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“The Voice of the Housing Industry” for 75 Years

GREATER CHICAGO

Building News WWW.HBAGC.COM | SUMMER 2015

A publication of the Home Builders Association of Greater Chicago

AT HOME WITH MARTY

SYNCING WITH NATURE

CELEBRATING 75 YEARS

PARIS - CITY CHAPTER

2016 GARDEN & OUTDOOR

HBAGC HISTORY

PRESIDENT

LIVING TRENDS

1960 - 1989


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Wintrust Mortgage r congratulates the HBAGC fo 75 years of service to the Chicagoland market!

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9700 W. Higgins Rd. • Ste. 300 • Rosemont, IL 60018

This program is limited to the following areas: Chicagoland, Northwest Indiana, and Southern Wisconsin. Program rates, terms, and conditions are subject to change at any time. All approvals are subject to underwriting guidelines. Wintrust Mortgage is a division of Barrington Bank & Trust Company, N.A., a Wintrust Community Bank NMLS# 449042. © 2015 Wintrust Mortgage. 150502256TL 2 SUMMER 2015 | HBAGC.COM


GREATER CHICAGO

Building News SUMMER 2015 | 75 YEARS OF HBAGC HBAGC BUSINESS OFFICE 1525 West Homer Chicago, IL 60642

The Ultimate in Luxury and Convenience

Greater Chicago Building News is a publication of the Home Builders Association of Greater Chicago published quarterly by Brandit360 for HBAGC members. Articles appearing in HBAGC Building News not dot necessarily represent the opinions of HBAGC. Under all circumstances, copyright remains with the original photographer or author. ADVERTISING & EDITORIAL INFORMATION Judith L. Nelson 847-778-8634 judithlnelson@aol.com Hans Nelson 773-676-2449 advertise@HBAGC.com HBAGC encourages members to submit articles for publication. Articles should relate to members and the homebuilding industry. For questions or to submit an article send an email to advertise@hbagc.com. PUBLISHER Brandit 360 224-633-9597 info@Brandit360.com CONTRIBUTING EDITORS Rita Unzner - HBAGC Executive Officer Susanne Tauke - HBAGC Member - New American Homes, Inc. Chantel Beauregard - HBAGC Member - Brandit 360 GRAPHIC DESIGNER Chantel Beauregard - HBAGC Member - Brandit 360 COVER PHOTO Michael Martinez

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Congratulations to

Home Builders Association of Greater Chicago on your 75th anniversary!

LIFE AFTER FOOTBALL Our Mission

What We Offer

RPFPC aims to support local youth academically and

Academic Scholarships

athletically through charitable endeavors. Through

RPFPC offers high school student-athletes financial

regular engagement and interaction, we are proud

support at a collegiate institution that does not offer

to give back to the community that has shown our

athletic scholarships. It is awarded to two deserving

players and members tremendous support over the

individuals who have demonstrated academic success

years both, on and off the field, while setting the

and outstanding character throughout their high school

standard for other chapters across the nation. Most

careers.

importantly, we are committed to developing and strengthening our programs, which provide youth with safe and proper playing equipment and support college tuition costs to ensure the academic and athletic success of deserving young individuals.

Win a Trip to the 2016

PRO BOWL in

Honolulu, HI Visit www.rpfpc.com for details.

Football Equipment Grants RPFPC’s Football Equipment Grant Program provides local youth programs with safe and proper playing gear. The grant is annually awarded to youth or high school football programs that are in need of new equipment.

54 W. Downer, Suite 102 B | Aurora, IL 60506 | (630) 701-9399 | ww.rpfpc.com 4 SUMMER 2015 | HBAGC.COM


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CONTENTS

8

ASSOCIATES MONTH ASSOCITAES ARE ESSENTIAL TO OUR ASSOCIATION

11

TOTO EARNS PRESTIGIOUS DECLARE LABEL

22

PEOPLE & PROJECTS WHO’S BUILDING NOW

BUILDING CHICAGO COMMUNITIES: “JEFFERSON PARK CASE STUDY BY 123 REMODELING”

IN EVERY ISSUE PRODUCT SPOTLIGHT - PAGE 10

GUEST EDITORIAL - PAGE 34

SALES & MARKETING - PAGE 38

MARKET NEWS - PAGE 40

6 SUMMER 2015 | HBAGC.COM

14

CITY BUILDERS JOIN WITH SUBURBAN BUILDERS TO FORM THE LARGEST BUILDERS ASSOCIATION IN THE U.S.


24

AT HOME WITH MARTY PARIS SEDGWICK PROPERTIES DEVELOPMENT CORP.

26

2016 GARDEN TRENDS SYNCING WITH NATURE

30

MEMBER SPOTLIGHT

MATT JANS & ANDREW VENAMORE TEAM TOGETHER

32

GUEST EDITORIAL

CHANGES AFOOT IN THE STILL EXCITING—AND ALWAYS CHALLENGING—CUSTOM HOMEBUILDING INDUSTRY BY ERIC PICKELL GOVERNMENT AFFAIRS - PAGE 35

BUSINESS TIPS - PAGE 37

EVENT CALENDAR - PAGE 44

MEMBER MARKETPLACE - PAGE 46


PRESIDENT’S MESSAGE

“IF YOUR NOT IN OUR ASSOCIATION YOU ARE INVISIBLE TO AN 8 COUNTY ASSOCIATION INCLUDING THE CITY OF CHICAGO." - Pat Coveny, 2015 HBAGC President The next time you come to an HBAGC event, look around. More than half of the people you see will be associate members. These are people who are essential to the home building process and help enable our industry to provide the American consumer with an unrivaled selection of quality homes. Our associate members are subcontractors, sales and marketing specialists, architects, interior designers, title and settlement experts, lawyers, financial services, product suppliers, manufacturers, and many more who are essential to the challenging task of providing housing for a growing population. In recognition of the thousands of associates who volunteer their time and services to NAHB and our local association, NAHB Chairman Tom Wood has designated September as Associate Member Appreciation Month.

NAHB has always appreciated the dedication and enthusiasm of its associate members, but in today’s unsettled – and unsettling – housing market environment, we appreciate that dedication and commitment more than ever. During September, and every other month, for that matter, we urge all HBAGC members to get to know one another better, learn about each others’ businesses and whenever possible, to do business with other members. Our Association is strong when individual members are strong, and doing business with other members is a great way to strengthen the association while ensuring that the people you work with understand the issues and concerns that affect your day-to-day operations.

ASSOCIATES ARE ESSENTIAL TO OUR ASSOCIATION

Architects Developers Engineers Electricians Framers Land Planners Plumbers & Plumbing Manufacturers Brick Manufaturers & Masons Drywall Manufacturers & Installers Siding Manufacturers & Installers Insulation Manufacturers & Installers Plumbing Manufacturers & Plumbers Roofing Suppliers & Contractors HVAC Manufacturers & Installers Utility Companies

Cabinet Manufacturers & Installers Appliance Manufacturers & Installers Hardware & Fixture Manufacturers Carpet Manufacturers & Carpet Installers Plumbing Manufacturers & Plumbers Delivery Companies Truck Drivers

8 SUMMER 2015 | HBAGC.COM

Real Estate Agents Advertising & Marketing Agencies Mortgage banks Attorneys Title Companies Insurance Companies Moving Companies Newspapers

Interior Designers Furniture Companies Window Furnishings Suppliers Lighting Manufacturers Cable Companies Electric Companies Gas Companies

Paint Manufacturers & Painters Door Manufacturers & Installers Window Installers & Glass Manufacturers Lumber Manufacturers Plastics Manufacturers Flooring Manufacturers & Flooring Installers Delivery Companies

Deck Manufacturers & Installers Garage Door Manufacturers & Installers Gutter Manufacturers & Installers Fencing Installers & Manufacturers Concrete Suppliers & Contractors Asphalt Manufacturers & Contractors Nurseries Landscape Suppliers & Contractors Hardscapers


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**2% Discount: Cannot be combined with any other statement discount. To be eligible for the 2% discount, you must register your NAHB affiliation and Lowe’s® Accounts Receivable (LAR) account per the instructions provided, make a purchase with your LAR account by 12/31/2015, and comply with all terms and conditions of your LAR account. Allow one to two complete billing cycles for your registration to be processed and for your discount to appear on your billing statement. 2% discount will be automatically deducted from your statement at billing (discount will not take effect until Synchrony Bank fully processes your account registration). Excludes Lowe’s® Business Account Card, Lowe’s® Consumer Credit Card, Lowe’s® VISA® Accounts, Lowe’s® Business Rewards from American Express Card and all Lowe’s® Canada Credit products. *5% Discount: Get 5% off your single-receipt purchase made in-store or on Lowes.com of eligible in-stock or Special Order merchandise charged to your Lowe’s Business Rewards Card from American Express or Lowe’s® Business Account or Lowe’s® Accounts Receivable. Look for the discount or discounted price on your receipt. Except as set forth below, if applicable, 5% discount will be applied after all other discounts. Cannot be used in conjunction with any other coupon, discount or promotional offer including Lowe’s military discounts; Lowe’s employee discounts; Lowe’s volume discount programs such as Quote Support Program “QSP”; government contract pricing; or any other special pricing programs. Cannot be used in conjunction with the following products and/or services: extended protection plans; shipping, assembly or delivery charges; gift cards; service purchases; previous sales; Weber products; or Dacor®, ICON® or Fisher & Paykel® appliances. Excludes Lowe’s® Consumer Credit Card, Lowe’s® VISA® Accounts and all Lowe’s® Canada Credit products. *,**General Terms for Both Discounts: Offers valid now through 12/31/2015 in U.S. stores and Lowes.com. Discounts applicable to commercial purchases only. Offers/discounts provided by Lowe’s, and not Synchrony Bank. Subject to credit approval. Lowe’s reserves the right to discontinue or alter these terms at any time. †Standard delivery rules apply. ©2015 Lowe’s. LOWE’S and the Gable Mansard Design are registered trademarks of LF, LLC.


PRODUCT SPOTLIGHT

Bosch Tools debuts new 12V Lithium-Ion battery, same weight with 25% more runtime Maximum runtime is what trade professionals want from their power tool batteries – for every job. And when greater runtime comes in the same size package as batteries with less longlasting power, it’s a win/win for everyone. That’s the story of the Bosch BAT415 12V Li-on 2.5 Ah Battery Pack – more power means 25 percent greater runtime, no increased weight and a cylinder shape that makes the battery easy to use anywhere. “Our objective was to build a 12V lithium-ion battery pack that would address our customers’ request for more power in the same-size package,” said Tim Truesdale, product manager, cordless, Robert Bosch Tool Corporation. “We delivered on increased runtime at the same weight, which is an achievement. The fact that it fits into our easy-to-use 12V cylinder battery design is added value to the customer. It’s easier to use.” The BAT415 battery offers single cell monitoring, which maximizes the performance of each individual cell for longer runtime. Low-resistance cells deliver the performance increase versus standard 12V 2.0 Ah lithium-ion pack batteries. The technology allows Bosch to deliver more energy per cell without increasing

overall battery size; weight is .40 lbs. Bosch 12V batteries continue to be the most compact and lightest weight within the segment. Target applications for 12V tools using the Bosch BAT415 battery pack include sawing, cutting, sanding, drilling and screw driving. Like all Bosch 12V lithium-ion batteries, the BAT415 is compatible with the complete Bosch 12V tool system. To learn more about the Bosch BAT415 12V Lithium-ion 2.5 Ah Battery Pack or to find a local dealer, visit www.boschtools.com or call 877-BOSCH-99. Check out www.bethepro.com for additional tips and videos.

Congratulations to HBAGC on 75 years of excellence.

From your partners at 10 SUMMER 2015 | HBAGC.COM


PRODUCT SPOTLIGHT

TOTO Is The First Plumbing Manufacturer To Earn Prestigious Declare Label TOTO has achieved another plumbing industry first by offering material health evaluations for an initial six high-efficiency toilets (HETs). TOTO is now the only plumbing manufacturer whose products have earned the International Living Future Institute’s (IFLI) Declare label and are listed in the Declare Products Database. Declare Labels Often compared to the nutritional labeling found on packaged food, Declare labels focus on specific information important to consumers and building industry professionals by offering a transparent platform for the disclosure of materials, chemicals and elements known to pose risks to human health or the environment. After a thorough investigation of their constituent materials, TOTO’s initial six HETs have been listed in the Declare database as Living Building Challenge Compliant or “declared.”

customers with informed choices about our products and a profound understanding of the ethic upon which we operate.” During the rigorous Declare label evaluation process, TOTO learned that changes to its product line would be required to be Living Building Challenge Compliant. The polyvinyl chloride (PVC) in its toilets’ rubber flappers, plastic refill tubes and seat pads is deemed hazardous. As a result, TOTO immediately began working with its vendors to produce PVC-free flappers, refill tubes, and seat pads. TOTO now offers PVC-free high-efficiency toilets, which are Living Building Challenge Complaint. “TOTO is a true leader in product transparency and material health. Not only are they the first plumbing manufacturer to disclose their full product formulation for Declare, but they worked diligently to remove Red List components during the review process, which earned them another first,” said James Connelly, Director, Living Products Challenge. “TOTO has the only toilets in the Declare database that comply with the Living Building Challenge, the world’s most advanced sustainability certification in the built environment.” “TOTO has incorporated the information from our Declare labels in our holistic approach to transparency with our partner Sustainable Minds, adding the material health impacts to the existing environmental impacts for our products in the market,” said Strang. Sustainable Minds Material Health Overviews Using its new Declare labels’ data as the foundation, TOTO partnered with Sustainable Minds to develop the next in the company’s suite of Transparency Products – the SM Material Health Overview (MHO). Based on the award-winning Transparency Report, which the partners’ earlier innovated in EPD design and delivery, TOTO’s new PVC-free MHO is a strategic marketing and lead generation tool. Designed to inform safer purchase decisions, it makes material health evaluation information meaningful by describing what TOTO is doing to improve the material health of its products. TOTO’s new MHO delivers functional and material health attributes for its PVC-free products in one place and is available as a standalone MHO report. “Manufacturers are being asked for many types of product data, each delivered in a broad range of formats and not always found in the same place,” said Terry Swack, Founder and CEO, Sustainable Minds. “This makes design and purchase decisions exponentially more complex. Sustainable Minds is committed to making product transparency reporting simple and understandable for manufacturers and their customers.”

“TOTO is pleased to be the first market mover in our industry to earn the IFLI’s Declare label, providing insight into our efforts to reduce the health and environmental impacts of the materials and processes TOTO’s new PVC-free MHO may be viewed on the Sustainable Minds’ used in the manufacture of our world-class bathroom products,” said Bill Strang, President of Operations for the Americas, TOTO USA. “Trans- website in the TOTO Showroom. parency is the cornerstone of all our initiatives and key to providing


Build It with a Brand from the Merchandise Mart by LUXEHOME, Merchandise Mart

Amid the iconic downtown architecture, sits one of Chicago’s greatest splendors: the Chicago Merchandise Mart. Situated along the river’s prominent skyline, the Merchandise Mart is the best resource for luxury custom home builders and developers to complete their interior space. As the hub for the latest and best in interior design, home building and renovation, LuxeHome® offers more than 125,000 square feet of luxury branded showroom space across multiple floors. Each LuxeHome Boutique, in particular, provides personalized

12 SUMMER 2015 | HBAGC.COM

service and the finest products for home building and renovation from the most recognized and respected manufacturers worldwide. Located on the first floor of the Mart, LuxeHome offers discerning homeowners and trade professionals one-stop shopping convenience with access to the finest kitchen, bath, tile, lighting, cabinetry, appliances, countertops and much more. Brands such as Miele, Sherwin-Williams, Poggenpohl, ROHL, Wolf-Sub Zero, and more display the widest selection of products to suit all up-


scale design styles, from modern European to classic American to traditional English. LuxeHome continues to grow with the addition of the Pella Corporation, who in early winter 2015, will open a 7,000-square foot custom-designed showroom, and Lefroy Brooks and Cooper & Graham, who recently renovated and expanded their showroom, both in LuxeHome. “Pella adds a major new product category to the roster of premier kitchen, bath and building products boutiques that make up LuxeHome,” said Katherine Flaherty, vice president, Vornado | Merchandise Mart. “The addition of Pella further establishes LuxeHome as the preeminent destination for homeowners, interior designers, residential architects and luxury custom home builders to source products for home building and renovation.” In addition to the extensive lineup of premier brands, each boutique offers knowledgeable designers who are available to assist with all phases of each design project. And when planning a visit, LuxeHome offers a personalized concierge service. The LuxeHome Concierge will assist your and your clients in finding specific products and brands. The LuxeHome Concierge does this by guiding guests through showrooms, and will set up appointments with showrooms for a hands-on product experience. “We understand the demands on today’s builders to provide luxury brand names and high-end amenities,” said Flaherty. “LuxeHome brings together builders with the brands buyers want, and makes it easy for both builder and buyer to experience the products hands-on.”

Conveniently located on the Orleans Street side of the building in the Design Resource Center, Suite 163, the LuxeHome Concierge can help builders customize a shopping experience for themselves, their clients and their interior designers. The concierge is available daily, Monday through Friday, 9 a.m. to 5 p.m., and Saturdays from 10 a.m. to 3 p.m. To schedule your next appointment at LuxeHome, contact the Concierge at 312-527-7939 or luxehome@ mmart.com. This fall, LuxeHome and The Design Center at The Mart will come together to host Design Chicago, the Midwest’s largest residential design conference and inspirational trade fair. The two-day event will welcome leading interior design, architecture, and luxury custom home building professionals for programming that is both educational and innovative. During Design Chicago, a who’s who of the design industry will come together to celebrate on the evening of Tuesday, October 6 at the Chicago VIP Luxury Gala. Tickets are now on sale to attend this year’s Gala, which will feature the inaugural induction of four residential design industry icons into the Merchandise Mart Hall of Fame. To register for Design Chicago and reserve your ticket for the Gala, visit DesignChicagoEvent.com. LuxeHome and The Design Center at The Mart boutiques are open for shopping Monday through Saturday. For more information, visit www.luxehome.com and www.merchandisemartdesigncenter.com.


City Builders Join with Suburban Builders to form the largest builders association in the U.S. by Chantel Beauregard, Brandit 360

The 1960’s The Home Builders Association of Chicagoland (HBAC) ushered in the 1960s with the annual Modern Living Home and Flower Show, which turned out to be a historic event in 1960. On November 18th, the 16-day Modern Living Home and Flower Show opened as the first public event held at McCormick Place, a new $35 million lakeside convention center that housed a 400,000 square foot exposition hall and the 5,000-seat Arie Crown Theater. It was the first time HBAC had the space to build model homes on site for the annual show. After gathering the records of homebuilders across the Midwest, the association set out on a quest to identify a house that exemplified the typical design of a Midwestern home. The construction of this house on the showroom floor inside the convention center was led by Joseph S. Giase, the chairman of HBAC’s committee to build the house. The Modern Living Home and Flower Show was directed by HBAC’s Grover McDonald and actually began outside with a parade led by actor and comedian, Jerry Lewis. The show drew a million visitors, who were interested in seeing the vast new convention center, as well as the latest advances in home building and home improvement materials. In addition to five model homes, the exhibition featured a bomb shelter and a vast tropical garden complete with giant coconut palm trees and a wide array of other trees, plants, landscaping rock and patio brick.

14 SUMMER 2015 | HBAGC.COM

In October of 1961, the association elected a new president, Mr. William J. Moreland, a prominent builder, partner in James C. Moreland & Sons, Inc.., and president of other realty and building companies. Mr. Moreland had two primary objectives. His most important priority was to ensure that HBAC builders had the resources and training to provide all of the technological advances, services and amenities of a giant corporation while maintaining a local, personal touch. Secondly, Moreland wanted to update and streamline building codes across all identified service areas so that builders could construct the same home in different locations without hitting a brick wall of antiquated or conflicting building codes. Joining Moreland on the board of HBAC were two new vice-presidents, Joseph H. Anderson and Bruce S. Blietz, treasurer, Albert G. Collins and secretary, Harry Quinn. The association also elected new directors who would serve for a two-year term: Howard Aldrich, George Arquilla, Jr., Albert Collins, Jack Hoffman, Ed McCabe, Clarence Medema, N. Noble Ridker, Al Sakowicz, Louis Spero, and Ralph Symkal. Many of these HBAC leaders were also active and held leadership positions in other state and national builders associations. In the fall of 1961, HBAC hosted 36,000 builders for a convention that featured demonstrations


on the latest trends in building techniques, and introduced new prefinished hardwood flooring and aluminum exteriors. The convention featured over 30 seminars, with topics ranging from federal housing policies and business management to home design, land planning, and market analysis. In July of 1962, HBAC moved its headquarters to the new Oakbrook Professional Building at 228 N. Lasalle Street to provide a more central location for its members in eight counties. At that time, HBAC had become the largest builders association in the United States. In December of 1962, HBAC hosted its annual inaugural banquet and winter party at the Conrad Hilton hotel. President More-

land received an appreciation award for his time and achievements, most notably the relocation of the association’s headquarters. HBAC treasurer, Howard A. Aldrich, and mortgage banker, Raymond Jensen were also award recipients. In the fall of 1963, HBAC elected new officers for 1964. John A. Stastny, president of Stastny Builders of Berwyn, was elected president. Other officers included first vice president, Irvin A. Blietz, second vice president, George Arquilla, Jr., treasurer, Albert Frank, and secretary, Jack Kepler. In September of 1964, HBAC announced a new program designed to self-monitor the home building trade. The Registered Builder Program allowed homeowners a platform in which to file a dispute against builders and other industry professionals, and provided homeowners with a contract that would specify certain building specifications, including a completion date. The program provided a means of accountability and uniform industry practices for association builders. On August 27, 1965, a tornado ripped through Chicago causing $7 million worth of damage and damaging several subdivisions built by HBAC members. Homeowners were impressed with how quickly these HBAC members completed repairs and even volunteered to help repair and rebuild homes that were built by other companies. HBAC president, John A. Statney stated that these members were prime examples of the organization’s dedication to the community. continued on page 18


2015 GOLF OUTING

16 SUMMER 2015 | HBAGC.COM


The spring of 1967, with new president, George Arquilla, Jr. at the helm, HBAC published Chicagoland’s New Home Directory, which provided information on over 50 Chicago suburbs and descriptions of new homes.

HBAGC members. HBAGC also published a series of articles in the Chicago Tribune to inform prospective homebuyers on a variety of topics related to homeownership and home building.

In the spring of 1968, HBAC launched a new marketing campaign called “The Name of the Game is Living”, a catch-phase that would be repeated in newspaper advertisements and stories across the country. The purpose of the campaign was to enable builders to better market new housing and products across the country, and to improve the reputation of builders in general. Officer information for 1968 is comprised of R.K. Widdecombe Jr., who served as Executive Vice President.

In the 1970s, HBAGC continued their full calendar of events, including seminars, football outings and meetings. In September of 1970, HBAGC’s general membership meeting was held in the Furniture Mart, and was focused on Planned Unit Development and gaining the cooperation of village boards and plan commissions. Speakers included Bruce Blietz and Al Hoffman. In 1971, Lynn Krause was vice president of the HBAGC.

The Homebuilders Association of Chicagoland rang in the New Year of 1969 with a new consolidation and a new name. The association, led by president Jack Hoffman, joined with the Northern Illinois Home Builders Association to form the Home Builders Association of Greater Chicago, a new regional association.

The 1970s

In 1972, HBAGC formed a new committee to develop a program to provide better protection to homebuyers who found defects in the original construction of their homes. The head of the committee was William Kennedy of Kennedy Brothers. Also spearheading the new program was Robert Faganel, president of the Home Builders Association of Greater Chicago, and Robert Arquilla, Past President of the Home Builders Association of Chicagoland. The new bonding program served two primary purposes: to provide funds to repair defects that were the fault of the builder, and to improve and repair the building industry’s reputation with regards to

The newly appointed president Jack Hoffman was the developer of Hoffman Estates. He and his dad Sam built their first homes in Phoenix to provide homes for the returning GIs. Hoffman built 5,000 homes in the town incorporated in 1959 as Hoffman Estates. In June of 1969, HBAGC hosted the first Modern Living and Garden Show in Chicago since the historic show in 1960. The show, led by home show committee chairman, Joshua Muss, was held at the International Amphitheater. The center of the amphitheater boasted a landscaped area complete with a lake and surrounded by model rooms displaying new interior designs.

Homes by the water. Furnished models open 12-4:30 p.m. Saturday & Sunday.

Cottages from $200,000s. Estate Homes from $400,000s. Waterfront Homes from $600,000s. In the summer of 1969, Jack S. Kepler took the lead in petitioning Congress to enforce a cap on the prime 40492 South Newport Drive, Antioch, IL 60002 newportcoveonline.com interest rate hike by private banks. Kepler identified inflation as the primary cause of declining annual build- The NEW Chain O’Lakes lifestyle. ing rates and began a letter writing campaign among

18 SUMMER 2015 | HBAGC.COM


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the quality of such repairs. In 1973, Robert Widdicombe, Jr. continued the association’s fight against contractor’s unfair pricing for association members. As proof of his success, HBAC received a settlement for $250,000 in a lawsuit against plumbing contractors who were unfairly hiking up prices for builders. In 1975, Don Dise was the president of the Home Builders Association of Greater Chicago, with Theodore Doufexis serving as executive vice president and Herschel Farr serving as associate executive vice president. In 1978, Ralph Harwood was president of the Home Builders Association of Greater Chicago. In 1979, Martin Bartling, executive vice president of the Home Builders Association of Greater Chicago, led a campaign to limit restrictive building regulations. His efforts led to a meeting with the major and commissioners from Cook County to discuss the regulations. The 1980s The 1980’s began with the fresh vision of HBAGC’s new president, Bruno Pasquineli. His goal was to make housing and homeownership affordable and accessible to prospective homebuyers at all socio-economic levels. He stated, “housing is not an economic issue but a social issue.” Pasquineli proposed changes in the federal government, with subsidies through tax breaks and other incentives, and in the banking industry, with an increase in the amount of disposable income a family is allowed to spend on housing. In the summer of 1980, several HBAGC members were inducted into the Housing Hall of Fame by the National Association of Home Builders in Washington, D. C. George Arquilla Sr. was honored for his modern construction designs and community development. Don L. Dise of Aurora was recognized for his development of communities that were friendly to the environment. John A. Stastny was honored for his continued devotion to the good of the community by taking measures to ensure that housing was affordable. In 1981, Edmund H. Sorenson, president of U.S. Shelter was elected as president of the HBAGC. In 1984, David Hill was elected as president. In 1987, master suites with elaborate master bathrooms were the popular home amenity. The HBAGC

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sponsored the construction of several beautiful examples of these new master suites in the Parade of Homes in Long Grove. That summer, HBAGC also sponsored the Excellence in Housing Design competition. In 1988, a brewing controversy over the legality of impact fees was the association’s main focus. After only the briefest of discussions the year before, the county quickly passed an ordinance to authorize the fees. The Home Builders Association of Greater Chicago and its attorneys maintained that they should have been given the opportunity to present their case prior to the passing of legislation. They filed a lawsuit that stated that the impact fees were illegal. In 1989, several HBAGC members received recognition for their outstanding contributions to the building industry. Executive Vice President, Martin Bartling Jr. received the Professional Builder’s 1988 Achievement Award for building leadership. Jack Hoffman was added to the Court of Honor of the Home Builders Association of Greater Chicago. Nick Snyder was appointed as HBAGC’s director of organizational development and training.

31632 N. Ellis Drive, Unit #213 Volo, Illinois 60073 USSHELTER.COM

From our family to yours, Cong�at�lations on 75 years Home Builders Association of Greater Chicago


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Today’s returning veterans should be given the opportunity for good jobs. That’s why Salute the Armed Forces started Veteran University. Veteran University attracts and prepares veterans nationwide for lifelong careers in the construction industry.

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PEOPLE & PROJECTS

Brandit 360 recently completed a project working with the Illinois Tollway, U.S. Army Reserve and Salute the Armed Forces in creating a Landing Page and Facebook Ad Campaign for the Veterans Career Expo that took place in the Chicagoland area on September 19, 2015. It was a pleasure “Doing Business with a Member”. Salute the Armed Forces Founder and HBAGC Member, Ed LaTourneau sought a creative Landing Page (website) for both Job Seekers and Employers to register for the event. The Facebook Ad Campaign was successful in reaching Chicago veteran and activeduty military residents and creating awareness to thousands of Chicagoland residents and businesess. For more information, contact Chantel at Chantel.B@Brandit360.com

22 SUMMER 2015 | HBAGC.COM

Amy Alexander is the Chicago area’s expert on digital marketing solutions for new construction home builders. Working for Builders Digital Experience (BDX), Amy is busy establishing relationships with home builders in the Chicago area. As an associate member of the HBAGC and PWB, Amy is excited to get involved with the organization and has already started planning educational opportunities for local builders. Additionally, she is a judge for the 2015 HBAGC Key Awards in November. When not consulting home builders, you can find Amy racing monster trucks with her son Caleb, testing out recipes she discovered on Pinterest, and working out at Orange Theory Fitness. She resides in Glenview with her high-school sweetheart husband, son Caleb and two kittens. For further information, connect with Amy at aalexander@thebdx.com


PEOPLE & PROJECTS

Building Chicago Communities: “Jefferson Park Case Study by 123 Remodeling”

Chicago with our multi-cultural collection of nationalities is often referred to as “The City of Broad Shoulders.” Well formed “communities” have been cited for geographic regions to highlight different areas of the massive population and square footage of the 3rd most populated city in the United States. From Andersonville to Wicker Park, Chicago boasts over 77 well-defined communities. Jefferson Park is a community well-known for it’s great geographic location as it’s a larger size, close to both expressways (I-90 and I-94) and a METRA/CTA Station for ease of public transportation (buses and trains), earning the nickname “Gateway to Chicago”. Located on the outermost of city limits, Jefferson Park consists of a unique combination of single-family homes, multi-unit apartment buildings and commercial businesses. Each city block in Jefferson Park will on average consist of 18-20 lots and each of it’s value will directly affect value of the entire city block. 123 Remodeling is a company headquartered near Jefferson Park and has completed numerous home remodeling projects in the community. With each completed project, homeowner’s instantly see their R.O.I. (Return On Investment), with elevated property value resulting in overall rise in value for the entire residential city block thus building value in the community. The following remodeling project by 123 Remodeling can be seen in full detail on their website http://123remodeling.com/project-gallery/gut-rehabs/ jefferson-park-gut-rehab/ and showcases from start to finish the entire process of a complete gut rehab project in the Jefferson Park community. 123 Remodeling took this run-down corner lot property which was sold as a “foreclosed” property and raised the value of the property from $145k to a current market value of $575k. The R.O.I. was seen in a 10 month turnaround time with thousands of man hours and tens of thousands of dollars of materials to build the net value of over $400k instantly raising the value on average of the Jefferson Park’s city block. Once an eyesore and detriment to the area, the property now a gleaming 2-unit (3bed/2bath, 3bed/1.5bath) residential building with completely renovated basement and attic, as a means raising the value of the community.


COVER STORY

AT HOME WITH MARTY PARIS

CITY CHAPTER PRESIDENT, FOUNDER SEDGWICK PROPERTIES DEVELOPMENT by Chantel Beauregard, Brandit 360

On a recent overcast Saturday morning near Park Forest, a suburb just outside Chicago, Illinois, Marty Paris, wife Kerry Paris, and their seven children, Conor and Martin III, 11 year old twins who are arriving from Cross Country practice, Jack, arriving from soccer practice, Maeve, Quinn, Grace, and Hugh or Dom, as Marty calls him, who is never far from his father’s leg, gather in the lush front yard of their home. The home, according to Paris, was built around the time of the Chicago World’s Fair. The Paris family purchased the home in 2003. The family purchased two lots adjacent to one another, remodeled the existing home on the inner lot and demolished the second home on the corner to create a beautiful space for the children to roam and play. Last winter Paris turned that space into 24 SUMMER 2015 | HBAGC.COM

an ice rink for the neighborhood children to play ice hockey. Kerry gracefully prepped and rounded the children for our cover photo. A task that for most may not have been easily done. It’s obvious she wears the hats of many and made it look effortless. Several of the children were scheduled to attend additional sporting events after our shoot. Kerry too, as she is the volleyball coach for Maeve’s team. Kerry serves on the board of River Forest Youth Baseball and Softball and participates in many other committees as well as school events. Marty is focused and displays the discipline of a father whose time is professionally subdivided. Come Monday morning, Marty will depart his


active family home and head to the bustling city to join his staff and organize the weeks business obligations. Marty’s philosophy for balancing work and home is devoting just as much time and effort to family on the weekends as the hours and effort spent during the week on business. Marty Paris has been actively involved in real estate development in Chicago since 1991. He successfully founded and formed Sedgwick Properties Development Corporation in 1996 and, in addition to rental properties, began developing for-sale condominium projects.

main focus this year has been the Affordable Requirements Ordinance which has taken a lot of resources. He foresees the HBAGC being heavily focused on government affairs over the next five years and would like to see growth in the association in order to do more business with associate members.

Marty joined the HBAGC in the late 1990s after spotting an article in the Chicago Tribune. At the time, he was building 20-40 residential units per year. “ A 20-40 unit builder versus a big city is a pretty lonely place to be” Marty recalls, “being a part of HBAGC gives builders more credibility, a different level of magnitude and it’s nice to know you have the support from national.”

Sedgwick Properties has successfully developed multiple residential and retail properties to date and currently owns and manages many of the rental properties. In a relatively short time, Marty Paris has grown Sedgwick Properties into a rapidly rising real estate company that has established itself in the Chicago market as a leading neighborhood developer, architect and builder of upscale urban residences. Through the building industry’s recent recession Sedgwick Properties has managed to maintain the same volume, “the projects are smaller in size but there are more of them.” says Marty. His office staff has grown to a team of over 25.

NAHB has played a big part in the recent ARO (Affordable Requirements Ordinance) battle providing financial assistance, knowledge and expertise. As City Chapter President, Marty’s

Marty Paris has an Economics degree from Drake University with an emphasis in Finance and serves as President on the board of the Home Builders Association of Greater Chicago City Chapter.

Your Key to Crystal

Real Estate Photography FOXVALLEYMEDIAARTS.COM


SYNCING WITH

Nature

2016 Garden Trends Report by Chantel Beauregard, Brandit 360

G

ardening has transformed into a connected lifestyle in 2016. The rising millennial generation is constantly plugged in.

These eight new trends show ways the gardening and outdoor living industries can lure future consumers – and their digital accessories – outside and connect garden hobbyists with a broader community. “Consumers are seeking experiences that enhance their wellbeing and support their busy lifestyles,” says Susan McCoy, president of Garden Media. “When used together, technology can bring people into nature and connect one to the other.” The report says that consumers are merging technology with nature, not as a distraction, but as a way to explore, educate and entertain. “Consumers are constantly connected, and that’s not a bad thing. It’s time for the industry to fully embrace technology and all it can do for the garden,” says McCoy. “The more consumers learn about nature, the more they will grow to care about it.” Being in sync with nature is the first step in a healthy and rewarding lifestyle, according to the report. People have a passion for preserving the earth, and any small change in home landscapes can have a big impact.

26 SUMMER 2015 | HBAGC.COM


GARDEN MEDIA GROUP RELEASED ITS ANNUAL GARDEN TRENDS REPORT FOR 2016. SYNCING WITH NATURE IDENTIFIES EIGHT CONSUMER TRENDS THAT WILL SHAKE UP THE GARDEN AND OUTDOOR LIVING INDUSTRY THIS COMING YEAR. 1. Connected greenery: We walk, talk and sleep with our phones. Now, people are getting plugged-in outside, too, syncing garden habits with technology. People want to be successful with plants without a lot of work or information. To do this, they are turning to technology to help grow plants both indoors and in the garden. Modern systems, like the sleekly designed Nest, work on the ‘one home, one app’ model. They are focused on ease of use and connectivity in which people can wirelessly and remotely control what happens in their home and garden. 2. Natechure: The intersection of two of the hottest trends in education: technology and nature. It combines virtual and augmented reality to engage kids with gardening, health and fitness in fun, new ways. Whether running, playing, storytelling, or even geocaching, this trend has the

potential to mobilize a new generation of nature lovers.

their tastes. They want to engage with outdoor environments in a more hands-on way.

3. Welltality: Horticulture is intrinsically tied to health and wellness. From what we eat, to our environment, people want to be happy and healthy in mind, body and soul. From cleaning the air of volatile organic compounds to providing fresh antioxidants at our fingertips, costa farms’ o2 for you® and brazelberries’ collection of edible berries continue to offer health benefits from plants in our homes and gardens.

Take a look at “agrihoods”, a sweeping trend of residential developments where a working farm is the central feature. From Arizona’s Agritopia to Illinois’ Prairie Crossing, developers are realizing the multitude of benefits that come from building sustainable communities with access to real food.

The Welltality trend in the hospitality industry, is cashing in on the benefits of plants, too. Hotels are becoming destination locations with living walls, indoor forests and serving locally grown food. From helping people heal faster, concentrate better and elevating people’s moods, greenery is incorporated throughout the guest experience. 4. Makers’ lifestyle: The diy movement gets a facelift as people shift from “doing” to “making.” Homeowners and renters alike want to experience outdoor living in a way that maintains a sense of home and familiarity but personalized to

5. Backyard boldness: taking an individualized approach to outdoor living, people are turning to new customization, lighting and movement to add a sense of whimsy to their yards. Transforming porch swings and swimming pools, homeowners are moving away from subtle, minimalist aesthetics toward designs that heighten sensory appeal. Toss boring planters and make a statement with a combination LED and speaker container. 6. Layered landscapes: people want to bring their yard back to a more natural habitat as each plant serves a purpose in supporting local, natural ecosystems, pollinators and other wildlife. Consumers need to plant layers of majestic trees, understory trees, shrubs, flowers, native grasses and ground covers that provide food and habitat for


a variety of wildlife, from insects to birds. Creating a safe environment from the ground up is key for a healthy ecosystem. People want a hardy combination of trees, conifers, shrubs and perennials, rather than endless meadows of perennials. As people’s passion for preserving the earth increases, they will see and purchase plants for their function as well as their beauty. A grass roots gardening movement is just beginning and with it, a relaxed look and feel. 7. Petscaping: Pets run through the lawn, roll in it, dig in it and often eat it so it’s no wonder that pet owners are thinking more and more about how to make their gardens pet friendly and pet safe. Petscaping to protect dogs and cats from poisonous plants and harmful chemicals is as important as protecting precious plants from pets. Pet owners spend about $60 billion on their pets each year for food, toys and products to keep their four-legged friends healthy and safe. Creating a chemical free environment from the ground up is key for a safe lawn and garden. With 1 in 3 dogs getting cancer each year, pet parents believe, like eating nutritious food, the safest practice is to use organic lawn products and limit the use of potentially harmful garden chemicals. Espoma’s safe paws program educates pet parents on having a lush and chemical-free lawn by switching from synthetic fertilizers to organic lawn foods that are safe for people, pets and the planet. 8. Precious resources: the resources that we depend on to garden, particularly water, are limited and need protection.

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28 SUMMER 2015 | HBAGC.COM

Brownscaping is becoming more acceptable. In California, cities and towns have been ordered to cut water consumption by 25%. How to garden with less water continues to be a top priority. The new Keyhole Garden from Vita Gardens uses up to 80% less water than a traditional garden bed. Based on an ancient African gardening technique of growing in dry conditions, it combines a raised bed with a built-in composter that turns biodegradable scraps into rich soil. People are making small changes in the landscape that have a big impact on Earth’s precious resources. Drought tolerant plants such as Costa Farm’s new Drop and Grow sedum tiles and the new Desert Escape collection of cacti and succulents are smart choices to save time and water. Being mindful of Earth’s precious resources enables brands to foster a new connection with consumers and create a better environment.


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MEMBER SPOTLIGHT

STRATEGIC ALLIANCE MAXIMIZES EFFICIENCIES FOR RESIDENTIAL AND COMMERCIAL PERMITTING AND BUILDING PROCESSES STREAMLINES MUNICIPAL PROCESS FOR RESIDENTIAL AND COMMERCIAL CLIENTELE and continues to be the “go-to” for small and national home builders alike for award-winning architecture. Venamore’s Mach 1 manages the permitting process for Danley’s Garage World, Galaxie Home, Platinum Poolcare, and U.S. Waterproofing, averaging over 600 permits throughout Chicagoland per year, continually exposing his team to a multitude of municipal codes and zoning ordinances.

A

s the old saying never lets us forget: “Time is money.”

“Time is indeed money when it comes to coordinating the building permitting, engineering and design while working through the municipal approval process,” said Matthias Jans of Northbrook-based Matthias Jans Architect. Jans, together with Andrew Venamore of Mach 1, Inc., Northbrook, provide complementary, yet separate disciplines that work in tandem to keep residential and commercial projects moving forward with ease by managing the design, permitting and approval processes.

Realizing their combined potential, the duo decided to form a strategic alliance, blending their talents and sharing office space; and they haven’t looked back. A client’s project is taken from the point of sale through the design concept and into permit while the team handles nuances that can include building height restrictions, energy performance standards, fire protection and just about any other detail that can arise and possibly derail the permitting process. With a combined 55 years experience in their respective fields, Jans and Venamore have a keen knowledge of the intricacies of working with municipalities throughout Chicagoland. This moving target can be problematic for those not in the know. “Municipal codes are revised all the time,” said Venamore. “Codes published online may not be completely up to date and of course there is the interpretation of the code.” “Companies are not calculating the dollars spent to pursue permits,” said client George Frigelis, Vice President with Troy Realty of Chicago, who uses Jans’ and Venamore’s services on a regular basis.

The two men met years ago during their tenure at remodeling giant Airoom, LLC, Venamore as Director of Operations and Jans as Director of Architecture. There it was not uncommon to generate 250 permits for work valued at $33 million on an annual basis. It wasn’t until both men were on their own that they discovered blending their disciplines provided tremendous value for their collective clients.

“If you are missing one out of 28 documents for a submittal, you can lose three weeks. And that is if you aren’t even aware that the missing component is holding up the process! Companies still pay interest on projects during delays. Every month lost is another month of interest you have to pay and every month you can’t pull permits you are loosing money,” Frigelis added.

Before his 12-year tenure with Airoom, Venamore worked in the planning and zoning departments for various municipalities and since 1983 Jans’ firm was

“And I don’t have to mention that if you only conduct business once or twice a year in a municipality; forget it; you’re obsolete,” said Frigelis.

30 SUMMER 2015 | HBAGC.COM

For Frigelis and his partners, Jans and Venamore take care of the surveying, civil engineering, structural engineering and architecture. They serve as the primary contact instead of what is typical: assigning it to three or four different people or companies. “Nothing gets lost in the translation and we save valuable turnover time that translates into dollars,” adds Frigelis. Increased permitting requests, public pressure and lawsuits have made the zoning process more arduous. The practice of pursing zoning and design concurrently has become more popular and valuable to clients, who oftentimes have no idea what they are in for when they want to build a new home or build out office space for their business. As municipalities get taken to task and are sued more often, it takes a special expertise to finesse the process. Jans and Venamore together are the sole resource that can manage this process. From Permit Expediting and Zoning to Historic Preservation and Appearance Commissions, they supervise this delicate process with a positive outcome for all involved. Utilizing the expert knowledge of local surveying companies, civil engineering firms and structural engineers they move projects from the sale through to construction at the most expedient pace with limited involvement from their clients’ personnel. Jans and Venamore are pleased with the response they have received from current clients and have received many industry referrals. “The learning curve is steep,” said Rachael Randolph, Zoning Review Planner for the Village of Wilmette, who has been working with Venamore for the past several years. “He knows what we are looking for and understands the process. I do not know of anyone else who works in this capacity and knows the system.” While permit expediting is certainly an important part of any construction process, the service offered by Jans and Venamore is more comprehensive since it helps their clients internal development teams prepare for the start of construction through the use of a customized Client Tracking System. “We have numerous clients telling us how valuable this service is to them and that they wished we established this combined process years ago! They appreciate the streamlined, turn-key nature of this process,” concludes Venamore. And the process of moving jobs into the field at the “speed of sound” continues.


“REALIZING THEIR COMBINED POTENTIAL, THE DUO DECIDED TO FORM A STRATEGIC ALLIANCE, BLENDING THEIR TALENTS AND SHARING OFFICE SPACE; AND THEY HAVEN’T LOOKED BACK.” For further information contact either Jans at (847) 344-5297 or by email at mjans@matthiasjans.com or Venamore at (224) 519-4539 or by email at andrew@venamore.net.


GUEST EDITORIAL

CHANGES AFOOT IN THE STILL EXCITING— AND ALWAYS CHALLENGING— CUSTOM HOMEBUILDING INDUSTRY BY ERIC PICKELL

Following a three-year stint in outside sales in the Chicagoland area I returned to my homebuilding roots. Like my sister, Lisa, we grew up in the business, under the guidance of my mom, Tina, and my dad, Orren Pickell, who started in the industry 40 years ago. I guess you could say homebuilding, remodeling and maintenance are in my blood. For the past two years, I’ve been leading the Remodel Lite division of Orren Pickell Building Group, and, without a doubt, it has proven to be the best classroom I’ve experienced. I’ve always enjoyed being around my family and to work in the business with my sister and parents is not just a privilege but continues to be an honor. While my other colleagues may not share our last name they, too, are part of a family that’s dedicated to providing our customers with the highest quality work and a level of trust inherent in everything we do. Whether it’s to change a light bulb for a longtime client or remodel a kitchen for a growing family in a house we built years ago, Orren Pickell Building Group instills an unmatched level of expertise and integrity into every project. Our Remodel Lite division serves as a branch of our Maintenance Group. Together, we help keep each custom home we build in optimum condition inside and out. Knowing that we’ve taken care of a client in the past by building the home of their dreams makes the relationship with the homeowner strong, one that is steeped in some history. We also embark on projects of a higher scale like the aforementioned kitchen remodel, small additions, bathroom and basement renovations, screened in porches, you name it. That’s probably one of the best parts about my role here: I get to work on an amazing array of projects encompassing a wide range of styles from an in-law suite addition, to creating a basement man cave complete with a cigar lounge and wet bar. The team we’ve assembled to manage these projects is, in my humble opinion, the best in the business. First of all, my dad is still involved in a big way, and those forty years of experience seep through everything we do at Orren Pickell Building Group. We’ve been known for years as an honest firm that not only delivers what we promise, but also does so with 32 SUMMER 2015 | HBAGC.COM

care and concern for the client, maintaining a steady presence throughout each phase of a project. Clearly, anyone in the remodeling industry knows what a huge disruption these projects can be for a family. In many cases, we are literally tearing up someone’s home and even though the plans show a pristine and stunning finished product, the process is not always easy. Delays occur, surprises are discovered behind walls, client emergencies arise—life in general has a way of altering the process, which can generate stress. Orren Pickell Building Group’s collective years of experience, commitment to doing things right, and natural affinity for shepherding clients through the process allows us to minimize the worries accompanying a remodeling project. By being available 24/7, we’re here to assure, encourage, support and otherwise let our clients know that regardless of any problems that arise, we will get it right. Too often in our fast-paced, social media and online obsessed world, customer service fades into the background. For our company, customer service is the number one focus every day. Without an emphasis on serving the client we wouldn’t be who we are. I believe much of our success over the years can be attributed to our constant nature to raise the bar, to always do our best to exceed our customers’ expectations and, frankly, our own. We’re very fortunate to have won several awards over the years and that kind of recognition is priceless. This year, for example, the Orren Pickell Building Group received the incredibly prestigious “Best of Houzz 2015 Award” for Design. We were chosen from among 500,000 top-rated home building, remodeling and design professionals in the U.S. and around the world. That’s an awesome honor but also a reminder that we have a responsibility to maintain the high standards that helped us obtain an award like this one in the first place. I think what keeps us moving forward with strong innovation, unsurpassed problem-solving skills, and a solid and steady work ethic is the team we’ve assembled. Without the team my father has brought together over the years, we wouldn’t be the well-known and trusted custom home builder to which many clients turn to year after year. We have subcon-


tractors who’ve been working with us for over 30 years. This invariably translates from our trust in them and them in us, to the trust we’ve built with our clients. We all know in this business, without trust you’re dead in the water. If there’s a problem, we’ll fix it. If there’s a question, we’ll get the answer. If there’s an odd request, we’ll do our best to accommodate that. Why? Our clients expect that from us as much as we expect it from ourselves. We’re lucky to be working in so many areas of the Midwest. While much of our work takes place in Illinois, we also have projects going on in Indiana, Wisconsin, and Michigan. By working in multiple states, we have to be cognizant of different building code. Despite these challenges, we have the expertise and knowledge to achieve outstanding results. Sometimes I’m asked about what I like best about my work. If I had to name three things I’d say this: 1) I love interacting with our wonderful clients; 2) I really enjoy the transformations that occur during the design and construction phases; 3) Then, of course, the client’s reaction to the finished product. Furthermore, I am blessed and honored to be surrounded by the Orren Pickell Building Group team; I couldn’t ask for a better group of people to work with. All of these factors contribute towards making the construction industry exciting to work in.

own, where both of us grew up in Libertyville allowing us to live close to both of our families. We spend as much time as possible with family, friends and our dog, Max. I also love to travel, sail and be outdoors. About Eric Pickell After three years of working in outside sales in the Chicagoland area, Eric has returned to Orren Pickell Building Group to develop the Remodel Lite division. He spent a year as a construction leader in AmeriCorps for Sussex County Habitat for Humanity in Delaware. Eric uses his knowledge of sales and construction to help you through the remodeling process. His primary objective is to make the building process as smooth for you as possible while exceeding your expectations. He strives to make every project an enjoyable experience for our clients and our company. Eric graduated with a Bachelor of Arts Degree in Political Science from Purdue University in 2009. Eric loves working with his hands, travels as much as he can and enjoys gatherings with friends and family.

This has been a busy year for me outside of work as well. I was recently married to my wife, Megan, in April. We purchased a fixer-upper of our

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GUEST EDITORIAL

Action—having the talk with the under performer— that doesn’t produce results is simply activity not productivity. Performance is measured by results. Aesop rightly stated, “When all is said and done, more is said than done.” Performance, measured by results, is the metric of your leadership ability.

of Powerful Leadership

By: David Waits

Leadership is not a position! A local newspaper has a daily section titled “Progressions” allowing companies to publicly recognize employees who have been promoted to leadership positions such as general manager. The announcement is a very nice recognition for the new leader, but the promotion, in and of itself, doesn’t make the person a powerful, productive leader. The promotion does allow the new leader to exercise the roles and responsibilities of the position, but the promotion has very little to do with the leadership effectiveness of the person who received it. The power of the position and the potential of the leader are maximized only when the leader understands and leverages their performance, presence and profitability. 1. Performance is simply what you do. Like it or not, at the end of the day, or quarter, or year (or term if you are a politician), leaders are evaluated by what they get done and get done through others. Leaders are paid to get results. They are not paid for their intentions or mere activity. Intentions matter, results rule! “I meant to have a discussion with the underperforming team member but I just haven’t had a chance to talk to them,” says the well-meaning leader. The question is not, “Did you talk to them?,” the question is, “Did the underperforming team member’s behavior improve?” Intentions without actions create nothing. 34 SUMMER 2015 | HBAGC.COM

2. Presence is who you are. You can’t be one type of person and another type of leader! Although you can try to fool people, and maybe even obtain pseudosuccess for a short season, time will ultimately reveal the real you. Who you are, in the core of your being, will determine your presence. How big is your presence? Someone who is physically large is noticed when they simply walk into a room. Former NBA superstar Shaquille O’Neal is over 7 feet tall, weighing in at over 300 pounds. Everywhere he goes, his physical presence is commanding. When you enter a room, are you noticed? Are you respected? Do people want your input? Are you listened to? Are you commanding? Your presence is the key to positively and powerfully influencing people. Remember, a title or position does not a leader make. A position can be conferred on you. When something is conferred it is placed and bestowed on you by someone else. It is recognition of a position. Your position allows you to perform the roles and functions of a leader, but it is your presence that determines your effectiveness. Presence is inferred upon you. Something inferred involves a conclusion. People are concluding, “This person has a dynamic presence about them that makes me want to follow them!” Are you working as hard on who you are as you are working at the job you do? Your job functions are important and your ability to be highly functional in your job as a leader is directly proportional to your presence. Your presence increases as you grow as a person. When you become great at who you are, you become remarkable at what you do! Constantly invest time and money in personal growth. 3. Profitability is the value you bring to those you lead. The bottom line number reflects profitability, but it is more than that. Is your team profitable because of you? In the arena of interaction with those you lead, are you profiting from them? Are they better—more profitable themselves—because they are around you? Do you inspire? Do you motivate? Do you create synergy?

There are many world-class athletes playing in team sports who have tremendous individual skills, yet their team fails to obtain championship status. Michael Jordan was arguably the greatest basketball player of all time. His greatness wasn’t only measured by his ability to make baskets and his incredible desire to win, but by making others better. Many of his years in the NBA he was surrounded by, at best, serviceable role players. Yet his presence made others profitable because he brought out the best in his other team members. He helped raise the entire team to a winning, championship level. Your potential is maximized and your power exploited when you leverage: 1) Your productivity: your effective actions, not your noble intentions. 2) Your presence: constantly investing in yourself, stretching and growing to increase the size of your presence. 3) Your profitability: evaluate yourself by looking to the outcome—is there profitability in your leadership in the bottom line and are people better because they have been influenced by you? When you maximize the Three P’s—Productivity, Presence, & Profitability—it is likely you will not only show up in the “Progressions” section of your local newspaper, but also make the front page headline as well. If you are not on your newspaper’s front page, you will certainly make the headlines with the most important people in your sphere of influence—those who are following you. ABOUT THE AUTHOR: David Waits, founder of Waits Consulting Group, Inc., is a highly sought after consultant, speaker and author. As a proven expert in developing powerful initiatives that revolutionize culture, David helps his clients create a thriving organizational environment that facilitates rapid growth, innovative development and on-going profitability. He has worked with clients in all 50 states, including Quest Diagnostics, General Dynamics, Major League Baseball, Walmart, Walt Disney World and numerous other world-class organizations. For more information, visit www.DavidWaits.com.


GOVERNMENT AFFAIRS

State Laws You Should Know Bill Ward, Executive Vice President, HBAI

The primary focus of the Home Builders Association of Illinois is to promote and protect the housing/building industry through legislative and lobbying activities. Our mission statement couldn’t make it clearer. And, to this end, HBAI has maintained 60 years of success that our members can be proud of and can use to better their operations and, increase membership within their local associations. “State Laws You Should Know” is a weekly report of HBAI’s time and efforts spent at the Illinois Statehouse promoting and protecting you; the builder, the developer, and the associate. We will publish these articles to educate, enhance, and engage our members about the issues that influence how we build the best homes in the world. Please call or write if you would like to know more about any of the issues mentioned in this article. Vacant Lot Act In 1983, the Illinois General Assembly passed legislation intended to protect real estate developers from rising assessments which result from initial platting and subdividing farmland for real estate development. The Developer’s Exemption has been in the Illinois Revenue Act for 32 years and is referred to in HBAI circles as the “Vacant Lot Act.” The law prevents assessors from increasing the valuation of the property during development and sale of the lots. The property must be: 1. Platted and subdivided in accordance to the Plat Act; 2. The Plat must occur after January 1, 1978; 3. At the time of platting, the property is in excess of five acres (originally 10); 4. At the time of platting the property is vacant or used as a farm as defined by statute. Cook County is exempt from the provisions of this benefit. The legislature’s exclusive focus in enacting this section was to encourage developers to develop land that had previously been used as farmland or had been vacant. Stated another way, the particular evil that this law was intended to remedy was the imposition of a higher tax upon real estate developers before they had the opportunity to reap the benefits of their investments. When passed in the Illinois House, then State Rep. Dennis Hastert declared the broader goal of the bill: “This, indeed, does deal with the economic recovery where builders are starting to plat land or bring land into…and start to build houses and get the economy going.” The Vacant Lot Act can be found in the Illinois Revenue Statute, Chapter 35, ILCS 200/10-25. The Model Home Act In 1985, HBAI advocated for a new section to the Illinois Revenue Act that would change the manner in which assessors value single family homes which are used as model homes. The Model Home Act allows single family homes, condominiums, and town homes which are used for display or demonstration model homes, if properly eligible and qualified, to be assessed for real estate taxation purposes at the fair market value of the land upon which they are built prior to the construction of the home.

In order to be eligible for the benefits of this law the dwelling unit must: 1. Not be occupied as a dwelling unit; and 2. Be used as a display or demonstration unit model home for prospective buyers of either that dwelling or of similar homes built on other tracts or lots. The Model Home Act battles the same evil that the Vacant Lot Act addresses: imposing taxation prior to reaping any benefits. The difference between the two is this: the Vacant Lot Act happens automatically; the Model Home Act requires a verified application prior to receiving the benefit. HBAI has improved this law over the years: • Use of furnishings, appliances, offices and office equipment used for sales activities shall not affect the tax level of the model home (1993); • Townhomes & Condominiums were expressly added in 1994; • We extended the deadline for filing an application for special assessment to April 30 in Cook County and December 31 in all other counties (1999). There is a limit of 3 homes in a 3 mile radius, but no limit to how many radiuses may be used, as long as they are incongruent, (Chapter 35 ILCS 200/10-25).

Bill Ward is Executive Vice President & Director of GovernmentalAffairs for the Home Builders Association of Illinois. He is the chief administrative operating officer of the association and is also in charge of all state legislative activities conducted by HBAI. Bill’s tenure with the HBAI began in 1989 as Director of Governmental Affairs. Prior to coming to the HBAI, he was Issues Development Specialist for Illinois House Speaker Michael J. Madigan, focusing on local government, transportation, agriculture, and rural healthcare. He also worked on several state and federal political campaigns from 1980 to 1988. Bill holds a Bachelor of Arts in Speech Communications from Southern Illinois University.


GOVERNMENT AFFAIRS

Complaint Filed by Much Shelist Declares Ordinance Requirements Unconstitutional Just weeks prior to the effective date of a recently amended affordable housing ordinance, the Homebuilders Association of Greater Chicago commenced litigation to have the revised law declared unconstitutional. On August 27, 2015 Chicago-based law firm Much Shelist filed a complaint in the Circuit Court of Cook County on behalf of the plaintiffs, the Home Builders Association of Greater Chicago (HBAGC) and Hoyne Development, LLC. While the local development community is a strong proponent of affordable housing, the complaint asserts that the requirements of the City of Chicago’s Affordable Requirements Ordinance (ARO Ordinance) are unconstitutional. “Chicago needs more affordable housing, and residential developers are ready to help build it. The issue at hand here is that the City is in direct violation of the constitution,” said Steven P. Blonder, lead counsel for the plaintiffs and a principal at Much Shelist. “The Fifth Amendment prohibits the taking of private property for public use without just compensation. The ARO Ordinance’s requirements are doing just that.” In 2003, the City of Chicago passed the ARO Ordinance mandating affordable units in private market developments. The residential development community says the fee and unit requirements of the ordinance have a disproportionate impact on small- and medium-sized builders resulting in the unintended consequence of making it difficult or impossible to finance new housing projects. The ARO Ordinance requires residential developments with 10 or more units that receive City financial assistance or involve City-owned land to provide 10 percent of their units at affordable prices or pay a fee of $100,000 per unit. For developers, this ordinance also applies if a zoning change is granted that increases project density or allows residential use not previously allowed, or the development is a “planned development” within the downtown area. In 2012, Hoyne Development acquired two commercial properties in

36 SUMMER 2015 | HBAGC.COM

Chicago, with plans to build three new residential projects. When Hoyne Development applied for a zoning change, none of the projects contained 10 units. Accordingly, at the time Hoyne Development developed its projects and applied for zoning, it did not believe any of the residential projects triggered the ARO Ordinance, nor did the City inform Hoyne Development that the ARO Ordinance would apply because its zoning change request was granted. Then, in April 2013, the City determined for the first time that the three properties were considered one, 14-unit project. The City placed a hold on all building permits until Hoyne Development either set aside two units or paid a fee of $200,000. As this was the first time that Hoyne Development learned the City considered the projects subject to the ARO Ordinance, Hoyne Development objected. The company countered that even if the developments were treated as one, 14-unit property, the City’s request to provide two affordable units exceeded the 10 percent stipulation required by the ARO Ordinance. However, the City asserted “Department Policy,” which allowed “rounding up” to two units. “The City of Chicago needs to work with, not against, the real estate development community if it wants to create much needed affordable housing,” said Paul Colgan, government affairs consultant to HBAGC. “We have said consistently throughout this process that this ordinance, as written, will not produce the affordable housing that Chicago needs and that we – the builders – are ready to provide. There are better ways to create quality affordable housing options without violating the Constitution.” On October 13, 2015, the City’s updated ARO Ordinance will come into effect, exacerbating the issue by largely increasing the fees required of residential developers. For more information contact paul colgan - pscolgan@gmail.com


BUSINESS TIPS

AN EMPLOYMENT AGREEMENT WITH A RESTRICTIVE COVENANT CAN PREVENT AN EMPLOYEE FROM COMPETING AND POSSIBLY DESTROYING YOUR COMPANY

This article discusses the importance and factors to consider when an employer has an employee enter into a contract restricting the employee from working for a competitor or starting its own business. With a slight uptick in the economy, employers may be looking to add or replace employees. Simultaneously, employees may be looking for new employers or starting their own companies based upon the knowledge they obtained from their employer. In Illinois, unless the employee has a contract or union agreement with the employer, all employees are at-will, who can be terminated at any time without any restrictions preventing the employee from working for a competitor. Consideration: As for consideration, the law is that if the employee signs a non-compete agreement, at the beginning of employment or as a condition of keeping the current employment, then the non-compete agreement would be valid, only if there was a substantial employment thereafter. Substantial employment is a fact-based decision depending upon the number of years that were previously worked and then time worked after the non-compete agreement is signed. For example, 7 months may be considered to short and the agreement will not be enforced, but 2 years is a sufficient amount of time.

In considering the employer’s legitimate business interest, the Court would consider the following: • Employer’s near-permanent customer relationships (the length of time of the relationship/difficulty in finding and obtaining customers, type and duration of contact with the customer); • the employee’s access and knowledge of confidential information obtained by the employer; and • the length of time and area of the restrictions (2 years is the most prohibitive, while generally, 1 year is accepted in most industries). However, these factors are not limited, and there is no one factor that is determinative. Other factors include the hardships of both the employer and employee can be considered. For example, a factor that would be in the employee’s favor is if the employee is prohibited from working in the same industry, even in a noncompetitive capacity, when no interest of the employer would be harmed. Without a restrictive covenant, generally, the employee can plan, form and equip a competing corporation, while still employed with their employer. However, the employee cannot actually begin competition. Once the employee has left the employer, then the employee or the employee’s corporation can compete with the former employers and solicit former customers. The law applies different restrictions to corporate officers.

Validity Of Agreement Itself : Whether the non-compete agreement is valid is a fact specific case and considered, in light of the following factors: (1) must be narrowly tailored to protect the employer’s legitimate business interest; 2) does not prevent the employee from obtaining gainful employment in a reasonable geographical area; and 3) does not harm the public by eliminating competition.

Therefore, depending upon your business needs, a restrictive covenant in an employment agreement may prevent an aggrieved or over-ambitious employee from ruining your business. For more information, please contact Corey B. Stern at Chitkowski Law Offices at 630-824- 4808 or at cbs@chitkowskilaw.com, www.chitkowskilaw.com.


SALES & MARKETING

HOW SOCIAL MEDIA IS GUIDING HOME SALES BY ADRIANA ESPINOSA, BDX

“FACEBOOK IS DEMONSTRATING TO BE THE LEADER IN SOCIAL MEDIA FOR PROSPECTIVE HOMEBUYERS EAGER TO GAIN MORE INFORMATION ON AVAILABLE HOMES” show that social media is bridging the gap between consumers and online/in-store purchases. A recent report by Deloitte shows that 29 percent of shoppers are more likely to make a purchase when using social media before or during their visit. Additionally, those who consider themselves as “somewhat or very influenced by social media are six times more likely to spend significantly more than non-users.” Deloitte further measured the differential effects of social media’s influence on various age groups. The results show social media’s ability to stimulate 47 percent of millennials to make a purchase; this is a stark contrast to the 19 percent of other generations. As social media becomes ubiquitous in American culture, it is blurring the lines for how customers and businesses engage with each other. Whether it be Facebook, Twitter, Instagram, or LinkedIn, customers can now follow the latest news of their favorite brands digitally 24/7. This continuous interaction allows any business to advertise and speak to their followers in a personalized manner via social media, which has proven to positively influence purchase behavior when thoughtfully managed. RISING USAGE Due to the increased accessibility of digital channels, the reach of social media is growing at an astounding rate as recent numbers project over a quarter of the global population – 74% of all internet users user social networking sites – will be actively using social media in 2015. Facebook alone had 968 million daily average users in June 2015 and 844 million of those used mobile devices! Where does the Unites States fit in this worldwide usage? The United States comes in fifth place with 58 percent of its population using social media. The numbers are hard to ignore, and now many companies are using social media to enhance the visibility of their brand. INFLUENCE ON PURCHASING BEHAVIOR The pervasiveness of social media has been meticulously analyzed as a growing number of data

38 SUMMER 2015 | HBAGC.COM

Supplementary reports indicate that Facebook is the most persuasive network in influencing consumer decisions with 38 percent of Facebook users reporting to purchasing an item after they shared and/or favorited it on Facebook. IMPACT ON HOME SALES How does social media translate into home purchases? Social media is a powerful tool for sharing listings with family and realtors as well as networking to learn about different neighborhoods in unfamiliar areas. Over 75 percent of homebuyers have reported using social media during their home search and purchase – an increase from fifty-two percent in 2011. Facebook is demonstrating to be the leader in social media for prospective homebuyers eager to gain more information on available homes. From 2013 to 2014, 18 percent fewer homebuyers searched for agents through Google and used Facebook instead. As of 2011, realtor.com® partnered with Facebook Connect allowing users to access realtor.com® via their Facebook login. This seamless access of multi-channel platforms further emphasizes the importance of leveraging social media to increase traffic and visibility. THOUGHTS FROM PROSPECTIVE HOME BUYERS In an effort to better understand the industry significance of social media on the home buying

process, BDX used its research panel, New Home Shopper Insights, to gain an in depth perspective of how homebuyers are using social media in their search. BDX’s recent survey on social media supports existing stats that Facebook is the most heavily used site with over 50 percent of the panel reporting to using Facebook at some point during the home buying process. Further insights show that millennials are 15 percent more likely to use social media to find inspiration for their new home and 13 percent more likely to share their home ideas on a social media network than any other age group. New Home Shopper panelist, Candace, from Texas expresses her enthusiasm for social media: “Lately, I have been checking out social media sites for recommendations on realtors, neighborhoods and school districts…I mainly use Facebook because I can (talk to) potential realtors, browse builder sites, and chat with other homeowners/homebuyers that I know. I like the fact that on social media sites, realtors are quicker with their responses, and I can stay abreast on new developments/neighborhoods that my favorite builders are planning or working.” CALL TO ACTION The digital influence of social media is augmenting the ways consumers shop in dramatic ways. As reported by Deloitte, it is a matter of time when “100 percent of shoppers will be connected 100 percent of the time.” Purchasing a home is one of the biggest investments one will make. Homebuyers want a seamless, personalized experience every step of the way. In order to maintain the attention of homebuyers, it is vital for builders to embrace social media and tailor a strategy that not only informs, but builds a relationship with their customers. Ready to learn more about BDX’s social media solutions or conducting research through the New Home Shopper Insights panel? Contact Amy Alexander at AAlexander@theBDX.com.


MARKET NEWS

First-Time Home Buyers Ready to Move the Market, New Survey Finds In the past many first-time home buyers may have shielded away from entering the market due to debt and stagnant wages, new research released by TD Bank, America’s Most Convenient Bank®, indicates that nearly one-in-five potential first-time home buyers are actively looking to buy and nearly two-thirds would like to provide a sizable down payment of 20 percent or more. The bank polled more than 1,000 Americans looking to purchase their first home within the next five years. The TD Bank First-Time Home Buyer Pulse also revealed that 62 percent of potential first-time home buyers think they will purchase a home within the next two years. Among millennial survey respondents, this number rises to 67 percent. “It’s encouraging to see interest from the first-time home buyers, who have been cautious for much of the housing recovery,” said Scott Haymore, Head of Pricing and Secondary Markets, TD Bank. “Consumers are gaining confidence in the economy and many are looking to enter the housing market within the next two years.” What First-Time Home Buyers Look for in a Home · More than two-thirds of consumers (68 percent) looking to purchase their first home are interested in move-in ready homes while one-third would like to buy a fixerupper. · Forty-three percent of consumers are looking to purchase their first home in a suburban area outside of a city compared to 20 percent that want a home in a big city or metro area. · When it comes to amenities, respondents are most interested in their first home having a backyard or pool and an attractive design, followed by energy efficient / smart homes technologies. First-Time Home Buyer Financing Plans · The top four financing options first-time buyers consider include cash savings, 30year mortgage, and an affordability program and government loan. · Sixty-two percent of respondents would like to provide a sizable down payment of 20 percent or more. · Millennials are more likely to purchase their first home with a partner or spouse (70 percent) compared to potential first-time home buyers of other generations 49 percent · Potential first-time home buyers value mortgage rates the most when looking for a home. “First-time home buyers are keeping their options open in terms of how they plan to purchase their first home,” said Haymore. “The right lender will help first-time buyers understand what they can afford and share information on the different loan options available.” Barriers to Homeownership · When asked what is preventing them from purchasing their first home, respondents most often cited needing to save money for a down payment (64 percent) and needing to pay down debt (45 percent). · For millennials, the entry to homeownership is even tougher: 70 percent of millennial respondents said they need to save for a down payment and 52 percent said they need to pay down debt. · More than one-in-five consumers (22 percent) looking to purchase their first home noted that they can’t find a home in their price range. “Buyers today may find it difficult to save for a large down payment, especially young adults who are saddled with substantial student loan debt,” said Haymore. “The great news is, today many lenders are offering home affordability and down payment assistance programs so it’s important to shop around for a mortgage and learn more about the options available.”

TAKING THE

FIRST-TIME HOME BUYER PULSE

Discover what the first-time home buyer looks like over the next 5 years HOME FOR SALE

WHO ARE THEY?

20%

46%

46%

of Consumers are actively looking to buy their first home

of Millennials will be looking to buy their first home in the next 1-2 years

of Hispanics are actively looking & planning to buy their first home in the next 1-2 years

WHAT KIND OF HOUSE DO THEY WANT? TOP 3 AMENITIES INCLUDE:

68%

are looking for move-in ready homes

43%

are looking to buy in a suburban area outside of a city

Backyard or pool

Attractive Design

Energy Efficient & Smart Technologies

HOW DO THEY PLAN TO BUY THEIR FIRST HOME?

62%

56%

anticipate putting down 20% or more

will buy their first house with their spouse/partner

Millennials are keeping their options open in terms of how they plan to purchase their first home

TOP 4 OPTIONS INCLUDE:

1

CASH SAVINGS

2

30-YEAR MORTGAGE

3

AFFORDABILITY PROGRAM

4

15-YEAR MORTGAGE

WHY ARE THEY WAITING? TOP 3 ROADBLOCKS PREVENTING BUYERS FROM BUYING THEIR FIRST HOME: Need to save money for a down payment

Need to pay down debt

When ready to purchase a home, buyers indicate that mortgage rates are the most valuable asset compared to a realtor or insurance cost

Can’t find a home in my price range


MARKET NEWS

The Ever-Changing World of Real Estate The nature of the real estate market is changing very quickly. According to the official CREÂŽ 2015-16 Top Ten Issues Affecting Real Estate, an annual list which was released by The Counselors of Real EstateÂŽ, many different factors are contributing to the change. Some of them are more important than others. Some of those factors are financial. In particular, interest rates are expected to rise from their recent lows in the near future, which will devalue existing assets and could reduce the sales of homes. Foreign capital is also coming into the real estate market of the United States, most of it from nations that have relatively few stable assets that meet the needs of their own investors. Additionally, the decreasing cost of energy has caused increased unemployment within the American oil industry, which has significantly impacted the real estate market in many local economies that depend on oil production. Finally, increasing income inequality is leading to greater diversity in real estate that can meet the needs of people wide highly diverse financial situations. Some of the other contributing factors are political. American dollars are currently a very stable currency, but many foreign currencies are undergoing devaluation. That makes it very tempting for people to invest in American assets, which helps to boost the real estate market in the United States. However, a great deal of that investment is coming from politically unstable nations, which means that the situation can change very quickly and with very little warning.

by Chantel Beauregard, Brandit 360

Changing demographics are also contributing to change in the real estate market. The Baby Boomers are reaching the age of retirement and looking for homes where they can live for the rest of their lives, while the Millenials are just starting to look for their first houses and apartments. These two groups have very different needs and are rapidly changing the amenities found in new homes. Many of these people, particularly the Millenials, are flocking to cities that offer opportunities to live without cars and can provide a wide variety of entertainment options. This increase in urbanization is likely to cause vast changes in the urban real estate market. Technology is also causing rapid changes in the real estate market. A significant portion of the United State’s infrastructure is old and outdated, which is causing significant difficulties for new development projects. Many municipalities cannot afford to update their infrastructure, but significant development opportunities will appear when the funds become available. New technologies are also changing the ways that people look for new homes and the ways that real estate agents do business, particularly in ways that increase opportunities for small investors. Finally, the retail sector is also undergoing rapid changes due to technology, and changes to the retail sector are expected to have a large impact on the closely-related real estate sector.

www.inlandhomemortgage.com Extended Locks up to 270 days!!! Construction Loans Available!

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MARKET NEWS MONTHLY

TechTime

COLDWELL BANKER RESIDENTIAL BROKERAGE JOURNAL OF

Dick’s News & Views INFORMATION

TECHNOLOGY

Dick Greenwood Builder-Broker-Explorer Director, Builder Marketing

September 21, 2015

Coldwell Banker Residential Brokerage Three Parkway North, Suite 400 Deerfield, IL 60015

Newsletter Spotlight

630-605-5808 Dick.Greenwood@cbexchange.com

Chicago’s recovery parallels other cities in one striking way according to Yun. It’s party time at the high end…. there is a run of top priced sales.

Interesting Real Estate Facts 

21% of millennials still live at home—Urban Land Institute



16% is the amount of income spent on mortgages by middle income earners—Zillow



Nationally, it is still 35% cheaper to buy than rent—Trulia



5.2 million renters hope to buy a house in the next year—Zillow



70% of millennials wo aren’t homeowners expect to buy a home by 2020—Urban Land Institute



9 out of 10 millennials expect to meet or exceed their parents’ wealth—Urban Land Institute



Freddie Mac reports that improving household balance sheets will make it more enticing for Americans to take on mortgage debt in 2015.



11.3 is the number of times the average American moves in his or her life—U.S. Census Bureau



35.7 million is the number of Americans (about 1 in 9) who moved between 2013 and 2014.—U.S. Census Bureau

 Fact: 70% of home sellers hire the first agent they interview—NAR 2014 Study  The sale of The Willis Tower generated $11.4 million to state and local governments in real estate transfer taxes.  Because of the rising residential and commercial real estate values, Chicago brought in transfer taxes in the amount of $156.9 million for 2014. That is up from $141.9 million in 2013. 2015 will exceed 2014.  Lawrence Yun, chief economist for the National Association of Realtors spoke to our Mainstreet Organization of Realtors at the end of June. He said our recovery is a little behind the rest of the

Buy Now. Buy New.

nation because of the dire financial condition in Chicago and Illinois. His feeling is that “anything that disrupts business confidence or job formation will eventually hit the housing market.” Yun said the bright side for Chicagoland is “there’s a better chance for a renter to become a homeowner in Chicago because prices in other cities are rising so fast that affordability is becoming an issue.”

Questions? Comments? Email me at dick.greenwood@cbexchange.com or 847–313-6522. If you do not wish to receive any further e-mail communications from us, you may contact us at Laurie.kirchen@cbexchange.com to have your name removed from our Distribution List. OR was this forwarded from a friend….Email us at Laurie.Kirchen@cbexchange.com to get on our distribution list!


2015 BOARD MEMBERS

PRESIDENT PAT COVENY ARCH CONSTRUCTION

VP DICK GREENWOOD COLDWELL BANKER

2ND VP JOHN SORENSON US SHELTER

ASSOCIATE VP FRANK BINETTI INLAND BANK

SECRETARY COREY STERN CHITKOWSKI LAW OFFICES

TREASURER REGIS VERLIEDFE WARM UP

2013 PAST PRESIDENT MARTY PARIS SEDGEWICK PROPERTIES

2012 PAST PRESIDENT JOHN WOZNIAK J LAWRENCE HOMES

JOHN KERN PREMIER ARCHITECTURE

JOHN LEE FIRST AMERICAN BANK

MICHAEL MENN MICHAEL MENN LTD

JUDITH L. NELSON NELSON CONSULTING LIFE MEMBER

EMILY JOHNSON TAYLOR JOHNSON

PAUL LINK LASALLE STREET DEVELOPMENT

DAVID BRADY OAK DESIGN AND CONSTRUCTION

SCOTT WALBRIDGE ALEXANDER LUMBER

SCOTT SEVON MAW CHICAGO

JANICE SEVON MAW CHICAGO

MIKE NAGEL MAW CHICAGO

TOM DRAKE THE DRAKE GROUP

ROBERT COWHEY COWHEY MANHARD CONSULTING LIFE DIRECTOR

RALPH KRISTENSON LIFE DIRECTOR

RITA UNZNER EXECUTIVE OFFICER

JERRY CONRAD JC CONTRACTING

MATT JANS MATT JANS ARCHITECTURE

COUNCILS & COMMITEES KEY AWARDS JOHN KERN DICK GREENWOOD PAT COVENY MATT JANS JUDITH NELSON

42 SUMMER 2015 | HBAGC.COM

ARO PAUL COLGAN ALAN LEV REMODELERS PRESIDENT - SCOTT WALBRIDGE

PWB PRESIDENT - JAN SEVON PROGRAMS/EVENTS REGIONAL CHAIR - DICK GREENWOOD


2015 CITY CHAPTER BOARD

2015 CITY CHAPTER PRESIDENT MARTY PARIS SEDGWICK PROPERTIES

PAUL LINK LASALLE STREET DEVELOPMENT

KEITH ESSES PRIORITY CONSTRUCTION MANAGEMENT

EMILY JOHNSON TAYLOR JOHNSON

KERRI STADLER CIRCA LIGHTING

JEROME WADE WADE ENTERPRISES

BOB DICKINSON GREATER II TITLE

JEFF GOULETTE SULLIVAN GOULETTE

ALAN LEV BELGRAVIA GROUP, LTD

ED HOFFMAN CASTLEWOOD HOMES

Don’t Fall Behind

Marketing and Advertising Has No Season 224-633-9597 Brandit360.com


EVENT CALENDAR SEPT 2 - KEY AWARDS JUDGES ORIENTATION SEPT 8 - MEET THE COMMISSIONER SEPT 16 - FRIEDMAN DESIGN @ PIRCH SEPT 17 - HBA IL GOLF OUTING OCT 21 - CITY CHAPTER ECONOMIC FORECAST NOV 13 - KEY AWARDS BANQUET DEC 10 - HOLIDAY PARTY DID YOU KNOW YOU CAN SUBMIT EVENTS ON THE MEMBER EVENT CALENDAR? IF YOUR OFFICE IS HAVING AN EVENT AND YOU WOULD LIKE OTHER MEMBERS TO ATTEND, SUBMIT YOUR EVENT ON HBAGC.COM

44 SUMMER 2015 | HBAGC.COM


INDEX OF ADVERTISERS • • • • • • • • • • • • • • •

WINTRUST MORTGAGE - PAGE 2 INSIDE FRONT COVER EHLS PAGE - 3 RPFPC - PAGE 4 BUILD DIRECT PAGE 10 NEW AMERICAN HOMES - NEWPORT COVE - PAGE 18 US SHELTER - PAGE 20 PLANTE MORAN - PAGE 21 VETERAN UNIVERSITY - PAGE 21 FOX VALLEY MEDIA ARTS - PAGE 25 PRO-TECT - PAGE 25 DR HORTON - EMERALD HOMES - PAGE 28 MARVIN WINDOWS - PAGE 29 LWI SUPPLY - PAGE 33 INLAND BANK PAGE 40 JANE LEVY CUSTOM HOMES - PAGE 48 BACK COVER

NEW MEMBER CENTER FEATURES Basic Listing - Free Every member receives a Basic Listing. This means that visitors to the directory can easily search for members by category, keywords and alphabetical listings. Each member has a personalized information page that lists key information, other contact details, website and directions. Members are encouraged to log in and update their information, which automatically updates the association’s database and online listing at the same time. Enhanced Listing - $25 annually This is a great opportunity for members. Every Enhanced Listing provides increased exposure for members. Enhanced Listing sponsors receive: 1. Logo placement 2. Increased space for descriptions 3. Additional keywords 4. Bullet points to draw the visitors’ attention 5. Up to 8 photos and 1 YouTube video 6. Priority placement above Basic Listings Banner Advertising - $200 per quarter Beyond the Enhanced Listing is banner advertising. Banners capture attention and drive direct response. Banner ads will simply appear in rotation on the Member Center pages. Banners appear on event calendar, directory pages and individual categories. Banner ads link to the member’s page or any other designated URL, such as your own website. Ad effectiveness stats are tracked for you and come in handy when ads are up for renewal. Banner advertisers receive top-priority placement as their category sponsor and company are highlighted. Login at HBAGC.com to gain access to all of these features, update your information and more. Don’t know your login? Email info@HBAGC.com for a login link.

The MemberPlus App - Free HBAGC.com users now have a FREE mobile application that allows members to: • • • • • • •

Receive push notifications from HBAGC Access your Member Information Center View member listings Update your own profile information Register, pay and check in for events Interact with other members Post & view jobs, hot deals and member-to-member specials

Download the iOS app » Download the Android app »


MEMBER MARKETPLACE

MACH 1, INC. REAL ESTATE ANALYSIS PROJECT DEVELOPMENT MUNICIPAL COORDINATION  

Andrew Venamore    

602 Academy  Drive   Northbrook,  IL  60062    

Cell:     Office:     Fax:     Email:    

224/619-­‐4539 224/326-­‐2698   224/326-­‐2483   andrew@venamore.net  

J A N S ••• B O B A K

MATTHIAS JANS ARCHITECT MATTHIAS A. JANS, JR.

F R O M O N E R E A L E S TAT E FA M I LY T O A N O T H E R - C O N G R AT U L AT I O N S O N 75 YEARS OF BUILDING CHICAGO!

Valerie Campbell

602 ACADEMY DRIVE NORTHBROOK, IL 60062

Broker

847-917-3482

MJANS@matthiasjans.com (847) 344-5297

valerie.campbell@bairdwarner.com Baird & Warner Barrington | 754 West Northwest Highway | 847.381.1855

Complete planning, design and construction for your home.

www.oak-design.com 708.383.2244

Design & Construction Kitchens

46 SUMMER 2015 | HBAGC.COM

324 Lake Street, Oak Park, Illinois 60302-2604 remodel@oak-design.com Bathrooms

Additions

Millwork


Thomas Drake tdrake@drakegrp.com www.drakegrp.com

1967 Johns Drive Glenview, IL 60025 O 847-729-7700 M 773-406-5799


A passion for building . . . A reputation for excellence.

DESIGN - BUILD | CUSTOM HOMES | RESTORATION BY APPOINTMENT

1349 Thatcher Avenue, River Forest, Illinois 60305 Phone: 708.771.8474 | Fax: 708.771.4060 levycustomhomes.com WWW.HBAGC.COM

HBAGC Greater Chicago Building News | Celebrating 75 Years SUMMER 2015  

Greater Chicago Building News is the official magazine of the Home Builders Association of Greater Chicago. Published by Brandit360

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