0811.5234 CBE[0911]32_web

Chicagoland

&

Buildings Environments AU T U M N 2 0 1 1

Charged Up About Green Cars Features Green Exchange to be Convergence Point for Green Business Income Taxes for Commercial Condominium Associations...

Are They the Same as Commercial Rental Properties Emerald Ash Borer Costs are Staggering The Weather and Your Landscape Aqua at Lakeshore Provides EV Charging Stations Reduce, Reroof, Recycle: Finding a Second Life for Asphalt Shingling

Testimonial “A statement in support of a particular truth, fact, or claim”

For further information, please visit www.sudlerpropertymanagement.com.

Click on “TESTIMONIALS”.

We Promise. We Deliver.

Property Management Company of the Year, time after time! o www.sudlerpropertymanagement.com o 312.751.0900 Condominiums

o

Cooperatives

o

Townhomes

o

Homeowner Associations

table of contents 02 Charged Up About Green Cars

by Pamela Dittmer McKuen

Your Complete Asphalt and Concrete Paving Contractor Concrete & Asphalt Paving Drainage Systems & Sewer Repairs

Pavers & Color Stamping Sealcoating, Crack Filling & Striping

708-544-6700 | 630-279-0303 | www.fmjasphalt.com

06 Green Exchange to be Convergence Point for Green Business

by Michael C. Davids 10 Income Taxes for Commercial Condominium Associations...

Are They The Same as Commercial Rental Properties?

by Steven Silberman 12 Emerald Ash Borer Costs are Staggering

By James Fizzell 14 Editor's Message 15 Directory Advertising 19 The Weather and Your Landscape

By James Fizzell 21 MCD Golf Invitational 22 Industry Happenings 24 Aqua at Lakeshore Provides EV Charging Stations 26 CondoLifestyles State-of-the-Industry Seminar 27 Reduce, Reroof, Recycle: Finding a Second Life for Asphalt Shingling

by Matt Baker

www.alanhorticultural.com

REUSE~REDUCE~RECYCLE

630-739-0205

847-364-9899

SOUTH

NORTH

1409 Joliet Road, Lemont, Illinois 60439 info@alanhorticultural.com

autumn 2011

ChiCagoland BuildingS & environmentS

01

BuilDings & environments

B y Pa m e l a D i t t m e r m c K u e n

Charged Up About Green Cars E it’s like the old chicken and egg question: Which comes first—the electric vehicles or the charging stations? obviously, neither one can function without the other.

Vs, as they are commonly known, are a resounding response to soaring gasoline prices and calls for greater environmental stewardship—and they are on their way to the Chicago area. The all-electric Nissan Leaf and the battery-gasoline powered Chevrolet Volt will soon appear at local car dealerships. Pre-orders are being taken. The federal government has set a target of at least 1 million EVs in service nationwide by 2015.

Just like cell phones, EVs must frequently be charged to keep them running.

The Leaf, for example, has a 100-mile or so range, depending on weather and driving conditions. The Volt travels on battery juice for only 25 to 50 miles before the gasoline engine kicks in to generate enough electricity for 300 more miles.

Then it’s time to plug in.

As for the chicken and egg analogy— in these parts, it’s the charging stations that are putting out the welcome mat.

THREE LEVELS OF CHARGING EVs power up at on-street chargers in Nice, France, where author Pamela Dittmer McKuen and her husband Arnold Shifrin vacationed this summer. Photos by Arnold Shifrin.

Current technology provides charging stations at three levels of speed and price point. The faster the charge, the more expensive the equipment to produce it.

Here’s a quick overview: Level 1 is the standard, ubiquitous 110-volt household outlet. Simply plug the cord from the car into the wall outlet and wait a long time. a full charge takes between 8 and 20 hours. level 1 charging is sometimes called a “trickle charge” because it is the slowest.

Level 2 requires a dedicated 240-volt outlet as well as a breadbox-size docking device. Charging is complete in 3 to 8 hours.

Service, installation & design for all your hvaC & Process Systems ~ Including ~ HVAC SERVICES • CONTROLS • PIPING • ENERGY SAVING SOLUTIONS PREVENTIVE MAINTENANCE • FIRE PROTECTION • BACKFLOW PREVENTER CERTIFICATION BOILERS • CHILLERS • PUMPS • REFRIGERATION

24/7 EMERGENCY SERVICE 847-229-7600

www.emcortmi.com

02 C h i C a g o l a n d B u i l d i n g S & e n v i r o n m e n t S

Level 3 is the commercial-grade fast-charger. it requires 480 volts of current and a docking device that stands roughly the size of a Chicago streetparking paybox. Charging takes about 30 minutes.

The cost varies, depending on the model, installation and location. Level 2 charging stations can run between $2,000 and $5,000. Level 3 charging stations can run between $50,000 and $100,000. Building permits and professional installation are usually mandatory as is coordination with the local utility provider. Older buildings might need system upgrades to handle the additional load. Federal tax credits

autumn 2011

cover story

and “green” development grants may be available to offset some of the investment.

Over time, those prices will come down as demand increases, predicts electric-vehicle activist Paul Scott, co-founder of Plug In America, a nonprofit EV advocacy group based in San Francisco, Calif.

“The cost might be prohibitive now, especially if you have to cut into concrete or asphalt,” he said. “But if the price of gas goes to $6 a gallon, and it will, those decisions might change. All of a sudden, a $5,000 cost might seem reasonable.”

CHARGING STATIONS IN CHICAGO Chicagoans increasingly are finding places to charge up, including several local tollway oases and O’Hare and Midway international airports. Earlier this year the City of Chicago awarded San Diego, Calif.based 350 Green LLC a $1.9 million contract to design, build and operate a network of 280 EV charging stations throughout the metropolitan area. The project is one of the first and largest of its kind in the country. It includes 73 Level 3

autumn 2011

charging stations and 207 Level 2 charging stations.

Privately owned projects are in the works as well. Chicago-based Carbon Day Automotive has installed 150 charging stations throughout the area and plans to put in another 350 by year end. Deerfieldbased Walgreens drugstore chain announced this summer plans to install 800 charging stations across the country, 30 in the Chicago area. Several have been completed.

It’s one thing for EV owners to charge up while they are at the office all day or out running errands. It’s another to charge at home, which is where industry experts predict 80 percent of all charging will take place. Single-family and townhome owners with private garages will charge there, either at Level 1 or Level 2, depending on their budgets. Apartment building owners will decide whether to provide chargers for tenants. The decisions aren’t as simple for condominium associations, whose owners are sure to demand the convenience of home-charging.

EV CHARGERS IN CONDOS “We are going to see more and more demand for electric cars, particularly as the government creates more incentives and the cost of energy continues to go up,” said Joseph Armenio, president of Chicago-based Sudler Property Management’s building services division. “The question every board will face is: What do its owners need and how can it best be provided? As management companies, we need to bring to our boards solid, practical methods and means of accommodating these people.”

Foremost on the mind of association attorney David Sugar of Arnstein & Lehr in Chicago is the question of who will pay for the infrastructure costs and ongoing maintenance? Condo boards are allowed and required to spend money to maintain, repair and replace existing building elements, he explained. However, boards usually have a limit on how much they can spend developing new elements without getting unit owner approval.

Sugar continued: Supposing the ma-

ChiCagoland BuildingS & environmentS

03

BuilDings & environments

| INSTALLATION EXPERTS | WATER MANAGEMENT SOLUTIONS

333 S. East Avenue Oak Park, Illinois

The Portals Chicago, Illinois

222 Main Evanston, Illinois

jority of an association wants the chargers and is willing to pay for them, the next concern is where to put them? In many garages, it’s already a tight squeeze. In the simplest cases, individual owners may be able to wire and meter their own chargers in their own parking spaces. That’s probably the minority.

“The problem is more pointed in associations with deeded parking spaces, where the unit owner buys the right to park in a specific rectangle,” he said. “That rectangle may be near a charging station or it may not be. It’s one thing to be mobility-impaired and say, ‘I need a deeded space near the door.’ It’s another to say, ‘I need to be near the charging station.’”

For reasons of safety, running multiple extension cords is impractical, he added.

Armenio said valet garages have an advantage because associations control the space, and attendants can move vehicles as needed. Attendants could conceivably run the charging stations and generate income for the association.

Energy analyst Marshall Shifrin of Mid-Western Energy Consultants in Northbrook lays out additional concerns for associations that own and run charging stations: Making sure customers pay for not only the electricity they consume but also a reserve amount for future upgrades and replacements of equipment; making sure the association can pass along utility rate increases; and whether utility companies will permit associations to make a profit by re-selling electricity.

Liability is another issue, he said. Both EVs and chargers can be damaged by malfunctions and utility overloads that are not severed by a circuit breaker. He advises associations to add specific insurance coverage riders that address these scenarios to their umbrella policies and require “hold harmless” agreements with owners in event of damage to the EV. And then there’s the etiquette of it all. Should visitors be permitted to charge up? Should an owner who is late for his reservation time and thereby delays everyone else be fined?

“There are many unanswered questions about electric charging stations within condominium and rental buildings and also with public gas stations and future free-standing charging stations,” said Shifrin. “I’m sure that they will all be resolved, both practically and legally, after the initial bugs, glitches and tweakings are removed.”

INTERIORS | EXTERIORS Serving Chicagoland Since 1969 www.woodlandwindows.com 630.529.DOOR (7445) Ext. 272

04 C h i C a g o l a n d B u i l d i n g S & e n v i r o n m e n t S

autumn 2011

cover story

▼ Shown here is the electric car charging station at the Walgreens located in Oak Park, IL.

THE LEGISLATIVE APPROACH Even though the current number of EVs is low, California lawmakers this summer took a pro-active approach to encourage their usage and to insure that owners have access to the power they need. They passed legislation, SB902, to bar common interest developments (CID) from prohibiting or restricting installation and use of charging stations. Furthermore, the legislation overrides any CID governing documents that do. The law, which goes into effect January 1, 2012, includes condominiums, stock cooperatives, planned unit developments and many resident-owned mobile-home parks. The State of Hawaii has enacted similar legislation.

Among the provisions of the California statute: • Allows the CID may make reasonable restrictions that do not significantly increase the cost of the charging station or decrease its efficiency; • Allows the CID to approve the installation of the charging station but must approve or deny within 60 days unless

the delay is the result of a reasonable request for additional information; • Requires the charging station to meet state and local building and safety standards. In addition, if the charging station is to be located in a common area or an exclusive-use common area, the homeowner must agree in writing to comply with the CID’s design specifications, engage a licensed contractor, and provide a certificate of insurance that names the CID as an additional

insured on the homeowner’s insurance policy. Homeowners also are responsible for the cost of electricity they consume and for maintaining and repairing their charging stations.

Whether or not such legislation will be passed in Illinois remains to be seen.

Meanwhile, there is plenty more work to do before EVs will become a viable alternative. $

Quality Craft, inc.

Proudly Serving the Property Management Community for Over 30 Years

• 24/7 • Fire and Smoke • Water • Storm • Reconstruction • Remodeling

E.R.

((

( P )))

Call to learn more about QCi’s Early Response Program and Disaster Planning Assistance

866.832.6724 autumn 2011

ChiCagoland BuildingS & environmentS

05

BuilDings & environments

By m i c h a e l c . D av i D s

Green Exchange To Be Convergence Point for Green Business the building that will house green exchange, planned to be the country’s largest sustainable business community, has both an intriguing future and an interesting past.

I

t seems highly unlikely that 95 years ago, when the Vassar Swiss Underwear company first erected this building that they would have been able to imagine its future incarnation as a state of the art LEED Platinum center for green commerce. For most of the 20th century, the building owners had underwear or lamps, not eco-fare on their minds.

According to David Baum and the Green Exchange web site, the Vassar Swiss Underwear Company, specializing in

“union suits for gentlemen” was the first company to occupy the building at 2545 West Diversey. The company secured its building permit in September 1913 for $325,000 to build “the finest knitting mill in the world”. They created a four-story building with a total of four acres of floor space featuring an illuminated clock tower that rose four stories from the roof. The mill had its own power plant, an area for coal storage, laboratories and a garage for the company trucks. The almost 1,000 employees benefited from the on-site restau-

rant, reading rooms and restrooms.

In 1924, the company expanded its headquarters and added on a three-story addition to the building, completing the distinctive U-shape of the current structure. For the next 43 years, the Vassar Swiss Underwear Company continued to produce undergarments expanding their niche from union suits to men’s briefs and finally, after a merger with the Munsingwear company in the 1950’s, they produced only girdles and bras. Vassar remained in the building until 1967, when Munsingwear relocated to Texas and the building was sold to another company, Frederick Cooper Lamps, a wellknown manufacturer of “elegant lamps.”

Kingsbury Clean, Chicago’s premiere GREEN JANITORIAL COMPANY, provides thorough sanitizing services and offers a complete line of high quality bathroom products’ making Kingsbury Clean

“THE one-stop green care SOLUTION!”

» Comprehensive janitorial services for office buildings, commercial and industrial establishments and residential buildings

» Wall and floor/grout restoration

» Wall, Floor, Tile and Grout restoration and cleaning » Floor stripping, waxing, polishing

» Window cleaning » Trash removal

» Power Washing » And More...

Call Kingsbury Clean NOW for your FREE, NO-OBLIGATION quote or facility consultation.

847-768-1200 06 C h i C a g o l a n d B u i l d i n g S & e n v i r o n m e n t S

Jed Levenstein

David Melone

JLevenstein@kingsburyclean.com

DMelone@kingsburyclean.com

W W W. K I N G S B U R YC L E A N . C O M autumn 2011

s P e c i a l f e at u r e

Frederick Cooper Lamps Frederick Cooper was an artist who created distinctive, architecturally-inspired lamps by mixing brass, fabric, glass and wood. His designs were embraced and his business flourished in Chicago where his factory remained for more than 35 years at 2545 West Diversey. The company name was proudly featured on the building’s clock tower and the identifying phrase “Lamps of Elegance” became a wellknown sight to many Chicagoans as they passed by the factory while driving down the Kennedy Expressway. While the lamps are still being sold today, the rising costs of labor and the opportunities for overseas manufacturing eventually caused the closing of the Cooper Lamp Factory in 2005

Baum Development Enter David and Douglas Baum, founders of Baum Development, LLC, a company recognized for its expertise in adaptive reuse and acclaimed for its preservation of historic landmarks. When the brothers purchased the landmark building they knew they wanted to develop it with a triple bottom line approach that would not only provide a financial return but also give back to the community and promote environmental sustainability.

Bursak & Flores The stars aligned when Barry Bursak, a long-time proponent of bringing green options to the marketplace and Manuel Flores, a Chicago alderman, approached the Baum brothers with a unique idea. Bursak was looking for a home for his sustainable furniture company and when he toured the vacant factory on Diversey Avenue he was inspired to dream big. Why not create a green cooperative, an entirely green business community housed in a green building to serve the needs of a burgeoning green customer base in the Chicago area?

Alderman Manny Flores embraced the idea, as it addresses the concerns of his constituents. The community was clamoring for the new development to bolster the local economy and provide new jobs to replace those lost when the factory was shut down.

It was not long before the Green Exchange concept was revealed, earning an enthusiastic response from green business leaders to Chicago’s Mayor at that time,

autumn 2011

Richard M. Daley, whose goal was to make Chicago one of the most environmentally friendly cities in the nation.

Green Tenants Green Exchange is now underway and is planned to be a convergence point for Chicago’s expanding green community. Among the first tenants are Coyote Logistics, 2 Point Perspective, Greenhouse Loft, Mindful Metropolis, Consolidated Printing, The Centre for Sustainability and Excellence, Conscious Planet Media, Distant Village Packaging, Evergeen Oak Electric/Crest Lighting Studios, GreenChoice Bank, Local First Chicago, Pivotal Production, Pure Labels, Renewable Resources, Sustainability Consultants, Inc. and YRG Sustainability Consultants. The 272,000 square foot concrete loft building hopes to house as many as 100 or more tenants when it’s at capacity and completed.

Mayor Emanuel Supports Green Exchange On May 19th, Mayor Rahm Emanuel, only three days into his term as Mayor of Chicago, held an official press conference at Green Exchange.

After being introduced by Green Exchange co-developer David Baum, Mayor

Emanuel highlighted Green Exchange as an exemplary public private partnership in which municipal financial resources were effectively utilized to create over 1,000 new jobs, spur economic development in the community, and advance sustainable practices.

Hosting Mayor Emanuel is another illustration of the support that Green Exchange has garnered from the community and the city of Chicago.

GreenChoice Bank Opens at Green Exchange GreenChoice Bank’s executive management team opened its flagship location in Chicago at the Green Exchange building on August 29 of this year. The bank is anticipated to be the first LEED Platinum community bank location in the Midwest, and one of only a few in the country.

ChiCagoland BuildingS & environmentS

07

Photos courtesy of GreenChoice Bank

Photos courtesy of GreenChoice Bank

BuilDings & environments

The newly constructed location will meet Leadership in Energy and Environmental Design (LEED) Platinum standards for Commercial Interiors. The bank’s management team – half are LEED Accredited Professionals – has considerable experience when it comes to building sustainable structures and interiors.

In addition to making loans to qualified businesses that build sustainably, the team retrofitted GreenChoice Bank’s two, century-old branch locations to environmentally-sound standards for LEED® for Existing Buildings: Operations & Maintenance (LEED-EB: O&M) certification.

Those were dedicated earlier this year, launching the GreenChoice Bank brand in Cicero and Lockport, Ill. GreenChoice Bank is one of the first tenants to move into Green Exchange.

The four-story, converted historic building is marked by its iconic signature tower along Chicago’s Kennedy. GreenChoice Bank’s entrance is along Diversey Avenue, just west of Maplewood.

Special Banking Programs for Sustainable Businesses.

“GreenChoice Bank’s Green Exchange location is yet another example of our commitment to, and expertise in, operating in green-built locations,” said Steve Sherman, LEED AP, GreenChoice Bank’s chief operating officer and director. “We believe in working in more sustainablybuilt buildings that are healthier places to do business, and that have a lower impact on the environment. Our track record shows that it can be done, regardless of whether you build a location from scratch

08 C h i C a g o l a n d B u i l d i n g S & e n v i r o n m e n t S

or re-engineer an existing building. That gives us unique experience when understanding the challenges that other businesses and individuals may be going through to conduct business sustainably. ” As part of its mission, GreenChoice Bank, a certified B Corporation, leverages funds on deposit to invest in the local and sustainable economy. Special checking and savings accounts with higher rates are designed for those actively embracing sustainability through their account activity. Advantaged terms are offered to commercial clients that manage green businesses, build sustainably and create green collar jobs.

Operations Conserve Energy The footprint of the bank’s new flagship facility is purposefully small, at only 3,800 square feet. Unique features resemble GreenChoice Bank’s existing branch location interiors. These include reclaimed wood for key design elements of the space, re-used and re-purposed materials, nonVOC paints, high-efficiency lighting, and locally-sourced recycled content materials in countertops, wall systems and flooring.

Signage alerts customers to sustainable features throughout the bank.

Back-office operations conserve energy and reduce the bank’s environmental footprint through paperless processes, electronic document distribution, image-based check processing, online banking and estatements. Debit cards are made from 100 percent recycled plastic. Employee policies encourage sustainable choices, from using public transportation and volunteering in the community to rewarding those who purchase hybrid or other Low Emission Fuel Efficient vehicles. $

autumn 2011

s P e c i a l f e at u r e

Green Exchange wants to be much more than just a building. it is a synergistic community of green businesses that plans to not only generate exponential exposure for each common tenant but also provide access to a broad and receptive network of like-minded businesses and eco-conscious consumers.

Building Features:

» State of the art green roof

» large loft-like common foyer to welcome visitors

» high efficiency heating and cooling system that will reduce building energy use by 22%

» 8,000 SF organic sky garden where tenants and visitors can meet, mix and mingle » on-site restaurant adjacent to the sky garden » expansive meeting/event space available to tenants and the general public

» 41,329 gallon rain cistern allowing storm water to be recaptured and used for irrigation and water features » low toxin (voC) building paint and stains used throughout to provide clean indoor air quality » indoor air quality is monitored and controlled on all five floors with high efficiency filters and air quality sensors

» on-site catering services » on-site parking

» energy efficient windows that will bathe the building in natural light and help keep the temperature comfortable all year round

» Car-sharing service » green Features:

Total Cleaning and Restoration Professionals • Garbage Chute Cleaning • Carpet, Upholstery & Drapery Cleaning • Photo inventory, moving disposal or storage related to evictions

• Fire & Flood Restoration • Mold Remediation • Infrared Camera Inspections • HVAC, Exhaust and Dryer system cleaning

• Free Manager Training Seminars on Site:

Fire & Water Damage; Mitigating the Loss, Disaster Planning, Mold Remediation and IAQ

» green escalator that incorporates occupancy sensors and varying speeds – using 30% less energy than a traditional escalator » State of the art recycling system with site sorting on all five floors location advantages: » visible to over 350,000 people every day » Situated at a full-service interchange fronting i-90/94 » access to major Chicago streets and public transportation » located 10 minutes north of the Chicago loop

How do you increase your property values while saving money?

CODER TAYLOR ASSOCIATES. INC. LICENSED ARCHITECTS & ENGINEERS CODER TAYLOR ASSOCIATES, INC.

337 W. MAIN ST. BARRINGTON ILIINOIS 60010

847-382-4100 TELEPHONE

847-382-4104 FAX coder@codertaylor.com

Helps you prepare for future maintenance expenses by preparing a reserve study that lets you know when repairs will be needed.

Saves you money by designing proper specifications. Through research and engineering, we assist you in hiring qualified contractors & ensuring that their performance is up to the associations’ expectations.

Helps you take a proactive approach in protecting the value of your property from your pavement to your roof tops.

1-800-CLEAN54 www.bbsteamatic.com autumn 2011

ChiCagoland BuildingS & environmentS

09

BuilDings & environments

B v s t e v e n s i l B e r m a n , c Pa , f r o s t, r u t t e n B e r g & r o t h B l at t, P. c .

INCOME TAXES FOR COMMERCIAL CONDOMINIUM ASSOCIATIONS

Are They The Same As Commercial Rental Properties? if you are a recent owner or property manager managing a Commercial Condominium association (“CCa”), you must understand that both accounting and income taxes for a CCa are significantly different than a Commercial rental Property.

C

CA’s are required to follow the Illinois Condominium Property Act and the by-laws and declaration of the Association. They must also follow certain Internal Revenue Code (“IRC”) sections that apply to Condominium Associations.

Income taxes for a CCA are not merely calculated by subtracting expenses from income and applying an income tax rate to the net amount. CCA income taxes are

much more complicated.

Fund Accounting Should Be Used The first important concept that you should understand is that CCA’s should be using fund accounting in order to possibly reduce their income tax liability. The following types of funds can be used: 1. Operating -This fund is for budgeted estimated common area costs of maintenance and operations.

2. Repair and Replacement (Reserve) This fund is used to accumulate funds for future major repairs and replacement of existing common area components. The Illinois Condominium Property Act states that an Association must maintain reasonable reserves. One method to determine reasonable reserves is to have a reserve study prepared. It is recommended that an outside engineering firm prepare the reserve study.

3. Capital Improvement -This fund is designated for the acquisition or construction of new common area components not in existence currently.

4. Contingency/Deferred Maintenance This is a separate operating fund that can be used for large periodic maintenance items such as painting and caulking.

IRC Section 118 allows capital (re-

What’s Stopping You From Getting

SMART? Make the Smart Choice. www.smartelevatorsco.com

HONESTY, DEDICATION & EXPERIENCE

630.544.6829 Member: ABOMA, ACTHA, CAA, CAI, BBB 1636 CANYON RUN RD. NAPERVILLE, IL 60565 10 C h i C a g o l a n d B u i l d i n g S & e n v i r o n m e n t S

autumn 2011

s P e c i a l f e at u r e

serve) assessments to be excluded from gross income and therefore treated as nontaxable on Federal Form 1120, if the Association meets the following guidelines: The purpose of the assessment must be capital in nature. The reserve study supports the purpose of the capital assessment. However, painting, even if included in the reserve study, is considered an operating assessment, not a capital assessment.

Association Members must have advance notice. Distributing copies of the budget to the members IS considered advance notice.

3. The assessment must be accounted for as a capital contribution and held for that purpose. The books and records of the Association and the budget should segregate operating and reserve (capital) activities. Consequently, the Association benefits from using fund accounting.

4. Reserve (capital) assessments should be deposited into a separate account and reserve expenses should be paid out of this separate account. An Association can pay for capital expenditures out of the operating fund account as long as the reserve account reimburses the operating fund account in a relatively short period of time.

Segregate Membership And NonMembership Activities Another important concept that one should understand is that CCA’s are subject to IRC Section 277. Under this section, an association must limit its deductions taken against membership income. For that reason, Associations must segregate membership and non-membership activities for income tax purposes. Associations can be taxed on both net membership income and net non-membership income.

Membership income is generally defined as gross income received from its members.

Non-membership income is generally considered to be income from investments and income received from non-members.

Through various court cases, the Internal Revenue Service (“IRS”) has provided guidance as to which expenses are eligible to be allocated against non-membership income and how to calculate the deductible portion of these expenses.

An Association’s tax liability depends upon whether they have net membership and net non-membership income or loss.

autumn 2011

If the Association has a net non-membership income, the Association is taxed at regular corporate income tax rates. If the Association has a net non-membership loss, the loss can be carried forward for twenty years or backwards for two years.

Currently there is debate in the industry on whether an Association can offset net membership income with a net non-membership loss.

If an Association has a net membership loss, that loss can be carried forward to future years. If the Association has net membership income, the Association will incur an income tax liability on this net income at the regular corporate income tax rates or it has another choice.

Election To Defer Paying Income Taxes For One Year On Net Membership Income The choice relates to the final concept that one needs to understand which is Revenue Ruling 70-604. Under this ruling, the Association may be able to defer paying income taxes or not pay income taxes at all on this net membership income.

Revenue Ruling 70-604 allows Associations to defer net membership income for one year, but if the Association has net membership income in the next year, then the Association would have to pay income tax on this deferred income in the next year. II is then extremely important for the Association to do proper planning when they are preparing their budget for the upcoming year. An Association can also make an election under Revenue Ruling 70-604 to refund net membership income to its members, but this option is

rarely exercised. In fact, I have never experienced any Association refunding money to its members. A question that comes up often is: Can an Association transfer excess net membership income to reserves and then not have to pay income tax on this excess?” The answer is clearly NO! An Association cannot transfer excess net membership income to reserves to avoid paying taxes since the Association cannot re-characterize what the assessment was originally intended for. In order for Revenue Ruling 70-604 to be valid, the election has to be approved annually by the members (usually at the annual meeting) and it should preferably be made before the end of the year. The dollar amount does not have to be specified.

There has been debate on whether Revenue Ruling 70-604 applies to CCA’s. Many in the industry believe the key to whether this revenue ruling applies is not whether the Association is commercial or residential, but the scope of the activities of the Association. If the scope of the activities of a CCA is similar to a Residential Condominium Association (“RCA’,), then Revenue Ruling 70604 should apply. If the scope of the activities far exceeds the scope of activities for a RCA, then it will not apply.

Accounting for a CCA and the elections and filing of income taxes is extremely complicated. Specialized knowledge is required in order for the CCA to benefit from the accounting and income tax rules. Therefore, it is recommended that a CCA consult with professionals that specialize in the accounting and income lax rules for CCA’s. $

ChiCagoland BuildingS & environmentS

11

BuilDings & environments

By James a. fizzell

Emerald Ash Borer Costs are Staggering in the last 100 or so years, some of our most revered shade and forest trees have succumbed to invasion by predators from across the seas.

I

n the early 1900's american chestnut trees fell victim to the chestnut blight, a fungus disease from asia. nearly 25 percent of all shade trees in the u. S. at that time were chestnuts and by 1940, there were none left other than some shoots from old stumps. in the 1950's, american elms began to die of another imported fungus disease, dutch elm disease. in a very short time the shady, tree-lined streets were devoid of elms. until recently, ash trees constituted about one fourth of all the shade trees in this part of the u. S. now, they are in serious jeopardy due to predation by the emerald ash borer. the adult borer is a half-inch long, metallic green, torpedo-shaped beetle that feeds on the foliage of shade trees. this feeding is of no consequence; however, the larvae of these beetles are borers that mine their way into the inner bark of a tree, and destroy the vital cambium and water-conducting vessels in the trunk of the tree. large healthy ash trees can be killed in a matter of three or four years. emerald ash borer was first discovered in the vicinity of detroit in 2002 having arrived from its native asia in solid wooden crating materials.

Since that time it has spread to at least a dozen states and two Canadian provinces. the rapid dispersal of the pest primarily is due to transportation of ash firewood from infested areas. in michigan, ashes are nearly extinct. the beetle has killed literally tens of millions of urban, rural, and forest ash trees in the east and midwest. millions more have been removed to stem the tide of the infestation. the insect took up residence in illinois 2006. the northeastern quarter of the state is infested and the entire state is under a federal quarantine to prevent the movement of ash wood products out of the state. thus far in illinois, the numbers of trees cut down due to the beetles are in the hundreds of thousands if not millions, according to the illinois department of agriculture. the borers have been confirmed in at least 160 communities in more than 20 counties.

Southwest suburban St Charles reports sixteen hundred ash trees have been removed at a

total cost estimated at $100,000 per year. of the twenty thousand trees in St Charles, fifty-four hundred, or just over one quarter, are ashes. many communities have tried to limit the numbers of each kind of tree to about 10 percent. that would limit losses to that per cent of the tree population. our community of Park ridge has about 10 percent ash trees and has lost only about 100 trees so far. newer communities that planted ashes in wholesale numbers may have in excess of 50% ash trees. it is estimated that the cost to remove and replace an ash tree is more that $2500.00. the cost to communities will be staggering. ash trees were extensively planted as street trees, shade trees and as lawn trees to replace the elms. these ashes are now big, mature trees and loss of them would severely alter the looks of our communities. affected trees decline, with upper branches dying over a period of two or three years. ultimately the entire tree dies. a strenuous effort is underway to locate infestations and to eliminate the pest. trapping is used to locate infestations. You may have seen the purple, cylindrical traps last spring. once an infestation is discovered, inspectors look for 1/8-inch “d�-shaped emergence holes in dying branches to identify individual infested trees. Shaving off the bark reveals the serpentine feeding galleries created by the larvae.

Several strategies are being investigated for saving ash trees. until recently, the only option was to remove all ash trees within several miles of

12 C h i C a g o l a n d B u i l d i n g S & e n v i r o n m e n t S

a known infested tree. now, some new insecticides are effective in saving infested trees with less than 50% of the crown involved. options include systemic insecticides applied as soil injections, as trunk injections, or as lower trunk sprays to kill larvae, and as cover sprays applied to the trunk, branches and foliage to kill foraging adults. most of the systemic insecticides are intended for use by professional arborists. treatment is expensive and probably best reserved for unusually valuable trees. unless an infested ash tree is within ten or fifteen miles of your site, it is not necessary to take any protective action.

Biological controls offer the most promising chance for long-term control of this pest. Parasitic wasps have been acquired for testing from China where the emerald ash borer is endemic. these seek out eggs of the borers and parasitize them. Several fungal entomopathogens (fungi that attack insects) are being investigated. all hold promise that eventually the pest can be kept at minimal levels. if you suspect that your ash trees are infested, consult your landscape contractor or a certified arborist. he or she is well trained concerning the emerald ash borer and the processes necessary once the pest is discovered. if an ash tree is removed, make sure the wood is properly disposed of to prevent transporting the borers to other areas. as least until economical means of preventing or treating emerald ash borers are available, it is probably best to not plant any more ash trees. Your landscape contractor can suggest alternatives. Be sure to plant no more than 10 per cent of any kind of tree so if another pest arrives it will not destroy all your trees. $

autumn 2011

inDustry haPPenings

Related Midwest Breaks Ground on Innovative Luxury Rental Tower related midwest, in partnership with the aFl-Cio Building investment trust, today joined local elected officials and labor leaders to break ground on a 45story, 500-unit luxury rental apartment tower located at 500 lake Shore drive.

T

he groundbreaking ceremony officially held on September 14, 20011 commemorated the start of construction of the development, which will be ready for residents in May 2013. 500 Lake Shore Drive represents an investment of more than $160 million in the City of Chicago and is expected to create more than 750 union construction jobs.

"The size, scale and overall design of 500 Lake Shore Drive will provide for a very well-conceived addition to the lakefront," said Andrew J. Mooney, commissioner of the Chicago Department of Housing and Economic Development. "The groundbreaking is also an encouraging sign of renewed life in Chicago's real estate market."

Upon completion, 500 Lake Shore Drive will be an impressive addition to the Chicago skyline in a premier location. Designed by architects from Solomon Cordwell Buenz (SCB), it will include 500 residential rental apartments, a parking garage and retail space. The development will incorporate sustainable features to increase energy efficiency and

autumn 2011

improve indoor air quality. Additionally, the building will feature a signature, vertical green wall on the east facade immediately adjacent to Lake Shore Drive that incorporates a variety of creative greenery. 500 Lake Shore Drive is anticipated to receive LEED Silver certification.

“Related Midwest is thrilled to build on its track record of delivering best-in-class residential developments to the Chicago market with 500 Lake Shore Drive. Our vision is to offer Chicagoans a beautiful urban respite with inspired architecture and unrivaled amenities,” said Curt Bailey, president of Related Midwest. “We look forward to continued collaboration with the city, local leaders, community members and Streeterville residents to add to the vitality of one of Chicago’s great neighborhoods.”

The property will be constructed on an approximately one acre, full-block parcel bounded by Lake Shore Drive, Grand Avenue, Illinois Street and Peshtigo Court. The property received approval from the Chicago Plan Commission

on June 16 of this year.

“We welcome this state-of-the-art project and the many jobs it will provide local workers,” said Tom Villanova, president of the Chicago & Cook County Building & Construction Trades Council. “At a time when economic challenges persist, this project offers many hard-working men and women a chance to get back to work.”

“Streeterville is home to world-renown architecture, dining, shopping and museums, as well as active residents who want to live and play near the lakefront,” said Alderman Brendan Reilly (42nd Ward). “The development team worked together with the community to address concerns and incorporate sustainable elements like the all-season green wall – the first building in Chicago to feature yearround exterior greenery.”

500 Lake Shore Drive will continue Related Midwest’s rich tradition of market-defining developments and will become the next great addition to the Related rental portfolio representing the finest luxury residential properties in the country.

In addition to SCB, the joint venture has engaged Lend Lease as the general contractor. Lend Lease and SCB have a long history of designing and constructing successful, multifamily residences, including Related Midwest’s 340 on the Park, the first LEED certified residential tower in the Midwest. Related Midwest is also developing 111 Wacker Drive, a 500-unit luxury rental complex on the Chicago River.

ChiCagoland BuildingS & environmentS

13

Chicagoland

&

Buildings Environments THE

Volume 7, No. 1, Autumn 2011

G

reen Buildings and environmental trends continue to play well in the media and green projects are getting more consideration than

Landscape La Lan ndscap scapee BBuyer uyer uy er

ever before. however it seems that the consumer public and many green busi-

Volume 18, No. 1, Autumn 2011

others. Basically what has happened as a result is that even greater importance

nesses are struggling with our economic challenges as much or more than

» editor’s message

is placed on whether specific green initiatives really pass the money test of “does this make good financial

sense?” many green projects and trends continue to develop and we can only hope that our economy will improve for everyone sometime soon.

Editor & Publisher Michael C. Davids Vice President Sherri Iandolo

our cover story for this issue of CBE deals with electric vehicles. While electric vehicles are a long way from being common, there is good momentum for their wide use and acceptance. like most things, their use will increase as consumer demand increases. a related story later in this issue features magellan development’s aqua building within their lakeshore east property. this story offers a great example of how to manage electric car charging stations in a residential building and is another example of magellan’s emphasis on

Art Director Rick Dykhuis

green buildings. our second story profiles the green exchange which is an old Chicago factory building that has been

Contributing Writers

converted to an office building designed to house green businesses. the green exchange is currently occu-

James A. Fizzell, Cathy Walker,

pied by 20 or so companies that specialize in some type of green products or services. When complete, the

David Mack Circulation & Administration Carol Iandolo, Mary Knoll, Arlene Wold

green exchange plans to be the home of some 100 green companies. a special feature in this edition offers a discussion of accounting and tax issues for commercial condominiums in comparison with traditional commercial rental properties. of course there are tax advantages associated with implementing some types of energy savings purchases that you should also be aware of.

The Landscape Buyer and Chicagoland Building & En-

Jim Fizzell’s regular column on the weather and your landscape provides some helpful tips on prepar-

vironments is published Winter/Spring and Summer/Au-

ing your outdoor landscape for the winter and insight on how the past season’s weather has affected your

tumn by MCD Media, as informational and educational tools for

plants and landscape. Jim also offers an update on the emerald ash Borer insect that continues to have a

the buyers, users and providers of green industry products and

staggering impact on Chicagoland landscapes.

services. For editorial, advertising and subscription information contact: 935 Curtiss, Suite 5, Downers Grove, IL 60515, 630-9325551 or 630-663-0333. Fax: 630-663-0339 or 630-932-5553.

our regular industry happenings column along with highlights from a variety of special events can also be found in this issue.

We are always looking for other green building trends and issues to feature in coming issue of CBe. if you have a green story to share, or if your property has a special need or challenge, please let us know.

CIRCULATION:The Landscape Buyer and Chicagoland Building & Environments maintains a circulation of 7,000. Subscriptions are available for $19.95 per year. Group subscriptions are available at $13.95 each, per year (orders of 5 or more). Single issues are available for $10.95.

All material herein is copyrighted. No part of this publication may be reproduced whatsoever without written consent from the publisher.

State of the Industry mCd special events provide a terrific forum for property professionals and owners to get questions answered, meet new vendors, share a story idea, or socialize with other volunteers and professionals. Please consider attending our upcoming State of the industry program on december 8th at the Chicago Cultural Center. one of the topics we will discuss is environmental issues for Buildings and other green trends. You can find more information on this program on page 26 and also on our website www.chicagolandbuildingsandenvironments.com. Please make plans to join us. if for some reason you are unable to attend, we wish you a very happy holiday season. thanks to the many new subscribers that have found our publications useful and informative. Special

This publication is designed to provide accurate and author-

thanks to the firms, associations and groups that are authorized distributors of Chicagoland Buildings and En-

itative information in regard to the subject matter covered.

vironments, the Landscape Buyer and Condo Lifestyles. those of you who are interested in becoming sub-

It is issued with the understanding that the publisher is not

scribers can obtain subscription information on page 20 of this issue. as we continue to grow , we

engaged in rendering legal or accounting services. If legal

encourage you to make your environment and your community as green as it can be.

advice is required, the services of a competent professional

Michael C. Davids

should be sought.

Editor and Publisher

14 C h i C a g o l a n d B u i l d i n g S & e n v i r o n m e n t S

$

autumn 2011

Professional Services Directory

BANKING GreenChoice Bank 708-656-0100 x128

ASBESTOS / LEAD ABATEMENT

ASPHALT

IFD Inc. Associated Environmental LLC 847-364-6800

FM&J Asphalt Paving, Inc. 708-544-6700 / 630-279-0303

www.greenchoicebank.com

Asbestos Abatement • Lead Paint Mitigation www.ifd-associated.com

ARCHITECTS / ENGINEERS Coder Taylor Associates 847-382-4100 Architects • Research • Engineering Specifications • Reserve Studies

Full Circle Architects, LLC (847) 564-0884 (847) 564-3880 fax Daniel Baigelman, AIA dan@fullcirclearchitects.com Capital Improvements • Reserve Studies • Engineering Reports

www.fullcirclearchitects.com 85Revere Drive, Suite B, Northbrook, IL 60062

Environ International Corporation V: 312.288.3836

Concrete & Asphalt Paving / Pavers & Color Stamping Drainage Systems & Sewer Repairs Sealcoating, Crack Filling & Striping www.fmjasphalt.com

Riggio/Boron Ltd.

Contact Mark Neville

A Total Exterior Facade Restoration Company

The Lorusso Companies (630)231-9009

www.RiggioBoron.net

847-531-5700

C O N C R E T E & A S P H A LT

The Lorusso Companies (630)231-9009

Maul Asphalt & Seal Coating 630-420-8765

Install New • Remove Old • Repair • Footings Foundations • Sidewalk • Parking Lots • Driveways www.lorussocompanies.com

Sealcoating / Crack-Sealing / Striping Asphalt Installation www.maulasphalt.com

Hard Surface Solutions 815-344-8400 / 630-674-4520

C O N C R E T E & A S P H A LT

F: 312.288.3801

Kovitz Shifrin Nesbit (847) 537-0500 www.ksnlaw.com

312-251-1900

Building Envelope Structural Renovation/Adaptive Reuse Curtainwall/Windows / Capital Maintenance Planning New Structural Design, Civil/Environmental Marine/Waterfront Structures Transportation Facilities www.kleinandhoffman.com

Advising and Consulting with Business Owners, Community Association Law & Collection Services, Construction Defects, Real Estate Assessed Valuation Reduction, Litigation, Commercial Restructuring, Bankruptcy & Creditors' Rights, Real Estate, Business ,Estate Planning

Concrete Flatwork Specialists / Asphalt Paving Curbs & Driveways / Sidewalks Footings &Foundations / Colored & Stamped Concrete Aggregate Finish Concrete Contact Mark Neville www.hsshardsurfacesolutions.com

CONSTRUCTION MANAGERS

contact: Rob Sternberg RSternberg@ksnlaw.com

R.C. Wegman Construction Company (630) 844 - 3000

Levenfeld Pearlstein, LLC 312-476-7556

New development • Tenant Improvements Upgrading facilities • Expansions Applying LEED Principles "Building on Over 50 Years of Trust" Contact: Mark Baum / markb@rcwegman.com www.rcwegman.com

Howard Dakoff / hdakoff@lplegal.com www.lplegal.com

SWH Architects, Ltd. 630-466-8021 Contact - Steve Hansen stevehansen@mchsi.com

CONCRETE

Install New • Remove Old • Repair • Footings Foundations • Sidewalk • Parking Lots • Driveways www.lorussocompanies.com

www.environcorp.com 333 West Wacker | Suite 2700 Chicago, Illinois 60606

Structural and Restoration Engineers

Quality Restorations (630) 595-0990

Hard Surface Solutions 815-344-8400 / 630-674-4520

ATTORNEYS

Klein and Hoffman, Inc.

BUILDING RESTORATIONS

DOORS BANKING Community Advantage of Barrington Bank & Trust 847-304-5940

American Door & Dock 847-359-4296 www.americandooranddock.com

Loans, Reserve Investments & Lock Box Services www.communityadvantage.com autumn 2011

ChiCagoland BuildingS & environmentS

15

DOORS Woodland Windows & Doors 630-529-Door (3667) Window and Related Masonry Interior & Exterior Doors | Siding & Gutters www.woodlandwindows.com

DUCT CLEANING

FIRE / FLOOD RESTORATION Brouwer Bros. Steamatic

Team Fire Protection

All types of Environmental Cleaning.

Air & Exhaust Duct Cleaning • Mold Remediation Garbage Chute Cleaning • Carpet & Drapery Cleaning Photo Inventory, Moving, Storage or Removal

A N E M CO R CO M PA NY

(847) 537-1616 www.tmi.com

800 CLEAN54 (253-2654) 708-396-1447 (24-hour service line)

FORECLOSURE & EVICTION RELATED SERVICES

www.bbsteamatic.com

Brouwer Bros. Steamatic (800) CLEAN54

QCI Restoration 847-891-2929 866-832-6724

Photo Inventory, Moving, Storage or Disposal

www.QCIrestoration.com

E.L. Johnson Investigations, Inc. (312) 583-1167

Brouwer Brothers Steamatic All types of Environmental Cleaning.

800 CLEAN54 (253-2654) 708-396-1447 (24-hour service line) ECOLOGICAL RESTORATION McGinty Brothers Professional Lawn & Tree Care 847-438-5161

FIRE SAFETY & PROTECTION

The Restoration Group, LLC 630-580-5584 www.trgrestore.com

www.bbsteamatic.com

(312) 583-1169 FAX

State Licensed Private Detectives All Types of Investigations Specialization in Foreclosure Process Service and Eviction Notices on Foreclosed Property stacey@eljohnson.com

ELEVATORS/CONSULTANTS Smart Elevators Co. (630) 554-6820 www.smartelevatorsco.com

ENERGY GAS & ELECTRIC C 2 International 877-265-2799

Universal Restoration Services 877-864-8266 P 888-596-4966 F Water, Fire and Disaster Restoration Joe Lamotte, General Manager Commercial Division www.4universal.com

Contact: Ryan Anthony www.selectenergypartners.com

Kinsella Landscape, Inc. 708-371-0830 Creating Lifestyles from the Outside In...™ www.kinsellalandscape.com

HVAC FIRE SAFETY & PROTECTION

Contact: Hans Herrmann

Select Energy Partners LLC (312) 593-6412

HOLIDAY DECORATIONS

ConTech MSI Co. 847-483-3803 Fire Detection & Signaling Systems Fire Alarm Systems Chicago Life Safety Evaluation Solutions Security Systems/CCTV Card Access Systems See our ad on page 9 www.contechco.com

Althoff Industries 312.332.5700 Mechanical - Plumbing - Electrical - Building Automation

www.althoffind.com

Team Mechanical A N E M CO R CO M PA NY

(847) 537-1616 www.tmi.com

INSURANCE Northern Illinois Fire Sprinkler Advisory Board (NIFSAB) 866-2NIFSAB (866-264-3722) 708-403-4468

Hollinger Services, Inc. 847-437-2184 www.HollingerInsurance.com

www.firesprinklerassoc.org

16 C h i C a g o l a n d B u i l d i n g S & e n v i r o n m e n t S

autumn 2011

INSURANCE

LANDSCAPE CONTRACTORS

OFFICE RENTAL/LEASING

Mesirow Financial 312-595-8135

ILT Vignocchi 847-487-5200

The Alter Group 630-620-3600

Nancy Ayers

www.ILYTVignocchi.com

www.altergroup.com

INSULATION / PIPES

Kinsella Landscape, Inc. 708-371-0830

PAINTERS

Creating Lifestyles from the Outside In...™ www.kinsellalandscape.com

AAA Painting Contractors, Inc. 630-231-8350

All Thermal Insulation Co. (847) 698-7543 Serving Chicago Over 50 Years We NEVER Charge for Estimates All Pipe & HVAC Insulation all_thermal@sbcglobal.net

Landscape Concepts Management 847-223-3800

www.aaapaintco.com

www.landscapeconcepts.com

CertaPro Painters 630-742-5119

Sebert Landscaping, Inc. 630-497-1000

Interior & Exterior Painting • Wallcoverings Stucco, Masonry & EFIS Repair • Drywall Repair www.certapro.com

IRRIGATION

www.sebert.com

PAVING

NatureScape Design

Thornapple Landscapes, Inc. 630-232-2076 / 800-464-3443

Irrigation & Water Features Contact Paul Layshock or Jean Singleton

Quality Landscaping Since 1947 www.thornapplelandscapes.com

DuBois Paving 847-634-6089 / 800-884-4728

847-639-6900

LAWN CARE

JANITORIAL SERVICE Kingsbury Clean (847) 768-1200 “GREEN” Janitorial & Sanitizing Services for hospitality businesses, health care providers and commercial, industrial and multi-unit residential buildings.

Jed Levenstein / David Melone www.kingsburyclean.com

LANDSCAPE CONTRACTORS Alan Horticultural Services, Inc. 630-739-0205 www.alanhorticultural.com

Balanced Environments 847-395-7120 630-916-8005 www.balancedenvironmentsinc.com

autumn 2011

www.DuBoisPaving.com

Spring Green Professional Lawn & Tree Care 800-830-5914

FM&J Asphalt Paving, Inc. 708-544-6700 / 630-279-0303 Concrete & Asphalt Paving / Pavers & Color Stamping Drainage Systems & Sewer Repairs Sealcoating, Crack Filling & Striping www.fmjasphalt.com

MOLD REMEDIATION Brouwer Brothers Steamatic All types of Environmental Cleaning.

800 CLEAN54 (253-2654) 708-396-1447 (24-hour service line) IFD Inc. Associated Environmental LLC 847-364-6800 Environmental Remediation www.ifd-associated.com

Maul Asphalt & Seal Coating 630-420-8765 Sealcoating / Crack-Sealing / Striping Asphalt Installation www.maulasphalt.com

PEST MANAGEMENT SERVICES Smithereen Pest Management Services 800-336-3500 www.smithereen.com

NUISANCE WILDLIFE Smithereen Pest Management Services 847-647-0010 ChiCagoland BuildingS & environmentS

17

PROPERTY MANAGEMENT

ROOFING

TREE CARE & PRESERVATION

Alter Asset Management 630-620-3600

CSR Roofing Contractors 708-848-9119

Autumn Tree Care Experts, Inc.

www.altergroup.com

Baum Property Services, LTD., AAMC 630-897-0500

Industrial/Commercial/Multi Tenant/High Rise All types of Roofing Leak Trouble Shooting/Roof Repairs Roof Check 365 Maintenance Programs Conventional and Single Ply Roofing www.csr-roofing.com

Caruso Management Group, Inc.

SHEET METAL [CUSTOM]

Residential & Commercial

630-717-7188 www.carusomanagementgroup.com

Heil, Heil, Smart & Golee Real Estate Since 1885

847-866-7400 / 773-273-3434

J.J. Superior Sheet Metal, Inc. (708) 544-3757 Architectural Sheet Metal Specialists Coping, Counter Flashing & Specialty Copper Work Gutters & Custom Roofing Accessories www.jjsuperior.com

www.hhsg.com

SIDING / RENOVATIONS McGill Management, Inc. 847-259-1331 www.mcgillmanagement.com

Tairre Management (847) 299-5740 tsutton@tairremgmt.com

Legum & Norman, Mid-West 312944-2611

Contact:Tom Skweres // tskweres@wolin-levin.com or Jennifer Feldman // jfeldman@wolin-levin.com www.wolin-levin.com

ROOFING

The Care of Trees 847-394-3903 Certified Arborists, Accredited, 5-Time “Company That Cares” Honor Roll Member www.thecareoftrees.com

Lakeshore Waste Services 773-685-8811

Woodland Windows & Doors 630-529-Door (3667) www.woodlandwindows.com

WATER CONSERVATION

SNOW REMOVAL

DRF Total Property Solutions 630-615-4490 service@drftps.com / www.drftps.com

Hard Surface Solutions 815-344-8400 / 630-674-4520

WINDOWS/REPLACEMENTS

Contact Mark Neville

SOLAR ENERGY Solar Service, Inc. 847-677-0950

IFD Inc. Associated Environmental LLC 847-364-6800 www.ifd-associated.com New Construction • Renovation • Replacement/Repair Window Systems • Noise Abatement • Curtain Wall Systems Aluminum Windows: Wausau, Graham, Champion, Fulton Wood Windows: Andersen, Pella, Kolbe & Kolbe Steel Windows:Crittall

TRADE GROUPS / NON-PROFIT Association of Townhome and Condominium Associations

Woodland Windows & Doors 630-529-Door (3667)

312-987-1906

www.woodlandwindows.com

ACTHA

We’re Here When You Need Us! www.protoproofing.com

Tree Pruning, Tree Removal, Cable Bracing, Plant Health Care, Tree Planting & Transplanting www.kramertree.com

www.lakeroof.com

www.lakeroof.com

ProTop Roofing 847-559-9119

Kramer Tree Specialists, Inc. 630-293-5444

WASTE SERVICES/REC YCLING

www.solarserviceinc.com

B.T. Lakeside Roofing 630-628-0093

847-729-1963 for more information, please visit our website: www.autumntree.com

B.T. Lakeside Roofing 630-628-0093

www.lnchicago.com

Wolin-Levin, Inc. 312-335-1950

a comprehensive aboricultural firm building relationships in every season

actha@actha.org / www.actha.org

18 C h i C a g o l a n d B u i l d i n g S & e n v i r o n m e n t S

autumn 2011

AU T U M N 2 0 1 1

By James a. fizzell

The Weather & Your Landscape isn’t fall usually a time when everything has turned dry and brown? not this year! i can’t remember an autumn when the grass and trees were so fresh and green. But, fall is well on the way, and our plantings seem to be doing their best to recover from what turned out to be a very trying season.

T

he weather has been chaotic to say the least. our prognostication for last winter was on the mark as far as the temperatures were concerned, but way off for the amount of snow. a blizzard in February closed down the city of Chicago and surrounding metropolitan area.

Spring was cold and prolonged. 2011 was a wet grinding kind of spring.

Cold Wet Spring the cold, rainy spring did little to allow outdoor work and most contractors found themselves behind on their work. the cold weather delayed the season and plants were as much as two weeks late getting started. one benefit of the cold start was spring blooms lasted an unusually long time.

Fortunately the bug and disease problems were delayed too.

Hot & Dry Early Summer When summer arrived, it did so with a vengeance. From the first day of summer until well into august temperatures were regularly in the 90s. during a thirty-day period less than half an inch of rain fell. that fell on July 11 accompanied by tremendous damaging winds. Power outages and widespread tree damage kept tree people busy for days. electricity was out for the better part of a week in some areas until fallen trees could be removed and power lines restored. the month of the heat alone was enough to damage plants. But, unless irrigated, plants suffered from the drought as well. Without water, lawns turned brown. annuals dried up, and newly planted trees and shrubs wilted. Creatures such as mites and sod webworms, adapted to surviving hot, dry weather, proliferated adding to the troubles for plantings.

autumn 2011

Heavy Rains & Flooding that all changed on the morning of July 23. tremendous rains flooded parts of Chicagoland, causing innundation of many plantings. landscape plantings were under water in some places for much of a week. the result was loss of flowers and some larger plants. Yews seem to have been particularly hard hit. they are notoriously susceptible to wet feet. the damage to roots of large trees might not appear for months or even years.

Spruces and oak trees may have suffered fatal losses of drowned roots, but will struggle along until next year or longer before anything bad begins to appear. Bronzing of needles and dieback are typical. lawns and most plants recovered nicely, and they look as good as they have all year. long-range forecaster, greg Soulje, commenting on the deluge, suggested that we need to be prepared for such events because that was just a taste of what is to come. i was almost afraid to ask what he meant by that!

Cold & Wet Fall according to Soulje, following a couple of weeks of mild drier weather in late summer, we can expect the weather to turn sharply cooler and wetter. he isn’t sure about the current conventional wisdom that says the la nina will redevelop. a moderately strong la nina has affected weather the last two years or so. in fact the temperatures in the equatorial Pacific remain neutral, neither warmer nor colder than average. during la nina events the waters off the west coast of South america turn colder, whereas el nino events are accompanied by warmer than average waters. the indicators are so strong, that whether the la nina develops or not, Soulje says, his forecast should be accurate enough to rely on.

Fall & Winter Forecast the u. S. Weather Service is still calling for a la nina to redevelop, with the winter to be begin warmer-to-much-warmer than normal switching to much colder, and for precipitation to begin lighter than average and becoming heavy after the first of the new year.

Soulje expects wide contrast in temperatures, with swings from above to well below with the passing fronts. on the heals of the fronts which provided two or three days of showers accompanied by periods of cool weather in late September, it will become milder and somewhat drier into october. there should be no season-ending cold until early november. Windows of drier weather should allow time in which to get fall chores finished. one can not rule out several spells of above average temperatures which could fuel an active, stormy mid-to-late autumn and early winter. otherwise, he says, expect a rather dry scenario through mid-autumn. then expect a dramatic shift to normal precipitation, followed rapidly by above average precipitation and especially snowfall, with the potential for a total of 85 to 95 inches of the white stuff through march 2012. there may be one or two late season snows. the winter, he says, will be troublesome. it will be an action-packed season. Storms could be more frequent than last year, and snowier. Winter may be quite a bit colder than what we have experienced the last couple of years. it may get pretty brutal he warns. a deep trough will move over us or just to the east of us, developing a northwest flow of the jet stream, typical of a classic midwest winter. as the season progresses, the jet stream will bring down storms which will break off from a persistent low pressure area in the gulf of alaska.

Before the Snow Flies Whether Soulje is right or not, there is much to do before the snow flies.

With the prospect of a challenging fall weather-wise, it is probably a good idea for outdoor work to be finished up as soon as possible. if the early freeze does occur, all the annuals can be pulled out and the tops of perennials cut back.

ChiCagoland BuildingS & environmentS

19

the lanDscaPe Buyer

the fall annuals that will survive a freeze such as mums, pansies, and flowering kale can be left in place. they will last quite a while yet. get spring flowering bulbs planted as soon as possible.

Flowering Trees & Shrubs an interesting phenomenon occurred late last summer as flowering trees and shrubs, especially magnolias, which normally bloom in spring, suddenly put forth flowers. Some shrubs and trees that had earlier stopped putting out new leaves, began to send out new, off-color and etiolated growth.

Some plants tolerate the heat and drought by going into a state of dormancy. While we did not suffer oppressive 100-degree heat like texas and oklahoma, it was hot enough, and certainly dry enough, to send things like magnolias into dormancy. When the weather broke, these plants began to grow again. the ones that flower early in the spring had already set flower buds so were able to push out blooms. Plants that don’t normally bloom early began to force out new shoots instead. these plants will not have time to set more flower buds, and the shoots may not have sufficient time to harden off so they can stand winter. expect the magnolias to bloom next spring, but there will be fewer flowers. the soft shoots on other plants may be killed back, but the plants will develop lateral buds that soon will take over. these may be a little late starting in spring.

Early Freeze This Year?

With the prospect of a challenging fall weather-wise, it is probably a good idea for outdoor work to be finished up as soon as possible. if the early freeze does occur, all the annuals can be

pulled out and the tops of perennials cut back. the fall annuals that will survive a freeze such as mums, pansies, and flowering kale can be left in place. they will last quite a while yet. leaves may fall early and quickly. there may not be much fall color. Be sure to get the leaves up before they freeze in place. if left, they will smother the grass and repairs could be necessary in spring. replacements might be needed for trees and shrubs that suffered from conditions last summer. even with freezing weather, woody plants still can be planted. Be sure, if the plants are dug and delivered before they can be put in the ground, that provision is made to keep balls from freezing. roots are much less tolerant of freezing than are tops.

Pruning & Trimming dead and dying stems and limbs on trees and shrubs can be trimmed out now. make sure tree branches damaged by the summer storms are removed before the ice and snow arrive.

Breakage of limbs is the main cause for power outages, and especially in winter, these can be devastating. loss of power in winter can mean freezing-up of water lines.

Irrigation While thinking about water lines, make sure the irrigation system has been drained and the lines blown out before they are damaged by freezing. the expected rainfall this fall should eliminate the need for irrigation. during the winter, any newly-planted trees and shrubs may need watering if the weather turns warm and dry. But the irrigation system is not needed for that. hoses and set-sprinklers will suffice.

GO TO THE SOURCE Condo Lifestyles, Chicagoland Building & Environments and The Landscape Buyer…

The source for information on practical news and trends

Order your Educational Resources today!

■ I wish to become a Condo Lifestyles Subscriber.

Please send me _________ annual subsciptions (4 issues-January, April, July, October) @ $30.00 ea for 1 year or ________ copies @ $8.95 per single issue. List issue(s) _______

■ I wish to become a Chicagoland Buildings & Environments Subscriber.

Please send me _________ subsciptions (2 issues - Spring/March & Fall/November) @ $19.95 ea for 1 year or ________ copies @ $13.95 per single issue. List issue(s) ________

■ Please contact me about information to become an authorized distributor.

Association/Firm

__________________________________________________________________________________

Name ______________________________________________________________________________________________ PRINT

SIGNATURE REQUIRED

Name ______________________________________________ Name

________________________________________

Address ____________________________________________________________________________________________ City ____________________________________________________________ State ______ Zip __________________ Phone/Fax

__________________________________________________________________________ Remit Payment to: MCD Media, 935 Curtiss Street #5, Downers Grove, IL 60515

AMOUNT ENCLOSED $________________________ CHECK# _______________________ START DATE ________________________

there is still time to make lawn repairs, seeding or sodding spots that died out this past summer. adequate rain should hasten establishment.

Winter Preparations Winterize trees, shrubs and especially containers. tie up evergreens so they are not spread apart by ice and snow. Where there is danger of snow sliding off roofs, install snow sheds over foundation plantings. Provide screens to protect plantings from salt spray. Burlap on 2x2 stakes works for this purpose. install rabbit guards and set out bait for voles. gladiator (Bromethalin) baits are readily eaten by the mice. one bite is fatal. other animals are not attracted to it, and any scavengers that eat the dead mice will not be harmed by it. deer damage can be prevented by constructing cages of re-bar and hardware cloth to fit over valuable plantings. these are expensive to make, but can save valuable shrubs such as yews which are favorites for deer.

Snow Removal Plans if the heavy snow materializes, your snow plow people will be out one dark night and unless you make arrangements beforehand they will be looking for a place to shove the white stuff. at 3:00 a.m. with the wind blowing and snow in the face, it is hard to make a good decision. the snow will go wherever it is the easiest. meet with your snow removal contractor now to decide where to put the snow. Your contractor and you will be much happier when that first blizzard arrives to find that preparations had been made in advance, and your parking space is not piled high with snow. make sure the other equipment needed for winter snow and ice removal is serviced and operational. Buy or order ice melt material in advance. When you need it the most, it may be in short supply.

Holiday Decorations & 2012 Planning Before the weather turns ugly, install holiday decorations. it is much easier and certainly less costly to do so when the weather is nice and the crew isn’t encumbered by heavy coats and gloves. decorations don’t need to be turned on until the Friday after thanksgiving, but that will be here all too soon.

Finally, meet with your contractor to go over the past year and to make plans for next year. if you are on a multi-year contract, your contractor will be familiar with the peculiarities of your site and will already have begun plans. if you are on an annual contract, try to firm up the arrangements for next year as soon as possible. this will allow you and your contractor to prepare for the coming season. it will be here before you know it. $

VISA/MC _____________________________________________________________________ EXP. DATE ____________________________

20 C h i C a g o l a n d B u i l d i n g S & e n v i r o n m e n t S

autumn 2011

inDustry haPPeneings

Developer Rehabs Illinois' First NAHB Green Certified House Cm real estate development, llC is rehabbing what is slated to be the first national association of home Builders (nahB) green Certified house in the Chicago suburb of Cicero. the house, which is located at 1335 South Central ave., is currently in the certification process for a national association of home Builders’ national green Building Certification™ (Bronze level). the project is also expected to be the nahB’s first green Certified home (rehab) in illinois.

T

he property is a 1928 vintage brick bungalow, single-family home with three bedrooms, one bathroom and approximately 1,064 square feet. CM Real Estate Development purchased the house in February 2011 using financing from GreenChoice Bank. The property is GreenChoice Bank’s first green rehab construction loan in Cicero. Green and energy-efficient upgrades to the house include: » Soy-based, all-natural paint/varnish remover using Back to Nature products » No VOCs paints, using Eco Spec by Benjamin Moore » Low VOC floor finish » Low Flow Kohler faucets » 93 percent recycled content Kohler Tub » FSC Certified kitchen cabinets » New insulated attic windows » ENERGY STAR rated back door » ENERGY STAR rated kitchen appliances » Energy saving light bulbs » Dimmers for main room lights » Timer-set bathroom exhaust fan » Low water landscape plantings » Recycled garage roofing materials » Recycled garage siding

» Shopping locally for sustainable materials from vendors such as The Green Depot and Rebuilding Exchange CM Real Estate Development focuses on bringing vintage homes in Chicago’s western suburbs “back to life,” preserving their historic features (hardwood flooring and specially-crafted woodwork and wood

autumn 2011

doors, as examples) and modernizing them with green features, including environmentally-friendly appliances and furnaces, no VOCs paints and Low Flow Kohler faucets. The company also reuses building materials and utilizes recyclers that recycle up to 95 percent of the waste generated during the property’s reconstruction.

In an effort to make the homes affordable for middle class families, CM Real Estate Development prices each project in

the low to mid-$100,000 range. CM Real Estate Development also uses locally-based contractors and vendors as a way to create jobs in the communities in which it builds. CM Real Estate Development is owned by Chris McAuliffe, a speaker for the U.S. Green Building Council-Illinois and an expert on green development, environmentally friendly construction and local, state and federal tax incentives for green houses. $

ChiCagoland BuildingS & environmentS

21

BuilDings & environments

MCD Showcases the Races

» industry happenings MCD Golf Invitational & Bocce Games

over 150 clients and guests attended to the annual mCd Showcases the races event that was held on thursday, September 15, 2011 at arlington international racecourse. major sponsor for the event was Comcast XFinitY.

over 150 guests attended the annual mCd golf invitational & Bocce games on July 15, 2011 at eaglewood resort in itasca, il. major Sponsors of the event included Kinsella landscape, inc., Balanced environments, & riggio/Boron, ltd.

▲ Shown above is a group from Wolin-Levin, Inc. on a paddock tour prior to race that was sponsored by the company.

▲ 3rd Place Foursome from Fullett, Rosenlund & Anderson

▲ 1st Place Foursome from Chicagoland Comunity Management

▲ Shown here is a group of guests on a tour of the paddock prior to a race sponsored by Hard

▲ Shown here is a group of Bocce

▲ 2nd Place Foursome from Kinsella Landscape, Inc.

Surface Solutions.

S&D Roofing NEW CAI AD_CAI AD (s&D roof) 4 X 2.5 3/2/10 5:41 PM Page 1 Tournament players

S & D ROOFING SERVICE, INC.

Over 75,000 Homes Roofed Since 1963 Specializing in Single & Multi-Family: Q tear offs

Q gutters - siding

Q flat roofs

Q repairs

Q shingles

Q soffit & fascia

The Roofing Company That Delivers Superior Service Time and Time Again.

S&D IS A LICENSED FIRESTONE RED SHIELD CONTRACTOR

OWENS CORNING Platinum Preferred Contractor

r Call Fo E E R F e Estimat

Complete Roofing Service • Bonded & Insured

630-279-6600

Ask For free video

www.sdroofing.com

22 C h i C a g o l a n d B u i l d i n g S & e n v i r o n m e n t S

autumn 2011

Chicagoland Find out what buyers like these are doing right and how it pays off.

The Alter Group Altielbi Development Corp.

&

Buildings Environments

A. Finkl & Sons Allstate BP Amoco

READERSHIP PROFILE 8000 PRIMARY READERSHIP DEVELOPERS, OWNERS & PROPERTY MA N A G E R S O F COMMERCIAL & MULTI-FAMILY PROPERTIES

Chicago Park District City of Aurora City of Chicago City of Park Ridge College of DuPage Cook County Draper and Kramer, Inc.

2975 OFFICE PARKS - DEVELOPERS & MANAGERS & TENANTS 1125 COMMUNITY ASSOCIATIONS ªCONDOMINIUM BOARDS & MANAGERS) 1750 CORPORATE OFFICES & CAMPUSES 400 HOME BUILDERS 400 APARTMENTS - OWNERS & MANAGERS

300 INSTITUTIONAL (HOSPITALS, GOVERNMENT, UNIVERSITIES, ETC.) 250 SHOPPING MALLS & RETAIL CENTERS 200 PARK DISTRICTS & SCHOOLS 200 GOLF COURSES 400 PROMOTIONAL DISTRIBUTION

EDITORIAL OVERVIEW COVER STORY MARKET FOCUS ARTICLES

COLUMNS

DuPage County Earth Friendly Products Essex Inn Good Samaritan Hospital The Habitat Company Harbor Springs Hines John Buck Co. Kane County Keystone Property Group Lutheran General Hospital Mesirow Financial Mercy Medical Center Merchandise Mart The Morton Arboretum Peggy Notebart Museum R.C. Wegman Construction Sherman Hospital Soldier Field State of Illinois Tellabs The Talbott Hotel Tishman Construction Corporation TJ Adams & Company Underwriters Laboratories Village of Lincolnshire Waste Management, Inc. WRD Environmental Wolin-Levin, Inc.

autumn 2011

Successful organizations, such as real estate firms, corporations, institutions, developments, public agencies and others are nominated: one is selected for the cover story. Use of environmental industry standards, technology, professionals, leadership, reputation, awards and special achievements are key criteria. We profile these buyers and highlight their outstanding achievements. Additional nominees are incorporated into related market focus articles. Nomination forms are available upon request.

SPECIAL FEATURES Award pictorials, research, key issues and concerns, useful examples and applications, etc., are covered in this manner.

Since providing practical information is an important focus of CB&E, every issue will include articles and features dealing with current trends in the marketplace.

DEPARTMENTS Regular trends covered include: • Indoor Air Quality • Energy Efficiency • Government Briefs • Renewable Energy • Ecological Restoration • Recycling • Building Restoration & Maintenance

Association’s Avenue Provides membership profile, history, background, programs and related information on various non-profit educational organizations. Awards programs and designations are sometimes included.

Buyer Tips Contributes valuable seasonal practical tips and ideas.

Industry Happenings/Event Highlights Previews and recaps various special events, programs, conferences, seminars, etc. Contains information on corporate and executive news plus noteworthy items, Terms & Trends Offers terminology, definitions, trends, explanations, etc.

Editorial Sponsorships CB&E will provide information, statistics and findings based on professional research, as well as feature editorials by our staff. Parties interested in sponsoring or presenting new research should contact the publisher.

Subscription & Circulation CB&E is available at $19.95 for an annual subscription. Qualified buyers and prospective subscribers or sponsors may receive a sample issue periodically. Consider the amount of money you manage relative to your property and secure regular delivery of the CB&E through a subscription or Authorized Distributor agreement.

ChiCagoland BuildingS & environmentS

23

BuilDings & environments

By larry schaffel

Aqua at Lakeshore East Provides Electric Vehicle Charging Stations

More than Just a Convenience

already widely heralded for its unique, award-winning sculptural design, magellan development group’s aqua tower at lakeshore east can now claim another distinction. Since october 2009 the garage at the lower level of the 82-story mixed-use structure is the site of the midwest’s first electric vehicle charging station open to the public.

New Infrastructure for EV A new infrastructure for electric vehicles is being created to deal with the fact that virtually every auto manufacturer has announced plans for their plug-in vehicles in response to concerns over high gas prices, oil independence and the impact of climate change on the environment.

“The six-charger station at Aqua accommodates up to 24 plug-in vehicles, be it two or four wheels, hybrids that run on both gas and electricity, extended-range electric vehicles and pure electric vehi-

cles,” explained Scott Emalfarb, President of Marketing and Branding for Carbon Day Automotives.

“After Aqua we plan to have five to ten charging stations in the Chicago area and then expand our network to other municipalities, probably numbering in the hundreds as more plug-in vehicles reach the marketplace. Aqua’s leadership is pertinent to the success of cleaner air quality and the sustainability of generations to come,” said Emalfarb.

Wolin-Levin, Inc. welcomes Lake Point Tower to our family!

Jim Loewenberg, co-CEO of Lakeshore East developer Magellan Development Group, who spearheaded the action, said there was more to the decision to install a charging station at Aqua than providing a convenience for area residents and workers and other electric vehicle drivers when they are away from home or have no place to plug in at home.

“The design and construction of Aqua includes many environmentally aware processes and practices that help us attain LEED certification as a ‘green building’ by the U.S. Green Building Council.

(LEED stands for leadership in Energy and Environmental Design.) We view this as one more positive step toward enhancing and improving the environment,” said Loewenberg.

We are proud to have been selected to manage the prestigious Lake P oint Tower Condominium Association. The high -rise, landmark building, which is unique in architecture, location and amenities, is comprised of 758 residential units, 22 commercial clients and valet parking facility.

Lake Point Tower offers onsite management services, 24/7 doorman, a priv ate 2.5 acre wooded park, indoor and outdoor pools, rooftop restaurant and onsite shopping and services.

By bringing more than 60 years of community management experience, Wolin -Levin will partner with the board of directors to deliver proactive management and distinctive service solutions. We look forward to ensuring the highest level of value and customer service to the residents of Lake Point Tower.

312.335.1950 River North 773.371.1320 Hyde Park www.wolin-levin.com a First Management Partners company

24 C h i C a g o l a n d B u i l d i n g S & e n v i r o n m e n t S

autumn 2011

BuilDings & environments

According to co-CEO Joel Carlins the collaboration with Carbon Day Automotives was prompted by Magellan’s longstanding policy of pursuing and implementing technological and environmental innovations.

“It’s consistent with our corporate philosophy of seeking to achieve environmentally sensitive LEED certification in all of our buildings, not just Aqua,” said Carlins.

Subscription Plans Offered Drivers of plug-in vehicles will be required to subscribe to a plan that will provide convenient and affordable access to all public charging stations. Emalfarb explains that subscribers can choose from a variety of plans, like cell phone or Cable TV plans.

They may take out a “Basic Access” plan that provides access to all ChargePoint charging stations on a pay-percharging-session basis or optionally sign up for specialized features with a subscription plan that might better fit their lifestyle and driving needs.

All plug-in stations are connected by computer network to provide drivers with

autumn 2011

best access to outlets. Drivers can access locations based on the navigation system in their vehicles, computers, telephones or even Blackberrys.

Loewenberg explains that this system not only identifies the closest stations but tells subscribers which are idle and which are occupied. Locating them in a public garage will ensure that they will be avail-

able to the public at all times.

Aqua will provide six plug-in outlets serving 24 parking bays. After a vehicle has been charged, drivers and the garage office automatically receive an e-mail notice that “Your car is ready.” If there is not a prompt response the vehicle will be unplugged by the garage operator so that the outlet is available for another user. $

ChiCagoland BuildingS & environmentS

25

2 0 1 1 S TAT E O F T H E I N D U S T R Y S E M I N A R »

11:00AM - 3:00PM December 8, 2011 Chicago Cultural Center For more information Call 630-202-3006 Visit our website at www.condolifestyles.net ...Or e-mail us at mdavids@condolifestyles.net

TOPICS INCLUDE:

• Legal Update (including Manager Licensing) & State of the Industry Update by Mark Pearlstein, Levenfeld Pearlstein, LLC. • Budgeting & Banking in Financial Crisis

Luncheon & Keynote Speaker Followed by Seminar Sessions

CondoLifestyles Buildings Environments

®

Chicagoland

• Gas, Electric & Utilities

&

• Chicago Ordinance Update: Facade Inspections, Life Safety and Elevators • Bulk TV/Satellite Issues • Environmental Concerns for Buildings • Insurance Issues • Impact of Mortgage Crisis and Current Money Trends

26 onmentS 26C h i C a g o l a Cnod nBduoi lldi iFne gS St Y&l ee Sn v i r10.10

2011 Committee: Tony BriskovicChicagoland Community Management Fred Rodriguez-Heil Heil Smart & Golee Tairre Dever-Sutton -Tairre Management Micky Tierney -Community Specilaists Diane White & Marla Jackson The Habitat Company Tom Skweres, Elana Lugo & Natalie Drapac Wolin-Levin, Inc.

autumn 2011

No part of the publication may be reproduced whatsoever without written consent from the publisher.

All material herein is copyrighted 2010©.

s P e c i a l f e at u r e

B y m at t B a K e r

Reduce, Reroof, Recycle: Finding a Second Life for Asphalt Shingling the most ubiquitous roofing style in the united States, topping roughly two thirds of residential roofs in the nation, is asphalt shingling.

T

his is due to its low cost, easy installation and relatively long lifespan.

These shingles are even more common in the northern, temperate regions of the nation where the reduced risk of thermal shock further lengthens their longevity.

According to a joint Federal Highway Administration and Environmental Protection Agency study, roughly 80% of macadam—the dominant use for asphalt—is recycled into future road laying

autumn 2011

projects. The same cannot be said for asphalt shingles. Making up a significant percentage of the construction and demolition waste stream, an estimated ten million tons of the petroleum-based shingles are disposed of each year.

Asphalt Shingle Recycling Program But that may be changing. Last year, manufacturing giant Owens Corning launched the industry’s first asphalt shin-

gle recycling program. Since inception, nearly 50,000 tons of material have been recycled into paving for roadways that otherwise were destined for landfills.

As one ton of asphalt roofing roughly equates to one barrel of oil, that’s equivalent to a week’s worth of Saudi Arabian oil production. That may seem like paltry savings considering the breadth of global oil consumption. But consider that the program is less than a year old and that asphalt shingles currently make up 90% of the residential market, with little prospect of being dethroned by other materials.

“The major shingle manufacturers are so

ChiCagoland BuildingS & environmentS

27

BuilDings & environments

efficient and it’s so easy to install that the metal or modified markets can’t compete with them,” said Stu Martel, Chief Production Manager with S&D Roofing Service.

Roofing Contractors Cooperate Reaching the 50,000 ton milestone necessitated the cooperation of many roofing contractors. Owens Corning preferred contractors, which now number fifty nationwide, with eight in the Chicago area, sign a pledge committing to 100% recycling of asphalt roofing shingles removed during a project.

The average U.S. house typically yields between three and four tons of asphalt shingles, meaning that diverting the waste from even one reroofing project could have a big impact. “You could pave 250 feet of a normal two lane highway

with a typical house,” said Barry Hornbacher, the Shingle Recycling Business Manager at Owens Corning. In fact, a home’s old roofing shingles is equivalent to recycling that household’s waste for one year.

There are several incentives for a contractor to sign the pledge. Aside from being able to promote their sustainable business practice to homeowners, roofers can obtain Owens Corning products at a discount. The manufacturer also maintains a preferred contractor page on their website. “Some one in Chicagoland who wants to find a contractor that is committed to recycling can go look up on our contractor locator page and find those contractors specifically,” said Hornbacher.

28 C h i C a g o l a n d B u i l d i n g S & e n v i r o n m e n t S

Financial Incentives In addition to helping developers to obtain certification credits under green building standards, the program aims where any contractor or subcontractor is most susceptible: the pocketbook.

Heritage Environmental Services, the nation’s largest privately-held environmental services company, operates all of the shingle recycling locations for Owens Corning. To encourage participation and remain cost competitive, Heritage targets recycling rates at or below prevailing landfill costs. Owens Corning and Heritage hope that making shingle recycling more financially feasible will not only promote the program, but help it expand.

“It’s about efficiency for the contractor,” said Martel. “Nobody wants to drive three hours to a dump because it wastes

autumn 2011

s P e c i a l f e at u r e

time, gas and money.” Heritage currently has two locations in the Chicago suburbs: Forest View and Lemont. By opening satellite locations in other areas, as they plan to do in Crete, Tinley Park and elsewhere, the excuses not to take part start to disappear.

Samples Analyzed All deposits are weighed and analyzed. “Everyone that comes in with shingles, we take samples when they scale in,” said Bob Kras, Recycling Manager at Heritage Environmental. “We sample every layer of every load and test for asbestos.”

During the 1960 s and ‘70 s, some manufactures used asbestos in the production of the fiber matt contained in their shingles.

Often when a homeowner reroofs their home, a new layer of shingles goes down over the old, resulting in three, four or even five layers of shingles. Each of these must be examined. Thus far, this diligence has netted two asbestos hits in the nationwide program.

At Heritage’s Forest View location, most of the sorting is done by hand. The shingles are cleaned and stripped of nails, flashing and other foreign objects before being ground down. A massive 120 by 50 foot tented structure can enclose hundreds of tons of the mulched asphalt, which by this point is the consistency of very fine playground bedding.

Program Is Growing The shingle recycling program has been running in Chicago since last June and is currently active in several other markets, including Cincinnati, Denver, Fort Wayne, Indianapolis, Minneapolis, and Nashville, with additional market expansion planned in the future.

As the recycling of roofing shingles accelerates, there might even come a time,

and quite soon, that the demand in the road paving market is sated. Asphalt, virgin or otherwise, only makes up 5% of macadam, with aggregate material comprising the bulk. Owens Corning may explore reusing the recycled asphalt in more shingles. After all, asked Kras, indicating the impressive stockpile of mulched asphalt, “Why throw this away? This is good material.” $

Paving Companies Involved Heritage then sells the asphalt to paving companies. “The big benefit is that this asphalt is much less expensive compared to virgin asphalt,” said Kras. Asphalt mixes with recycled shingles cost about $40 per ton, compared to $400 per ton of virgin asphalt.

“When you look at the chemical makeup of this, the asphalt itself does not break down,” said Kras. “Sunlight deteriorates all the other materials but improves the asphalt.”

Research has shown that the aged, sun-baked asphalt from residential rooftops actually improves roadway hotmix performance by increasing its resistance to wear and moisture, while decreasing deformation such as rutting and cracking.

autumn 2011

ChiCagoland BuildingS & environmentS

29