Economic Success: Find the Niche

When you are in our business you have an interest in the many ways regional commercial centers attract customers.

Nearly one hundred years in the making, The Magnificent Mile® has four signature components that attract millions of people annually: a gloriously designed historic boulevard, world-class old and new architecture, spectacular trees and gardens, and a strong, diverse cluster of businesses that create synergies between retail, dining, and hospitality experiences. These assets, all promoted by GNMAA, make North Michigan Avenue the visitor capital of the Midwest and one of only about a dozen or so venues around the world with similar experiential attributes.

But what if you are working to build a regional economy without these assets? Some communities with dilapidated older buildings have successfully restored them and attracted visitors to a quaint setting of shops selling antiques, crafts, unique home furnishings, and apparel. Others have capitalized on a natural setting like a lake or forest. Still others develop man-made assets like a horse racing park, car racing track, water park, unique museum, or casino. These are all economic engines that create jobs, profits, and tax revenue for the town.

One phenomena that is sweeping the area is the car show or “cruise night.” Local businessmen have discovered that most people with an interest in cars also like to dine out, stay overnight in unusual settings, and shop. And their cars attract huge crowds that like to do the same. Over one hundred communities across northeast Illinois host some sort of show for hot rods, classics, antique cars, and other special interest vehicles. While these events take a lot of work to manage properly, towns can get the word out that Main Street will be closed for a car show and hundreds of restored, unrestored, new, and old special interest cars just seem to appear.

GNMAA member Eli’s Cheesecake featured cars on September 21 at the bakery, 6701 W. Forest Preserve Drive, and, like last year, there was a huge crowd. Merchants on Oak Street formerly hosted the best classic Ferrari show in the Midwest.

I recently witnessed a terrific event in Geneva, Illinois, perhaps the best old car show in the region. As you may know, this little community on the Fox River about 40 miles west of Chicago fits the description of an “antique town” with many beautifully restored storefronts and homes. The town closed streets and hosted the Classic Car Club of America’s Concourse d’Elegance. Many classic cars worth millions of dollars appeared, each unique in its design, restoration, and history. Of course car owners and their wives (mostly wives) and the crowd attracted by their cars were making it almost impossible to navigate through every restaurant and store in town. Not bad business for an otherwise lazy summer afternoon!

Although I am a car fan and had a special interest in the vehicles that were in Geneva last weekend, I will showcase only one: a unique Rolls Royce. This car was restored and owned by a collector in New Orleans who took a great deal of pride in its 1934 styling and the craftsmanship of the Hooper Body Company, coachbuilder to the Queen. Unfortunately, the car was caught by Hurricane Katrina, which demolished its garage and sent it tumbling through the floodwaters, to be recovered after the storm nearly a mile from where it was stored.

People came from all around to see this car and the many others and, oh by the way, to enjoy Geneva’s fine dining, shopping, and hospitality.

Al Gore

How has Al Gore affected tourism on Michigan Avenue?

I met Al Gore about 15 years ago while he was vice president and his campaign to curb global climate change was just getting revved up. He had not yet differentiated himself from the hundreds, maybe thousands, of other politicians promoting a more sustainable environment. But the others, for the most part, were unwilling to take a risk and step out ahead of the voters who had put them in office.

It is true that the environmental ethic, already 30 years old during the early 1990s, was strong. Almost all governmental officials took credit for what they were doing to clean up the land, air, and water, but voters still came first. At the end of the day, those representing coal producing regions of the country worked to kill clean air legislation, those from auto producing regions worked to defeat fuel efficiency standards, those from industrial regions worked to kill clean water standards, and so on.

Al Gore, however, was sent to Washington by a coal producing state where communities were hard pressed to comply with stricter environmental laws. Yet he promoted the need to reduce “greenhouse gas” emissions where coal is a cause of the problem. This strident posture earned him the respect of the country, an Academy Award, and a Nobel Prize.

But the tide has turned, and more and more opinion leaders are supporting stronger environmental stewardship, In fact, governmental officials are voted out at every election for not being “green” enough. What a sea change!

The public’s appetite for green hospitality is getting stronger. Differentiating a business by demonstrating a commitment to a sustainable natural environment has become a source of profits on Michigan Avenue. We see fewer and fewer incandescent bulbs being used by our retailers, restaurants, and hotels as they are replaced by more energy efficient LEDs and compact fluorescents. Most of our hotels encourage guests to save water by reusing towels and linens. The Talbott Hotel is 100% wind powered, the first of its kind in Chicago, and the InterContinental Hotel recently won an award for environmental initiatives it has taken, just to name two specific examples.

This spring visitors to our area will experience Tulip Days on The Magnificent Mile® Presented by Bank of America. They will see innovative kinetic art in the gardens, wind powered mechanisms created by 17 of Chicago’s premier architectural firms through a program coordinated by GNMAA. All of the materials used in creating these devices are reusable, recyclable, or biodegradable. Not only is the art attracting customers to our member businesses, but it is raising awareness in sustainability.

So I have a strong respect for Al Gore and the movement he propelled, one that we can anticipate getting stronger and becoming more embedded on Michigan Avenue.

Ivanka Trump Visits The Magnificent Mile

I am happy to report that Ivanka Trump’s appearance with GNMAA members and guests at our March 20, 2008, Quarterly Membership Luncheon was a terrific success. A record 455 people attended the event to hear John Carroll, publisher of Modern Luxury’s family of fashion magazines, interview Ms. Trump on stage.

Ms. Trump was very easy to host. First, her staff appeared interested in what GNMAA wanted to get out of her appearance, not how this could help The Trump Organization. Arrangements were made easily and she was confirmed for the appearance. She arrived at the Drake Hotel on time and was very patient about being introduced to everyone who happened to be standing at the entrance of the hotel. This included John Quinn, Senior Vice President, Chase, who was on his cell phone and I suspect a little surprised to see the fellow New Yorker get out of her car.

Ms. Trump did an excellent job of meeting as many people as she could at the VIP Reception. These were mostly people who have contributed to the fund for planting flowers in the median planters on Michigan Avenue, members of GNMAA’s Cornerstone Council, and those on the GNMAA Administration Committee.

She took her seat at the luncheon next to Alderman Brendan Reilly and kept us entertained with “Trump stories.” I thought about asking her about Rossano Rubicondi, the Italian actor who is roughly Ms. Trump’s age and will be marrying her mother Ivana on April 12, but better judgment prevailed. The conversation around the table was very enjoyable.

Once she and John Carroll took to the stage, Ms. Trump clearly demonstrated her enthusiasm for the real estate business and, more specifically, the Trump project in Chicago. All of those in leadership at GNMAA appreciate her willingness to be at the event and support our organization.

Ivanka Trump

We are all looking forward to the GNMAA Quarterly Membership Luncheon on March 20^th at the Drake when Ivanka Trump will be our quest speaker.

The Trump brand is one of the most recognized in the world and Ms. Trump, who is currently working on 33 projects, is a key leader in the organization. With successful interests in such diverse environments as Las Vegas, Honolulu, Atlanta, Baja (Mexico), Toronto, Dubai, and many others, it is clear that The Trump Organization has top research capabilities and an expertise in identifying high-potential locations for investment. I am looking forward to hearing Ms. Trump discuss what variables led her company to choose Chicago for a significant project. Despite others who are jumpy about the soft residential real estate market and fear that the Chicago hotel inventory is becoming overbuilt, her company must be very optimistic. While we appreciate the region’s resilience and are excited about the future, what are the specific characteristics of The Magnificent Mile that independent analysts found that point toward a long term robust return on investments as large as the Trump International Hotel & Tower? Get ready for a provocative presentation!

Earth Hour

The picture below is Sydney, Australia before and during Earth Hour during in March, 2007

Chicago will participate in Earth Hour, one hour when residents and businesses will be asked to turn out their lights in symbolic recognition of the role energy consumption plays in global climate change. Other American cities participating are Atlanta, Phoenix, and San Francisco.

So make plans now for where you will be 8:00 – 9:00 p.m. on Saturday, March 29, 2008.

It will be a spectacular sight from the Signature Room at the 95^th, Restaurant 676 in the Omni Hotel, and other venues with prominent overlooks. I understand that people are already planning to be on the lawn at the Adler Planetarium to witness the South Michigan Avenue street wall go dark.

Street lighting, traffic signaling, and other safety-related illumination will not be affected. But GNMAA will coordinate the “powering down” of exterior building lighting and interior office and residential lighting in the area of The Magnificent Mile.

As one of the utilities across the country strongly promoting steps to mitigate global warming, ComEd is a sponsor of the event and is working closely with the City and organizations like GNMAA to ensure good communications.

Mayor Daley is not only promoting Earth Hour Chicago, but I understand helped convince mayors in other cities to support drawing awareness to global climate change by embracing the program.

For more information about Earth Hour, please visit the official website at http://www.earthhour.org/

For more information on the city of Chicago's participation, please visit http://www.earthmonthchicago.com/