AUSTIN a Full-Service Hospital

BEARS: Arlington Heights bid forces a tough negotiation with Chicago officials. PAGE 3

JOE CAHILL: A voice is missing in Illinois’ energy debate. PAGE4 CHICAGOBUSINESS.COM | JUNE 21, 2021 | $3.50

WHY YOU CAN’T GET A RIDE IN CHICAGO Slow return of drivers explains long waits and high prices BY A.D. QUIG

AS CHICAGOANS RETURN to o ces, active ride-hailing drivers on the road restaurants and airports, some have at the end of April 2021, down 60 per- griped of trouble hailing once-ubiqui- cent from April 2019. ere are 1,000 tous cabs downtown, as well as long active cabbies—a decrease of 82 per- wait times and higher prices for ride- cent from 2019. share services. But those numbers represent a big In part, the trouble re ects a mis- jump from the early weeks of COVID match in supply and demand: Driv- stay-at-home orders. In April 2020, ers aren’t returning as fast as cus- there were only 15,000 active ride- tomers. e city’s Department of hail drivers and just 700 cabbies. Business A airs & Consumer Pro- tection estimates there were 27,000 See DRIVERS on Page 19 JOHN R. BOEHM R. JOHN Can Insight stop the NEIGHBORHOOD INVESTMENT bleeding at Mercy? New owner has ideas for struggling safety net

BY STEPHANIE GOLDBERG Insight Institute of Neurosurgery A SECOND CHANCE FOR & Neuroscience, which operates e sale of Mercy Hospital & outpatient programs and a 20- Medical Center entrusts one of bed surgical hospital in Michigan. Chicago’s most vulnerable hospi- With 412 beds on Chicago’s tals to a Michigan biotechnology South Side, Mercy presents chal- rm with no experience running lenges that Insight hasn’t faced in AUSTIN a full-service hospital. its home state. e hospital serves Money is vital to any community revitalization. Insight Chicago paid $1 to buy large numbers of low-income pa- struggling Mercy from Catholic tients on Medicaid, which pays Here’s what else is needed, as seen through this hospital chain Trinity Health. hospitals far less than private in- e newly formed nonpro t en- surers. beleaguered neighborhood. PAGE 13 tity is owned by neurosurgeon Dr.

JOHN R. BOEHM R. JOHN Jawad Shah, 54, who also runs the See MERCY on Page 28

NEWSPAPER l VOL. 44, NO. 25 l COPYRIGHT 2021 CRAIN COMMUNICATIONS INC. l ALL RIGHTS RESERVED CHICAGO BOOTH MCDONALD’S INSIGHTS Speeding up the Doing good doesn’t drive-thru: Would have to hurt the you like privacy bottom line. PAGE 8 with that? PAGE 2

P001_CCB_20210621.indd 1 6/18/21 2:52 PM 2 JUNE 21, 2021 • CRAIN’S CHICAGO BUSINESS GREG HINZ ON POLITICS What it’ll take to get an infrastructure deal done Chicago caught a little as under existing law, with glimpse of the future a few generous gures for transit days ago. It was hard not to ($155 billion), Amtrak and be impressed, even if you’re other rail ($120 billion) and not a passenger railroad fan. electric-vehicle infrastructure Right there in Union Sta- ($25 billion). e caucus pro- tion was a sparkling Amtrak posal is roughly similar to a long-distance train, complete plan now being backed by 21 with refurbished passenger bipartisan senators, includ- coach and sleeping cars, ing Illinois’ Dick Durbin, a white linen and china in the Democrat. dining car and a powerful “I’m looking for any way to new, low-polluting locomo- get it done. We can’t aord to

tive up front. Lots more like do nothing,” says Schneider, a BLOOMBERG that is on the way—and to a member of the Problem Solv- lot more cities, from Louis- ers Caucus. e nation really ville and Toronto to Min- needs far more, something neapolis and Iowa City—if like $4 billion, to invest and McDonald’s drive-thru automation Congress approves its plan catch up with items such as for $75 billion in capital ex- deferred maintenance and penses, Amtrak says. reconstruction of roads and But will it? at’s the bil- bridges, but a step toward clashes with privacy concerns lions-and-trillions question that will help, he argues. e as Congress gets down to de- caucus plan includes raising An Illinois law that’s resulted in drawn-out, multimillion-dollar settlements from cision time on President Joe the gas tax and indexing it to Biden’s huge infrastructure ination, a step that won’t be the likes of Facebook and Six Flags is now threatening the Chicago fast-food chain plan in coming days. popular in suburban areas ere’s a compromise to be such as Schneider’s, but BY ALLY MAROTTI the pandemic in the form of same- intelligence voice assistant violates made here—one that, like all that’s better than putting it store sales growth. an Illinois’ law protecting consum- good compromises, will tick on the plastic. Schneider says An Illinois privacy law that has at was the relatively low-tech ers’ biometric information, which o the hard-liners in both the bigger obstacle in passing ensnared Facebook, Six Flags and part. e high-tech part, however, can include data from iris and camps. But in now utterly something is, as usual, the other companies in yearslong could prove to be a legal snag. ngerprint scans, facial maps and toxic Washington, compro- Senate. lawsuits with multimillion-dollar In November, McDonald’s an- voice information. mise has become a dirty Davis is “not optimistic” settlements is now threatening nounced a plan to deploy technol- e 2008 law is one of the strict- word. So where do things that a bipartisan deal can be McDonald’s eorts to reduce its ogy at some stores that allows au- est of its kind in the country. It al- stand? reached. Now the chairman drive-thru times. tomated ordering and payments, lows private citizens, rather than Here’s what I hear, includ- of a subcommittee that deals e Chicago-based fast-food as well as tools that alert crew just governmental entities, to ing thoughts from two Illinois with roads and bridges, and giant has been working for years members when customers are le lawsuits and has turned Illi- congressmen who are sort of the potential chairman of to speed up drive-thrus, a key ele- nearby to ensure fast pickup. nois into a hotbed of legal activity in the middle of this, Demo- the House Transportation & ment of CEO Chris Kempczinski’s A recent lawsuit takes aim at over the issue. Facebook last year crat Brad Schneider of Deer- Infrastructure Committee if plan for revenue growth. e com- technology McDonald’s uses in agreed to pay $650 million to mil- Republicans control pany streamlined menus, getting some drive-thrus that allows voice lions of its Illinois users to settle a IN UTTERLY TOXIC WASHINGTON, the House in 2023, rid of more complicated items, automated ordering. e lawsuit he generally is a and saw its eorts pay o during alleges that McDonald’s articial See McDONALD’S on Page 7 COMPROMISE IS A DIRTY WORD. roads-and-bridges guy and wants to eld and Republican Rodney avoid anything that smacks of Davis of Taylorville, both of the Green New Deal. But he them about as moderate as is an Amtrak fan. He likes the they can be in their parties, idea of public-private part- give or take. nerships as a funding means, Biden started the bidding hedges on a gas tax and says at $2 billion, money for not he’s convinced Democrats only roads, bridges and really want to ram through something big on a party-line airports but transit, trains, wintrust.com/privateclient incentives for high-tech in- vote rather than hacking out dustries like chipmakers and a compromise. “human infrastructure” like The final outcome could senior and child care, all paid go either way. Some law- NEW NAME SAME GREAT SERVICE for partially by reducing the makers on the GOP right big corporate tax cuts Donald want to drive spending Trump pushed through a few numbers way down. Some years ago. Biden since has on the Democratic left want come down to $1.7 trillion. to go the budget reconcilia- Let us re-introduce ourselves. We’ve renamed our Wintrust Wealth Services group to Wintrust Republicans don’t like tion route and pass the big Private Client. We want to make sure you know that we’re dedicated to helping private clients the idea of adding human plan—including human in- infrastructure spending or frastructure—at all costs. In manage day-to-day ﬁnances, strategies for growth, and solutions to protect wealth. With a high- corporate tax cuts at all, and between is Biden, who must touch, white glove experience, you’ll work with experts in this space who craft custom solutions they are leery of spending on keep almost every single to meet your individual needs. anything related to climate Democrat together or settle change. But GOP lawmakers, on a much-reduced plan. at least some of them, have Prognosis? As I’ve said slowly come up on their bid- before, if politicians can’t agree on a plan to cut lots ding for everything else, with Banking products provided by Wintrust Financial Corp. banks. 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P002_CCB_20210621.indd 2 6/18/21 1:31 PM CRAIN’S CHICAGO BUSINESS • JUNE 21, 2021 3 White Claw bulks up for seltzer wars With Big Beer converging on it, the top-selling brand seeks new growth

BY ALLY MAROTTI White Claw is making a post-pandemic push into bars, restaurants and other outlets as new rivals with deep pockets challenge its dominance in the growing hard seltzer market. Competitors including Molson Coors, Anheuser-Busch and Con- stellation Brands already have dented White Claw’s market-leading share of seltzer sales, which plunged to 42 percent from 55 percent in the past year. Experts say newer hard seltzer brands have

been more successful in untapped HENSON ALYCE market niches and at leveraging Lincolnwood Village President Jesal Patel in a vacant building at Ridgeway and Touhy avenues, an area of Lincolnwood that is under development. their parent companies’ robust distribution networks. e competitive onslaught will test White Claw’s ability to stay on top of a hot market it helped launch in 2016. Annual hard seltzer sales in retail stores now top MORE SUBURBS $4.5 billion, according to data from market research rm Niel- sen. Small rms that pioneer lucrative markets often struggle to hold their ground when industry giants take notice of the sector. SEEING GREEN IN WEED Some slide into also-ran status, and others become takeover tar- After watching neighbors rake in tax revenue, holdouts are taking “THE LAST TIME WE gets, including craft brewers such as Goose Island Brewing, which another look at recreational marijuana BY JOHN PLETZ DISCUSSED IT, THERE sold to Anheuser Busch after help- WERE A LOT OF ing establish the market. LINCOLNWOOD IS RETHINKING its stance on weed. marijuana law, Lincolnwood and other com- White Claw’s strategy hinges on e suburb of about 13,000 decided two years munities that rejected recreational weed sales UNKNOWNS. I THINK a big increase in production ca- ago not to allow recreational marijuana sales. are now more open to the idea. pacity to support a move into new After seeing neighboring Chicago, Skokie and “It’s been a couple years since cannabis MOST QUESTIONS HAVE distribution channels and acceler- Evanston indulge and reap the tax benets, Lin- became allowed,” says Lincolnwood Village ate innovation. Its parent compa- colnwood is revisiting the ban. President Jesal Patel. Its plan commission will BEEN ANSWERED.” ny, Chicago-based Mark Anthony With the prospect of 119 new pot shops hold a hearing next month. “ e last time we Jesal Patel, opening up in the city and suburbs after Gov. Lincolnwood village president See WHITE CLAW on Page 29 J.B. Pritzker signs o on changes to the state’s See WEED on Page 29 Bears bid highlights headaches at Soldier Field The team’s o er for Arlington International Racecourse forces another tough negotiation with Chicago ocials about its future at the lakefront stadium

BY DANNY ECKER mate the team could pull in an- stadium, a barrier at which the nually from such a sponsorship team has slowly chipped away, e Chicago Bears’ veiled agreement. While modern sta- most recently in 2015 with an as- threat to move from Soldier diums across professional sports sist from a lease amendment tied Field to the suburbs turns the have become part of miniature to the Lucas Museum of Narra- spotlight back on the issue the entertainment districts that give tive Art that never materialized team has grappled with for years: franchises year-round opportu- next door. Compared to other NFL teams, nities to engage with and milk ey’re the types of issues the they’re nancially hamstrung by revenue from fans, Soldier Field Bears want Chicago ocials to their stadium. has little room for such develop- address once and for all as they e Bears are one of three NFL ment, nor have the Bears been leverage a possible move to teams without a naming-rights allowed to do much with what is Arlington Heights and the pros- deal for their venue, missing out there. en there are long-stand- pect of building a new stadium

on the $10 million to $20 million ing restrictions on signage inside KOONCE/FLICKR JE that industry consultants esti- the Chicago Park District-owned See BEARS on Page 19 The Chicago Bears have long felt hamstrung by their connection to Soldier Field.

P003_CCB_20210621.indd 3 6/18/21 4:19 PM 4 JUNE 21, 2021 • CRAIN’S CHICAGO BUSINESS CHICAGO COMES BACK JOE CAHILL ON BUSINESS An insider’s view of the The only voice not heard in restaurant industry Spring eld’s energy debate There are challenges and opportunities as a huge economic driver revs back up e likely outcome of talks aligned legislators, of course, over a new energy bill in Spring- tout the jobs saved by keeping from the pandemic shutdowns; here’s what’s working for establishments now eld is anybody’s guess at this nuclear plants open. point. What about customers? Do BY EMILY DRAKE AND TODD CONNOR ere’s even a chance lawmak- they think the benets justify ers won’t pass any legislation, the costs? And how do they Chicago Comes Back is a weekly series on ChicagoBusiness.com providing leadership insights to help your which would deal Gov. J.B. Pritz- feel about subsidizing Exelon business move forward, written by leadership consultants Emily Drake and Todd Connor. ker a major setback in his push plants after ComEd admitted to Drake and Connor facilitate Crain’s Leadership Academy. Drake is a licensed therapist, owner of the Col- toward a carbon-free future. a massive bribery campaign in lective Academy and a leadership coach. Connor is the founder of Bunker Labs and the Collective Academy Here’s something you can bet Springeld that gave the utility and is also a leadership consultant. on: If politicians reach a deal, more power to raise rates? Check out previous installments at ChicagoBusiness.com/comesback. your electric bill will rise. Any In most transactions, cus- legislation that passes almost tomers’ opinions matter a lot. EMILY DRAKE: I’m wondering if certainly will include costly new Customers usually can walk June 11—the day the city ocially subsidies for nuclear reactors and away if they don’t like the terms reopened following a global pan- additional surcharges for renew- of a deal. demic—will become an anniver- able power development. ose Electricity customers can’t sary or holiday. Either way, there’s proposals and others on the table walk away. If you want power certainly room to honor the mo- would cost Illinois residents and to run a home or business in ment, if not celebrate. From our businesses nearly $3 billion in the Northern Illinois, you have to vantage point, few industries carry next ve years alone. deal with ComEd. And when the weight and excitement of the “ e proposed energy legisla- state legislators authorize new return like the hospitality indus- tion being circulated will be the utility charges, you have to pay. try. We thought we’d get the per- largest rate hike on consumers Pritzker makes much of the spective of someone who is help- and businesses in history,” a co- fact that his proposals would ing restaurateurs realize dreams: alition of business organizations end the ratemaking regime that Allan Perales, chief operating o- warned in a recent open letter to ComEd obtained by bribery. cer at Goldstreet Partners. Pritzker. So-called “formula” ratemak- How can this happen? It’s just ing approved by Springeld a TODD CONNOR: Amen. And Al- the way public policy is made in decade ago reduced regulato- lan, it’s so good to chat with you Illinois. Powerful interest groups ry oversight of ComEd rates. again. We had the good fortune haggle among themselves ComEd’s charges for delivering of meeting you through Crain’s and send the bill to everybody power climbed 37 percent Leadership Academy in 2017,

between 2011 and 2019, and it’s been a thrill to watch your BOEHM R. JOHN IN MOST TRANSACTIONS, according to a 2020 report leadership evolution, especial- J.P. McIntyre, general manager at Luke’s Lobster, which recently reopened its location on LaSalle on formula rates by con- ly hearing about your role in so Street near Randolph Street for the rst time in more than a year. CUSTOMERS’ OPINIONS MATTER. sumer advocacy group many restaurant owners’ ability Illinois PIRG. to stay open or have an opening cause they’ve left the industry alto- to mention it’s still hard to get outside the circle of inuence. Formula ratemaking has to night in the past year. Let’s start gether. Many owners have to re-es- materials. Outdoor patio space is Even inuential groups like the go, but should be replaced by with a question we rarely ask, but tablish relationships with vendors, the other trend. e city did such Illinois Manufacturers’ Asso- something better for customers. will be helpful as we navigate the too, and maybe reconcile past due a good job of expanding seating, ciation and the Illinois Retail Illinois PIRG warns that Pritz- land of hospitality and real estate: balances. But restaurants that are so as we return and reopen, cus- Merchants Association say they ker’s new ratemaking proposal What do you do? still around today post-pandemic: tomer comfort level can be hon- were shut out of meaningful could lead to even higher rate ey’ve got that survival instinct. ored. And lastly, leasing language: negotiations. hikes than ComEd obtained ALLAN PERALES: I’m so happy to ey are coming up with solutions Where we didn’t have pandemic In this case, seats at the table under the formula system. get the opportunity to talk about to address issues day to day, and language and clauses before, we belong to energy giant Exelon If you think alarm over what’s going on. ere’s a lot to get the adaptive leadership you talk certainly do now. at can add and its Commonwealth Edi- possible rate hikes is the reason excited about as it relates to restau- about so often is really on display. time to negotiations and progress, son subsidiary, environmental legislators haven’t agreed on rants and returning. Navy Pier was Plus, if you have a good reputation, but it’s an important thing to con- groups, labor unions and green nal legislation, you need to jumping the other weekend, and a good culture and pay people sider as a tenant. power companies. A nal bill brush up on Illinois politics. e I can’t wait to see that happening well, you’re going to thrive in this would have something for each holdup is a squabble between more throughout Chicago. Back transition. ED: A lot to consider, and yet we of them. enviros and labor unions over to your question: I help restaura- hear from leaders like Betsy Ziegler Exelon has secured commit- phasing out fossil-fuel burning teurs open new restaurants—and TC: e culture being the dening at 1871 that it’s never been a bet- ments from legislators for $700 plants. e former want a faster close restaurants. But the majority factor mimics so much of what we ter time to start a business. What’s million in subsidies for three phaseout, and the latter want a of my business is opening restau- see across industries. People want your personal optimism level? And of its nuclear plants, on top of slower one. rants and helping them nd loca- environments that support growth, the forecast for your clients? $235 million in annual support Something tells me they’ll tions, especially a rst location. perhaps no matter what the work that ratepayers already shell work it out. It’s easier to reach We scout multiple neighborhoods, is. What other trends are you see- AP: Entrepreneurs are creative, out to prop up two other Exelon agreement when somebody else and I help them negotiate a lease, ing? Or what’s changing around and that creativity has gone a long plants. e subsidies also please is picking up the tab. plan their buildout and get ready their preferences for space? way. Expanded seating, ordering unions because Exelon has Lawmakers may believe for opening. to-go and picking up, liquor to-go, threatened to close the plants they’ve done their jobs if they AP: Like any industry, it’s about these weren’t considerations in the if lawmakers don’t approve reach a deal that satises each ED: We’ve also been watching the short-term versus long-term same way before. e solidarity the payments. Environmental- powerful interest group with a trends around employees’ ability thinking and assessing your risk we’ve witnessed over the past year ists, for their part, are looking stake in energy legislation. But and willingness to return to work, tolerance as a leader and business is a huge asset—focusing on your forward to $200 million a year their job is to make good policy if their jobs were eliminated or owner. e spaces that get leased neighborhood and supporting to nance wind and solar power for the entire state of Illinois. they stepped away for other rea- the fastest are ones that were for- local businesses. I’m optimistic. generation projects. A bill that drives up electricity sons. We know this has been es- mer restaurants because you don’t New restaurant groups are starting, Altogether, the legislative costs in Illinois is bad policy. pecially poignant to watch in the have to take a blank space and too. For example, a former GM of package under consideration Relatively low electricity prices restaurant industry, when things build it out. Owners that closed a restaurant getting together with would add $4 to $5 per month have been an economic advantage shut down but also as things are last year simply left everything the former executive chef of an- to ComEd customers’ bills. for Illinois. Spring eld politicians opening up. What are you seeing? behind: tables, chairs, equipment. other restaurant, they are coming Supporters call it a fair deal, ar- appear willing to horse-trade away ere’s a high probability that a together and opening their rst guing that nuke and renewable that advantage. Higher power AP: e abruptness of opening up space like that will pass inspec- concept. I can see the discipline subsidies benet customers by costs would give residents and Chicago is real. It oers a lot of ex- tions and other regulatory hurdles and the excitement behind these ensuring stable power supplies businesses another reason to leave citement but also challenges. Some quickly. In other words, it’s easier. young, edgling groups, and I’m and helping Illinois meet its the state. ey already have too restaurant owners have employees Buildouts require permits, and the just thrilled I get to be a part of it. carbon-reduction goals. Union- many. who aren’t willing to come back city is backlogged, as are so many ey’re going to own Chicago in because they got another job or be- supply chains, with requests—not ve years and nobody has any idea.

P004_CCB_20210621.indd 4 6/18/21 1:30 PM Making a lasting impact in Chicago

At Bank of America, we have long been committed to advancing racial equality and economic opportunity in the communities where we work and live. Recognizing the urgency of the moment, we’ve expanded our longstanding efforts to drive progress by committing an additional $1.25 billion over five years to create opportunity for Working together people and communities of color. We’re collaborating with a variety By partnering with organizations here in Chicago, we’re continuing to align of organizations to help our our resources to help drive sustainable progress locally. Our investments and community move forward. partnerships will help address critical issues and long-term gaps including: They include: • connecting workers to new skills and enhanced job readiness • expanding affordable housing options for more people Chinese American Service League • ramping up lending and support to local small businesses Association House of Chicago • increasing access to healthcare and addressing food insecurity Institute for Latino Progress We know there’s so much more work to be done. My teammates and I remain Metropolitan Family Services committed to the job ahead. Together with our local partners, we can make a real difference. What would you like the power to do?®

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21cb0262.pdf RunDate 6/21/21 FULL PAGE Color: 4/C 6 JUNE 21, 2021 • CRAIN’S CHICAGO BUSINESS THE TAKEAWAY Jackie Koo

Koo heads the architecture rm Koo, which is behind such bold Chicago buildings as theWit Hotel in the the Loop, where a yellow zig- YOUR VOICE. zag streaks down the glassy facade; the new amoeba-shaped community center at the Chicago Housing Authority’s Altgeld Gardens housing development on the Far South Side; and Sable, a 223-room hotel that OUR AUDIENCE. opened on Navy Pier in March. Her next project is a 25,000-square- foot, $30 million e-sports venue near McCormick Place. Koo, who’s 57 and lives with her husband and son in Edgebrook, started her Join a Select Group of career in advertising. By Dennis Rodkin Thought Leaders > Your rm has designed hotels, You’re the mother of a Our print and digital written roundtable features schools and other building 12-year-old, Nicolas. types. Is there a Koo style that What does he think of provide a unique opportunity to present Crain’s they have in common? you doing an e-sports audience with compelling insights around the most I would say they’re not blank. They’re > venue? not just glass boxes that re ect their As a family, we’ve stayed in important business issues. Secure your spot at surroundings. They have their own hotels that I designed and an upcoming Roundtable and take a seat at the presence and identity. my son is like, “That’s nice, table with other thought leaders in your industry. mommy,” but now that I’m designing an e-sports space, suddenly I’m the Do you two play e-sports cool mom. Upcoming Roundtable Topics: together now? Q Technology: AI I've tried to play with him online a Chicago technology professionals will discuss their visions few times but was hopeless. I watch things that he’s introduced me to. for the next generation of AI, including which applications He’s helped expand my horizons on < have the potential to unlock currently unimaginable what the potential and importance possibilities in technology and business. of e-sports is. He plays Fortnite. In Q April 2020, near the beginning of Business of Cannabis the pandemic, there was a concert Executives will discuss the “green wave,” and its impact on event where rapper Travis Scott local, regional and national economies. was presented doing a concert on Q Fortnite. It was a big onetime event. Wealth Management: Impact Investing Of course the graphics in these games Chicago-area wealth managers will share their insights on are stunning, but what really hooked impact investing, including who it’s best suited to, what types me were the musical events on the Fortnite's party royale island. The Travis of investments are available and more. Scott concert was fantastic and BTS Q M&A Trends debuted a video there. It really opened Chicago executives involved with M&A will share their my eyes. E-sports is a lot more than just gaming. It isn’t just watching thoughts on deal trends, including some of the new winners other people play video games and losers that have emerged in the changing landscape. competitively. It’s evolved into a form of communication that encompasses music and all these other things. It’s a cultural phenomenon that’s part of the future of worldwide cultural communication. >

How have you incorporated that idea into the look or the vibe of the e-sports venue? The concept is about a journey through time. Architecturally, you are entering the existing heavy timber building and going into the modern technological space. >

Have you shown the renderings to Nicolas? Yes, and he thinks they are cool. >

Now that the pandemic is lifting, are there places you hope to travel soon? We had to cancel a trip to Copenhagen at the start of the pandemic, so I still have a hankering to go there, but more To nd out about full benets, rates and how to reserve your spot, immediately we’re going to a wedding in contact Sarah Chow at [email protected] or (312) 280-3172 Marquette, Mich.

P006_CCB_20210621.indd 6 6/18/21 1:28 PM CRAIN’S CHICAGO BUSINESS • JUNE 21, 2021 7 In attempt to speed up drive-thrus, McDonald’s faces scrutiny under privacy law McDONALD’S from Page 2 with certain menu items they’ve identify customers. convenience for the company or the major drive-thru joints man- ordered previously. “is technology was speci - the consumer. aged either at or positive sales lawsuit regarding its facial-tagging ough that may speed up cally developed and deployed in “Certainly customer conve- growth in 2020, according to data feature. Just earlier this month, Six drive-thru times, the lawsuit al- a way that does not identify any nience is signi cant, but any cus- from market research rm Tech- Flags Great America agreed to pay leges McDonald’s failed to inform customers, and the allegations in tomer convenience needs to be nomic. at includes Wendy’s, $36 million to settle a class-action customers that their voiceprint this complaint demonstrate a mis- weighted against the very grave Taco Bell, Chick- l-A, Sonic and lawsuit over its use of ngerprint biometrics are being collected, representation of the technology privacy issues,” Schwartz says. others. scanners at the entry gates. and does not disclose what it does and its purpose,” the statement Drive-thru business is vital for Drive-thrus will likely remain e law requires companies col- with the data or how long it will be says. “We intend to fully defend McDonald’s. Two-thirds of its invaluable resources that chains lecting biometric data to obtain stored. against these claims in court.” restaurants worldwide—that’s are willing to invest in, according prior consent from people. ey Ultimately, the fate of McDon- 25,000—have drive-thrus, accord- to Technomic. Already, compa- must also detail how they’ll use it ald’s with this lawsuit will depend CONVENIENCE VERSUS PRIVACY ing to information the company nies such as Pizza Hut, Chipot- and how long it will be kept. on how exactly the technology e lawsuit was rst led in released in November. During le and Shake Shack announced e new lawsuit homes in on works, says Matthew Kugler, an as- Cook County Circuit Court in April COVID, about 70 percent of sales plans to develop more drive-thrus. voice assistant technology that sociate professor at Northwestern but was moved to federal court in in top markets occurred via drive- McDonald’s plans to roll out its McDonald’s acquired from start- University Pritzker School of Law. Chicago late last month. It seeks thrus. new drive-thru concepts to 10,000 up Apprente in 2019. e tech If it is just transcribing the voices, it class-action status. Attorneys rep- e dependence on drive-thru restaurants worldwide. It is un- analyzes speech signals when a might not violate Illinois’ biomet- resenting the McDonald’s custom- orders during the pandemic was clear how many locations have the customer is ordering, rather than ric privacy law. er who led the lawsuit, Shannon not unusual, especially among voice ordering feature targeted in just transcribing what they say, ac- But if the company is using voice Carpenter, did not respond to re- fast-food restaurants. Nearly all the lawsuit. cording to the complaint. recognition to identify people, it quests for comment. In other words, the assistant “ex- will either need to start abiding Lawsuits involving Illinois’ bio- tracts the customer’s voiceprint by the law’s consent requirements metrics privacy law have thus far or nd a dierent way been focused largely on the collec- THE NEW LAWSUIT HOMES IN ON to speed up drive-thru tion of ngerprints or facial geom- Royal Bank offers commercial loans times, Kugler says. etry, such as through social media VOICE ASSISTANT TECHNOLOGY “McDonald’s needs tagging features. But voiceprints with attractive rates and terms. to know privacy law ex- can be “very alarming,” says Adam THAT MCDONALD’S ACQUIRED FROM ists, but McDonald’s is Schwartz, senior lawyer at the STARTUP APPRENTE IN 2019. not in a corner,” he says. Electronic Frontier Foundation, a Contact Michael Lintvelt, Vice President McDonald’s said in nonpro t that advocates for user a statement that its privacy. 2IƓFHŘ0RELOH biometrics” and obtains identify- voice-ordering system enables au- Biometrics are important to pro- (PDLOPOLQWYHOW#UR\DOEDQNXV ing information on the customer, tomated drive-thru ordering but is tect because unlike a stolen cred- Putting community first since 1887. like age, gender, accent and more, not used to identify customers. It it card or social security number, according to the complaint. e also doesn’t try to match the voice you can’t change your ngerprints, lawsuit also alleges McDonald’s of someone ordering with data on face or voice, he says. at type of incorporates license plate scan- McDonald’s customers. e com- data can be easy to collect with- royal-bank.us ning technology to identify cus- pany also says it does not store out a consumer knowing. Such Member FDIC /RFDWLRQVLQ&KLFDJR:HVWPRQWDQG1LOHV tomers, so they can be presented voice features or voiceprints that technology also typically results in

Blue Cross and Blue Shield Morgan Park Solution Center Our projects are more Impact Project of the Year than just buildings. What we do impacts how people live, work and play. How we do it has the potential to transform the world. We are honored to once again be named Interior Contractor of the Year at the Chicago Real Estate Awards beneﬁtting the Greater Chicago Food Depository.

Oracle Industries Innovation Lab Buid-To-Suit Project of the Year

P007_CCB_20210621.indd 7 6/18/21 3:20 PM 8 JUNE 21, 2021 • CRAIN’S CHICAGO BUSINESS ose with di erent experiences and objectivity can be real assets Customers increasingly expect your company to make a di erence he news is lled these days for supporting social causes. In with major corporations that same A ac survey, the vast Christina Tstepping up to—or being majority of customers (77 percent) Hachikian is pulled into—various social and and investors (73 percent) said a clinical political stances. Coca-Cola’s op- they are motivated by a company’s associate position to Georgia’s new elec- commitment to improving society. professor tion laws is resulting in threats of of strategic boycotts, while Facebook is losing COMMUNITY SUPPORT manage- customers to alternative platforms Businesses can approach this as ment at the since it shut down former Presi- an extension of the support they University of Chicago’s Booth dent Donald Trump’s account. already provide to their commu- School of Business. Small and midsize businesses nities. ey’re no strangers to do- watching all this might be wary nating prizes to church and school to support a cause for fear of los- ra es, purchasing uniforms for

ing customers. A recent survey by youth athletics and so many oth- GETTY IMAGES er worthwhile causes. Keep doing those Advice for small businesses and dedicate toward skill-based vol- balance pro t and purpose.” More YOUR CUSTOMERS, EMPLOYEES AND entrepreneurs in partnership with things, and go further. the University of Chicago Booth unteer work that extends the reach simply, talking about issues you INVESTORS ARE INCREASINGLY ere are ways you School of Business. of your rm. are engaged with in an annual can be responsive to In choosing, pick a few consis- report, company meeting or with EXPECTING YOUR COMPANY TO TAKE AN the issues a ecting tent and targeted approaches that customers can be important to ACTIVE ROLE IN BETTERING SOCIETY. your community and will best support the communities convey what you are doing behind your customer base Assess how you make hiring de- in which your company works. the scenes and might get others insurance company A ac in 2020 in a more active and comprehen- cisions. If your company’s leader- Of course, as you go down this invested in the same e ort. all but con rmed the risks. More sive way. Rather than just taking ship is predominantly white males, path, consider how you share with e point: ese actions don’t than half of respondents said it’s inbound requests, seek out oppor- make an e ort to recruit and pro- your stakeholders the support you have to be controversial. Your important for companies to take tunities directly. mote female or minority execu- are providing. Of growing popu- customers, employees and inves- a stand on social issues, but about Evaluate your suppliers and out- tives. Examine whether the ways in larity is certi cation as a B Corpo- tors are increasingly expecting the same amount said they’ve side vendors. If you want to show which you advertise or screen for a ration, which requires veri cation your company to take an active stopped supporting a business be- support for marginalized commu- position a ect the makeup of ap- that a company meets standards role in bettering society. Doing so cause of its position on an issue. nities, consider minority-owned plicants and look for opportunities for “social and environmental can be good for your communi- Still, there are good reasons for suppliers, service providers, ac- to broaden your reach. performance, public transpar- ty, and it doesn’t have to hurt the a company to consider its options countants and legal services. Give employees paid time o to ency and legal accountability to bottom line.

SPONSORS

P013-P018_CCB_20210621.indd 13 6/18/21 12:47 PM 14 JUNE 21, 2021 • CRAIN’S CHICAGO BUSINESS

CRAIN’S CHICAGO BUSINESS

w AUSTIN: A DEMOGRAPHIC SNAPSHOT Marseil Jackson landed a $250,000 NEIGHBORHOOD Continued from Page 13 city grant for his broadcast studio, A comparison of the Far West Side neighborhood to other areas in the city shows stark differences. art gallery and wellness center. e Building, which the city hopes will and not in school, the study found. owners of popular Lincoln Park spark investment on the corridor e study also found that $150 POPULATION LOSS: The exodus from Austin has far outpaced the city’s decline as a whole. breakfast spot Batter & Berries plan and beyond. Already about 20 proj- million to $180 million—represent- Percentage population change, 2000-18 Total population an Austin opening in the fall. ects are in various stages of comple- ing 85 percent of disposable in- Austin -19.4% 94,762 “I’m excited by the opportunity to tion, including Jones’ sports bar, a come—goes to Oak Park and River walk out the door and go to a coee -6.1% 2,718,555 broadcast studio, a tness club and Forest, where there are eight super- Chicago shop,” Crawford says. “When you a grocery store. markets for two-thirds of the popu- have walkability, that’s safety. Peo- While the $750 million Invest lation. “is is an economic desert,” RACIAL MAKEUP: African Americans make up nearly 80 percent of Austin’s population, compared to about 30 percent citywide. ple are out, moving around, seeing South/West program, which in- says Malcolm Crawford, president each other.” 80% cludes money for infrastructure and of the nonpro t Austin African 79.1% economic development, has been American Business Networking As- 70 Austin Chicago A LONGER TERM HORIZON welcomed, much more is needed, sociation, or AAABNA, and manag- Access to capital has been the experts say. is includes a fresh er for the Chicago Avenue corridor 60 stumbling block inhibiting com- look at the conventional formulas under the Invest South/West pro- mercial investment and home own- used for commercial and mortgage gram. “You want to take someone 50 ership in Austin and other South lending, locating retail stores and out to dinner? You take them to Oak and West Side neighborhoods, but job sites, as well as hiring and train- Park. Want to work out? You do it in 40 nancial institutions and nonprof- ing workers. Leadership and per- Oak Park.” 30 32.8% its are taking a fresh look. ey are sistence are needed too. But the neighborhood didn’t give 29.0% 29.7% joined by a new generation of bene- ere has to be a balance in the up on itself. Starting around 2010, 20 factors such as family oces and search for returns, says Brian Fabes, community groups began collab- socially minded funds. 10 14.4% managing director of the Corporate orating and formed Austin Com- 4.8% Of BMO Harris’ $5 billion eq- Coalition, an alliance of Chicago-ar- ing Together, a nonpro t network 0.5% 6.4% 1.1% 2.1% uity initiative, $3 billion is slated 0 ea companies attempting to reduce of some 50 organizations. With a White non-Hispanic Hispanic or Latino Black non-Hispanic Asian non-Hispanic All other categories for community development and inequities in the region. “If we’re $50,000 grant from the nonpro t neighborhood revitalization. An ad- only maximizing short-term nan- community development organiza- HOUSEHOLD INCOME: The median income of $33,420 lags the citywide median of $55,198. ditional $500 million is designated cial returns, we will not get grocery tion LISC, the members developed speci cally for Black- and Latino- stores in places where people are the Quality-of-Life Plan that out- 40% owned commercial businesses. hungry,” he says. lines priorities for economic devel- 39.2% e special-purpose credit pro- Michael Davidson, senior direc- opment, education, housing, public Austin Chicago gram for Black and Latino borrowers tor of community impact for the safety and other concerns. Follow- 30 is to “make sure we provide access Chicago Community Trust, adds, ing the report’s 2018 publication, to capital for them to invest in their “e private sector needs to step up. the group formed task forces to en- businesses in way we haven’t done Open a (bank) branch. Lend to an gage with funders, including BMO 25.4% 25.3% in the past,” says Vice Chair Eric entrepreneur.” Harris, which donated $10 million 20 20.5% Community activists in Austin ac- through United Way to help imple- knowledge they wouldn’t be riding ment their plan. 14.6% 15.6% 14.3% a wave of momentum without the Meanwhile, newly elected mayor 13.2% 10 11.0% corporate come-to-Jesus moment Lightfoot vowed to place a priority 9.4% following the murder of George on neglected South and West Side 7.8% Floyd and recognition of how in- neighborhoods, so there was “a 3.7% 0 equality is baked into the economic beautiful convergence of interests,” Less than $25,000 $25,000-$49,999 $50,000-$74,999 $75,000-$99,999 $100,000-$149,999 $150,000 and over system. Since then Chicago compa- Shields says. nies—and rms across the coun- Chicago Avenue emerged as a try—have pledged billions of dollars strong candidate for redevelopment JOB STATUS: About 56 percent of Austin’s population is the labor force, compared with about 67 percent citywide. to advance racial equity. dollars because of its proximity to Share of labor force employed* JPMorgan Chase has committed mass transit, robust trac counts Austin 86.4% $800 million locally to be invested and availability of public land, says Chicago 91.0% in Black, Latino and other under- Maurice Cox, who joined the city as served communities by 2025. Dis- planning and development com- Share of labor force unemployed* cover Financial Services is opening missioner in 2019. Austin’s Quality- Austin 13.6% a call center in Chatham to employ of-Life Plan was comprehensive, he 1,000 workers by 2024. And BMO says, but needed to identify a start- Chicago 8.9% Harris has a $5 billion, ve-year ing point. “Residents advised us to *Does not include employed population in the U.S. armed forces. pledge to enable inclusive econom- start at the Laramie Bank, an archi- ic recovery, part of which compris- tecturally signi cant building that EDUCATION LEVELS: Austin exceeds the city in the percentage of residents with a high school diploma or equivalency but falls behind in the percentage es a program to improve access to has been derelict for too long.” e capital for Black- and Latino-owned city solicited proposals to redevelop with a bachelor’s degree. small businesses. the building and also identi ed 10 40% Will that be enough? Or will the properties along Chicago Avenue Austin Chicago private sector lose interest and pa- available for development. 35.3% tience? “I do feel like there is a light e team from Heartland Hous- 30 shining on Austin. ings that folks ing and the Oak Park Regional have been working on are culmi- Housing Center in March bested SUPPORT WHERE IT nating into a moment,” says Darnell six competing proposals with a $38 20 22.9% 23.2% 22.7% Shields, executive director of the million plan that calls for a bank 20.2% nonpro t Austin Coming Together. branch, coee shop, business in- 17.6% “We need long-term investment. It cubator and an adjacent building 15.5% 15.6% MATTERS MOST can’t be one or two years.” with 76 aordable apartments and 10 a parking structure. e project is 9.1% STARTING POINT: LARAMIE BANK expected to be completed in mid- 7.1% 5.7% Over the past 20 years, the com- 2023. 5.0% Community commitment has been one of the guiding principles of our framework 0 munity’s population declined near- “It should be a business and - Less than high High school graduate Some college, Associate Bachelor’s Graduate or since our inception. We believe our banks can’t truly serve our area without giving ly 20 percent to 95,000. Of Chicago’s nancial-services hub,” says Athena school graduate or equivalency no degree degree degree professional degree 77 community areas, Austin came Williams, executive director of the something back. We must be good citizens, and encourage local participation and in 12th for violent crimes per capita Oak Park Regional Housing Center Sources: U.S. Census Bureau, Chicago Metropolitan Agency for Planning and American Community Survey. Covers the period 2014-18. support. We’re proud to partner with local organizations dedicated to meeting the in 2017, with 2,096 per 100,000 res- and a longtime Austin resident. “It’s educational, economic, and equity needs of our communities. As a bank built to idents, according to the communi- a place for people to come in have and increase the tax base to moti- late further development. e hope keep residents in the neighborhood ty’s Quality-of-Life Plan, published their coee and do their banking.” vate private investment. “You want is that Austin will look like Oak Park, and draw visitors, while celebrating serve Chicago, we are committed to our city: to its continued growth and success, in 2018. e community child pov- e project is being funded by a retailers and banks feeling safe in or any other neighborhood that’s African-American food, art and cul- to economic development, and to the empowerment of all its neighborhoods and erty rate is 44 percent, as compared mix of tax credits, grants and dona- their investment, that the demo- thriving and self-sustaining.” ture. e AAABNA is teaming with to 31 percent for Chicago overall. tions, says partner Earl Chase, exec- graphic base is a good target,” Chase Corridor manager Crawford developer Lennox Jackson to build the people in them. Banking products provided by Wintrust Financial Corp. banks. Six in 10 men in the community utive director of Heartland Housing. says. “is project plays a small role re-imagines the Chicago Avenue a mixed-use project with 30 con- between 20 to 24 were unemployed e goal is to create a critical mass in that. If it’s catalytic, it will stimu- stretch as “Soul City,” which will dos and 10 retailers. Entrepreneur

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w Marseil Jackson landed a $250,000 Smith. e bank is training branch alternative analytics, private-sec- It took a while for Discover man- Turning around Austin and oth- AUSTIN: A DEMOGRAPHIC SNAPSHOT city grant for his broadcast studio, managers to provide more exibili- tor investors need to adopt a lon- agers to warm up to the idea of a call er neighborhoods also will require A comparison of the Far West Side neighborhood to other areas in the city shows stark differences. art gallery and wellness center. e ty, he adds. BMO also is investing in ger-term horizon than the typical center in Chatham. “ e real estate leadership and persistence. Plan- owners of popular Lincoln Park private-equity and venture-capital ve to seven years. “Often in low-in- team kept bringing us great build- ners point to the experience of POPULATION LOSS: The exodus from Austin has far outpaced the city’s decline as a whole. breakfast spot Batter & Berries plan rms that support minority- and come communities, you might need ings in River North,” Hochschild Pullman, where U.S. Bank invested Total population an Austin opening in the fall. women-owned businesses. 10 to 15 years.” says. “But once people understood more than $100 million, including 94,762 “I’m excited by the opportunity to Developers and the retail chains Equally important is opening the vision, they were hugely sup- a 180-acre plot of land and $50 mil- walk out the door and go to a coee they’re courting need a more ex- access to good-paying jobs with portive.” One of the managers hired lion in New Markets Tax Credits. 2,718,555 shop,” Crawford says. “When you pansive formula for assessing op- benets, which paves the way for for the center said he could be a bet- e eort—which took the better have walkability, that’s safety. Peo- portunity and risk. National chains homeownership and savings. “How ter father to his daughter because part of 10 years—was spearheaded RACIAL MAKEUP: African Americans make up nearly 80 percent of Austin’s population, compared to about 30 percent citywide. ple are out, moving around, seeing use yardsticks that are specic and do we get people from the neigh- he wouldn’t have the 1½-hour com- by the nonprot Chicago Neighbor- each other.” unyielding, says Calvin Holmes, borhoods into the hot job market mute that he has now, Hochschild hood Initiatives, headed by com- president of the nonprot Chicago downtown—or bring the jobs to the adds. munity development veteran David A LONGER TERM HORIZON Community Loan Fund, or CCLF. neighborhoods,” Holmes says. “We Corporations also are reconsid- Doig. It attracted more than $340 Access to capital has been the ey insist on a certain population need to provide economic anchors ering the traditional hiring criteria million in local investment and stumbling block inhibiting com- density and minimum household in the neighborhoods to keep peo- for entry-level jobs, which typically created more than 1,580 jobs. e mercial investment and home own- income. ple in Chicago and not have them led them to recruit at four-year uni- redevelopment landed a Walmart, ership in Austin and other South He points to developer Leon move elsewhere.” versities. A network of more than 40 a Whole Foods distribution center and West Side neighborhoods, but Walker’s (see Page 16) successful Some CEOs have concluded it companies led by Aon, Accenture and a plant operated by Method, nancial institutions and nonprof- courting of Starbucks for the En- makes sense to bring jobs to the and Zurich created an apprentice a manufacturer of green cleaning its are taking a fresh look. ey are glewood Square shopping center, community rather than require em- network that establishes alternative products. joined by a new generation of bene- for which CCLF was a funder. De- ployees travel hours to a job site. pipelines. Aon’s program provides Neighborhood turnarounds re- factors such as family oces and spite an anemic average household When Discover CEO Roger Hoch- paid entry-level jobs to students at quire patience, Cox says, adding: socially minded funds. income of $29,000 within 1 mile, schild concluded in 2019 that the Harold Washington College while “You have to take the long view, Of BMO Harris’ $5 billion eq- compared to the citywide median company’s next call center needed they attend school. but there are incremental steps in 2.1% uity initiative, $3 billion is slated income of $62,000, a deeper analy- to be on the South or West Side, he Resources need to be coordinat- between.” For example, the city in- All other categories for community development and sis showed there were 1,000 families ran into institutional resistance. ed to enhance private investment, vested $250,000 in a pop-up plaza neighborhood revitalization. An ad- in the densely populated neighbor- Site location teams typically seek says MarySue Barrett, president of opening this month. out neighborhoods with top high the Metropolitan Planning Coun- “You can show progress every HOUSEHOLD INCOME: The median income of $33,420 lags the citywide median of $55,198. ditional $500 million is designated hood earning more than $50,000. specically for Black- and Latino- is gave Starbucks the condence schools, solid infrastructure and cil. Tax credits can be directed to month—it doesn’t take 10 years to owned commercial businesses. to open in the center alongside a ample transportation, which per- workforce training, transportation get businesses into empty store- e special-purpose credit pro- Whole Foods and Chipotle. petuates the imbalance, Hochschild and housing assistance—a “wrap- fronts,” he says. gram for Black and Latino borrowers “DL3 (Walker’s development says. “ ose who are close to jobs around approach,” she says. For It’s helpful to have cranes working is to “make sure we provide access rm) used alternative analytics are close to even more jobs, while example, if workers at a call center and scaolding on buildings. “It’s to capital for them to invest in their to build a case that these retailers people living on the South and West or a downtown oce can get their part psychology, part reality,” Cox businesses in way we haven’t done could be successful,” Holmes says. sides have multihour commutes,” transit subsidized, that would go far says. “People see that something is in the past,” says Vice Chair Eric Besides being willing to use those he says. to help workers build savings. happening.”

14.3%

$150,000 and over

JOB STATUS: About 56 percent of Austin’s population is the labor force, compared with about 67 percent citywide.

91.0%

EDUCATION LEVELS: Austin exceeds the city in the percentage of residents with a high school diploma or equivalency but falls behind in the percentage with a bachelor’s degree. SUPPORT WHERE IT

15.6% MATTERS MOST

Community commitment has been one of the guiding principles of our framework Graduate or since our inception. We believe our banks can’t truly serve our area without giving professional degree something back. We must be good citizens, and encourage local participation and support. We’re proud to partner with local organizations dedicated to meeting the educational, economic, and equity needs of our communities. As a bank built to keep residents in the neighborhood and draw visitors, while celebrating serve Chicago, we are committed to our city: to its continued growth and success, African-American food, art and cul- to economic development, and to the empowerment of all its neighborhoods and ture. e AAABNA is teaming with developer Lennox Jackson to build the people in them. Banking products provided by Wintrust Financial Corp. banks. a mixed-use project with 30 con- dos and 10 retailers. Entrepreneur

P013-P018_CCB_20210621.indd 15 6/18/21 12:47 PM 16 JUNE 21, 2021 • CRAIN’S CHICAGO BUSINESS

CRAIN’S CHICAGO BUSINESS

TRANSPORTATION Ditch ‘cars rst’ mentality to achieve equity his year our country commemo- audible as we reect on 2020’s conver- rated the centennial of the Tulsa gence of the COVID-19 pandemic and TRace Massacre. On June 1, 1921, the racial justice protests. a well-organized white mob killed While racial massacres and lynch- between 100 and 300 people and ings grabbed headlines, more subtle destroyed Tulsa’s Black commercial and pervasive acts of racism through district, burning to the ground more public policy took place throughout ridors and neighborhoods steadily de- Which policies work? obsolete rules that govern development than 1,200 homes. In one day, the the 20th century. In the 1940s and cayed, and blocks that once brimmed My organization, Elevated Chicago, is near transit in Chicago. Greenwood District, known as “Black ’50s redlining, contract-buying and with stores, theaters, restaurants and betting on a new tool to address racial Instead of a “cars- rst” mentality, Wall Street,” disappeared entirely. “land clearance” and “redevelop- community institutions turned into inequities and bring back the splendor we prioritize people walking, biking Roberto Requejo As a prelude to this genocidal act, in ment” laws targeted communities vacant land and empty buildings, de- of our city’s historically Black, Asian and and using public transportation. is program director 1919 white mobs left 1,000 Black fam- of color to enrich white real estate spite their historical signi cance. White Latinx enclaves: equitable transit-ori- Instead of banning apartments and of Elevated ilies homeless during Chicago’s Red agents, developers and lenders. residents took the highways to the sub- ented development, or ETOD. e businesses near transit, a common oc- Chicago. Summer, one of more than 30 instanc- Beginning in the 1960s and ’70s, urbs or hunkered down in white-only organizations in our coalition believe currence in much of Chicago, we en- es of attacks on African American lives, highways were built on and across neighborhoods in the city. that we can only counteract explicitly courage those vital land uses adjacent businesses and homes in American Black and Latinx neighborhoods as Today, many of us wonder: How racist policies with explicitly anti-racist to train stations and bus routes. And cities, many still struggling with the public transit there was dismantled and can we repair the damage done? What ones, built by and for people of color. instead of bringing proposals from devastation of the 1918 u pandemic. public housing neglected and left to is the responsibility of white-led orga- at’s why we partnered with the oce outsiders to communities of color, we Echoes of these horri c events are still deteriorate. riving commercial cor- nizations in these restorative eorts? of Mayor Lori Lightfoot to change the invest in developments co-owned by

IMPACT INVESTING

Venture development: A new tool for urban revitalization RISE f you’ve never heard of venture is growing national interest in Venture developers are uniquely appreciate the venture development development, you will. It could the welfare of disinvested urban positioned to identify and success- model, and we believe it is important TOGETHER. play a major role in Chicago’s markets translates into a diverse co- fully pursue opportunities for private to share with others the opportunity I CLAYCO RISING is the most future. hort of funders inspired to co-invest investment in communities rising to think dierently about catalyz- Across the country, municipalities in real estate development projects out of economic stagnation. ing transformative change in urban comprehensive diversity and economic development prac- located in urban neighborhoods. Venture developers have the abil- neighborhoods. and inclusion program in the titioners are increasingly looking to ose funders include govern- ity to manage the needs of a wide e current wave of private-impact partner with market forces to stimu- ment, foundations, commercial range of investor and stakeholder investors seeking to deploy capital in industry and is the culmination late economic development in urban banks, businesses, accredited interests and to understand the im- socially responsible projects oers of 25 years of creating “red zone” neighborhoods. investors, high-net-worth individuals portance of development based on one such opportunity to scale the meaningful opportunity and Leon Walker is Red zones are parts of the city and anchor institutions. e industry a community’s needs, and they are work that venture developers are managing partner where poorer people tend to live and is starting to see the integration of willing to take short-term nancial pursuing in historically disinvested enduring structural change for of DL3 Realty in redevelopment doesn’t happen as public and foundation capital within risks in lower-income neighbor- communities across America. our employees, our minority- Chicago. often, if at all. a framework designed to induce both hoods to achieve higher long-term Impact investors provide a critical Together owned and women-owned Residents in what we call the city’s private capital and measurable social investment returns. pressure test for venture develop- “green zones” generally have higher impact. Like venture capitalists, venture ment, and they should consider business partners, and the incomes, and their neighborhoods At the same time, an emerging developers are willing to place bets partnering with an established ven- communities where we live are often in better shape. e re- group of venture developers in the on future growth, appraise risk in ture developer who can oer them and work. Leveraging our newed desire to collaborate with community development industry a disciplined manner and leverage a viable strategy to fund nancially private investors is driven in part by a is tapping private-impact capital to their own knowledge and expertise rewarding projects that also serve as We Build vast resources and strong philosophical shift that views inclu- accelerate revitalization in economi- to support an investment over time. a catalyst for transformative change. partnerships, we are working sive development in “red zones” as cally stagnant neighborhoods. An in- Despite the earnest eorts of Over time, impact investors should toward one core purpose - key to improving regional economies. creasing number of impact investors, government, philanthropy and further enable venture developers by Private investment in low-income including private foundations, family grassroots community organiza- moving past project-based funding lifting up others and helping markets is not entirely new. His- oces and high-net-worth individ- tions, most rising neighborhoods are to participating in integrated capital them break through and rise torically, it has been driven by tax uals, are seeking new opportunities overlooked by mainstream busi- stacks that can be used across a se- above the barriers of race, policy. Government subsidies, such that yield both nancial and social nesses and private-equity investors ries of complementary, place-based Opportunity returns. Venture who perceive them to be too risky to developments. income, and gender. VENTURE DEVELOPERS FIND OPPORTUNITIES FOR development is warrant a real estate investment. As impact investors become more where the inter- To be economically viable, real es- con dent in a venture developer’s We ask you to join us in helping PRIVATE INVESTORS TO PUT CAPITAL TO WORK IN ests of these two tate developments in lower-income ability to use a re ned set of invest- drive real positive change and groups intersect. neighborhoods will likely always ment criteria to appraise risk and to build a safe, equitable, and UNDERSERVED URBAN NEIGHBORHOODS. Venture need some level of public support its commensurate return in urban For Everyone diverse workplace for all! developers nd and mission-driven capital. markets, they should support an as the federal Low-Income Housing opportunities for private investors to However, if projects can also be equity fund that venture developers Tax Credit, New Markets Tax Credits put capital to work in underserved positioned to attract private dollars can use to build a pipeline of new and Section 1031 exchanges, remain urban neighborhoods. By over- that serve not just as an investment developments. important sources of equity capital looking these communities, private in the project but also as an equity All told, the transformative power and have helped to leverage private investors often miss out on opportu- investment in the neighborhood, of venture development could very investment for real estate develop- nities to invest in areas that are be- then holistic, equitable development well hold one of the most important claycorising.com ment in low-income neighborhoods ginning to move toward higher levels becomes far more scalable. keys to the kind of future our city for years. of inclusive economic growth. At DL3 Realty, we have come to deserves.

P013-P018_CCB_20210621.indd 16 6/18/21 12:48 PM CRAIN’S CHICAGO BUSINESS • JUNE 21, 2021 17

and from the station safer and more ELEVATED beautiful through art, culture and trac calming; planting sunow- CHICAGO IS er elds in vacant lots; turning an empty school into a climate-resilient PARTNERING business incubator; reviving a historic WITH THE CTA station as commercial space— the list goes on. ey are not alone. MAYOR’S Other organizations led by people of color, like Endeleo Institute, OFFICE TO the Foundation for Homan Square and the Gar eld Park Community CHANGE THE Council, are testing ETOD solutions OBSOLETE in the West and South sides, spurring development that is healthy, climate RULES THAT resilient and well connected to jobs. e best way for government, GOVERN corporations, anchor institutions and philanthropy to start repairing the un- DEVELOPMENT speakable horror of race massacres and NEAR TRANSIT insidious consequences of racist policies perpetrated over the past century is IN CHICAGO.

SANDRA STEINBRECHER, JAMES GUYTON AND DARIS JASPER DARIS AND GUYTON JAMES STEINBRECHER, SANDRA by reinvesting in communities of color. Community organizations know Which policies work? obsolete rules that govern development residents to avoid displacement. community leaders in our coalition the ingredients for success because My organization, Elevated Chicago, is near transit in Chicago. Chicago’s new ETOD Policy Plan, are hard at work shaping a renewed they enjoyed them in the past: quality betting on a new tool to address racial Instead of a “cars- rst” mentality, created by more than 80 people and vision. e Green Line South Com- transit; safe and walkable streets; gen- inequities and bring back the splendor we prioritize people walking, biking organizations and supported by many munity Table, convened by poet and tle urban density; and a healthy mix of our city’s historically Black, Asian and and using public transportation. more, was adopted in 2020 and is now activist Leslé Honoré and including of homes, commerce, green spaces Latinx enclaves: equitable transit-ori- Instead of banning apartments and being implemented by the Chicago residents and Black-led organizations and cultural institutions. ented development, or ETOD. e businesses near transit, a common oc- Transit Authority and the city depart- like Emerald South Collaborative, is What communities of color need organizations in our coalition believe currence in much of Chicago, we en- ments of Housing, Transportation, collaborating with the Chicago Metro- to restore their stolen vitality are that we can only counteract explicitly courage those vital land uses adjacent and Planning & Development. politan Agency for Planning, the city, sizable and steady investments, new racist policies with explicitly anti-racist to train stations and bus routes. And In Washington Park, the CTA Gar- philanthropy and businesses. development rules like ETOD and ones, built by and for people of color. instead of bringing proposals from eld Green Line station was once the Using a modest grant from Elevat- the self-determination that comes at’s why we partnered with the oce outsiders to communities of color, we gateway to a successful Black enter- ed, they have leveraged millions of with real equity. It is up to all of us to of Mayor Lori Lightfoot to change the invest in developments co-owned by tainment and business district. Today, dollars. ey are making the walk to support their success.

Venture development: A new tool for urban revitalization RISE appreciate the venture development model, and we believe it is important TOGETHER. to share with others the opportunity to think dierently about catalyz- CLAYCO RISING is the most ing transformative change in urban comprehensive diversity neighborhoods. and inclusion program in the e current wave of private-impact investors seeking to deploy capital in industry and is the culmination socially responsible projects oers of 25 years of creating one such opportunity to scale the meaningful opportunity and work that venture developers are pursuing in historically disinvested enduring structural change for communities across America. our employees, our minority- Impact investors provide a critical Together owned and women-owned pressure test for venture development, and they should consider business partners, and the partnering with an established ven- communities where we live ture developer who can oer them and work. Leveraging our a viable strategy to fund nancially rewarding projects that also serve as We Build vast resources and strong a catalyst for transformative change. partnerships, we are working Over time, impact investors should toward one core purpose - further enable venture developers by moving past project-based funding lifting up others and helping to participating in integrated capital them break through and rise stacks that can be used across a se- above the barriers of race, ries of complementary, place-based Opportunity developments. income, and gender. As impact investors become more con dent in a venture developer’s We ask you to join us in helping ability to use a re ned set of invest- drive real positive change and ment criteria to appraise risk and to build a safe, equitable, and its commensurate return in urban For Everyone diverse workplace for all! markets, they should support an equity fund that venture developers can use to build a pipeline of new developments. All told, the transformative power of venture development could very well hold one of the most important claycorising.com keys to the kind of future our city deserves.

P013-P018_CCB_20210621.indd 17 6/18/21 12:48 PM 18 JUNE 21, 2021 • CRAIN’S CHICAGO BUSINESS

CRAIN’S CHICAGO BUSINESS

COMMUNITY VOICES Buying back the block

he movement to “buy back the together, the ve of us always felt like THESE FIVE block” is a call to action to put a community because we supported DEVELOPERS TBlack communities into Black each other and shared a vision: uplift- ownership. It’s about keeping the ing and investing in the communities PURCHASED 12 resources generated in Black commu- where we live and grew up. nities within those communities, ben- One day we put together our ABANDONED efiting the people who live and work numbers and realized that our work LOTS WHERE there rather than watching dollars had created more than $100 million drain to outside owners who have lit- in Black wealth and is generating $1.5 THEY PLAN TO tle interest in the community beyond million in annual tax revenue. making a return on their investments. at’s when we realized: We could BUILD STATE In West Woodlawn, where too many either stay in our own lanes, doing houses sit vacant and abandoned, pretty well independently, or we Bottom row, from left: Sean Jones, Bonita Harrison and DaJuan Robinson. Top OF THE ART we’re answering that call to action in could pool our skills and resources row, from left: Keith Lindsey and Derrick Walker. ey are real estate developers AFFORDABLE a literal way—by purchasing and re- and pour them into a community that who build aordable and market rate developments on the South and West sides. developing 12 vacant lots on the 6300 needed them, maximizing our impact HOMES. block of South Langley Avenue. on individual lives and an entire com- community, helping to ensure that this block. We know that a large- We’re ve Black community devel- munity. So we bought a block. the reach of our project ripples to as scale project like this has the power opers who have worked independent- rough the Land Bank, we pur- many Chicagoans as we can reach. to attract more investment to West ly for years, cumulatively rehabbing chased 12 abandoned lots where we’ll Architects, accountants, attorneys, Woodlawn, which has boarded up hundreds of vacant housing units soon build new, state-of-the-art homes carpenters, landscapers, HVAC profes- and vacant homes on nearly every into modern homes across Chicago’s in a community that desperately needs sionals, plumbers, electricians, security block. A nearby commercial corridor South and West sides in communities quality and a ordable housing. sta —an all-Black team reective of on 67th Street is also ripe for redevel- like Chatham, Roseland, East Gareld ese transactions would not have this community will transform this opment for Black-owned businesses. Park and Englewood. been possible without the Land Bank, block from top to bottom, creating over And we know it will happen; de- We acquired many of these which removes enormous barriers 150 jobs before we’re done next year. velopment breeds development, and properties through the Cook County from the process of acquiring vacant is is where we will have some of development breeds stability. Each Land Bank Authority, which exists homes and clearing title without us- the greatest impact: employing for- new owner is an anchor that holds to address the blight created by the ing any taxpayer money. Without the merly incarcerated citizens, who often our neighborhood in a safe harbor economic housing crisis of 2008. By Land Bank, these homes would have struggle to move forward without ahead of the next economic crisis. being intentional about empowering either remained abandoned or been much help once they’re outside; older Until then, we’ll build up our neigh- developers who know their commu- purchased by a large developer who citizens, who may have a hard time borhoods one block at a time. And nities, the Land Bank is a true partner had the resources to sit on them for nding work; and those who haven’t when the nearby homeowners need to “little guys” like us and a true part- years until gentrication guaranteed a had many opportunities but who, a little help, perhaps with cutting the ner to Black neighborhoods where hefty return. once given a chance, nd tremendous grass or shoveling the snow, we’ll tax-delinquent properties and vacant Not us. Our architect is already pride and do an outstanding job in have our crews do that, too. Because land are often left to decay for years. working on design concepts. We building up the neighborhood. that’s what neighbors do. at’s what Developers can be competitive, but will, as always, hire from within the For us, our work isn’t just about it means to be part of a community.

URBAN PLANNING Gentri cation is the rst conversation to have one-size-fits-all approach to the community and provide a ladder for local residents to build a healthy deserve more airtime to strengthen the neighborhood revitalization to a future in a variety of professions, community—nature areas, parks, narrative of hope and success in the Adoes not automatically lead to including entrepreneurship. Job op- playgrounds, recreation and com- disadvantaged communities. It is time thriving neighborhoods. As Chicago portunities should be focused around munity centers, grocery stores and to tell the stories of the community’s gears up for change in the policies creating a public realm that exudes restaurants, community gathering growth and success from within rather and programs to reverse decades of the notions of care and participation, areas. All economic and public realm than promote a narrative generated by disinvestment through the Invest where safety of the neighborhood is investment will ensure healthy, happy special interests. South/West initiative, with ideas implemented by the residents. Exist- and thriving neighborhoods. generated from an amazing local and ing societal building blocks should be 5. Gentri cation will be the outcome if nationwide talent pool of planners and used to create safe neighborhoods. 3. An equitable society needs we do not integrate equitable policies Manisha Kaul is urban designers, there are key things mixed-income neighborhoods. and enforce them. While all the oppor- principal/Chicago that need to be kept in mind. While 2. Community needs to play an Development in the South and West tunities I’ve listed are important for cre- studio director at public-private partnerships are essen- integral role in rethinking its future. sides should be centered around creating resilient, symbiotic and regenera- Design Workshop, tial to revitalize communities, other Providing equitable and hands-on op- ating mixed-income neighborhoods tive neighborhoods, the single greatest an international critical factors need to be embedded in portunities for residents to contribute with a range of housing opportunities. thing that planners and designers of landscape archi- the process of creating framework for ideas to creating the framework and Opportunities need to be created so South and West Side communities need tecture, planning healthy and equitable communities. vision not only allows them to become that all residents of the neighbor- to be cognizant of is that gentrication and urban design more invested in their neighborhood’s hoods have equitable access to enjoy is imminent if we don’t build in strate- rm. 1. Growth from within is a sustain- vision but also generates a wealth of and participate in the change and gies to ensure that the transformation of able way to launch a successful great ideas—many times emanating success. We have to intentionally cul- neighborhoods keeps pace with success revitalization program. Access to from unexpected quarters. Other cities tivate opportunities for people across and the growth of families that inhabit a ordable home ownership and job like New York, Boston, Philadelphia the economic spectrum to live and them. Employment opportunities are opportunities within the neighbor- and Detroit have successfully imple- thrive side by side. critical to maintaining this balance. We hoods will be helpful in elevating the mented programs ranging from urban should demand that private investors community as a whole and reinstate rewilding to food harvesting that takes 4. Narrative of success is a story such as corporations be committed to the dream of home ownership. Own- advantage of available vacant lands, worth sharing. Perception drives nar- creating equitable, diverse and vibrant ership of and connection to the land including tiny rooftops and backyards. ratives about neighborhoods enough communities and prioritize the growth is essential to create a framework of ese programs have not just to drown the success stories. To proac- of existing community members while rootedness and a stake in the success helped create investment in the land, tively change perceptions, we need to they are focused on making neighbor- of the neighborhood fabric. but also provided tangible health highlight the achievements of individ- hoods attractive for future residents. Maximizing access to and avail- benets to community members. As uals and businesses that are striving Gentrication is a discussion that needs ability of apprenticeship and job pro- anticipated investment pours in, it every day to make a di erence in their to happen before investment and trans- grams will engage the people within must be paired with opportunities neighborhoods. eir success stories formation take place, not after.

P013-P018_CCB_20210621.indd 18 6/18/21 12:48 PM CRAIN’S CHICAGO BUSINESS • JUNE 21, 2021 19 Driver shortage makes for long waits and high prices for Uber and Lyft DRIVERS from Page 1 “Just the food, not the people,” he says. “Less contact while driving Supply squeezes tend to boost deliveries made me feel safer.” prices, and the ride-hailing indus- He saved money, too. Commer- try is no exception. e average cial insurance on his cab, plus the per-minute fare for an Uber or Lyft cost of his aliation, total at least in Chicago in April this year was $460 a month. With deliveries, he up 36 percent compared with April pays just a little over $70 in insur- 2019, pre-pandemic. e rise has ance per month. Plus, he says he eroded ride-share companies’ price can work fewer hours and feels saf- advantage over taxis, which operate er delivering to addresses, rather on xed fare schedules. than picking up strangers in masks Before COVID-19, “it looked from street corners. like nothing could stop the ride- Rosales says he will return to his share juggernaut,” says Joseph taxi business eventually, especially Schwieterman, director of the if the food delivery business slows Chaddick Institute for Metro- down because more people want to politan Development at DePaul dine in. University. “ en COVID com- Shoib Hasan, the owner of pletely reversed things, where the Globe Taxi Association in Chi- reliance on voluntary labor in the cago, says only 21 of the rough- ride-sharing sector has come back ly 200 cabs in his lot are back on to haunt them, as our urban prob- the street. He calls drivers every lems worsen. People have heard day to urge them to return. ose war stories about high ride-share that are driving “are making good fares and may be now looking to money,” he tells them. At O’Hare cabs rst.” International Airport, cabbies Robert Kellman, Uber’s manag- who used to have to queue for 90

er of Midwestern policy, says pric- minutes can nab a fare quickly. BOEHM R. JOHN es will drop as more drivers come Customers who have complained Loading zones for ride-share services at O’Hare back. Uber says it’s luring them with that wait times are too long and International Airport. WHERE’S MY RIDE? high wages, which now average prices are too high for Uber and $35.30 per trip in Chicago, before Lyft appreciate the convenience As of the end of April, per-minute While demand for rides is rising as the city reopens, drivers haven’t yet returned to the wheel tip. ose wages, which reect the of hailing a cab o the street. fares—for the rst time since data at pre-pandemic levels. That could change as riders return and unemployment checks run out. surge pricing that irks customers, was consistently reported—were ACTIVE CHICAGO RIDE SHARE DRIVERS ACTIVE CHICAGO TAXI DRIVERS act as an incentive for more drivers REBOUND cheaper for cabs than for ride-hail- April 2019 April 2019 to hit the road during times of high According to data scientist Todd ing services, according to Schnei- 65,689 5,593 demand. Eventually, the increasing Schneider’s analysis of public der’s analysis. A solo ride with Uber supply of drivers will reduce prices, BACP gures, the local cab indus- or Lyft cost an average of $1.27 per April 2020 April 2020 Kellman predicts. Prices are already try appears to be having a quicker minute in April, while cabs were 14,765 724 starting to stabilize, he says, “with post-COVID rebound, with year- $1.19. And since April of last year, fewer and fewer trips experiencing over-year growth outpacing that of the gap has been closing for the April 2021 April 2021 Note: “Active driver” higher than normal prices.” ride-hailing companies. Taxi trip average total trip cost. In April this 26,952 1,002 is defined as having e reasons for drivers’ reluc- growth was 315 percent in April, year, the average taxi fare per trip driven four or more Source: Chicago Department of Business Affairs & Consumer Protection times in a month. tance to return range from wor- more than twice the 145 percent was $23.24. For ride-share, it was ries over contracting the virus or rise for ride-share apps. $22.11. experiencing another round of Ride-hailing will remain domi- Bruce Schaller, an urban trans- now. ey were under the gun a cabbies and lenders on medallion shutdowns to enhanced unem- nant, as Uber and Lyft drivers vast- portation consultant and former year ago . . . they did their IPOs and restructuring for decades, says de- ployment benets and fear of car- ly outnumber cabs. Taxi trips had deputy commissioner for trac started to make promises about spite the cab pickup, the industry jacking. Some have simply moved been declining for several years, and planning in New York City’s (becoming) protable,” Schaller won’t return to its pre-COVID num- on to a new job. with many drivers pushed to bank- Department of Transportation, says says. at pressure eased during bers for some time. When the pandemic hit, veteran ruptcy by the dropping value of he expects now that Uber and Lyft the pandemic but will soon return, “It’ll pick up in April (of 2022). I cab driver Manuel Rosales surren- their medallions. But after years of have gone public, they’ll be under meaning fares will stay high, he pre- don’t think you’ll see 3,500 cabs on dered his taxi medallion and start- ride-hailing having a price advan- more pressure to halt the practice dicts. the road,” he says. “(COVID) prob- ed delivering for DoorDash, Uber tage, the two industries might be of keeping prices low. Furquan Mohammed, an at- ably sped up the demise of the in- Eats, Grubhub and Amazon Flex. evening out. “ ey’re really under the gun torney who has worked with both dustry by about ve years.” Chicago Bears’ Arlington Heights bid puts their future in Soldier Field in doubt

BEARS from Page 3 Field as the lease expiration ap- roundings of a new stadium. ing rights to put team sponsor week as the latter, calling it in a proached, and Churchill Downs’ But with Lake Michigan to the brands on stadium entrances, the statement a “negotiating tactic.” they could own and operate as move to sell the 326-acre Arlington east, a rail yard to the west, a mu- stadium ticket oce and its park- Less ambiguous is the fact that they please. But some sports sta- International Racecourse prop- seum to the north and a conven- ing garages, among other assets. the Bears are leaving a lot of mon- dium and marketing experts say erty has eectively forced it on tion center to the south, Soldier e Bears also laid out a more ey on the table under their current new sponsorship rights or sig- Mayor Lori Lightfoot’s administra- Field isn’t conducive to adapt to ambitious wish list in that lease lease structure, says Tony Schiller, nage at the NFL’s smallest stadium tion. It’s a negotiation occurring that trend, says Ganis, who con- amendment, explicitly stating a partner at Chicago-based sports might not be enough to entice the against a sports industry backdrop tends that leaving behind the that the team and city would marketing rm Paragon Market- Monsters of the Midway to stay in which team owners are increas- lakefront venue and its limitations continue discussing the developing Group, which represents PNC as the lucrative upside of leaving ingly becoming real estate devel- wouldn’t be much of a sacrice for ment of a welcome/visitor center, Bank, one of the Bears’ biggest beckons after their lease expires opers, expanding the footprint of the Bears. a Bears hall of fame and a Bears sponsors. in 2033. their venues to amplify game-day “I don’t think they’re giving up sports bar and restaurant, among Abandoning Soldier Field “ ere are limitations on what experiences, sell more conces- anything other than a couple of other retail and commercial fea- would mean walking away from they can do in the building, and sions, create more assets to sell to nice aerial shots of downtown tures. the team’s legacy in the heart in 2033 it’s going to be a 100-plus- sponsors and simply get fans to Chicago and the lakefront,” Ganis It’s unclear whether those proj- of the city, “but what they’d be year-old building with a 30-year- show up earlier and stay later. says. “ is site has served the city ects are under consideration now. sprinting toward is the opportu- old renovation. It’s relatively And that doesn’t include rev- and the Bears well, but sometimes And it’s equally fuzzy whether the nity to create a new legacy with untenable going into the next enue from separate corporate cycles just come and go. You keep notoriously change-resistant Mc- more control and in some ways generation,” says sports business events and concerts. Los Ange- trying to dress it up and it costs Caskey family, which owns the with more potential,” Schiller consultant Marc Ganis, president les’ new SoFi Stadium—anoth- you more and more to achieve less team, is seriously considering a says. “ ey can’t sell naming of Chicago-based SportsCorp. er NFL venue built on a former and less result.” relocation or if it is running the rights, they can’t build an enter- “ at’s why I don’t believe this is racetrack—includes a 6,000-seat traditional threaten-to-leave- tainment district, they can’t make simply a negotiating position. I be- performance space adjacent to WISH LIST for-leverage play that the owners decisions unilaterally. . . .In a lieve this is a serious plan for the the stadium bowl. e Bears could e Bears have scratched and of the Chicago White Sox, Cubs market where they’re selling out future.” also look no further than Wrig- clawed before for more revenue and many others—including the every game and the passion is o e Bears and the city were leyville’s transformation into a opportunities at Soldier Field, Bears themselves—have called the charts, they are so far from destined to clash over the team’s mixed-use destination over the winning a bevy of new allowanc- before. Lightfoot belittled news doing what they could do if those future at an outmoded Soldier past decade as a model for the sur- es as part of the 2015 deal, includ- of the team’s racecourse bid last limitations were removed.”

P019_CCB_20210621.indd 19 6/18/21 4:18 PM Investment Opportunity: Unlimited Growth Potential

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P020_023_CCB_20210621.indd 20 6/17/21 9:07 AM SPONSORED CONTENT 2021 BIG DATES July through December nonprofit events For more than a decade, Crain’s has been publishing its Big Dates calendar of nonprofit events in its end of year special issue, The Book, in print and online. As a special feature this year we are publishing an update of nonprofit events taking place July through December 2021. What follows are new and updated event submissions provided to us by area nonprofits. Please visit an expanded version of this calendar with more information and links online at ChicagoBusiness.com/BigDates.

Simon Youth Foundation, Founders Celebration. Thursday, September 9 Collision Repair Education Foundation, Kennedy King College JULY Monday, August 16 Auto Collision Program Fundraiser. Thursday, July 1 Bear Necessities Pediatric Cancer Foundation, Golf for the Bear. South East Chicago Commission, Hyde Park Farmer’s Market. Onward Neighborhood House, Golf Outing. Chicago Scholars, Swing for Scholars. Friday, July 9 Friday, September 10 The Institute for Clinical Social Work, Summer in the City, Chicago Minority Supplier Development Council, 2021 Dolores American Cancer Society, Skyline Soiree. “Shifting Paradigms - Becoming More Human in Our Work”. Saxton Walker Scholarship Classic Fundraiser. National Able Network, 4th Annual Veteran of the Year Award Sunday, July 11 Mercy Home for Boys & Girls, 11th Annual Mercy Home Golf Luncheon. Chicago Loop Alliance, Sundays on State. Classic. Saturday, September 11 Monday, July 12 Thursday, August 19 Scottish Rite Dyslexia Foundation, 5-K Run Walk for Dyslexia. National Kidney Foundation of Illinois, Middle Market Open. HACIA, HACIA’s Scholarship & Education Foundation Annual Golf Outing. Monday, September 13 Thursday, July 15 New Horizon Center for Children & Adults with Developmental Chicago Parks Foundation, Play for the Parks, Golf Invitational. The Nature Conservancy, Midewin: Explore the First National Disabilities & Autism, 29th Annual John Tompkins Charity Golf Tallgrass Prairie. Outing. Les Turner ALS Foundation, 2021 Strike Out ALS 5k and 1 Mile Run, Walk & Roll. Friday, August 20 Reading Power Inc, Play for Literacy Golf & Games Event. Genesys Works Chicago, Signing Day. Friday, July 16 Tuesday, September 14 March of Dimes, Movie Night Under the Stars. Saturday, August 21 Chicago Architecture Center, Together Again Gala 2021. Jackson Chance Foundation, Owl Ride for Jackson. Saturday, July 17 Wednesday, September 15 A Safe Haven Foundation, Global Virtual Run/Walk To End Monday, August 23 Chicago Cultural Alliance, Journey Chicago. Homelessness. Genesys Works Chicago, Genesys Works 6th Annual Golf Outing. Friday, September 17 Sunday, July 18 Tuesday, August 24 Cristo Rey St. Martin College Prep, Elevate. Chicago 16 Inch Softball Hall of Fame, 25th Anniversary Reunion. Northern Illinois Food Bank, 23rd Annual Hunger Scramble Golf Outing. CURE Epilepsy, Unite to CURE Epilepsy: Tenacity. Discovery. Hope. Friday, July 23 Union League Boys & Girls Clubs, 2021 Wine Dinner. Wednesday, August 25 Saturday, September 18 Deeply Rooted Dance Theater, A Deeply Rooted Evening for Adler Planetarium, Celestial Ball. Saturday, July 24 Chicago’s Healing: GOSHEN (preview). Save Abandoned Babies Foundation, Ride, Baby, Ride Motorcycle Alliance for the Great Lakes, September Adopt-a-Beach. Run. Thursday, August 26 Apparel Industry Foundation, Scholarship Competition. DuPagePads, Run 4 Home Virtual Run & Walk. July Mercy Home for Boys & Girls, Mercy Home Heroes Challenge. Cara Collective, Cara Summer Social presented by Slalom. Les Turner ALS Foundation, ALS Walk for Life. Chicago Dancers United, Dance for Life. PAWS Chicago, PAWS Chicago 21st Annual 5K Walk/Run.

Friday, August 27 Tuesday, September 21 AUGUST Garfield Park Conservatory Alliance, Beer Under Glass. Metropolitan Planning Council, Better//Together: MPC’s 2021 Sunday, August 1 Annual Event. Envision Unlimited, In Motion. United Way of Metro Chicago, Board Leadership Institute Program - Fall 2021 Cohort. Thursday, September 23 Meals on Wheels Chicago, Nourish Our City. Bernie’s Book Bank, Walk As One Chicago. Monday, August 30 Monday, August 2 American Cancer Society, Chicago Select Golf Invitational. Better Government Association, Character Matters. La Rabida Children’s Hospital, 32nd Annual Golf Classic. Bernie’s Book Bank, Birdies & Books Charity Golf Classic. Strides For Peace, Race Against Gun Violence. Thursday, August 5

Association Forum, Honors Gala. U.S. Holocaust Memorial Museum, Annual U.S. Holocaust Museum ‘What You Do Matters’ Virtual Chicago Event. Cornerstone Services, Summer Chi.ill. SEPTEMBER United States Holocaust Memorial Museum - Midwest Regional Wednesday, September 1 Global Leadership Network, The Global Leadership Summit. Office, 2021 Risa K. Lambert Midwest Virtual Event. Beyond Hunger, Hunger Action Month. Saturday, August 7 Friday, September 24 Illinois Holocaust Museum and Education Center, Women’s United Relief Foundation, In Honor of Purple Heart Veterans Cruise. Rebuilding Together Metro Chicago, Run to Rebuild. Leadership Committee Soirée. Monday, August 9 Saturday, September 25 Thursday, September 2 Midtown Educational Foundation, 28th Annual Golf for the Kids Friends of the Forest Preserves, 5th Annual Beer in the Woods. CommunityHealth, All in Chicago Breakfast Summit. Outing. National Ovarian Cancer Coalition, Together in Teal - “Everywhere Friday, September 3 St. Coletta’s of Illinois, Kennedy Golf Invitational. as One” National Broadcast. United Way of Metro Chicago, Responsible Business Leaders Wednesday, August 11 Program - Fall 2021 Cohort. Sunday, September 26 United Relief Foundation, In Honor of Gold Star Mothers Cruise. JDRF Illinois, Diabetes Lesson Plan for School Nurses. Tuesday, September 7 Friday, August 13 The Salvation Army, Hope Fore Kids Golf Classic. Monday, September 27 Juvenile Protective Association, All in for Kids Golf Outing. Simon Youth Foundation, Tees for Education. Wednesday, September 8 Saturday, August 14 Eversight, FANTASEA: 2021 Gift of Sight Masquerade. Wednesday, September 29 Salt and Light Coalition, Radiate Gala. National Kidney Foundation of Illinois, Golf Classic.

P020_023_CCB_20210621.indd 21 6/17/21 9:07 AM SPONSORED CONTENT

Thursday, September 30 Monday, October 4 Sunday, October 17 CommunityHealth, All In Celebration. Envision Unlimited, Envision Golf Classic. Donka, Race for Abilities.

September Tuesday, October 5 Monday, October 18 National Ovarian Cancer Coalition, Annual Together in Teal Chicago Zoological Society, Conservation Leadership Awards Dinner. FARE, Contains: Courage® Research Retreat. Walk. Illinois Environmental Council, 19th Annual Environmental Midtown Educational Foundation, 30th Annual Reach for National Ovarian Cancer Coalition, Team Teal runs the Chicago Leadership Dinner. Excellence Gala. Half Marathon. Friday, October 8 Tuesday, October 19 National Ovarian Cancer Coalition, Teal Lights Cruise. Casa Central, Annual Gala. Bright Promises Foundation, 2021 Awards.

Illinois Chamber of Commerce, Annual Meeting. Saturday, October 9 Illinois Chamber of Commerce, 14th Annual Workers’ Alzheimer’s Association, Walk to End Alzheimer’s. Compensation & Safety Conference.

South East Chicago Commission, 3rd Annual SECC Regional Thursday, October 21 OCTOBER Economic Development Symposium. Apparel Industry Board, Rev Up Chicago 2021. Friday, October 1 Sunday, October 10 Chinese American Service League, Annual Gala. Leyden Family Service & Mental Health Center, Don’t Stop Mercy Home for Boys & Girls, 2021 Bank of America Chicago Believing. Marathon. YMCA Chicago, Annual Recognition Dinner.

March of Dimes, 2021 Construction & Transportation Awards. Monday, October 11-15 Lynn Sage Breast Cancer Foundation, Virtual Fall Benefit. Current, Chicago Water Week 2021. PAWS Chicago, TEAM PAWS Chicago. North Branch Works, Annual Fall Fundraiser. Wednesday, October 13 Saturday, October 2 Girls Inc. of Chicago, Strong Smart Bold Awards Fundraiser. Saturday, October 23 American Cancer Society, Discovery Ball 2021. Deeply Rooted Dance Theater, Roots & Wings. Thursday, October 14 National Headaches Foundation, National Headache Foundation’s Openlands, 2021 Conservation Leadership Award Ceremony. YWCA Evanston/North Shore, YWomen Gala. 35th Annual Gala. Friday, October 15 Sunday, October 24 South Suburban Family Shelter, Keeping Dreams Alive Gala. North Shore Board of the Northwestern Settlement, An Evening Pioneer Center For Human Services, Empty Bowls Art Auction. Under The Stars. Stories Matter Foundation, StoryStudio Writers Festival. Tuesday, October 26 Saturday, October 16 Chicago Scholars, 25th Anniversary Gala. WINGS Program, WINGS 21st Annual Purple Tie Ball. Fox Valley Food for Health, Under the Harvest Moon. Wednesday, October 27 Sunday, October 3 Have Dreams, Night of Dreams - 25th Anniversary Gala. Female Strong, Young Entrepreneurs Academy (YEA!). CJE SeniorLife, Celebrate CJE. Polished Pebbles Girls Mentoring Program, Every Girl is a CEO Grant Park Music Festival, Advocate for the Arts Awards JDRF Illinois, JDRF One Walk. Conference. Benefit. Mount Carmel High School

COCKTAILS ~ DINNER ~ AUCTION ~ PADDLE RAISE SEPTEMBER 18, 2021 | 6:00 PM HONORING Marty and Julie Hughes for their commitment and passionate support. Marty, a 1966 graduate of Mount Carmel High School, is the Chairman of HUB International and 2019 Crains Lifetime Achievemnt Award Winner.

TO DONATE GO TO: WWW.MCHS.ORG/CARAVANGALA

P020_023_CCB_20210621.indd 22 6/17/21 9:07 AM SPONSORED CONTENT

Thursday, October 28 Union League Boys & Girls Clubs, 44th Annual Gala. National Kidney Foundation of Illinois, 36th Annual Gift of Life Gala. Tuesday, November 9 DECEMBER October Bulletin of the Atomic Scientists, 2021 Bulletin Annual Dinner. Juvenile Protective Association, All in for Kids Virtual 5K. Wednesday, December 1 Executive Service Corps, Philanthropy in 2022: Predictions and Illinois Chamber of Commerce, Illinois Chamber’s New Laws JDRF Illinois, 2021 JDRF Ride to Cure Diabetes. Preparations. Forum 2021. Thursday, November 11 Friday, December 3 La Rabida Children’s Hospital, Friends of La Rabida Awards Pioneer Center for Human Services, Pioneer Center 15th Annual NOVEMBER Celebration. Holiday Inspiration Luncheon. Tuesday, November 2 Friday, November 12 The Salvation Army, WBBM Salvation Army Good Neighbor FARE, College Food Service Summit. PAWS Chicago, PAWS Chicago’s 20th Annual Fur Ball. Radiothon.

Wednesday, November 3 Thursday, November 18 Sunday, December 5 DuPagePads, Wake Up Your Spirit Breakfast. Chicago United, Bridge Awards. Heartland Alliance, Annual Holiday Brunch: A Benefit for Heartland Alliance Health. The Salvation Army, Starlighter. YWCA Metropolitan Chicago, Leader Luncheon 2021: Be the Change! Thursday, December 9 Thursday, November 4 Friday, November 19-20 Rebuilding Together Metro Chicago, Housewarming Party. Gar eld Park Conservatory Alliance, FLEUROTICA. Beyond Hunger, Fall Benefit Concert. Saturday, December 11 Hispanic Alliance for Career Enhancement, HACE Latino ERG Chicago 16 Inch Softball Hall of Fame, 25th Annual Hall of Fame Bernie’s Book Bank, Patrick Mannelly Award. Symposium. Inductee Dinner. JDRF Illinois, One Dream Gala. North Suburban Legal Aid Clinic, 2021 Annual Meeting. Saturday, November 20 Ecker Center for Behavioral Health, One Magical Evening. Sunday, December 12 The American Cancer Society, Taste of Hope. Cantigny Park, USA Cycling National Cyclocross Championship. Wednesday, November 24 Friday, November 5 Cornerstone Services Inc, The Champagne Luncheon. WINGS Program, Sweet Home Chicago. Illinois Chamber of Commerce, 2021 Women in Business Conference. Saturday, November 27 South East Chicago Commission, Southside Shop Local Kick Off. March of Dimes, Signature Chefs: Feeding Motherhood. More information and events can be found on the 2021 Big Three Fires Council, BSA. Dates calendar online at ChicagoBusiness.com/BigDates World Business, Chicago Consular Corps Gala. Tuesday, November 30 Saturday, November 6 Chicago Scots, 176th Annual Saint Andrew’s Day Gala. Chicago Zoological Society, Wines in the Wild. Special note: Event information based on submissions provided to November Crain’s Content Studio and have not been verified. Please visit the St. Coletta’s of Illinois, St. Coletta’s Caritas Benefit. JDRF Illinois, National Diabetes Awareness Month. nonprofit website to get the most up to date information.

P020_023_CCB_20210621.indd 23 6/17/21 9:07 AM 24 JUNE 21, 2021 • CRAIN’S CHICAGO BUSINESS

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With over nationwide basis, providing banks governance and business experience in the market is working exclusively Dolinsky 31 of experience, he will continue with access to BMO’s capabilities counseling. Jason has held in- research, installation and with Baum Realty Group providing audit and corporate nance in Fixed Income, Interest Rate house counsel roles for Fortune 500 commercial project industries as as a Director and will services to clients, with a focus on Hedging, Foreign Exchange, companies and served as outside well as consulting and purchasing focus on the hospitality, the manufacturing and distribution, Treasury Management Services counsel for both public and private experience. In his previous role, Eric culinary/food & beverage energy, technology, life sciences and and International Banking products companies. He has advised purchasers managed over 300 employees as arena, supporting brands construction industries. As part of and services. 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HEALTH CARE INNOVATION IMPROVING THE PATIENT EXPERIENCE While health care innovation accelerated over the last decade, the COVID-19 crisis presented unique opportunities for the U.S. health system to do it in real time. Telehealth, which providers adopted at an unprecedented rate, is just one example. Three health care leaders shared their insights with Crain’s Content Studio on the innovations that will change health care and medicine, helping physicians support patients and families everywhere.

How is your organization milder issues before clinical care is involved with health care needed. To support patients, we’ve innovation? found that it’s increasingly important to o er short wait times to schedule Dr. Steven J. Lester: Mayo Clinic visits—within seven minutes with has a long history of innovation and trained primary care physicians and there are more examples of health within one to seven days with mental care innovation than I could begin health specialists, with same-day to outline here. For example, I’m appointments available. Finally, we the founder and have the privilege continue to partner with innovative to be the chief medical o cer of the health plans and large employers Mayo Clinic and ASU MedTech across the country to implement Accelerator, which helps empower virtual- rst plan designs and o er medical startups to better navigate virtual primary care to support their RICH FAHN STEVEN J. LESTER, MD PRENTISS TAYLOR, MD, FACP challenges while bringing forward members, wherever and whenever VP - Corporate Bene ts Consultant, Professor of Medicine VP - Medical Affairs NFP life-changing innovations. I’m also they need care. Mayo Clinic Grand Rounds Health [email protected] [email protected] Doctor On Demand honored to be the medical director 224-374-1540 for our complex care program, which What’s the most exciting 507-422-6102 [email protected] helps employers provide access to health trend or development high-quality, cost-e ective care for you’re seeing? receive a de nitive diagnosis in our Taylor: e most exciting trend as LGBTQ+. Being able to provide individuals with complex medical individualized medicine practice. we’re seeing is an increased focus a rmative, culturally competent care conditions. ese are just a few of the Fahn: e intersection of technology And in the world of oncology, 50% of on diversity, equity and inclusion as for all of our patients is a priority. programs in an evolving portfolio of and data has revolutionized digital our patients with advanced cancers it relates to health care. While this programs and activities designed to tools such as apps, telemedicine, found a sequencing-based druggable has always been a core part of our What innovations have you enhance the innovation ecosystem at arti cial intelligence, robotics, target—or simply stated, based on an strategy, we’re seeing an increase recently implemented? Mayo Clinic. transparency and visibility—allowing understanding of a unique genetic in questions from employers and consumers to make better, more code, we’re able to precisely de ne consultants about DEI initiatives. Taylor: We’ve made monumental Rich Fahn: “Innovate or die” has informed health decisions. ey the best medication at the most Currently 43% of our providers are strides in bringing integrated care become a reality for most businesses. no longer have to access care in appropriate dose for our patients. people of color and 20% identify to patients in the comfort of their As an insurance broker, NFP provides person; they have information at best-in-class vendors to support their ngertips and can take control clients’ goals. Not only do we evaluate of their health needs, enabling better hundreds of companies bringing outcomes. Historically, consumers new technology to the market, but found it di cult to nd information our strategic corporate venture on the cost and quality of care,

“ . . . BASED ON AN UNDERSTANDING OF A UNIQUE GENETIC CODE, WE’RE ABLE TO PRECISELY DEFINE THE BEST MEDICATION AT THE MOST APPROPRIATE DOSE FOR OUR PATIENTS.” DR. STEVEN J. LESTER, MAYO CLINIC

capital arm, NFP Ventures, invests in putting individuals and businesses early-stage bene tech and insurtech at a disadvantage and frequently companies. e fund’s investment resulting in higher costs and strategy combines a disciplined dangerous gaps in quality of care. approach related to the “future of risk” to keep ahead of market trends Lester: Imagine a new dawn for and provide thought leadership to medicine where cancer is commonly our industry. We’re at the forefront intercepted, treatment of diseases of innovation because our clients is more precise and less toxic, Acting today. Planning for tomorrow. demand it. prescribing medication is safer and the burden of inherited genetic Dr. Prentiss Taylor: At Grand disease is reduced. While once only Insurance and bene ts solutions to keep you moving forward Rounds Health and Doctor On imagined, this new dawn of medicine Demand, we’ve fully integrated is becoming a reality and part of the now and in the future. our mental health practice with promise of individualized medicine. our national medical practice. is Our ability to decode the DNA that Corporate Bene ts | Property & Casualty | Individual Solutions means that providers can easily constitutes the human genome is communicate between the practices, accelerating our understanding of the 500 West Madison Street | 32nd Floor | Chicago, IL 60661 make internal referrals and drill causation of disease and helping to down on improving “whole-person tailor patient-speci c treatment plans. NFP.com health.” We also added chat-based For example, approximately 30% of mental health coaching for addressing patients on a diagnostic odyssey can Insurance services provided through NFP Corporate Services (IL), Inc., a subsidiary of NFP Corp. (NFP)

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own homes. Coordinated medical employees are virtually educated, automated provider and digital Fahn: We plan to continue results of health care innovation and mental health video visits, home engaged and enabled through the diagnostic platforms, we aim to aggregating data from all areas of is the translation of research into delivery of prescriptions and delivery process. It provides a personal streamline care for patients and our business, pulling in third-party bedside care for patients. When of remote patient monitoring device experience with access to deeper provide high-quality care more data in real time, and using that data you can help a patient in a way that kits are examples of solutions that insights, empowering clients to conveniently, and at a lower to interact with employees through didn’t exist yesterday, it’s incredibly give patients access to convenient improve employee education. price. Additionally, by harnessing mobile in a personalized way. For rewarding. care. We’re also committed to the vast potential of data from us, innovation is about ideation that providing a continuous care Lester: During the pandemic, while wearable devices, we can use remote connects problems with solutions, Taylor: We lean on our clients and experience—one that balances direct cases were surging, we were able to diagnostics to predict adverse events positively impacts people and helps market feedback to drive innovations clinical support with tools to enable use electronic intensive care unit before they happen and respond clients be even more well-covered. in care delivery. Given the increased patients to e ectively self-manage remote monitoring technology to more quickly to public health crises. Our approach is collaborative, demand for mental health care conditions. support sta and patients at a New York City hospital. is allowed Fahn: NFP Connect is a newly our physicians to participate in “BEING ABLE TO PROVIDE AFFIRMATIVE, CULTURALLY COMPETENT launched integrated, client- virtual rounds, manage patient CARE FOR ALL OF OUR PATIENTS IS A PRIORITY.” centric digital platform to medications and ventilators—and it support and accelerate our digital provided physicians on the ground DR. PRENTISS TAYLOR, GRAND ROUNDS HEALTH AND DOCTOR ON DEMAND transformation. It makes it easier with more time to care for more for us to share best practices, patients. Additionally, our work enhance our efficiencies, aggregate with technology company Medically inclusive and purpose-driven. While access, we developed a chat-based data and streamline our systems Home powered a new advanced home Taylor: Doctor On Demand recently many people equate innovation coaching solution to address issues across our entire enterprise. care model so patients can receive merged with Grand Rounds Health. solely to technology, true innovation like burnout, stress, emotion One component is a proprietary hospital-level care at home—an Together we’re delivering a rst-of- is about creating value in our management, career challenges, COVID-19 cost-impact model tool important innovation during the its-kind virtual entry point for Total everyday lives—by solving problems, motivation and goal setting. e TM that helps clients better prepare pandemic. Virtual Care . Integrating medical enhancing convenience and reducing convenient, 24/7 access to providers for the effects of the pandemic and and mental health care with clinical costs. via chat empowers patients to develop make informed fiscal decisions. What other innovations navigation means we’re innovating self-coping skills, thus mitigating the It uses demographics, regional are on the horizon for your the ways that patients nd the How is your organization risk of subclinical issues before they infection rates and cost of care data organization? right care at the right time. We’ll staying current, given that become costly clinical conditions. It to estimate the financial impact of continue to create an experience new solutions are becoming also enables early identication of the pandemic across employers’ Lester: We’re currently engaging that’s seamless, personalized and available on an almost daily health issues so that patients can be workforces. Another exciting with the digital revolution and connected—ensuring a better care basis? referred to higher levels of care when component is the ability to host an working to make care nonlinear experience, better integration and necessary. interactive open enrollment where and patient directed. By developing better outcomes. Fahn: As an insurance/employee benets consultant, we’re continually What effect has the evaluating new solutions to ensure pandemic had on health that we’re providing the best available care innovation? plans, programs and services to solve our clients’ most signicant Taylor: Within the virtual challenges. Our innovation lab and health care space, COVID-19 has venture capital arms have helped us drastically increased the demand not only analyze data, evaluate new for and use of telehealth services. solutions and address challenges but Patients are becoming more and better position our organization to more comfortable with virtual-rst support our clients moving forward. solutions like ours to address health Our innovation lab consists of a team care concerns. It’s worth noting supported by associates who interact that the increased use of telehealth with new technology vendors to solve isn’t just for urgent care or COVID- problems and reduce costs. We initiate 19-related concerns. We examined and advance conversations to identify our data from April 2020 and saw the most signicant challenges, create a meaningful increase in visits for connections to facilitate collaborative chronic conditions and behavioral ideation and partner with companies health needs compared to the same that provide forward-thinking time period in 2019. solutions. Fahn: e pandemic accelerated Lester: With more than 71,000 the need for our company and our Are your employees facing people on staff, including more clients to innovate and adapt— than 7,000 physicians and scientists, virtual care and enhanced mental complex health issues? we’re driving innovation through health programs are two examples. programs such as the Mayo Clinic Before the pandemic, many Platform, Center for Digital providers weren’t fully equipped Health, business accelerators to provide virtual care, nor did Give them access to the world’s leading experts for complex and rare health conditions. and government and industry all patients feel comfortable with Enhance your medical plan with the Mayo Clinic Complex Care Program. collaborations. Plus, we encourage receiving care virtually. Although our staff to go out and learn from some may have been initially Learn more at mayoclinic.org/complex-care-program others within health care and other apprehensive about this “new” industries, because some of the way of care, they’ve accepted this Phone: 507-422-6102 | Email: [email protected] best ideas come from other sectors. necessary solution. Virtual care Also, we’re an academic medical and other changes fueled by both institution and play a significant necessity and innovation will role in sharing knowledge through continue to be essential to provide our College of Medicine and Science patients with the best care possible. BETTER OUTCOMES. LONG-TERM COST SAVINGS. that educated 135,000 learners in 2020. One of the most satisfying

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How is health care innovation is critical because it gives us insight impacting health equity? into the ever-changing needs of ABOUT THE PANELISTS individuals and organizations. Taylor: Virtual care can be RICH FAHN is vice president – corporate bene ts strategically leveraged to address How can employers help for NFP, an insurance broker and consulting health equity and social determinants their employees engage with rm that provides employee bene ts, property of health for underserved their overall health? and casualty, retirement and individual populations. We’ve improved access private client solutions. He has more than 25 to primary and mental health care Taylor: Employers should provide years of experience in the health and welfare bene ts industry, including prior in geographic areas that experience benets such as virtual services roles at various insurance companies and Excell Bene t Group, an independent provider shortages, especially for that make it easy for employees to insurance brokerage that he founded. He has been featured on national TV broadcasts, quoted rural populations. We’ve also found focus on things like primary care in numerous publications and frequently presents at industry events. He is a chartered bene t that it’s important to focus on the with care team support, along with consultant (CBC) and a member of the National Association of Health Underwriters. diversity of a practice, and to train mental health. Employers can also providers on delivering culturally encourage employee participation a rmative care. Studies have shown in their health benets by lowering STEVEN J. LESTER, MD, is a consultant and professor of that patients of color fare better when the copay for key services that have a medicine at Mayo Clinic, a nonpro t worldwide leader in they’re seen by a provider from a meaningful impact on overall health medical care, research and education. He joined Mayo in similar background. Another way that and wellbeing. Lastly, employers 1999, serving as the inaugural associate chair of medicine for innovation and as associate chair of medicine for technology is positively impacting should evaluate their corporate research within the department of internal medicine. health equity is the use of video culture to prioritize employee health, He currently serves as associate medical director for the for providers to see inside patients’ from management training and departments of business development and contracting and payer relations where he helps resources around mental health homes. Video visits allow providers form collaborations between employers, trusted payer partners and Mayo Clinic through the to glean key information about their to looking at how employees are Mayo Clinic Complex Care Program. patients’ living environment—like using—or not using—available paid food, housing insecurity or other time o. social contexts—that may aect health outcomes. Fahn: Employees are demanding best- PRENTISS TAYLOR, MD, FACP, is vice president in-class, personalized, accessible health of medical affairs at Grand Rounds Health and Lester: Health disparities in our care that’s delivered in a way that’s Doctor On Demand, a virtual care provider. communities have been magnied convenient and easy to understand. Previously, he was medical director at Advocate during the pandemic. Everyone erefore, employers need to provide Aurora Health Care, launching its patient-centered medical homes sites. He is a deserves the ability to live their targeted, multi-faceted solutions graduate of Harvard Medical School and Northwestern University’s Kellogg School best life, and health and wellness to manage their diverse employee of Management, and is a fellow of the American College of Physicians and the is a key component of that. We’re populations. ey need to embrace American College of Preventive Medicine. His peers have named him, multiple times, as a “top investing $100 million over the next innovative tools and technologies to doctor” in Chicago Magazine and US News & World Report. 10 years to address health disparities, keep employees engaged. eliminate racism and advance equity and inclusion on our campuses. Lester: Employers are starting to From recruitment and training to partner with organizations like us diversifying clinical studies and to create innovative solutions that Fahn: In the last few years, Tesla. We’re still in the early stages costs will rise in direct relation deploying digital and telehealth remove barriers found in the health there’s been a tremendous amount of investments, but there have to more complex care and the technologies, we’re innovating to care industry. For example, we work of money invested by private been significant enhancements in investments required. I believe meet those goals. with employers and their trusted equity firms, venture capitalists health care delivery and disease these costs will eventually level out payer partners to design programs and companies not historically management. While this will in the long term as research and What are some other that enhance health benets for involved in the health care space, result in improved quality of life technology improves efficiency and challenges to innovating in employees’ serious and complex such as Google, Amazon and and extended lives, health care effectiveness of care. today’s environment? needs. e programs can be designed with a variety of optional Fahn: There’s an immense amount benets, and many barriers to of data available to all health care care—like travel, lodging costs and stakeholders, including insurance coordination—can be covered by companies, health care providers, IT the employer. By providing these companies and more. One challenge solutions, employees receive high- is using that information to solve quality care in a timely manner and for competing goals such as keeping employers see cost savings from costs down, curing diseases and accurate diagnoses and treatments extending lifespans while improving for their employees. the quality of life. Innovators must act strategically and create solutions What’s your short- and long- that benefit and further progress term outlook for health care the health care industry as a whole innovation? so we can keep moving forward together. Lester: We’re bullish on the short- and long-term outlook for health Lester: One of the biggest areas of care innovation. We invest in the opportunity is in creating a culture brightest talent, give them state-of- and environment where innovation the-art facilities and support them can thrive, and it empowers us to with the infrastructure to make their bring new products and services to ideas a reality. Our driving focus at the market. We’re fortunate to have the center of it all is that the needs a strong culture of innovation. We of the patient come rst. Whether empower our sta to create, and we we’re helping employers give their provide resources to facilitate their sta access to our care through our creativity. en, we connect these complex care program or developing Demand Better. ideas with investors, entrepreneurs the next medical breakthrough, and business collaborators to bring everything we do is centered on them to life. is connection to others doing what’s right for the patient. Because a better healthcare experience is better for your employees and your business. “ . . . TRUE INNOVATION IS ABOUT CREATING VALUE IN OUR EVERYDAY LIVES BY To learn more about virtual care, visit doctorondemand.com. SOLVING PROBLEMS, ENHANCING CONVENIENCE AND REDUCING COSTS.” ©2021 Doctor On Demand, Inc. All rights reserved. Doctor On Demand and the Doctor On Demand logo are trademarks of Doctor On Demand, Inc. and may not be used without written permission. RICH FAHN, NFP

P025_027_CCB_20210621.indd 27 6/14/21 9:20 AM 28 JUNE 21, 2021 • CRAIN’S CHICAGO BUSINESS

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Insight has a plan to stabilize Mercy Hospital com/careers/career-opportunities REAL ESTATE MERCY from Page 1 identifying opportunities to beef more aggressive operating deci- LOOKING FOR LAND? up lucrative service lines that can sions than large nonpro t systems CALL JAMES ChicagoBusiness.com 7733681977 Trinity has said the hospital was help prop up critical, money-losing around medical coding to get high- generating monthly operating loss- departments like the emergency er reimbursements from payers, for es of $4 million and that the aging room, as well as labor and delivery. example, says Jordan Shields, man- facility would require at least $100 Take a service line like stroke, for aging director at Chicago-based million of capital investments in the example, Shah says: “On one hand investment banking rm Juniper TAX INCENTIVES next ve years “to maintain a safe it helps the community tremen- Advisory. and sustainable acute care environ- dously. At the same time it’s very “You should expect that (a large ment.” Trinity sought approval to bene cial for the hospital nan- health system is) going to make close Mercy just as Insight stepped cially. When you see these sorts of dierent decisions than an organi- DON’T WAIT up. alignments and opportunities to zation that is small, very agile, new With the acquisition, Insight took implement them, you can see why to acute care—and that nobody has UNTIL IT’S responsibility for Mercy’s survival— we’re con dent the hospital will do ever heard of, so there’s no reputa- and the continued availability of im- well.” tional risk,” Shields says. TOO LATE! portant health care services in the Attracting privately insured pa- To operate as a nonpro t, the Chi- Deduct the Full Cost of community it serves. Promising to tients for pro table surgeries will be cago hospital sits under Shah’s Fir- Fire Sprinkler Systems invest $50 million in Mercy within dicult for Mercy, which competes daus Foundation, an Islamic char- in Qualiﬁed Property the next two years, Shah expressed with nearby top-ranked academic itable organization he launched con dence in his ability to stabilize hospitals, including University of nearly a decade ago. Firdaus, which Install or Retroﬁt Fire Sprinklers Today! the hospital’s nances. Chicago Medical Center, North- means paradise in Arabic, aims “Having a fresh set of eyes, we western Memorial Hospital, and to “make sure that good work is 7087101448 FIREPROTECTIONCONTRACTORS.COM de nitely would do a few things a Rush University Medical Center. housed and protected in a way that little bit dierently (than Trinity) in Even clinics in Mercy’s neighbor- it can last longer than anyone’s life,” terms of how to run the operational hood have aliations with larger Shah says. side, as well as the facility, to make hospitals, which will make it hard to it as ecient as we possibly can,” get referrals for the lucrative proce- OTHER REVENUE Shah says. dures that Shah hopes will keep the In addition to his medical prac- hospital aoat. tice, Shah’s revenue-generating OUR READERS ARE 125% NEW LEADER “ey’re not just going to change businesses include leasing space at To run Mercy, now called Insight the payer mix,” Classen says. “It has his biomedical technology campus, MORE LIKELY TO INFLUENCE Hospital & Medical Center, he ap- to be that they’re doing certain pro- renting out the Insight & Confer- OFFICE SPACE DECISIONS pointed Atif Bawahab, who doesn’t cedures in the city that are attractive ence Center auditorium and oer- have experience running a full-ser- to private payers like Blue Cross, ing management and consulting Find your next vice, acute care hospital. In addition to attract the patient volumes into services. e company also houses to that role, Bawahab, 33, will con- those higher margin services.” a health startup incubator with two corporate tenant or leaser. tinue serving as the parent compa- Negotiating with vendors is one portfolio companies, one of which ny’s chief strategy ocer and CEO area where Shah says he sees a big is run by his 19-year-old daughter. of its surgical hospital near Detroit. opportunity for savings. Shah has a 5 percent ownership Bawahab doesn’t have the “expe- “ere’s tremendous waste in stake in private equity-backed rience you would expect to do a big hospitals,” Shah says, referencing Pontiac General Hospital, which in turnaround in a place like Mercy,” a time that Insight negotiated a 2016 came under re for accepting says Tim Classen, an associate pro- $27,000 discount on a device used a $400,000 payment in exchange fessor of economics at Loyola Uni- in spinal fusion procedures at its for a residency program slot. An versity Chicago’s Quinlan School of Michigan hospital. Insight representative says in a Business. “Health care needs new Still, as part of nearly $19 bil- statement that Shah now has “zero ideas, new inspirations, new inno- lion-revenue Trinity, a Livonia, involvement” with the facility and vations and new leadership strate- Mich.-based chain that also owns that his “past involvement was very gies. But that’s a big stretch to come three-hospital Loyola Medicine limited and he was not involved in into a facility that’s been struggling across town, Mercy already had ac- any alleged wrongdoing as it per- so hard and make it pro table.” cess to deep nancial resources and tains to EEOC complaints against Bawahab says he’s feeling the economies of scale. Pontiac General executive leader- pressure, but not because of his age e hospital posted net income of ship.” or experience. “ere’s a lot to do in $4 million in scal 2020, compared While Insight is very aggressive terms of stabilizing (the hospital), with a net loss of $36 million a year when it comes to growth, Shah says but we really do see this as a tre- earlier, according to Trinity’s nan- the rm doesn’t carry any debt. mendous opportunity just to show cial lings. Trinity invested just $6.9 “I don’t want to risk other peo- Connect with Claudia Hippel at what we can provide to this com- million into the hospital in 2019, ac- ples’ money,” Shah says. “For me, if cording to the latest state data. [email protected] for more information. munity,” he says. the only one I’m hurting is myself, For now, Insight is focused on Smaller hospitals tend to make then it’s easy to take risks.”

P028_CCB_20210621.indd 28 6/18/21 2:52 PM CRAIN’S CHICAGO BUSINESS • JUNE 21, 2021 29 White Claw looks to restaurants and bars for growth as others expand in seltzer

WHITE CLAW from Page 3 in the past year. HARD SELTZER, HARD SALES “When you’re the biggest dog in Brands, worked with co-pack- town, every little dog is going to start Hard seltzer sales growth is slowing as big-name competitors enter the market, but ers in Tennessee and New Jer- taking nips out of you,” says beverage experts say there are still plenty of customers to win over. sey to can White Claw before it industry consultant Bump Williams. HARD SELTZER SALES opened two of its own breweries in “How do you stymie or slow that Retail (off premise) Bar/restaurant/venue sales (on premise) Arizona and New Jersey last year. promiscuous shopper from going Its third, in South Carolina, is set to out and trying everything that is out $4.6 start production in September. e there in the marketplace?” billion additional capacity will give White White Claw has launched several Claw the output it needs to expand new products this year, including $2.7 billion from its existing stronghold in retail 18– and 24-packs, White Claw Iced $1.5 stores into bars, restaurants, concert Tea and White Claw Surge, which $755.7 billion $987.4 venues and sports arenas. White has 8 percent alcohol in a single can million $290 million Claw also plans to ramp up new compared to 5 percent in regular million product rollouts. White Claws. Variety packs are also “We’ve been leaving cases on the big sellers for the brand, Shea says. 2019 2020 2021 2019 2020 2021 table because we know we haven’t It had two on the market and re- been able to meet demand,” says cently launched a third, which fea- CHANGE IN SALES FROM PREVIOUS YEAR John Shea, chief marketing o cer tures new avors such as strawberry Retail (off premise) Bar/restaurant/venue sales (on premise)

for parent company Mark Anthony and pineapple. CLAW WHITE 240.0% 400.0% Brands. “Now that we don’t have White Claw is also looking to a With competition getting more erce, White 70.8% Hard seltzer -34.0% those same types of constraints, we frontier largely untapped by hard Claw’s market share in hard seltzer has plunged Hard seltzer 300.0 can open it up and see how big the seltzers: bars and restaurants. since last year from 55 percent to 42 percent. 160.0 brand can actually be.” Shea won’t say how much of the 200.0 Insight CEO Dr. Jawad Shah & hospital CEO Atif Bawahab 80.0 Shea won’t disclose how much company’s sales are from such ven- world, says Jake Bolling, co-found- 3.6% Total beer -55.7% capacity White Claw has added, ues, but he did say it was a “very er and CEO of Skupos, a software 100.0 Total beer how much it’s invested in new low number.” In the past year, hard platform for convenience stores. 0.0 0.0 breweries or sales gures for the seltzer sales at eating and drinking But so do large competitors like 2019 2020 2021 2019 2020 2021 company. Mark Anthony Brands establishments were $987 million, Anheuser-Busch, which makes the Source: Nielsen Note: Previous year change for retail sales is from June. For on premise, the change is from April of the previous year. invested about $250 million into its down about 34 percent from almost No. 3 hard seltzer in the category, Arizona facility and was on track $1.5 billion the year prior, accord- Bud Light Seltzer, with about 8.4 to do $4 billion in revenue in 2020, ing to Nielsen data. e pandemic percent market share. starts to cool. Retail sales growth top 10 in the market—aren’t just according to news release from the stymied hard seltzers’ progression Bolling says Bud Light captured slowed to 70.8 percent last year trying to steal customers from city of Glendale, Ariz., announcing onto bar and restaurant menus, says some market share from White from 252.9 percent growth the year White Claw and Truly, Johnson the facility. Other reports indicate Danelle Kosmal, vice president of Claw in convenience stores when it prior, according to Nielsen. Out- says. ey’re trying to win over the company invested $400 million Nielsen’s beverage alcohol practice. launched its hard seltzer. It evened sized growth in 2020 was in part beer, wine and liquor drinkers or into the South Carolina facility. “Now that we’re in the recovery out, but the example illustrates an anomaly driven by customers get customers to reach for their In the past, capacity constraints phase and everything’s opening up, the power of a strong distribution stocking up during lockdowns. But products during certain occasions, made it di cult for White Claw to there’s so much upside for seltzer network. Big beverage companies 2021 growth also is down sharply like picnics or concerts. keep retail shelves stocked, let alone in” those types of venues, she says. already have beer on tap and other from the 189.6 percent rise over the “ e reason everyone is entering supply new outlets or expand of- products in bars and restaurants, same time period two years ago, this category is not because they ferings. at created openings for STRONG CONNECTIONS and they can more seamlessly get signaling a longer-term slowdown think it’s going to be a ght-to-the- competitors like Truly. New product Getting into more bars and those businesses to carry addition- as the industry begins to mature. death blood match,” Johnson says. rollouts have helped the No. 2 brand restaurants requires strong distri- al o erings, experts say. Molson Coors, Constellation “It’s because they think there’s a lot in the category boost its market bution networks. White Claw has Competition is heating up as Brands and Anheuser-Busch— of white space there to bring new share to 28 percent from 22 percent those relationships in the retail hard seltzer’s intense growth which all have seltzers among the consumers into the category.”

THE SPOILS OF WEED Marijuana taxes tempt more Chicago suburbs Cities and counties can collect taxes on marijuana sales. Here’s the take so far for Cook WEED from Page 3 has been collected.” suspect in the next year or so, we’ll County and the city of Chicago. (Cook County tax also applies to Chicago sales.) Cook County, which taxes mar- at least look into it and say, ‘What’s MONTHLY REVENUE Cook County Chicago discussed it, there were a lot of ijuana sales in Chicago and other been the experience of other com- $1 million unknowns. I think most questions suburbs, has rung up $6.8 million munities?’ It doesn’t mean we will have been answered.” in weed revenue since October. or we won’t, but there are enough 0.8 Roselle and Glen Ellyn are re- Chicago, which levies its own tax, reasons to look at it.” considering bans after voters has pulled in $2.8 million, accord- backed the idea in referendums. ing to the Illinois Department of TEMPTATION 0.6 Elmhurst is likely to revisit its pro- Revenue. It doesn’t disclose g- In Naperville, which reversed hibition. Lake County, which had ures for other municipalities. course and dropped its weed ban 0.4 a one-year moratorium on recre- Municipalities and counties can last year after voters approved ational weed, recently decided to charge a sales tax of up to 3 percent a referendum, marijuana tax- allow sales, cultivation and manu- on weed, which means a suburban es could rival what the city gets 0.2 facturing in unincorporated areas. pot shop can generate $500,000 to from its slice of the state sales tax 0.0 It’s another sign of legal weed $750,000 in tax revenue annually. from its downtown retail district, Oct. Nov. Dec. Jan. Feb Mar. Apr. May June gaining wider mainstream accep- Even using a more conservative Mayor Steve Chirico predicts. e Source: Illinois Department of Revenue tance as controversy gives way to estimate of $300,000 a year, Patel City Council limited the number economic reality. Marijuana sales says “that’s 4 to 5 percent of our of dispensaries to three but could are an enticing source of tax rev- gross sales tax revenue, which is a increase it if new licensees want to has been cited as a limiting factor nois will have one dispensary per enue, especially as municipalities big number. It’s the equivalent of a locate there. “If we wanted to ex- on overall sales. With 185 new re- 57,000 residents, compared with try to dig out from the pandemic. car dealer.” pand, we could,” he says. tail licenses expected to be issued one dispensary for about 10,000 Lincolnwood’s tax revenue Some communities aren’t will- this year, it’s not expected to dilute residents in Oregon, she estimates. ‘THE SKY HASN’T FALLEN’ peaked at $8 million prior to the ing to change their stances on sales, thus tax revenue, generated In Colorado, one of the nation’s A number of suburbs banned recession and rebounded to about weed, even as neighboring com- by at current stores. oldest legal-marijuana markets, sales of recreational marijuana $7 million before the coronavirus munities enjoy the scal bene ts. “Once the number of cannabis sales per dispensary have tripled in the months leading up to the pandemic hit. “COVID a ected Oak Brook isn’t reconsidering, says stores reaches the saturation point, even as the number of stores have start of legalized pot in January us,” he says. Village President Gopal Lalmalani. revenues and growth will, indeed, nearly doubled since 2014, ac- 2020. But residents in many com- e suburb recently joined “While the tax revenue is tempt- be expected to level o on a per- cording to New Frontier Data, a re- munities, such as Naperville and neighboring communities in ing, especially as evidenced by the store basis, a phenomenon we’ve search rm based in Washington, Wilmette, have voted to allow adopting a tax on package liquor positive tax experience of those seen take place already in more D.C. weed sales in recent elections. sales, which should produce towns that have welcomed dispen- mature adult-use markets like Illinois lurched into recreational “It’s gone from the scourge of $250,000 a year, or about what a saries, I think the overall sentiment Oregon,” says Jamie Schau, re- cannabis last year before supply civilization to a no-brainer,” says cannabis shop might produce, Pa- of our community remains against search director at Bright eld or many new retail outlets could Stewart Weiss, a partner at Elrod tel says. It’s also reconsidering its it,” adds Larry Herman, a newly Group, a Chicago-based cannabis open, which limited sales. New Friedman who serves as general ban on video gambling. elected village board member. research rm. “But 100-plus new Frontier forecasts that recreation- counsel for several suburbs. “Peo- “ e tax revenue could be signif- Legalized marijuana is still in its licenses will get Illinois nowhere al marijuana sales in Illinois will ple have gotten used to these facil- icant,” says Elmhurst Mayor Scott infancy, with just 110 dispensaries near the saturation point.” roughly double this year to $1.4 ities. e sky hasn’t fallen; revenue Levin, who was elected in April. “I statewide. e lack of retail outlets Even with 185 new licenses, Illi- billion.

P029_CCB_20210621.indd 29 6/18/21 4:19 PM 30 JUNE 21, 2021 • CRAIN’S CHICAGO BUSINESS Caterpillar HQ could set 16-year high for a suburban sale The owner of the Deer eld property is hunting for a buyer to make a big bet on the future of workspaces

BY DANNY ECKER highest price paid for a suburban Chicago oce property since e investment rm that got 2005, when the 150-acre former Caterpillar to move its headquar- AT&T campus in Homan Estates ters to Deereld has put the heavy was sold for more than $338 mil- equipment maker’s north subur- lion, according to research rm ban home up for sale, lining up Real Capital Analytics. Tellabs’ what could be the priciest subur- Naperville headquarters sold for ban Chicago oce deal since be- just under $188 million in a 2014 fore the Great Recession. sale-leaseback. A venture of Charlotte, N.C.- based investor Barings has hired OFFICE BIDDERS the Chicago oce of Eastdil Barings will need to nd a buy- Secured to market the Corporate er looking for a major bet on the

500 oce complex at 500-540 Lake future of suburban oces coming GROUP COSTAR Cook Road, according to a yer. out of the COVID-19 pandemic, If the Corporate 500 complex in Deer eld trades for $188 million, it would be the highest price paid for a suburban Chicago oce property since 2005. It’s unclear whether there is an which has pushed many compa- asking price for the four-building nies to rethink their oce needs. to life with remote workers have e complex today is 90 percent and outdoor amenity spaces for campus just north of the Cook Some investors argue the crisis has been drastically cutting back or leased, with no tenant occupying tenants on the 31-acre campus. A County border, but sources famil- bolstered high-quality suburban trying to sublease their workspace, more than 17 percent of the prop- Barings spokeswoman didn’t re- iar with the oering estimated the oces by accelerating the pace of pushing the suburban oce va- erty, according to the marketing spond to a request for comment. property will fetch bids between millennials moving to the suburbs, cancy rate to a record high 25.5 yer. e campus houses the cor- Few suburban oce properties $180 million and $200 million. which could push more companies percent at the end of March, ac- porate headquarters for 17 tenants, have traded during the pandemic If Barings can nd a buyer in that to open suburban oces to attract cording to Jones Lang LaSalle. including home and security prod- as buyers and sellers have tried range, it would mark a substantial talent. at would be a sharp rever- Corporate 500 proved its appeal to ucts maker Fortune Brands. e to gauge the rents buildings will gain from the $154 million that one sal from the last several years of the major tenants before the pandemic property has a weighted average command moving forward. One of of the rm’s subsidiaries paid for pre-pandemic era, during which when Barings lured Caterpillar’s lease term of just under ve years, the only multi-tenant oce prop- the 696,770-square-foot complex corporations ocked from the sub- corporate headquarters from Peoria a measure of tenants’ remaining erties in the northern suburbs sold in 2015, according to Lake County urbs to downtown oces in pursuit to the property in 2017. e compa- lease commitments to the property. over the past year was next door to property records. e company - of young, mostly urban-dwelling ny signed on to move into roughly In addition to its leasing ef- Corporate 500 at 570 Lake Cook nanced that acquisition with a $77 workers in a tight labor market. 100,000 square feet that was about forts, Barings spent more than $7 Road, where Chicago-based BA million mortgage, records show. But it’s still unclear how much to be vacated by Beam Suntory, million on capital improvements Investment Advisors paid $16 mil- If the property trades for $188 wind suburban landlords will have which was moving its headquarters to the property, sources say, in- lion in December for the ve-story million or more, it would be the in their sails. Companies adjusting to theMart downtown. cluding adding a tness center building.

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P030_CCB_20210621.indd 30 6/18/21 3:18 PM CRAIN’S CHICAGO BUSINESS • JUNE 21, 2021 31 A Kenwood beauty brought back to life The rehabber who has just completed a complete overhaul of this 19th-century house on Kimbark Avenue is putting it on the market for $3.8 million BY DENNIS RODKIN VINCE BAGGETTO has been designing kitch- allowed “was the only thing that kept it ens for more than 30 years profession- standing,” he says. ally and occasionally rehabbing houses e house had windows on the exterior for fun. When he spotted a 19th-century that had been covered over inside, up- house in Kenwood that was sorely in need dates that had lowered some ceilings, and of revitalization, he knew it would start four tons of unused brick chimney barely with the kitchen. supported from below. “ e turret was e house, on a pretty block of Kimbark leaning,” Baggetto says. Avenue, “would need a gourmet kitchen,” Two years later, the six-bedroom, Baggetto says, to complete the overdue 5,270-square-foot house is almost entire- 21st-century transition he had in mind. ly new, yet faithful to its 1890s origins and When Baggetto bought the house in its neighbors, which are all of similar vin- May 2019, “it was collapsing in on it- tage. Baggetto is putting it on the market, self. Rotting timbers, and everything we listed with Susan O’Connor Davis of Berk- touched disintegrated.” Its location in a shire Hathaway HomeServices Chicago. landmark district where demolition is not e asking price is $3.8 million.

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