Chicago Meeting Matters

Important Notice Regarding Legislation Enacted by Illinois General Assembly on May 27, 2010

On May 27, 2010, the Illinois General Assembly enacted historic legislation in response to customer demands for a sweeping transformation in the way business is conducted on MPEA premises.  As a result of this legislation, show management, contractors and exhibitors will realize immediate and long-term benefits, and Chicago will become an even more competitive and attractive destination for conventions, trade shows, expositions and meetings.

While this legislation is effective upon enactment, the implementation process has only just begun.  Preliminary preparations have long been underway, and the Authority will soon finalize a full-scale implementation plan in cooperation with its key partners.  Certain changes will be implemented promptly.  Other changes are wholesale modifications to the way business is conducted on our premises and thus will require a lengthier implementation period.  You may download the following document that illustrates the myriad complex tasks now required:

Download MPEA Notice to Stakeholders re Legislation

Statement from James R. Reilly, MPEA Trustee

This is a good day for Illinois, a good day for Chicago and McCormick Place, and a good day for everyone involved in the convention and trade show industry.

I want to thank the four legislative leaders for this remarkable and steadfast display of bi-partisan co-operation. I appreciate the confidence shown by House Speaker Madigan and Senate President Cullerton in asking me to advise on this effort and the steadfast support of Senate Republican Leader Christine Radagno and House Republican leader Tom Cross.

They, along with the House and Senate, stepped up to the plate to deal in a comprehensive manner with one of the biggest threats to the economy of northeastern Illinois in many decades.

I want to thank the managers of the major trade shows at McCormick Place for their guidance and unvarying support in this effort.

I want to thank the Mayor of Chicago for his support.

And I also want to thank the Governor who, while we did not agree on every point, was consistent in advocating for reform of the way business is done at McCormick Place.

To the men and women who do the actual work of installing trade shows at the center, and to the unions who represent them, I also want to express my appreciation. Some of those unions supported this legislation and some opposed it but all acted from a sincere desire to make things right and I promise a fair and even handed implementation of the provisions of the bill.

Now it is time for the hoopla to end and for all of us involved to roll up our sleeves and get to work. Eighteen months may seem like a long time but in reality it is a remarkably short time to put in place the monumental changes embodied in this groundbreaking legislation.

Here are just some of the tasks that lie ahead:

We must implement the labor changes in a fair and safe manner.

We must work with the Chicago Convention & Tourism Bureau to implement changes there.  With changes in place, the Bureau needs additional marketing dollars to properly position Chicago as the great trade show and convention town it has always been, and help boost attendance. 

We must find the right private management company to take over McCormick Place operations and decide how Navy Pier should be managed going forward.

We must work closely with the show contractors to make sure these reforms are carried out in an equitable way, and that savings are passed on to the exhibitors who are the lifeblood of the trade show.

And we must partner with the rest of the hospitality industry, from hotels to restaurants and attractions, to make sure the Chicago visitor experience is extraordinary.

Any one of these would be a major task in its own right – together they represent a great but welcome challenge.

In the coming weeks I will have more to say, but now it is time to get to work with the MPEA staff and the incoming Interim Board.  Together with our partners at the Bureau, we look forward to keeping our existing shows and bringing in new ones.  We want them all to see McCormick Place as a welcoming and competitive venue.

It is no secret that the future of conventions and tradeshows here was on the line, and with this legislation, we have a real shot at a better future. 

Historic convention reform becomes law

May 27, 2010

Dear Chicago Customer:

The Illinois General Assembly overrode Governor Quinn’s amendatory veto and wrote historic convention reform into law today, ushering in a new era of conventions in Chicago and giving unprecedented rights to you, our customers.

On behalf of the Chicago Convention & Tourism Bureau (CCTB) we cannot thank you enough for your diligent efforts throughout this long process, particularly in the last few weeks since the initial bill was introduced.  Your efforts sounded a drumbeat and emphasized the need for prompt and decisive action.

While the resulting legislation introduces sweeping reforms to transform Chicago’s convention industry, the changes won’t happen overnight.  Over the next 18 months, we will communicate with you at every step along the way to keep you informed as the reforms are put in place over time.

The CCTB is eager to begin working with leadership to implement the legislation.  In the weeks and months ahead, we will see to it that your concerns continue to be met.  This will be a very exciting time for everyone involved – and especially for you.  We want you to understand the positive changes at every turn and will continue sending updates.

Thank you again for your efforts.  We could not have reached this monumental day without you.

Warmest regards,

Tim V. Roby  
President and CEO    
Chicago Convention & Tourism Bureau  

 

Historic Legislation to Cut Costs and Keep McCormick Place Competitive Becomes Law

FOR IMMEDIATE RELEASE   
May 27, 2010 

HISTORIC LEGISLATION TO CUT COSTS AND
KEEP McCORMICK PLACE COMPETITIVE BECOMES LAW

New law will create jobs and bolster local economy

CHICAGO – Officials of the Metropolitan Pier and Exposition Authority (MPEA) and the Chicago Convention and Tourism Bureau (CCTB) today applauded the passage of a new law meant to reform labor rules, establish exhibitor rights and realign McCormick Place operations with its major competitors in the convention and trade show industry.

The legislation recently gained overwhelming approval by the Illinois General Assembly, with leadership and support provided by Governor Pat Quinn, Mayor Richard M. Daley, House Speaker Michael J. Madigan, Senate President John Cullerton, Senate Minority Leader Christine Radogno and House Minority Leader Tom Cross, as well as the MPEA Interim Board and CCTB. The new law establishes an 18-month period to develop and implement significant reforms that will result in lower costs for exhibitors.  The MPEA and CCTB remain committed to communicating these reforms to customers, as the new procedures are finalized.

 “This is a victory for our customers, our economy and the working people of Illinois,” said John Gates, Chairman of the Interim MPEA Board that pushed for swift legislative action. "This was always about protecting jobs and preserving an industry that provides $8 billion in economic impact for our State. Lawmakers have taken decisive action to keep McCormick Place, and Navy Pier, the preeminent facilities in the convention and tourism industries.”

“We said from the beginning that reform at McCormick Place would require the commitment of all stakeholders,” said Juan Ochoa, outgoing MPEA CEO. “This is a historic moment, and we all should be proud of what we achieved together. The focus has always been to protect the hundreds of thousands of jobs of hard-working men and women who are supported by the convention industry.”
 
Tim Roby, CCTB President and CEO believes this legislation will renew Chicago’s status as a premier convention and trade show destination, while helping to drive business to hotels, restaurants, retail and more.

“For many months now, we have been working diligently with our customers, Governor Quinn, Mayor Daley and the legislative leaders to bring comprehensive change to Chicago’s meetings and convention industry,” said Tim Roby, CCTB President and CEO.  “We have been aggressive in communicating to our customers the extraordinary benefits of the legislation and we will continue working with them throughout the next 18 months to ensure that they understand the positive changes at every step along the way.  This is a very exciting time for everyone involved.”

The new law calls for:

• New labor work rules that reduce crew sizes, require less overtime pay and eliminate hassles for customers.
• Expanding exhibitor rights, allowing customers to do their own work, regardless of booth size.
• The appointment of a Trustee, former MPEA CEO Jim Reilly, to oversee operations during an 18 month transition period and select a private manager for McCormick Place.
• Restructuring capital debt to allow the MPEA to further lower costs to customers and put the MPEA on sound financial footing. 
• Allowing shows to select outside electrical and food service contractors.
• Auditing contracts to ensure savings are passed on to customers.
• Make recommendations to whether Navy Pier should remain in control by the Authority or become an independent entity. 

“We listened to our customers and pushed for reforms that address their concerns. This new law introduces sweeping reforms that will transform Chicago’s meetings and convention industry,” said David Causton, General Manager of McCormick Place. “We now have very competitive market offerings that put our customers first across the board. It’s a new day in Chicago’s convention industry.”

Chicago customers are pleased with the outcome.

“This is a victory, not only for Chicago and the State of Illinois, but also for the 2,000 exhibitors who participate annually at the International Home + Housewares Show,” said Mia Rampersad, Vice President, Tradeshow for the International Housewares Association.  “The IHA has hosted our annual event in Chicago for more than 70 years and believes it is the best convention destination in the world.  This law will make McCormick Place a more cost-effective trade show venue and IHA's preferred destination for years to come.”  

The new law also provides additional public funding to assist the CCTB in marketing Chicago as a convention destination. The CCTB has served as the sales and marketing arm for the city for more than 30 years.

“Customers, businesses and Illinois taxpayers will benefit enormously from additional funding to the CCTB,” said Mike Cassidy, CCTB Chairman. “It will give us more resources to maintain and attract new business to Chicago and Illinois.”

Meetings and conventions held at McCormick Place support 66,000 jobs and generate $251 million in tax revenue each year.  Convention goers who come to Illinois spend close to $8 billion in the state.  These big benefits were a focal point throughout the months of discussion that led to the new reforms.

Continuous updates will be available for Chicago customers on the Chicago Meeting Matters website at http://meetinchicago.typepad.com/chicagomeetingmatters/.

Governor Quinn Issues Amendatory Veto to Senate Bill 28

 May 26, 2010

Dear Chicago Customer:

Today Governor Quinn issued an Amendatory Veto of Senate Bill 28 (McCormick Place Reform Bill) to address concerns he has with the bill.  The bill will be returned to the General Assembly with the Governor’s specific recommendations for change which may be accepted by a majority vote of each chamber or can be overridden by a three-fifths vote of each chamber.  Earlier this month Senate Bill 28 passed both chambers of the General Assembly with overwhelming, broad based, bi-partisan votes that exceeded the number needed to override an Amendatory Veto. 
 
The Governor’s specific recommendations are as follows:
• Requires one union for drayage, rigging and related duties (expected to result in the elimination of the Riggers Union);
• Requires one union for carpentry, decorating and related duties (expected to result in the elimination of the Decorators Union);
• Eliminates the Airport Departure Fee increase to fund Sales and Marketing efforts for McCormick Place and Rosemont (The Governor is instead urging that a greater portion of the hotel tax be given to CCTB though that request is not included in the Amendatory Veto);
• Eliminates the appointment of James Reilly to be the MPEA Trustee;
• Grants the authority to the Governor with the approval of the Senate to appoint the MPEA Trustee and provides for removal and replacement if necessary;
• Makes changes to align procurement of professional management of McCormick Place with the State’s Procurement Code.

I expect that the General Assembly will consider the Amendatory Veto today and take action one way or the other.  I will continue to update you as information becomes available.

The CCTB will continue to work tirelessly with all the stakeholders for reforms and initiatives that will make Chicago competitive in the convention industry, that provide for a good and workable business structure and will secure economic impact along with the hundreds of thousands of jobs this industry supports. 
   
Tim V. Roby   
President and CEO    
Chicago Convention & Tourism Bureau