2019 General Municipal Election Recap

By Mary Kay Minaghan, MKM Services

The February 26 election may be over but ballot counting continues. Mail-in ballots postmarked by election day can be counted until March 12, one week before the Board of Elections must certify the election results.

While there were more than twice the number of mail ballots requested this year, turn out on election day was lack luster. The staggering number of candidates running for Mayor contributed to the low voter turnout. Not since 1901 had Chicago voters been presented with so many choices for Mayor — 14 in total.

The April 2 election will feature run-offs in the races for Mayor, Treasurer and eight, or possibly nine, Aldermen.

In the 6th Ward, incumbent Alderman Roderick Sawyer is hanging on by just four votes. Mail ballots are still being counted and may force Alderman Sawyer into a run-off yet.  Run-offs will also take place in four wards where the incumbent opted not to seek re-election.  

Lori Lightfoot placed first in the February 26 Mayoral election with Cook County Board President Toni Preckwinkle 8,280 votes behind her. William Daley, viewed by many to be the candidate of business, was 7,051 votes behind President Preckwinkle. Daley was the most well financed candidate, raising about $3 million more than President Preckwinkle did. The fourth place finisher, Willie Wilson, was the only other candidate to get into double digits with 10.61% of the vote.  In fact, he won more African American wards than President Preckwinkle did.

The top two candidates are already busy trying to secure Wilson’s support, who is expected to decide in a week or so. Whoever receives his endorsement will enjoy a big boost to their campaign. Suzanna Mendoza secured a significant majority of the Latino vote, despite the fact that another Hispanic, Gery Chico was in the race. On election night, President Preckwinkle’s speech signaled that this mayoral race will not be for the faint of heart. It is too early to predict who may win this contest, but one thing is for certain, on April 2 the first African American female will become Chicago’s next Mayor.

Less watched was the race for Treasurer.  This was an open seat due to the retirement of Kurt Summers.  Finishing in first place was State Representative Melissa Conyears-Ervin who received 44.3% of the vote. Alderman Ameya Pawar (47th Ward) retired from the City Council to run for this seat and placed second with 41.57%.

Representative Conyears-Ervin, with an MBA in Finance, is focused on protecting the City’s $7 billion in assets, as well as the four pension funds.  Alderman Pawar has advocated turning the City’s $7 billion in assets into a public bank of sorts to bank hard to bank commodities such as marijuana and to provide low interest loans for homes, cars and other items to low-income residents. Alderman Pawar’s plan takes the City in a very different and perhaps ill-advised direction considering the City’s current fiscal condition.

RUN-OFF RACES
SUMMARY ELECTION NIGHT RESULTS

MAYOR (OPEN SEAT)
Name % of Vote Won/Lost/Run-Off
Jerry Joyce 7% Lost
Paul Vallas 5% Lost
Willie Wilson 11% Lost
Toni Preckwinkle 16% Run-Off
William M. Daley 15% Lost
Garry McCarthy 3% Lost
Gery Chico 6% Lost
Susana Mendoza 9% Lost
Amara Enyia 8% Lost
LaShawn Ford 1% Lost
Neal Sales-Griffen 0.3% Lost
Lori Lightfoot 18% Run-Off
Robert “Bob” Fioretti 0.8% Lost
John Kenneth Kozlar 0.4% Lost
CITY TREASURER (OPEN SEAT)
Name % of Vote Won/Lost/Run-Off
Melissa Conyears-Ervin 45% Run-off
Ameya Pawar 42% Run-off
Peter Gariepy 14% Lost

ALDERMANIC RACES

5th WARD
Name % of Vote Won/Lost/Run-Off
Leslie A. Hairston 49% Run-Off
William Calloway 27% Run-Off
Gabriel Piemonte 24% Lost
15th WARD
Name % of Vote Won/Lost/Run-Off
Joseph G. Williams 9% Lost
Rafael “Rafa” Yanez 22% Run-off
Raymond A. Lopez 49% Run-off
Berto Aguayo 16% Lost
Otis Davis, Jr. 4% Lost
16th WARD
Name % of Vote Won/Lost/Run-Off
Stephanie D. Coleman 44% Run-off
Latasha M. Sanders 9% Lost
Kenny C. Doss, II 6% Lost
Toni L. Foulkes 32% Run-off
Jeffrey L. Lewis 2% Lost
Eddie Johnson, III 7% Lost
20th WARD
Name % of Vote Won/Lost/Run-Off
Jeanette B. Taylor 29% Lost
Nicole J. Johnson 23% Run-off
Maya Hodari 11% Run-off
Jennifer O. Maddox 5% Lost
Andre Smith 8% Lost
Dernard D. Newell 1% Lost
Quandra V. Speights 2% Lost
Kevin M. Bailey 16% Run-off
Anthony Driver, Jr. 5% Lost
25th WARD
Name % of Vote Won/Lost/Run-Off
Hilario Dominguez 21% Lost
Alexander “Alex” Acevedo 22% Run-off
Troy Antonio Hernandez 9% Lost
Byron Sigcho-Lopez 29% Run-Off
Aida Flores 19% Lost
30th WARD
Name % of Vote Won/Lost/Run-Off
Jessica W. Gutierrez 47% Run-Off
Ariel E. Reboyras 48% Run-Off
Edgar “Edek” Esparza 5% Lost
39th WARD
Name % of Vote Won/Lost/Run-Off
Robert Murphy 29% Run-off
Samantha “Sam” Nugent 34% Run-off
Casey Smagala 27% Lost
Joe Duplechin 10% Lost
40th WARD
Name % of Vote Won/Lost/Run-Off
Ugo Okere 15% Lost
Dianne Daleiden 17% Lost
Andre Vasquez 19% Run-Off
Patrick J. O’Connor 34% Run-Off
Maggie O’Keefe 15% Lost
43rd WARD
Name % of Vote Won/Lost/Run-Off
Derek Lindblom 28% Run-Off
Michele Smith 38% Run-Off
Leslie Fox 13% Lost
Jacob Ringer 13% Lost
Steven McClellan 2% Lost
Rebecca Janowitz 5% Lost
46th WARD
Name % of Vote Won/Lost/Run-Off
Marianne Lalonde 18% Run-Off
Erika Wozniak Francis 17% Lost
Justin Kreindler 4% Lost
James Cappleman 43% Run-Off
Angela Clay 16% Lost
Jon-Robert McDowell 2% Lost
47th WARD
Name % of Vote Won/Lost/Run-Off
Eileen Dordek 18% Lost
Angela “Angie” Maloney 5% Lost
Heather Way Kitzes 5% Lost
Michael A. Negron 21% Run-off
Matt Martin 39% Run-Off
Gus Katsafaros 2% Lost
Thomas M. Schwartzers 2% Lost
Kimball Ladien 1% Lost
Jeff Jenkins 8% Lost

 

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Governor Pritzker Delivers Budget Address

By Stephen S. Morrill, Principal of Morrill & Fiedler LLC (M&F), with contributions by Curt Fiedler

On Wednesday, February 20, Governor Pritzker delivered his inaugural budget address. According to the Office of Management and Budget (OMB), Governor Pritzker’s Fiscal Year 2020 (FY20) budget totals $77 Billion in spending including state and federal funds – of that, the FY20 budget estimates receiving $38.9 billion in general state taxes and spending $38.75 billion. According to the OMB’s budget outline, the FY20 budget spends $1.49 billion more than the FY19 budget – an increase of 4%.  The Governor outlined his FY20 spending priorities, including:
  • $100 million increase in early childhood block grant
  • $375 million for K-12 education
  • $2 million to fund AP testing fees for high school students
  • $52.2 million increase for public universities and $13.9 million for community colleges
  • $30 million increase for Child Care Assistance Program
  • $250 million for homelessness prevention
  • $65 million for support services for seniors
  • $2 million for community-based violence prevention programs
  • $46.2 million to maintain Joliet and Elgin treatment centers
To pay for the increased state spending, Pritzker outlined how he plans to increase state revenues by $1.1 billion, including:
  • Sports betting ($212 million)
  • Recreational marijuana ($170 million)
  • Statewide plastic-bag tax ($20 million)
  • State vaping tax ($10 million)
  • Cigarette tax hike from $1.98 to $2.30 ($55 million)
  • New tax on medical care organization (MCO) assessment ($390 million)
  • Closing corporate tax loopholes ($94 million)
  • Phasing out private-school scholarship credit ($6 million)
  • New progressive tax rates for video gaming ($89 million)
  • Placing a cap on retailers discount ($75 million)
According to OMB’s budget summary, without the additional revenue identified above, the alternative would be to reduce state operational spending by 4% in order to have a balanced state budget.
Governor Pritzker also indicated that he will partially address the State’s pension funding issue in the FY20 budget advocating the General Assembly pass legislation to reduce pension costs, including: (a) issuing $2 billion in pension obligation bonds; (b) extending the “pension ramp” by seven years (from 2045 to 2052); and (c) selling state assets and use one-time and ongoing revenues for pension liabilities. Governor Pritzker stated in his speech that the long-term solution to the State’s funding issues is to restructure its income tax by approving a new graduated income tax, and dedicate a significant portion of that new revenue to provide additional funding for pensions. Both Democrat legislative leaders have announced support for the passage of a constitutional amendment during the 2019 spring session to have citizens vote on whether to change the Illinois Constitution in favor of a graduated income tax structure.
The full FY20 budget was filed this week in the House by Majority Leader Greg Harris – filed as 78 separate appropriations bills (HB 3717 through HB 3795; including bills for the expected capital infrastructure program). The filing of separate budget bills for each agency is a customary practice for legislative budget hearings; however, it is more likely the FY20 budget will be condensed into three to five total budget bills (appropriation of funds and implementation bills).
Not included in Governor Pritzker’s address was any indication of what revenues will be identified and used to pay for the envisioned $36 billion capital construction program.  On Thursday, February 21, the Senate Transportation Committee held a subject matter hearing to take testimony on the State’s current infrastructure needs. Within that testimony, it was determined that the State currently has $39 billion for “horizontal” infrastructure needs (roads, bridges and transit – not including airports, locks, and dams) and $23.9 billion in “vertical’ infrastructure needs for maintenance and repairs of state agencies buildings and fleets – totaling a minimum of $53 billion in identified capital infrastructure projects. It is rumored that the Governor is currently looking at the following funding options: (a) increasing the motor fuel tax; (b) increasing license and user fees; (c) creating a new “mileage” tax; (d) imposing user tax on electric vehicles; (e) broadening the state sales tax to apply to certain services – while also lowering the rate; or (f) a combination thereof.
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Save Money and Energy with the Peoples Gas Commercial and Industrial Program

The Peoples Gas Energy Efficiency Program can help your building save money and energy. The program’s energy advisors will meet with you to discuss natural gas savings measures for your building and perform a free energy assessment. In addition, you will be provided with a customized recommendation report to help identify additional energy-saving improvements that qualify for program rebates and incentives.

The quickest payback incentives available in cold weather include steam trap testing and replacement, insulation and boiler tune-ups for buildings with gas-fired heat. Steam trap projects often have a payback of less than one heating season due to the savings in natural gas, water and chemical treatment. Combined with program rebates, the payback can be as low as one month. These rebates also help insulation and boiler tune-up projects pay back in less than a year.

For steam trap testing, pre-approval is required for all projects. Before applying for steam trap testing rebates, contact the program to verify eligibility. The contractor you decide to use needs to be pre-approved by the program before work can begin. Steam traps can be tested every 36 months, so if you know that you’ve had steam trap testing done in the past, they may be eligible to be tested again. Get steam traps tested now to ensure you’re running at peak efficiency for the rest of the winter months.

Rebates are available for steam trap testing completed before March 31.

Customers can get prescriptive rebates when they install qualifying steam traps, pipe, valve and fitting insulation, boiler reset controls, demand-controlled ventilation, commercial kitchen equipment and other natural-gas-saving measures. Only new products that meet the energy efficiency specifications listed on the prescriptive application qualify. Complete terms and conditions can be found on the prescriptive application form.

Custom incentives available

If you’re interested in energy efficiency upgrades not covered by the prescriptive rebate offering, you can apply for custom incentives. Energy advisors and engineers will work with you or a contractor to calculate potential energy savings for proposed projects. Financial incentives will be offered for individual projects based on projected energy savings. Customers must receive pre-approval before equipment is purchased and projects begin.

The Peoples Gas Energy Efficiency Program can also help you optimize your systems to maximize your energy savings. The Study program is a new initiative designed to help customers identify and implement no- and low-cost measures to increase system performance.

Customers that use at least 500,000 therms annually for steam plants and/or process heating qualify. This offer is available to customers with buildings 75,000 square feet or larger seeking to optimize central heating plants and/or air handling systems equipped with building automation systems (direct digital controls systems preferred).

To learn more and start saving today, please reach out to jkimsey@franklinenergy.com or vperkins@franklinenergy.com, or visit peoplesgasrebates.com.

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Two Years In With OSHA’s Rope Descent Systems Rule Change — What We’ve Learned

By Terry McDonald, S.E., P.E, Klein & Hoffman

Across Chicagoland it’s a common sight to see window washers perched on the sides of the city’s buildings, sometime hundreds of feet above the street, at work cleaning the windows and glass façades of the city’s skyline. For the past 18 months, building owners and managers first learned about and then implemented the changes in Occupational Safety and Health Administration (OSHA) Final Ruling for Façade Access Equipment for General Industry — as it related to window cleaning.  What issues have surfaced as the rules were implemented?

As BOMA members learned, the ruling contained numerous regulatory updates but two sections impacted nearly every building in the Chicagoland area.  The first was the requirement  for owners to provide compliant anchorages to allow for rope descent systems (RDS), also known as bosun’s chairs, which is the most common technique for window cleaners (OSHA 1910.27(b)). This owner requirement is not stipulated for anchors used for construction purposes.

The second update was defining when fall protection is necessary along edges of low-slope roofs (OSHA 1910.28(b)(13)).

In brief, the key rule changes are:

  • Requirement of anchorage and certification of anchorage.
  • Establishment of zones based on a worker’s proximity to a roof edge and the stipulated safety measures of that zone.

What are some of the issues that building owners and property managers have encountered since implementation of the rule began?

  1. Qualified Consultants.  While difficult to find, it is recommended that owners and property managers identify qualified consultants who understand the various nuances of OSHA and can provide practical solutions.  The consultant will need to understand the design load requirements and the behavior of the existing building structure to develop the proper anchorage design.  The design should include anchors that provide adequate coverage for both rope descent and fall protection, while maintaining efficiency for the end user.
  2. Qualified Installers. Qualified installers are a must and those installers need to be prepared to deal with a range of issues.  Sometimes the rooftop conditions are not as expected.  In addition, older buildings may not have a complete set of the original structural drawings.  Once the roof is opened to install the anchor points, thick insulation or topping slab may be discovered.  To avoid surprises, some exploratory work may be needed to determine what is required to ensure a proper installation and avoid costly change orders.
  3. Inspection/Testing. For some building owners and property managers, the frequency of inspection and certification of the anchors is confusing.  A qualified consultant must certify each anchorage at least every ten years, usually by a physical load test of 5,000 pounds.  Additionally,  OSHA states a qualified person must visually inspect each anchorage annually.  Proof of certification in writing is to be submitted to the vendor prior to usage. If your building does not have compliant anchorages — or no anchors at all — new anchorages will need to be designed, installed and certified.
  4. Unbudgeted Expense. The lack of compliant anchorages, underperforming anchorages or no anchors is not uncommon especially for older buildings.  Addressing the issue can require a significant expenditure that may not be budgeted.  In that scenario, some building owners and property managers have suspended the window cleaning and live with dirty windows until the funds for the project can be allocated.

In our experience, there has been a quick and widespread response from Chicago area building owners to comply with the rule changes while other regions have not acted as rapidly.  As more of these systems are installed, updated, upgraded and certified, it’s hoped that the days when a window cleaner tied off to an air conditioning condenser, a vent, a gate or even conduit have passed into forgotten history.

Terry McDonald, S.E., P.E.  is an associate principal and a senior structural engineer at Klein & Hoffman, structural engineers and architects, and BOMA/Chicago member.

 

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BOMA/Chicago Education Committee Profile

By Susan Hammer, BOMA/Chicago Education Committee Chair and Vice President/General Manager at AMA Plaza

EC Photo 1 (10)

The BOMA/Chicago Education Committee

Sir Isaac Newton once said: “What we know is a drop, what we don’t know is an ocean.”  This philosophy is what drives BOMA/Chicago’s Education Committee to develop diverse and engaging education programs for BOMA/Chicago members.

BOMA/Chicago’s Education Committee is made up of a group of seasoned professionals – both Building and Affiliate Members – who are committed to education and professional development.  The group’s mindset is that education creates value for the real estate industry and serves as the foundation for future leaders, innovators and teachers. Education also increases personal satisfaction and is a tangible way to measure achievement, while providing avenues for personal and professional growth and increasing credibility, respect and acceptance.

With a focus on designation courses, educational scholarships, Lunch & Learn programs and professional development, the Committee is always seeking out ways to encourage continuing education of building professionals on all experience levels. Over the last year, the committee has promoted designation programs to industry leaders to share the benefits of investing in designation programs for their employees.

In 2018, five RPA/FMA/HP designation courses were offered, along with the Foundations of Real Estate program. Due to our renewed promotional efforts, we experienced an average increase in enrollment this year for RPA/FMA courses of 92 percent.

Even as the committee is committed to encouraging building owners and other decision makers to support RPA/FMA programs, it is still a work in progress.  In the meantime, there are so many emerging professionals who have shown a love for real estate and property management who want to keep increasing their knowledge and professional profile but are unable to pay for the courses personally.  By offering designation scholarships, a worthy applicant can receive a full RPA along with all of the recognition of receiving the scholarship.

Over the years, applications for the designation scholarships have increased as more people have become aware of the benefits. An average of eight applications were reviewed in each of the last six years. In total, we have awarded eight Full Designation Scholarships, in addition to awarding fourteen Single Designation Course Scholarships since 2008. The Ollie Scholarship, which started in 2006, has been awarded to sixteen people. Several past recipients of this scholarship are leaders in their firms and in the Chicago real estate community, including chairing BOMA/Chicago committees.

Our Lunch & Learn programs, hosted by Affiliate Members, provide opportunities for important interactions between affiliates members and property managers and leverages the expertise of the affiliates to bring awareness of new technologies, trends, strategies, regulations and best practices. These programs are free for all members to attend and allow Affiliate Members an opportunity to share best practices and industry knowledge with our Building Members.

This year, we hosted nine Lunch & Learn programs, and experienced a 10 percent increase in attendance compared to last year. Two of our Lunch & Learn programs – BOMA 2017 Building Measurement Standards and Construction Drawings 101 – each drew over 70 attendees. Other topics included Workplace Violence Prevention, Parking repair programs, a BOMA 360 seminar and emotional intelligence.

Another Lunch & Learn seminar and regular favorite is the TOBY Best Practices program that encourages participation in the TOBY Awards Program. Over 300 people have attended this seminar since its inception in 2012. This seminar was also recognized by BOMA International and presented at the BOMA Conference in San Antonio this past year with over 80 people in attendance and will be reprised at the Conference in Salt Lake City in 2019.

All Affiliate Members are encouraged to apply to host a Lunch & Learn seminar. The Committee reviews every application to ensure the topic is relevant and the material is relatable to the audience. We also provide recommendations to the affiliates about ways to improve the presentation and help to customize the material to the audience.

The committee also makes efforts to grow our offerings year after year. This past year we have expanded from traditional presentations to providing seminars in relationship management and promoting new courses and designations such as the High Performance (HP) courses. And in May 2018, the committee launched a voluntary mentorship program for enrolled RPA/FMA designation students. The program matched four RPA/FMA students with RPA/FMA recipients with the following goals in mind: keeping students on track, working through challenges, maintaining program engagement and knowledge sharing.

EC Photo 1 (5)

Susan Hammer, BOMA/Chicago Education Committee Chair

As we all look to 2019, we are reaching out to BOMA/Chicago Board members and other industry leaders to solicit feedback about additional hot topics of interest for members. One such topics we hear about often is the development of curated programs for tenants. In the perpetual goal to retain and attract tenants, commercial real estate appears to be moving beyond the amenities race to finding unique ways to engage and involve tenants. Building occupants are becoming a community in and of itself and innovative programming is driving the culture.

Other future topics may center around how the current political climate – local, state, national and international will impact operations and investment activity. Finally, there will always be a new technology, idea, or service that will arise that will help property management teams operate buildings more efficiently and safely – even though it is not yet apparent, we need to be on the alert to present it to our members as quickly as it becomes known.

The Education Committee welcomes new ideas and feedback from all of our members. What topics are you interested in learning more about in 2019? Leave a reply below to tell us more.

 

 

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Illinois Legislative Preview

By Stephen S. Morrill, Principal of Morrill & Fiedler LLC (M&F)

Policy decisions made in Springfield greatly impact the commercial office industry and BOMA/Chicago members have an ongoing interest in Illinois election outcomes.  As a follow up to last week’s blog about the 2018 Illinois election results, this discussion will provide insight into how the election outcomes will shape the Illinois General Assembly’s agenda and future political landscape.

Veto Session Update

The first week of 2018 fall veto session began on Tuesday, November 13 and ran through Thursday, November 15; the second week will be held from November 27 through 29.  In 2018, Governor Rauner issued a total or amendatory veto to 83 pieces of legislation.  Legislative leaders and senior staff previously suggested that the veto session would focus on its key purpose of considering gubernatorial vetoes, which proved correct in its first week, where 39 vetoes were overridden either the House or the Senate.  Overrides will now “switch” houses to be voted on by the second chamber.  Substantive legislation may be taken up on a case-by-case basis, but the majority of new substantive legislation is likely to be delayed until either the January “lame duck” session (expected to be scheduled sometime between January 1, 2019 and the inauguration of the 101st General Assembly on January 9, 2019) or the 2019 spring session.

Governor-elect Pritzker will be focusing his transition into the Office of the Governor.  Pritzker has announced his Transition Committee and his administration’s Chief of Staff.  Serving as his Transition Committee Chair is Lieutenant Governor-elect Juliana Stratton and campaign manager Anne Caprara will serve as Chief of Staff.  As part of the process, the Transition Committee will likely begin vetting potential candidates to serve as new state agency heads (which require Senate confirmation), members of state boards and commissions (many of which require Senate confirmation), new administration and agency general counsels, and policy and legislative staff, among other personnel decisions.  The Transition Committee will also advise on budget issues and relationship-building in the legislature.  We will continue to monitor key personnel identified by the Pritzker Transition team for key roles in state agencies and the administrative cabinet.

Lame Duck Session Preview

The “lame duck” session refers to legislative session that occurs after new legislators have been elected, but before they begin their terms in a newly convened General Assembly.  New legislators will be inaugurated at 12 pm on January 9, 2019.  If scheduled as anticipated, a “lame duck” session will occur sometime between January 1, 2019 and the inauguration on January 9, 2019, and it will be the last time that out-going legislators will vote on legislation.  The primary difference between the fall veto session and the lame duck session is that all legislation advanced during the lame duck session (including those with an immediate effective date) only requires a simple majority vote for passage (bills with an immediate effective date advanced during the veto session require super-majority votes to advance).  With at least 36 lame duck legislators able to be “free agents” regarding legislation, it is anticipated the 100th General Assembly may consider major legislation on multiple issues – the most likely being a capital infrastructure program with an associated source(s) of revenue.

2019 Spring Session Preview

While the four legislative leaders are likely to remain the same, there will be significant changes in the make-up of the leadership teams given the significant legislative retirements in all four caucuses.  Further, both chambers will need to revise the rules for each chamber, determine the number of substantive committees, and the chair/spokesman for each committee (the House will have a more difficult adjustment given the greater shift in membership).

Additionally, it is anticipated that the issues likely to dominate the 2019 session include, but are not limited to: (a) the FY20 budget – Pritzker’s initial state budget – and whether it includes any new income or sales taxes; (b) a capital infrastructure program – targeted to be significant in size, but also requires a stable funding source; (c) gaming expansion/sports betting; (d) legalization of recreational marijuana; (e) pension reform; (f) energy procurement standards; and (g) a constitutional amendment to authorize a graduated income tax.  Governor-elect Pritzker recently stated that he will not, in 2019, seek to enact a “pseudo graduated income tax” via state legislation – instead focusing on the constitutional amendment.  It is also expected that Governor-elect Pritzker and the Democratic legislative leaders will begin initial discussions on the upcoming legislative redistricting map process that must be adopted in 2020.

BOMA/Chicago’s legislative team will be involved in the General Assembly at every stage and during every session.  Members, be sure to follow the Advocate e-newsletter for updates from Springfield.

M&F has represented BOMA/Chicago before Illinois state government for many years and of counsel at Barnes & Thornburg LLP.  Also contributing to this article are Curt Fiedler, Gary Hannig, Chuck Hartke and Hannah Smith, Morrill’s colleagues at M&F. 

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Help Us Fight Hunger this Holiday Season

Make a Food or Financial Donation through December 7
By BOMA/Chicago

Each year, the Greater Chicago Food Depository (GCFD) provides meals for 1 in 6 residents living in Cook County. This translates into 810,000+ men, women and children.

GCFD_WrapperFor those of us in the CRE industry, food insecurity may be a distant thought. Many of our business discussions, meetings and transactions occur over meals. But for many people across the Chicagoland area, planning the next meal is a stressful thought. Food is weighed on a scale of importance – the question is not which restaurant to try next, but whether or not to pay for food or utilities instead.

BOMA/Chicago helps the food insecure of Chicago answer that question by rallying behind the annual GCFD Holiday Food Drive. This year marks the tenth anniversary that we have partnered with the GCFD on this initiative. During these ten years, we have collected over 740,000 pounds of food. This year, 155 BOMA/Chicago buildings have united to reach of a goal of collecting 120,000 pounds through physical and financial donations. Our generous members and their building tenants demonstrate a passion year after year to help feed Chicagoland – and because of this, we expect to exceed our 120,000-pound goal.

Civic Opera (1)

The JLL property management team at the Civic Opera Building (20 North Wacker).

We are only two weeks into the food drive and many buildings have already emptied their large donation barrels multiple times. This is the case for the Civic Opera building at 20 North Wacker (managed by JLL). Other BOMA/Chicago buildings are encouraging their tenants to host unique games and competitions to drive donations, such as the Harris Bank Building at 115 South LaSalle (managed by Hines). The Hines management team has shared great ideas with their tenants as a way to increase donations, such as Denim Days and hosting a lottery.

You can lend a helping hand by making a donation through December 7. If you want to make a physical or financial donation, visit this webpage to find a list of participating locations. You can drop of food donations at building lobbies or click on a building link to make a financial donation ($1 =3.6 pounds; $1 = 3 meals). Financial contributions are recommended, as the GCFD is able to buy nutritious food in bulk at lower prices.

For more information about the drive, including tips to engage tenants, please visit our website: https://www.bomachicago.org/get-involved/gcfd-food-drive

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Illinois 2018 General Election Review

By Stephen S. Morrill, Principal of Morrill & Fiedler LLC (M&F)

The 2018 Illinois General Election was held earlier this month on Tuesday, November 6.  The anticipated “blue wave,” while not as impactful as originally predicted (at least in the U.S. Senate), still had a significant effect in Chicago, Cook County, and the surrounding Chicagoland suburban areas.  Voter turnout in Chicago and Cook County exceeded 55% of registered voters, and exit polls showed voters between the ages of 18-25 were the largest group of voters in Chicago and its surrounding suburbs – a first for a historically low-turnout population.  As in the 2018 primary election, DuPage County (and many other collar counties), saw a substantial increase in Democratic voter turnout.  This led to many Illinois GOP incumbents losing their re-election battles, while allowing the Democrats to sweep all statewide constitutional offices and increase their majorities in the Illinois House and Senate.

BOMA/Chicago members undoubtedly paid close attention to the 2018 state election, as legislative and regulatory activity profoundly impacts the commercial office industry.  With a host of tax- and energy-related proposals looming, this election produced the General Assembly that will confront a host of issues that may impact how commercial real estate is assessed for property tax purposes, how commercial office buildings shall be required to meet the life safety needs of tenants and the public, and how licensed commercial real estate professionals are best regulated.  With all that in mind, we review for the BOMA/Chicago community the results of the Illinois 2018 general election.

Race for Governor

In one of the most expensive gubernatorial races in U.S. history, Democratic candidate J.B. Pritzker defeated first-term Governor Bruce Rauner 54%-39% to become the next Governor of Illinois.  In the following days, the Governor-elect has named a strongly bipartisan transition team including State Representative and Democratic Party of Illinois Executive Director Christian Mitchell, AFL-CIO President Mike Carrigan, former Republican Governor Jim Edgar, and former Minority Leader Senator Christine Radogno.  Pritzker will be sworn in as the 43rd Governor of Illinois on January 14 of next year.  New leadership in all (or virtually all) executive branch agencies is expected to be appointed in the months to come.

Candidate Sam McCann, a former state Senator running as a member of the new Conservative Party very narrowly failed to reach 5% of the vote, a threshold which would have guaranteed Conservative Party candidates a spot on the ballot in future elections.  Kash Jackson, a Libertarian, received 2.4% of the vote.

Other Statewide Offices

The Attorney General race, widely reported in the weeks leading up to the election to be the closest of all statewide races, saw Senator Kwame Raoul defeat Republican candidate Erika Harold 54%-43%.

Secretary of State Jesse White (D-Chicago) handily won his sixth term as Illinois Secretary of State with 64% of the vote.

Incumbent Comptroller Susana Mendoza received almost 60% of the vote over Republican challenger and former state Representative Darlene Senger.  Shortly after the election, Mendoza announced a highly-anticipated Chicago mayoral candidacy, adding her name to the now 16-candidate race.  Should she fail to be elected as Mayor of Chicago, she will retain her position as State Comptroller; should she win that race, her replacement as Comptroller will be appointed by the Governor.  City of Chicago elections will be held this coming February.

Michael Frerichs was elected to his second term as state Treasurer with 57% of the vote over Republican candidate Jim Dodge (39%) and Libertarian candidate Mike Leheney (3.4%).

Overview of Contests for State Legislature

While the majority of legislative contests have been made official, there remain a few races that have not been called and election officials will continue to process ballots (absentee, vote-by-mail, and provisional).  Regardless of yet-to-be-called races, the Democrats managed to increase their majorities in both the Senate and the House.  When the new General Assembly, Governor, and state constitutional officers are sworn in in early January, Democrats will have control of all three branches of Illinois government.  Governor-elect J.B. Pritzker and the Democratic Party of Illinois are credited for the high Democratic turnout seen in this election by placing strong focus on a vote-by-mail initiative, early voting messaging, and a “Get Out The Vote” campaign on election day.

The Illinois Senate Democrats, who previously held 37 seats to Republicans’ 22, increased their supermajority to 39 seats after flipping two Senate districts and defeating Republican incumbents Sen. Tom Rooney and Sen. Chris Nybo.  A third race, yet to be called, could see Republican Sen. Michael Connelly unseated by his Democratic opponent, further increasing the Senate Democrats’ veto-proof majority.  On Thursday, November 15, Sen. Nybo submitted his letter of resignation, effective immediately, indicating he will not return for the second week of veto session (November 27-29) or “lame duck” session in early January.

The House Democrats, who saw their supermajority slip away in the 2018 election, has regained a net of six seats (picking up seven seats while losing one).  This grows their caucus from 67 seats to 73, once again claiming a supermajority over House Republicans.  Republican members Peter Breen, Sheri Jesiel, Jerry Long, David Olsen, and Christine Winger were unseated by their Democratic challengers, while Democratic member Natalie Phelps-Finnie, appointed to replace Rep. Brandon Phelps upon his retirement, was defeated by Republican Patrick Windhorst.  Rep. Christian Mitchell (D-Chicago) will serve the remainder of his current legislative term before taking over as Deputy Governor in the Pritzker administration in January.

Two House races remain undecided. The race between recently-appointed Republican Rep. Helene Miller Walsh and her Democratic challenger Mary Edly-Allen, has grown increasingly tight.  As vote-by-mail and absentee voter ballots continue to be tallied, Rep. Miller-Walsh, who led on election night, has a deficit of just three votes as of this writing.   Incumbent Republican Rep. Tom Morrison, up for his 5th term in the House, has yet to claim victory over Democratic candidate Maggie Trevor.  Rep. Morrison leads his opponent by just 72 votes.

As both chambers enter the 101st General Assembly with Democratic majorities, it is expected that the same legislative leaders will be re-elected to lead their respective caucuses: House Speaker Michael Madigan (D-Chicago), Senate President John Cullerton (D-Chicago), House Minority Leader Jim Durkin (R-Western Springs), and Senate Minority Leader Bill Brady (R-Bloomington).

As earlier reported, the 2018 election cycle in Illinois saw a record number of state legislators who either resigned, lost a primary election, or announced retirement or candidacy for a different elected office.  This caused a significant increase in the number of competitive legislative races, and will usher in a General Assembly with almost a quarter of members arriving as freshmen legislators.

Because the policy decisions made in Springfield greatly impact the commercial office industry, BOMA/Chicago members have an ongoing interest in Illinois election outcomes.  Hopefully this discussion has provided insight into the 2018 Illinois election outcomes and future political landscape.

> Stay tuned for a forthcoming blog from Steve Morrill focused on what to expect in the Illinois General Assembly in the weeks and months ahead.

M&F has represented BOMA/Chicago before Illinois state government for many years and of counsel at Barnes & Thornburg LLP.  Also contributing to this article are Curt Fiedler, Gary Hannig, Chuck Hartke and Hannah Smith, Morrill’s colleagues at M&F.  

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BOMA/Chicago PAC: Gearing Up for the City’s Big Elections

By Ron Tabaczynski, Director of Government Affairs, BOMA/Chicago

Right now, Chicago is approaching an important election year in 2019.

Fortunately, BOMA/Chicago will be ready.

Through its political action committee (PAC), BOMA/Chicago supports political candidates who have demonstrated leadership and sound decision-making on issues affecting commercial real estate. It’s crucial for us to align with candidates who will further the success of our industry in Chicago.

We’re off to a great start, thanks to member contributions to our PAC. However, we still have a long way to go to reach our goal. We’re guided by our strategy to help get us there. It’s one that we stand firmly behind as it’s remained steadfast – and successful – over the years.

We want to be fully transparent to our members, so here is a look at our strategy and how we approach our PAC.

Focus on Locations

The idea that “all politics are local” certainly rings true at the City Council level.  Tradition and practice put great emphasis on working with the ward aldermen. From a strategic standpoint, we want to put increased emphasis on building and maintaining our relationships with aldermen who represent wards where we have member buildings.

For example, when we are contacted by a member for a constituent-type concern – such as loading zones, streets, alleys, permits – we will be dealing one of these three aldermen. Therefore, it’s important to zero in on these specific wards in Chicago with our PAC efforts.

Commitment to Committees

There are several city council committees that should be BOMA/Chicago members’ collective radar. The most important of which is the Zoning, Landmarks and Building Standards committee. This one is most likely to deliberate on issues most important to us. In fact, we often speak before this committee. Other priority committees are certainly of interest to us and our members, but to a slightly lesser degree.

Carefully Evaluate

As we are still several months away from candidacy filings for the February 2019 election, we can only speculate which aldermen will have contests – unless a challenger publicly declares.

At this point, there is no way for us to determine the significance of any opposition to those incumbent aldermen. Some aldermen have announced that they will not seek reelection, but others may wait until the filing deadline approached.

Once the candidacy of incumbents and challengers begin to solidify, we will evaluate each race on a case-by-case basis and determine their importance. We will base our analysis on the following criteria.

  • Past support of BOMA/Chicago positions
  • Likelihood of reelection, along with nature and circumstance of current race
  • Committee chairmanships and membership
  • Geographic importance
  • Accessibility and willingness to discuss BOMA/Chicago positions
  • Overall effectiveness and influence among colleagues
  • The advantage/disadvantage of having a particular candidate win or lose
  • Relationship to overall advocacy strategy

Working together with our partners and lobbyists, we rank races into high, medium, low, and opportunity levels of contributions.

Despite our best efforts to evaluate, politics can be unpredictable. Every election, there are always rumors that occasionally turn out to be true, while others remain unfounded. Some races are consistent, while others remain very fluid up until petition challenges are decided, which can be a few weeks before the election. Usually races will emerge that turn out to be surprises, while others that were expected to be very competitive contests fail to materialize. This is simply the nature of politics and the election cycle.

Throughout it all, our strategy remains consistent – even in non-election years. During those years, we concentrate on maintaining the relationships with the aldermen from key wards, as well as the key city council committee leadership and members.

From a timing standpoint, many campaigns kick off in September, so expect to start hearing from challengers in the coming weeks.

Importance of Political Advocacy

A strong political action committee (PAC) is essential to safeguard the success of the industry. PAC donations enable BOMA/Chicago to participate directly in the political process by supporting officials and candidates committed to advancing the interests of commercial real estate and our advocacy agenda.  The BOMA/Chicago PAC was formed as a state PAC under Illinois law in 1997.  It does not make contributions to Federal candidates. Federal candidates are supported through BOMA International’s BOMAPAC.

Whether it is to support state, county or city candidates, or federal candidates through BOMAPAC, we still need our members’ help to support our advocacy efforts.  To make a contribution, click here to download and complete the contribution form or get in touch via email at rtabaczynski@bomachicago.org.

 

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Gold Circle Awards Profile: 2018 Property Management Professional of the Year Heather Holderman [Part 2 of 2]

Heather Holderman, General Manager with CBRE at 353 North Clark, was named BOMA/Chicago’s 2018 Property Management Professional of the Year.

< Read Part 1 of Heather Holderman’s Profile.

CBRE


Over the last couple years, you’ve seen an increase in your building tenant survey score. Can you share any advice with other property managers about ways to improve tenant relations and overall satisfaction?

Cultivating relationships with tenants from the level of decision maker, facility manager and the administrative teams.  All these roles are critical to our success because each independently influence the perception of our service.  We maintain personal contact rather than solely communicating electronically, we strive for flexibility and make efforts to anticipate their needs or accommodate whenever possible.  Often it is the smaller gestures that don’t really have a financial impact that are the most memorable for a tenant.  We attempt to be a tenant’s partner in their business rather than a road block, and any services we can provide that makes them more efficient is a win for everyone involved.

Under your leadership, your tenants can take advantage of tenant amenities that include an art exhibition program, a newly refreshed fitness center and lobby, and a community fitness competition program. Can you share some predictions about new tenant amenities we’ll be seeing over the next ten or twenty years?

The amenity race will continue to evolve based on how occupants are utilizing their space and the type of culture they are looking to create at their places of business.  We see a lot of tenants looking to create a community within their corporate culture and a stronger emphasis on working in teams.  Programs that property managers can offer to promote a strong sense of community and be perceived as play or fun and are simplistic, are likely to continue to evolve.  It has been suggested that even a 10-minute work break playing ping pong with a colleague fosters more creativity.  This is fun for the employee and benefits the employer with greater productivity.

Additionally, any services that are easily accessible electronically via a cell phone application and prepared in advance or automatically to mitigate time waiting for services.  Some of these applications exist today such as food ordering apps, but similar applications from a building managed café or coffee kiosk as well as tailored delivery methods directly to the individual occupants.  Where these programs can be offered by building owners and managers, the overall perception of how the building is managed and the benefits it provides individual building occupants will be extremely positive.

What are some of the more innovative charitable initiatives you have sponsored at your building?

Some of our best recognition events have been in support of Earth Hour and Earth Day.  While all of the charitable organizations we support are intended to bring awareness, we have the unique opportunity to showcase all the inherent features of the building that directly impact the environment.  Our engineering team has constructed a model of the building with small pumps that demonstrates the infrastructure of the rain water harvesting system.  This is personal to our tenant base because they are learning about the physical features of the building they work in and it opens a dialogue for how they can contribute as individuals.  We also hosted an ice bucket challenge for one of our anchor tenants in support of one of their employees suffering from ALS.  We have also supported the Cystic Fibrosis foundation with practice stair climbs, which is a building wide effort and requires an intense amount of coordination to host a successful event.

What are some challenges you believe commercial building property managers should prepare for in the years ahead?

Densification and technology. The office layout with large perimeter offices dominating the window line are in the process of phase out.  Many office buildings were originally constructed to accommodate these historical layouts without considering new trends such as open ceilings for greater ceiling heights and sound attenuation.  Heating and cooling systems will be particularly challenged and demand for smaller spaces to conduct periodic confidential tasks or more formal meeting space will shift to the building owner to provide.  The infrastructure for an office building will also drastically change with less usable space allocated to house paper files or law libraries in exchange for digitized versions.  A robust tele/data system that is highly secured with redundancy will become a requirement.  Also, a shift to smarter buildings that operate with apps and that can “read” occupant behaviors.  For example, turnstiles that individually identify an occupant by their smart phone and grant access without swiping a badge or checking in, and upon registering that individual, preparing their respective work areas with task lighting and thermal comfort at varying times. Examples of personal touches such as utilizing GPS functions on cellular phones to determine individual’s proximity to the building and then automatically pre-ordering coffee from a building café that is prepared and paid for upon that individual’s arrival.  The coordination of such items without compromising core building functions will be a challenge to overcome.

Throughout your membership with BOMA/Chicago, what experiences stand out the most to you?

BOMA/Chicago is a strong advocate for issues impacting buildings owners and managers and it has been impressive to watch the success of that advocacy over the years.  I’m also impressed by the effort to engage in new initiatives such as MBCx and energy efficiency and educate members on methods that they may not have exposure to otherwise.  It is also comforting that I can rely on BOMA/Chicago to be a resource to matters affecting our industry.

What is your favorite BOMA/Chicago event and why?

The TOBY awards.  All of your colleagues, and perhaps even your competitors, gather in such a way that promotes goodwill and genuine camaraderie in the industry. It’s a great opportunity to acknowledge the efforts of other buildings and their team members and it serves as motivation to be the best you can be in your respective roles.

What piece of advice would you share with our Emerging Leaders?

Dedication and a strong work ethic.  These are two attributes that will never go out of style.  Even if the outcome isn’t optimal or the answer is incorrect, it is always recognized when someone gives 110%.  Demonstrating that you care and learn from experiences so that one continues to evolve, and more than anything, being passionate about what you do will ensure long term success.

Given all your accomplishments, is there anything else would you like to accomplish in your career that you haven’t done so far?  

I would like to have a greater awareness of how our foreign counterparts approach the industry and how their culture impacts how they do business.  Participation in committees through BOMA/Chicago or within my own organization are a future goal. I would also like to obtain the prestigious TOBY award for our building and team that works so hard each day and are very deserving.

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Illinois 2018 General Election Preview

By Stephen S. Morrill, Principal of Morrill & Fiedler LLC (M&F)
steve morrill cropped
Because the commercial office industry is profoundly impacted by legislative and regulatory activity at the state and local levels, BOMA/Chicago members and affiliates rightfully pay close attention to elections in Illinois.  This may be particularly true during the current election cycle, since it will produce a General Assembly that will inevitably address a host of tax-related issues in a state with significant budget challenges, together with various energy-related proposals from utility companies and others.  Also inevitably, Illinois lawmakers elected this November will confront a variety of proposals that may impact how commercial real estate is assessed for property tax purposes, how commercial office buildings shall be required to meet the life safety needs of tenants and the public, and how licensed commercial real estate professionals are best regulated, among other things.  With all that in mind, we preview for the BOMA/Chicago community the various races that will appear on the Illinois 2018 general election ballot.

Race for Governor

The two majority-party candidates are Governor Bruce Rauner (incumbent and Republican candidate) and J.B. Pritzker (Democratic candidate).  There are two minor-party candidates who will also be on the ballot: Kash Jackson of the Libertarian Party, and current Republican State Senator Sam McCann of the new Conservative Party.  The candidacy of Sam McCann is the result of: (a) a failed attempt by Governor Rauner to unseat McCann during his last primary election campaign for State Senate; (b) continued division within the conservative base of the GOP party after a divisive primary race between Governor Rauner and Rep. Jeanne Ives; and (c) financial support of labor unions to McCann to help siphon away conservative voters from Rauner in the November election.

The most recent independent poll, by the Paul Simon Public Policy Institute of Southern Illinois University, has Pritzker leading Rauner 49-27.  While various Democratic and Republican internal polls show somewhat closer margins, all known recent polling reflects a substantial lead for Pritzker.  Perhaps reflecting the “blue wave” predicted by many in the media during this Presidential midterm election, the Simon Institute shows a generic Democrat versus Republican preference statewide in Illinois of 49-27 (the same margin as the Pritzker-Rauner matchup), with obvious implications up and down the ballot.  The favorable environment for Pritzker is also reflected in campaign resources for the two self-funding candidates: the last contribution Rauner made to his own campaign fund was for $50 million on December 20, 2016; since that date, Pritzker has put over $146 million into his own account.  Of course, polls and other factors represent snap-shot views at moments in time in a fluid and ever-changing process, with the election still a month away.

Should the challenger Pritzker win the governorship, there will be new leadership in  all (or virtually all) executive branch agencies; should Governor Rauner win reelection, most senior agency personnel will remain in place, albeit with an inevitable infusion of new personnel in a second term.

Other Statewide Offices

Illinois Attorney General Lisa Madigan (D) surprised many in Illinois politics in deciding to step away from her role as Attorney General and not seek re-election in 2018.  The current election for Illinois Attorney General is between State Senator Kwame Raoul (Democratic candidate), Harvard Law School graduate and former Miss America winner Erika Harold (GOP candidate), and Bubba Harsy (Libertarian candidate).

Secretary of State Jesse White (D-Chicago) is seeking re-election to his sixth term as Illinois Secretary of State.  He is challenged by Jason Hellund (Republican candidate) and Scott Dutner (Libertarian candidate).

A former Representative of the Illinois House, and former Clerk of the City of Chicago, Illinois Comptroller Susanna Mendoza is finishing her first term as Comptroller. Mendoza is challenged by Republican candidate Darlene Senger and Libertarian candidate Claire Ball.

A former State Senator, Michael Frerichs is finishing his first term as Treasurer. He is being challenged by Republican candidate Jim Dodge and Libertarian candidate Mike Leheney.

In each of these statewide offices, recent polling shows significant leads for the Democratic candidates.

Overview of Contests for State Legislature

Democrats currently have the majority in both chambers of the Illinois General Assembly.  The Illinois Senate now has a Democratic super-majority with 37 Democratic members and 22 Republican members (36 votes are required to override a gubernatorial veto).  The Illinois House has 67 Democratic members and 51 Republican members (just four seats short of the 71 needed to override a gubernatorial veto).  Everyone expects continuing Democratic majorities after the 2018 general election, and every indication suggests that the same legislative leaders will hold power in the coming General Assembly: House Speaker Michael Madigan (D. Chicago), Senate President John Cullerton (D. Chicago), House Minority Leader Jim Durkin (R. Western Springs), and Senate Minority Leader Bill Brady (R. Bloomington).

The 2018 election cycle in Illinois has seen a record number of state legislators who have either resigned, lost a primary election, or announced retirement or candidacy for a different elected office – leading to a sizable increase in the number of competitive state legislative races.  Currently there are 34 state legislators (or almost 20% of the entire legislature) who will not be returning to legislative office when the 101st Illinois General Assembly takes office in January 2019.  The current list of “lame duck” and resigned legislators is as follows:

  • Sen. Ira Silverstein (D) – lost 2018 primary election
  • Rep. Dan Burke (D) – lost 2018 primary election
  • Rep. David Reis (R) – lost 2018 primary election
  • Sen. Kyle McCarter (R) – retirement in 2018
  • Sen. Tim Bivins (R) – retirement in 2018
  • Rep. Mike Fortner (R) – retirement in 2018
  • Rep. Bob Pritchard (R) – retirement/resigned in 2018; replacement appointed
  • Rep. Chad Hays (R) – retirement/resigned in 2018; replacement appointed
  • Rep. Barbara Wheeler (R) – retirement in 2018
  • Rep. Patti Bellock (R) – retirement/resigned in 2018; replacement appointed
  • Rep. Bill Mitchell (R) – retirement in 2018
  • Sen.  Bill Haine (D) – retirement in 2018
  • Rep. Steve Andersson (R) – retirement in 2018
  • Rep. Sarah Jiminez (R) – retirement in 2018
  • Rep. Carol Sente (D) – retirement in 2018
  • House Majority Leader Barbara Flynn Currie – retirement in 2018
  • Rep. John Cavaletto (R) – retirement in 2018
  • Sen. Pam Althoff (R) – retirement/resigned in 2018; replacement appointed
  • Rep. Reggie Phillips (R) – retirement in 2018
  • Senate Majority Leader James Clayborne (D) – retirement in 2018
  • Rep. Al Riley (D) – retirement in 2018
  • Rep. David Harris (R) – retirement in 2018
  • Sen. Sam McCann (R) – retirement in 2018 (third party candidate for Governor)
  • Rep. Cynthia Soto (D) – retirement in 2018
  • Sen. McConnaughay (R) – retirement/resigned in 2018; replacement appointed
  • Rep. Nick Sauer (R) – resigned in 2018; replacement appointed
  • Rep. Silvana Tabares – resigned in 2018; replacement appointed
  • Rep. Scott Drury (D) – lost primary for Attorney General
  • Rep. Laura Fine (D) – running for state Senate (Sen. Biss district)
  • Sen. Dan Biss (D) – lost primary for Governor
  • Rep. Brian Stewart (R) – running for state Senate seat (Sen. Bivins district)
  • Rep. Julianna Stratton (D) – running for Lt. Governor (running mate for JB Pritzker)
  • Rep. Litesa Wallace (D) – lost primary for Lt. Governor (running mate for Dan Biss)
  • Rep. Jeanne Ives (R) – lost primary for Governor; will not seek re-election to House

Note: if Sen. Raoul wins his race for Attorney General, he will give up his Senate seat.

Key State Legislative Races

Consistent with approval/disapproval polling numbers for President Trump in different regions of Illinois, Republicans hope to pick up legislative seats downstate (where Democrat incumbents are playing defense in relative Trump-favoring areas), while Democrats hope to pick up seats in the suburbs and collar counties (where Republican incumbents are playing defense in relative Trump-disfavoring areas).  Most observers predict a range of net outcomes from status quo to several-seat Democratic gains in each chamber.

National Offices

Neither of the U.S. Senators in Illinois are up for re-election this year; however, there are four competitive U.S. House races to watch:

  • Peter Roskam (R. IL-6) versus Democrat Sean Casten
  • Mike Bost (R. IL-12) versus Democrat Brendan Kelly
  • Rodney Davis (R. IL-13) versus Democrat Betsy Londrigan
  • Randy Hultgren (R. IL-14) versus Democrat Lauren Underwoo

While BOMA/Chicago focuses more attention on state and local governments rather than federal advocacy, our association supports the federal-related efforts of BOMA/International.  Among federal issues of current concern to the commercial office industry are ADA lawsuit reform, federal tax reform and capital gains taxation, infrastructure and preserving ENERGY STAR.

Upcoming Chicago Mayoral Race

The Office of Mayor of Chicago holds special political and governmental significance in Illinois, and the recent announcement by Rahm Emanuel that he will not seek reelection has helped produce a huge array of candidates and consume a great deal of media and public attention.  This non-partisan election takes place in February of 2019 (the first round, with an absolute majority needed to avoid a runoff between the top two finishers) and April of 2019 (the second round, if necessary).  Current announced candidates include:

  • Toni Preckwinkle, who is now running unopposed for reelection as Cook County Board President.
  • Bill Daley, former White House chief of staff and U.S. Commerce Secretary (under President Obama) and U.S. Commerce Secretary (under President Clinton; son and brother to former Chicago Mayors.
  • Gery Chico, former President of Chicago Board of Education.
  • Garry McCarthy, former Chicago Police Superintendent.
  • Lori Lightfoot, ex-Police Board President.
  • Paul Vallas, former Chicago Public Schools CEO.
  • Dorothy Brown, Clerk of the Circuit Court Clerk.
  • Willie Wilson, wealthy Chicago businessman and previous mayoral candidate.
  • Neal Sales-Griffin, tech entrepreneur.
  • Matthew Roney, pharmaceutical technician and DePaul student.
  • Troy LaRaviere, former CPS principal.
  • John Kozlar, lawyer and former City Council candidate.
  • Jeremiah Joyce Jr., lawyer.
  • Ja’Mal Green, community activist.
  • Amara Enyia, policy consultant.

With a late-November filing deadline, the ultimate field of candidates remains fluid.  Among those still expressing possible interest in running are:  Suzanna Mendoza, currently running for reelection as Illinois Comptroller, and Illinois State Rep. LaShawn Ford (D-Chicago).

Cook County Board President Race

While Cook County Board president Toni Preckwinkle is running unopposed for reelection this November, she has already formally announced her campaign for Mayor of Chicago.  She will certainly be a top-tier mayoral candidate, and perhaps the favorite.  Should she be elected mayor, Preckwinkle would vacate her county office, which would be filled (either until the 2020 or 2022 election) by a sitting member of the 17-member Cook County Board.

Of particular interest to BOMA/Chicago at the county level, Democrat Frederick Kaegi will be elected Cook County Assessor this November, having defeated incumbent Joseph Berrios in the March primary election.

Conclusion

Because the policy decisions made in Springfield greatly impact the commercial office industry, BOMA/Chicago members have an ongoing interest in Illinois election outcomes.  Hopefully this discussion provided some insight into the 2018 Illinois political landscape and the races to watch this election cycle.

__________________
M&F has represented BOMA/Chicago before Illinois state government for many years and of counsel at Barnes & Thornburg LLP.  Also contributing to this article are Curt Fiedler, Gary Hannig, Chuck Hartke and Hannah Smith, Morrill’s colleagues at M&F.  

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Five Reasons to Invest in the RPA/FMA Designation Program

By Nancy Capadona, RPA, General Manager at The Hearn Company

I earned my Real Property Administrator (RPA) about 25 years ago after I was encouraged by my supervisor to take the designation classes. The comprehensive RPA coursework accelerated my understanding of property management and allowed me to immediately use strategies to increase the value of my building. That’s why I encourage all my employees and the emerging leaders of the industry to earn the RPA/FMA (Facilities Management Administrator) designation.

Likewise, the next generation of professionals needs the support of today’s managers to unlock the full potential of the designation experience and career possibilities. Below are five reasons why I believe building owners, asset managers and property managers should invest in their team and budget for RPA/FMA classes for the upcoming year.

Improve job performance: Students will immediately apply classroom knowledge within their own buildings. They will reinforce that knowledge through conversations and deeper questions with team members, engineers, security staff and tenants. This will lead to employees seeing the “entire picture” and excelling in their job. In fact, a recent Building Owners and Managers Institute International (BOMI) study of graduates found that 97 percent of graduates agree the RPA and FMA programs improved their job performance and overall career.

Reduce operational expenses: Graduates are empowered with proper and strategic decision-making skills, equipping them with knowledge of how to increase the value of their building. A recent study of graduates showed that 72 percent of graduates experienced a decrease in monthly operating expenses after completing the courses.

Add a mark of distinction: Earning an RPA or FMA designation is a mark of distinction not only for the employees who earn them, but also for the companies make the investment. Demonstrating that an individual is committed to the commercial real estate industry and able to apply tactics to operate properties at peak performance reflects positively on the employee, the property management company and the building.

Benefit from outside expertise: Students can participate in a mentorship program, where they are paired with a senior-level professional who earned the RPA/FMA designation. This will create another outlet for industry knowledge to be shared, and an opportunity for employees to learn new ideas and apply innovative strategies.

Offset designation costs: RPA/FMA courses may be reimbursable as building operating expenses under tenant leases. Many of these costs are also reimbursable under typical property management agreements.

The RPA/FMA designations offer a comprehensive curriculum that focuses on all aspects of commercial real estate management. The eight classes cover: Budgeting & Accounting, Investment & Finance, Building Systems Part I and Part II, Law & Risk, Ethics, Environmental Health & Safety and one elective Electives include Asset Management, Leasing and Marketing for Property Managers, and Managing the Organization.

The total cost of all eight classes and the enrollment fee is $9,200 – a small investment that reaps large benefits. If your building is not able to pay for classes, then your staff members may be eligible for the needs-based Full Designation Scholarship. Click here to learn more.

BOMA/Chicago is offering five live classes in 2019. Click here to view the full course calendar.

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Nancy Capadona is a member of BOMA/Chicago’s Board of Directors and Education Committee.

 

 

 

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Demystifying the State Street SSA and its Impact on BOMA/Chicago Buildings

By Amy Masters, BOMA/Chicago Director of Marketing and Communications

If you received email promotions over the summer for ACTivate networking events hosted by the Chicago Loop Alliance (CLA), you may have wondered … what is the CLA? What does this group do? Does the organization represent the State Street corridor, the entire central business district, or both?

Guess what: you’re not the only one who’s confused. So we thought it would help to provide some background about the CLA, especially in regard to its management of the State Street Special Service Area (SSA) and its impact on BOMA/Chicago buildings, and also explain how BOMA/Chicago and the CLA work together.

The CLA was founded in 2005 following a merger of the Central Michigan Avenue Association and the Greater State Street Council. While the CLA has traditionally focused much of its programming in the East Loop, the group occasionally hosts networking and educational events in other parts of the Loop as well. The CLA has over 250 members including businesses, organizations and individuals located within downtown Chicago.

Perhaps most important to BOMA/Chicago building members, the CLA manages the State Street SSA #1. An SSA is a local tax district that funds expanded services and programs (such as security, landscaping and cleaning) through an additional localized property tax levy within a specific area. Services paid for by SSA funds should be in addition to standard services already being provided by the City. The State Street SSA is the only SSA in the Loop and one of 54 SSAs in the City of Chicago.

An SSA is similar to a Business Improvement District (BID) used in other cities, with one major difference – a BID places control with the building owners and managers paying the levy to ensure the services provided add value to the buildings and are consistent with the owners’ needs and interests. Instead, an SSA allows the Mayor to appoint commissioners to oversee and recommend the annual services, budget and service provider agency to the City. This means that building owners and managers in the State Street SSA have little say over the prioritization of services and selection of vendors, including rates and quality of work.

The State Street SSA was originally created in 1977.  A renewal enacted in 2015 continues the SSA until 2030. Boundaries for the area include property on both sides of State Street between Wacker Drive and Congress Parkway. Government buildings do not pay into the SSA, but do reap the benefits from the extra taxes paid by privately owned buildings.

The 2018 SSA agreement indicates the State Street SSA levy collected more than $2.6 million in 2017, with 2018 funds allocated for public way aesthetics, customer attraction, economic/business development, and safety programs, in addition to SSA management and personnel. The 2017 SSA tax rate was .309 percent of the equalized assessed value, which equates to an annual assessment of nearly $30,900 for a building valued at $10 million. That tax levy appears as a distinct line item on the property tax bill of any taxable real estate within the SSA boundaries.

Property management teams have commended the CLA for their work to beautify the State Street corridor, such as planters, landscaping, and the CLA street teams. Yet many buildings still rely on their own services, including snow removal and power washing, because they are faster and more reliable. Some property managers would like to see greater transparency and communication related to services, costs and outcomes. Many feel the SSA places a disproportionate tax burden on office buildings, while mainly benefiting retail stores on the ground floor. Views from our building members also can differ based on building type: class A buildings take pride in the first-rate amenities and services they offer tenants, while class B and C buildings may appreciate the extra help the State Street SSA provides.

In 2014, BOMA/Chicago successfully opposed the CLA’s efforts to expand the SSA’s boundaries which would tax more buildings located outside of State Street, including buildings as far away as the Aon Center. Most buildings in the proposed expansion area resisted paying for services that wouldn’t directly benefit their building and tenants. Building members also remain confident they can provide many of the same services as the SSA that are better, faster and cheaper. While BOMA/Chicago values CLA’s efforts through its management of the SSA to beautify and promote the State Street corridor – a very unique retail area in the Loop – BOMA/Chicago will continue to oppose future expansion proposals and drive the debate about what is the best and fairest approach.

Despite a difference in opinion over the SSA expansion, our two groups share information, attend each other’s events, and meet regularly. The CLA and BOMA/Chicago have a mutual interest in serving building members, enhancing security and promoting economic development within the Loop, and we look forward to working together in the years ahead.

 

 

 

 

 

 

 

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Gold Circle Awards Profile: 2018 Property Management Professional of the Year Heather Holderman [Part 1 of 2]

Heather Holderman, General Manager with CBRE at 353 North Clark, was named BOMA/Chicago’s 2018 Property Management Professional of the Year.

CBRE

How did you get involved in the commercial real estate industry?

Somewhat by accident actually.  I was working in the financial sector and someone approached me about an administrative position within a real estate company, working in “property management.”  I had no previous knowledge of the field or what the position might entail, but it has turned into an incredibly rewarding career where I’ve had the opportunity to learn about so many other contributing sectors and the professionals serving those sectors. It’s also helped me understand the businesses of the tenants that occupy office buildings and how their success plays a pivotal role in the success of an office building.

You recently led your team to achieve platinum LEED certification for your building. What are some of the outcomes you have experienced from this certification?

We know that tenants prefer assets that have LEED certification from an efficiency and operating expense standpoint and we also have several tenants with LEED-CI designations themselves.  They share in a corporate responsibility to sustainability within their respective cultures.  We also believe that such stewardship is important to recruiting younger talent and many of our foreign counterparts already have a strong emphasis on sustainability.

By engaging in a retro-commissioning program in combination with our LEED Platinum certification, we have been successful in shedding approximately one million kilowatts from our baseline annually and continue to challenge ourselves and the building’s operations to find new and innovative sources of conservation.

What advice would you share with other property managers aspiring to attain this highest LEED rating?

Preparation and teamwork.  Your entire team has to be committed to the goal and willing to invest the extra time and effort to approaching the project from a mindset that is slightly different from traditional real estate.  It can be challenging to convince an owner to make necessary and significant up-front investments. The team must also embrace new building operating strategies that are different from past practices.  Additionally, many of the principles of LEED certification also have a human element such as access to natural light for the majority of occupants.  This concept is contrary to past practices where private offices along the perimeter for a select handful of the total occupants was more commonplace.  With all this in mind, it takes total dedication to affect the change necessary to be recognized by LEED. Without the support of all team members, and frankly strong relationships with the tenant base, the success of the project is in the balance.

You are also leading efforts to implement monitoring based commissioning (MBCx) in your building. How did this come about and what are some of the benefits you’re seeing?

We are very excited about the prospect of MBCx after learning more about it from attending BOMA/Chicago’s Energy Forum in 2017. Some of our colleagues who have participated in MBCx programs were also panelists at the forum, which allowed us an opportunity to follow up with them after and explore how MBCx benefited them as well as obtain some best practices.

We are currently enrolled in MBCx and have implemented several measures, with several more in the upcoming heating season.  We conduct monthly status meetings with our consultant and work closely with our building automation contractor for changes that have been identified by our engineer team in conjunction with our consultant.

The true results of our performance from participating in the program will be more identifiable at the end of initial performance period in the first quarter of 2019.  However, we are currently projecting some substantial energy savings with some smaller measures already impacting part of the overall reduction.

Can you tell us about some of the other sustainability programs at your building?

We have historically and will continue to participate in demand response programs.  In the past year, the engineering and management teams worked cohesively to identify measures that are impactful during peak demand periods and work with building occupants to create awareness of why we are operating differently during these times, especially for measures that are visible to building occupants or measures to which they can contribute.  Tenant involvement propagates a community toward sustainable efforts and provides them with a sense of ownership in the program.

Read Part 2 of Heather Holderman’s profile.

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2019 Gold Circle Award nominations are open September 17 through October 26, 2018. Click here for more information.

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Gold Circle Awards Profile: 2018 Emerging Leader of the Year Dan Williams

Dan Williams, Assistant General Manager with JLL at 101 North Wacker Drive, was named BOMA/Chicago’s 2018 Emerging Leader of the Year

Dan Williams JLL 71 South Wacker
Before arriving at JLL as security director, you worked in the retail sector in security. How did that experience prepare you for working in the office industry?

I worked for Target for five years in the assets
protection/loss prevention department.

I learned a lot of skills that were directly transferable to my role at JLL. First, I was responsible for the safety and security culture of the store. This involved creatively solving problems to enhance the safety of the environment while still keeping a focus on the experience. I also collaborated with managers and employees from other departments while influencing them to actively work towards safety and security goals.

In addition to serving on BOMA/Chicago’s Emerging Leaders committee, you also serve as vice chair of BOMA International’s Emerging Professionals committee. What are some of the initiatives on which this committee is focused?
The Emerging Professionals committee is focused on a number of initiatives. The first is centered around awareness and recruiting. We are developing strategies and resources to help local BOMA organizations reach burgeoning professionals. The committee is also focused on education. The hope is that each year, more and more professionals can be sponsored to attend the International Conference through the J. Michael Coleman Scholarship.

In addition to having a security background, you recently obtained your LEED Green Associate accreditation and now serve as assistant property manager. How has education helped you in your career?
JLL and my managers have been very supportive of my involvement in local organizations. Because I was a security professional, I attended trainings and briefings with the Department of Homeland Security, the National Counterterrorism Center, and the FBI. I also volunteered for ASIS, an international security organization with local chapters, and served on BOMA/Chicago’s Preparedness committee.

I began attending the BOMA/Chicago Lunch and Learns early in my career, and learned very shortly there was a plethora of information available applicable to property management. This was an area I wanted to learn more about to be better suited to assist my property in all areas, not just security.

I pursued and received my LEED Green Associate accreditation. I also attended a number of BOMA/Chicago events each year, focused on varied issues including green initiatives, fire code requirements, building measurement procedures.

You were a part of the team at 71 South Wacker that achieved their second international TOBY award. How did you contribute to this process?
Applying for a TOBY Award is a very detailed process so our entire team was involved. I was mostly responsible for gathering the support related to many of the “life safety” requirements of the application. This included gathering all of the documentation, certifications, policies and procedures, and emergency response plans on hand at the property.

What are some of the benefits of participating in TOBY?
I was able to learn a lot about my building. I learned some of the historical details, such as architectural facts and design specifications, in addition to many of the processes and programs in place that make the building a leader in sustainable operations.

One of the things I learned through the TOBY process at 71 S Wacker is that you can always strive to do better by enhancing programs, starting new initiatives, and educating team members and tenants. Constantly raising the bar not only enhances the property but also gives the building a slight edge over the previous year.  It’s a lot of work, but the reward is worthwhile.

You regularly hosted training sessions for tenants focused on security and safety issues. What were some of the topics you addressed and how did you motivate tenants to participate in these meetings?
In today’s climate, there is a lot of concern over safety in the workplace. I basically took topics that I had heard tenants ask about often (such as active shooter, severe weather, elevator entrapments), and put together presentations defining those situations and providing a step-by-step guide for what the building would do in the situation, and what tenants should do to keep themselves safe.

These were quite successful. The building usually began advertising them through email about four to six weeks ahead of time, and we saw the highest attendance when a few reminders were sent out, especially in the days leading up to the events.

What are some of your interests and hobbies outside of work?
I have two daughters under four, so I don’t have a lot of time for hobbies! My favorite thing in the world is spending time with my family. My wife and I try to make sure the girls get out to experience the world, so we often take them to parks or to go swimming.

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2019 Gold Circle Award nominations are open September 17 through October 26, 2018. Click here for more information.

 

 

 

 

 

 

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Gold Circle Awards Profile: 2018 Building Engineer of the Year Sean Casey

Sean Casey, Chief Engineer with JLL at 71 South Wacker, was named BOMA/Chicago’s 2018 Building Engineer of the Year.

Sean Casey pic 3.33
How did you get your start in the commercial real estate industry?
I started out as an Apprentice Engineer in 1992 at 309 W. Washington for Equity Office and worked in the hotel industry for ten years as a Chief Engineer. Ten years ago I returned to a BOMA/Chicago building as a Chief Engineer.

What was the best advice you were ever given?
The best advice I was given was to never say “no” when approached with a new idea or opportunity. You can never go back and change your answer because more than likely that opportunity has passed.

What is your “pet peeve” in the work place?
I would say not embracing new technologies and not being open to change. These new technologies need to be proven before implementation but you must be open to it.

What tenant issues take up most of your time and how do you handle them?
We have been going through quite a bit of tenant construction at 71 South Wacker the last few years along with building “ready now” suites, both of which have taken up a large portion of my day.

What are some trends you’re seeing in the commercial real estate industry that interest/impact you the most?
Amenity floors are now a part of all the buildings. New and old buildings are all utilizing obscure spaces to attract tenants. What once was a dead space has been transformed into a gym, lounge, or game room.

You have led major energy efficiency initiatives generating hundreds of thousands of dollars in savings. What were some of the lessons learned with these projects and do you have advice to share for others looking for ways to reduce energy costs?
Despite the implementation of a number of successful energy efficiency projects, 71 South Wacker was opened in 2004/2005, and it still has some areas where we can reduce energy usage. We’re fortunate because our owner will implement a measure that can have a ten-year payback, which gives us opportunities.

I would suggest always looking at what engineers and property management teams are doing in other buildings. Don’t hesitate to borrow an idea from another building if it makes sense in your own, and learn from others’ challenges or mistakes.

Your building has won not just one, but two international TOBY awards. What advice would you give to other chief engineers/engineers involved in a TOBY application now or in the future?
I would say that working together with the management team long before the initial TOBY application is due makes things a lot easier. We have policies in place that make tracking an easy process. Partnering with trusted BOMA/Chicago vendors that have a stake in the building is also necessary.

You’re an active participant in Retrofit Chicago’s Commercial Building Initiative and the City of Chicago Green Office Challenge. How have you benefited from these programs?
Retrofit Chicago and the Green Office Challenge provide opportunities for Chief Engineers to get together and share ideas on what has worked, what hasn’t, and to tour their facilities. Not every measure has the payback that was calculated, but nothing ventured, nothing gained.

You’re a volunteer with Habitat for Humanity. How did you connect with Habitat and why is it important to you?
I was introduced to Habitat for Humanity at the JLL Engineer’s conference. It was a great opportunity to work with JLL employees from around the world to provide a home for a family. The family was there with us and to see how happy they were was special. Each year at the conference, we assist with different charities and it is very fulfilling.

What are some of your other interests and hobbies outside of work?
I coach my two son’s hockey teams, play on a men’s league team, and enjoy the outdoors with my family.

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2019 Gold Circle Award nominations are open September 17 through October 26, 2018. Click here for more information.

 

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The 411 with the Man from 911: CFD Chief Schroeder Talks about Building Preparedness

BOMA/Chicago Preparedness Committee Chair Erin Parks with Sterling Bay recently interviewed Chicago Fire Department Deputy District Chief Walter Schroeder, who is celebrating his 30th year anniversary with the Chicago Fire Department.

cdf-chief-walter-schroeder-e1536612561192.jpgWhat is your role at the CFD?

Chief Schroeder: I conduct education for the public, which includes all residents from preschool to senior citizens, in addition to property management teams and tenants in commercial buildings. Some of the areas I oversee include safety director training, evacuation drills, fire safety seminars, and community outreach.

What documents should each building have at the ready for first responders?

Chief Schroeder: I can’t emphasize enough the importance of keeping the First Responder Book updated.

There are some specific areas that should be updated regularly and treated as living documents. The first is a list by floor and tenant space of individuals who have an inability to ambulate, or other mobility disability, including those with temporary injuries. Property management teams should ensure tenants are aware of the importance of keeping this information up-to-do date, encouraging regular, two-way communication.

Another document that should be updated regularly is the emergency contact list for the property management team. Don’t wait until the emergency happens to discover you are unable to reach a key team member. These are the people who know your building the best and should be on the scene.

The property management team should review the entire First Responder Book at least once a year to make any necessary changes.

How can buildings be better prepared for a CFD response?

Chief Schroeder: Make sure the key property management team members – including the property manager, security director and chief engineer – are at the building fire panel for the first arriving CFD officer. It’s imperative that the property management team is on-hand and prepared to share basic facts with the fire department such as:

  • reason for call
  • location of incident
  • situation details
  • best and safest route to get to the location
  • location access requirements (is a key or pass card necessary?)

Additional information you may need to share with the fire department could include:

  • location and access to fire pump
  • condition of fire pump (are there water pressure problems? any operational issues?)
  • water shutdowns, if applicable
  • construction areas in the building
  • location of trapped elevator (what floor? is it a blind shaft?)
  • elevator company and arrival status

It’s crucial that building engineers and other team members should never personally investigate the area after a fire alarm has gone off. This thought process can be deadly. Not only does it delay contact to the fire department, it could allow the fire to spread or even trap the person in the fire. One of the many benefits of the Chicago Fire Department’s Fire Safety Director Training is its focus on raising awareness about this issue. If the fire panel goes into fire mode, the building engineer and all others should trust there is in fact a fire and immediately contact the fire department. Let the fire fighters who have all the necessary training, equipment and capabilities address the situation. It is imperative that the building engineer – who knows the building the best – be on-hand when first responders arrive.

I would also suggest that buildings schedule a preparedness tabletop exercise once a year with property manager team and invite the CFD and other first responders to participate. This provides another opportunity for the CFD to get to know you, your building, and your tenants.

What is your biggest pet peeve that buildings do in emergencies or fire drills?

Chief Schroeder: One of my biggest pet peeves is when the building team isn’t prepared for the drill, such as not knowing the drop plan – the floors where tenants are relocating.

Another pet peeve is not checking the fire panel to confirm it’s operational. The Chicago Fire Department checks the panel once a year and the building is responsible for checking regularly throughout the year, optimally on a weekly basis, along with the fire pump.

Tell us more about the Chicago Fire Department’s 2020 “All Hazards” Conference

Chief Schroeder: The Chicago Fire Department will host an “All Hazards” conference on July 20-25, 2020 (tentative dates). We’re incredibly excited about this conference, as it will be the first of its kind that teams together the public and private sectors. Conference sessions will address all kinds of emergency situations and ways to mitigate them, with the ultimate goal of keeping our citizens safe. We already have commitments from leaders all over the world that will bring different experiences for the benefit of learning.

Between now and then we want to make the conference as collaborative as possible and encourage feedback from property management teams, including security directors and building engineers, about what content would be most useful to include. Some specific questions we have for your members are: what hazard skills does your property management team need? What topics would be most helpful to review? What types of hands-on demonstrations would you like to see? Please send your feedback to me at Walter.Schroeder@cityofchicago.org.

What is the best thing about being part of the CFD?

Chief Schroeder: I have been blessed to live my dream of being a part of the greatest fire department in world. The camaraderie on the job as well as the feeling of helping others is just incredible.

 

 

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Gold Circle Awards Profile: 2018 Affiliate Member of the Year Jim Wissinger

Jim Wissinger with Harvard Maintenance, was named BOMA/Chicago’s 2018 Affiliate Member of the Year.

jim wissinger picAfter drying out from the BOMA PAC dunk tank at our recent Golf Classic, Jim Wissinger – twenty-year plus BOMA/Chicago veteran and 2018 Affiliate Member of the Year – takes time to share his thoughts on emerging trends, professional development and networking.

Jim serves as Midwest Director of Business Development at Harvard Maintenance, which provides contract cleaning and janitorial services for a wide range of sectors. Recalling his first job in his hometown of Pittsburgh, Pennsylvania shoveling snow and cutting grass, Jim jokes that he’s still shoveling snow to this day.

Jim started out in the commercial real estate industry when he moved to Chicago in the ‘80s. He benefited from working in a wide variety of companies, including elevator service, energy and cleaning, and talks about the importance of expanding horizons. “I would urge others not to get stuck in one industry,” Jim says. “You’re not a technical expert when you’re in sales, so look at ways to diversify industries and learn from each of them.”

When reflecting on the advice he would share with others in the industry, Jim doesn’t hesitate in his response: nothing happens overnight, everything takes time. He emphasizes the importance of building lasting relationships, and always being willing to share advice and knowledge – even with competitors. “Affiliate members should strive to provide value to property management teams through innovation, resources and introductions even when it’s not directly related to their company,” Jim says. “I always ask, what else can I help you with in addition to cleaning?”

On the topic of emerging trends in the industry, Jim points to health and wellness in buildings. “Wellness is complimentary to sustainability and is gaining traction as building owners and managers are learning that a healthy environment is essential to attracting and retaining tenants,” Jim explains. In fact, Harvard created the Cleaning for Wellness program as a significant way that buildings can improve health and productivity by focusing on health and safety, sustainability, productivity, and asset preservation.

In addition to emphasizing wide-ranging experience and relationship building, Jim is a firm believer in the value of education for Affiliate Members to better understand customers’ businesses and offer effective solutions. “Education gives you the knowledge to talk about a lot of different things to people in the commercial real estate industry,” Jim says. BOMA/Chicago provides numerous educational opportunities, including free monthly lunch and learns and the upcoming Foundations of Real Estate offered this September.

Networking events are also an important way to get involved and connect with clients. Jim’s favorite BOMA/Chicago event is the TOBY Gold Circle Awards Gala because it represents the best of the best. “It’s like the Academy Awards of our business,” he adds. Jim was recognized as Affiliate Member of the Year not once, but twice – first in 2008 and also this past year at the 2018 Gala. Additionally, Harvard Maintenance proudly served six of this year’s local and regional TOBY winners, including international TOBY winner 100 North Riverside.

Jim also organized BOMA/Chicago’s very first Golf Classic (which celebrated its twentieth-year anniversary this August) and served on the planning committee for a number of years. The event sold out both golf courses in its first year and continues to be more and more successful each year.

In addition to being a rookie volunteer at Big Brothers Big Sisters, Jim connected Harvard with Revive Center, a Chicago-based organization that works to end homelessness and provide affordable housing to its residents. Harvard is partnering with Revive Center to provide job opportunities and training to their clients, and the company has already hired four people and has plans to expand the program. Jim speaks fondly about a grandmother with an amazingly positive attitude whom he worked with directly. Recently hired in a permanent, full-time position, she now has a livable wage, pension and health insurance.

In his spare time, Jim loves to cook, and when he starts talking passionately about sous vide and the innovative kitchen appliances he recently acquired, it’s apparent he may have missed his calling as a TV pitchman. Jim also enjoys using his smoker and pizza oven and is especially intrigued with the idea of blending technology with cooking so he can spend less time in the kitchen and make more time to socialize with family and friends – many of which we can only assume will be members of the commercial real estate industry.

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2019 Gold Circle Award nominations are open September 17 through October 26, 2018. Click here for more information.

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Gold Circle Awards Profile: 2018 Security Director of the Year Steven Castans

Steven Castans, Director of Security with JLL at NBC Tower, was named BOMA/Chicago’s 2018 Security Director of the Year.

Steven Castans JLL NBC Tower.png

Everyone has their own unique story about how they ended up in the commercial real estate industry. What’s yours?

Upon retiring from the Police Department, I partnered with Larry Doria to run SMI (Security Management and Investigations). My focus at SMI was primarily on BOMA/Chicago member buildings, so I quickly became a member of BOMA/Chicago, where I met and become friends with leaders in the industry including Steve Zsigray, Susan Hammer, Mark Anderson, Myrna Coronado, Bob Quast and T.J. Brookover. I also joined CREN and ASIS. In 2010, we sold SMI to Securitas Security USA, where I stayed on as a Branch Manager in the suburbs, and later moved to the Mobile Unit as their Branch Manager. Right when I was ready to retire, I was asked to become the Director of Security for NBC Tower, which I accepted. I have been here for almost 3 years.

Before working at NBC Tower, you served as Chief of Police for the Cook County Forest Preserve. Did you grow up wanting to be a police officer?

My father was a Chicago Police Officer for 42 years, retiring as a Lieutenant. I was exposed to the law enforcement world my whole life, and I always wanted to be a police officer. I originally took the test to be a Chicago Police Officer. When a federal lawsuit stopped the testing process, I became a police officer with Cook County. Several years later, I was contacted by the Chicago Police Department and was invited to become an officer, but I opted to stay with the county as I was already a Sergeant.

What are some of the major security challenges facing security directors/property management teams today in commercial office buildings and which tools are most effective in addressing them?

Finding qualified security officers is a major challenge and will continue to be in the future. With fast food chains and other corporations offering $15 an hour, the security hiring pool is drastically shrinking. Going forward, I believe remote monitoring and a reduction of officers in buildings will be the new trend. We will need to place more emphasis on technology and training to monitor buildings rather than individual officers.

How do you think this increased focus on technology will change security in commercial office buildings?

With facial recognition, RFID, and advances in access control, who knows where technology can take security of a building. Right now, you can use your phone to scan into a building and activate a card reader. Facial recognition can open elevator doors. RFID woven into a carpet can tell a property manager what was vacuumed and what was not. Technology will change security in a building.

What are some other security trends you’ve seen over the years in the commercial real estate industry?

Management companies used to hire security for individual buildings, and now many of these same companies hire security for an entire portfolio of buildings, which I think is the right approach. It provides for consistency in standards, procedures and expectations for the entire portfolio, while also reducing costs.

What is one of the biggest security risks in which commercial office buildings need to be prepared?

With easy access to guns, the violent intruder could be the most serious risk to a building. I personally believe that building access should be closed and controlled rather than allowing open access and uncontrolled movement. I like turnstiles to control entry to a building and requiring tenants and visitors to use access cards to enter the premises.  With the sharp rise in domestic violence, an attack on an individual or group causes me great concern.

You recently revised emergency procedures at the NBC Tower, creating a color-coded manual of policies and procedures. Can you share some best practices for other security directors thinking about creating or updating their own emergency procedure manual?

I have found that most Fire Life Safety Manuals are bulky and hard to use. I wanted to make NBC’s manual user-friendly so I color-coded each section to represent an event, such as weather, fire, medical emergency. This makes it easier for officers or tenants to respond to an emergency event and comply.

When developing emergency procedures, I recommend that Security Directors talk with their tenants and property management teams to get their input. Having participation from these key stakeholders makes it easier for everyone to understand why we do what we do and how we want them to respond.

Do you have a “pet peeve” in the workplace?

An officer’s appearance. I’m a stickler on wearing the uniform properly and proudly.

As a former police chief and an industry leader known for your strong relationships with the Chicago Police Department and U.S. State Department, can you provide some guidance to our members about ways to strengthen their existing relationships with our local first responders?

It is imperative that the building Security Directors and Property Management know their Police Business Liaison and Police District Commander. In the Downtown Business District, a building is either in the 1st District, 12th District or the 18th District.  

If you have any foreign government entities in your building, a simple call to the U.S. State Department will give you a name of an agent who would be your point person if you would need any questions answered or assistance. Also, it is very important to work with the Chicago Fire Department, which most buildings do when they have fire drills and Fire Life safety training for their building.

I strongly encourage every property manager to invite the police into the building for table tops or training. Use the meetings to share an understanding of the building’s floor plan, common spaces, and critical areas before there is an emergency so when or if there is an emergency, they can better respond.

You were recently awarded Mentor of the Year by the Illinois Security Professionals Association. Did you have a notable mentor in your life? How would you suggest others find mentors?

I became Chief at 29 years old, and most officers in my department had holsters that were older than me [Editor’s note: Steve was the youngest police chief in the US for five years – for departments with 100 or more officers]. Between some old-time Police Chiefs, a State Police Lt. Colonel, and my father, I had the opportunity to learn from several mentors who took time to help me succeed.  Since then, I have always recognized the need to mentor anyone who was interested. Today there are several organizations that can assist an individual in succeeding in both Property Management and Security. BOMA/Chicago has the Emerging Leaders Network and offers a number of educational classes to assist new property managers.  

What do you do for fun when you’re not working?

I like to paint and draw. I work with oils and watercolor paintings and I am now trying other media.

If you could travel anywhere, where would you go?

Italy. Because I’m a painter and artist, I would love to see the museum at the Vatican. 

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2019 Gold Circle Award nominations are open September 17 through October 26, 2018. Click here for more information.

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Being a Part of the Bigger Solution: Highlights of BOMA/Chicago’s Energy and Sustainability Committee

By Rachael Bruketta, Vice Chair of BOMA/Chicago Energy and Sustainability Committee

BOMA/Chicago’s Energy and Sustainability Committee works to make member commercial buildings more energy efficient through ongoing educational programming and providing a basis for BOMA/Chicago’s energy advocacy efforts. Under the leadership of the newly appointed committee chair Eric Duchon with LaSalle Investment Management and vice chair Rachael Bruketta with Sterling Bay, the committee has continued to recruit members from diverse fields and backgrounds, including service providers and property managers, leading to a more expansive set of perspectives and insights.

Over the last two years, the committee has improved its educational offerings, making them more accessible to BOMA/Chicago members to actively learn about what’s happening in the industry from an environmental point of view. Topics covered have included available incentives for utility upgrades, reasons for fluctuating utility pricing, and how grid modifications are affecting consumers.

For example, last year, the committee put together a handful of case studies for our members about energy-efficient upgrades with step-by-step details on how they were achieved. Each case study creates an example for others about what is possible for a property to reduce its overall environmental impact.

Additionally, the committee has started to hold open meetings to provide information and resources to non-committee members, while adding more energy related events to BOMA/Chicago’s educational and networking calendar. The committee has hosted open meetings about ComEd and Peoples Gas energy incentives, Energy Star Certification changes happening in August 2018, and Chicago’s Energy Rating System, which will be rolled out by the city in 2019.

Last summer, the Energy and Sustainability Committee conducted a panel on Monitoring Based Commission (MBCx) and over the past year has hosted two BOMA Energy Efficiency Program (BEEP) full-day seminars with six courses focused on developing energy efficiency programs at buildings. Each seminar included input from committee members who are experts in their field, as well as guest speakers to provide information to attendees to achieve great efficiency. Next week, join the Committee for a panel on Health & Wellness – a trending topic in real estate.

Not only does the committee help BOMA/Chicago members stay informed with the latest news and resources, members also help advocate for green initiatives with an understanding that reliable energy at a lower cost is critical for a robust and competitive business climate in the City of Chicago. One of the current advocacy initiatives includes participating in working group discussions for the Next Grid initiative, which is being led by the Illinois Commerce Commission and has the potential to shape the state’s energy policy for decades. With commercial office buildings using up to a quarter of their operating budgets on utilities, maintaining a strong voice on energy policy is imperative.

The dedication of the Energy and Sustainability Committee to awareness, education and advocacy is what makes the commercial office building industry thrive, and has an impact on the entire city as Chicago leads the nation in sustainability efforts. Through teaching classes on energy-efficient practices, sponsoring events on sustainability, and advocating for lower utility costs and a competitive energy market, the committee keeps the conversation going and searches for solutions to the challenges every building is facing. After all, we’re all in this together.

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