CCAC Hears From Commissioner Evans, Chicago Department of Aviation, on Fueling Chicago's Economic Engine

CCAC would like to thank Donald Resnick, Partner, of Jenner & Block, LLP for hosting CCAC’s monthly luncheon on Tuesday, April 11. Ginger S. Evans, Commissioner of the Chicago Department of Aviation, manages one of the world’s busiest airport systems comprised of O’Hare and Midway International Airports. Commissioner Evans explained to CCAC membership how she is helping “Fuel Chicago’s Economic Engine,” by having immediately addressed modernization efforts at Midway and then focusing on the future of O’Hare, positioning it for the next 30 years.

In 2016, Chicago’s airports handled more than 100 million passengers, over one million operations and 1.7 million tons of cargo. Evans is currently implementing a capital plan for O’Hare, including customer service, supporting tenant requirements, and increasing O’Hare’s global connectivity. Evans was appointed by Mayor Rahm Emanuel in 2015 and has over 30 years of experience as an aviation professional.

The Commissioner reminded the group that O’Hare is a major economic contributor to Chicago and the region’s economy. In 1982, 103,736 jobs contributed $5.5 billion to the economy and in 2002, with 481,730 jobs, the contribution was $47.8 billion. Evans added, “I haven’t had time to provide an update for 2017 and crunch the numbers but I can assure you it’s a very large number.” Turning to tourism, Evans stated, “Chicago is one of only three U.S. cities to welcome more than 50 million visitors and Mayor Emanuel’s goal is to have 55 million visitors annually by 2020. Direct spending by visitors reached an estimated $15 billion in 2016, a 35% increase since 2010.” Tourism generated $911 million in total tax revenue, $2.28 billion in revenue for Chicago’s hotels and $127.3 million in hotel tax revenue. Chicago supported an estimated 145,137 tourism related jobs in 2016.

(L:R) Donald Resnick, Partner, Jenner & Block, LLP; Ginger Evans, Commissioner, Chicago Department of Aviation; Greg Hummel, Partner, Bryan Cave LLP; and Kelly O'Brien, Executive Director, CCAC.

O’Hare has fallen behind other U.S. hubs in modernizing its terminal and landside infrastructure to compete for new international service. The terminals are aged, congested, inefficient and range from 24-55 years old. Specifically, Terminals 1, 2, and 3 need upgrading due to the aircraft limitations and insufficient depth for security checkpoints. Evans also stated, “O’Hare ranks 11th of 12 airports for concessions space per 1,000 enplanements and 2nd in revenue per square foot. We could generate more revenue with improved terminals. Quality airport concessions are a major factor in airport satisfaction ratings.” According to J.D. Power, travelers rank O’Hare as one of the worst airports in the United States. Evans said, “We have a brand problem and we need to solve that problem.”

Since 2000, another critical issue with O’Hare has been the World Gateway Project. Evans elaborated, “Three million passengers are burdened each year with long and complicated transfers between international terminals and terminal core making O’Hare a less attractive international gateway.” Other international gateways are investing in international terminals and as a result are growing. While other U.S. Hubs invest and grow, facility constraints have depressed O’Hare’s position as an international gateway. Evans provided statistics on international growth from 2005 versus 2015. “O’Hare’s international growth rate is negative three percent. Rival airports in cities such as New York, Los Angeles, Miami, Seattle, San Francisco, Dallas, Houston all have positive increases.”

Evans expounded on Chicago’s investment in the O’Hare Modernization Program (OMP), which has substantially reduced airfield/airspace delays. She continued, “This is a fundamental requirement for an efficient hub airport. Upon completion, the OMP will have increased peak hour runway capacity by 50 percent over the pre-OMP airfield, thereby substantially reducing airline operating costs related to airfield/airspace delays. Future OMP projects include Runway 9C-27C, a Centralized Deicing Pad, and Cross-Field Taxiways. Taxiway projects allow for terminal development.” According to Evans, O’Hare Airport will open the first new gates in over 23 years in 2018.

In planning for O’Hare Airport’s future, Evans provided a solution, and that is “O’Hare 21.” Both “O’Hare 21” and the “O’Hare Global Terminal” address the critical need for terminal and landside improvements. Commissioner Evans stated, “As announced in July 2016, we are expanding Terminal 5 by 25% to provide up to nine additional gates. This project will be the first expansion of Terminal 5 since it opened 23 years ago. In June 2016, we announced that three hotel development projects are launching at O'Hare, which will more than double the current hotel capacity at the airport. Finally, and most importantly, "O'Hare 21" calls for redevelopment of Terminal 2 into a new “O’Hare Global Terminal” to serve both domestic and international flights. The Terminal 5 expansion will increase capacity and enable continued international growth on an interim basis until the O’Hare Global Terminal is completed.”

Elaborating on the new O’Hare Global Terminal, Commissioner Evans stated, “the new O’Hare Global Terminal is the key to O'Hare's future. At the center of the airport, the new terminal will allow arriving passengers to exit faster and connect to other flights with greater ease. It will include a U.S. Customs and Border Protection facility, a departure hall with additional space for TSA passenger screening, more concessions and other passenger amenities. It will also dramatically improve connectivity, capacity and efficiency for both O'Hare and our airline partners.” Terminal investment drives growth. Most importantly, Commissioner Evans stated, “this project will NOT use local taxpayer dollars. In fact, it will generate tax revenues.”

Similar to other major construction projects at airports, funding will be provided by bond sales, backed by passenger revenue collected by the airlines. United and American - along with the more than 50 other carriers that fly through O'Hare - agree that O’Hare is in urgent need of terminal modernization. “We are confident that United and American are both committed to maintaining successful hubs at O'Hare, which is one of their most profitable airports,” stated Evans.

To remain competitive in the world economy, we will invest in modern and forward-leaning terminal infrastructure. Concluding her remarks, Commissioner Evans stressed the importance of how the new, centralized O’Hare Global Terminal “will bring more air service, more people and greater economic benefits to Chicago and the resulting improvements in connectivity and operational efficiency will not only make O'Hare the leader among U.S. airports, but a leader among airports worldwide.”

Commissioner Ginger S. Evans, Chicago Department of Aviation addressing the CCAC Audience at the April 11th Luncheon hosted by Jenner & Block LLP

Tuesday, May 9, 2017 at the Vista Sales Gallery

Join us at the Vista Sales Gallery, the newest property from Magellan Development Group L.L.C,  on Tuesday, May 9, 2017 for the next CCAC meeting hosted by David J. Carlins, President, Magellan Development Group L.L.C.

	WHAT:	CCAC MAY MEETING
	GUEST SPEAKER:	David J. Carlins President Magellan Development Group L.L.C
	DATE:	Tuesday, May 9, 2017
	TIME:	12:00 -- 1:30 p.m.
	LOCATION:	Vista Sales Gallery 345 E. Upper Wacker Chicago, IL 60601
	HOST:	David J. Carlins Magellan Development Group L.L.C.
	RSVP TO:	Kelly O'Brien at kobrien@ccac.org

Please Support CCAC Member, The John Buck Company with its 29th Annual Spring Fling

The John Buck Company Spring Fling has become the Chicago Real Estate community’s benefit (party!) of the year.

Join The John Buck Company on Thursday, June 15, 2017 from 5:30 pm -10:00 pm held at Merchandise Mart Plaza in Chicago to benefit By The Hand Club for Kids. 

By The Hand Club is an after-school program that helps kids from Chicago’s most under-resourced, high-risk neighborhoods have an abundant life. Founded in 2001 with 16 kids, today By The Hand Club is serving nearly 1,300 children, emphasizing academic excellence while nurturing the whole child – mind, body and soul.

Founded in 1981, The John Buck Company has established a track record and reputation as a premier, vertically-integrated real estate operating company focused on major U.S. urban markets. Since inception, The John Buck Company has successfully completed over $11 billion of real estate transactions and acquired, developed, or redeveloped over 24 million square feet of office, high-rise residential, hotel, retail, and mixeduse properties. 

Since its inception, The John Buck Company Foundation and its Civic Involvement Committee have given more than $12.5 million to charitable organizations. They actively engage in underprivileged communities in the Chicago metropolitan area, supporting the Foundation’s mission to enrich the quality of life for Chicago families and through youth educational organizations.

For more information, please visit: www.tjbc.com

CCAC Recognizes Member, School of the Art Institute of Chicago, for a Successful Program: "Are We Really Going To Live Forever?" The Promises and Perils of Artificial Intelligence

From the Twilight Zone and Star Trek to George Orwell’s 1984, artists have been helping us imagine artificial intelligence (AI) for decades. Technology has caught up to what artists have been dreaming up, and AI is already transforming the way we live, work, and play.

CCAC Member, Cheryl Russell, Executive Director, Corporate, Foundation, Government, and Civic Relations, for The School of the Art Institute Chicago, organized the event, "Are We Really Going to Live Forever? The Promises and Perils of Artificial Intelligence." Distinguished panelists discussed topics of art, science, theology, national security, and explored the answers to questions such as: What are the moral implications of AI? How do we know what makes us human vs. machine? What are our national security concerns for the future?

Panel Experts included:

• Raja Halwani (Moderator)—Professor, Philosophy, SAIC
• Pete Beckman—Co-Director, Northwestern University-Argonne National Laboratory Institute for Science and Technology
• Rachel Bronson—Executive Director and Publisher, Bulletin of the Atomic Scientists
  
• Malcolm MacIver—Professor, Departments of Mechanical Engineering and Biomedical Engineering, Northwestern University
• Christophe D. Ringer—Assistant Professor, Theological Ethics and Society, Chicago Theological Seminar

As CCAC thought leaders contribute to the future development of the City, these issues are important to debate.  CCAC appreciated the opportunity to help promote the program.

CCAC Young Leader Connector Sprint

In response to the rapid growth of the Chicago central area as the primary economic engine of the region and the near-capacity ridership of CTA trains that has come with it, the CCAC proposes the construction of a new transit line - the Connector.

To anticipate the impact of future transit stops along an extension from the City’s core, the CCAC Young Leaders Group is organizing a Sprint to envision the potential for one neighborhood - Jackson Park. The sprint will be held Wednesday-Friday, September 27-29 at Forum Studio.

5:30 pm- Introduction, Teams & Format, Stakeholder Dinner

9:00 am: Bagels & Coffee

10:00 am: Stakeholder Interviews

12:00 pm: Full Day Work Session

7:00 pm: Working Dinner

9:00 am: Bagels & Coffee

4:00 pm: Final Presentations

5:00 pm: Reception

Participants in the workshop will focus on how transit can unlock economic development opportunities that enrich the existing community and integrate the Obama Presidential Center plans.

For more information and to register, e-mail Shalora Jasper at sjasper@ccac.org.

CCAC Special Programming

Go behind-the-scenes of the legendary home of the Chicago Cubs and 2016 World Series champions with Wrigley Field Tours. Special insights will be shared by CCAC Member and Wrigley Historian, Brian Bernardoni, Senior Director of Government Affairs and Public Policy, Chicago Association of Realtors. Built in 1914, this must-see Chicago attraction houses more than 100 years of history. This is a 75-90 minute guided tour. Tours are outdoor walking tours (approximately 1 mile) conducted in rain or shine. Please dress accordingly. Attractions to see include: Seating bowl, Press box, Budweiser Bleachers, Visitors' clubhouse, Cubs' dugout, and Field. 

CCAC needs a minimum of 50 people in order to book the tour. Cost is $40 per person. Confirm your seat today!

For more information and to reserve your seat by May 8th, please e-mail Shalora Jasper, sjasper@ccac.org.

SAVE THE DATE

For more information, please contact Executive Director, Kelly O'Brien at kobrien@ccac.org. 

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