Gov. Pat Quinn on May 9, 2010, at a Mother’s Day walk. Quinn told reporters today that he is still reluctant to sign the McCormick Place overhaul legislation. (Nancy Stone/Chicago Tribune)
By Kathy Bergen
| Gov. Pat Quinn took some oblique shots at political insider Jim Reilly
Monday as he explained why he remains undecided on whether to sign the
McCormick Place overhaul legislation.
The bill would name Reilly, currently the chairman of the Regional
Transportation Authority, as trustee with broad decision-making power
to oversee restructuring the Chicago convention center. Quinn said he
wanted to be sure the legislation had adequate checks and balances in
place.
“You’ve got to anticipate things that might go wrong, and really evaluate the performance of people at agencies in the past,” he told reporters during a question session that followed an unrelated press conference.
Asked if he had a specific issue with Reilly, Quinn said, “I just think anytime you have one person running anything, you’ve got to make sure you’ve got accountability.”
Still, the governor twice cited the scandal at commuter rail agency Metra, which is among several transit agencies overseen by the RTA. Federal authorities are probing the late Metra chief Phil Pagano’s receipt of $475,000 in unauthorized vacation pay.
In making his case for more oversight provisions in the McPier legislation, Quinn said Metra had been run by someone “who Metra thought and RTA felt was doing a good job.”
In response to Quinn’s remarks, Reilly stated in an email, “I totally respect the governor’s role as the last step in the constitutional process. I am confident that as he further studies the bill that he will become comfortable that there are adequate safeguards.”
Specifically, Reilly said, the board of the Metropolitan Pier and Exposition Authority, which owns and operates McCormick Place, would have the power to override the trustee. He also cited the audit provisions in existing MPEA law.
“Of course, I would be more than happy to discuss any other ideas that [Quinn] or his staff may have on this topic,” Reilly wrote. Reilly, an ally of House Speaker Michael Madigan, D-Chicago, is the chief adviser to the General Assembly on the McPier overhaul.
Quinn’s continued reluctance to sign the bill appears to be an about-face from last weekend, when sources close to the situation expected him to sign the legislation Monday and announce it at the National Restaurant Association show, which is under way at McCormick Place. The show closes Tuesday afternoon.
The governor said he would act quickly on the McPier legislation. But he declined to pinpoint a time.
Quinn also voiced concern that the legislation could lead to protracted legal challenges. Two of the major unions that work the show floor have raised the possibility of a lawsuit that would challenge the state’s right to impose work rules on trades people whose collective bargaining agreements with private employers are federally protected.
The governor did not offer any specifics when asked how the legislation could be changed to avoid the potential for such litigation.
The legislation’s naming of Reilly, a former head of the agency that runs McCormick Place, has been controversial.
Unions have objected to the fact that Reilly consulted for two major trade-show contractors — Freeman and GES — during contract talks with unions at McCormick Place.
Reilly has said the consulting ended a year and a half ago and poses no conflict of interest.
Reilly also went head-to-head with the convention hall labor unions in 1997 over proposed work rule changes, and while the unions won that legislative battle, some unions foresee a contentious relationship.
Reilly earlier rejected any suggestion that unions would not get a fair shake, saying, “The ones I’ve dealt with over the years know in their heart of hearts that’s not true.”
For over a year, Gov. Quinn had ample time to remove Juan Ochoa as CEO of MPEA and place a professional into the position. Not only did he allow business as usual to the tune of 58 patronage individuals earning over $100,000 and a loss of $34 Million, but he also has suspiciously remained silent on the mismanagement of MPEA.
He has eyes and ears. There have been multiple articles by the Tribune and other publications regarding wired deals (overpayment on cleaning contract to the tune of $20 Million), MPEA computer equipment identified in an asset audit as missing from the Authority and found at employee’s homes, improprieties on the part of MPEA board members that resulted in the State House voting 112 to ZERO. This rarely happens and shows the seriousness of legislators on both sides of the aisle to cleanup the management mess.
Let the good Jim Reilly (not the corrupt James V. Riley, previously on the Board currently involved in a bid rigging federal suit in Atlanta) provide leadership and expertise to protect the assets and monies of Illinois taxpayers.
He could certainly do no worse than the corrupt administration that is departing. Juan Ochoa. Gone. Savings=$195,000. Renee Benjamin. Gone. Savings $190,000. Ellen Barry (CIO). Gone. Savings $142,000. Skinny Sheahan, Degnan and the rest of the thieve. Gone! The list is endless. All state workers. All accountable to Gov. Quinn. Never once has he issued a press release or held a press conference to remove these individuals. The silence is deafening.
Gov. Quinn, sign the legislation now and let’s move forward with making MPEA a proper business institution.If you have any reservations on management, simply advise Jim Reilly. I am sure that he will be sensitive to your advice…especially if it is in the best interest of Illinois.
Bravo Gov! He realizes that this proposed legislation has nothing to do with lowering costs for the exhibitors and everything to do with helping Freeman, GES and their good friend Reilly.
His fake concern, now that the Election is just around the corner, is so obvious it’s sickening!!! Vote him OUT in November!!!!
The more things change the more things stay the same…the gov in the pocket of the unions, putting personal gain before the good and welfare of the state, the city and the economy. Look forward to more shows in Orlando and Vegas and continued decline in Chicago.
Gov. Quinn.. How many UNIONS are paying you off not to sign the bill. Unions have held Chicago hostage to long and have paid a lot of money.. You must sign this bill to show that you have “BALLS” and that you can stand up to the UNIONS.
This is such a stupid comment, stop pretending you know anything about what’s going on.
The Governor hasn’t done one damn thing, not one. He has an economy floundering, debt up to his arse and now is about to let the trade show industry buckle and die over politics. Keep giving people a reason not to vote for you Mr. Quinn.
Moron.
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 work for Freeman and GES afterwards as a consultant?
Is this why no one challenged the obviously fictitious HiMSS booth claim, the SPI-NPE Cost Comparison and Ms. Heftman’s testimony?
They are all talking about exhibitor’s rights, but they are doing nothing to protect the exhibitors.
What is in this 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 90% 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 to address the exhibitor’s complaints.
In your opinion, what is the single most inflated tradeshow cost?
Materials handling (drayage) – No change, Freeman and GES retain control and profits.
50%
Exhibit space – No change, Freeman and GES retain control and profits.
30%
Furniture rental – No change, Freeman and GES retain control and profits.
7%
Electricity – Focus One is no longer the exclusive electrical contractor, the prices are reduced to cost.
4%
Telecommunications – Focus One is no longer the exclusive electrical contractor,the prices are reduced to cost.
4%
Exhibit transportation – No change, Freeman and GES retain control and profits.
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 and profits.
2%
Catering – Trade shows to bring in their own food and beverages.
0%
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 this legislation.
The exhibitor’s are the customer, NOT Freeman and GES, and this legislation completely ignores the exhibitor’s concerns.
Why is there no competition on drayage?
What about exhibit space rate disclosures?
Where is the competition on furniture rentals?
All of these items are directly controlled and profited on, by Freeman and GES and will continue under Mr. Reilly’s guidance.
Jim Reilly’s past clients are GES and Freeman Co. and we are to believe there is “absolutely no” conflict of interest?
Are things changing at McCormick Place for the exhibitors?
This story says NO! GES and Freeman are still gouging the exhibitors.
Restaurant exhibitors eager for change
Hauling some of their own supplies onto show floor appeals to many.
http://www.chicagotribune.com/business/ct-biz-0522-restaurant-show-20100521,0,979688,full.story
- Lorrie Baumann, editorial director for Oser Communications Group, a Tucson, Ariz.-based restaurant trade magazine publisher, said she paid $10,000 last year just to get materials moved from the loading docks to her booth, and back out afterward.
Lorrie Baumann paid GES and the NRA $10,000 last year for what cost GES and the NRA less than $100.
Why does GES and the NRA charge so much for material handling (drayage)?
The NRA is charging $28.50 per square foot for this show, plus drayage.
Pack-Expo will be here in November, they are charging $24.50 per square foot and drayage is included.
Lorrie Baumann would be paying $4.00 less per square foot at the Pack-Expo Show and NOT pay an extra $10,000 for drayage.
It is the same labor, the same work rules, the same convention center, yet this one small booth is charged over $10,000 more at the NRA Show.
Multiply that $10,000 by the hundreds of booths at the NRA Show.
Where are all those profits going?
How can Mary Pat Heftman explain this to her exhibitors?
Does this explain why the Pack-Expo Show is growing in size and attendance while the NRA Show is in decline?
This legislation completely ignores Lorrie Baumann and the other exhibitors.
Lorrie Baumann is the customer, NOT GES and The National Restaurant Show.
The legislators need to go back and get it right.
- Rich Ferrara and Bruno Marsal were hoping to skirt the rules and wheel their own containers of cheese and dough onto the show floor Friday at McCormick Place.
But the pizza-oven purveyors, who were setting up their booth for the National Restaurant Association show opening Saturday, anticipated getting some flack from union representatives.
Union Representatives?
I would bet these people are representing the interests of GES and the NRA, not the union.
Would Rich Ferrara and Bruno Marsal try to skirt the GES and NRA rules, if drayage was included with their floor space rental at $4.00 less, per square foot, than what GES and the NRA is charging them?
Why is GES and the NRA charging so much more than the Pack-Expo Show?
It is the same labor, the same work rules, the same convention center.
Do you think anyone will try to skirt the rules at the Pack-Expo Show, where drayage is included with the floor space, at $4.00 less, per square foot, than the NRA Show?
The legislators need to go back and get it right.
- Another veteran exhibitor said his main beef centered on what show organizers charge for such items as floor space and admissions badges, and he questioned whether the legislation would tackle that.
The rates keep going up; they never go down, said Michael Cornelis, a vice president of Demarle, a New Jersey firm that sells Silpat baking mats.
No, Michael the legislation ignored that and 90% of the other exhibitor complaints.
But hey, if you do not want to pay the inordinate drayage mark-ups of GES and the NRA, next year you will able to lug all those baking mats in by yourself.
This legislation completely ignores Michael Cornelis and the other exhibitors.
Michael Cornelis is the customer, NOT GES and The National Restaurant Show.
The legislators need to go back and get it right.
Actually John, I have to agree with Jim W.
Just look at these facts.
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.
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.
Is this really reform?
The legislation installed a new 16-hour straight time window, which far exceeds Orlando’s 8-hour straight time window.
Is the real answer, cutting labor costs and ignoring the inordinate mark-ups and gouging of the exhibitors?
The EXHIBITORS are the customers.
90% of exhibitor complaints are ignored in this legislation.
WHY DOES THIS LEGISLATION NOT TOUCH FREEMAN and GES PROFIT CENTERS?
Who was the Special Advisor who helped the legislators write this amendment?
The Special Advisor is the former Freeman and GES consultant,
Jim Reilly.
The NRA is trying to pull a fast one. I haved worked the Resturant show for the last 12 years. Each year there has been a decline of exhibitors.This year again less exhibitors.Ms Heftman is not making what she use to, charging for floor space AND shipping back and forth to the booth, so she gets the city to sign on for less labor and consessinos and she will put more funds in her pocket. Seems like she is in an awful hurry to get this bill signed. Vegas lost 402 shows and meetings in the last year.Read the LAS VEGAS SUN ARCHIVES section. Orlando Has lost 114 Check Orlando web sights. One paragraph stated IF YOUR GOING TO HAVE A SHOW IN ORLANDO YOU HAVR BETTER HAD A GOOD YEAR AND IF YOU GO TO VEGAS YOU HAVE BETTER HAD A GREAT YEAR. Things are not so good in their convention buisness either. Sure seems she is in a real hurry to get this bill signed.
Look at Ms. Heftman’s testimony at the legislative hearings and follow-up on a Chicago Tribune Blog.
“Contracting for electrical service at Orlando’s convention facilities costs 40 percent less than in Chicago, said Mary Pat Heftman of the restaurant association: “I can’t explain that 40 percent differential to my exhibitors. Exhibitors in other cities can drive up to the dock and unload equipment themselves. Not in Chicago.”
“In response to notes and information posted on Saturday, April 3, I would like to provide some clarification.”
“I was using a specific example of an actual exhibitor who will be exhibiting in Orlando in April 2010 and the May 2010 NRA Show at Chicago’s McCormick Place.”
“During my legislative hearing testimony on April 1st, I cited a comparison of the cost of a specific electrical service that this exhibitor will be purchasing from Focus One at NRA Show 2010 (120v 15 amp) and compared that rate to the one they are getting in April 2010 in Orlando according to the published rates for electrical services at both shows. The service cost is 40% more in Chicago than Orlando and the Orlando rate includes labor but the Chicago does not, further increasing the cost differential.”
Posted by: Mary Pat Heftman | Wednesday, April 07, 2010 at 11:04 AM
Ms. Heftman testified labor is not included in Chicago’s price, yet Chicago’s Focus One price sheet clearly states labor is included in the price.
The OCCC service is for a single 120v 1500w service. Extension cords and multi-outlets are an extra $24.00 each, and branching is specifically not included.
The Focus One service is for a multiple (one circuit in multiple locations) 120v 1500w service. Extension cords which are needed for branching are included, multi-outlets are included and an hour of electrical labor, for the floor layout, or branching of the circuit, and tear out is included.
The $60 difference in OCCC pricing quickly disappears with the additions of just one extension cord and one multi-outlet. The stagehand labor required to branch power or an additional cord would definitely give McCormick Place the price advantage.
Ms. Heftman’s characterization of Focus One’s pricing as being 40% more than Orlando’s is completely false.
Ms. Heftman is a veteran trade show manager and she is well paid to know the differences between Chicago and Orlando.
It is interesting that Ms. Heftman chose to clarify her testimony using this specific service. If her exhibitor chose the 120v 500w service with one extension cord the cost would be $140 in the OCCC versus only $89.00 in McCormick Place.
Do you think she would have then testified, that Orlando’s prices were over 57% more than McCormick Place’s?
How can the National Restaurant Association charge $28.50 per square foot for its show, when Pack-Expo is only charging $24.50 and including drayage?
This pricing is costing at least one small booth over $10,000 more than the Pack-Expo Show pricing.
It is the same convention center, the same work rules and the same labor, with only two differences.
GES and Ms. Heftman are not involved in the Pack-Expo Show.
Funny how this bill is about labor and 16 hr. straight time rates. New York has 8 hr. straight time rates. But that’s what sells the Tribune! The truth of the matter is GES and Freeman could care less about the labor rates. It’s obvious they make very little money on labor. They do however”gouge the exhibitors on drayage”! FYI, New York’s drayage is $210.00/cwt. That’s more than Chicago. Their labor rate is $2.00/hr plus, over Chicago’s labor rates. At this NRA, my neighboring exhibitor said they can’t afford the drayage. They will pay the labor because they know what they are getting and it is spelled out in their invoice. It’s the sneaky hidden charges that Freeman & GES don’t have the guts to own up to. And God forbid, you should have to wait for an electrician to do a “good job in a timely manner?” It’s likely that’ll never change, but the old guard will….to the older guard!
it’s real simple, NRA and Ms HEFTMAN are ripping off their own exhibitors charging for floor space and drayage.Pac Expo doesn’t charge for drayage, it is included in the floor space price, really a good swindle dont you think?
How about the payoffs from GES & Freeman? They are the ones who hold the exhibitors hostage! Maybe you should be the first to know GES & Freeman could care less about the Union Labor, they make their money on drayage and last minute charges. It’s funny how they seem to have no record of the pre-show order when the exhibitor wants to know why their services aren’t completed…..Focus One? So they gladly make the client pay with a credit card for as much as three times the pre-show pricing for the same work they already paid for. Maybe you should be an exhibitor and see who is making out like bandits, and it’s the same in every city for both of these thieving contractors.
“SWINDLE” that’s what Freeman should change their name to!
ShowWhat have you seen this article on Exhibiting Transparency?
http://www.tradeshowlogistics.com/images/ConveneSept08_CSTrans.pdf
How do you feel that 90% of exhibitor complaints are not addressed in this amendment?
How much did the NRA and GES charge you for drayage at McCormick Place?
I guarantee the UNIONS are squeezing/extorting gov. quinn right now ! ! ! What unions have been doing to people is nothing short of LEGALIZED EXTORTION ! Unless they are like my union and the relationship between the companies and union is so cozy that you can’t help but think COLLUSION to manipulate a whole market and dictate/discriminate manpower! While the government does NOTHING ! ! ! Why, because the politicians are benefitting from this QUID PRO QUO system that has been in place since the who knows when. If they get out of line they threaten them with withholding campaign contributions and other extortive tactics!
@ Crook County
You want the Governor to sign this bill which does nothing to protect exhibitors from being gouged by Freeman and GES?
How can you justify Freeman charging $17,000 for less than $200 worth of labor?
As far as the audit provision in this amendment, McCormick Place has had this ability since 2005.
This article is from May 5, 2005 in Trade Show Executive magazine.
It is a story on sweeping changes at McCormick Place.
http://www.tradeshowexecutive.com/TheVault_main.asp?id=180
Note the Not a Paper Tiger section.
Not a Paper Tiger
The new agreement also establishes a formalized auditing process to review bills submitted by the service contractors to show organizers. An auditor will review the invoices sent by contractors after the show and the findings will be shared with members of the Labor Management Council. Individual exhibitors may file formal complaints. A penalty may be assessed if a contractor fails to pass on the savings. Davis says, The auditing process serves as a guarantee that these changes will exist not only on paper but in practice.
Should we believe it this time?
The fact that exhibitors are currently charged $17,000 for $200 worth of labor tells me not to believe it.
By the way, Freeman charging $16,980 for $180 worth of labor passes on the new “savings”.
Meet the new boss, same as the old boss, …