Development

Corporate Chicago, IL (Directions)

This is a remote assignment; the meeting will be held via videoconference, using Microsoft Teams. The MPEA has provided detailed instructions for accessing the meeting here.

A link (bit.ly/2UDY6sy) is posted for mobile/tablet access. We’ve reached out to the board secretary for clarification on computer access and will pass along any response we receive.

Keep in mind that the MPEA manages the McCormick Place facilities, which has been converted to a field hospital for COVID-19 patients.

Check the source website for additional information

Reporting

Edited and summarized by the Chicago - IL Documenters Team

Note-taking by Jeb Backe

Live reporting by Kayla Lane Freeman

Kayla Lane Freeman @KaylaLane 2/27

Role call is taken, and there is a quorum of representatives. Public comment is moved to the end of the meeting.

Kayla Lane Freeman @KaylaLane 3/27

Larita Clark, CEO of MPEA, shares opening statements addressing the #COVID19 pandemic and MPEA’s action to convert McCormick center to a temporary hospital.

Kayla Lane Freeman @KaylaLane 4/27

Next the comptroller, Stephanie Nieves, shares her report: Month of Feb combined op results show net operating loss of $1,685,000 – resulted in favorable variance of $1,121,000 as compared to budget.

Kayla Lane Freeman @KaylaLane 5/27

YTD combined results before depreciation reflect actual net operating income of $452k, which is $14,148,000 favorable to budget.

Kayla Lane Freeman @KaylaLane 6/27

Reminder of Feb events: Chicago Auto Show, IGI Chicago Style Gymnastics, NBA Legend Lunch, United Airlines meeting et al.

Kayla Lane Freeman @KaylaLane 7/27

Chicago Metropolitan Pier and Exposition Authority (McCormick Place) March 2020 results:

Combined before depreciation reflects a $11,315,000 loss

YTD combined net op loss of $10,863,000 ($106k favorable to forecast)

March events include C2E2, Big East Tournament

Kayla Lane Freeman @KaylaLane 8/27

Chicago Metropolitan Pier and Exposition Authority (McCormick Place et al) Operating costs: $307k favorable to forecast

YTD: unfavorable to forecast $648k

Hyatt generated net loss of $1.7mil ($1mil better than forecast)

Marriott Marquee net loss $3.1m (forecasted $2.9m)

Kayla Lane Freeman @KaylaLane 9/27

CFO Jason Bormann shares tax collection data:
(all reported on a 3 mo lag, restaurant/auto/hotel taxes)
Feb collections represent Nov

Feb - $10.2m (vs $12.7m of Feb 2019)
Feb YTD $120.8m, slightly ahead of 2019 $120.5m

Kayla Lane Freeman @KaylaLane 10/27

March 2020 tax collections (reflects Dec activity for food&bev/auto/hotel and Feb for airport departure)

$11.2m ($2m higher than 2019)
estimating underreporting of hotel taxes, should be corrected in April meeting.

Estimated YTD $134.7m (4% ahead of 2019 fiscal #)

Kayla Lane Freeman @KaylaLane 11/27

Security Officer Steve Georgas: “We have adjusted our security posture” in response to #COVID19 – mentions that each day he receives emails from vendors offering technology and solutions to work with the new post-pandemic normal, whatever that may be.

Kayla Lane Freeman @KaylaLane 12/27

Georgas thanks his colleagues and makes a point to honor “the trades”, citing the manual and service laborers who built and are working the Alternate Care Facility at McCormick Place.

“They’re the real heroes that made this happen. We should all be proud of that.”

Kayla Lane Freeman @KaylaLane 13/27

McCormick Place GM, David Causton: “I want to personally thank Larita Clark for her leadership. … She walked into this not knowing what would happen, several days after becoming CEO.”

Causton cont. to thank various contractors, vendors and partners with McCormick Place.

Kayla Lane Freeman @KaylaLane 14/27

Causton cites McCormick place social media as the primary way of communicating facility changes as they occurred rapidly.

Kayla Lane Freeman @KaylaLane 15/27

Causton mentions that McCormick place is part of “Go Live Together” which is an advocacy group that “helps the event industry recover from the impact of COVID-19 and protect events as a vital part of our economy and communities.”

Kayla Lane Freeman @KaylaLane 16/27

Causton fields a Q about the upcoming expos and trade shows – he explains that those partners are being patient, but they will need to wait until further gov’t direction.

Kayla Lane Freeman @KaylaLane 17/27

Section C of the agenda, Larita Clark – “Emergency Contract for Walsh Construction Company”, funded by U.S. Army Corps of Engineer.

Clark explains this contract as the one that made construction of the Alternate Care Center at McCormick Place possible.

Kayla Lane Freeman @KaylaLane 18/27

U.S. ACE req that construction began on 3/28. MPEA received proposals from three firms, Power, Pepper and Walsh.

Chicago & IL Departments of Public Health as well as hospital officials, CPD & CFD all contributed expertise to the build out/design & will continue to advise.

Kayla Lane Freeman @KaylaLane 19/27

Overall scope included:
3000 beds (500 in Hall C, 1750 in Hall A for non-acture COVID19 patients, 750 acute COVID-19 patient beds in Hall B)

Contract went to Walsh for $65m

Motion, seconded & passed

Kayla Lane Freeman @KaylaLane 20/27

Clark (CEO) communicates to the board that the FY21 budget to be submitted reflects a “best case scenario” with events ramping up through the summer and returning to their pre-COVID frequency. She acknowledges that this budget may need to be modified “as this situation unfolds.”

Kayla Lane Freeman @KaylaLane 21/27

Since COVID19, McCormick Place has faced the cancellation or indefeinte postponement of 60 events, resulting in a loss of 467k attendees & 639k room nights, leading to estimated impact of $897m loss.

Kayla Lane Freeman @KaylaLane 22/27

MPEA (McCormick Place) FY21 projected op revenue $385m, loss of $4.2m

Assuming 75% of events will cancel in July 2020
& 50% of events will cancel in August 2020

The impact of the pandemic will emerge in the org’s FY21 numbers

Motion, seconded, passes

Kayla Lane Freeman @KaylaLane 23/27

Move to the Legal portion of the agenda, motion is seconded and passed for the terms of the McCormick Place service as an Alternate Care Facility:

As of June 30, 2020 the healthcare facility within McCormick will be dismantled, the space sanitized, and restored for event use.

Kayla Lane Freeman @KaylaLane 24/27

Trades section of the agenda, Staff looking for board approval to extend contract with Granger, one year extension not to exceed $1m

motion, seconded, passes

Kayla Lane Freeman @KaylaLane 25/27

MPEA Staff looking for board approval of 2-yr extension of contract with Black Dog Petroleum, not to exceed $300k

motion, seconded, passes

Kayla Lane Freeman @KaylaLane 26/27

Public Comment section:
- video from Shameeka Torry, 20+ yr employee of Hyatt, protesting the lack of training and employment protections for Hyatt service employees
- Larita Clark, MPEA CEO, states her commitment to work with SEIU Local 1 to resolve this workers’ right issue.

Kayla Lane Freeman @KaylaLane 27/27

No further public comment.

Chairman thanks board for participation in today’s meeting remotely, motions to adjourn the meeting.

Seconded, passes. Meeting adjourned 10:18 am

Agency Information

Chicago Metropolitan Pier and Exposition Authority

www.mpea.com

(312) 791-7500

See Documenters reporting

To promote, operate, and maintain fairs, expositions, meetings, and conventions in the Chicago metropolitan area and, in connection therewith, to construct, equip and maintain buildings for such purposes. The Authority is also responsible for the recreational, cultural, and commercial development of Navy Pier.

The MPEA posts detailed instructions and a link for accessing remote meetings held via videoconference here.

In-person meetings: Enter McCormick Place at 301 E. Cermak Rd. (southeast side of the intersection of Cermak and Prairie). The entrance has blue lettering over it that reads “MPEA Corporate Center.”

The Cermak-McCormick Place Green Line stop is four blocks to the west. If you drive, you may request a parking pass at the front desk for the purpose of attending the board meeting.

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