn’t sure how much interest there will be in doing that, but she says she wanted to signal the state’s openness to it.

4/30/21 3:41 PM

CRAIN’S CHICAGO BUSINESS • MAY 3, 2021 17

2021

WOMEN IN CONSTRUCTION AND DESIGN These 65 professionals demonstrate that construction and design is far less of an exclusively male domain than it used to be. The women featured here lead in all corners of the field, including design, site selection, project management and administration, with specialties in landscaping, office buildings, senior and student housing, health care and data centers. Firms represented range from specialized architecture practices and subcontractors to the largest general contractors. Some are on the cutting edge of green design, winning Leadership in Energy & Environmental Design, or LEED, certifica-

tions for sustainable buildings in their use of energy, water and materials.

Early in the pandemic, many pivoted to develop safety protocols so that work could continue on-site and projects could be completed. These Notables champion women in their fields, mentoring colleagues so they can advance to leadership positions. Many participate in structured programs aimed to engage the next generation of women in the possibilities of designing distribution centers, renovating historic buildings and building senior housing.

By Judith Crown and Lisa Bertagnoli

GETTY IMAGES

METHODOLOGY: The honorees did not pay to be included. Their profiles were drawn from the nomination materials submitted. This list is not comprehensive. It includes only individuals for whom nominations were submitted and accepted after a review by editors. To qualify for the list, an honoree must be employed in a construction, architecture, engineering or commercial design firm, have worked on significant projects during the past 18 months and have striven to advance women in the field.

STEPHANIE ADAMCZYK

AMA ADDAI

MARY BRUSH

KATIE CANINO

ABBIE CLARY

Project executive, senior living Ryan Cos. US

Director, site development and utilities Ardmore Roderick

Owner, principal, architect Brush Architects

President Canino Electric

Director, global health practice Cannon Design

Architect Mary Brush specializes in historic preservation. Her firm led the restoration of the Federal Plaza Post Office, Kluczynski and Dirksen Federal buildings, Legler Library and National Public Housing Museum.

The pandemic slowed work and payment, but the practice maintained its core staff and recently added a new architect.

Brush says she is the first architect and woman in Chicago to perform exterior facade inspections in Chicago and recently rappelled down the facades of the Dirksen and Kluczynski buildings. In 2016, she was elevated into the College of Fellows for the American Institute of Architects. Brush mentors young architects through the AIA Chicago Bridge program. She presents frequently at conferences and lectures at Illinois universities.

Katie Canino’s electrical contracting firm has worked in the construction of testing and vaccination distribution sites capable of preserving vaccine dosages at their requisite temperatures. Last year, the Westmont company supported the University of Chicago Medical Center in converting space for COVID patients. For City Winery, the contractor installed air purifiers and UV lighting, which enabled the venue to operate under pandemic safety guidelines. Canino started the business in 1988 out of her home with her husband, an electrician. It’s grown to a workforce of 40 electricians with revenues ranging from $5 million to $15 million. Other clients have included University of Illinois Hospital, College of DuPage and Willis Tower. Katie Canino is an executive committee member of the Electrical Contractors Association of City of Chicago.

At Cannon Design, Abbie Clary supports the growth and development of the firm’s global health care practice. She’s responsible for overseeing more than $2.5 billion in health care projects over her career.

Clary and her team have led health projects across the country, including work with Kaiser Permanente, Rush, UIC and other health systems.

She seeks projects that can influence pressing challenges, such as helping people regain abilities after traumatic injuries.

Clary joined Cannon Design in 2018 from the design firm HDR, where she was vice president and director for health. Clary has authored articles on the future of health for publications including Healthcare Design and Chicago Hospital and has presented at industry conferences. She founded Women’s Networking Dinners for working professional women in the health care industry.

As a project executive in Ryan’s Senior Living sector based in Westmont, Stephanie Adamczyk leads teams of architects and other professionals through design, construction and warranty. Her portfolio is focused around the Clarendale senior living communities.

In the past 18 months, she completed $40 million of construction and broke ground on three of the largest Clarendale communities. Adamczyk is managing preconstruction on four additional communities, and her portfolio under warranty is approximately $175 million.

Adamczyk was a member of Ryan Companies’ Emerging Leaders Group, which recommended the company establish an innovation department headed by a vice president.

She joined Ryan Companies as a project manager in 2015 and in 2017 collaborated with a colleague to create design standards that are used for all Clarendale projects.

P017-P030_CCB-20210503.indd 17

At engineering firm Ardmore Roderick, Ama Addai is responsible for the development and management of 25 designers, engineers and technicians as well as projects related to public site improvements and utility coordination.

As a technical expert, Addai is responsible for updating documentation for the Illinois Toll Highway Authority. She’s coordinating between the Chicago Transit Authority and its engineering consultant on utility relocations for the Red Line Extension Program. Addai has led teams involved in electric and gas distribution design, subsurface utility engineering, underground utility location and survey and land development.

She also developed what has become an eight-person design office in Pennsylvania. Addai advocates for women in construction and design through her involvement in the Chicago chapters of Women’s Energy Network and Women’s Transportation Seminar International.

4/29/21 3:37 PM

18 MAY 3, 2021 • CRAIN’S CHICAGO BUSINESS

SHEYLA CONFORTE

MARGARET COOK

MARY COOK

SHANNON COOMES

STEPHANIE COTEY

Principal and executive director of interior design Solomon Cordwell Buenz

President Painters USA

President and founder Mary Cook Associates

President Hill Fire Protection

Director of special projects W.E. O’Neil Construction

Margaret “Meg” Cook is owner and president of the certified woman-owned business in Glendale Heights that provides commercial and industrial painting, flooring and other services.

The company has revenue of more than $30 million with a workforce of 167. When the pandemic hit last year, work at an automotive facility was curtailed.

Cook redeployed workers from the closed facility to Walmart stores in the South, which were receiving painting and coating. The company added paid online training to keep employees working and ready to go when other customers opened up. The company has a roster of blue-chip clients including 3M, American Airlines, Cargill, Exxon Mobil and Kraft Heinz.

Cook works with the Fox Valley Habitat for Humanity Women Build program to raise awareness for women in trades.

Mary Cook’s firm provides interior architecture and design services to builders and developers. Projects include model homes, leasing and sales galleries, amenity spaces and community clubhouses.

The company completed 51 projects last year and has more than 60 projects underway in 14 states. Local projects include five model units at Tribune Tower Residences and model units at 8000 North in Skokie. Clients include homebuilders M/I Homes, Lennar and Toll Brothers. Cook is the author of “The Art of Space,” a textbook used in design schools. She’s a champion of advancing women in design; the firm’s staff of more than 30 designers, architects and professionals comprises mostly women, including the CFO. Cook shares her knowledge of for-sale communities, rental, student and senior housing on real estate panels.

Under Shannon Coomes’ leadership, Hill Fire Protection in Franklin Park has grown to $30 million from $3.5 million in under 10 years. It’s the second-largest sprinkler contractor in the Chicago area. Coomes’ team has sold, designed and executed work at Salesforce Tower, Walgreens’ headquarters at the Old Post Office, Rush University Medical Center and Northwestern Memorial Hospital.

She was a project manager and later became branch manager at Northstar Fire Protection. When she left in 2010 to join Hill she started as the general manager and was promoted to president in 2014.

She has presented at Purdue University building construction management classes and has spoken at National Association of Women in Construction events.

Coomes is on the board of Girls in the Game.

At W.E. O’Neil Construction, Stephanie Cotey oversees the Special Projects Group, which focuses on small-scale construction and renovations delivered on condensed schedules.

She manages around 12 employees and serves as a project executive for many of the jobs within this group. With the construction industry hard hit by the pandemic and many projects halted, Cotey’s team found new projects to replace lost revenues. Cotey was previously a project engineer, superintendent and project manager at W.E. O’Neil. During her her master’s program, she traveled to several countries to learn from leaders in construction—from bamboo scaffolding in China to the massive excavation effort at the Panama Canal.

Cotey leads the company’s mentor program for high school students in which they are guided through a design and construction project.

As executive director of interior design, Sheyla Conforte leads teams in Chicago, San Francisco, Boston and Seattle. She’s been with the architecture and design firm for her entire 16-year career and became the youngest partner in the firm’s history after only eight years.

In the past 18 months Conforte redesigned the 120,000-squarefeet of headquarters for the law firm Hinshaw and Culbertson. She oversaw the design of the Mondelez International headquarters in the West Loop and the new United Polaris Club at O’Hare International Airport. She also led design for a new headquarters office for law firm Michael Best & Friedrich in Milwaukee. Conforte is a member of the International Interior Design Association, the American Society of Interior Designers and the Young Presidents’ Organization Chicago chapter.

The road to success is always under construction.

T W E N T Y- F I V E Y E A R S

-- Lily Tomlin American actress, comedian, writer

Congratulations to the Crain’s 2021 Notable Women in Construction and Design.

Thank you for paving the road to success, despite detours, orange cones, or rough patches. Your unique achievements, ideas, and hard work make the built environment safer, more beautiful, and more equitable for all. You make the building industry proud.

LCM Architects salutes our colleague and 2021 Crain’s honoree Kate Gonzalez. Our inspiring female leaders truly elevate LCM’s practice.

LCM Architects commemorates 25 years as a full-service practice blending skill sets in architecture, design, and accessibility.

We serve owners and the professional community, building new and renovated spaces of enduring quality that reflect the imagination of our clients.

Devotion to eliminating limitations for people with disabilities puts the firm at the forefront of accessibility and inclusive design consulting.

Central to our core values is that the built environment should adapt to people, not the other way around. www.lcmarchitects.com

P017-P030_CCB-20210503.indd 18

4/29/21 3:37 PM

CONGRATULATIONS KATIE AND KENDRA

Katie T. Canino

Canino Electric Company

Kendra D. Dinkins

Taylor Electric Company

Congratulations to Powering Chicago members Katie Canino of Canino Electric Company and Kendra Dinkins of Taylor Electric Company for their recognition in this year’s Crain’s Notable Women in Construction & Design awards.

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20 MAY 3, 2021 • CRAIN’S CHICAGO BUSINESS

BETHANY CRISPIN

NORA DEGNAN

KENDRA DINKINS

STACIE DOVALOVSKY

RADA DOYTCHEVA

Senior vice president, residential business unit Clayco

Vice president Thorne Associates

President and CEO Taylor Electric

Principal and head of design Rada Architects

At specialty subcontractor Thorne Associates, Nora Degnan estimates and runs projects. As a member of the owning family, she represents the company and industry on the local and national level.

Early in the pandemic, she developed protocols for how to safely continue construction projects.

Thorne Associates specializes in commercial buildings, with clients in health care and data centers. The company currently is managing drywall, carpentry and plaster work at the 52-story tower under construction at 320 S. Canal St. Degnan is chair of the Construction Leadership Council steering committee of Chicagoland Associated General Contractors. She’s also active in the Chicago chapter of the National Association of Women in Construction and plans the group’s annual Women in Construction Week program. This year, it was a five-day virtual program.

As president of the family-owned company, Kendra Dinkins oversees operations including new business development and project management.

Taylor Electric recently completed the Chicago Fire Department’s new Engine Co. 115, the second-largest station in the city.

Other customers include Soldier Field, Guaranteed Rate Field, the University of Chicago and Navy Pier. Dinkins began at Taylor Electric as a bookkeeper in 2007 and over time assumed more roles. With the transition to the fourth generation of ownership in 2015, Dinkins was elevated to CEO. Dinkins is president of the Federation of Women Contractors. She’s a charter member and immediate past president of the nonprofit Black Contractors Owners and Executives. Dinkins also is a charter member of the National Electrical Contractors’ Association’s Diversity, Equity and Inclusion Task Force.

Vice president, transportation division manager Primera Engineers

Bethany Crispin has 22 years of experience in senior living, residential, mixed-use and hospitality projects on the owner and contractor side. She joined Clayco last year from CA Ventures, where was executive vice president, construction and development, senior living.

Previously, she oversaw construction of Anthology of King of Prussia, a senior-living building outside Philadelphia.

The facility included 192 units of independent living, assisted living and memory care. Since joining Clayco, she’s been involved in the preconstruction of a 17-story student living tower in South Carolina, a 12-story building in Reno, Nev., and a 27-story apartment building in Minneapolis. Crispin is on the board of Margaret’s Village, a nonprofit that provides transitional housing. She recently discussed her career in engineering and construction at her high school, Mother McAuley.

At Primera Engineers, Stacie Dovalovsky oversees a 45-person division that includes the civil, roadway, structural, aviation and construction engineering departments. In addition to leading and mentoring her team, she’s responsible for executive management, strategic planning, building and maintaining client relationships, and project management at the woman-owned engineering design and consulting firm. Dovalovsky joined Primera earlier this year from Clark Dietz, where she most recently was area manager.

Working for the village of Richton Park, she ensured infrastructure projects remained on schedule and helped secure a $1.5 million grant. Dovalovsky is active in the American Council of Engineering Companies Illinois chapter and has been nominated for the board.

She’s mentored students through WTS-Chicago, an organization focused on promoting the development and advancement of women in transportation.

Rada Doytcheva is founding principal of the architecture firm that focuses on city schools, colleges, health care, commercial and workplace design. With $3 million in annual revenue, the firm employs a staff of 16.

In the past 18 months, Dotycheva started designs on the pedestrian bridge over the Eisenhower Expressway at the Illinois Medical District. Doytcheva also is designing field houses for the Chicago Park District.

Her previous clients include the University of Chicago, UIC and Chicago Public Schools. Before founding her architecture firm in 1994, Doytcheva was associate principal at Loebl Schlossman & Hackl. She’s an active member of Chicago Women in Architecture and presented at the group’s January forum.

Doytcheva also has spoken at American Institute of Architects conventions on empowering women in the field.

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A good time to train as an electrician Kendra Dinkins leads family-owned electrical contractor Taylor Electric, which will hit the century mark next year. The company is certified as a Minority Business Enterprise and Women’s Business Enterprise. It specializes in multi-unit residential buildings, schools and churches but also provides maintenance at highprofile venues including Soldier Field, Guaranteed Rate Field and Navy Pier.

Taylor Electric also maintains traffic signals for Cook County and the Illinois Department of Transportation. Dinkins began her career at the company as a bookkeeper in 2007 and was named president and CEO in 2015.

CRAIN’S: How did the pandemic affect your ongoing work?

DINKINS: We experienced brief shutdowns in the beginning of the pandemic. Thankfully, Gov. Pritzker declared construction essential, so we raced to make our job sites safe for our employees and returned to work quickly. While we have been fortunate to not have a huge revenue drop due to COVID-19, we along with other contractors have seen margins get tighter. Capturing the extra costs of doing business during a pandemic (job shutdowns, extra PPE, cleaning costs) is essential.

P017-P030_CCB-20210503.indd 21

Is there a shortage of electricians?

With the billions of dollars of work still in play (the O’Hare 21 project, multiple hospital expansions and the Obama Presidential Center), the construction industry has been experiencing a shortage of labor. Mix that with early retirees during the pandemic and a potential infrastructure bill to be approved, we are looking at more shortages to come.

Are women coming into the field?

There’s always been a wide gap. Even with recruiting, you’re recruiting them into a (male-dominated) culture that doesn’t treat them the same way. You lose a few along the way during the training period. Union benefits don’t include maternity leave.

How do you hire and train?

Taylor Electric is a union shop; we depend on the expert training provided by IBEW NECA Technical Institute.

Becoming an electrician is a rewarding career, with many owners and management teams consisting of former electricians. Our apprentices are given five years of paid on-the-job and classroom training. By the time they graduate the apprenticeship program they will have steady work, earning up to six figures with no college debt. You

can’t beat that. For anyone interested in becoming a skilled trade specialist, now is the time!

Have your MBE and WBE certifications proved advantageous?

Yes, our certifications have granted us lots of exposure with larger contractors and more high-profile jobs.

How are you affected by the caps on revenue for minority contractors?

The size standard for our category is $16.5 million (averaged over three years).

At the rate we’re growing, we’ll graduate in three to five years. Once we lose our certification, we become a little less attractive. We’re trying our best to prepare.

4/29/21 3:37 PM

22 MAY 3, 2021 • CRAIN’S CHICAGO BUSINESS

LISA ELKINS

DARCIE FANKHAUSER

MELISSA GIBSON

DULCINEA GILLMAN

KATE GONZALEZ

D

Managing partner and architect On Point Design Build

Regional partner Transwestern Development

Managing member, partner North Arrow Partners

Associate principal LCM Architects

Se Th

Lisa Elkins leads operations of On Point Design Build, which specializes in design and construction of dental and medical offices. Over the past 18 months, the firm completed an expansion of A New You plastic surgery center to a second location, as well as several women-owned dental startups including a pediatric practice. With women representing more than half of dental graduates last year, many prefer to work with a woman-led architecture team, Elkins says. She launched the company in 2019, which has grown to a staff of nine. Earlier, she founded an architectural practice, 2 Point Perspective, specializing in sustainable designs for commercial and residential clients. Elkins earlier taught architectural design at the University of Illinois at Chicago. She’s a regular speaker at the Women’s Business Development Center.

Earlier this year, Darcie Fankhauser became regional partner for Transwestern Development’s national Logistics Group, where she leads Midwest development efforts and operations. She’s responsible for site selection, entitlement, construction, leasing and disposition of ground-up developments. In nearly six years, Fankhauser has overseen speculative and buildto-suit industrial projects. In the past 18 months, Fankhauser was instrumental in executing a build-to-suit deal in Bartlett’s Brewster Creek Business Park for a Fortune 10 company, which leased the entire space.

Fankhauser and her team also executed the purchase of 30 separate parcels within a single residential assemblage to develop a new spec industrial property in the O’Hare submarket.

She’s a member of the Chicago chapter of commercial real estate development association organization NAIOP and is on its National Forum.

Senior associate, director of specifications Goettsch Partners

Dulcinea Gillman is managing member of the Villa Park design and build firm that specializes in multi-family developments in Illinois and the Midwest.

The firm works with municipalities, developers, housing authorities and nonprofits. Recent projects include Flax Meadow Townhomes with 32 affordable townhomes for families in Highland and Altamont Senior Residences with 36 affordable senior apartments in Altamont. Gillman is skilled in identifying underserved areas for new affordable and special needs housing. She was CEO of architecture firm #9 Design and La Mancha Construction, both started in 1999, which were combined as North Arrow in 2018. Gillman says her most rewarding project was the development of permanent supportive housing for persons with disabilities on the site of a former Hardee’s where she had worked as a teenager.

At LCM Architects, Kate Gonzalez develops accessibility programs for businesses seeking help complying with the Americans with Disabilities Act. In the past 18 months, Gonzalez managed assessment and remediation programs for Hilton hotels, a top-10 U.S. bank and a large retailer. As many clients have multiple sites, from 10 to more than 10,000, that must comply with ADA regulations, Gonzalez develops and manages programs to assess sizable multiproperty portfolios, identify accessibility barriers and propose solutions.

She joined LCM in 2010 as accessibility specialist from the Chicago Mayor’s Office for People with Disabilities.

D cl in co

At architectural and planning firm Goettsch Partners, Melissa Gibson manages the production and coordination of project construction specifications, plays an integral role in quality assurance and control processes and is active in construction administration. Recent projects include the $35 million renovation of Kovler Lion House at Lincoln Park Zoo and the 52-story office tower under way at 320 S. Canal St. Gibson joined Goettsch Partners in 2019 from Epstein Architecture, Engineering & Construction, where she was specifications writer and associate vice president. Gibson has participated in more than a dozen technical programs as a presenter, moderator and panelist and is directing research to reduce the carbon footprint of buildings. She is on the board of the Chicago Chapter of Construction Specifications Institute and is chair of programming.

Hines congratulates

Cori Linnell

on being selected as one of Crain’s 2021 Notable Women in Construction & Design

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CRAIN’S CHICAGO BUSINESS • MAY 3, 2021 23

DEANNA GOODMAN

KAREN GUTEKANST

STEPHANIE HICKMAN

PEGGY HOFFMANN

MANISHA KAUL

Senior project manager The Walsh Group

Executive managing director, risk management and administration Clune Construction

President and CEO Trice Construction

Vice president, design principal FGM Architects

Principal Design Workshop

Stephanie Hickman leveraged her family’s 40-year legacy in construction when she acquired the company in 2007. She has transformed Trice from a small company to a middle-market utility infrastructure and commercial concrete contractor serving Fortune 500 corporations, top 100 general and infrastructure contractors and public entities. Trice is the first African American woman-owned construction firm awarded prime contracts for ComEd, Ameren, Peoples Gas, Nicor Gas and the Chicago Department of Transportation. Recent projects include Chicago Fire Department Engine Co. 115 in West Pullman, where Trice handled cast-in-place concrete and teamed on the design-build, and the Pullman National Monument. Before acquiring her family’s company, Hickman had a 25-year career as a labor attorney, utility executive and lobbyist. She is on the Museum of Science & Industry board.

At FGM Architects in Oak Brook, Peggy Hoffmann leads interior design for the PK-12 educational practice, focusing on new construction, renovation and additions for schools throughout Illinois. Hoffmann was lead interior designer for the new Sherlock Elementary School in Cicero that was recognized by the Illinois Association of School Boards.

Other recent projects include renovation of elementary and middle schools in Glenview and the Student Resource Center

Manisha Kaul, a specialist in landscape architecture, is responsible for business development and project leadership at Design Workshop’s Chicago studio. During the pandemic, Kaul continued to oversee bids for construction for the Chicago Park District’s AIDS Garden, Diversey Play Fields and Natural Area and Wheaton Downtown Streetscape. She also has led projects in downstate Alton and in Sterling Heights, Mich.

Kaul joined Design Workshop in 2018 from Biome Landscape Studio, where she was principal landscape architect and implemented resilient landscape projects for educational institutions in Africa. Manisha’s career of more than 20 years includes projects in the United States, Middle East, Africa and India.

She’s a member of Urban Land Institute and is on ULI’s University Development & Innovation Product Council.

Deanna Goodman manages clients from major health care institutions. Last year, she completed a new, $26 million Emergency Department at Rush Oak Park Hospital. She helped create a game plan of negative-pressure rooms to care for COVID-19 patients. Goodman also managed the McCormick Place Alternate Care Facility’s first phase of 500 patient beds, 14 nurse stations and other amenities. Goodman joined Walsh as an intern and has been with the company for 22 years. Major projects include the McCormick Place Office Building and the Millennium Park garage. In health care, she’s overseen projects at Loyola University Medical Center and Adventist La Grange. As vice chair of the Walsh diversity and inclusion committee, she’s organized awareness initiatives, created an inclusivity guide, formed employee resource groups and improved the maternity leave policy.

At Clune Construction, Karen Gutekanst oversees administrative functions for Clune’s six offices and 600 staff members including risk management, human resources and payroll. She’s a member of the executive management committee. When the pandemic began, Gutekanst worked with the office and risk management teams to develop job site and work-from-home protocols. She included COVID-19 testing in the company’s health insurance offerings. Gutekanst became the

first female partner in 2012 and last year was promoted to be the first woman executive managing director. She’s been instrumental in establishing Clune’s benefits package, which provides medical insurance at no cost to employees, and an employee stock ownership plan.

at Oak Park River Forest High School. She presents frequently at EDspaces, an annual gathering of industry experts and educators as well as at Illinois conferences for educators. She has been published in numerous journals, most recently in a publication of the Illinois Association of School Business Officials. She’s a past president of the International Interior Design Association.

Congratulations!

FGMA Notable Women in Construction & Design

We Build Community.

Our projects touch all aspects of life: learning, working, playing, protecting, and worshipping.

With over 75 years of architectural excellence in community-based

Peggy Hoffmann

Carol Stolt

IIDA, LEED AP, REFP

ALLIED ASID, WELL AP

Design Principal

Design Principal

design, FGM Architects is proud to shape the landscapes of life.

Chicago • St. Louis • Austin • Milwaukee fgmarchitects.com

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24 MAY 3, 2021 • CRAIN’S CHICAGO BUSINESS

HELEN J. KESSLER

SUSAN KIRBY

JACKIE KOO

LINDA KOZLOSKI

KARRIE KRATZ

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President HJKessler Associates

Managing member/CFO Associated Electrical Contractors

Principal Koo LLC

Creative design director Lendlease

Vice president Gilbane Building

Architect Helen J. Kessler specializes in sustainable design with a focus on universities and Chicago Public Schools. Since leading on the creation Chicago’s first energy code and helping start the local chapter of the U.S. Green Building Council, she has worked on significant green projects. Recently, Kessler has consulted for Northwestern University’s first LEED Platinum projects, the Kellogg Global Hub and Kresge Centennial Hall. Kessler is completing sustainability consulting on the Rubenstein Forum at the University of Chicago and providing peer review for the Obama Presidential Center. She’s also consulted for nonprofits LEED Platinum Jewish Reconstructionist Congregation in Evanston and the Legacy Charter School in North Lawndale.

Kessler is a mentor through the AIA Chicago Bridge program and serves on the board of the Chicago Women in Architecture Foundation.

In 2015, controller Susan Kirby became a co-owner of the 25-year-old electrical contractor, along with two partners. She has been with the Woodstock company since 2001.

Current projects include several large distribution centers in Illinois and Wisconsin, supermarkets, school campuses and auto dealers. The company has grown to revenue of $35 million with year-round staff of 60, with more during peak periods. The challenge during the pandemic, Kirby says, is having enough people to do the job and meet quality expectations.

The company is using Microsoft Teams software and technology training for field personnel to improve performance and profitability, with the goal of making AEC a preferred vendor for large distribution centers.

Kirby serves on the board of the McHenry County College Education to Empowerment Scholarship Program.

As founding principal of Koo LLC, Jackie Koo oversees the architecture firm’s design and construction activities in new construction, adaptive reuse and historic renovations.

Current projects include the Sable Hotel at Navy Pier, the first hotel at the Pier, the Altgeld Family Resource Center at Altgeld Gardens on the Far South Side and Surge Esports Stadium, an immersive video venue in Bronzeville. Koo also handled the adaptive reuse of the former Cook County Hospital with two hotels and a food court. Koo established her practice in 2005: Her first project was the Wit hotel in the Loop, which opened in 2009. Koo is involved in the Invest South/West streetscape program, the future UIC Center for the Arts and the Discovery Partners Institute innovation center to anchor Related Midwest’s development, the 78.

At the multinational construction and infrastructure company, Linda Kozloski manages the design process for Chicago projects and supports Lendlease’s national development pipeline. Kozloski helped deliver Porte, a 586-residence building in the West Loop, and is involved in Cirrus, a 350-unit condominium tower; Cascade, an adjacent 503-unit apartment tower; and The Reed, a 440-unit residential tower that will break ground this spring. As a champion of environmentally conscious design, Kozloski has incorporated green rooftop farms with beehives and other eco-friendly initiatives into several of Lendlease’s urban regeneration projects.

She joined Lendlease in 2015 from CBRE, where she was senior project manager. Kozloski has contributed to industry panels including the AIASpire Student Leadership Panel and the Chicago Committee on High Rise Buildings, The Future of the Chicago Skyline.

Karrie Kratz leads Gilbane’s Chicago office, overseeing strategic planning and managing profit and loss for the local portfolio. Kratz oversaw the construction of the Orchard Condominiums in Lincoln Park. She also helped advance the Illinois Tech Student Housing Development and Revitalization project. As both projects were scheduled to finish near the beginning of the pandemic, Kratz worked with project teams to adapt to the new safety protocols so on-site work could continue.

Gilbane retrofitted alternative care facilities on three sites to care for COVID-19 patients.

Kratz promotes inclusion by hosting Hire360 courses and offers trade partners opportunities to broaden their skills in the Gilbane Rising Contractors Program. She supports the next generation through her 10year involvement with the ACE Mentorship Program, where she serves on the board.

Pr so ES

NOTABLE WOMEN IN CONSTRUCTION & DESIGN Sheyla Conforte IIDA, NCIDQ, LEED AP

On behalf of Michael Best, we congratulate Sheyla Conforte, Principal & Executive Director of Interior Design at Solomon Cordwell Buenz. Sheyla’s leadership, expertise & artistry set her apart from other designers.

We applaud Sheyla & all of the 2021 Notable Women in Construction & Design award recipients!

Michael Best & Friedrich LLP

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JULIE LARDENOIT

LACEY LAWRENCE

VICKY LEE

CHHENG LIM

CORI LINNELL

Practice leader, workplace solutions ESD

Senior associate Hitchcock Design Group

Vice president, development Focus

Vice president-construction Hines

Landscape architect Lacey Lawrence serves as lead designer, project manager and environmental specialist for the Hitchcock Design Group Chicago-area office based in Naperville.

Lawrence’s team focuses on public park planning and design throughout the Midwest. She’s lead designer for the Garfield Park Conservatory Children’s Garden for the Chicago Park District, which is under construction this year. Lawrence also manages work for the Batavia Park District and the city of Lake Forest. She recently designed and managed construction for the Wauconda Park District’s Phil’s Beach, which was featured in the 1980 movie “The Blues Brothers.”

Before joining Hitchcock in 2016, Lawrence was a landscape architect and environmental scientist at Wills Burke Kelsey Associates.

She has assisted in preparing presentations for conferences hosted by the Illinois Parks & Recreation Association and Illinois Association of Park Districts.

Vicky Lee leads the real estate acquisition, development and architectural-design activities on multiple projects (total development value $200 million-plus) for both Focus and third-party clients. Recent accomplishments include helping to secure two major mall redevelopment projects (Hawthorn Mall in Vernon Hills and Fox Valley Mall in Aurora) for Focus, with all ownership and municipal meetings done virtually due to the pandemic. She also led the development and sale of Atworth at Mellody Farm in Vernon Hills, which was leased in just 10 months. Prior to Focus, Lee was a project manager at Torti Gallas & Partners.

She participates in various thought-leadership forums, including the ULI Real Estate Forum at DePaul University and the “Adventures in CRE” podcast. Lee mentors women through Focus’ MORE program.

Associate Sheehan Nagle Hartray Architects

Julie Lardenoit has worked in each market vertical at ESD (Environmental Systems Design): commercial interiors, mission-critical facilities and high-performance buildings. She now leads the workplace solutions team. The global consulting-engineering firm had sales of nearly $87 million last year with a workforce of 300. Over the past year, Lardenoit’s series of articles, videos and podcasts provided timely information on how to stay safe in the COVID-19 era. Lardenoit opened and led ESD’s first international office in Abu Dhabi for almost a decade, where she participated in the 2018 Women’s Heritage Walk, a five-day desert trek. Lardenoit has been active with ESD’s women’s group, ESD NEW, and co-founded the Women of Willis, an organization to promote women in leadership and provide mentoring opportunities within the Willis Tower building.

Chheng Lim is an associate and senior architect at Sheehan Nagle Hartray Architects with control over corporate revenue, profit/ loss and staff development.

Responsibilities include design, planning commission, regulatory approvals and building construction at the 147-employee firm. She has overseen 7 million square feet of projects for clients with an aggregate construction cost of $7 billion and 350 megawatts of power capacity. Her data center projects support the internet and cloud infrastructure. Before joining SNHA seven years ago, she worked as a designer at Skidmore Owings & Merrill and at Gensler; she also spent time in Singapore with Ong & Ong Architects. Inside SNHA, she encourages women to lead in design, client presentations and on-site construction to gain the visibility that advances careers.

Cori Linnell leads project design, budgeting, scheduling, bidding, contracting, procurement and construction closeout for a number of Houston-based Hines’ complex construction projects.

Currently, she’s handling the interior construction for Salesforce Tower Chicago, a 1.2 millionsquare-foot high-rise on the Chicago River’s Wolf Point site.

Another notable recent project is the Orchard, Hines Midwest’s

first condominium project (32 luxury residences) and the final building constructed as part of Lincoln Common. Linnell joined Hines as an assistant construction manager on the Renaissance Center (GM global headquarters) in Detroit. She is the co-lead ambassador for the Chicago OneHines Women’s Network, which supports an inclusive culture.

The McShane Companies congratulates all of the 2021 Crain’s Notable Women in Construction and Design.

• First Female CEO in Company History • NAIOP Chicago’s First Female President • Crain’s Notable Women in Commercial Real Estate

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26 MAY 3, 2021 • CRAIN’S CHICAGO BUSINESS

CHRISTINE LUSSOW

JAIME MAGALIFF

Project executive Bear Construction

Principal Steep Architecture

Christine Lussow oversees the direction, financial outcome and quality of Bear’s construction projects. She was an integral team member on the $11 million restoration of the grand lobby at the Old Post Office. She also worked on the Macy’s Building redevelopment, overseeing the eight-floor Spec Suite and Corridor project for Brookfield Properties. Working as an architect, a general contractor and as an owner’s rep during a 32-year career, Lussow designed hundreds of workplaces, assisted with the renovations of dozens of Fortune 500 firms and aided in the purchase and sale of large blocks of corporate real estate for EQ Office. Prior to joining Bear Construction, she was with GE Capital Real Estate/Arden Real Estate.

Jaime Magaliff’s recent efforts have focused on retail spaces for high-security industries, designing marijuana dispensaries for Viola brands in Michigan and Missouri and Dispensary 33 in Chicago—the only dispensary in Illinois to display cannabis. She also has expertise in smaller-scale residential projects, recently designing an accessory dwelling unit in Chicago. Prior to founding Evanston-based Steep, Magaliff worked as a project architect at Eastlake Studio and as an architect and project manager at Perimeter Architects & Construction. Before relocating to Chicago, she worked in New York City at OMA*NY and Studio MAPOS. She is a mentor to young women in interior design and architecture, preparing and reviewing their portfolios, and also acting as an NCARB supervisor and NCIDQ sponsor.

SHERINA MAYE EDWARDS CEO Intren As CEO of Union-based Intren, Sherina Maye Edwards manages the strategic direction, human resources, marketing, operations and financial performance of the nation’s largest Women’s Business Enterprise utility contractor.

Before joining Intren, she was a partner at Quarles & Brady law firm and spent five years on the Illinois Commerce Commission. In 2016, Edwards was appointed by President Barack Obama as co-chair of the U.S. Department of Transportation’s Voluntary Information-Sharing System Working Group. She founded both the Women’s Energy Summit and Women’s Energy Network of Chicago. She is second vice president on the board of directors of Girl Scouts of Greater Chicago & Northwest Indiana. She is on the executive compensation committee of SouthWest Water in Houston.

AMY MAYER

MICHELLE MCCLENDON

M

Vice president, construction Related Midwest

Project executive Gilbane Building

C M

Amy Mayer handles preconstruction and cost management across Related Midwest’s portfolio of mixed-use, mixed-income, affordable and luxury developments.

She is also the general manager of Quality First, the company’s union carpentry division. A notable recent project is One Bennett Park, Chicago’s first Robert A.M. Stern Architects-designed highrise. Other key projects include Landmark West Loop, 500 Lake Shore Drive, the Residences on Lake Shore Park, Park Tower, the Town of Fort Sheridan and the Mayfair. Mayer has mentored a construction team that is 50 percent women, and she is working toward Chicago Women in Trades’ goal of staffing 20 percent women on all construction jobs—twice the industry average. She was elected to Geneva’s city council in April 2021.

As project executive leading the K-12 and public-sector markets for Providence, R.I.-based Gilbane Building, Michelle McClendon is responsible for management and administration from award through occupancy.

A 17-year construction veteran who joined Gilbane in 2020, she has a portfolio that includes corporate headquarters, high-end and multifamily residences, schools and public-use facilities. She is a LEED-accredited professional for interior design and construction and recently joined the board of directors of the Illinois Green Alliance. She has served as an adjunct instructor at Westwood College and National American University, teaching computer applications, business management, construction management and green building. To promote the next generation of leaders in STEM, she and her sister co-founded the Myesha & Michelle McClendon Scholarship Fund for African American women.

M o gi C

Notable? Yes. Inspirational? Absolutely!

Congratulations and thank you Shannon Coomes, President of Hill Fire Protection, for your inspirational leadership and guidance every day.

Congratulations to all the 2021 honorees!

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MOLLY MCSHANE

JOY MEEK

MOLLY MEYER

ELISSA MORGANTE

KERRY NUTTER

CEO McShane Cos.

Principal Wheeler Kearns Architects

Founder and CEO Omni Ecosystems

Molly McShane manages the overall operations and strategic direction of the McShane Cos., which achieved its highest revenue to date ($1.6 billion) in 2020 and was one of Crain’s “Best Places to Work” for the third year in a row. She started out as a project engineer before transitioning to the development side, eventually becoming chief investment officer in 2014, helping to guide 25 developments totaling 11 million square feet.

Joy Meek is principal and project architect at Wheeler Kearns Architects. A 23-year veteran of the firm, she also leads its inclusive hiring process, which now boasts 50 percent women, and oversees professional liability insurance and computer technology development. Key recent projects include the Ryan Learning Center at the Art Institute of Chicago, the Night Ministry in Chicago, the West Suburban Community Pantry in Woodridge and the Snowmass Retreat in Colorado. She’s an adjunct lecturer in architecture engineering and design at Northwestern University’s department of civil and environmental engineering. Since 2001, she’s served as a mentor for the Illinois Math & Science Academy’s Student Inquiry & Research Program, working with high school students interested in the field of architecture.

Molly Meyer founded and leads a 35-employee company that designs, constructs and maintains sustainable, working landscapes.

Recently Omni was included on the team designing the satellite concourses for the Global Terminal at O’Hare International Airport, built the green roof and terraces at 800 Fulton and completed its headquarters in Bronzeville. Past projects include the O’Hare Terminal 2 concourses, McDonald’s headquarters in Chicago, Harvard Business School’s McCollum/ MacArthur Hall and the Fifth Third Bank Tower in Cincinnati. Meyer’s previous positions include co-founder of the Roof Crop in Chicago, green roof product manager at Conservation Technology in Baltimore and fellow with Robert Bosch Fellowship in Germany. She was named 2020 Illinois Small Businessperson of the Year by the U.S. Small Business Administration.

Co-founding partner and principal Morgante Wilson Architects

Founder and president Program Management & Controls Services Consulting

With expertise in architecture, interior design and custom-furniture design, Elissa Morgante leads her Evanston-based company on projects ranging from private residences and vacation homes to multifamily, hospitality and commercial interiors. In 2020, Morgante completed (on schedule, despite pandemic shutdowns) the design and installation of interiors at Westerly, Fifield’s newest Chicago rental property. Morgante launched her firm’s interiors division in 2007, leading to expansion into commercial interiors work and projects such as 727 West Madison in the West Loop, Atworth at Mellody Farm in Vernon Hills and E2 in downtown Evanston.

In 2020, she helped launch the Morgante Wilson Foundation to help create affordable homes based on Community Land Trust principles; inaugural funding provided support for 14 affordable scattered-site homes in Wilmette.

Kerry Nutter is president of La Grange-based PMCS Consulting, a 21-employee firm that helps manage large public-infrastructure projects.

Most recently, PMCS has been managing the budget and scheduling for the $4 billion widening project of the Central Tri-State Tollway corridor, and it also served as the program management office for the CTA Red/Purple Line modernization program.

Among notable past assignments are the CTA’s Red Line extension program, the Illinois Tollway’s ISO certification effort, the leadership team on the tollway’s Move Illinois program, and the “Big Dig” project in Boston. Before founding PMCS, Nutter worked for URS and Bechtel. She participates in the Women in Transportation Symposium, which fundraises for scholarships for women, and also supports ACE Mentors for scholarships for inner-city students.

She was promoted to chief operating officer in 2018 and became the Rosemont-based company’s first female CEO in October 2020. She was named NAIOP Chicago’s first female president in 2018, is on the advisory boards of IWIRE and ULI’s Women’s Leadership Initiative and also serves as a mentor for the Goldie Initiative.

Leading by example to see tomorrow transformed.

Thank you for inspiring women across the AEC industry, and congratulations on being named one of Crain's Notable Women in Construction & Design.

Mary O’Malley, Senior Superintendent

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28 MAY 3, 2021 • CRAIN’S CHICAGO BUSINESS

MARY O’MALLEY

MEG OSMAN

ASHLEE PFORR

KELLY POWERS

LAURIE PRICE

A

Senior superintendent Pepper Construction

Executive director, commercial CannonDesign

Project executive Skender

Vice president Powers & Sons Construction

President CDI Construction

V Pr

Mary O’Malley leads all activities in the field, supervising Pepper Construction personnel, maintaining schedules and implementing safety and quality standards. She is beginning work on the Barrington Firehouse and is the lead field manager for Pepper’s new solar panel group. Recent work includes a science and design lab along with security vestibules for the Lake Forest Elementary School District and new cardiac cath labs and

Meg Osman leads CannonDesign’s global commercial practice for Fortune 500 clients across several industries, directing integrated teams on a variety of notable projects for Cboe, Square, LinkedIn, Disney, Atlassian, Nippon and others in recent years. She has been an executive business consultant and design strategist involved with commercial real estate and “future of work” issues for decades, serving clients ranging from large, global businesses like Zurich to breakthrough-tech companies like Upwork. Osman is a member of New York City-based CannonDesign’s Women’s Forum, helping shape programming, mentorship and opportunities for other female leaders. She is a mentor to women on her team and across CannonDesign’s talent network.

She’s held diverse professional roles with CoreNet Global and numerous other design and community organizations.

The first woman to hold the project executive role at Skender, Ashlee Pforr leads a team of six construction managers, engineers and coordinators, providing overall project management direction on all jobs. She has managed several major projects recently, including new offices for WBEZ, Upwork and Relativity. She handled a 17-floor, 536,000-square-foot interior buildout as part of a Bank of America relocation to 110 N. Wacker Drive. It included a trading floor with supplemental cooling and uninterrupted power supply, critical-system infrastructure, custom two-story trellises and a monument staircase. Pforr supports women by teaching them to golf, empowering them to capitalize on networking opportunities traditionally viewed as men-only.

Pforr also serves in a leadership role with the Habitat for Humanity Women Build program.

Kelly Powers shares executive management responsibilities for operations in the Chicago area and northwest Indiana, overseeing marketing, new business development and partnership opportunities. She has 20 years of experience in engineering, general contracting, project management and strategic planning in all aspects of public and private construction and real estate. Gary-based Powers & Sons is a founder of the Lakeside Alliance, which is building the Obama Presidential Center in Jackson Park. Kelly Powers co-leads its Project Leadership and Community & Citizenship work groups, aiming to maximize contract opportunities for women-owned, minority-owned and other small business enterprises. The goal is a workforce that better represents the South Side and boosts diversity in the apprenticeship pipeline in Chicago’s trade unions.

Laurie Price, owner of Deerfield-based CDI Construction, is responsible for business development, operational activities and strategic direction. CDI has completed 52 projects over the past 18 months, including three with total contract values in excess of $2.5 million: a two-building warehouse/office reconfiguration for CEVA Logistics in Des Plaines, a tenant renovation for Valent BioSciences in Libertyville’s Innovation Park and a confidential U.S. government project involving the coordination of highly specialized structural components. Prior to founding CDI in 1992, Price worked as a commercial property manager and financial analyst for Rubloff and as a CPA for KPMG. Price is a 20-year member of CREW; her current mentorship is to train a young woman to run her father’s general contracting business.

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emergency department renovations at Advocate Christ Medical Center. O’Malley, Pepper’s first female superintendent, began her 31-year career as a carpenter apprentice and has worked in hospitality, retail, interiors and religious institutions as well.

Congratulations +g {Ē4g g ÏíĒ Steep Architecture Crain’s Chicago 2021 Notable Women in Construction & Design

Medical & Recreational Cannabis

Cultural Branding Studio

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ALICE REBECHINI

LESLEY ROTH

Vice president Project Management Advisors

Principal Lamar Johnson Collaborative

A 48-year industry veteran, Alice Rebechini is project manager for commercial real estate developments that are generally $100 million in construction cost or greater. She’s a subject-matter expert in multifamily, due diligence, life sciences and pro-forma analysis. Most recently, she was a senior leader on the project team for One Steuart Lane, a luxury condominium development in San Francisco, successfully managing it through the pandemic using virtual methodologies to direct participants spread across the country.

Before joining PMA, she was director of facilities projects at the Institute for Transfusion Medicine and also held positions with Aimco, Mesirow Stein Real Estate Chicago, Draper & Kramer and others. She sits on the mentorship panel at PMA and has mentored several young women.

Lesley Roth joined Lamar Johnson Collaborative in February, bringing expertise in urban design and planning to the firm, where she provides design direction, project management and consultant/ client coordination. Before joining LJC she was with Ratio Architects and Solomon Cordwell Buenz. Recent efforts include management of Chicago’s citywide plan, the first of its type completed in 40 years and which engaged more than 250 Chicagoans in 14 community conversations. Other career highlights include campus parks at CPS schools, multifamily housing and various urban-design and planning contributions. Roth is a board member of Territory, a youth-centered architecture and urban-design nonprofit; a diversity committee member at APAIL; and an advisory committee member for UIC’s Master of City Planning program.

PATRICIA SALDAÑA NATKE President UrbanWorks Patricia Saldaña Natke is a founding partner of UrbanWorks. Recently, her firm was design lead on a 164,000square-foot building at John Hancock High School in Chicago; a new 9-acre housing development in the Boston Square Master Plan in Grand Rapids, Mich.; and the West Pullman School Redevelopment, an adaptive reuse of a school into 60 units of affordable senior housing. Over her 33-year career, she’s been involved in more than 5,000 units of affordable housing, seven comprehensive mixed-income developments and more than 70 public school renovations, additions and new structures. Natke is board chair of the Chicago Women in Architecture Foundation and is a past co-chair of AIA Chicago’s Equity Roundtable. She is a part-time professor at Illinois Tech and a guest instructor at Spain’s IE School of Architecture, and she previously was an adjunct associate professor at UIC’s School of Architecture.

TRINA SANDSCHAFER

JESSICA SARAVIA

Design principal, vice president Kahler Slater

Senior architect, director of construction documentation and administration DMAC Architecture Jessica Saravia leads construction documentation and administration for Evanston-based DMAC Architecture, working across various verticals for the firm’s projects at nearly every stage, while also managing the LEED certification process. Upon joining DMAC she led the construction administration of the Hotel at Midtown, the 55-key boutique hotel component of the Midtown Athletic Club, while overseeing the construction documentation of four restaurants in multiple states. Before joining DMAC she was at DKA as project architect for Kankakee Community College’s North Extension Center and Joliet Junior College’s Student Services Center. Recently, she was invited to present at Girls Build, a Chicago Architecture Center program. She’s also a first-year studio instructor in industrial design, architecture and building construction at the Georgia Institute of Technology.

As vice president and design principal for Milwaukee-based Kahler Slater, Trina Sandschafer influences all aspects of the firm’s design process for its residential, hospitality and corporate practices. She also leads the firm’s Chicago Studio, created a design dialogue group to emphasize design culture and showcase work and initiated a mentorship program.

Prior to joining Kahler Slater in 2020, she was design principal at Booth Hansen for 13 years.

In 2020, Kahler Slater designed or delivered more than 8,000 residential units, 2,000 hotel keys and nearly a million square feet of corporate space. Sandschafer is a distinguished visiting professor at the University of Illinois at Urbana-Champaign School of Architecture and chairs the UIUC Architectural Alumni Advisory Board.

SCB congratulates our own Sheyla Conforte and all of this year’s Notable Women in Construction and Design!

SHEYLA CONFORTE, IIDA, NCIDQ, LEED AP PRINCIPAL + EXECUTIVE DIRECTOR OF INTERIOR DESIGN

ONE SOUTH WACKER | CHICAGO, IL

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30 MAY 3, 2021 • CRAIN’S CHICAGO BUSINESS

CHRIS-ANNMARIE SPENCER Principal Wheeler Kearns Architects As a firm principal and project architect, Chris-Annmarie Spencer is involved in all key projects, including such recent notables as the Go Green Community Fresh Market (under construction), Humboldt Park House (under construction), Clearwater Lake Retreat in Minocqua, Wis., and the Care for Real Food Pantry in Chicago.

Spencer is also involved in the firm’s inclusive hiring process, reviewing, interviewing, hiring, supporting and retaining staff.

In addition to volunteering with programs such as Architects in Schools, which introduces design thinking to elementary school students, she is developing a summer internship program, WKA Lift, to increase diversity within architecture.

As an AIA Chicago Foundation board member, she helped establish its Diversity Scholarship program.

REGINA STILP

CAROL STOLT

ROSEMARY SWIERK

MELISSA VENOY

H

Principal Farpoint Development

Vice president, design principal FGM Architects

President Direct Steel & Construction

Associate principal Goettsch Partners

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Regina Stilp is a founding principal at Farpoint, which specializes in ground-up and adaptive-reuse projects. Her focus currently is on Bronzeville Lakefront, a South Side megadevelopment that will revitalize the 100-acre site of the former Michael Reese Medical Center, creating health equity, life sciences jobs and affordable housing. Bronzeville Lakefront aspires to 65 percent minority and female participation, including professional services. Stilp’s key projects over the last 18 months include the adaptive reuse of 1308 N. Elston Ave., the modernizing of 6300 River Road in Rosemont and the redevelopment of Green Acres Country Club in Northbrook.

Before joining Farpoint Development, she spent 20 years as a principal at Sterling Bay, where she redeveloped office spaces for Gogo, Twitter, Uber, Google and McDonald’s, among others.

Carol Stolt is considered a pioneer in the use of the WELL Building Standard and among the first generation of interior designers certified in this global movement. She leads interior design for Oak Brook-based FGM’s Higher Education and Corporate practices, and she is a senior member of the firm’s Resilient Design committee. Recent projects include the renovation

Rosemary Swierk is the founder of Direct Steel & Construction, a 17-year-old Crystal Lake-based company that offers commercial general contracting, construction management and owners’ representation services. While the pandemic delayed some opportunities, Direct was able to proceed with several projects, including completion of the first phase of an $11 million contract to expand a Veterans Affairs building, with the second phase underway; the construction of an electronic recycling facility; various environmental building upgrades for a local manufacturer; and a sizable project award at USACE at Fort Hood, Texas. Swierk serves as an ambassador at the Women’s Business Development Center and also is a state-appointed board member at the Small Business Development Center. She also has been a featured speaker on real estate and construction.

Recently promoted to associate principal, Melissa Venoy is the youngest woman to hold this position at Goettsch. Her responsibilities include managing multiple project teams on large-scale developments, from concept design through design development, coordination and collaboration with consultants. She has experience with international architectural assignments in North America, the Middle East and two large projects in China: a 3.4 millionsquare-foot mixed-use tower in Wenzhou, featuring office space and a 330-key hotel, and a mixed-use development in Shantou, featuring five towers and a 646,000-square-foot retail mall. Venoy is on the board of the Chicago Women in Architecture Foundation and is a member of the development committee, working on a fellowship and mentorship program to elevate women to leadership positions.

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of the Cook County Board room and commissioners’ and president’s suite, Dominican University’s Multicultural Center and the master plan for the executive MBA program at Northwestern University’s Kellogg School of Business. Before joining FGM, Stolt was a principal for nine years with Abrams Design Consultants. Stolt is a member of the Learning Spaces Collaboratory, a think tank focused on changing educational design through the lessons learned in the pandemic.

NONPROFITS: Join us to get your word out

Giving Guide

Crain’s 2021 Giving Guide highlights unique ways nonprofits use corporate connections to maximize their reach. Share your story with the Chicago Business community with an informative listing.

The deadline to participate is early May. Contact Amy Skarnulis at askarnulis@crain.com

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As a special addition this year, Crain’s is featuring an updated version of it’s annual Big Dates Calendar on June 21. Submit your FREE listing through May 21.

Submit your event at ChicagoBusiness.com/submitbigdates21

For more information on the opportunities above, please reach out to Amy Skarnulis at askarnulis@crain.com

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HEIDI WANG

CHRISTY WEBBER

MEGHAN WEBSTER

MAE C. WHITESIDE

ALLYSIA YOUNGQUIST

Partner Worn Jerabek Wiltse

President Christy Webber Landscapes

Principal Gensler Chicago

CEO CKL Engineers

Associate principal Klein & Hoffman

Heidi Wang oversees business development, marketing and staff development at WJW while managing projects from design and master planning through construction. She was project manager and partnerin-charge of 229,000 square feet of supportive and affordable housing over the past 18 months, with an aggregate construction cost of $59 million, and an additional 485,000 square feet of moderate rehab projects with an aggregate construction cost of $59 million.

Other recent efforts include Tiger Senior Apartments, a historic preservation/sustainable-reuse project, as well as Martin Avenue Apartments, Ladd Senior Apartments and projects at the schematic design phase. She is helping to establish the Illinois Housing Council’s Emerging Leaders Network, a mentorship/ career-pathways program in affordable housing design. Wang is WJW’s first female partner, and she helps foster a workforce that is now 50 percent women.

Christy Webber manages everything from new business and staffing to signing checks and “turning lights off at night.”

Recent efforts include landscaping the 606, a rails-totrails project that weaves through five different neighborhoods, and the Old Post Office, a collaborative landscape construction that required specialized soils, the laying of brickwork, a sport court installation and the procurement of hundreds of native plants and beehives. Webber promotes immigration reform and the need to recognize the Latino workforce as an American workforce. Her secret for mentoring women in construction and design: “Hire them.”

Her civic priority is guerrilla gardening, bringing a Bobcat, dump truck and whatever soils and plants are needed to help neighborhoods take back vacant lots.

Meghan Webster has led Gensler’s global education practice for the better part of her 10 years with the firm, growing its revenue by 50 percent while driving strategy, new business, client engagement and thought leadership.

She leads a team that has shaped student experiences on various campuses, ranging from Columbia College Chicago’s Student Center and campus master plan to projects at Wichita State University, Illinois State University and the University of Illinois at Chicago. With the growth of the life sciences industry in Chicago, she’s been instrumental in amplifying the practice area and rapidly securing work in the space. Before joining Gensler, Webster was an architectural designer at Behnisch Architekten in Stuttgart, Germany, and in Boston, as well as at Studio Urbis in Berkeley, Calif.

In 2009, Mae C. Whiteside founded CKL Engineers, a civil, environmental and structural engineering firm engaged in projects around Illinois. It has since grown into a multistate, multidisciplinary architecture and engineering firm delivering aviation, civil/site, construction management, environmental and structural engineering services. Key projects include the U.S. 41 South Lake Shore Drive relocation, the Elgin-O'Hare Western Access project Pine Dunes wetland mitigation, O’Hare-21, COVID-19 analysis at O’Hare and Midway airports, and Lewis Airport construction management services. CKL also serves as a prime consultant for various construction projects for the Illinois Tollway and the Illinois Department of Transportation. In summer 2018, Whiteside created the Women STEM Entrepreneurs Breakfast Forum as a space for female CEOs in STEM to share experiences.

Allysia Youngquist is an associate principal, shareholder and member of Klein & Hoffman’s board of directors and executive committee.

Her responsibilities include corporate-level management, project and staffing coordination within the firm’s architectural group and firmwide technical guidance for roofing and waterproofing. Recent efforts include project managing the $80 million Building Enclosure System restoration, which began in 2013, at Terminal 1 at O’Hare International Airport.

As principal architect, she also oversees a 60-building portfolio at Loyola University Chicago.

Youngquist is involved with Women in Restoration Engineering and is on the board of the Chicago Chapter of IIBEC, an international association of professionals who specialize in roofing, waterproofing and exterior-wall specification and design.

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32 MAY 3, 2021 • CRAIN’S CHICAGO BUSINESS

PERKS from Page 3 new deals—landlords are shelling out incentives and creative leasing perks to shore up their tenant rosters as the crisis wanes.

Many companies that have proven their efficacy with remote workers are still unsure about how much physical office space they will need moving forward, forcing landlords to offer leases laced with flexibility to induce tenants to sign on now. That has made it a good time to be in the market for a downtown office and a challenging one for owners scrambling to lock in revenue amid one of the most competitive landscapes in decades.

“Most landlords want cash flow,” says CBRE Vice Chairman and tenant broker Kyle Kamin, “so we’re seeing concession packages at numbers that we’ve never seen before.”

Those numbers mark an aboutface from 15 months ago, when landlords were enjoying a rush of companies moving to and expanding downtown offices. Today, brokers who represent tenants say creditworthy companies willing to sign a 10-year lease can often move in a year or more before their lease term begins—beneficial occupancy is the parlance—and get 18 months or more in free rent beyond that, compared with 12 they might have got-

ten before the pandemic. So-called tenant improvement allowances, or cash that landlords hand out to companies to offset office buildout costs, are up by 15 to 25 percent from pre-COVID levels, many brokers say.

At buildings with more dire leasing needs, even rents themselves are starting to drop slightly—the last lever landlords typically pull because it can lower a property’s market value if they want to sell.

Jones Lang LaSalle Senior Managing Director Steve Steinmeyer, who co-heads the brokerage’s Midwest law firm practice group, estimates asking rents are down by an average of 3 percent from pre-pandemic levels. But net effective rents—what landlords make from a tenant after accounting for concessions, free rent and other incentives—are down by at least 15 percent and substantially more at buildings with lots of vacant space. “There’s a realization that the market has changed,” he says.

‘BIRD IN HAND’

Veteran tenant broker Ari Klein at Cushman & Wakefield says one of his 20,000-square-foot clients with almost 2½ years left on its lease is fielding interest from landlords willing to let them move in now but sign a lease that doesn’t start until its current one ends in 2023—and not pay any rent until a year after that.

“Landlords are saying to themselves: ‘I’m unclear on what the future leasing velocity is going to be, so if I can take this bird in hand, I’m going to do it,’ ” Klein says.

Some are mulling unconventional incentives to coax tenants still flummoxed about their workspace needs. A few have agreed to pick up the tab for a set amount of future hikes in property taxes, which are typically passed along to tenants, says Robert Sevim, vice chairman in the Chicago office of tenant brokerage Savills. That’s meant to address a potential pain point for tenants that are bracing for property reassessments under Cook County Assessor Fritz Kaegi, which are expected to put more of the local tax burden on commercial buildings.

Other rare perks now in play for high-credit companies willing to sign a long-term lease: more tenant options to terminate deals or expand or contract their footprint; smaller security deposits, which reduce the amount of cash or collateral a company would have to put up in case of a lease default; and so-called lookback provisions that allow a tenant to reduce their rent at a predetermined date if market rates at similar buildings substantially fall.

“The flexibility of how concessions are delivered is important,

Exits threaten push for change in policing POLICING from Page 1 The lack of permanent leadership in those top roles threatens Lightfoot’s ability to deliver on her campaign promises to reform police practices many see as abusive and unfair.

“There’s a lack of political will to really want to change policing for the better of communities, and that is linked to the lack of senior leadership with real expertise and experience in how to make this happen in a police department of this size,” says Nusrat Choudhury, the legal director for the ACLU of Illinois.

“The mayor can’t do it alone.”

Getting up to speed on consent decree compliance is a massive, multiyear challenge on its own. But on top of it, the city has been rocked by waves of controversy stemming from CPD’s response to last summer’s protests; debate over foot pursuit and search warrant policy heightened by the release of videos of the deaths of Adam Toledo and Anthony Alvarez, along with the wrongful raid on Anjanette Young; and uncertainty over the fate of an ordinance that would give citizens more control over CPD policy.

“You can’t help someone who doesn’t want any help,” says Ald. Roderick Sawyer, 6th. “I will say, Rahm swiftly put people in place.

Whether you agreed with them or not, you did get a response, you got a conversation.”

Lightfoot entrusted the corporation counsel role—head of the city’s massive Law Department and a key crafter of several provisions of the consent decree—to longtime friend and former federal prosecutor Flessner. She tapped Puckett for

P032_CCB_20210503.indd 32

the risk officer position to address runaway police misconduct suits and help change the policies that fueled them. She beefed up the role of her deputy mayor to include a new portfolio of violence reduction duties, a staff of more than a dozen and grant-giving capabilities.

All three positions play roles in developing policy to reshape the police department, and all three have been under interim leadership for months. Without permanent leaders, advocates say, several hot issues are languishing.

Walter Katz, who served as deputy mayor for public safety under Rahm Emanuel, says the position is not only responsible for helping keep the consent decree on track, but serves “as the communications bridge between the police department, the rest of the public safety apparatus and the mayor’s office.”

Katz says “that kind of communication is vital,” particularly during the summer, when violence typically spikes.

The deputy mayor was also involved in negotiations on the civilian oversight ordinance. But advocates like Desmon Yancy, who had been working on the ordinance with the mayor’s office and dozens of community groups over several years, says all communications stopped when Lee left.

Two factions that battled over the content of the ordinance— the Civilian Police Accountability Council coalition and the Grassroots Alliance for Police Accountability—have since agreed on a “unity” measure that would give an elected civilian oversight board broad powers, including playing key roles in selecting candidates for

superintendent, Police Board and the head of the Civilian Office of Police Accountability and approval over CPD policies and hiring. Aldermen sponsoring the proposed ordinance want a vote, but multiple City Council committee hearings on the issue have been put on hold at the mayor’s request.

“One of two things are going to happen,” Yancy says. “She creates something out of left field or plagiarizes parts of the proposal that’s already public. Neither will go far enough; neither will be credible because they’re not what has been built by the community.”

JOHN R. BOEHM

Office landlords dangle perks in fight for tenants

Wendy Katz and Matt Lerner are executive vice presidents at Stream Realty Partners. and the landlords who can deliver those really flexibly are going to succeed in this environment,” Sevim says.

Many landlords are spending millions of dollars to build out movein-ready offices, or spec suites, to get companies to sign on with little upfront cost. And instead of the typical seven- or 10-year leases required to justify building out such spaces, some leasing agents say owners will now sign three- or five-year deals and bank on a renewal down the line.

Spec-suite design is also being framed as a draw for tenants that may want to reconfigure their space once workers return to the office in greater numbers.

At 500 W. Madison St., Newport

CITY HALL BRAIN DRAIN Mayor Lori Lightfoot campaigned on catalytic change to policing in Chicago. But three key positions in that effort have been without permanent leadership for several months as the city faces police controversies on multiple fronts.

CORPORATION COUNSEL

The head of the city’s Law Department, which is responsible for providing legal counsel and representation for the city and its employees, including CPD. Exited: Mark Flessner in December

Interim: Celia Meza, previously Lightfoot’s counsel and senior ethics adviser

CHIEF RISK OFFICER

A new position started by Lightfoot and tasked with coordinating a citywide risk-reduction strategy in policing, workers’ compensation and property damage.

Exited: Tamika Puckett in October

ASSESSING RISKS

The role of chief risk officer “is an important one now, especially in Chicago, which has such high recurring liability costs,” Katz explains. The position is responsible for identifying significant risks and helping develop policies to prevent those risks from leading to tragedies like those the city has seen in recent years. Chief among those problem areas are foot pursuits, which are dangerous to both the police and the pursued.

Both Adam Toledo and Anthony Alvarez were shot and killed by officers in such pursuits. The Department of Justice pointed out the need for a formal foot-pursuit policy in its 2017 investigation of CPD, which Lightfoot echoed before she was mayor. The consent decree monitor also emphasized the need for a new foot-pursuit policy in March. But none has yet been proposed.

In a statement, a mayoral spokesperson says Lightfoot is “adamantly committed” to public

Beach, Calif.-based owner KBS is building out 85,000 square feet of such offices across two floors— part of a roughly $22 million renovation that includes a new outdoor deck and tenant lounge—with “high-end marketing centers” that can be used for conferencing, as a lounge or other gathering space “that they can’t get at home,” says Matt Lerner, executive vice president at Stream Realty Partners, which oversees leasing at the 40-story building.

“You have to design something that they want to move on, that will make them make a real estate decision,” Lerner says. Companies “want to do something that’s better for company culture and gives people a reason to come back.”

Interim: Stephen Skardon, previously a senior adviser and counsel in the mayor’s office

DEPUTY MAYOR FOR PUBLIC SAFETY

Responsible for leading the mayor’s public safety strategy and overseeing the Office of Violence Reduction.

Exited: Susan Lee in October

safety reforms, which “is reflected in the overall staffing around public safety and violence prevention.” Risk management and violence prevention efforts continue unabated, the spokesperson says. “This work is a top priority,” the spokesman adds, emphasizing that “despite gaps in permanent leadership, none of this work has or ever will fall by the wayside.”

Interim heads of the critical offices include longtime Lightfoot confidant Celia Meza, who has served as acting corporation counsel since Dec. 21. Norman Kerr, who worked under Lee in the Office of Violence

Interim: Norman Kerr, who worked under Lee in the Office of Violence Reduction

Prevention, is the de facto deputy mayor. The interim chief risk officer is Stephen Skardon.

Inspector General Ferguson has declined to comment on the possible end of his 12-year tenure. His office is auditing CPD and participating in consent decree compliance. But he sounded the alarm about vacancies in November as a sign of the city’s struggle “with the larger reform infrastructure.”

He warned that “the right hand doesn’t know what the left hand is doing. Take that and apply it to an octopus, and that’s where we are right now.”

4/30/21 4:24 PM

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WORKPLACE RE-OCCUPANCY FOR OWNERS, LANDLORDS AND TENANTS

It’s been said that the road to workplace re-occupancy is paved with technology and common sense. Indeed, as organizations plan for a post-pandemic world, the workplace may be the first line of defense in preventing disease transmission. Three Chicago-based experts involved with workplace re-occupancy shared their insights and challenges with Crain’s Content Studio.

How is your organization involved with workplace reoccupancy?

Morris Gershengorin: We design and construct office spaces. The pandemic has compelled us to prepare and adapt our service offerings and capabilities to meet the demand for office modifications to facilitate workplace re-occupancy and ensure that future projects meet new design and construction standards.

Andy Holub: Clune is focused on quick, cost effective, impactful changes to our clients’ environments to help their peace of mind about re-occupancy. We’ve been working closely with our partners in the CRE industry to implement solutions to help employees feel confident about returning to the office. For example, we’ve installed touchless faucets and soap dispensers in kitchens and bathrooms, installed door hardware in highly touched areas that inhibits the growth of bacteria, and replaced laminate with surfaces that are easier to disinfect.

Julie Lardenoit: ESD has been working closely with building owners, operators and occupiers throughout Chicago and the country to foster confidence that the workplace is as safe as it can be. We’ve done this by deploying wellness assessments and helping building engineers maximize equipment operations and filtration potential in existing air handling systems. Indoor air quality and the general health of buildings are at the center of discussions on how to mitigate disease transmission as people start returning to work.

for better work experiences while operating within CDC guidelines for social distancing and general healthy behaviors.

Please describe a current or recently completed project that illustrates your company’s experience in return to office/re-occupancy.

Gershengorin: We recently completed a duplex office concept in Chicago’s Bucktown neighborhood.

We worked with the architects and designers to help the owners reformat the space to provide ample distancing for everyone during work hours. This included redesigning the employee lounge, common and dining areas. We also introduced natural light and air to the lower levels that traditionally would not receive such attention.

Lardenoit: We’re currently working with an international company that was looking for opportunities to go above and beyond CDC and industry recommendations with respect to indoor air quality for their employees.

They have a genuine interest in making their employees feel more confident about returning to the office by investing in technologies that have a positive impact on indoor air quality. We reviewed their buildings and made both short- and long-term recommendations. We’re providing HEPA spot filtration units in higher-density areas and implementing bipolar ionization technology within their tenant spaces. There was a question related to plexiglass partitioning to provide additional protection. As engineers, we know that additional partitions

“THE QUALIFIED IMPROVEMENT PROPERTY PROGRAM . . . ALLOWS 100 PERCENT OF HARD AND SOFT COSTS OF ANY QUALIFYING INTERIOR IMPROVEMENT TO RECEIVE AN IMMEDIATE TAX DEDUCTION.” —JULIE LARDENOIT, ESD We understand that the health of buildings and response to this pandemic extend far beyond indoor air quality. We’ve been leveraging technology and smart building applications, helping clients deploy frictionless entryways to minimize surface contact. By designing robust wireless networks, we’re deploying ways for tenants to be more flexible in where they work—allowing

P033_035_CCB_20210503.indd 33

can have a negative impact on ventilation effectiveness and impact how contaminants are removed from the space. We’re currently performing simulations to determine if providing these partitions will result in more harm than good.

Holub: We recently completed a refresh for a national client, adding hands-free operations—door

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operators, faucets, etc.—to minimize touch points and creating divisible spaces with dividers and screens in congested areas. We also installed a significant amount of wayfinding and instructional signage, and crafted additional smaller phone rooms to give employees a more comfortable environment.

ANDY HOLUB VP, Director - Pre-Construction and Special Services Clune Construction aholub@clunegc.com 312-617-2552

In recent months, have you seen an uptick in the demand for re-occupancy solutions?

Lardenoit: We’ve seen an increase in recent months with tenants looking to reoccupy by early fall. In the beginning of the pandemic, we were hearing more from owners and operators who were exploring options

JULIE LARDENOIT Practice Leader ESD jlardenoit@esdglobal.com 312-456-2222

for building operations during the pandemic, as well as positioning their buildings for the future. More recently, we’ve been hearing more from building tenants. It’s been a wide range of clients, from not-forprofits occupying less than a floor to global clients looking to assess their portfolio of buildings nationally and internationally. Tenants are

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4/26/21 11:31 AM

WORKPLACE RE-OCCUPANCY FOR OWNERS, LANDLORDS AND TENANTS looking for opportunities that can be implemented within their existing systems to make their employees feel more comfortable returning to the office. They’re looking to go above and beyond CDC and industry recommendations to accomplish that.

Gershengorin: Over the past few months there’s been much interest in planning re-occupancy and the solutions that go along with that process. While demand can be characterized as increasing, organizations have so far remained hesitant to begin preparing. With the vaccine rollout gaining momentum, we’re anticipating a noticeable increase in demand for re-occupancy solutions in the second quarter of this year and beyond.

Holub: There’s a considerable amount of planning happening right now. We’re seeing budgeting, bidding and other conversations that weren’t happening late last year. Now that the vaccination process is in full effect and

we’ve been working remotely for a year, it feels like clients are becoming more comfortable with the possibility of reopening. They’re now telling us what it will take to bring them back to the office in a safe and cost-effective manner.

What’s the number one concern you’re hearing from your clients on this topic?

Holub: I’d say the biggest concern is committing to long-term agreements in a still-uncertain world. We’ve learned a lot about our wants and needs over the past year. However, I think a lot of our clients are still determining when, where and how they want to move forward.

Many clients don’t yet know how to plan in the long term. They’re still determining how much square footage they want to hold onto, and how remote working will impact the amount of space they need.

Lardenoit: Clients want to make their employees feel comfortable

“MANY OF OUR HOSPITALITY CLIENTS ARE POSITIONING THEIR SPACES TO HAVE MORE OPERABLE WINDOWS AND OUTSIDE AREAS.” —MORRIS GERSHENGORIN, REAL RESTORATION GROUP

getting back to the office. Most people feel that while they were efficient enough and they were productive enough, they miss collaborating with their team and want to maintain company culture. They want to embrace a hybrid model to get people back as quickly and safely as possible.

Gershengorin: The number one concern is the unknown nature of re-occupancy. While vaccine optimism seems to be increasing, the potential of a resurgence in cases, COVID-19 variants and the possibility of a resulting lockdown creates uncertainty.

What are some trends you’re seeing as owners and operators position their buildings for re-occupancy?

Holub: Again, touch free environments, elevated cleaning schedules, improved signage and return to work programs outlining how you should operate when you return.

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N A T I O N A L CONTRACTOR

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CLUNEGC.COM

ABOUT CLUNE Clune Construction is an employee-owned, national general contractor, providing construction management services for some of the most respected companies in the world. With six offices across the U.S., Clune manages over $1.3 billion in commercial and data center projects annually and is repeatedly recognized as one of the Best Places to Work in Chicago

Lardenoit: We’ve seen an increase in opportunities related to building amenity spaces like conference areas, game rooms and lobby upgrades.

Owners and operators are taking advantage of under-occupied buildings to make improvements to attract and retain their tenants and get employees excited about returning to life in the office again.

We’ve also seen a steady increase in spec suites and turnkey offices.

As tenants explore reducing their direct-office footprint, there are opportunities to convert these spaces to smaller offices where organizations can lease a space that, for the most part, is ready to go.

What solutions and technologies are you implementing for your clients?

Gershengorin: While the majority of owners and operators are prioritizing decontamination and disinfection, they understand that a successful return will also rely on addressing individual and group behaviors as well as workplace culture. That being

CHICAGO ROOTS

said, first and foremost owners and operators are focusing on recalibrating and improving building systems, instituting new processes and protocols, spatial modifications and reconsidering materiality, to name a few.

Gershengorin: In office buildings and other commercial properties, we’re implementing a variety of solutions and technologies such as HVAC system upgrades, “notouch” building engagement systems, strategic material selection in construction, and where possible, replacing materials with antimicrobial alternatives to promote a highly cleanable space without compromising aesthetics.

Lardenoit: The focus has been on improvements to indoor air quality, health and wellness, and touchless technology. We partnered with two firms—Cohesion and Riverside Investment & Development—to implement a comprehensive indoor air quality improvement and monitoring program with bipolar ionization technology and carbon dioxide monitors. The program allows occupants to understand the air quality within their spaces from their phones. I think that moving forward, people will want to know about the quality of air they’re breathing, so we expect this technology to be widely adapted.

We’re also looking into how we can put existing technology within spaces to new uses—for example, using sensors in lighting fixtures to track occupancy density.

Holub: Even after the pandemic is behind us, working remotely will be here to stay. As a result, we’re seeing a greater need for smaller work rooms with enhanced technology. However, collaboration is still vital to the success and overall culture of a business. We’re working to identify solutions that will augment employees’ experience so collaboration isn’t lost with changes in workstyle.

How can building owners offset the costs associated with these types of improvements?

Lardenoit: The Qualified Improvement Property Program— part of the CARES Act—allows 100 percent of hard and soft costs of any qualifying interior improvement to receive an immediate tax deduction.

Improvements that can be included as part of this program include filter upgrades, ultraviolet germicidal irradiation, bipolar ionization systems, touchless technologies and upgrades to building automation systems.

Gershengorin: Owners should start by creating a phased reinvestment plan that includes both operational costs and expenses associated with new higher standards of building safety and cleanliness to allow a return to “business as usual.”

One of the simplest ways to offset costs is by standardizing a building’s tech infrastructure and adapting to new innovations in technology and automation. These tools also provide critical data and analytics that are invaluable when determining future investment in tenant improvement.

Holub: Building owners need to start communicating with their tenants and the public about the improvements they’re making to create safe workspaces. They should communicate modifications, building updates, schedule changes and more.

Clients need to know they’re investing in clean and secure strategies to bring everyone back to the office safely.

In what ways has the pandemic changed office design and construction?

Holub: There’s currently a lot less opportunity and a lot more competition.

Margins are tighter and the process is slower. In addition, there are many things that weren’t thought about before that now need to be considered.

For example, the extra time it takes to transport workers on a jobsite via elevator due to social distancing guidelines must now be worked into a project schedule. Also, social distancing has changed how certain tasks are performed. Jobs that were once performed by two people in close proximity must now be accomplished individually. These changes have challenged us to be more thoughtful, and to think through every single step we take on a jobsite, so we all go home healthy at the end of the day.

Lardenoit: Organizations are looking for flexible spaces. A lot of studies indicate that yes, people miss the office, but they don’t miss it five days a week. For a distributed work model to make sense, it will need a well-thought-out hoteling strategy to allow flexibility to expand without the corresponding, traditional square-foot-

4/26/21 11:31 AM

SPONSORED CONTENT per-person ratio increases in real estate.

Organizations are currently exploring how to make their spaces desirable to support culture, collaboration and innovation. Many are creating more “we” space versus “me” space. Some are reimagining their open-office strategies to promote inclusivity and create a space where people want to be. Some are augmenting their space strategy with building amenity spaces.

And after years of densification, I think we’ll start seeing people spread out a bit more.

Gershengorin: The future of office construction and design will need to provide for maximum social distancing, touch-free operation, and air and surface sanitization. The concept of open space modularity plays a large role in this ongoing discussion. Outdoor spaces will be leveraged to provide dynamic flex areas for occupants. Flexible infrastructure will need to be a foundational design and construction principle.

What post-pandemic construction and design standards will be the most difficult to adapt to and why?

Holub: The designers’ biggest challenges will come when they begin programming with their clients.

We’re starting to see a light at the end of the tunnel, but it’s still not clear when this will end. So, designers will need to rethink spatial standards that have been practiced for decades.

In construction, the challenge will most likely be with the supply chain.

Expectations are roughly the same as they were a year ago. However, projects just won’t move as fast as they have in the past. We need to be vigilant in our material tracking, scheduling challenges, and most importantly, communicating these challenges to clients.

Gershengorin: Many of our hospitality clients are positioning their spaces to have more operable windows and outside areas. This has obviously been a challenge with existing space, so adapting our team to the new structure and processes will continue to be a driving force as we look ahead.

Lardenoit: We haven’t seen any code updates related to the pandemic thus far. The primary focus on indoor air quality has been outdoor air and filtration. While we used to think of MERV 13 filters as the Cadillac of air filters for the commercial building industry, most buildings have been able to accommodate the upgrade. As it is, Chicago building codes require more outdoor air than industry standards specify. The other aspect of indoor air quality is humidity.

We know there’s a link between low humidity and occupant health within a building. There are currently no codes or standards that require lower limits of humidity in commercial office

spaces. Unfortunately, if a standard were introduced, it would be very challenging, if not impossible, to implement. Most commercial buildings are not designed to accommodate humidification systems.

Looking ahead, how will buildings and landlords likely evolve to attract and retain tenants?

Lardenoit: I think it will be a combination of things. We’ve seen an increase in opportunities for building amenities. While amenities have always been a big attraction for tenants, I think organizations are looking for ways to entice their employees back to the office. Flexibility with respect to lease durations may become more important as organizations realize how quickly situations can change. Health care as an amenity within buildings is something we’re starting to see and we expect this to continue and increase.

Holub: I suspect WELL certifications, which verify human health and wellness in buildings, will rise over the next few years. Promoting a healthy environment is key to attracting tenants. Building amenities will also adapt to our current environment. For example, the traditional cafeteria will evolve from sit-down to grab-andgo. Fitness centers will have robust scheduling applications to avoid overcrowded spaces. I also suspect we’ll see solutions introduced that will limit or control on how many people can occupy a space.

How can landlords and tenants alike plan for a smooth transition back to the office?

Lardenoit: We’re advising owners to spend some time examining the efficiency of their building’s equipment and systems. Buildings have been very underutilized for over a year. We wouldn’t take our car on a long road trip after it sat idle in our garage for over a year without first taking it for service.

We can’t expect our buildings to be ready to go without a little TLC. For tenants, constant communication with landlords about plans and questions regarding indoor air quality, health and wellness initiatives, and technology implemented over the past year can be part of a company’s due diligence. Tenants really want transparency and communication.

For example, ESD is a tenant at Willis Tower. We receive regular updates on infections and cleaning protocols, and Willis Tower has hosted virtual building-wide educational presentations. As a result, we as tenants feel like the building owners are doing everything in their power to keep us safe and informed.

Holub: Success will come from a good strategy—dip your toes in the water before you dive in. At

“SUCCESS WILL COME FROM A GOOD STRATEGY—DIP YOUR TOES IN THE WATER BEFORE YOU DIVE IN.” —ANDY HOLUB, CLUNE CONSTRUCTION

P033_035_CCB_20210503.indd 35

ABOUT THE PANELISTS MORRIS GERSHENGORIN is CEO of Real Restoration Group, a full-service, Chicago-based firm with decades of experience in all aspects of construction and restoration. He has a track record of success for meeting and exceeding clients’ expectations, and has been recognized for his work developing multifamily buildings and restoring properties across a wide variety of asset classes. He has spearheaded numerous emergency-relief projects and supports various charities, including the Friends of Refugees of Eastern Europe, where he serves as a board member.

ANDY HOLUB is a vice president and director at Clune Construction, an employee-owned general contractor with more than 600 professionals in five offices across the United States. With 23 years of experience in the industry, he leads a team that is responsible for all aspects of the pre-construction process, and he also oversees the company’s selfperform group and service division. He holds a bachelor’s degree in architectural studies from the University of Illinois Urbana-Champaign and an OSHA 30-hour certification.

JULIE LARDENOIT is a practice leader at ESD (Environmental Systems Design, Inc.), a Chicagobased global consulting engineering firm focused on the delivery of high-performance buildings.

A 20-year veteran of the firm, she opened and led its office in Abu Dhabi, returning to Chicago in 2018 to lead its growth with national companies seeking to implement standards across national and international real estate portfolios. She holds a bachelor’s degree in mechanical engineering from the University of Michigan and is on the board of the International Women’s Forum.

Clune, we were successful because we set up and implemented a plan that worked, including leaving the decision about whether to come into the office to the individual employee.

As we learned more, we adapted our plan. We also asked ourselves and

our peers to stick to the plan until we know this is over. It really comes down to landlords taking the steps to assure tenants that the building has been modified to follow CDC social distancing guidelines. Once a landlord is effective in selling its tenants on

the modifications of the building, it becomes the tenant’s responsibility to take similar steps in their office space.

Once this is accomplished, they need to communicate how the changes affect the day-to-day work life of their employees.

HOW WOULD YOU RATE YOUR COMPANY’S COMFORT LEVEL FOR

RETURNING TO THE OFFICE?

Indoor Air Quality | Touchless Technologies | Facility Health & Wellness

Workplace re-occupancy has both physical and emotional impacts and can mean different things to different people. That’s why building owners, landlords, and tenants trust ESD to help identify and meet facility health, wellness, and safety goals.

JULIE LARDENOIT

Practice Leader, Workplace Solutions

ESD has been working closely with building owners, operators and occupiers throughout Chicago and the country to foster confidence that the workplace is as safe as it can be. We’ve done this by deploying wellness assessments and helping building engineers maximize equipment operations and filtration potential in existing air handling systems.

Where does your organization fall on the return-to-office spectrum? Check out www.esdglobal.com/WorkplaceReoccupancy to review some options and to learn how ESD can help you find your comfort zone.

Improving Society Through the Built Environment Environmental Systems Design, Inc. 312 372 1200 | esdglobal.com

4/26/21 11:31 AM

36 MAY 3, 2021 • CRAIN’S CHICAGO BUSINESS

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Area banks sound the all-clear after COVID crisis ALL-CLEAR from Page 1 more of those reserves to find their way back to banks’ retained earnings, bolstering capital and easily enabling those lenders to support what some predict will be an economic boom born of pent-up demand from consumers holed up in their homes for the past year.

John Greene, chief financial officer at Riverwoods-based Discover, recalls his thinking a year ago as unemployment applications came in by the millions each week. Credit card losses are tied more directly to job losses than virtually any other lending category. A credit card bill typically is among the first debts a consumer opts not to pay when confronted with sudden loss of income.

“The likelihood we’d be where we are today would have been around zero,” he says in an interview. “There just was no way.”

Now? Discover released $879 million in loan-loss reserves in the first quarter, leading to more than $2 billion in pre-tax profit.

That well exceeded the $1.4 billion in pre-tax earnings for all of 2020 and—more impressively, perhaps—was more than half Discover’s $3.8 billion for all of 2019.

For 2021, Discover forecasts loan losses will be flat to down.

SAVING RATES

Find your next corporate tenant or leaser.

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

P036_CCB_20210503.indd 36

Discover’s biggest “problem” right now is that consumers are saving at extraordinary rates and paying down debt, including credit cards. Credit card loans outstanding are at their lowest level in nearly three years.

Greene says the government intervention, both in terms of the unprecedented spending and the approach of furnishing cash directly to consumers and businesses, “made a massive difference.

The whole economy has shown quite a bit of resilience.”

Some credit the government’s response to the Great Recession as well. Federal requirements on banks to keep larger capital cushions for future economic shocks after so many were caught short in 2009 and 2010 provided ample room to bolster loan-loss reserves, even if the losses didn’t materialize.

“If you go back to ’08-’09 and what took place afterward, a very, very positive outcome was more capital in the system,” says Dave Casper, CEO of BMO Harris, the second-largest commercial and retail bank in Chicago. “Banks had the capital to put the reserves in

CRAIN’S FILE PHOTO

COMMERCIAL REALESTATE

Edward Wehmer is CEO of Rosemont-based Wintrust Financial. place. If we didn’t have the capi- in the first quarter while 2.6 pertal, we wouldn’t have been able to cent were late by at least 30 days.

Two years before, those numbers do that.”

The Chicago bank’s Toron- were 3.5 percent and 2.5 percent, to-based parent, BMO Financial respectively.

BMO’s rate of bad loans in the Group, reduced reserves for loan losses in its fiscal first quarter by U.S. was 1.1 percent in the quarter $25 million for its U.S. consum- that ended Jan. 31 versus 0.9 perer and commercial unit, which cent two years before.

Wintrust’s first quarter of 2021 roughly corresponds to BMO Harris. In the previous three quarters, was even more pristine than two that unit bolstered reserves by a years before. Bad loans accounted for just 0.3 percent of total loans total of $525 million.

Edward Wehmer, CEO of Rose- compared with nearly 0.5 percent mont-based Wintrust Financial, in the first three months of 2019.

With the worst fears of a year says it was important that regulators gave banks leeway to put in ago not realized, one question place forbearance programs that is whether the COVID blueprint allowed stressed borrowers to for economic recovery is one reduce payments to their lenders or skip “THE LESSON YOU LEARN IN BANKING: them altogether. In 2009 and 2010, many PICK THE RIGHT CLIENTS AND STICK BY banks were compelled to mark down THEM IN HARD TIMES.” the collateral values Dave Casper, CEO, BMO Harris of real estate backing loans, which meant loans were written off that possi- that should be applied to future bly could have been saved with crises. One clear governmental lesson learned from the Great Remore patience, he says.

“It was the gift of time,” he says. cession was to err on the side of “Some common sense is helping spending too much rather than everyone get through this. . . .This too little. But, unlike past financial crises, this one was the result time they were smart.”

Wintrust, Chicago’s fourth-larg- of something akin to a natural diest bank by deposits and one of saster rather than the reckoning its leading business lenders, re- following an investment mania of leased $45 million in loan-loss some kind.

Says BMO Harris’ Casper, “We’ll reserves in the first quarter, accounting for 22 percent of its pre- face another crisis. It’ll be sometax net income of $207 million. thing different than this. . . .The Last year, Wintrust added $214 lesson you learn in banking: Pick the right clients and stick by them million to its reserves.

And bad loans? What bad loans? in hard times.”

Discover’s Greene: “The ability At each of Discover, BMO Harris and Wintrust, they’re about the to smooth issues out is very imsame as they were in the first quar- portant to help people navigate ter of 2019 when GDP growth was the challenging times.”

Wintrust’s Wehmer: “Give us 3.8 percent and unemployment was 4.3 percent. Discover wrote time to work through it. Don’t off 3.7 percent of credit card loans overreact out of the box.”

4/30/21 4:23 PM

CRAIN’S CHICAGO BUSINESS • MAY 3, 2021 37

A look at 10 hot new Chicago restaurants RESTAURANTS from Page 1 But now, operators of those new restaurants are seeing reservation slots fill up fast. In 2020, 184 restaurants opened in Chicago, compared with 262 in 2019, according to RestaurantData.com. So far this year, 86 have opened. Here’s a look at some of the new dining spots:

Apolonia 2201 S. Michigan Ave. The South Loop restaurant opened in mid-April in a newly constructed space serving coastal European and Mediterranean food. Chef and owner Stephen Gillanders comes from critically acclaimed S.K.Y. and general manager Marta Suchocka was most recently at Stephanie Izard’s Girl & the Goat.

Ever 1340 W. Fulton St. The fine-dining restaurant from Chef Curtis Duffy and co-owner Michael Muser just earned itself two Michelin stars. Ever serves diners eight to 10 courses over about 2½ hours. Price per person is $285, excluding gratuity and drinks. Fine dining has been one of the restaurant categories most ravaged by the pandemic. Ever opened over the summer, then launched to-go options when indoor dining shuttered last fall. It also started selling burgers from a nearby walk-up window, dubbed Reve Burger, which Muser says will stay open. Ever started seating diners again in February and is open Tuesday through Saturday. Menus change frequently.

Doug Psaltis is chef/co-owner at Andros Taverna in Logan Square.

Hinoki Sushiko 1465 W. Willow St. On the first level of this two-story restaurant in the Elston Avenue corridor, a 50-seat lounge serves up Chef Otto Phan’s take on traditional Japanese street foods, plus beer, wine and sake. The second level is a 40-person omakase sushi bar that does just one seating a night serving chef-curated courses. Phan is known for sushi spot Kyoten, which, like other omakase bars in the city, is smaller. Hinoki Sushiko is made to serve larger crowds.

Nobu 854 W. Randolph St. The Japanese restaurant opened on the ground floor of the long-awaited, Robert De Nirobacked Nobu Hotel in October and offered to-go and served hotel guests in their rooms throughout the winter. Being located in a hotel proved to be a huge advantage during the nearly three-month indoor dining shut down, says James Frazey, director of food and beverage. Now diners can eat in the restaurant’s sushi bar or dining room or head up to the Rooftop at Nobu Hotel Chicago. The rooftop has a more lounge-y vibe, with shared plates and cocktails.

Robert et Fils 4229 N. Lincoln Ave. The French restaurant in the

North Center neighborhood recently launched with a fixed takeout menu. Once its patio opens in mid-May, that menu will expand, says owner and chef Rob Shaner.

Think heavy hors d’oeuvres, charcuteries and cheeses, mussels and more. Shaner, who spent his last year of high school in Paris, wants his restaurant to hark back to those French meals he shared with his family in the 1990s, with fewer courses and larger portions.

“I wanted a place that was from a different era and offering the kind of food that I ate when I was there,” says Shaner, who named the restaurant for his late father. Shaner previously was executive chef at the Royal Grocer & Co. and the Kennison. Robert et Fils replaced Japanese-inspired restaurant Kitsune. Shaner hopes to launch indoor dining mid-June.

Rose Mary 932 W. Fulton St. Joe Flamm, former executive chef of Michelin-starred Spiaggia, opened his debut restaurant Rose Mary in late April. Though it was a year behind schedule with COVID delays, Flamm has dreamed of opening his own restaurant since he was 16. “It’s a big deal in general” to open your own restaurant, he says. “But especially right now. We were able to weather that storm, and it didn’t sink us.” The Adri-

PHOTOS BY JOHN R. BOEHM

Andros Taverna 2542 N. Milwaukee Ave. Chef Doug Psaltis was sick of the “Disneyland version” of Greece many restaurants portrayed. Psaltis and his wife, pastry chef Hsing Chen, partnered on Andros, a restaurant that he says “screams of modern-day Athens.” “I feel like we’re ready for the real story,” he says. Psaltis, who is of Greek heritage, previously worked with Lettuce Entertain You Enterprises for almost 10 years (he’s the P in RPM). To pair with menu items such as spicy whipped feta and phyllo spanakopita, Andros Taverna also serves a largely Greek wine list.

atic restaurant serves Italian and Croatian food. (Flamm’s wife has Croatian heritage.) Reservations at Rose Mary book fast; try snagging seats at the bar before the dinner rush. Patio coming soon.

Testaccio 2456 N. California Ave. Testaccio is named after a neighborhood in Rome that owner Aldo Zaninotto says reminds him of Logan Square. “There’s a link,” he says, noting the food-oriented scenes in both places and other similarities. Testaccio focuses on Roman-style cuisine, much of it cooked in a wood-burning oven.

It complements Zaninotto’s other restaurant, the popular Osteria Langhe, which serves northern Italian fare about a mile away on Armitage Avenue. When Testaccio opened last summer, it was patio dining only. It relaunched in February with limited indoor dining. The executive chef is Jacob Solomon, who helped open Dusek’s Board & Beer and is a veteran of Lettuce Entertain You restaurants.

Venteux 230 N. Michigan Ave. The French brasserie is set to open in the Carbide & Carbon Building on Michigan Avenue in mid-May. At the helm is chef Donald Young, who earned a Michelin star at Noble Square’s Temporis. Young trained for six months in France while pursuing a culinary arts degree. Venteux will serve iconic French cuisine such as steak frites, whole duck and oysters, plus take-away lunch options. Venteux will be on the ground floor of the Pendry Chicago hotel and replaces previous tenant Free Rein.

Verve Wine + Provisions 2349 N. Lincoln Ave. Verve comes to Lincoln Park by way of sister bottle shops in New York City and San Francisco; this location adds a restaurant with a small bistro-inspired menu. The chef is Ryan Epp, whose résumé includes stints at Roister, Alinea, Per Se in New York and two-Michelin-star restaurant Miramar on Spain’s Costa Brava.

As a foreclosure moratorium nears end, experts fear many could lose their homes FORECLOSURES from Page 3 percent of U.S. counties “most vulnerable to the economic impact of the pandemic,” according to Attom, a California property data firm.

Attom’s report took into account the proportion of households at risk of foreclosure, the proportion that owe more on the mortgage than the house is worth and the cost of homeownership relative to average local wages.

Black Knight, a mortgage and real estate data firm, reported April 21 that 1.9 million U.S. households with a mortgage were at least 90 days late on their payments. That’s five times the number who were past due on the eve of the pandemic.

P037_CCB_20210503.indd 37

“We’re not going to call it a crisis.

That’s an extreme term that won’t apply,” says Ryan Smith, director of foreclosure sales at ReMax Properties based in Western Springs.

He’s been selling foreclosures since 2004 and was the top seller of foreclosures in Illinois in 2019 and 2020. He forecasts that between 2.5 and 3 percent of homeowners will default after the moratorium lifts.

That’s compared to 5 percent in 2007-08, he says.

Prior to the pandemic, “we were at 0.9 percent, very healthy,” he says.

Among the reasons to expect a smaller wave: The lending industry’s standards are far tighter than they were be-

fore the last crisis—largely as a result of that crash, Geoff Smith says.

Everyone who owns a house rides fast-rising home values upward.

The ability to sell in an up market, which wasn’t an option in the down market that followed the mid-2000s housing crash, might net proceeds that behind-on-payments homeowners could use to make the debt whole on their way out. That’s a brighter exit than foreclosure.

GETTING READY

Nevertheless, both men say it’s appropriate to brace for impact.

Ryan Smith says one tool used to keep people in their houses might, as the law of unintended consequences dictates, wind up turning

some of them out of their homes later.

Mortgage forbearance does not wipe out the homeowners’ mortgage debt; it merely lets them take a break on payments, with the total debt still to be paid down the line. “The longer they stay in forbearance,” Ryan Smith says, “the more they’re going to need to pay it off later.” If homeowners calculate that the sum of the delayed payments is greater than their equity stake in the home—a possibility for people who bought only a few years before the pandemic, he says—they may decide to let the house fall into foreclosure and walk away.

A wave of foreclosures would

mean not only displaced homeowners, but eyesores and possible hazards for their block or neighborhood. It would also lead to logjams in courts in Illinois, which, as a so-called judicial state, requires foreclosures to go through the court system. In nonjudicial states, the foreclosure is strictly a private business transaction—and faster.

With salaries rising slower here in recent years than in boom cities like San Francisco and Austin, “owners likely have less money and fewer resources to stay up to date on mortgage payments if they lose jobs or face other financial issues like large medical expenses,” Attom’s chief product officer, Todd Teta, tells Crain’s in an email.

4/30/21 4:23 PM

38 MAY 3, 2021 • CRAIN’S CHICAGO BUSINESS

United Airlines expects U.S. leisure travel demand to return to normal by summer Seaney says. “They have stimulus checks. They’ve been saving for the past year and not spending.

News on vaccines has been decent.”

It’s not enough to lift United out of the red. Profits won’t reappear until business and international travel begin to recover. But the return of normal summertime leisure demand is a sign that CEO Scott Kirby made the right strategic bets during the pandemic. Kirby kept pilots on the payroll and aircraft out of mothballs in hopes of being ready for the first sign of recovery.

At the same time, the leisure recovery will test the Chicago-based airline’s ability to compete with discounters such as Southwest Airlines, which dominate the vacation market.

“They have a lot of flexibility,” says Henry Harteveldt, president of Atmosphere Research Group in San Francisco. “United traditionally caters to business travelers.

It recast itself to appeal to leisure travelers by adding capacity to leisure destinations.”

With rising demand comes more pricing power. United says it expects domestic leisure fares to be at or above 2019 levels. Seaney says ticket prices to top vacation destinations generally are trend-

ing slightly higher than before the pandemic. But United could lose customers to rivals if fares go too high.

United faces intense competition as aviation emerges from the worst downturn in its history.

Longtime rivals American, Delta, Southwest and Frontier are looking to capitalize on the recovery.

So are new entrants, such as Avelo, which is run by former United Chief Financial Officer Andrew Levy, and Breeze, led by JetBlue founder David Neeleman.

LAGGING CAPACITY

Even with the new flights, United will be flying only about two-thirds of its pre-pandemic domestic schedule in June. American, however, says it will be at 90 percent of its pre-COVID domestic capacity during peak summer travel. United’s main rival at O’Hare International Airport has joined forces with Alaska Airlines and JetBlue, ratcheting up competition at airports such as Newark and San Francisco.

Southwest, the dominant domestic carrier and the other major player in Chicago, has expanded aggressively into 17 airports, including United hubs at O’Hare and Houston’s Bush Intercontinental Airport. It will offer 16 daily flights from O’Hare this summer and 205 at Midway Airport.

BLOOMBERG

UNITED from Page 3

United Airlines CEO Scott Kirby kept pilots on the payroll and aircraft out of mothballs in hopes of being ready for the first sign of recovery.

“It’s not like their competitors were asleep,” Harteveldt says. “I’ll be watching carefully to see how United performs. Does it gain share? What will the revenue picture be?”

Kirby is proceeding cautiously.

“Our business is sort of one-third domestic leisure, one-third domestic business and one-third international,” Kirby told analysts on

the earnings call. “We’ve already said the domestic business and international are down 80 percent.

With two-thirds of your business off 80 percent, it’s really hard for me to make the math work and say 90 percent or 100 percent of the schedule is the optimal answer.”

If United can compete on leisure travel now, it will be in position to really clean up when

business travel starts to rebound later this year before accelerating in 2022, Kirby said.

“We have the biggest business demand. We have the largest international network,” he told analysts. “Those two things are coming back. And when they do, we are going to be in the lead.”

Maybe. But first the recovery in air travel has to get off the ground.

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CRAIN’S CHICAGO BUSINESS • MAY 3, 2021 39

‘Every room has a personality’ in Hyde Park home The eight-bedroom, 19th-century Arts & Crafts house, now on the market for $1.8 million, belonged to renowned University of Chicago Shakespeare scholar David Bevington, who died in 2019 A 19th-century Arts & Crafts house in Hyde Park with many of its original tile, plaster and wood details intact is on the market for the first time since the late 1960s.

The heirs of Peggy and David Bevington are asking $1.8 million for the eight-bedroom home built in 1899 on Blackstone Avenue. It’s represented

by Susan O’Connor of Berkshire Hathaway HomeServices Chicago.

The house has the hallmarks of the Arts & Crafts movement, including finely hand-crafted details like tiled fireplace mantels, wood built-ins and a floor plan that is relatively open for its era. Built in 1899, it was the work of Pond & Pond, brothers and architects who designed all the campus buildings at Hull House and student unions at the University of Michigan, Michigan State and Purdue.

The Ponds were trying to create “a distinctive American style, freed from the constraints of European influences,” along the lines of better-known Louis Sullivan and Frank Lloyd Wright, according to O’Connor, the author of a 2013 book on Hyde Park’s historic architecture.

For University of Chicago history professor James W. Thompson, the Ponds designed the house with an imposing three-story façade that conceals the fact that the house is essentially T-shaped.

The northern portion of the house is just one room deep, which allows daylight into those spaces.

“Every room has a personality. That’s why my parents fell in love with it,” says Steve Bevington, a son of Peggy, a former Lab School teacher who died last year, and David, a University of Chicago scholar on Shakespeare and English Renaissance playwrights who died in 2019.

The couple bought the house shortly after David Bevington joined the University of Chicago faculty, moving from the University of Virginia. The craft finishes were intact in the house at the time, although it was almost seven decades old, Steve Bevington says, and his parents studiously maintained them while raising four children in the house.

The kitchen and bathrooms, Bevington says, “are from the 1960s” and likely to need updating by a buyer.

BERKSHIRE HATHAWAY HOMESERVICES CHICAGO

BY DENNIS RODKIN

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