CHICAGO EXECUTIVE PULSE: Business leaders gear up for a return to ‘normal.’ PAGE 8
LAND RUSH: Warehouse builders pay top dollar
for homes. PAGE3 CHICAGOBUSINESS.COM | APRIL 26, 2021 | $3.50
CHICAGO’S FLEETING MOMENT The COVID-19 pandemic added to an already complicated mix of reasons the city’s gun violence keeps on climbing. PAGE 15 BRIAN STAUFFER BRIAN
New strategies and new faces show Hobson’s expanding in uence at Ariel BY STEVEN R. STRAHLER State chases MELLODY MAKES shot dodgers some areas with less than 30 Vaccination campaign percent of the population vacci- HER MARK deploys ‘hand-holding’ nated, confounding expectations that at least 50 percent of people WHEN ARIEL INVESTMENTS’ JOHN ROGERS speaks to stu- and targeted marketing would rush to get shots. Experts dents, they have a uniform request, he says: “ ey all say 70 to 90 percent of the pop- want to meet Mellody.” ulation need to be immune—ei- at would be Mellody Hobson, Ariel’s co-CEO, BY STEPHANIE GOLDBERG ther through vaccination or prior largest shareholder and, increasingly, its public face. AND A.D. QUIG infection—to prevent the virus In recent months, she has been putting her stamp on Health o cials across Illinois from circulating and mutating the $16 billion-asset mutual fund rm, pushing it into are scrambling to reignite wan- into new variants that might be new lines of business, shaking up management and ing demand for COVID-19 vac- impervious to existing vaccines. overhauling the board. cines, which peaked sooner than “ e game has changed now,” For the rst time, Ariel is moving into exchange-traded expected, threatening the quest says Illinois Department of for herd immunity. See HOBSON on Page 25 Demand has evaporated in See VACCINATIONS on Page 27
NEWSPAPER l VOL. 44, NO. 17 l COPYRIGHT 2021 CRAIN COMMUNICATIONS INC. l ALL RIGHTS RESERVED JOE CAHILL YOUR VIEW Carl Icahn will We are at an soon have a seat inflection point in at a local firm’s the energy sector. table. PAGE 4 PAGE 10
P001_CCB_20210426.indd 1 4/23/21 4:43 PM 2 APRIL 26, 2021 • CRAIN’S CHICAGO BUSINESS GOP isn’t what it used to be on the North Shore heir Facebook page is one long candidate who threw a fundrais- e leader of the New Trier paean to Donald Trump, com- er with the group’s help without Republican Organization is Kathy Tplete with an invite to take the disclosing that a good chunk of the Myalls, a corporate attorney origi- bus to Washington, D.C., and partic- proceeds were going to her consult- nally appointed to the post to ll a GREG HINZ ipate in a “March to Save America” ing company. vacancy. In a somewhat contentious at the Capitol. Not to mention the Conservative, far-southern phone chat the other day, I asked ON POLITICS “Trump’s back” speech at the March Illinois? Or maybe the southwest her why she and Vice Chair Jasmine CPAC conference. suburbs? Nope, this group is from Velasco (the tweeter of above) are eir No. 2 o cial has tweeted in an unexpected locale. Its name: the pushing so far to the contentious istration and big tech.” Besides, she records, the money actually was recent days about the “stupid dia- New Trier Township Republican right, given that President Donald continued, her organization didn’t received by the Our America PAC, of pers” “Tony Fraudci & Co.” want you Organization. Trump got all of 25.37 percent of the support violence at the Capitol on which Cho is treasurer, with $25,600 to wear on your face, how “over one Yes, New Trier. As in the tony vote in the township last November. Jan. 6. at was the work of “a few of the $59,479.73 One America has third of Americans” are “rejecting” North Shore, between Evanston and “We are a Republican organiza- dozen . . . pales in comparison to the raised this cycle going to Locke Con- Coca-Cola because the company Highland Park, long the uno cial tion communicating with Republi- number of people at the rally.” sulting. Guess who runs Locke? Cho. headquarters of the business cans,” she replied. “Are we supposed I couldn’t reach Velasco to discuss When I spoke with Cho, she said ARE THE REPUBLICANS TRYING TO wing of the Illinois GOP, the to stop supporting Republicans” her personal tweets. I did get ahold her contributors “are smart enough place where such leaders as because Trump came up short? of Julie Cho, who was endorsed by to know that people can’t work for WIN AGAIN THERE OR NOT? onetime White House Chief But why communicate far more NTRO on its website in her recent free” and that it was cheaper for of Sta Donald Rumsfeld, U.S. about Trump than, say, soft-target bids for the board of New Trier her to do the work than to use an “interfered in Georgia politics and Sens. Chuck Percy and Mark Kirk, Democrats such as former Speak- Township High School and the outside rm to produce campaign voter integrity,” and how people can U.S. Reps. Bob Dold and John Porter, er Mike Madigan? Or why take Wilmette Library. She lost. videos and the like. But Myalls and a contribute to the Florida congress- and even Gov. Bruce Rauner grew cheap shots at other Democrats One of the items on NTRO’s spokesman for Tracy say they were man who is under investigation for up or were based. such as Sen. Dick Durbin, who the Facebook page is an invite to a not aware of that. allegedly paying a 17-year-old for at was then. Which ought to group in one Facebook post said “is Zoom fundraiser featuring the Which brings us back to the be- sex trips. Not to mention the pic a tell you something about how a Re- ne with rioters destroying and loot- new Illinois GOP chairman, Don ginning. Are the Republicans trying few weeks back of her schmoozing publican Party that’s in danger of be- ing Michigan Avenue”? Her reply, in Tracy. Proceeds were supposed to to win again on the North Shore or with a National Rie Association coming a nonfactor in the Chicago part: “ ese posts all are directly go to help local candidates like Cho, not? As one party insider sighs pri- board hopeful. area despite Democratic blunders related to ensuring rights that are and at least some did. But according vately, “ at used to be such a good en there’s the double-endorsed may be only worsening its position. under attack by this (Biden) admin- to Federal Election Commission organization.” Spring eld falls short on ethics reform—again orruption happens such provisions. More than a dozen needs to be independent and fully when people make states have a two-year period and empowered. “C bad decisions and are 36 have a one-year cooling-o e annual economic interest willing to disregard the law,” state period before lawmakers can statements lawmakers must le MADELEINE DOUBEK Rep. Ann Williams said at a recent lobby their former colleagues, notes also need vast improvement. Many ON GOVERNMENT House Ethics & Elections Commit- Alisa Kaplan, executive director of local and state governments and tee hearing. Williams said she was Reform for Illinois. Illinoisans ought the federal government require trying to understand what would to be able to trust that their elected disclosure of sources of income in “make a di erence,” adding, “I just, o cials are working in their best much greater detail than Illinois. approve to begin to restore trust. date, we’ve seen nothing but law- again, have trouble nding a nexus interest, not in that of another client. Doing so allows the media and House Speaker Chris Welch has makers trying to protect the status between some of these issues . . . Former state Rep. Luis Arroyo public to gauge whether elected said boosting ethics was one of quo. Minor tinkering simply isn’t an and the problems that we’re really was charged in 2019 with crimes o cials have conicts of interest. his top priorities. Gov. J.B. Pritzker ethical option. facing in terms of restoring our faith related to bribing former state Sen. Ending the revolving door of called for ethical improvements in government.” Terry Link to support legislation that lawmakers becoming lobbyists, more than a year ago, saying that Madeleine Doubek is the exec- Yes, corruption and fraud happen would have bene ted Arroyo’s lob- empowering the legislative branch’s protecting a corrupt culture or “tol- utive director of Change Illinois, when people make bad decisions. bying client. at alone underscores watchdog and bee ng up nancial erating it is no longer acceptable.” a nonpartisan nonpro t that Yet it’s evident from the many public the need for a ban on lawmakers disclosures represent the bare min- e Legislature’s spring session advocates for ethical and e cient o cials indicted in recent years working as lobbyists. imum Illinois lawmakers ought to is winding to a rapid close and, to government. that stronger ethics regulations are Illinois needs to fully empower needed to discourage people with its Legislative Inspector General bad intentions. so the o ce can launch probes During recent hearings in both and issue subpoenas without rst the Illinois House and Senate, sever- seeking permission from lawmak- al lawmakers have left the impres- ers. Yes, you read that right. e sion they don’t want stronger ethics legislature’s caged watchdog rst laws. e Senate’s Ethics Committee must get permission from a panel recently approved Senate Amend- of lawmakers before investigating ment 1 to SB4. It provides only for a them or sta . As current Legislative Inspector General Carol Pope noted six-month waiting period before for- wintrust.com/privateclient mer lawmakers can lobby, weakens at a recent House ethics hearing, a Chicago lobbying law and does her o ce has to contact lawmakers’ nothing to empower the Legislative sta members when she wants to Inspector General. at approach ask to investigate someone. at has NEW NAME SAME GREAT SERVICE isn’t going to stop people from mak- the practical e ect of spreading the ing bad choices. It only will foster word to more people that someone further distrust in government. is accused of wrongdoing, thereby Several House ethics committee increasing the chances of a leak. lawmakers seem to agree with their Pope also noted one of the people Let us re-introduce ourselves. We’ve renamed our Wintrust Wealth Services group to Wintrust Senate colleagues that stricter laws she has asked to investigate sat on Private Client. We want to make sure you know that we’re dedicated to helping private clients aren’t the solution, but Illinois’ eth- the panel that currently must give ics laws lag behind many others. her permission to do her job. manage day-to-day finances, strategies for growth, and solutions to protect wealth. With a high- A six-month period before former If that doesn’t point to the need touch, white glove experience, you’ll work with experts in this space who craft custom solutions o cials can lobby would leave Illi- for change, I don’t know what does. to meet your individual needs. nois among states with the weakest e Legislative Inspector General
CORRECTIONS The listing for Balasa Dinverno Foltz in the Best Places to Work feature April 12 Banking products provided by Wintrust Financial Corp. banks. should have said that voluntary turnover was 6 percent. The list of Chicago’s Largest Privately Held Companies on April 19 should have said Securities, insurance products, financial planning, and investment management services o ered through Wintrust Investments, LLC (Member FINRA/SIPC), founded in 1931. Trust that Citadel Securities employs 500 locally and 1,000 worldwide. and asset management services o ered by The Chicago Trust Company, N.A. and Great Lakes Advisors, LLC, respectively. JPMorgan Chase agreed to co-invest up to $200 million alongside Ariel Invest- Investment products such as stocks, bonds, and mutual funds are: ments to fund minority-owned businesses. An April 19 story about the gap in lend- NOT FDIC INSURED | NOT BANK GUARANTEED | MAY LOSE VALUE | NOT A DEPOSIT | NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY ing to entrepreneurs incorrectly described the relationship between the rms.
P002_CCB_20210426.indd 2 4/23/21 3:33 PM CRAIN’S CHICAGO BUSINESS • APRIL 26, 2021 3 High hopes for new pot shops unfulfilled Social-equity applicants, the state and growers have been hurt by stalled license process
BY JOHN PLETZ Illinois marijuana shops are likely to ring up more than $1 bil- Katherine Anderson lion in sales of recreational weed says she and her this year. husband, Arthur at total would be 15 to 20 per- Eichorst, received cent higher if the state had issued enough money in the 75 new retail licenses by May 1 as sale of their Mohawk originally planned, according to Terrace house to buy research rm Bright eld Group. a Las Vegas condo But nearly a year later, the new li- free and clear. censes have not been issued. “ e delay in additional retail licenses in Illinois has depressed sales as many consumers opt to continue to turn to their lega- cy-market sources of cannabis instead of traveling a fair distance to a dispensary to procure prod- uct that remains more expensive,” Chicago-based Bright eld, which forecasts recreational sales of $1.3
JOHN R. BOEHM R. JOHN billion this year in Illinois, writes in a statement. e licensing process, rst de- layed by pandemic disruptions, has since been stalled by legal A LAND RUSH IS ON AROUND O’HARE challenges and a political outcry over problems with scoring appli- Developers want to replace subdivisions with warehouses—and they’re paying top dollar to do it cations. Fewer pot stores means lower sales, less tax revenue, fewer BY ALBY GALLUN jobs and continued dominance of DEVON the industry by about two dozen
Being surrounded by big industrial buildings doesn’t sound like WOOD DALE companies that own the licenses the American Dream to most homeowners. But it turned out quite LIVELY issued under the medical-mar- well in the end for many residents of the Mohawk Terrace subdivi- Seefried development ijuana program that began six sion in Bensenville. 6 parcels Mohawk Terrace years ago. e owners of a two-story house on Edgewood Avenue just sold 106 homes ere also are political rami - it for $875,000. ey paid $420,000 for it less than three years ago. cations. Social-equity applicants, 390 THORNDALE A split-level over on Spruce Avenue just fetched $700,000, up from who either lived in communities its prior sale price of $240,000 at the end of 2018. Longtime resi- hit hardest by the war on drugs dent Joe Fiore was the big winner, receiving $1.7 million, the highest Nippon Express building or had been arrested or jailed for 30 homes
price in the entire subdivision, for his house on Indian Hill Drive. BUSSE low-level cannabis possession
MITTEL He estimates it’s really only worth about $700,000. crimes, were at the center of the
See BENSENVILLE on Page 25 See MARIJUANA on Page 26 It’s sweet to be a utility company in Illinois Thanks to state laws, monopolies grow earnings like they’re tech giants GOOGLE OR PEOPLES GAS? Map:county name Annual five-year earnings growth for ComEd, Nicor and Peoples Gas was 8.4%, 11% and an Map:townname BY STEVE DANIELS topped all but a handful of Chi- licly traded companies—North- eye-popping 16.3%, respectively. MAP:NEW STREET cago’s 20 largest publicly trad- brook-based insurer Allstate— Just how good has Spring eld ed companies, according to a exceeded that pro t growth NET INCOME Commonwealth Edison Nicor Gas Peoples Gas been to local utilities since Com- Crain’s analysis. during the same period. To put $688 $664 monwealth Edison rst won the Since 2015, when Milwau- that in perspective, the earnings $638 right in 2011 to set its delivery kee-based Wisconsin Energy growth rate at Chicago’s gas util- $567 ity wasn’t too far behind the 19.4 rates each year via a formula? acquired the Chicago-based $426 It’s a good question as state law- parent of Peoples, earnings at percent turned in over those $378 makers embark on their third the Chicago utility soared 113 years by the poster child of a $229 $199 $187 crack at comprehensive energy percent to a record $187 mil- growth stock, the parent compa- $160 $171 $156 $136 $132$124 $132 $88 legislation in the last decade. lion last year from $88 million ny of Google. $66 Since the beginning of the in 2015. at’s a compounded “ at’s one of the highest “formula-rate era,” yearly earn- annual growth rate exceeding growth rates in the U.S. regu- ings growth at ComEd, subur- 16 percent over those ve years. lated utility sector,” says Paul Source: SEC and FERC lings Note: Adds back the $200 million ComEd paid ban natural gas utility Nicor Only one of Chicago’s top 20 last year in bribery-scandal ne and Chicago’s Peoples Gas have on Crain’s list of the largest pub- See GAS on Page 24
P003_CCB_20210426.indd 3 4/23/21 4:28 PM 4 APRIL 26, 2021 • CRAIN’S CHICAGO BUSINESS CHICAGO COMES BACK JOE CAHILL ON BUSINESS What is Carl Icahn cooking up for Middleby? With its biggest buyout ever, Icahn’s involvement at other Middleby is acquiring a major local companies sheds some light rival and a strong-willed new on how he might be thinking shareholder known for driving about Middleby. After investing signi cant change. in Motorola in the late 2000s, he Billionaire activist investor pressed the struggling telecom- Carl Icahn owns more than 8 munications equipment maker percent of Welbilt, a restaurant to split its cellular phone unit equipment maker that El- from its public safety business,
gin-based Middleby has agreed an idea then-CEO Ed Zander GETTY IMAGES to buy in an all-stock deal valued resisted. Before too long, Zander at about $3 billion. At the deal’s was out and his replacement was exchange ratio, Icahn would get overseeing the breakup. about 2 percent of Middleby, ere are parallels between which manufactures commer- Middleby and Tenneco, where Classism has to be the cial and residential kitchen Icahn became a major share- equipment. holder after selling automotive Although 2 percent is far supplier Federal-Mogul to the from a controlling stake, it’s a Lake Forest-based auto parts big enough platform for Icahn maker in a stock deal. Icahn next tough conversation to press for structural changes successfully pushed Tenneco at Middleby, if he chooses to. to separate its powertrain and It’s a worldwide phenomenon: Socio-economic disadvantages prevail everywhere. “It’s 2 percent plus Carl,” says aftermarkets parts businesses, al- Why isn’t the discussion more prevalent when we consider workplace diversity? Erik Gordon, a professor at the though the breakup later stalled University of Michigan’s Ross and remains in limbo amid auto BY EMILY DRAKE AND TODD CONNOR regularly give four hours a month School of Business. “Carl doesn’t market uncertainty. to playing golf—won’t be partic- need 10 percent.” At Navistar, Icahn helped push Chicago Comes Back is a weekly series on ChicagoBusiness.com pro- ipating. is isn’t to say we need Icahn has been silent about out one CEO and complained viding leadership insights to help your business move forward, written to stop everything we are doing to any ideas he might have about about his successor until the by leadership consultants Emily Drake and Todd Connor. build culture, but we should pause Middleby’s future direction, but Lisle-based truck maker settled Drake and Connor facilitate Crain’s Leadership Academy. Drake is and see who is naturally opting in his track record speaks volumes. on a replacement Icahn approved a licensed therapist, owner of the Collective Academy and a leadership and who may not be. He has agitated successfully for of. Navistar agreed late last year coach. Connor is the founder of Bunker Labs and the Collective Acade- transformational action at com- to be acquired by European truck my and is also a leadership consultant. ED: I think noticing has to be the manufacturer Traton. Check out previous installments at ChicagoBusiness.com/comesback. right rst step. We talked at the ICAHN’S TRACK RECORD Icahn may see similar start of the pandemic about how options for Middleby. For ex- TODD CONNOR: We’ve been ex- the United States are 32 percent the “water cooler” conversation SPEAKS VOLUMES. ample, Middleby’s residen- ploring and elevating how com- less likely to become managers would be replaced by some virtual tial kitchen business could panies acknowledge and pro- than those who come from higher version. Some worried about how panies much larger than Middle- become a divestiture candidate mote seen and unseen diversity social-class origins. is, it turns to create cohesion without those by, which would have about $3.7 after the Welbilt deal tilts the com- in their ranks, not just because it out, is a worldwide phenomenon, informal mechanisms, and we billion in annual revenue after pany’s portfolio even more heavily is the moment we nd ourselves with social class disadvantage pushed back and thought maybe acquiring Florida-based Welbilt. toward commercial equipment. in as a society, or because it is prevailing in every major econ- there’s a more transparent or ef- His targets have included Apple, Perhaps Icahn will encourage the right thing to do but also be- omy in the world. Why isn’t the fective workforce that does not rely AIG, eBay and Hertz. Middleby to continue its role as cause it’s a confounding problem conversation about class more as much on those mechanisms. Icahn seems to have a partic- a serial acquirer, snapping up for most companies and leaders. prevalent when we consider di- e question becomes what ular fondness for Chicago-area dozens of small competitors in Fifty-seven percent of employees versity in the workplace? doesn’t get resolved through the industrial companies. Over the the fragmented kitchen equip- think their companies should be actual meeting, such that the “wa- past decade or so, he’s worked ment market. Or he might prefer more diverse, 40 percent think ED: at’s a big question, and I’m ter cooler” conversation becomes his will at such local stalwarts as to cash in on industry consolida- there is a double standard against not sure there’s one answer. It is necessary?It’s less often overt dis- Motorola, Navistar and Tenneco. tion by putting Middleby on the hiring women, only about 3 per- true that while companies have crimination and more often the It’s possible that Icahn has sale block. cent of executive positions are a number of employee resource soft structures at play in the spirit no particular agenda in mind Middleby CEO Timothy Fitz- held by Black employees, while groups, very few (only Uber, ac- of “getting work done.” for Middleby. He’ll come by Gerald can expect to hear about 41 percent of managers report cording to the research of the au- his shares in a merger, rather any strategic or structural chang- being “too busy” to implement thor) explicitly has an employee TC: You and I, Emily, have had than open-market purchases es Icahn would like the company diversity initiatives. Taken in this resource group based on social these conversations about other that suggest a more intentional to pursue. He’d be well-advised light, there likely is not an issue class. e conversation can, per- talent that might be left behind approach. On the other hand, I to listen and give Icahn’s propos- for companies today that is so haps, feel stigmatizing. People because of cultural imprints. I doubt Welbilt would have agreed als full consideration. widely recognized as important, are uncomfortable talking about re ected on my time in the mil- to an all-stock deal if Icahn didn’t If FitzGerald chooses to reject yet so woefully addressed. wealth, social class and hav- itary that above a certain rank it want to own Middleby shares. Icahn’s ideas, he’d better have ing grown up poor or to parents was hard to take command if you Icahn surely also wants to get reasons compelling enough to EMILY DRAKE: It’s an issue, in- who did not receive a college weren’t married because there the best possible return on those persuade other shareholders to deed, and also an opportunity, education, yet these things can was an informal and ceremonial shares, and he’s rarely short of stand by him. When a CEO re- given that racially diverse teams have real-world impacts on our role that spouses were expect- ideas for increasing the value of exively rebus Icahn, he doesn’t outperform non-diverse teams opportunities in life. But it does ed to play. It wasn’t illegal to be companies he owns. His ideas hesitate to lobby the company’s by 35 percent and teams with an matter because the implications single, but the mental model for tend to be big. large institutional investors to equal number of men and wom- are real. how a command role would be “His ideas are structural ideas, back his cause. With their sup- en earn 41 percent more revenue ful lled just was not quite there. such as divesting a division or port, disposing of a recalcitrant than non-balanced teams. We ex- TC: Companies would do well Suce it to say those kinds of selling the company,” Gordon CEO becomes short work, as pect—and hope, for that matter— to ask themselves “How do peo- mental models that are not re- says. “In extreme cases, he’s urged Zander and others have learned. that this conversation will be at the ple build relationships here” and lated to performance potentially companies to get a new CEO.” Conversely, CEOs who give forefront for businesses for some “How do things informally get leave a lot of women, single folks, Noting that Icahn won’t get a Icahn a fair hearing and adopt years to come. done here?” erein often lie people of color, divorced people, board seat at Middleby, compa- his ideas when they make sense some of the hidden clues for how older folks or potentially employ- ny spokeswoman Darcy Bretz for the company can have long TC: We recently came across this people get ahead, but also how ees from lower-income back- emphasizes that he backs the tenures. Just ask Greg Brown, Harvard Business Review article people get left behind. If playing grounds behind. deal and says “this transaction is who’s still CEO of Motorola a that elevated another diversity 18 holes of golf is how deals get consistent with his view of syn- decade after he followed Icahn’s category we do not generally talk done, then we can presume that ED: And leaving people behind is ergistic foodservice companies suggestion to spin o the mobile about, but has profound implica- a lot of people—namely, those not something that we can aord. being together.” phone business. tions: class. Workers who come who don’t golf, can’t aord mem- Our businesses certainly can’t af- from lower social-class origins in bership at a golf club and can’t ford it.
P004_CCB_20210426.indd 4 4/23/21 4:06 PM Moving forward together in Chicago
Over the past year, we’ve all been challenged in one way or another by this health crisis — physically, emotionally, financially. And while questions remain about what lies ahead, we know one thing for certain: The only way to move forward is together. To that end, Bank of America remains fully committed to supporting the health and economic recovery of our clients, communities and teammates.
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*PPP data as of 04/04/2021 Bank of America, N.A. Member FDIC. Equal Credit Opportunity Lender. © 2021 Bank of America Corporation. All rights reserved.
21cb0171.pdf RunDate 4/26/21 FULL PAGE Color: 4/C 6 APRIL 26, 2021 • CRAIN’S CHICAGO BUSINESS Condos-to-apartments property Royal Bank offers commercial loans with attractive rates and terms. in Lakeview fetches $32 million After losing its original nancial partner last year as the coronavirus swept into Contact Richard Nichols, Senior Vice President Chicago, North Park Ventures found a new one to back the condo deconversion 2IƓFH Ř0RELOH do it in Lakeview, leading a venture (PDLO UQLFKROV#UR\DOEDQNXV BY ALBY GALLUN Putting community first since 1887. that just paid $32.3 million for the It takes persistence to buy a Barry Quad, a 115-unit condo com- condominium building and con- plex in Lakeview. e deal, reached vert it into apartments—a compli- in October 2019, fell apart the fol- royal-bank.us cated deal even in a normal mar- lowing March, as the coronavirus ket. Try doing it in the middle of a swept into Chicago and North Park’s Member FDIC /RFDWLRQVLQ&KLFDJR:HVWPRQWDQG1LOHV pandemic. nancial partner backed out. North Park Ventures managed to But North Park, a Chicago-based real estate investor, eventually found a new partner to back the acquisi- tion, another in a series of Chicago condo deconversions that began several years ago. Don’t Let Employee Issues Derail “It was a long journey but it was
well worth it,” says Rob Sekula, man- GROUP KISER Your Growing Business aging partner of North Park. Barry Quad, a three-building, 115-unit condo The Employment Law attorneys at Lavelle Law are well Now, Sekula is moving forward complex on the 800 block of West Barry Street. versed in Illinois and Federal employment and labor laws with a major renovation of the prop- erty, a three-building complex on “ ey were understanding, and with a proven track record of defending businesses the 800 block of West Barry Street. we kept it alive long enough to put against employment litigation. North Park plans to spruce up Humpty Dumpty back together kitchens and bathrooms and install again,” says Friedman, who repre- Employee Agreements, Employee Handbooks, washers and dryers in all the units, sented the board with his partner, Severance Packages, Sexual Harassment, he says. Kiser Advisor Jake Parker. Employment Discrimination Sekula declines to identify North HARD FOUGHT DEALS Park’s original or replacement part- Condo conversions became a ner. He also declines to disclose how popular investment as the Chicago much the rm plans to spend on the apartment market took o several renovation, saying he’s still working years ago. Apartment values rose through the budget. He does vol- so much that developers could buy unteer that he’s especially eager to entire condo buildings, usually pay- remove shag carpet seating from the 312-332-7555 www.lavellelaw.com ing a signi cant premium over what property’s party room. units in a property would fetch in an “I don’t think it’s been cleaned in individual sale. a while,” Sekula says. But the deals are tough to execute Built around 1916, Barry Quad because many condo owners are was converted from apartments unwilling to sell, even at above-mar- to condos in 1981. Its condo board ket prices. Holdouts, if there are hired CBRE to sell the property in enough of them, can kill a sale: Un- 2016 but couldn’t consummate a CRAIN’S WEBCAST der state law, the owners of at least deal. Kiser Group began marketing 75 percent of a condo property must the property in August 2019. vote to approve a bulk sale for the deal to move forward. LOOKING FOR THE NEXT PROJECT e Chicago City Council made With deconversions in the city deconversions even tougher in 2019. harder to pull o nowadays, some Amid concern that deconversions investors are looking for opportu- were pushing some residents out of nities in the suburbs, which still fall their longtime homes, the council under the 75 percent state vote re- REAL ESTATE passed an ordinance raising the re- quirement. North Park, for instance, quired approval vote to 85 percent. paid $17 million last June for a 91- FORUM Updates e Barry Quad owners approved unit condo building near North- the sale to North Park on Oct. 15, a western University’s Ryan Field in on Invest day before the new ordinance went Evanston. Thursday, May 13 | 1-2 p.m. into e ect. e sale received close But Sekula hasn’t ruled out more South/West to 85 percent support, says Andy deconversions in Chicago. Founded Friedman, a broker hired by the in 2017, North Park owns a couple Barry Quad condo board to sell the dozen properties in the city, mostly property. apartments on the North Side. Mayor Lori Lightfoot’s ambitious $750 million “We probably could have got this ough the pandemic put a scare Invest South/West program is aimed at Featured one over 85, but we didn’t want to in many apartment investors, the revitalizing underserved neighborhoods on take the chance,” says Friedman, neighborhood markets where North Speaker an adviser at Chicago-based Kiser Park owns property have held up the South and West Sides of Chicago. The Maurice Cox Group. well, considering. Occupancies initiative comes at a challenging time in the Commissioner of North Park still needed to close within its portfolio are strong, but the Department the deal. In March 2020, just days af- rents have fallen slightly, Sekula FLW\ȇVKLVWRU\-RLQXVIRUDOLYHO\ȴUHVLGHFKDW of Planning & Development ter Gov. J.B. Pritzker issued his stay- says. North Park is currently o ering between City of Chicago Commissioner of City of Chicago at-home order, the rm’s nancial one month rent-free to attract ten- Planning and Development, Maurice Cox and partner pulled the plug. With nan- ants, he says. Crain’s Real Estate reporter, Danny Ecker, as cial markets tumbling and many un- Friedman and Parker, mean- knowns about the future, many real while, are marketing a few other we check in on this important city project. Corporate Sponsors estate investors did the same thing. smaller North Side condo properties “Most of the capital markets for deconversion, including a 12- were on the sidelines and following unit building in Wrigleyville. ey’re Register at ChicagoBusiness.com/RealEstateForum a wait-and-see approach,” Sekula hoping not to encounter as many says. twists and turns as they did with the $20 per person Includes access to webcast and archived recording But the Barry Quad condo board Barry Quad deal. agreed to give North Park more time After that one, Friedman says, “I to line up a new partner. could write a novel.”
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21cb0178.pdf RunDate 4/26/21 FULL PAGE Color: 4/C 8 APRIL 26, 2021 • CRAIN’S CHICAGO BUSINESS
SPONSORED CONTENT WEALTH PLANNING FOR FINANCIAL SUCCESS What are the top factors to consider in 2021?
Today’s economic outlook is quite different from just a year ago. The vaccine rollout, a more open economy, and increased government spending have dramatically changed the calculations for financial success. Now is the JOHN R. BOEHM R. JOHN time to plan ahead.
Before making any investment decisions, reevaluate your personal nancial plan or put one in place. Successful investors have goals and know what rates of returns are required to accomplish their goals. Business leaders gear What are your short, medium and long-term objectives? Evaluate your personal balance sheet—assets and liabilities. Consider taxes, estate planning, and overall risk management up for return to ‘normal’ measures. Maybe you need more cash this year for college tuition or a new house. The latest Chicago Executive Pulse survey shows business leaders’ attention might With a solid plan in place, here are four timely factors to consider for nancial success in 2021. be turning away from COVID and toward longer-term issues like taxes and education BY WILLIAM JOHNSON RYAN LINENGER What will your tax rate be? EMPLOYMENT WORRIES SUBSIDE A lot of tax planning took place aer the Whether it’s the crack of the More leaders are worried about taxes, budgets and bureaucracy since last year. Partner passage of the Tax Cuts and Jobs Act of 2017. bat accompanied by the roar of Plante Moran But now the equation looks dierent. e “In your opinion, what is the biggest issue holding back Chicago?” the crowd or children spilling out Wealth Management government is providing trillions of dollars of of school buildings, ready to play November 2020 March 2021 312-928-5297 stimulus to blunt the eects of the pandemic. on a beautiful spring afternoon, Taxes 20% 23% Tax hikes to fund the spending are likely. simple but long-absent sights and Ryan Linenger is a leader in the Capital gain tax rates could go up substantially Employment 22% 17% sounds are returning to Chicago. Plante Moran Wealth Management for higher income individuals and personal Dare we say that a return to nor- Cost of living 20% 17% practice. He specializes in helping income taxes could rise too. Tax planning mality, or at least arriving at a new people achieve their financial strategies dier depending on each individual’s Budget (pensions) 14% 16% normal, is in the air? goals through investment and situation and whether you itemize deductions risk management, tax and estate Windy City business leaders Regulation (bureaucracy) 5% 11% or take the standard deduction. Although some planning, charitable giving certainly seem to think so, ac- deductions went away or were more limited Education 13% 11% strategies and retirement planning. cording to the third wave of the by the 2017 tax law change, deductions for Crain’s-Harris Poll Chicago Exec- Infrastructure 8% 6% charitable giving are still considerable. For those utive Pulse survey. Partnering with who expect higher than normal income in a particular year, one approach is to Survey responses collected between Nov. 13 and Nov. 24, 2020, and between March 9 and March 26, 2021 Crain’s Chicago Business, we have “bunch” charitable deductions into that tax year. However, with the potential Chart: Numbers may add up to more than 100 due to rounding. taken quarterly surveys of more for higher rates in the future, 2021 makes tax planning that much more Source: Chicago Executive Pulse via Crain’s Chicago Business and the Harris Poll than 200 area business leaders important! (owners, C-suite executives, vice Will you have a taxable estate? presidents and directors) with the very good in six months jumped a readjust rates—or at minimum Today’s favorable estate tax environment may not last long. e federal dual aim of tracking their views of dozen percentage points to 56 per- do a better job of communicating exemption for 2021 is $11.7 million. Married couples can protect up to $23.4 the city over time while also dig- cent; the same gure for the state’s why they’re not. million. is exemption level is set to expire at the end of 2025 and based on ging into issues of the moment. economy jumped 14 percentage Asked what the most import- President Biden’s pre-election statements (and the current bill introduced Not only does the latest edi- points (also to 56 percent) and 12 ant factors in deciding to keep a couple of weeks ago by Senator Bernie Sanders and Senator Sheldon tion of the survey paint a picture points for the country (to 60 per- their businesses in the Windy Whitehouse) there is a potential for this exemption amount to be lowered of business leaders increasingly cent). City, leaders cited public safety considerably. So, this is a critical time to consider what you need and what gearing up for a return to normal, Business leaders are, in other more than any other issue. Here you want to leave to others. Substantial giing and wealth transfer strategies but it also highlights three key is- words, feeling good about the di- again, city policymakers can do could make sense to consider with your estate and nancial planners. Illinois sues on which city leaders can rection things are going. But no better with 54 percent of respon- residents should be aware that the state’s estate tax exemption is only $4 million close the deal. one is ready to declare pandemic dents rating the city’s handling of and they do not oer portability of that exemption for spouses. at amount Despite the fact that the state’s victory; normal may on the hori- the issue as fair or worse. Opin- covers all assets—real estate, life insurance, investments, other items—which push toward transitioning to zon, but it is not a done deal. See ion trends are going in the right can quickly add up. what Gov. J.B. Pritzker has called the nearly two-thirds of business direction (a net 10 percent im- a “Bridge Phase” of reopening leaders who plan on their of- provement over three months Should you be concerned about in ation? has stalled, signs abound that ce-space footprint shrinking; or, ago) but there is still a lot of room e focus is on healing the economy and getting everyone back to work. But business leaders are pleased with again, the stalled progress toward for positive growth. concern is growing about an uptick in ination. Stimulus funds are owing the overall direction of the ght the “Bridge Phase.” City leaders Finally, while a majority (51 and certain sectors, such as residential real estate in many areas of the country, against COVID-19. Substantial cannot rely on positivity alone to percent) of business leaders rate are roaring back. Rising ination, followed by a sharp rise in interest rates, majorities rated the federal (56 carry us through. the city’s handling of education as can impact portfolio performance. is shouldn’t be overstated, as economic percent), state (61 percent) and good or excellent, that trend is go- growth is also likely to continue to rise, however, now is a good time to assess local governments’ (56 percent) TAX BURDENED ing in the wrong direction (down how your investment strategy could be impacted. handling of the vaccine rollout as Drilling down, three key is- from 55 percent three months good or excellent, for example. sues—taxes, crime and educa- ago). e school openings will un- Can stock prices keep rising? is positive progress is trickling tion—emerge which bear im- doubtedly help that, but the latest Prices are at all-time highs. But the revenue behind many eye-popping down to our summer plans. e provement in the eyes of business are-up in the long-running feud company prices is real. Much of the economy has recovered from last year, majority of business leaders (53 leaders. ey identi ed taxes as between the teachers’ union and and the industries le behind are improving. With so much government percent) now expect large gather- the single biggest issue holding the mayor’s o ce has the majori- stimulus, low historical interest rates, economic growth heating up, and an ings such as concerts and sports back both the city of Chicago and ty of business leaders (56 percent) accommodative Federal Reserve, the equity markets still have room to grow. events to resume with limited its businesses (in both cases mak- blaming both the union and May- at said, strategic rebalancing is an important priority. Consider trimming crowds within the next quarter; ing jumps up from third on the or Lori Lightfoot equally. stocks with high valuations that have become a larger piece of your portfolio. and a plurality (46 percent) expect respective lists three months ago). at taxes, crime and education Value stocks may be a good alternative. Investors should continue to be them to return with social distanc- is renewed concern about tax- are key issues may itself seem like rewarded over time for living with short-term volatility for long-term gains. ing and masks in the same time es comes in the wake of the city a return to normal. But the extent period. at Cubs and White Sox in November increasing proper- to which Chicago’s leaders are Bottom line: Plan ahead. at’s the key to nancial success in 2021. games will have crowds at up to 20 ty and gas levies, with the high- able to make progress on them percent capacity shows that this is er property rates being felt this will dictate whether the new nor- For more information, talk with a wealth management expert. Start the not wishful thinking. month. No wonder 60 percent of mal is a better normal. conversation today: www.plantemoran.com/wm/contact Perhaps most important, views Chicago business leaders rate the of the economy have become city’s handling of taxes as “fair” or William Johnson is CEO of the markedly rosier. e percentage worse. ere is an opportunity for Harris Poll, a public opinion, of business leaders who say Chi- local leaders to step up and, if the market research and strategy rm cago’s economy will be good or economy does as well as expected, based in Chicago.
P008_CCB_20210426.indd 8 4/23/21 3:30 PM Mothers are the great heroes (and victims) of the pandemic. Help us help mothers of all faiths this Mother’s Day. Please give generously at catholiccharities.net.
21cb0165.pdf RunDate 4/26/21 FULL PAGE Color: 4/C 10 APRIL 26, 2021 • CRAIN’S CHICAGO BUSINESS LETTERS TO THE EDITOR Insurance bosses win, we lose. Lawmakers should change that. llinois insurers are pro teering o a cha- otic health care system during a pandem- EDITORIAL Iic. e top executives at Blue Cross of Illi- nois’ parent company got big raises last year, as health insurance corporations emerged largely unscathed from the economic fallout Much-needed change for much-criticized TIFs of the pandemic (“Blue Cross bosses pock- et pay hikes,” April 16). e two executives he acronym for tax-increment also would have to include gures on debt who shared the CEO role in 2020 received a nance districts—TIFs—has be- service and borrowing as well as veri ca- whopping $22.8 million last year. come shorthand for a political tion from an independent auditor on a de- Adding insult to injury, insurers are over- money grab in the minds of many velopment’s projected rate of return. pricing premiums in the individual mar- Ttaxpayers. And for good reason. Beyond that, the consultants who proj- ket, so much so that they had to return For decades, too many mayors have ect increment and jobs when a TIF deal money—$2.1 billion—under the rules of treated the money generated by TIF dis- is struck no longer could be hired by the A ordable Care Act. Rebates are not a tricts as an economic-development tool the developer. Instead, the municipality long-term x and represent a problem: the to be wielded at their discretion, show- that created the TIF district would select overcharging of consumers. And such high ering their largesse on favored neighbor- the consultant, presumably providing a hoods and projects—even if those recip- more objective forecast on whether a city ients strained the TIF’s original purpose. should subsidize a project. Mendoza, in a statement, says her in- tent is to “help taxpayers better under- Chief executive o cer KC Crain CARROLL’S BILL REPRESENTS stand” what’s happening with TIFs, which Group publisher/executive editor Jim Kirk A LONG OVERDUE STEP TOWARD in Chicago alone had revenue of more Associate publisher Kate Van Etten than $926 million in 2019, the most recent * * * GREATER TRANSPARENCY. IT year for which complete data is available. Editor Ann Dwyer In the same statement, omas Ber- Creative director Thomas J. Linden DESERVES SWIFT PASSAGE AND trand, executive director of the Illinois Association of School Boards, says the bill Assistant managing editor Jan Parr THE GOVERNOR’S SIGNATURE. State Rep. “represents a major step toward providing Assistant managing editor/ Joe Cahill columnist Jonathan Carroll the type of oversight, accountability and Assistant managing editor/digital Ann R. Weiler
Another problem with TIFs, at least in Il- REPJONATHANCARROLL.COM transparency” needed to reform a munic- linois, is that the governments that create ipal nance tool that’s often criticized for Deputy digital editor Todd J. Behme them and the investors who bene t from city services, the new revenue sparked by quest of Illinois Comptroller Susana Men- depriving schools and other services of Digital design editor Jason McGregor them are not nearly accountable enough the investment ows to things like paying doza, TIF developers would have to begin their share of tax revenue growth. Associate creative director Karen Freese Zane to taxpayers. down bonds, reimbursing investors and reporting annually to Mendoza how well Carroll’s bill represents a long-overdue Copy chief Scott Williams A new bill gaining momentum in helping to nance other civic priorities. their projects are doing in terms of creat- step toward greater transparency. It de- Copy editor Robert Garcia Spring eld seeks to x the latter problem. But until now, it’s been tough to tell if all ing jobs and new property tax revenue, or serves swift passage and the governor’s Deputy digital editor/ Sarah Zimmerman In a perfect world, TIFs are meant to this nancial maneuvering really delivers. increment. at way, voters would know signature. If we must have TIFs—and audience and social media nance neighborhood investments by Sure, new developments may spring up in whether a project in line for TIF subsidies there’s reason to believe they can do good Forum editor Cassandra West essentially wagering that tax revenue will areas where they didn’t exist before, but at is as productive as real estate developers by attracting investment to places devel- Political columnist Greg Hinz rise as a result of that investment. While what true cost? promised. opers would normally overlook—then we Senior reporters Steve Daniels the level of tax revenue that came in prior Under a measure sponsored by Rep. As Crain’s political columnist Greg Hinz need to have a much better grip on who Alby Gallun to the city’s intervention continues to fund Jonathan Carroll, D-Northbrook, at the re- reported April 22, those annual reports bene ts, and how. John Pletz Reporters Danny Ecker Stephanie Goldberg YOUR VIEW Wendell Hutson Ally Marotti A.D. Quig The coming energy-storage revolution Dennis Rodkin Steven R. Strahler fter a century of power- tion is aiming for net-zero carbon not mined in the U.S. due to cost and de- der conditions where there are signi cant Contributing photographer John R. Boehm ing cars with gasoline and power by 2035, and a 100 per- mand issues. Developing novel methods to (greater than 60 percent) renewables re- * * * producing electricity using cent clean economy by 2050. Fur- cost-e ectively exploit domestic reserves quires storage with performance not satis- A Director of digital strategy Frank Sennett coal, we are at an in ection point ther, they aim to electrify the en- has to occur to satisfy the demand. ed by lithium-ion batteries. in the energy sector. Batteries, tire federal eet and install more But this is not enough. e economical- e magic widget to decarbonize these Director of custom media Sarah Chow considered the “holy grail” for de- than 500,000 charging stations ly viable mineral reserves in the U.S. do not sectors may not even be a battery. * * * carbonization of transportation across the country. ese policies appear to be enough to satisfy the growing While the climate emergency requires Production manager David Adair and the electric grid, are at the are going to increase demand for demand. e challenge becomes more sig- immediate action, it appears the energy Account executives Claudia Hippel heart of this transition. batteries signi cantly. ni cant if we aim to electrify the entire vehi- storage device that will reverse carbon Christine Rozmanich e problem is batteries have ird, investors are seiz- cle eet. While we need to ramp up domes- emissions to achieve the 2035 goals will Bridget Sevcik been considered the key technol- Dr. Venkat Srini- ing the opportunity. In the last tic mining to satisfy the demand, the reality not be the same energy storage device that Laura Warren ogy for this transition for two de- vasan is director of year, more than twenty clean- is that our mineral supply is at risk. Other will enable full decarbonization by 2050. Courtney Rush cades. Which begs the question: Is the U.S. Depart- tech companies, from material countries, some not necessarily our allies, e latter requires sustained research fo- Amy Skarnulis this time any di erent? ment of Energy’s producers to battery makers to have a stranglehold on the supply chain. cused on inventing new storage concepts People on the Move manager Debora Stein I believe it is, with a caveat. Argonne Collab- electric vehicle companies, have Recycling of these metals, an important that are made from earth-abundant ele- Events/marketing coordinator Lauren Jackson First, the good news. We are - orative Center for raised between hundreds of mil- opportunity to bridge the supply gap, will ments, are recyclable and made using en- Project manager Joanna Metzger nally seeing market signals that Energy Storage lions to billions each in capital need to play an increasingly important role. vironmentally benign approaches. suggest we are ready for this tran- Science and from public and private markets However, most batteries are not collected for We need an energy policy that encom- Marketing manager Jessica Dalka sition. Tesla is now the world’s deputy director of to ramp up production. recycling and the process remains expensive passes this dual timeline: one that rushes Digital designer Christine Balch most valued automaker. GM has the Joint Center e con uence of growing de- for most components. Developing low-cost toward solutions to reverse the e ects of cli- Crain Communications Inc. announced a goal of selling only for Energy Storage mand and availability of massive recycling methods remains critical to meet- mate change in the short term while incen- Keith E. Crain Mary Kay Crain electric vehicles by 2035. Every Research. amount of capital means that we ing the growing need for batteries. tivizing the invention of sustainable technol- Chairman Vice chairman KC Crain Chris Crain major automotive company has a are going to see a rapid increase Focusing on these challenges is crucial ogies for the long term. Chief executive o cer Senior executive vice president plan for electri cation. And every time there in battery manufacturing capacity. Con- to rapidly move towards decarbonization. is approach comes with an important Lexie Crain Armstrong Robert Recchia are power outages because of wild res or servative estimates suggest that we need Beyond cars, we need to decarbonize bene t for the country: the deployment of Secretary Chief nancial o cer polar vortices, the importance of storage as to expand manufacturing twenty– to thir- heavy-duty trucks, rail, maritime vessels new clean energy technologies that help Veebha Mehta Chief marketing o cer the savior becomes apparent. ty-fold to satisfy the demand in the U.S. and aviation craft—applications where revitalize the U.S. economy by creating * * * G.D. Crain Jr. Mrs. G.D. Crain Jr. Second, government policies, critical for Exciting times indeed. However. the energy density requirements exceed high-paying jobs across the country. Founder Chairman private sector commitment, are moving in Most lithium-ion batteries use cobalt and that possible with lithium-ion batteries. e coming energy storage revolution sig- (1885-1973) (1911-1996) the same direction. e Biden administra- nickel as raw materials—minerals that are Similarly, stabilizing the electric grid un- nals a brighter future for us all. For subscription information and delivery concerns please email [email protected] or call 877-812-1590 (in the U.S. and Canada) or 313-446-0450 (all other locations). Write us: Crain’s welcomes responses from readers. Letters should be as brief as possible and may be edited. Send letters Sound o : Send a column for the Opinion page to editor@ to Crain’s Chicago Business, 150 N. Michigan Ave., Chicago, IL 60601, or email us at [email protected]. Please chicagobusiness.com. Please include a phone number for veri cation include your full name, the city from which you’re writing and a phone number for fact-checking purposes. purposes, and limit submissions to 425 words or fewer.
P010-P011_CCB_20210426.indd 10 4/23/21 4:15 PM CRAIN’S CHICAGO BUSINESS • APRIL 26, 2021 11 LETTERS TO THE EDITOR Insurance bosses win, we lose. Lawmakers should change that. llinois insurers are pro teering o a cha- costs just force most people to opt out of un- in people of color being more likely to be un- Currently, a bill in the state Senate In- otic health care system during a pandem- a ordable annual coverage. insured and more likely to go without care surance Committee—SB 1590—would give EDITORIAL Iic. e top executives at Blue Cross of Illi- Meanwhile, COVID-19 hit the lives of Illi- due to cost.” e report also noted employ- DOI the authority to reject unreasonable, nois’ parent company got big raises last year, noisans hard: Everything from health issues, er-sponsored insurance is not available in discriminatory or inadequate rates on be- as health insurance corporations emerged job loss, housing instability and food inse- industries with a high proportion of workers half of individuals and small businesses. largely unscathed from the economic fallout curity drove people into economic hardship of color, such as home health care, grocery is bill faces erce opposition by the insur- Much-needed change for much-criticized TIFs of the pandemic (“Blue Cross bosses pock- and poverty. and retail. ance industry and has stalled. We urge our et pay hikes,” April 16). e two executives e pandemic laid bare disparities in So, while insurance executive salaries and elected ocials to let community voices be also would have to include gures on debt who shared the CEO role in 2020 received a health care a ordability. Numerous studies pro ts are sky high, who is looking out for heard, pass this piece of legislation and em- service and borrowing as well as veri ca- whopping $22.8 million last year. show that Black and Latino people, includ- the average Illinoisan to ensure their health power the department to protect consumers tion from an independent auditor on a de- Adding insult to injury, insurers are over- ing small-business owners, are more likely care is a ordable? from unfair price increases. velopment’s projected rate of return. pricing premiums in the individual mar- than white people to nd health care unaf- It is the job of the state Department of In- Beyond that, the consultants who proj- ket, so much so that they had to return fordable. A recent report by the Illinois De- surance to help protect health care consum- JULIE SAMPSON ect increment and jobs when a TIF deal money—$2.1 billion—under the rules of partment of Insurance and Department of ers and eciently regulate the insurance Co-director, Citizen Action/Illinois is struck no longer could be hired by the A ordable Care Act. Rebates are not a Healthcare & Family Services states, “in Illi- industry. Unlike 38 other states, DOI has no STEPHANI BECKER the developer. Instead, the municipality long-term x and represent a problem: the nois, racial and ethnic disparities in health power to reject unreasonable health insur- Associate director of health care justice, Shriver that created the TIF district would select overcharging of consumers. And such high insurance coverage and access are re ected ance rates. Center on Poverty Law the consultant, presumably providing a more objective forecast on whether a city should subsidize a project. Mendoza, in a statement, says her in- tent is to “help taxpayers better under- Chief executive o cer KC Crain stand” what’s happening with TIFs, which Group publisher/executive editor Jim Kirk in Chicago alone had revenue of more Associate publisher Kate Van Etten than $926 million in 2019, the most recent * * * year for which complete data is available. Editor Ann Dwyer In the same statement, omas Ber- Creative director Thomas J. Linden trand, executive director of the Illinois Association of School Boards, says the bill Assistant managing editor Jan Parr ... “represents a major step toward providing Assistant managing editor/ Joe Cahill columnist the type of oversight, accountability and transparency” needed to reform a munic- Assistant managing editor/digital Ann R. Weiler ipal nance tool that’s often criticized for Deputy digital editor Todd J. Behme 2019 Greater Chicago Food Depository depriving schools and other services of Digital design editor Jason McGregor their share of tax revenue growth. Associate creative director Karen Freese Zane Chicago Commercial Real Estate Awards Carroll’s bill represents a long-overdue Copy chief Scott Williams BUILD-TO-SUIT PROJECT OF THE YEAR step toward greater transparency. It de- Copy editor Robert Garcia serves swift passage and the governor’s Deputy digital editor/ Sarah Zimmerman signature. If we must have TIFs—and audience and social media there’s reason to believe they can do good Forum editor Cassandra West by attracting investment to places devel- Political columnist Greg Hinz opers would normally overlook—then we Senior reporters Steve Daniels need to have a much better grip on who Alby Gallun bene ts, and how. John Pletz Reporters Danny Ecker Stephanie Goldberg YOUR VIEW Wendell Hutson Ally Marotti A.D. Quig The coming energy-storage revolution Dennis Rodkin Steven R. Strahler der conditions where there are signi cant Contributing photographer John R. Boehm (greater than 60 percent) renewables re- * * * quires storage with performance not satis- Director of digital strategy Frank Sennett ed by lithium-ion batteries. e magic widget to decarbonize these Director of custom media Sarah Chow sectors may not even be a battery. * * * While the climate emergency requires Production manager David Adair immediate action, it appears the energy Account executives Claudia Hippel storage device that will reverse carbon Christine Rozmanich emissions to achieve the 2035 goals will Bridget Sevcik not be the same energy storage device that Laura Warren will enable full decarbonization by 2050. Courtney Rush e latter requires sustained research fo- Amy Skarnulis cused on inventing new storage concepts People on the Move manager Debora Stein that are made from earth-abundant ele- Events/marketing coordinator Lauren Jackson ments, are recyclable and made using en- Project manager Joanna Metzger vironmentally benign approaches. We need an energy policy that encom- Marketing manager Jessica Dalka passes this dual timeline: one that rushes Digital designer Christine Balch toward solutions to reverse the e ects of cli- Crain Communications Inc. mate change in the short term while incen- Keith E. Crain Mary Kay Crain tivizing the invention of sustainable technol- Chairman Vice chairman KC Crain Chris Crain ogies for the long term. Chief executive o cer Senior executive vice president Cook County Central is approach comes with an important Lexie Crain Armstrong Robert Recchia design team: development partner: bene t for the country: the deployment of Secretary Chief nancial o cer Campus Health Center new clean energy technologies that help Veebha Mehta Chief marketing o cer + Chicago, Illinois revitalize the U.S. economy by creating * * * G.D. Crain Jr. Mrs. G.D. Crain Jr. high-paying jobs across the country. Founder Chairman e coming energy storage revolution sig- (1885-1973) (1911-1996) We see our work through the eyes of the people who will use them every day. Through their nals a brighter future for us all. For subscription information and delivery concerns eyes, we see places of innovation, industry, technology, healing, research and entertainment. please email [email protected] or call 877-812-1590 (in the U.S. and Canada) The result? 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P010-P011_CCB_20210426.indd 11 4/23/21 3:29 PM 12 APRIL 26, 2021 • CRAIN’S CHICAGO BUSINESS Northern Trust on track to forgo $250 million in fund fees this year Fees ordinarily charged to investors parking cash in money-market funds are being waived at a clip beyond what was seen after the Great Recession JOHN R. BOEHM R. JOHN The projected fee waivers for 2021 add up to about 4 percent of Northern Trust’s $6.14 billion in revenue last year. BY STEVE DANIELS ing the same effects. They re- ported first-quarter earnings Northern Trust is on course this month and saw their stock to set the wrong kind of record prices drop meaningfully in re- this year. sponse to the high level of fee THANK YOU TO OUR BENEFACTOR SPONSOR Waivers of fees normally waivers. charged to investors parking Northern’s stock price, on cash in the bank’s money-mar- the other hand, closed up 1.1 ket mutual funds are on track percent April 20 on a down day to well exceed $200 million in for the market. 2021. That would easily best the peak waiver total for Chica- POSITIVES go’s largest locally headquar- Investors seemed more pre- tered bank in the aftermath of pared for Northern to report the Great Recession. bad news on money-mar- In 2014, the last round of ket fees. And other aspects of waivers peaked at $130 million. Northern’s quarter were more In 2021, Northern is projected positive. to lose out on $250 million in It added back to earnings money-market fees if short- $30 million it had previously Thursday, May 13, 2021 term interest rates stay about reserved for future loan losses. where they are now. To put That helped blunt the impact of Learn more & register for the that amount in perspective, it’s the $50 million in fee waivers. virtual event today: chicagosfoodbank.org/realestate about 4 percent of Northern’s Most banks that had set aside $6.14 billion in revenue last substantial amounts for loan year. losses during the early stages of Northern Chief Financial Of- the pandemic have been pleas- ficer Jason Tyler disclosed that antly surprised at how little in jarring bit of bad news on an April 20 earnings call “IT’S A VERY, VERY DIFFICULT with analysts. DYNAMIC WE’RE FACING. . . .WE’VE Northern, like other big banks SEEN OVERNIGHT REPO AT EXTREMELY NONPROFITS: catering to wealthy individuals and LOW RATES , AND THAT’S VERY institutional inves- DIFFICULT FOR A $275 BILLION POOL Do you have tors, doesn’t col- lect the fees on the OF MONEY MARKET FUNDS.” low-return funds because interest Jason Tyler, chief nancial o cer, Northern Trust a new 2021 rates are so low that, if a fee were added, investors bad loans they’ve had to write would have to pay to park their off. event to share? cash. Longer-term interest rates Likewise, Northern laid off have begun to lift from ultra-low hundreds in the first quarter, levels last year and early this year, reducing employee-compen- On June 21 Crain’s will be publishing but short-term rates haven’t fol- sation expenses—something lowed suit, Tyler said. investors applauded. At the Big Dates 2.1, an update for all “It’s a very, very di cult dy- time, CEO Michael O’Grady non-profit fundraising events namic we’re facing,” he said. “As cited the revenue pressures much as we’ve seen the 1-year, tied to rock-bottom interest taking place July-December 2021. 5-year, 10-year up, we’ve seen rates. Submissions are FREE. overnight repo at (extremely low The bank also resumed share rates), and that’s very di cult repurchases, buying back $136 Deadline is May 21. for a $275 billion pool of mon- million of its own stock. ey-market funds.” Revenue was flat compared with the same quarter last year HEADING HIGHER despite double-digit increases Submit Your Event at Northern waived $50 million in assets that Northern either chicagobusiness.com submitbigdates21 in money-market fees in the manages or holds and process- / first quarter. In future quarters, es for investors. Ordinarily, at current rates, that will in- a robust stock market means crease to between $65 million higher fees for Northern, but and $70 million, Tyler said. the fee waivers helped negate Northern’s chief competi- that. Net income rose 4 percent tors, Boston-based State Street to $375 million. Earnings per and New York-based Bank of share rose 9 percent, thanks to New York Mellon, are suffer- the buybacks.
P012_CCB_20210426.indd 12 4/23/21 3:29 PM Thank Yo u To All Of The Employers Across Illinois Who Support Families’ Access To High-Quality Child Care And Early Childhood Education.
We — the undersigned Illinois business executives — call upon our state and federal policymakers to prioritize the resources necessary for child care and early childhood programs and their essential workers to stabilize our entire workforce, restoring and revitalizing our economy.”
Jack Lavin Charles Moore President & CEO, President & CEO, McLean Chicagoland County Chamber of Chamber of Commerce Commerce, Bloomington Greg Case Chris Hembrough CEO, Aon, Chicago President & CEO, The Francie Schnipke Greater Springfield Richards Chamber of Commerce Vice President, Social Mirinda Rothrock Responsibility, President, Decatur The Allstate Foundation Regional Chamber Christa Markgraff of Commerce Vice President, Nicor Gas, Marin Gjaja Naperville Managing Director and Lisa Weitzel Senior Partner, The President, Illinois Boston Consulting Group, Association of Chamber Chicago of Commerce Executives, Nick Scodro Springfield Head of Business Rob Stewart Development, RBN Senior Vice President, Insurance Services, State Farm Chicago Jennifer Steans Brian McGuire CEO, Financial President & CEO, Investments Corp., Associated Equipment Chicago Distributors, Schaumburg Maureen Kahn Keith Krutz President & CEO, Blessing President, IMS Health System, Quincy Buhrke-Olson, John Blasi Arlington Heights Information Security Lisa Savegnago Technology and President, Nameplate & Operations Lead, Panel Technology, Carol Accenture, Chicago Stream Mike Paone Manny Sanchez Vice President, Joliet Founder/Managing Region Chamber Principal, Sanchez, of Commerce & Industry Hoffman & Daniels, LLP, Chicago
To read the full statement and find out more, see www.familiesfirstil.com/for-employers/
Employers for Child Care & Early Learning
21cb0176.pdf RunDate 4/26/21 FULL PAGE Color: 4/C Advertising Section TECHNOLOGY Discovery Partners Institute, Chicago PEOPLE ON THE MOVE To place your listing, visit www.chicagobusiness.com/peoplemoves or, for more information, contact Debora Stein at 917.226.5470 / [email protected] Discovery Partners Institute (DPI) is pleased to announce that Gina BANKING / FINANCE CONSTRUCTION ENGINEERING LAW Grant and Charity Freeman have joined J.P. Morgan Private Bank, Clune Construction, Chicago Bowman, Chicago Croke Fairchild Morgan & Beres LLC, the DPI team. Gina Grant Chicago Chicago joins as the Associate Clune Construction is Bowman is pleased to Director of K-12 Student Grant Stephen Pendleton pleased to announce announce that Paul Michael Frisch joins Programming for middle is a Vice President at that Lisa De Lor has Kovacs, PE is joining Croke Fairchild Morgan and high school students, J.P. Morgan Private been promoted to Vice Bowman as a principal, & Beres as Partner after to help them start careers serving as Senior Advisor in computer science and Bank in Chicago. In President, Director civil engineer, and and Legal Counsel to this role, he advises of Human Resources. key leader for the Lisle related fields. Mayor Lightfoot, advising Charity Freeman joins as owners of privately Lisa has 12 years of and Chicago, IL offices. city leaders on legal, the Associate Director held businesses, experience in Human Resources He will play an integral role in policy and labor issues. Frisch of Teacher Training corporate executives and family in the construction industry. providing insights into prospective Michael will lead the firm’s and is responsible for Freeman offices, and provides guidance Clune benefited from De Lor’s clients’ needs and expectations, Government Litigation and the implementation of advice across the entirety of leadership during the COVID-19 building partnerships with Investigations Practice. teacher training programs within DPI’s their balance sheets. With more pandemic. She also leads Clune’s other project stakeholders, His career to date has community education unit, focusing on than a decade of experience, he innovative benefits program. and developing successful involved guiding clients computer and data science/analytics at through complex and the high school and community. specializes in highly customized De Lor has a Bachelor’s degree strategies for Bowman’s pursuit of high-stakes investigations, investment strategies, and supports from Purdue University and is a infrastructure projects, not only in enforcement matters, clients across pre- and post-liquidity certified Professional in Human the Chicago area, but nationwide. litigation, and negotiations Dixon planning, concentrated stock Resources by the Human Resource at the intersection of positions, tax minimization, lending, Certification Institute and SHRM. government and business. banking and philanthropy. Danielle Dixon joins the firm FINANCIAL SERVICES from Kirkland & Ellis as a Senior Associate. Her practice focuses TECHNOLOGY Lakeshore Financial Group, on the structuring, formation and management of investment funds, and Hyzon Motors, Chicago Chicago their related management companies, ranging from first-time funds of around Hyzon Motors Appoints Lakeshore Financial is $10 million to funds of over $17 billion. Adam Kroll as Chief pleased to announce CONSTRUCTION Administrative Officer: that Timothy Sedivy Hyzon Motors Inc., a Clune Construction, Chicago has joined the firm as leading global supplier of a Financial Services zero-emission hydrogen Representative. Tim fuel cell-powered Clune is happy to commercial vehicles, has appointed announce that Liza comes to us as a certified Business Valuation Adam Kroll as Chief Administrative Jessen has been LAW Officer. Mr. Kroll has an extensive career promoted to Vice Strategist. He works with small in corporate finance having spent President, Senior Project business owners to discover the Dussias Wittenberg Koenigsberger, almost 20 years in banking, followed by value of their business and what CONSTRUCTION Manager. With 15 Chicago roles in internal finance. Over his career, years of construction it means in their financial world. he has executed more than $150 Billion He’s looking forward to being in M&A, debt and equity transactions. Clune Construction, Chicago industry experience, Jessen has Dussias Wittenberg proved herself to be an impactful part of a team that supports and Koenigsberger LLP He is based in Chicago. congratulates attorneys Clune has named team player at Clune. She is grows its financial professionals as well as developing and mentoring Daniel Kessler and Will McGowan involved in all phases of a project, Kathleen Opal on Senior Vice President, from pre-construction through new professionals as they enter the business. TC120473(0421)1 their promotions to TECHNOLOGY Project Executive. close-out and is a trusted resource partnership. Both Daniel Kessler McGowan has 24 for Clune’s top clients. Jessen has and Kathleen focus their IRI®, Chicago years of construction a Bachelor of Science in Civil and practices on family law industry experience, Environmental Engineering from matters, serving clients IRI®, a global leader in overseeing a diverse portfolio Villanova University. facing a wide range innovative solutions and of high-end interior build-outs FINANCIAL SERVICES of issues, including services for consumer, retail custody/allocation of for some of the Chicago area’s and media companies, has Schechter, Chicago / Birmingham, MI parental responsibilities, appointed Kirk Perry as most respected companies. pre- and post-nuptial He has earned a reputation for President and CEO and Schechter Investment agreements, contribution a member of its Board of adhering to a project’s schedule Advisors (“SIA”), an to college education, Opal Directors, effective May 17, 2021. Mr. and budget, while maintaining enforcement matters, independent registered Perry succeeds Andrew Appel, who strong industry relationships. and the disposition of marital and investment advisor has successfully led a transformation of McGowan has a Bachelor of non-marital assets. Daniel is noted IRI for nearly a decade. “I am honored CONSTRUCTION firm, has announced Science Degree in Building for his sensitive and sophisticated to lead IRI and its immensely talented the addition of Joseph Construction Management from handling of cases involving medical team,” said Mr. Perry. Clune Construction, Chicago Drozd, Jr., CFA® as and mental health concerns. Purdue University. a Senior Investment Advisor. This Kathleen has deep experience in Dan Nielson has is the fourth high-level hire for litigating complex financial matters, been promoted to Schechter since Q4 2020. Drozd, including business valuation and the Vice President, Senior who will be based in Chicago for tracing of assets, related to divorce. Project Manager at Schechter, is an accomplished and Clune Construction. entrepreneurial portfolio manager He began his career at and family office professional CONSTRUCTION WEALTH MANAGEMENT Clune as an Intern, and with over 12 years of experience LAW Clune Construction, Chicago now has 12 years of construction in deploying capital into private Strategic Wealth Partners, industry experience. During his Laner Muchin, Ltd., Chicago companies, real estate, hedge Chicago Clune Construction tenure, he has completed more funds, and alternatives. than 1.5 million square-feet of Laner Muchin is proud has named Denise to welcome Christina Strategic Wealth Moy Duffy Senior high-end interior build-outs. Partners, an Nielson has a Bachelor’s degree in Wernick as Of Counsel Vice President, to the firm. She independent wealth Marketing. Denise has Construction Management from management firm, is Western Illinois University. LAW represents unionized 14 years of marketing employers in collective delighted to announce experience in the CRE the hiring of Jessica Latham & Watkins LLP, Chicago bargaining, grievance industry. Duffy brings a unique proceedings, arbitration and Pickens as Chief and well-rounded perspective Nathan Davis has joined benefit contribution litigation. Operating Officer. With significant to Clune’s Marketing team, and the Chicago office of She regularly assists employers experience in the industry, she joins was named to Crain’s Notable Latham & Watkins as a with resolution of grievance the firm’s leadership team where Executives in Marketing in partner in the Mergers & actions, collective bargaining she is responsible for operations 2020. She is a member of Chief, Acquisitions and Private agreements, project labor and administrative functions, Equity Practices with the a private network of women agreements, prevailing wage including human resources, leaders, and has a Bachelor Corporate Department. technology, compliance and Davis advises private equity firms issues, jurisdictional disputes, of Business Administration in and key man agreements. She finance. She will also assist with the Marketing, and a Bachelor of Arts and their portfolio companies on mergers and acquisitions and previously served as in-house firm’s growth. Previously, Jessica in Asian Languages and Literature other corporate matters, including counsel to a prominent Chicago was with Willis Towers Watson as from the University of Iowa. To order frames or plaques divestitures, leveraged buyouts, construction union. Chief of Staff, Delegated Solutions. of profiles contact joint ventures, and recapitalizations. Lauren Melesio at He also has experience representing [email protected] or public company clients and their 212-210-0707 boards on mergers and acquisitions. CRAIN’S CHICAGO BUSINESS • APRIL 26, 2021 15
CANNABIS CASH: Violence prevention efforts get boost from from state’s marijuana tax revenue. PAGE 16 TIME TO ACT: A call for policymakers to x aws in Illinois’ rearms licensing system. PAGE 20 FROM THE FRONT: Two violence prevention leaders’ GUN VIOLENCE AND COVID-19 views on working through a pandemic and politics. PAGE 23
CHICAGO’S FLEETING MOMENT BRIAN STAUFFER BRIAN The COVID-19 pandemic added to an already complicated mix of reasons MORE FORUM ONLINE See Crain’s in-depth stories, interactives | BY DAVID MENDELL and guest columns on Gun Violence and the city’s gun violence keeps on climbing COVID-19 as well as these previous topics:
IT’S SPRING IN CHICAGO, a time of renewal, wee hours of the morning, essentially setting inability to tackle the issue that never seems and a time when the daily drumbeat of gun vi- him up for the tragic incident, a response that to leave us—neighborhood violence and mur- olence always springs back to life, as well. An- resonated poorly in the community where the dered young people. other shooting. Another Chicagoan lost from shooting occurred. In 2019, Crain’s Forum reported that Chi- gun re. And more than likely, it’s a young Chi- During the days that followed, thousands cago had “a unique chance to embrace the cagoan whose life is cut short. of Little Village residents assembled in vigils methods cities like Los Angeles and New York Just in the past couple of weeks, among and protests, calling for police reforms and have used to reduce their gun violence.” e those shot and killed was a child as young as greater attention on neighborhood violence. story noted that the new mayor had hired a Manufacturing COVID-19 7. In another shooting that involved a Chicago Full-throated activists, meanwhile, marched highly regarded anti-violence strategist as a The Future of Racial Gaps police o cer and caught on a bodycam video, outside Lightfoot’s house and demanded her deputy mayor and that there was optimism Capitalism Economic 13-year-old Adam Toledo died in an alley in resignation for being slow to make reforms to this new progressive city leader with new pri- Lake Michigan Development Little Village. the Police Department and for failing to bring orities and new devotion might nally change Work-Life Taxes e result has been nothing short of a com- a safe climate to troubled South and West Side course. Freight Jobs & Wages munity trauma. Following the video release communities. Less than two years later, Lightfoot’s touted Regional Cannabis by the Civilian O ce of Police Accountabili- Lightfoot, after all, came into o ce 23 deputy mayor is gone, Lightfoot is under po- Water ty, Mayor Lori Lightfoot, noting that she has months ago proclaiming that ending Chica- litical siege from all sides and still people keep Planning a 13-year-old of her own, grew emotional go’s unyielding neighborhood violence would dying on city streets. How did this happen Health Care Gun Violence during a news conference talking about the be her top priority, only to see homicides again? And why does the city’s gun violence Education Housing boy’s gut-wrenching, all-too-vivid death by a jump 50 percent during her second year in seem to go unabated? Police Reform Pensions single gunshot. Lightfoot blamed an adult for o ce. Transportation providing a handgun to the young teen in the e mayor has become the face of the city’s See GUNS on Page 18 ChicagoBusiness.com/CrainsForum
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P015-P023_CCB_20210426.indd 15 4/23/21 3:14 PM 16 APRIL 26, 2021 • CRAIN’S CHICAGO BUSINESS
Cannabis tax revenue targets violence prevention debris, graded the land, planted 34 Cook County groups new grass and trees and added low fences to 110 clusters of vacant lots. awarded grants that Researchers examined police re- ports and polled neighbors about program leaders see as the impact. In areas below the pov- erty line, there was a 29 percent the start of a ‘long road’ drop in gun violence near treated lots, per the police, a 22 percent BY A.D. QUIG drop in burglaries and a 30 percent reduction in nuisances like van- At a time when homicides are dalism, public drunkenness and projected to increase, on-the- illegal dumping. Neighbors report- ground organizations focused on ed feeling safer and spending more preventing violence in Chicago are time outdoors. getting a nancial boost from an Foreman, whose own father was unlikely source. Roughly $32 mil- incarcerated and whose daughter lion in grants, funded with tax reve- has lost friends to gun violence, nue from Illinois’ nascent legalized says his plans are about “so much recreational marijuana industry, more” than plantings. He hopes are being put to use as part of the those trained to do landscaping state’s Restore, Reinvest & Renew will launch their own business- program, or R3. es and win contracts to maintain Eighty organizations across Il- green spaces throughout the city, linois—34 in Cook County—won that ower-cutting gardens will at- grants ranging from $20,000 to $2.5 tract tourists who in turn will shop million to fund violence preven- and eat more at local business- tion, civic legal aid, economic and es and that neighborhood pride youth development, and re-entry swells. e orts. e next few months will be “ at $2.5 million is a little shot a trial run of government e orts to of trying to x some of the stu that repair some of the damage brought created the conditions that make by what the state called the “failed it OK to shoot someone on Lake war on drugs.” Shore Drive, for a 13-year-old to Rather than investing in polic- carry a gun,” Foreman says, and ing or the criminal justice system, “ultimately, make the people in the the grants are meant to be “re- community value the land . . . hold storative,” according to R3’s board each other accountable.” chair, Lt. Gov. Juliana Stratton— e Chicago Urban League and focusing on direct investments in the Safer Foundation together won areas with high rates of gun injury, $1.9 million for a workforce devel- child poverty, unemployment, im- opment grant proposal, which will prisonment and prison releases. help fund re-entry programs for One grantee is going to be us- those exiting the criminal justice ing stipends to help fund a “Shark system. ey will use the funding Tank”-style entrepreneurial con- to boost their existing urban tech test. Another will help start a Girl jobs program with Comcast, which Scout troop with curriculum cen- provides an accelerated training tered on Michelle Obama’s book program for long-term unem- “Becoming.” A $600,000 grant to ployed adults. Cook County’s Justice Advisory “For our participants, we will Council will be broken up into sev- look at recidivism—whether or not eral subgrants, including to Cease- those individuals who are partici- Fire in Roseland, which will men- pating in our program nd them- tor two dozen high-risk clients, and selves back in prison or back in jail to trauma-related training at Youth Ghian Foreman leads the Emerald South Economic Development Collaborative, recipient of a $2.5 million grant funded by cannabis tax revenue. or reo ending—that will be a clear Guidance’s Becoming a Man pro- measure,” Urban League President gram in suburban ornton Town- of the issues that lead to con ict: munities all across our state,” says Matter announcements,” he says. Karen Freeman-Wilson says, as ship High School. unemployment and underemploy- Christian Perry, spokesman for the is could be a chance for corpo- well as “how many people do we Spring eld is still grappling with ment; the fraying of safety net ser- Illinois Criminal Justice Informa- rate Chicago to follow through, get into the job market and how how minority owners can have vices o ered at churches, schools tion Authority, which is helping Foreman believes. long can they stay in as a result of a bigger stake in the burgeoning and nonpro ts; and a sense of administer the program. “ is is a Emulating a similar program the tools we give them?” cannabis industry. But as the in- hopelessness about the future. long road that we’re starting on.” in Philadelphia, Emerald South’s e Urban League won a sepa- dustry continues to expand and After years of declining homicide e Emerald South Economic grant plans call for hiring about 40 rate planning grant to fund four re- tax receipts grow with it, R3 will be numbers, Chicago ended 2020 with Development Collaborative got people to serve as a green corps to searchers who will work with com- authorized to dole out up to $125 769 homicides and 4,033 nonfatal R3’s largest single grant, $2.5 mil- clean up and landscape 20 to 30 munity members to think through million per year for grants like these shooting victims, gures not seen lion. Launched in 2018 in partner- acres of vacant land in the South potential reparations programs. and assess outcomes reported by since 2016. Experts at the Univer- ship with the Obama Foundation, Side. e e orts will be paired with Freeman-Wilson says she hopes grantees. e board’s e orts are just sity of Chicago Crime Lab are pro- the University of Chicago, the R3 forges new partnerships and beginning. Experts have said set- jecting that at the pace set as of the city and other community CHICAGO ENDED 2020 WITH collaborations and helps nd solu- ting aside dedicated funds is both end of March, 2021 could end with groups, its goal is to improve tions that work. long overdue and urgently needed. more than 1,000 homicides. collaboration and quality of life 769 HOMICIDES AND 4,033 irty million is a lot of money, Demand for R3 grant dollars far Anti-violence program leaders, in communities along the lake but also not enough “for a state outstripped availability. Nearly 400 however, acknowledge that R3 will on the South Side. NONFATAL SHOOTING VICTIMS. this size for the needs people have,” organizations submitted propos- not be a cure-all. President and CEO Ghian she says. By the same token, “there als. And by the time the application “We know that there’s no magic Foreman viewed the R3 grant as a other entrepreneurship and art has to be—for us included—a clear deadline hit in July, Chicago-ar- pill or wand that can be waved that chance to prove its South Side vi- programs. evaluation of the impact of the ea violence seemed to be surging will x all the systemic issues that sion to larger, long-term funders In that 2018 Philadelphia exper- grants. If we can’t show that we are alongside COVID cases. arise from chronic disinvestment like Caterpillar, John Deere, Wal- iment, helmed by Columbia Uni- changing people’s lives or helping Street outreach workers sug- and lack of opportunity in disad- greens, McDonald’s, Sunbeam and versity’s Mailman School of Public people to change their lives, then gested the virus exacerbated many vantaged neighborhoods and com- Chase. “I saw a lot of Black Lives Health, crews removed trash and that money is not well spent.”
JIM KIRK PUBLISHER • ANN DWYER EDITOR • CASSANDRA WEST FORUM EDITOR • THOMAS J. LINDEN CREATIVE DIRECTOR • JASON McGREGOR DIGITAL DESIGN DIRECTOR • KAREN FREESE ZANE ASSOCIATE CREATIVE DIRECTOR • SCOTT WILLIAMS COPY CHIEF
P015-P023_CCB_20210426.indd 16 4/23/21 3:14 PM Exploring solutions to the biggest challenges facing Chicago and Illinois
Each month, Crain’s Forum elevates the discussion around critical issues aecting the city and state, as well as the local economy.
2021 Topics January 22 - Lake Michigan, Troubled waters February 19 - The Future of Capitalism, Socially conscious investing gains currency March 19 - Manufacturing, Quick rebound sets industry up for changing future April 23 - Gun Violence and COVID-19, Chicago's seemingly unabated tragedy
Be sure to follow the Crain's Forum for new topics every month.
Read more at ChicagoBusiness.com/CrainsForum
Presented by
21cb0192.pdf RunDate 4/26/21 FULL PAGE Color: 4/C 18 APRIL 26, 2021 • CRAIN’S CHICAGO BUSINESS
GUNS Continued from Page 15
“It’s political; it’s institution- who left that post in October, less al; it’s the Chicago way,” laments than 16 months after being ap- Lance Williams, a former anti-vi- pointed. “But the pandemic, cou- olence outreach worker on the pled with the loss of legitimacy of South Side and now a professor at government in the post-George Northeastern Illinois University. Floyd era, really brought forth a He cites a litany of reasons why perfect storm, in terms of violence Chicago has been unable to solve in the communities that were al- its violence problem: hyper-seg- ready su ering.” regated neighborhoods, dysfunc- Lee and anti-violence advocates tional local schools, traumatized say the pandemic prevented street families, endemic urban poverty, outreach workers from in-person disinvestment, blame-game poli- communication that could inter- tics, a city awash in handguns and, cept violent crimes before they perhaps most of all, human des- occur. Also, community events A protester holds a sign commemorating a man who was shot and killed by police in Chicago. Thou- peration. that nonviolence groups and the sands of people came out in April to call for police accountability in the death of Adam Toledo. But the biggest impediment, city were beginning to regular- Williams says, is a lack of will and ly hold in neighborhoods were parents have failed them and soci- commitment to end violence. paused. Moreover, young people ety itself has failed them, he says. “We’re spending what, $16 mil- were thrown out of routines that Toss in a pandemic and access to lion, on anti-violence? is is a kept them productive, such as go- weapons, and a bad situation be- multibillion-dollar problem that ing to school or work. Inmates at comes a desperate one. has been with us for generations.” Cook County and other jails were e release of inmates from the released to the streets with no way Cook County penal system be-
THE PANDEMIC to earn a sustainable living during OSGOOD ZAC cause of COVID concerns made ere’s little doubt that Light- a pandemic. Outreach team and victim advocates from the Institute for Nonviolence Chicago on the streets of Austin in mid-April. for an even more toxic blend, Wil- foot’s initial, aggressive e orts to Outreach e orts still have not liams believes. Lightfoot, mean- attack Chicago’s violence were returned to normal. For exam- tober to return to the nonpro t might agree that the pandemic assault weapon if you are a civil- while, points to the pause in crim- foiled by the pandemic. Chicago ple, recent neighborhood events sector. She still advises the mayor pushed the city over the brink, but ian,” Lightfoot said during a news inal trials due to the pandemic was not alone in seeing murders assembled by the Institute for but now works at Chicago CRED, they also say the mayor’s approach conference in mid-April, when and says they must be restarted dramatically increase in 2020. Nonviolence Chicago, a street out- a South Side anti-violence and to stemming violence has fallen asked about the city’s violence. “It immediately. With millions tossed out of work, reach and counseling organiza- “social impact” organization. Lee short of what’s necessary. Light- is insane.” “You’ve got all these guns out major cities like New York and tion, have been sparsely attended. was the key City Hall o cial who foot drew signi cant criticism for In Illinois, the number of back- there, and you’ve got a new pop- Philadelphia also saw a surge “All of that had a dampening ef- was leading Lightfoot’s approach spending pandemic-related re- ground checks, which is a barom- in killings in 2020. Most experts fect on the heroic work that these to tame gun violence by commu- sources on policing rather than on eter for gun sales, went through the agree that the pandemic and civil neighborhood outreach practi- nity-driven solutions rather than a root causes of community poverty roof in 2020. More than 7.4 million unrest contributed to these homi- tioners are doing,” Lee says. law-enforcement strategy. and disillusion. Lightfoot devoted background checks were run last cide spikes. Lee herself appears to be a po- Replacing Lee on an interim ba- $281.5 million from a federal relief year, compared with 4.9 million in Homicides in Chicago climbed litical casualty of the pandemic. sis is Norman Kerr, a former direc- package passed last year to police 2019, according to data from the A highly regarded an- tor of CeaseFire who moved onto payroll and bene ts. National Instant Criminal Back- “IN ANY KIND OF CRISIS . . . WHETHER ti-violence strategist the city’s team under Lee. Kerr “And for what? We wound up ground Check System. at’s com- who was instrumental oversees the O ce of Violence Re- with the highest crime rate in 30 pared to 1.6 million in California IT’S A PANDEMIC, WHATEVER . . . in taming Los Angeles’ duction, funded by $31 million in years,” community activist Ja’Mal and just 507,940 in New York. violence problems, city and federal money. Its man- Green says. “It’s like the quintessentially PEOPLE GO OUT AND GET GUNS.” Lee drew the wrath of date is to coordinate anti-violence “We’ve been lied to since the American response to any crisis— Susan Lee, former deputy mayor for public safety some Chicago alder- e orts throughout the city with an beginning of this administration people want to get guns to protect men, particularly in emphasis on funding street out- so much that the people have lost themselves,” Lee says. “In any kind the Black caucus, for reach agencies and helping those hope,” Green says. “I don’t think of crisis, whether it’s protests or from 495 in 2019 to 769 last year. taking what they regarded as an agencies cooperate with city law she’s ready to make this bold whether it’s a pandemic, whatever In New York City, the number in academic approach to a street-lev- enforcement. change, to take down this racist it is, even if it’s a natural disaster, 2020 was 454, compared with 300 el problem. Kerr says the o ce is still in its system.” people go out and get guns.” in 2019. In Los Angeles, there were Lee helped assemble a city report infancy and Chicago’s anti-vio- Williams, the Northeastern Illi- 347 murders, up from 254 in 2019. on violence and a task force to study lence e orts will need sustained AWASH IN GUNS nois professor of urban communi- is is not just Chicago’s problem, the problem, but she and Lightfoot funding for a decade or more, a Without question, the “sheer ty studies who worked in violence but Chicago leads the way. were criticized for lack of transpar- strategy other major cities have volume” of Chicago violence that interruption for two decades, says “Chicago has always had a vio- ency when the commission’s meet- successfully undertaken, if shoot- Lee refers to is mirrored by the young men reach for guns when lence epidemic, by sheer volume” ings were held in private. ings and homicides are to be sup- sheer volume of something else they feel powerless and believe says Susan Lee, Lightfoot’s former In the end, Lee did not survive pressed. in our region—the number of they are left with no other options. deputy mayor for public safety, City Hall politics, resigning in Oc- Critics of Lightfoot and Lee guns. “Tell me why you need an Often, schools have failed them,
INSIDE CHICAGO’S HOMICIDE NUMBERS BACKGROUND CHECKS SURGE In three years, Chicago’s homicides dropped from 769 in 2016 to 495 in 2019. Then 2020 happened, and 769 people were In 2020, the FBI conducted more than 7.4 million firearms background checks murdered in Chicago. That’s a 55 percent increase from 2019. While homicides were up nationwide, Chicago outpaced on people in Illinois. That leads the nation. In 2019, the FBI conducted 4.9 other large cities. million Illinois background checks. CHICAGO’S DAILY HOMICIDES 2020 CHANGE IN HOMICIDES FBI FIREARMS BACKGROUND CHECKS 2020 20 2020 vs. 2019 Chicago Illinois 7.5 million 15 55.4% Kentucky 3.3 million New York Working to advance racial equity and economic mobility 10 51.3% Texas 2.3 million for the next generation in the Great Lakes region. 5 Los Angeles Indiana 1.9 million +PZDF'EOPSH 36.6% 0 Florida 1.9 million Sources: Chicago Police Department, Crain’s reporting, Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. National Instant Criminal Background Check System
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mother and helping to raise three of her grandchildren. Wise doesn’t blame others for the turmoil in her life. She says she was drawn to street and party life as a teenager, had children and then failed to be present enough in her sons’ lives to make sure they stayed free of trouble. Now, because the men have had altercations that resulted in shootings, grudges are harbored on all sides, and her sons have no choice but to arm them- selves for protection, she says. Wise advocates a zero-toler- ance policy for people involved in shootings, including her sons. She
GETTY IMAGES GETTY IMAGES sees a punitive justice system as A protester holds a sign commemorating a man who was shot and killed by police in Chicago. Thou- Community activist Ja’Mal Green, right, attends a rally April 15 in protest of the killing of 13-year- the only recourse but admits this sands of people came out in April to call for police accountability in the death of Adam Toledo. old Adam Toledo by a Chicago police o cer in March. is a cleanup strategy and not a pre- vention strategy. She advocates an parents have failed them and soci- ulation of shooters and criminals law enforcement, and everything around each day, just praying for end to bail bonds for people with ety itself has failed them, he says. released with no way to sustain just got completely out of control, survival—for themselves, their any kind of gun charge. Toss in a pandemic and access to themselves during COVID,” Wil- and violence goes way up.” neighbors, their loved ones. She is under no illusions about weapons, and a bad situation be- liams says. “And then the third Says Lightfoot: “ is is mad- Keauna Wise, 43, is a lifelong her present circumstances, she comes a desperate one. part is the policing changes. e ness. We are allowing very violent Roseland resident who has experi- says. She is all too aware that the e release of inmates from the police are being portrayed in the people back onto the streets, and enced an alarming amount of gun next gun death in Chicago could Cook County penal system be- community as racist because of they are terrorizing our communi- violence. Her brother and a step- be one of her grown children.
ZAC OSGOOD ZAC cause of COVID concerns made George Floyd. And this is on the ties over and over again.” son both were killed by gunshots. “By God’s grace, my sons are for an even more toxic blend, Wil- heels of Laquan McDonald. So the Her adult sons both have been still here,” Wise says through a liams believes. Lightfoot, mean- police are incensed, and they’re ‘GOD’S GRACE’ IN THE NEIGHBORHOOD shot and survived, the shootings voice weary from health problems assault weapon if you are a civil- while, points to the pause in crim- looking around and thinking, ‘I For people existing in the spurred by various disputes with and psychological trauma. “But ian,” Lightfoot said during a news inal trials due to the pandemic can’t make any arrests because midst of Chicago’s neighbor- other young men in the neighbor- I pray every day for God to cover conference in mid-April, when and says they must be restarted there is no place to put these hood violence, political protests hood, Wise says. Su ering from them. Every day, I pray, and I wait asked about the city’s violence. “It immediately. people anyway.’ So the result is, and anti-violence strategies can various health conditions, includ- for that knock on the door and a is insane.” “You’ve got all these guns out there’s just no accountability in sound like something from an ing ovarian cancer, Wise has been man to tell me that one of my ba- In Illinois, the number of back- there, and you’ve got a new pop- the streets, no engagement with ivory tower. ey wake and look living with her 85-year-old grand- bies is gone.” ground checks, which is a barom- eter for gun sales, went through the roof in 2020. More than 7.4 million background checks were run last year, compared with 4.9 million in 2019, according to data from the National Instant Criminal Back- ground Check System. at’s com- pared to 1.6 million in California and just 507,940 in New York. “It’s like the quintessentially American response to any crisis— people want to get guns to protect themselves,” Lee says. “In any kind of crisis, whether it’s protests or whether it’s a pandemic, whatever it is, even if it’s a natural disaster, people go out and get guns.” Williams, the Northeastern Illi- nois professor of urban communi- ty studies who worked in violence interruption for two decades, says young men reach for guns when they feel powerless and believe they are left with no other options. Often, schools have failed them,
In 2020, the FBI conducted more than 7.4 million firearms background checks on people in Illinois. That leads the nation. In 2019, the FBI conducted 4.9 million Illinois background checks. FBI FIREARMS BACKGROUND CHECKS 2020
Working to advance racial equity and economic mobility for the next generation in the Great Lakes region. +PZDF'EOPSH
Sources: Chicago Police Department, Crain’s reporting, National Instant Criminal Background Check System
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EVIDENCE-BASED SOLUTIONS Direct resources to those who need them most ast month, President Joe sonally impacted by decades of empower them to succeed. READI does Biden announced the over-policing, mass incarcer- this by connecting individuals to paid LAmerican Jobs Plan, an ation and economic neglect. transitional employment and job train- ambitious, multiyear economic ese men and their peers are ing, hiring people from the communities recovery plan that, among other 54 times more likely than the we work in, and investing in community things, proposes investing $5 average Chicagoan to be shot organizations and infrastructure. Since billion in evidence-based com- or killed. Eighty percent have our launch in 2017, we have paid $9 mil- munity violence intervention experienced violence them- lion directly to men most a ected by gun programs. If Congress passes selves, and even more have lost violence through wages and stipends, and the proposal, this unprecedent- a family member to violence. we have invested over $20 million into our ed investment would be a bold Eddie Bocanegra irty-four percent have been community-based partner organizations first step in addressing decades is the senior shot at least once. ese men, to help build capacity. of racist federal policies that director of READI the vast majority of whom are READI is being rigorously evaluated have systemically oppressed Chicago, a pro- Black, grew up watching their and, although the study is not done, the Black and Brown individuals, gram led by Chica- fathers, uncles and older broth- early outcomes show real promise in resulting in a cycle of intergen- go-based nonpro t ers killed or jailed. at takes a helping to keep men safe. Community vi- erational poverty, violence and Heartland Alliance psychological toll. olence intervention programs in Chicago trauma. in collaboration If we truly want to “build back like READI and Chicago CRED are helping Since President Richard with six local part- better” after a year of unprece- individuals and communities heal, but Nixon announced the “war ner organizations. dented crises, then we must use we need more resources to get care to the on drugs” in 1971, the toll of It tries to reduce this moment to address Amer- people who need it most. enforcement- rst policing gun violence by ica’s appalling legacy of racial President Biden’s proposed Ameri- and punitive criminal justice connecting people inequity. at requires we direct can Jobs Plan would make a multiyear policy has continued to mount, to transitional jobs, our country’s resources to end commitment to addressing our country’s totaling an estimated $1 trillion. behavioral therapy this cycle of trauma, poverty legacy of trauma, and members of Con- at’s more than $3.3 billion and supportive and violence before it continues gress should pass the plan without delay. spent annually to incarcerate fa- services. into another generation. But our city and state leaders have an thers, brothers and sons—entire at’s what READI Chicago is opportunity to help communities that are families. Chicago alone spent more than designed to do. We connect people most reeling from gun violence right now, and $260 million incarcerating residents of our impacted by violence with the mental they too must act. e American Rescue ve most violent neighborhoods between health supports they need to begin to heal Plan—which was passed by Congress in 2005 and 2009 alone. from complex trauma, and we help them March—has already sent billions of dollars e high rates of violence we have seen nesses, economy and country to thrive, e men we serve in READI Chicago—a develop skills to cope in stressful, some- in federal relief to Illinois and Chicago to over the past decades, and especially the we need to push our elected o cials to trauma-informed community violence times life-or-death situations. help address the impacts of COVID-19. past year, are a direct result of structures put money where it is so sorely need- intervention program that supports those But reversing decades of disinvestment Our leaders should allocate a portion of and systems that are denying access to ed: in the communities where it’s been most likely to die from gun violence—are and systemic oppression requires that we this funding to evidence-based communi- safety, opportunity—and justice—in Black diverted from for decades. President the sons and grandsons of people per- just don’t help communities heal, but we ty violence intervention programs today. and Brown communities. For our busi- Biden has given our leaders in Chicago,
PREVENTIVE MEASURES But signi cant data collection and analysis gaps remain that prevent e ective administration of the FOID system, curtail oversight of state authorities and erode the public’s con dence. Modernized FOID can Second, secure federal funds to help. Before COVID-19, state funds were insu cient to adequately invest in the stem gun-sales surge FOID system. With state funding now even more scarce, Illinois must take advantage of federal resources available to support record surge in gun sales administrative delays and high- rearms background checks. could not have come at lighting the need for upgraded Since 2015, 48 of 50 states have applied A a worse time for Illinois’ data infrastructure, additional for and received a combined $300 million aging firearms licensing system. dedicated resources and a more in federal funding to improve their back- As guns deaths also spike in the streamlined licensing process so ground check systems and the submission region, policymakers must take FOID can realize its potential. of prohibiting records through the Nation- steps to realize the promise this In 2020 alone, the Illinois State al Criminal History Improvement Program system offers in reducing gun Police, the agency charged with and the NICS Acts Record Improvement violence and saving lives. managing FOID, received more Program. Licensing systems—Illinois’ than 483,000 applications to Only Illinois and New Mexico have not rearm owners identi cation Tim Daly is a se- obtain a rearms license, nearly received—or even applied for—funding card system is one example— nior program o - double the number of applica- through these programs over that time. make sure that a comprehensive cer focused on gun tions in 2018 and almost triple Meanwhile, several states have received background check is complet- safety policy in the the number from 2017. signi cant support, including Arizona,
ed prior to a gun sale and are Joyce Foundation’s is perfect storm—an aging BLOOMBERG which has leveraged nearly $12 million among the most e ective tools Gun Violence Pre- FOID system, a tsunami of in federal funds since 2016 to maintain a in ensuring guns don’t get into vention & Justice gun sales and a spike in gun should take: 2019 workplace shooting in Aurora. State statewide task force focused on improving dangerous hands. States that Reform program. deaths—should be viewed by First, invest more time, money and e ort police examined how data and communi- the state’s background check records and have successfully implemented e Joyce Founda- policymakers as a mandate to into gathering better data. Not just on FOID cation gaps led to a signi cant number of closing data gaps. such a licensing policy have tion is a sponsor of strengthen Illinois’ rearms applications, but on all data streams that individuals maintaining possession of their Finally, refresh the FOID policy itself. experienced lower levels of gun Crain’s Forum. licensing system in order to save feed into or are connected to the FOID sys- rearms after their FOID cards had been A 2019 report by the Johns Hopkins homicides and suicides. lives. And given that this surge tem. And make this data publicly available revoked. In the months and years that fol- Center for Gun Policy & Research, com- However, the surging demand for re- shows no sign of ebbing, policymakers in a timely, regular and accessible way. lowed, state police have released new data missioned by the Joyce Foundation, iden- arms in Illinois has put considerable stress must act now. FOID’s data de ciencies were partly on the FOID system and proposed new ti ed several weaknesses and gaps in the on the decades-old FOID system, causing Here are three actions Illinois o cials revealed in the aftermath of the February information-sharing practices. FOID law and o ered recommendations
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CAUSES AND EFFECTS A public health epidemic that must be addressed un violence is a public to death each year. at means health crisis, but at the 1,800 empty school desks and Gfederal level we are nei- chairs at family dinner tables. ther doing enough to prevent it Black children and teenagers nor to mitigate its impacts. We are 14 times more likely to have seen the mass shootings be killed by a gun than white that have claimed the lives of children. shoppers, salon workers and While I work with my col- pedestrians so far this year. leagues on both sides of the However, what causes deeper aisle to advance gun violence concern is how prevalent and U.S. Rep. Robin prevention legislation, there is pervasive gun violence is in the Kelly, D-Ill., is critical work that can be, and daily lives of our community a co-chair of the is being, done by community members. Congressional leaders here in Chicago and We are battling a public Gun Violence across the nation to address the health epidemic, but we are Prevention Task root causes of this epidemic. not treating it that way. We Force and chair Perhaps the most impactful must address the far-reaching of the Congressio- step we can take to reduce gun health risks of gun violence nal Black Caucus violence is to follow the lead and the systemic racism that Health Braintrust. of these community organi- normalizes the deaths of young zations in community invest- Black men. Each life lost to gun violence ment. ere are many forms of successful is a tragedy, and, unfortunately, deaths community investment, but the purpose are not the only impact. For every shoot- is to provide opportunities that did not ing, countless people are traumatized, previously exist or were di cult for peo- left to grieve a loved one, angered by the ple to access. event and left increasingly anxious about Many people, primarily our young the safety of their communities. men, become involved in street vio- e mental health impacts of gun lence because they cannot see a path for violence are both cause and e ect of this themselves outside of that life. Workforce tragedy. Without addressing the genera- development, community partnerships tions of trauma some communities have and mentorships, engagement and ed- ucational opportunities all have monu- GETTY IMAGES experienced, we will not be able to pull ourselves out of this epidemic. Of course, mental impact on providing opportuni- e high rates of violence we have seen nesses, economy and country to thrive, Spring eld and Washington the chance there are also the over the past decades, and especially the we need to push our elected o cials to to advance racial equity, and we urge physical and nancial TREAT GUN VIOLENCE LIKE THE EMERGENCY IT IS. past year, are a direct result of structures put money where it is so sorely need- them to prioritize evidence-based com- costs we must address. and systems that are denying access to ed: in the communities where it’s been munity violence interventions that will People injured by gun violence often face ties, improving community safety and safety, opportunity—and justice—in Black diverted from for decades. President lead to greater peace, equity and oppor- challenging and expensive recoveries, reducing violence. As I often say, nothing and Brown communities. For our busi- Biden has given our leaders in Chicago, tunity for all. including surgeries and physical therapy. stops a bullet like an opportunity. Many live with disabilities for the rest of As Congress begins to consider ap- their lives. propriations for scal year 2022, I am But signi cant data collection and to help prevent future tragedies. For decades, the biggest threat to the strongly urging my colleagues to increase analysis gaps remain that prevent e ective Furthermore, the researchers found that lives and safety of children and teenagers funding to support the evidence-in- administration of the FOID system, curtail the FOID policy should require the sub- was automobile accidents. In response formed, community-based organizations oversight of state authorities and erode mission of ngerprints, a ve-year permit we mandated the use of seat belts and that are on the front lines of intervening the public’s con dence. (instead of 10) and dedicated resources car seats and created stricter safety to prevent gun violence. Second, secure federal funds to help. to improve information sharing, support guidelines for automobile manufactur- We have a long way to go in rebuild- Before COVID-19, state funds were administration and the removal of guns ing. Deaths by vehicle crashes declined ing trust and safety in our communities insu cient to adequately invest in the from individuals whose FOID cards are re- signi cantly and have remained relatively plagued by gun violence, but if we begin FOID system. With state funding now even voked. e state police readily agrees with low. to treat gun violence like the public more scarce, Illinois must take advantage these updates, which have been incorpo- Today, rearms are the leading cause of health emergency it is, we can fundamen- of federal resources available to support rated into the Fix the FOID proposal, now death for children and teenagers, with an tally change the future of these communi- rearms background checks. pending before the General Assembly. estimated 1,800 children and teens shot ties for the better. Since 2015, 48 of 50 states have applied If done right, modernizing the FOID for and received a combined $300 million system would have a profound impact in in federal funding to improve their back- reducing gun violence. ground check systems and the submission In Connecticut, implementation of a of prohibiting records through the Nation- rearms-permitting policy led to signif- al Criminal History Improvement Program icant reductions in gun violence rates, and the NICS Acts Record Improvement including a 40 percent drop in homicides Program. and a 15.4 percent decline in suicides. Only Illinois and New Mexico have not Notably, Connecticut invested more than received—or even applied for—funding $27.5 million in improving implemen- through these programs over that time. tation over time, mostly from federal Meanwhile, several states have received resources. signi cant support, including Arizona, On the other hand, after Missouri
BLOOMBERG which has leveraged nearly $12 million repealed its permitting law and back- in federal funds since 2016 to maintain a ground-check requirement altogether, 2019 workplace shooting in Aurora. State statewide task force focused on improving that state saw a 16.1 percent increase in police examined how data and communi- the state’s background check records and rearm suicides and a 25 percent increase cation gaps led to a signi cant number of closing data gaps. in rearm homicides. individuals maintaining possession of their Finally, refresh the FOID policy itself. Illinois policymakers have a clear rearms after their FOID cards had been A 2019 report by the Johns Hopkins choice. ey can make these sensible revoked. In the months and years that fol- Center for Gun Policy & Research, com- changes to help reduce gun violence or let lowed, state police have released new data missioned by the Joyce Foundation, iden- the tsunami of gun sales wash over and on the FOID system and proposed new ti ed several weaknesses and gaps in the drown the FOID system. e evidence information-sharing practices. FOID law and o ered recommendations makes the right choice obvious. GETTY IMAGES
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EARLY INTERVENTIONS Views from the front: The perils and the politics Work to stop murders BY DAVID MENDELL From City Hall to the city’s streets, violence reduction e orts are mul- before they happen tifaceted and often produce mixed results. Public-safety o cials and young man I know was helped me somehow. outreach workers acknowledge that gunned down recently I believed the idea of planting there is no one answer to the gun Awhile he was driving on trees could help the scores of fam- violence epidemic, which has grown the expressway. As of this writing, ilies in my South Side neighbor- worse—and tougher to tackle— there have been over 60 such hood the same way that it helped during the pandemic. Norman Kerr shootings in Chicago this year me years before. After all, trees are and Teny Gross, who both served alone, and this number is sure to enduring memorials that aren’t in key violence intervention roles, go up as the summer approach- washed away by rain, blown took questions on the topic recently. es and more people start to go out by wind or whisked away by Kerr is a former CeaseFire director outside again. Streets & San. who has moved to City Hall, and e fact that all too many young Tamar Manasseh e trees were great, and the Gross oversees a street outreach and people from the South and West is the founder and families really did love having a counseling agency. Following is an sides die unnatural deaths is no president of Moth- permanent memorial for their edited transcript. longer newsworthy. My friend’s ers & Men Against loved ones, but one day I realized murder barely warranted a Senseless Killings. that this act wasn’t going to do NORMAN KERR mention on the local newscasts. anything to stop the violence and Interim director of violence But there’s something else going on here. the killings. A 17-year-old came up to me at prevention, city of Chicago Expressway shootings are reaching epidemic one of these tree planting and pointed to a CRAIN’S: Your o ce is dedicated proportions. And we need to understand spot nearby. “ at’s where I want my tree,” he killings in Englewood. e expressway shootings pose a new and to coordinating anti-violence why in order to gure out how to get them told me plainly. At rst I laughed it o , but the Moreover, MASK’s mission is constantly unique challenge to all of us, and I’d be lying e orts. It was launched by May- under control. at’s how I approach every- more I thought about it, the more I realized evolving in order to continue to meet the if I said that I’ve gured out what to do about or Lightfoot in 2019, and then thing: from the need to truly understand it. that if I’m planting a tree, someone has died needs of the communities we serve. We cre- them. But I’m working on it. As always, the we saw a huge spike in violence ere’s no solution without rst understand- and I’m already too late. Trees, religion or ated the “Door No. 3 program,” which sent goal is to proactively prevent these murders and homicides in 2020. How do ing the problem. nostalgia weren’t going to stop the bullets young people who were the you answer to critics who point When I rst decided I’d tackle Chicago’s from ying. I needed to nd something that most likely to kill or be killed WHEN THE CORONAVIRUS HIT, WE REPURPOSED that out? gun violence problem, the rst activity I un- would stop the bullets from ying. We need- to trade school. eir options dertook was planting trees. My inspiration ed to be proactive instead of reactive. were no longer dead or jail, OLD SHIPPING CONTAINERS AND TURNED THEM KERR: I understand the frus- for this was the Jewish holiday Tu B’Shevat, And that’s when I came up with the idea and they had the opportunity which marks the new year for trees in of sitting on blocks where the murders were to learn a trade and become INTO A LEARNING CENTER. Israel. I grew up giving money every year to happening, and not leaving. By creating productive members of plant a tree to mark major life-cycle events. a regular presence in the neighborhood society. from happening at all, not trying to gure out I planted trees for births, bar and bat mitz- and building a sense of community where When the coronavirus hit, we repurposed how to deal with their aftermath. LAST CHANCE TO APPLY! vahs and graduations, but more often than none existed, I hoped to prevent murders old shipping containers and turned them into e Chicago Police Department would not, for deaths. I planted a tree when my before they happened. Over the years since a learning center where at-risk kids could get be well served by pursuing a dialogue with grandmother died. I planted a tree when we rst sat down at 75th and Stewart, the access to high-speed internet and the elec- MASK and with other similar organizations. my Uncle Marvin died. Even though there organization I created, Mothers & Men tronic devices they need to ensure that they With the police’s resources and our working was sorrow, the idea of planting some- Against Senseless Killings, or MASK, has can continue to learn online, even when they knowledge of the streets, together we can thing after someone special had passed on been successful at reducing the number of can’t physically go to their schools. confront gun violence head-on.
MISSING ELEMENTS City’s anti-violence plan needs more transparency, equity
ayor Lori Lightfoot’s Lee, a California native, was cy of its work and progress. Yet, the rst Nevertheless, Chicago funnels all of the plan to combat gun touted for reducing violence in and only meeting held last December street outreach money through Metropoli- Mviolence in Chicago Los Angeles by implementing a was closed to the public. Not only was tan Family Services, one of the city’s largest has been a mixed bag. On the comprehensive strategy to ad- the meeting closed to the public, but the social services agencies. MFS coordinates one hand, she’s talked about dress gang violence. Many in the city also did not invite prominent African violence prevention street-outreach the expansion of social services Black community told Lightfoot, American-led violence prevention organi- e orts. e problem with this is that MFS and massive investment in like they told previous mayors, zations to be part of the Violence Preven- is an agency whose board of directors is REGISTER NOW FOR CRAIN’S LEADERSHIP ACADEMY communities most affected by that only a fraction of violence tion Planning Committee. mostly white, and its CEO is not Black. At violence, which, of course, are in Chicago is gang-related. e To plan without inviting organizations the same time, 80 percent of the murder SPRING SESSION STARTS MAY 4, 2021 good things. On the other hand, Black community wanted the like Acclivus, the largest African Amer- victims in Chicago are African Americans. she’s made politically motivated Lance Williams mayor to hire a person with strong ican-led anti-violence agency in Chica- No non-Black agency should control all of key appointments, excluded the is a professor of community ties and the lived go; Mothers Against Senseless Killings, the dollars and coordinate street-outreach public and grassroots organi- urban community experience and understanding of or MASK, a team of moms who put on e orts, especially when there are highly zations from the anti-violence studies at the Jacob the unique landscape of Chicago events and o er a safe space for kids in the quali ed Black anti-violence agencies. planning process and supported H. Carruthers violence. It didn’t make sense to community; and Project HOOD, a group ere must be no more pass-through the inequitable distribution of Center for Inner hire Lee, whose strategies target that has been doing violence prevention violence prevention funding to non-Black funding to violence prevention City Studies at gangs to combat the escalating work for decades in one of America’s most organizations and agencies that siphon o groups. When it comes to ad- Northeastern homicides. Nevertheless, the may- notorious areas, is unfathomable. How can millions of dollars in administrative costs dressing violence in the city, the Illinois University or didn’t listen to the community you exclude groups like these and be taken to solve a problem unique to the Black mayor says all the right things but and the author and appointed Lee anyway. seriously? People in the community look at community. To address rising violence, the makes all the wrong moves. of “Culture and In less than one year, Chicago this and say GTFO. city will need to be transparent in carrying ere is no doubt that the Perceptions of aldermen became frustrated with Not only does the mayor’s e ort to com- out its plan and not exclude people and mayor has developed a solid plan Violence Related Lee’s “inability to respond to basic bat gun violence lack transparency and groups that it feels may push back on its This program is open to executive level and emerging leaders. to combat gun violence. However, Behaviors Among questions” at Chicago City Coun- inclusion, but it also supports the inequi- plan. her rst big mistake was to ap- Adolescents.” cil hearings. She was forced out table distribution of violence prevention e mayor will run into trouble if she Recommendations will be required for all application submissions. point Susan Lee as deputy mayor and is now back at Chicago CRED. funding. doesn’t help bring equity to the violence for public safety in 2019 to lead the e ort. One positive of the mayor’s proposed Currently, the city invests $13 million in prevention community. She previously was an executive at Chicago plan to combat gun violence was recon- street-outreach violence prevention. Keep us far, the mayor has done a great job GO TO CRAINSACADEMY.COM FOR FAQS, PRICING OR TO SUBMIT YOUR APPLICATION CRED, a violence prevention organization vening the Violence Prevention Planning in mind that the annual cost of homicides coming up with a solid plan to combat gun FOR QUESTIONS: EMAIL [email protected] founded by former U.S. Education Secre- Committee every six months to hold itself in Chicago is $2.5 billion annually—so the violence, but it must be more transparent tary Arne Duncan. accountable and increase transparen- city’s e orts are woefully underfunded. and inclusive.
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Views from the front: The perils and the politics How did the pandemic change has lost the deputy mayor, Su- BY DAVID MENDELL what I say is, we plan to see it your mission and how you’ve through. We are going to contin- san Lee, who was your champi- From City Hall to the city’s streets, gone about violence preven- ue with investments. We’re going on, the chief strategist for street violence reduction e orts are mul- tion? to continue engaging commu- outreach violence interruption. tifaceted and often produce mixed nity organizations and partners, How do you react to that? results. Public-safety o cials and It’s changed everything around because it’s an all-hands-on-deck outreach workers acknowledge that policing, about the way programs approach. It’s not something that GROSS: To fix this issue, it is there is no one answer to the gun operate. We’ve had so many orga- we can just give up and just quit going to take many things. It violence epidemic, which has grown Norman Kerr Teny Gross nizations that have closed during after one or two years and just say will take resources, it will take worse—and tougher to tackle— this time. We’ve had so many it’s not working. know-how on the streets and it during the pandemic. Norman Kerr tration. I’ve lived in Chicago people that have been infected We’ve seen in other cities will take working the politics in and Teny Gross, who both served most of my life. It’s always been themselves with COVID, wheth- where they’ve had a little suc- the right way. There are people in key violence intervention roles, synonymous with violence. is er it’s police, whether it’s sta at cess, then they let up. So we’re who are doing things for the took questions on the topic recently. is something we de nitely want di erent organizations. And even in this for the long term. This right reasons, and then there Kerr is a former CeaseFire director to change, and it’s the reason I though we had a lot of people go is not one or two years or three are people, politicians, and not who has moved to City Hall, and joined this o ce. inside because of COVID, we still years. It’s 10, 15, 20 years. If you just politicians, but others, who Gross oversees a street outreach and We started in 2019, and street had a lot of the young people in look at other cities that have had are not always in it for the right counseling agency. Following is an outreach workers were operat- the streets, who stayed out there, significant success, it took them reasons. Susan was in the middle edited transcript. ing—street outreach was in e ect and they were still involved at high 15 or 20 years of steady invest- of all of that. then—and we saw decreases in levels when it comes to violence. ment, steady programming and NORMAN KERR violence happening. And the So even though (for street not letting up. So the mayor has How do we deal with the politics Interim director of violence goal was to build on that for outreach workers) their peers in been consistent that this is what side? prevention, city of Chicago 2020. But we have to acknowl- other organizations were shutting the plan is. is is not just a Black issue. is edge the pandemic. is wasn’t down and working remotely, this is an American issue. Look at this CRAIN’S: Your o ce is dedicated e expressway shootings pose a new and just something that was solely was a group that couldn’t work TENY GROSS country’s history—America cre- to coordinating anti-violence unique challenge to all of us, and I’d be lying impacting Chicago. is was a na- remotely. We needed them on Executive director, Institute for ated the violence, not just Black e orts. It was launched by May- if I said that I’ve gured out what to do about tional situation, where just about the streets because the levels of Nonviolence Chicago, a street people. All Americans created or Lightfoot in 2019, and then them. But I’m working on it. As always, the every major city saw increases in violence were continuing. outreach and counseling agency this environment, and we need to we saw a huge spike in violence goal is to proactively prevent these murders violence, increases in shootings that operates on the South and put the best of our minds toward and homicides in 2020. How do and homicides and carjackings. I So what’s the future for your West sides this and make our best e ort to you answer to critics who point mean, these are things that are a o ce and anti-violence e orts x this. Everyone needs to work WHEN THE CORONAVIRUS HIT, WE REPURPOSED that out? result of the pandemic, and they here in Chicago? CRAIN’S: So you’re a couple of together and put the politics of OLD SHIPPING CONTAINERS AND TURNED THEM KERR: I understand the frus- were chilling all around. For those who are discouraged, years into this now, and the city Black and White aside. INTO A LEARNING CENTER. from happening at all, not trying to gure out how to deal with their aftermath. LAST CHANCE TO APPLY! e Chicago Police Department would be well served by pursuing a dialogue with MASK and with other similar organizations. With the police’s resources and our working knowledge of the streets, together we can confront gun violence head-on.
City’s anti-violence plan needs more transparency, equity
Nevertheless, Chicago funnels all of the street outreach money through Metropoli- tan Family Services, one of the city’s largest social services agencies. MFS coordinates violence prevention street-outreach e orts. e problem with this is that MFS is an agency whose board of directors is REGISTER NOW FOR CRAIN’S LEADERSHIP ACADEMY mostly white, and its CEO is not Black. At the same time, 80 percent of the murder SPRING SESSION STARTS MAY 4, 2021 victims in Chicago are African Americans. No non-Black agency should control all of the dollars and coordinate street-outreach e orts, especially when there are highly quali ed Black anti-violence agencies. ere must be no more pass-through violence prevention funding to non-Black organizations and agencies that siphon o millions of dollars in administrative costs to solve a problem unique to the Black community. To address rising violence, the city will need to be transparent in carrying out its plan and not exclude people and groups that it feels may push back on its This program is open to executive level and emerging leaders. plan. e mayor will run into trouble if she Recommendations will be required for all application submissions. doesn’t help bring equity to the violence prevention community. us far, the mayor has done a great job GO TO CRAINSACADEMY.COM FOR FAQS, PRICING OR TO SUBMIT YOUR APPLICATION coming up with a solid plan to combat gun FOR QUESTIONS: EMAIL [email protected] violence, but it must be more transparent and inclusive.
P015-P023_CCB_20210426.indd 23 4/23/21 3:14 PM 24 APRIL 26, 2021 • CRAIN’S CHICAGO BUSINESS
æ`ÛiÀÌÃ}-iVÌ CLASSIFIEDS To place your listing, contact Claudia Hippel at 312-659-0076 or email [email protected] .www.chicagobusiness.com/classi eds
CAREER OPPORTUNITIES CAREER OPPORTUNITIES FPGA ENGINEER PRINCIPAL ENGINEER (Citadel Securities Americas LLC – Chicago, QUANTA TECHNOLOGY LLC, Lombard, IL) Research, dsgn and implem ultra-low IL. Perform analysis of electr’l systems using latency fi eld-programmable gate array power eng’ring software. Provide eng’ring (FPGA) based custom fi n trading sys analysis & support for distributed energy in register transfer level (RTL) dsgns to resource interconnection studies. Reqs. provide hardware sol for fast networking, Masters in Elec Eng or related w/ 1 sem. high perform computing and real-time of coursework each in: Powerelectronics, acceleration. F/T. Reqs a Master’s degree (or Power Sys Analysis, Unbalanced Power Sys foreign equivalent) in CS, Computer Engin Analysis, Modeling & Simulationof Power or rel fi eld. Educ, training or exp must incl Sys Transients, Linear Sys Analysis, Control the following: FPGA systems research, dsgn Syss & Digital Signal Processing & 1 yr exp. and implem incl working with RTL dsgn, as Elec or Design Eng, must include 1 yr exp. simulation, hardware valid, testing and performing eng’ring calcs & equip’t size
verif module dsgn; RTL coding in Verilog, determination & 6 mos exp w/ short circuit LINDEN J. THOMAS System Verilog or VHDL; creating XILINX calc & and arc fl ash hazard analysis. Drug/ Earnings at Peoples Gas soared 113 percent to a record $187 million last year from $88 million in 2015. or ALTERA FPGA dsgn fl ows; network bckgrnd check reqd. 10% US travel. Apply and sys level protocols, packet based data here: https://quanta-technology.com/ processing and computer architecture; and, careers/career-opportunities working in Linux op sys. Resumes: Citadel Utilities continue push for guaranteed returns Securities Americas LLC, Attn: ER/LE, 131 S Dearborn St, 32nd Fl, Chicago, IL 60603. GAS from Page 3 formula rates, the annual rate-set- for green power to push mecha- JOB ID: 4843080. COMMERCIAL REALESTATE ting process that took away most of nisms that will enable them to gen- Patterson, analyst at Glenrock As- the ICC’s authority to push back on erate guaranteed returns and pro t OFF MARKET NEW CONSTRUCTION 6 duplex units, Condo Quality on sociates in New York. ComEd’s requests. But that hasn’t growth thanks to elevated invest- CAREER OPPORTUNITIES 50x150 lot 210k NOI ask $4.25mm Earnings at Nicor, which delivers stopped utilities—and particularly ments in infrastructure they can Text/Call JAMES 7733681977 for OM gas to most of Chicago’s suburbs, their union allies whose members argue is tied to carbon reduction. QUANTITATIVE RESEARCHER grew 68 percent to $229 million bene t from the unprecedented “Nicor Gas has calculated that (Citadel Americas LLC – Chicago, IL) Analyze and solve cmplx mkt problems last year from $136 million in 2015. levels of capital spending—from even relatively small amounts of through the use of tech, math and stat COMMERCIAL REALESTATE at’s an annual growth average of continuing to propose provisions (renewable natural gas) production modeling, and comp systems. F/T. Reqs a 10 percent. that would continue elements of can produce very signi cant levels Master’s degree (or foreign equiv) in Stat, VACANT LOT FOR SALE. Zoned commercial. 18740 square feet. Lot ComEd has watched its earnings the formula-rate era such as guar- of carbon reduction—if just 1 per- Econ, Fin, CS, Engin, Math, Phys or a rel grow to $638 million in 2020— anteed returns for utilities. cent of our current gas throughput quant fi eld. Educ, training or exp must size is 150x150. Prime location, a lot of tra c. incl: utilizing time-series or cross-sectional 8801 S KEDZIE AVE, EVERGREEN PARK, IL adding back the $200 million ne is replaced with RNG, this would analysis; solving cmplx data intensive Contact Rich Clark 7082184668 or for the company’s admissions of PROPOSED SYSTEM equate to approximately 400,000 problems utilizing adv math and stat Lori Cavallone 7737934233 $699,000 bribery in a federal probe of for- e comprehensive energy bill metric tons of CO2 emission re- modeling tech incl Robust Regression, Stat CENTURY 21 AFFILIATED mer House Speaker Michael Madi- put forward by the union coali- ductions,” a spokeswoman says in Machine Learning, Nat Lang Proc, or sim; gan—from $379 million in 2012, tion billing itself as Climate Jobs an email. e proposed “true-up” C++ or OOD programming; high-level the year it rst was allowed to set Illinois would replace ComEd’s of returns each year would make interpreted lang incl R, Matlab, Python LAW or sim; and, analyzing GB or TB sized lg its delivery rates annually via a formula rate with a system allow- rates “less volatile,” she says. datasets. Exp may be gained concurrently. QUESTIONS? We got ANSWERS! formula. ComEd’s pro ts grew 6.7 ing the utility to continue charging A Peoples Gas spokeswoman says Resumes: Citadel Americas LLC, Attn: ER/ percent on average annually over ratepayers extra if it failed to ob- replacing old natural gas mains, LE, 131 S Dearborn St, 32nd Fl, Chicago, IL HALE & MONICO those nine years. tain the returns it was “allowed” which is an important part of the 60603. JOB ID: 5394654. 1-800-JUSTICE is is the kind of steady earnings in the previous year’s rates. Before billions the utility has spent on in- growth most companies can only formula rates, one of the small - frastructure, is a matter of safety. HaleMonico.com dream of, but it comes in monopoly nancial risks utilities had to shoul- “While we continue this important CAREER OPPORTUNITIES Injury Attorneys businesses whose customer bas- der was ensuring the revenue they work, to be clear, a typical residential es essentially haven’t changed in were collecting fell to the bottom customer in Chicago paid 12 percent GRUBHUB HOLDINGS, INC. seeks those years. Peoples, in particular, line su ciently enough to achieve less in 2020 than in 2013 when the ANALYST, ANALYTICS in Chicago, IL to LEGAL SERVICES create & manage implementation of analytics serves a shrinking customer base their authorized return. at all gas rider legislation passed. Addi- tracking req’ts to measure feature &/or in only the city of Chicago. Its pro t ended after 2011. tionally, Peoples Gas has not raised overall product performance. Applicants DADS’ RIGHTS! growth has come from rate increas- Likewise, Nicor is pushing a bill base rates since 2015,” she says. who are interested in this position may apply es tied to historically high levels of to authorize elevated spending on She does not note that 2020 was https://www.jobpostingtoday.com/ an unusually warm heating season REF # 60579. capital spending, endorsed by the what it bills as its own carbon-re- Legislature in 2013. duction plan. at would permit and that each of the heating months en-Gov. Pat Quinn, who iron- Nicor (and Peoples as well, if it in 2013 was colder on average than Follow Our Victories ! ically built much of his public rep- chose) to charge rate- CAREER OPPORTUNITIES utation ghting utilities on their payers to build gas lines HUMANA INC. seeks rate hikes, signed the law, which connecting land lls “THAT’S ONE OF THE HIGHEST GROWTH SENIOR INFORMATICIST RESIDENTIAL REALESTATE allowed Peoples and Nicor to to the larger pipe net- RATES IN THE U.S. REGULATED UTILITY in Chicago, IL to collaborate & manage charge extra on gas bills to nance work and using the gas Physician E ciency & Physician Performance. BUILD IN BUCKTOWN! what has turned into billions in they emit for fuel. For Pre-employment drug screen & background BUILD YOUR DREAM! SECTOR.” check req’d. Applicants may apply at Customize your Covid Compound infrastructure work. For Peoples, the quali ed spending, https://www.jobpostingtoday.com/ On a 48x100 lot close to 606, 6 corners etc. that monthly surcharge now is well which is expansive, the Paul Patterson, analyst at Glenrock Associates, REF # 30016 Call/text JAMES for specs 7733681977 above $10 for the average Chicago bill also would guaran- commenting on earnings at Peoples Gas household. e utility collected tee Nicor’s returns—a $137 million just from the sur- bene t gas utilities don’t currently the same months in 2020. At least charge last year, a 67 percent in- enjoy, unlike their electricity coun- half of a heating bill is the cost of the OUR READERS ARE 125% MORE LIKELY TO crease from $82 million the year terparts. gas itself and the rest is what rate- INFLUENCE OFFICE SPACE DECISIONS before, according to lings with e House Public Utilities Com- payers pay Peoples to deliver the federal regulators. mittee approved both bills unani- fuel and maintain the system. Find your next State regulators have concluded mously. ey await oor action but A ComEd spokeswoman de- corporate tenant or leaser. they have no power to rein in the are likely to be part of the intense fends the utility’s spending under surcharge thanks to the 2013 law. negotiation over a broad bill that the 2011 law, citing improved reli- ey do perform an after-the-fact now begins in earnest with hopes ability performance over that time. study of the spending, in which of concluding by the scheduled As for the legislation the union coa- they can force the utility to rebate May 31 end of the spring session. lition is proposing, she says ComEd amounts found to be inappropri- Formula rates and infrastructure still is studying it. ate, but the Illinois Commerce surcharges are ways for utilities— “We look forward to continued Commission is years behind on particularly in areas like northern discussions with Climate Jobs Illi- those annual reviews. Illinois where population growth nois and other stakeholders . . . and As he seeks legislation to put Illi- is nil and economic growth is slug- expect that this and the many other Connect with Claudia Hippel at nois on a path to a 100 percent car- gish—to jump-start growth when energy proposals in Illinois will be [email protected] for more information. bon-free power industry, Gov. J.B. otherwise there would be little. considered together,” she says in an Pritzker has called for an end to ey now are seizing on the push email.
P024_CCB_20210426.indd 24 4/23/21 4:26 PM CRAIN’S CHICAGO BUSINESS • APRIL 26, 2021 25 Industrial developers paying top dollar to replace subdivisions with warehouses
BENSENVILLE from Page 3 the airport. Others just like the area’s teens about ve years ago. proximity to nearby interstates and Seefried is among those develop- “ is was the opportunity of a Chicago’s big pool of workers and ers, buying six residential parcels on lifetime,” Fiore says. consumers. Devon last year for its industrial de- e opportunity arose from an “ is is the bullseye of metropol- velopment, which lies in Elk Grove industrial real estate boom that itan Chicago,” says David Riefe, se- Village. In Wood Dale, about a mile has made land around O’Hare In- nior vice president of Atlanta-based south of Mohawk Terrace, Tran- ternational Airport an increasingly Seefried Properties, which recently swestern bought 30 of about 100 precious commodity. So precious completed two 80,000-square-foot homes in the Mohawk Manor sub- that a pair of developers just spent industrial buildings on Devon about division, tore them down and built more than $64 million buying up a mile west of Mohawk Terrace. a 301,000-square-foot warehouse in the homes of Mohawk Terrace, Boosting demand further is the their place. Nippon Express, a Jap-
at the southwest corner of Busse recent extension of Illinois Route anese logistics company, recently REALTY ML Road and Devon Avenue. e de- 390 to Busse in Bensenville, improv- moved into the building. A rendering of one of the two warehouses planned on the site of Mohawk Terrace. velopers, Itasca-based ML Realty ing truck access to and from the west Transwestern isn’t stopping and San Francisco-based Prologis, side of O’Hare. there. e developer is in the pro- her husband owed $256,000 on their which will total 605,000 square feet, plan to plow all 106 of them under “You can get in and out more cess of buying out more Mohawk mortgage, she says. and complete construction next and build two massive warehouses quickly,” says Nick Siegel, part- Manor homeowners to the south. Mohawk Terrace was a logical spring, according to a March an- in their place. ner at Bridge Industrial, a Chica- It signed a contract to pay in the target for an industrial develop- nouncement from ML. ML and Prologis tantalized Mo- go-based developer. “$400,000 range” for a house in er, surrounded on all sides by big e project “is strategically located hawk Terrace homeowners with the subdivision where Colleen Mc- industrial buildings. San Francis- in the center of the O’Hare submar- lofty prices that were hard to refuse, COMPLEX TASK Cormick lives with her boyfriend, co-based Digital Realty runs a huge ket and will o er excellent access to well above what the homes would Developers are responding by probably double what a residen- data center on the other side of all areas of Chicago via all major ex- have fetched in a regular sale—but pouncing on whatever land in the tial buyer would pay, she says. e Devon Avenue. pressways,” the announcement says. low enough for the development to area they can get their hands on. closing is scheduled for June 1. ML made its move in fall 2019, It’s also “only minutes from both car- be pro table. e developers paid Assembling parcels into a buildable McCormick isn’t sure how many sending letters to Mohawk Terrace go entrances at O’Hare.” an average of $615,000 per house, site is a routine part of the devel- homes Transwestern is buying, residents expressing its interest in Many Mohawk Terrace home- dropping more than $1 million on opment process, but taking over a and Fankhauser declines to dis- buying them out, says Fiore, who owners are happy with the prices six, according to Blockshopper and big subdivision is anything but. Ne- cuss the developer’s plans for Mo- served as a liaison between the de- they received for their homes, but DuPage County records. Publicly gotiating individual contracts with hawk Manor. veloper and his neighbors. others are a little jealous of neigh- available sales data shows only ve dozens of sellers is complicated “Some people feel like they’re be- But the subdivision also caught bors who pocketed more than they prior home sales in the subdivision and time-consuming, and not every ing pushed out,” McCormick says. the eye of Prologis, which quietly did. Some are scratching their heads exceeding $400,000. homeowner acts rationally. “Some are absolutely ready to go.” bought a few houses in the subdivi- at the $1.7 million Fiore received for “In the end, I think money talks in “It’s extremely challenging,” says Up the road, at Mohawk Terrace, sion while ML was still negotiating his house—$472,000 more than the every factor of the world, and I think Darcie Fankhauser, regional part- Katherine Anderson says she and with other residents, he says. It was a second-highest amount. it talked in this one,” says Fiore, 63, ner in the Chicago o ce of Hous- her husband, Arthur Eichorst, are shrewd move by Prologis, giving the ough Fiore worked closely whose father developed the subdivi- ton-based Transwestern Develop- “100 percent happy” to leave and company leverage over ML by dis- with the developers to orchestrate sion about six decades ago. ment. “Imagine having upwards start a new life in Las Vegas. ML paid rupting its plans. the entire deal, he says he and the e money says clearly that the lo- of 30-plus sellers, all looking for $435,500 for their one-story ranch ML “was a little upset by that,” Fio- developers conducted themselves cal market for industrial real estate is di erent things, di erent timing, on Indian Hill Drive, where she re says, but the two rms eventually properly when it came to the sale heating up, especially on the DuPage di erent prices.” raised eight of her 11 children. ey agreed to form a joint venture to de- of his property. He says didn’t get County side of O’Hare, where prop- But land has become so scarce, received enough money in the sale velop the site. rewarded with a higher price for erty taxes are lower. Companies in and acquisition costs have risen so to buy a Las Vegas condominium ML and Prologis representatives his role but negotiated a contract e-commerce, distribution and logis- much, that more developers are will- without a mortgage. decline to comment. just like his neighbors did. tics industries have continued to ex- ing to try. Fankhauser estimates that If they sold their Bensenville house ML is already courting tenants “ is was something that I ad- pand during the pandemic and are land in DuPage County near O’Hare to a residential buyer, “we would have for the two warehouses planned for vanced and felt I did for the commu- gobbling up warehouse space there. sells in the mid-$20 per-square-foot been hard-pressed to get what we Mohawk Terrace. It expects to break nity,” Fiore says. “In the end, every- Some businesses want to be close to range today, up from the mid to high owed on it,” Anderson says. She and ground this summer on the project, one negotiated their own contract.” Mellody Hobson is making strategic shifts and management shake-ups at Ariel HOBSON from Page 1 declined to be interviewed. To step up Ariel’s game, Hobson four directors, including Vice camouage investing strategy. In Ariel’s fortunes have uctuated has been scouring résumés, search- Chairman Charles Bobrinskoy, a bold type, a Securities & Exchange funds, which have been squeezing over the past four decades. Com- ing for applicants with better ped- school chum of Rogers’, who are Commission ling warns this may fee income collected by traditional pared with $21.4 billion in assets un- igrees. A quarter of Ariel’s 105 em- exiting the board, leaving only increase risks for investors. e rms money managers like Ariel. Ariel der management in 2004, the gure ployees have come aboard since two insiders: Rogers and Hob- say they won’t comment before also recently disclosed novel plans at the end of March was $16.2 bil- the beginning of 2020, including son. Ariel said Vitale will serve regulatory approval. to make direct investments in other lion. Still, that was a far sight better Chief Talent O cer Marlo Gaal as a liaison to Ariel Alternatives. With Schwab, Ariel is deepening companies under a program de- than the year-earlier $10.2 billion, as from Groupon. Mary Cecola was Another departing director, Leslie what’s turned into a strange-bed- signed to create minority-owned Ariel’s trademark “value” investing hired as chief technology o cer in Brun, was named its CEO. fellows political relationship. As rms and expand others. And a in solid but slower-growth compa- 2019 from lender Antares Capital. Hobson has been operating Rogers and Hobson oppose Re- new o ce in San Francisco, its nies rebounds during the pandemic Some top executives hired or ad- largely from California, where she publican e orts to restrict voting third, aims to corral tech and other and stock market recovery. vanced after Hobson became co- lives with her husband, billionaire access, Schwab founder Charles West Coast wealth. Hobson has broader ideas. Sit- CEO haven’t lasted. Among them lmmaker George Lucas, a cir- Schwab has been a hefty contribu- Hobson’s expanding inuence ting on the JPMorgan Chase board are Adam Hodge, senior vice pres- cumstance that Rogers maintains tor to Donald Trump and Republi- marks a turning point for Ariel, a gives her a “front-row seat” to ident for external a airs, and Roopa won’t jeopardize Ariel’s Chicago can causes. leading Black-owned rm in Chica- banker Jamie Dimon’s tutelage, Weber, who had been promoted to base. “She’s fully engaged in the After the Jan. 6 Capitol riot, go. Founded by Rogers in 1983, it’s Rogers says. Chase has committed chief marketing o cer. Paul Lus- fabric of Chicago,” he says, citing Schwab the company was roast- also one of the city’s few signi cant up to $200 million to co-invest in sow, arriving from Sterling Partners her vice chair role at economic ed for donating to members of mutual fund companies. projects under Project Black, part as chief operating o cer, stayed development agency World Busi- Congress who objected to the re- “ ey’ve tossed around the term of Ariel’s minority- rm venture Ari- less than a year. Maureen Longoria, ness Chicago. sults of the presidential election. Ariel 2.0,” Morningstar analyst el Alternatives. chief nancial o cer since 2010, is Schwab at rst halted donations Adam Sabban says of the thrust. More than ve years ago, according on her way out. ODD COUPLE by its political action committee Hobson, 52, has worked nowhere to a former Ariel employee, Hobson “ e ramp-up is hard, and to be On the ETF front, Ariel is acting through 2021 and later closed it al- else since interning at Ariel as a asked a colleague to look into ex- able to ramp up and execute at the after investor costs have shrunk by together, contending “It is unfair to college student. Two years ago, she change-traded funds, which o er same time is virtually impossible,” half over the last 20 years, as more knowingly blur the lines between bought 14 percent of Rogers’ stake, investors trading and tax advantag- Hobson told Crain’s as Lussow de- money ows to funds like ETFs “that the actions of a publicly held cor- trading places with him as Ariel’s es. Nothing came of it. But now that parted, in a comment that stung don’t have embedded advice, mar- poration and those of individuals top shareholder, with just under 40 Hobson is co-CEO—and ETF vol- some Ariel employees. Co-CEO keting and distribution charges,” who work or have worked for the percent of the shares. ume has sextupled over the last de- Rogers says, “When a new lead- says Morningstar’s Ben Johnson. company. ough both are co-CEOs, Rogers, cade, reaching a third of the $19 tril- er comes in, it’s an opportunity to Ariel will pick the stocks for Rogers points to a Black Investor 63, and Hobson have distinct roles: lion in mutual funds—Ariel is getting build out a new team. It’s natural.” Schwab’s ETF, bene ting from a Survey the rms have sponsored He picks stocks, supervising re- o the dime. is month the compa- Lussow hasn’t been replaced. rule change that waives a require- for more than 20 years, noting, “All search and trading. She runs the ny and broker Charles Schwab led Instead, Ariel is relying on David ment to disclose portfolio positions I can say is, they share our love and company. Her outside pro le is for approval to establish an ETF tar- Vitale, a former banker and long- daily, as is the case with most ETFs. interest in nancial literacy. It’s had rising, too. Hobson appears on TV geting environmentally and socially time director, to advise the op- Instead, Ariel will report quarter- an impact—us shining a light on and chairs the Starbucks board. She responsible investments. erating committee. He’s among ly, on a 60-day delay, allowing it to that problem.”
P025_CCB_20210426.indd 25 4/23/21 4:37 PM 26 APRIL 26, 2021 • CRAIN’S CHICAGO BUSINESS Illinois’ botched pot license rollout hurts social-equity candidates, cultivators Here’s a rare chance to live MARIJUANA from Page 3 cannabis market to themselves. At $669 million in sales, the original law, championed by Gov. recreational market was near- J.B. Pritzker, who is up for re-elec- ly twice the size of the medi- in a lakefront house in the city tion next year. cal-marijuana business last year. “The rollout was not success- But the lack of new retail A South Shore house for sale, built in the 1920s and likely a teardown, ful. Until we fix it and pass a law shops also has meant lower to get licenses out to Black and sales growth than anticipated for is one of only a handful of private homes on Chicago’s 26 miles of shoreline Brown people and women, it’s cultivators, many of which are A South Shore house, one of only going to cost us,” says state Rep. owned by companies that also BY DENNIS RODKIN LaShawn Ford, a Democrat from operate dispensaries that supply a handful on the shores of Lake the West Side. “By not imple- marijuana products to retailers. Michigan, is on the market for the menting the cannabis law as in- Ford is among the members of rst time since the 1970s. tended, communities that have the Illinois Legislative Black Cau- Priced at $650,000 and in poor been hardest hit by the war on cus who are trying to get things shape, the house on South Shore drugs and are supposed to see back on track. They’ve proposed Drive is one of three in a row the benefits of creating jobs— changes to the law aimed at fix- whose backyards dip directly into that’s been delayed.” ing a licensing process that has the Lake. (In the photos, it’s the Pritzker’s office did not re- failed to deliver on promises to right-most house.) spond to a request for comment. diversify ownership of the can- By Crain’s count, there are only The licensing process in Illi- nabis industry. seven privately owned houses on nois is being closely watched by Chicago’s approximately 26 miles other states that have voted to HIGH COSTS of lakefront that have their own legalize recreational sales since The licenses are extremely shoreline, including those three. Illinois passed its law two years valuable, especially in tightly “It’s pretty unusual to be able ago. regulated markets that limit the to walk right out the back door to “Illinois was seen as the gold number of stores. Illinois has PLETZ JOHN the lake,” says Yolanda Zapiain, a standard for the social-equity capped retail licenses at 500. It State Rep. LaShawn Ford wants to x a licensing process that has failed to deliver on promises to diversify ownership of the cannabis industry. ReMax 10 agent representing the piece in legalization policy, as can cost $500,000 to $1 million to home for an elderly client who has the state who did it right,” says get a store up and running; suc- A second lottery would distribute Those licenses are being award- says Kianna Hughes, who owns owned it since sometime in the Tim White, a lobbyist at River cessful dispensaries can do more 110 licenses to social-equity ap- ed through a tiebreaker lottery a cannabis-training company 1970s. e beach is part of a shal- Crossing Strategy Group in New than $1 million a month in sales plicants who achieved at least 85 that’s limited to the highest-scor- called Elevated Education and low cove just south of the wooded Jersey, where regulators are and sell for $20 million. percent of the points allowed. ing applicants. is part of two applicant groups southern part of the South Shore starting to craft licensing rules. Under a bill led by Ford on A second lottery would coun- If the legislation passes, it that received perfect scores. “We Cultural Center’s grounds. “It looks like they’ve run into April 20, the state would hold a teract a little-noticed provision would more than double the thought we would have had (a li- Zapiain says her research un- some delays.” lottery among applicants who that gave extra points to veter- number of dispensaries. But it cense) by now. But the beat goes covered no legal obstacle to de- Those delays mean that med- achieved perfect scores to dole ans, which left many social-eq- could take six months to a year on. If a bill is what we need to get molishing the house and building ical-marijuana license holders out the 75 new licenses that were uity applicants out of the run- for the winners to get stores open. this going, let’s do what we need new on the site, which is 34 feet continue to have the recreational supposed to be awarded last year. ning for the initial 75 licenses. “We’re almost a year overdue,” to do.”
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P026_CCB_20210426.indd 26 4/23/21 4:25 PM CRAIN’S CHICAGO BUSINESS • APRIL 26, 2021 27 How Illinois is trying to reach out to those resistant to getting COVID vaccines
VACCINATIONS from Page 1 Public Health Director Dr. Ngo- zi Ezike. “We’re switching to our ground game as we work with houses of worship, the chambers of commerce, the rotary clubs, we have rural missions. We are taking the vaccine to places in- stead of being at a site and wait- ing for people to just show up.” New strategies include shifting from mass vaccination sites to smaller clinics with longer hours of operation, setting up employ- er-sponsored events, enlisting more primary care practices and developing social media campaigns. As demand starts to plateau here, Chicago and Cook County o cials are piloting walk-in ac- cess at mass vaccination sites. “Currently 50 percent of eligi- ble individuals in Cook County have received at least one dose. is is good, but there is a lot of work left to do,” says Iliana Mora, chief operating o cer of ambulatory services at Cook County Health, which will allow walk-ins at its Tinley Park and Matteson sites.
DOWNSIZING In DuPage County, where vac-
cine appointments aren’t lling BOEHM R. JOHN up as quickly as before, the health Karen Ayala, executive director of the DuPage County Health Department, plans to send doses straight to people’s workplaces to get them vaccinated. department is shifting away from mass vaccination sites that ad- oculated and gure out how best Ezike says. “It’s going to be slower minister about 2,000 doses a day to educate them about vaccines. to nish this out, but it’s de nitely to smaller clinics with more con- Illinois in March launched a $10 important so that we don’t leave NO NEW FIRST DOSES venient hours, says Karen Ayala, million television, billboard and anybody behind.” ORDERED IN MORE THAN HALF executive director of the DuPage social media campaign aimed OF ILLINOIS’ COUNTIES County Health Department. at building vaccine con dence ‘YOU TRUST THE PEOPLE YOU KNOW’ To reach people who haven’t been among those who are uncertain. Particularly hard to reach are A slowdown in lining up for shots, the health e most-viewed video from people who don’t feel their per- vaccinations has led department aims to send doses the campaign on YouTube is sonal or professional lives have straight to workplaces, Ayala says. a 15-second clip featuring Dr. been dramatically impacted by more than half of Even if employers aren’t man- Robert Murphy of Northwestern the pandemic. Ayala describes Illinois’ counties— dating that workers get vaccinat- Memorial Hospital. “It’s very im- their mindset as “Why would I pictured here in ed, Ayala hopes the convenience portant that everybody that can go out of my way to get a vaccine of workplace vaccination sites will take the vaccine take the vac- now?” Combating hesitancy is red—to indicate they encourage more people to get a cine,” he says, straight to cam- about “not only addressing the won’t order any new shot. era. “Polio, smallpox, measles, potential concerns that people first doses the week Meanwhile, Lake County plans mumps, rubella—it’s incredible have, but also promoting why to use social media to target 18– the number of diseases we’ve it’s important for people to get of April 26. to 29-year-old residents—a group been able to prevent because a vaccination,” she says, not- that historically has passed on u of vaccines.” ing that DuPage plans to oer Red = No new orders shots and could be reluctant to Another features 68-year-old educational webinars with local get a COVID-19 vaccine, either Bonnie Blue, one of the rst vac- health systems to better address because they have some immu- cine trial participants in the state, misinformation. nity from a previous infection or who discusses the dangers of Campaigns that come from lo- they think they’re not at risk for a catching COVID as someone with cal community leaders and phy- severe case, says Mark P ster, ex- asthma. “Doing this was some- sicians tend to be more eective, ecutive director of the Lake Coun- thing that, it needed to happen, says Dr. Saralyn Mark, a women’s rst doses at a time when vacci- In Pike County, where 24 per- ty Health Department. especially being an African Amer- health specialist who has helped nation rates are well below the cent of the population of 15,611 e challenge is crafting an ef- ican older person,” she says. craft educational campaigns at herd immunity threshold. Many have been fully vaccinated, inoc- fective sales pitch. Ezike says the state plans to the federal Department of Health of the areas, including Pike and ulations peaked on Feb. 2, with “Blanketing people with ‘Go get target speci c groups more pre- & Human Services. “You trust the Wayne counties, have fully vac- 402 doses administered. Now the your shot’ or using fear does not cisely. For example, telling 16– to people that you know, especially cinated less than 30 percent of county is averaging just 28 inocu- work,” P ster says. “It used to be 18-year-olds that a vaccination in some of these smaller commu- their residents. lations per day, according to the that campaigns would say, ‘Go get would enable them to celebrate nities where there might be con- With 23 percent of the Wayne state’s public health department. your vaccination for your grand- prom and graduation safely might cern about trusting the govern- County population fully vacci- Pike was allotted 300 doses ma because you don’t want your convince more of them to get ment,” Mark says. nated, county health department but ordered only 100 the week of grandma to die.’ We now know shots. For the 21 and older crowd, Meanwhile, demand is drying administrator Nicole Schoenborn April 19, says Sharon Bargmann, that may work for a few, but it messaging could point out that up downstate, and local health o - says she’s surprised that so many Pike County Health Department’s turns o a lot of people. We really widespread vaccinations would cials face the headwinds of COVID people have gotten a shot, given director of nursing. e state re- need to have a better understand- lead to easing of capacity limits at fatigue, misinformation and di - the community’s hesitancy. e ports that Pike has been putting in ing with COVID-19 . . . why are bars. culty getting the word out. More health department is working to reduced orders for several weeks. people not getting vaccinated.” “We’re educating and teaching than half of all local health depart- combat misinformation, includ- “We are just having trouble nd- e state is working to identify and hand-holding, making sure ments in Illinois recently told the ing the idea that vaccines contain ing people to ll the slots,” Barg- groups that are reluctant to get in- all the questions are answered,” state they don’t need additional tracker chips, Schoenborn says. mann says.
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