The Chicago Auto Show at the McCormick Place Convention Center in February. The bill passed by the Senate today imposes more flexible show-floor rules aimed at cutting exhibitors’ costs and aggravations. (Alex Garcia/Chicago Tribune)
By Kathy Bergen | SPRINGFIELD–McCormick Place, as trade shows have known it for the past
half-century, will have a very different environment under legislation
that the General Assembly sent to the governor today.
By a vote of 51-6, the Illinois Senate approved legislation passed by
the House yesterday that puts an interim czar at the helm, with marching
orders to privatize the management of the nation’s largest convention
center.
“This is really going to send a message that we will not lose any more shows, but will gain traction to gain more shows,” Senate Pres. John Cullerton, D-Chicago, said while introducing the bill.
The bill also imposes more flexible show-floor rules aimed at cutting exhibitors’ costs and aggravations — with the aim of restoring Chicago’s ability to compete with rival cities such as Las Vegas and Orlando. And it would provide debt restructuring and a four-year operating subsidy to the financially strapped state-city agency that runs the convention complex.
Gov. Pat Quinn will reserve comment until he can review the bill, a spokesman said Thursday.
The bill names Jim Reilly, the legislature’s chief adviser on McCormick Place, as trustee, with extensive decision making powers for an 18-month transition period.
The bill has encountered opposition from some of the trade unions that work the nation’s largest convention center. And observers say a legal challenge is possible.
But trade show managers were eager to see the transformation begin.
“If we could implement some of the changes for the National Restaurant Association’s show later this month, that would send a message that Chicago is serious and committed,” said Mary Pat Heftman, the association’s executive vice president/convention after the House approval on Thursday.
The annual restaurant show, a cornerstone of the city’s convention business, is awaiting final action in Springfield, before deciding whether to keep its show in Chicago for 2012 and beyond.
“If we could implement some of the changes for the National Restaurant Association’s show later this month, that would send a message that Chicago is serious and committed,” said Mary Pat Heftman, the association’s executive vice president/convention after the House approval on Thursday.
Give it a rest, Heftman. “Serious” and “committed” isn’t personified based on what’s laid out here and over the past several months? Your blackmail-type rhetoric is worn and putrid.
four-year operating subsidy to the financially strapped state-city agency that runs the convention complex.
Why are we subsidizing this? If they can’t operate with better business sense, then they deserve to fail. Also unions, quit complaining. You brought this on yourselves by being greedy and uncooperative.
If unions are complaining, the senate must be doing something right.
Mary Pat? Are you the same Mary Pat Heftman who, at the beginning of the put-in for the NRA, tells the Focus One electricians how great they are and how they’re the best show electricians in the industry?
You just put more profit in the contractors pocket. Freeman and GES are laughing all the way to the bank. The exhibitor wont see any savings passed on as long as these two contractors run the shows. Consessions have been made in the past and not once was it passed to the exhibitor.You take away a worker who makes $225.00 a day but you will pay Freeman $17,000.00 for drayage, pretty dumb, huh. The senate is full of old fools who know nothing about conventions.They cant even get their own budget strait but they are going to fix trade shows, right.They are willing to put hundreds of people out of work to make more profit. Just wait till the next election and we will see who is out of work
They are talking about exhibitor’s rights, but they are doing nothing to protect the exhibitors.
What is in the legislation that protects exhibitors from unpredictable and escalating charges, cost-shifting, energy surcharges, special handling, bundling, undisclosed third party payments, exorbitant mark ups on drayage and other services by Freeman, GES and other GSC’s while at McCormick Place?
Where is the transparency?
None of these proposals addresses 92% of exhibitor’s complaints.
Again, here is an exhibitor survey from Trade Show Week magazine.
http://www.tradeshowweek.com/article/CA6708531.html?q=McCormick
Let see how these proposals match up.
In your opinion, what is the single most inflated tradeshow cost?
Materials handling (drayage) – No change, Freeman and GES retain control.
50%
Exhibit space – No change, Freeman and GES retain control.
30%
Furniture rental – No change, Freeman and GES retain control.
7%
Electricity – Focus One is no longer exclusive electrical contractor.
4%
Telecommunications – Focus One is no longer exclusive electrical contractor.
4%
Exhibit transportation – No change, Freeman and GES retain control.
2%
Installation and dismantle – The bill allows exhibitors to set up their own booths, regardless of size.
2%
Booth decor – No change, Freeman and GES retain control.
2%
The failure to address these problems will not solve any of the exhibitor’s concerns.
Only Mr. Reilly’s past clients, GES and Freeman , and their trade associations will benefit from these proposals.
The exhibitor’s are the customer, NOT Freeman and GES, and this legislation completely ignore their concerns.
Is all of this to benefit the monopolies of Freeman and GES?
Is there anything in place to prevent David Causton from accepting a job with Freeman or GES after he takes his pension?
Is David Causton doing what Jim Reilly did, give Freeman and GES whatever they want while they work for McPier, so they can consult for Freeman and GES afterwards?
Is this why no one challenged the obviously fictitious HiMMS booth claim and the SPI-NPE Cost Comparison?
Is what is good for Freeman and GES, good for McPier, exhibitors and the people of Illinois?
Jim Reilly, a former consultant for both GES and Freeman is now in control of McPier for the next 18 months, with Czar powers.
Will he have McPier’s long-term interests in mind when he makes any decision?
Who will Jim Reilly and David Causton be consulting for, 18 months from now?
Freeman and GES charge exhibitors $17,000 for $200 worth of drayage labor at McCormick Place, and the legislative solution is to cut the labor cost.
The legislation installed a new 16-hour straight time window, which far exceeds Orlando’s 8-hour straight time window.
The citizens of the State of Illinois now must subsidize McCormick Place and its non-profit electrical services.
Twice a year, an audit of exhibitor rights will verify that these cost savings are passed on to the exhibitors.
This verifies that the $20 of labor savings will show up of the exhibitor’s bill.
So now, the drayage price can be $16,980 for $180 worth of drayage labor.
THIS LEGISLATION DID NOT TOUCH FREEMAN and GES PROFIT CENTERS.
The Trade Associations, which share in these enormous profits, cheered the legislation.
The exhibitors wanted transparency.
The exhibitors wanted price relief on materials handling (drayage), exhibit space costs, exhibit transportation, and booth décor.
There is nothing in the legislation that protects exhibitors from unpredictable and escalating charges, cost-shifting, energy surcharges, special handling, bundling, undisclosed third party payments, exorbitant mark ups on labor and other services by Freeman, GES and other GSC’s while at McCormick Place.
Freeman and GES have retained control and profit on all of these exhibitor costs.
The EXHIBITORS are the customer, not Freeman, GES or the Trade Associations.
The State of Illinois legislators need to go back and get it right.
Really???? It was the UNION that brought this on themselves? You are sooo ignorant! Do you really believe that the UNIONS make up the pricing for McCormick Place???? If you do, then you need to reevaluate yourself!
Idiot
The associations are just as guilty as Freeman and GES. Taking “freebies” in signage and banners and more, then letting their exhibitors pay the costs for these “freebies”.
No wonder they see a decline in exhibitors.
This legislation is typical Chicago corruption at it’s best.
The associations are just as guilty as Freeman and GES. Taking “freebies” in signage and banners and more, then letting their exhibitors pay the costs for these “freebies”.
No wonder they see a decline in exhibitors.
This legislation is typical Chicago corruption at it’s best.